Residential Leasehold for Flats

Debate between Lord Goddard of Stockport and Baroness Penn

Thursday 30th November 2023 Lords Chamber

[Baroness Penn (Con)]

My Lords, I have tried to learn not to be surprised by any amendments tabled to government Bills by your Lordships’ House, but I would like to reassure my noble friend that this Bill is focused on helping leaseholders now by making existing leases fairer and more affordable. We have focused on legislating where we can make a genuine improvement to leaseholders’ daily lives right away. For example, we are making it cheaper and easier for leaseholders to purchase the freehold of their building or a 999-year lease on their property and take control of their building’s management from the freeholder. When it comes to reforms to commonhold, we continue to consider the Law Commission’s report in detail to find the best way forward and we are committed to taking forward that additional work.

[Lord Goddard of Stockport (LD)]

My Lords, one of the most expensive consequences of being a leaseholder, especially in flats, is the service charges that freeholders can level against you. They are completely unregulated and can be totally exorbitant. Does the Minister agree that we need to abolish service charges, especially for flats, and replace them with a commonhold system, which would be much fairer for leaseholders and would stop unscrupulous freeholders from ripping off hard-working families?

[Baroness Penn (Con)]

I can reassure the noble Lord that the Bill does contain provisions to bring greater transparency around how service charges are brought for leaseholders, so that there is greater accountability for what those charges go to and leaseholders have a greater ability to challenge them if they think they are unfair.

Arrivals Duty Free at UK Airports

Debate between Lord Goddard of Stockport and Baroness Penn

Thursday 30th March 2023 Lords Chamber

[Lord Goddard of Stockport]

To ask His Majesty’s Government what assessment they have made of the (1) jobs created, (2) revenue generated, and (3) tax receipts generated, by the introduction of arrivals duty free at UK airports.

[The Parliamentary Secretary, HM Treasury (Baroness Penn) (Con)]

Duty free on arrival would place additional pressure on the public finances, to which excise duty makes a significant contribution. Any loss in tax revenue would have to be balanced by a reduction in public spending, increased borrowing or increased taxation elsewhere. Although there are no plans to introduce such a scheme, the Government keep all taxes under review.

[Lord Goddard of Stockport (LD)]

I thank the Minister for that Answer. Is she aware that arrival duty-free stores have had considerable success in Norway and Switzerland, where they provide additional commercial revenue streams for the airport to supply growth, and that passenger spending would increase by 30% if they were brought in in this country? Will the Minister ask the Treasury to commit to discuss arrival duty free with airports and ports and explore the wide-ranging economic benefits for the UK through consultation?

[Baroness Penn (Con)]

My Lords, we welcome engagement on this issue, and we have heard the case put forward for duty free on arrival. As I have noted, the Government believe it would place additional pressure on public finances. One challenge is that any potential uplift in spending potentially displaces spending with other domestic duty-paid retailers and therefore could compete against them. The Government would also need to be confident there was adequate infrastructure and resourcing to combat fraud and ensure compliance. We have no plans to consult on duty free on arrival, but we keep all taxes under review and we consider all available evidence as part of the tax-making policy process.