Furnished Holiday Lettings: Taxation

James Davies Excerpts

Wednesday 1st May 2024 Westminster Hall

[Peter Aldous]

I think the hon. Lady has hit on the way forward. The solution to this problem—if indeed there is a problem—needs to be sorted out locally, in consultation with the devolved Assemblies in Scotland, Wales and Northern Ireland, and with local authorities elsewhere in the UK.

[Dr James Davies (Vale of Clwyd) (Con)]

My hon. Friend is being very generous in giving way. In April last year, the Welsh Government increased to 182 days a year the occupancy threshold that allows holiday lets to qualify for business rates. They have also allowed local authorities to increase council tax premiums to up to 300% in cases where that threshold is not met. Does my hon. Friend agree that that Welsh Government policy is destroying legitimate business among holiday let operations, and damaging the local economy?

Oral Answers to Questions

James Davies Excerpts

Tuesday 19th March 2024 Commons Chamber

[Laura Trott]

We have talked a lot today about the £400 billion of support that we put in during the pandemic and the £100 billion of support that we put in to support people during Putin’s energy price shock. The Labour party did not disagree with any of those things, and I think the hon. Lady in her heart of hearts will know that we have to pay for that—at least, I hope she does. We have had to take some difficult decisions, but because of that, the economy is turning a corner. We are able to reduce working people’s taxes, and I hope that she and her party will find it within themselves to support us in that endeavour.

[Dr James Davies (Vale of Clwyd) (Con)]

13. What fiscal steps his Department is taking to support small businesses.

[Paul Holmes (Eastleigh) (Con)]

16. What fiscal steps his Department is taking to support small businesses.

[The Exchequer Secretary to the Treasury (Gareth Davies)]

Small businesses drive our economy and we support them to thrive using levers across Government, whether that is through our small business rate relief, by increasing the VAT registration threshold, by providing reliefs such as the annual investment allowance or through various programmes offered by the British Business Bank.

[Dr James Davies]

The Welsh Government are increasing the burden on small businesses by reducing retail, hospitality and leisure business rates relief from 75% to just 40%, despite the UK Government rightly extending that relief in England in the Budget. That means that businesses in my constituency, such as the Little Cheesemonger, Now to Bed, Presents with a Difference and Tu Mundo, are all facing unsustainable business rates bills. One business has to find an extra £35,000 a year for business rates alone. What advice does the Minister have for small businesses in north Wales facing these onerous bills?

Financial Services and Markets Bill

James Davies Excerpts

2nd reading
Wednesday 7th September 2022 Commons Chamber

[Dr James Davies (Vale of Clwyd) (Con)]

My comments on this welcome Bill will focus primarily on its ability to improve access to cash and banking services. In my constituency, like many others, bank closures have become increasingly problematic. It is now seven years since the last bank shut in the city of St Asaph in the heart of my constituency, while Denbigh has also seen closures. Last year, TSB, Barclays and HSBC shut in Prestatyn, following the town’s loss of NatWest, Royal Bank of Scotland and building society branches in the preceding five years. Prestatyn High Street was left without a single bank or cash machine, despite being a busy regional shopping centre.

Cash remains important for many residents and businesses in my constituency. Following a campaign, and thanks to Cardtronics and Principality building society, three new free-to-use cash machines have now been installed in Prestatyn town centre. In addition, since June this year new legislation has brought about cashback without purchase services through various local businesses. However, banking services in the town remain lacking.

Last year, Derek French, a former executive of NatWest and the founder of the Campaign for Community Banking Services, identified the 50 communities in Britain where he believed shared banking hubs are most required. Prestatyn is one of the 22 of those communities that have already lost their last bank branch.

Earlier this year, the Royal Society for Arts, Manufactures and Commerce published a report suggesting that 10 million people would struggle in a cashless society. As incomes are squeezed, there is evidence that some people are turning back to cash to help them to budget. The Post Office reported record withdrawals in July 2022, while LINK ATM withdrawals still exceed £7 billion monthly.

[Paul Girvan (South Antrim) (DUP)]

I appreciate that the hon. Member has highlighted a number of banks and areas that are being decimated by banks removing themselves from the high street. A section of our community who are not IT literate have a major problem and are being totally disenfranchised. We need to put in place legislation to ensure that those people are not left without access to the banks that they have used all their lives.

[Dr Davies]

The hon. Gentleman is absolutely correct. I hope the Bill will go a long way to help that situation. I was coming on to say that 10% of people are planning to use cash more in the coming six months because of cost of living pressures.

The access to cash agenda owes much to Natalie Ceeney and her access to cash review. Following a landmark agreement at the start of this year, the banks and leading consumer groups formed UK Finance’s cash action group. LINK took on the role of assessing the impact of proposed bank branch closures on communities. As of 4 July, the agreement was extended to include communities where bank closures have already taken place. LINK can recommend new cash services, such as banking hubs and ATMs, according to the cash access needs in each community. New services will then be delivered by a new banking hub company set up by the banks, or, in the case of ATMs, by LINK.

This Bill puts this very welcome voluntary arrangement on a statutory footing. It confers on the Treasury a duty to prepare a cash access policy statement, which I understand is currently being drafted, and powers to “designate” banks and firms such as LINK and the Post Office to take steps in relation to that policy. Furthermore, it gives the FCA powers to take action on those designated firms.

This summer, I put forward Prestatyn for assessment by LINK for a banking hub. I am very grateful to Nick Quin, head of financial inclusion at LINK, for his visit to the town in January and for meeting me with his colleague Chris Ashton this week to discuss in detail my application on behalf of the town. A banking hub would facilitate cheque and cash deposits, and cash withdrawals, and banking staff from each of the big banks would be based in the hub on specific days to help customers with community banking issues. So this legislation is very much welcomed, and I extend my thanks to the Economic Secretary to the Treasury and, in particular, to his predecessor, my hon. Friend the Member for Salisbury (John Glen), who I know has put an awful lot of time into this agenda.

I urge the Government to consider ensuring that assessments of the needs of communities by LINK should be transparently published and that there should be a formal process of appeal. I also ask that consideration of access to banking services through the Welsh language be referenced in the cash access policy statement. Furthermore, it would be helpful to explore the scope of the community banking services that banking hubs could potentially be mandated to provide—for example, opening a new bank account, amending direct debits and standing orders, applying for a loan, arranging third-party access or commencing bereavement procedures.

It is also important to clarify whether the Bill will give the FCA the power to prevent the closure of a bank branch, ATM or cash access point of another kind where there is no suitable alternative in place, so that in future new gaps in provision do not occur. I understand that in recent times LINK has protected 3,000 free ATMs in remote and deprived areas, and funded new ATMs in more than 100 communities. I hope the Government will commit to protecting free cash withdrawals and deposits, and that that can be explored in the policy statement. An indication by the Minister of the likely publication date of the policy statement would be particularly appreciated.

Other elements of this Bill will enable credit unions to offer a greater range of products and services; strengthen the rules around financial promotions; and enable regulatory action by the Payment Systems Regulator to require the reimbursement of victims of authorised push payment scams. All of that is very much to be welcomed, but I urge the Government to ensure that the authorised push payment scam regulations cover all feasible methods of payment, both now and in the future.

I fully support the Bill, especially as it responds to significant concerns over the availability of cash and banking services. It is important that the Bill be delivered as soon as possible so that existing cash infrastructure can be protected.

Oral Answers to Questions

James Davies Excerpts

Tuesday 15th March 2022 Commons Chamber

[Henry Smith (Crawley) (Con)]

10. What assessment he has made of the progress of the kickstart Scheme.

[Dr James Davies (Vale of Clwyd) (Con)]

19. What assessment he has made of the progress of the kickstart Scheme.

[The Chief Secretary to the Treasury (Mr Simon Clarke)]

Some 130,000 young people across Great Britain have benefited from the kickstart scheme so far, including in my hon. Friends’ constituencies. That is lower than the 250,000 jobs that the scheme could have funded, but the scheme was designed at a time when unemployment was expected to peak at 12%. The reality is that, thanks to the intervention by my right hon. Friend the Chancellor, the economy has recovered better than expected and unemployment peaked at 5.2% in 2020.

--- Later in debate ---

[Mr Clarke]

My hon. Friend is right about the Government’s record on employment, just as he is right about the Labour party’s record on unemployment. To continue to boost employment, wages and living standards, he rightly references our plan for jobs, which is proving to be an enormous success. In total, the Department for Work and Pensions spend on labour market support will be more than £6 billion over the next three years.

[Dr Davies]

I recently visited the Dyserth Falls holiday park in my constituency, which is under renovation, to speak with some of the 40 members of the public who have been employed there under the kickstart scheme. Will my right hon. Friend join me in congratulating all those who have taken part in the scheme, especially those who have been given permanent jobs, and set out what ongoing support there will be for those who have completed their placements?

[Mr Clarke]

As my hon. Friend knows, I know Dyserth very well. In fact, I will be there the weekend after next. I join him in congratulating all those who have taken part in the kickstart scheme, especially those who have secured full-time jobs. Kickstart is, of course, only one part of the wider package of support for young people that is under way. The DWP’s youth offer, which runs until 2025 and is worth £60 million, includes a 13-week youth employment programme, supported youth hubs and, crucially, specialised youth employability coaches.

Access to Cash

James Davies Excerpts

Wednesday 20th October 2021 Westminster Hall

[John Lamont (Berwickshire, Roxburgh and Selkirk) (Con)]

It is a pleasure to serve with you in the Chair, Mrs Miller.

It is also a pleasure to participate in this debate this afternoon and, as others have done, I congratulate the hon. Member for Pontypridd (Alex Davies-Jones) on securing it. The debate is on a topic that comes up very frequently in conversations I have with local residents in surgeries in my constituency. In a rural area such as the Scottish Borders, the recent closures of the TSB banks in Hawick and Kelso and the planned closure of Virgin Money in Galashiels mean that for some residents their nearest physical bank branch is miles away in Edinburgh—and when I say “miles away” I mean 50 miles away, which is totally unacceptable. I can very much relate to the earlier comments by the hon. Member for Caithness, Sutherland and Easter Ross (Jamie Stone) regarding the impact of bank closures on rural communities, such as those in many parts of Scotland.

That local picture mirrors a national trend. It is estimated that there were over 13,000 bank and building society branches in 2012, but by March 2020 that figure had dropped dramatically to only 8,000.

[Dr James Davies (Vale of Clwyd) (Con)]

I congratulate the hon. Member for Pontypridd (Alex Davies-Jones) on securing this important debate. My hon. Friend the Member for Berwickshire, Roxburgh and Selkirk (John Lamont) is quite right to refer to bank branches. In my own high street in Prestatyn, over the last five years the number of ATMs has dropped from six to zero, due to the closure of bank branches. Does he agree that incentivising local businesses to host ATMs is one possible way forward?

[John Lamont]

I am grateful for that important point, with which I absolutely agree. It is important for local business that hosting cashpoints is cost effective. I am aware of a number of businesses that have tried to host cash machines, but it has turned out not to be a financially viable option for them.

Although cash use understandably decreased during the pandemic, that should not be a reason to move away from cash completely, and banks should certainly not use it as a reason to close local branches. I have seen at first hand that many local residents and businesses in my constituency use and rely on the vital services that their bank branches offer. Too often, large banking firms present evidence of reduced footfall as a justification for closure, but those figures do not reflect the fact that those vital bank branches provide services to customers week in, week out.

People often to prefer to deal with other people, face to face, and that is compounded by a lack of confidence in using online services as an alternative. Other constituents face difficulties in accessing online banking. For some local businesses, poor connectivity makes card payment machines unreliable, and residents who face connectivity problems cannot rely on the broadband service to access secure banking services. The SNP Scottish Government’s botched roll-out of the R100 scheme has simply compounded matters for many residents in local communities, but that is a longer debate for another day.

Amid the closure of local branches, I welcome that the UK Government have ensured that customers can use banking services across the network of more than 11,000 post office branches. Nevertheless, post offices do not provide the full range of services that bank branches can, including financial advice and planning, as well as privacy, which is clearly important for many residents. I totally share the concerns of my right hon. Friend the Member for Dumfriesshire, Clydesdale and Tweeddale (David Mundell) about the suitability of the post office to provide alternative services.

To conclude, I again congratulate the hon. Member for Pontypridd on bringing this important debate. I welcome the UK Government’s commitment to protecting access to cash, complemented by initiatives to tackle digital exclusion. There will always be a place for using cash, so maintaining access to the financial services that support my constituents in the Scottish Borders must be an absolute priority for the Government.

Future of Financial Services

James Davies Excerpts

Monday 9th November 2020 Commons Chamber

[Rishi Sunak]

Last year, we had the infrastructure financing review, which contemplated these specific questions. We will issue a response alongside the national infrastructure strategy, which I think will adequately address the hon. Gentleman’s questions.

[Dr James Davies (Vale of Clwyd) (Con)]

I very much welcome my right hon. Friend’s statement, particularly in terms of the issuing of green gilts. Will he confirm that the benefits of the sovereign green bond will be available alongside revenue support mechanisms to support hydrogen production and carbon capture and storage, as exemplified by the HyNet project for north-west England and north-east Wales?

[Rishi Sunak]

Without commenting on specific projects, I think my hon. Friend is right to highlight some of the areas of interest to the Government. On carbon capture and storage, he will that know we have already outlined over £800 million of investment over the next few years to help develop two carbon capture and storage clusters with the private sector. This is something the UK can be world-leading on, and it is important that we move quickly.

Stamp Duty Land Tax (Temporary Relief) Bill

James Davies Excerpts

2nd reading & 2nd reading: House of Commons
Monday 13th July 2020 Commons Chamber

[Rob Roberts (Delyn) (Con)]

It is a pleasure to follow my hon. Friend the Member for Keighley (Robbie Moore).

As we continue to move forward out of lockdown, it is important that we support and revitalise the housing market, helping those getting on or moving up the property ladder, as well as protecting jobs within the sector and the supply chain. I support this Bill to cut stamp duty temporarily for many current and future homebuyers. This will hugely benefit those looking to access the housing market as nearly 90% of people, as we have heard, will pay no stamp duty at all as a result of this change.

Yet in my Delyn constituency, we have a sense of unfairness. Just eight miles across the border into Wales, we will not be able to benefit from the changes in this Bill simply due to our location. In Wales, land transaction tax, the Welsh equivalent of stamp duty, penalises first-time buyers already. It incentivises young people to move out of Delyn and similar constituencies down the England-Wales border to places that are more accessible and more affordable, taking their economic activity with them to the detriment of our Welsh towns and communities.

[Dr James Davies (Vale of Clwyd) (Con)]

Will my hon. Friend give way?

[Rob Roberts]

I will certainly give way to my constituency neighbour.

[Dr Davies]

Does my hon. Friend agree that the housing market in Wales is being impacted not only by the lack of a stamp duty holiday in Wales, but by the continuing ban on the viewing of occupied properties?

[Rob Roberts]

My hon. Friend makes an excellent point. The hon. Member for Liverpool, Walton (Dan Carden) mentioned that the Chancellor had a cunning plan. Well, Labour’s very own Baldrick must be running things in Wales, where live property viewings can take place only after the property has been unoccupied for 72 hours, though quite how that works in getting properties moving is beyond me.

Buyers are already being encouraged to purchase property in England rather than in Wales, and I would urge the Welsh Government to follow the lead of my right hon. Friend the Chancellor in supporting the housing market and matching the stamp duty measures announced in this place. This will not only boost the local economy and housing market, but make it easier and more affordable for first-time buyers in Wales. As always, if this policy is adopted by our friends in Cardiff Bay, it will probably be two weeks later, it will probably be called something slightly different. Instead of changing the stamp duty threshold to £500,000, it will be labelled “amending the land transaction tax lower limit to half a million pounds”—anything to give the shockingly poor Labour Administration in Cardiff the ability to say that it is their policy and they can determine the wording.

I would say to the First Minister that if he does his regular job of prevaricating on this measure, a massive volume of property transactions will be lost and we will drift even further into more of the economic difficulty that Labour has presided over in Wales for two decades. He should stop sitting on his hands, and do something for the people of Wales to ensure that we can move forward with as minimal a loss of economic activity as possible. I look forward to the Senedd elections in May next year, when the people of Wales can rightly get rid of this appalling Labour Government.

Moving on, data from HomeOwners Alliance suggest that the average time it takes to sell a property, from listing to completion, is about six months. I appeal to my right hon. Friend the Minister to consider extending this scheme from nine months to 12 to 15 months, because restricting it to nine months runs the risk of a measure designed to be a stimulus primarily just providing a windfall to people who are already engaged in the market, rather than attracting more properties into it. An extended stamp duty holiday past next March will also aid the long-term recovery of the housing market, preventing a boom scenario that could slow down when the scheme finishes. As the Government are rightly serious about supporting both buyers and jobs within the whole housing industry, increasing the term to 12 to 15 months will allow construction companies and house builders to make informed and strategic decisions about how to move forward beyond that period, and will in turn assist the long-term economic recovery of the market.

That being said, I welcome the changes the Bill introduces. I believe that temporarily scrapping stamp duty on all homes under £500,000 is the right thing to do to boost confidence and encourage growth in the housing market, and I again urge the Welsh Government to take forward similar plans as soon as possible.

Economic Update

James Davies Excerpts

Wednesday 8th July 2020 Commons Chamber

[Dr James Davies (Vale of Clwyd) (Con)]

The tourism and hospitality sector right across the UK will thoroughly welcome my right hon. Friend’s announcements today, but the sector in my constituency will benefit only if it is allowed to open, so will he endorse the call by Jim Jones, the chief executive of North Wales Tourism, for the Welsh Government to open up restaurants, pubs, cafés and indoor attractions by no later than 19 July?

[Rishi Sunak]

My hon. Friend knows well how important tourism is to Wales’s economy. In fact, it may well be more reliant on tourism than any other part of the UK, from memory, so I fully understand and sympathise with his desire to get his local tourism businesses open, ready for business and ready to ensure that we can all enjoy the summer safely in Wales.

Covid-19

James Davies Excerpts

Monday 11th May 2020 Commons Chamber

[Dr James Davies (Vale of Clwyd) (Con) [V]]

I welcome the opportunity to contribute to this debate. During the pandemic, many have turned to their MP for help, and so far nearly 800 cases have been brought to me by constituents. That has proven to be a challenge at times —especially while I have been struggling with covid symptoms myself—but it has been rewarding to assist so many people. I thank all who have joined me in working around the clock to provide responses. I must also thank key workers at this immensely challenging time and pay tribute to all who have volunteered to help their communities.

I welcome the generous package that the Government have introduced to support individuals and businesses. A great number of my constituents have expressed their thanks for these schemes, and I would like to add my own thanks for the hard work that has been undertaken by Ministers, officials and industry representatives to construct these programmes.

In such difficult times as these, a united approach across our country is vital, and regrettably, much of my time over the last several weeks has been spent dealing with confusion and anxiety where that has not been the case. It started with national guidance to seek coronavirus advice via the 111 service, when no such service existed in north Wales. Soon afterwards, the Welsh Government were in such a rush to announce the closure of schools in advance of the UK Government that they did so without the initial mention of provision for vulnerable children and those of key workers. Following this, the very successful GoodSAM scheme, which recruited volunteers, was not embraced by the Welsh Government, with far fewer volunteers being registered in Wales as a result. While the UK Government ploughed on with their plans for the Nightingale hospitals, precious little appeared to be under way in north Wales. Following work with the health board, three temporary Rainbow hospitals are now available, and mercifully they have not been required as yet.

Perhaps one of the greatest issues in my mailbag has been the difficulty of obtaining supermarket delivery slots, because the Welsh Government were initially unable to provide supermarkets with electronic lists of shielded patients. To compound matters, the online form for registering as a vulnerable person would not accept applications from Wales. Shielding letters were greatly delayed in comparison with the situation in England. It then emerged that the 80,000 shielding letters sent out by the Welsh Government included 13,000 that were sent to the wrong addresses. Only a week ago, a shocking further 21,000 recipients were identified. A survey by Asthma UK and the British Lung Foundation found that while 10% of its respondents from Wales had received a shielding letter, this rose to an average of 17% in the rest of the UK. I still have many constituents yet to receive a shielding letter, such as Eleri Humphreys from Rhuddlan. It is my belief that the dispatch process of shielding letters highlights critical failures in the IT systems in use in NHS Wales, which contribute towards poor performance of the system on a daily basis.

As covid testing has been ramped up in England, the Welsh Government failed to match that, with access to testing still unavailable to many groups. It is now belatedly available to some care homes. The online booking portal available in England, Scotland and Northern Ireland does not function in Wales, and until just days ago, all tests carried out in north Wales were being sent on a several-hour trip to Cardiff for processing, when sending them to the Alderley Park “mega-lab” would have reduced lab transfer times to as little as an hour. Most recently, it was revealed that poor communication between the health board in north Wales and Public Health Wales had resulted in a failure to report all of its 84 coronavirus-related deaths over the—[Interruption.]

[Mr Deputy Speaker (Mr Nigel Evans)]

We appear to have lost James, but thank you very much for your contribution. Let us move now to our final speaker, Dan Jarvis.