Finance (No. 2) Bill

Debate between Lord Spellar and Jonathan Reynolds

Committee: 1st sitting: House of Commons
Monday 18th December 2017 Commons Chamber

[Jonathan Reynolds]

We will get on to whether those measures will be effective, based on the assessments that have been made. I am old enough to remember when a tax on land banking was described as Venezuelan-style socialism, so it is good to see some permutation of that idea among Government Members.

The analysis by the OBR on the likely outcome of the policy shows that it will push up prices by 0.3% in 2018.

[John Spellar]

My hon. Friend is talking about land banking by the big house builders. Is not the evidence of that the utterly obscene bonus being paid to the chief executive of Persimmon, which is so outrageous that the chairman of the company has seen fit to resign in disgust?

[Jonathan Reynolds]

My right hon. Friend identifies another feature of a dysfunctional market. That will be corrected only by a change in Government policy, but we have not seen one in the Bill.

Conservative Ministers’ review of a previous stamp duty cut concluded that the tax relief, in itself, had

“not had a significant impact on improving affordability for first time buyers”.

That is why Labour has tabled an amendment calling for the publication of a review prior to the 2018 Budget on the impact of the relief on first-time buyers, including its effect on house prices and the supply of houses.

The Minister, as usual, talked an extremely good game on funding for new housing, which he said would help to ameliorate the supply issue. On further scrutiny, however, we find that no measures in the 2017 Budget will directly increase house building. Only one third of the £44 billion announced in the Budget is genuinely new, and there is no extra Government investment in new affordable homes. That builds on a legacy of failure. Let us remind ourselves that not one of the 200,000 starter homes promised by the Tories three years ago has yet been built. That lack of action is having a serious impact across every part of our society. During the Government’s seven years in power, homelessness has doubled. Shockingly, recent statistics from the Department for Communities and Local Government show that nearly 80,000 households were homeless in September; that includes 120,000 children. The situation is extraordinarily urgent.

Proportional Representation

Debate between Lord Spellar and Jonathan Reynolds

Monday 30th October 2017 Westminster Hall

[Jonathan Reynolds]

I absolutely agree with the hon. and learned Lady. When we look at the alternatives available to us, we see that no system will satisfy everyone, but the best way forward has to be a system that provides a constituency link—that is clearly such an important feature of our political system, and one that I support entirely—but also a representative election. Through that the whole range of political opinions cast in an election are reflected in the result and the system gives a majority, as the SNP had in the Scottish Parliament for some time, when the public have given their consent to that majority, but it does not give a majority based on this false notion that there should be some multiplier effect when the public are unwilling to give one party a majority.

[John Spellar]

Will my hon. Friend give way?

[Jonathan Reynolds]

Yes. My right hon. Friend and I have had this debate for many years, and we will continue to do so.

[John Spellar]

I thank my hon. Friend for giving way. He cited with approval Scotland and Wales. Is it not the case that every area in Wales voted to reject change and stick with first past the post in the referendum? In Scotland every area apart from the university seats in Glasgow and Edinburgh voted to keep the current system.

[Jonathan Reynolds]

We will come to that issue when I go through some of the commonly raised points that my right hon. Friend and I have discussed for some time.

The crucial point I want to make is that the additional member system used in Germany, Scotland and Wales avoids the vast electoral deserts where people in a part of a country, whether a county or a region, get no plurality of representation despite casting votes for a range of political parties. Front Benchers are called to respond to debates in Westminster Hall. I remember responding to a debate on travel in the south-west of England when I was shadow rail Minister. There were 20 Conservative MPs on the Government Benches and just me on the Opposition Benches to respond. Members would get up and say, “Only the Opposition Front Bencher is here,” but if we look at the election results, we see that even in the south-west more people voted against the Conservative party than for it. Clearly it was the biggest party, but the system delivered 100% representation for a party that was not even getting a majority of the vote in the region. That cannot be right.