Council Tax Valuation Bands Bill [HL]
Debate between Lord McKenzie of Luton and Lord Marlesford
Lord Marlesford
I want to say a word on the retrospection point. Recently, the Chancellor of the Exchequer reduced the rate of capital gains tax from 28% to 20%. That new rate will apply to gains which are realised after, I think, 5 April this year on gains which have already been made which, if the sale of the asset subject to capital gains tax had been made earlier, would have been at 28%. So changes in tax rates do have an element of retrospection.
I do not believe, frankly, that we are going to have a lot of widows who bought a house since the year 2000 finding that they are paying enormous new sums, as my noble friend mentioned. The big increases have probably been in the last five years and it is very unlikely that widows have paid millions of pounds for houses in the last five years or so and therefore suddenly find that they are put on to a new rate. I think it would be perfectly reasonable that they should be put on to a new rate if that were the case.
Lord McKenzie of Luton (Lab)
I was not planning to intervene in this debate and I very much support the position taken by the noble Lord, Lord True, but how does the noble Lord cater for those cases where very expensive houses are held by offshore companies and it is not the transfer of the asset within the UK which causes ownership to change but the ownership of the shares of the offshore company? It seems to me that that cannot be readily catered for within the system. Fundamentally, also, how does the noble Lord address the very telling point, made by the noble Lord, Lord True, that we are going to end up with two schedules of valuation? Properties next to one another, otherwise identical, will, under the noble Lord’s system, be paying completely different council tax. That cannot be sensible.
Lord Marlesford
Of course there are two schedules: it is the whole purpose that properties migrate, when they change hands, on to the new schedule. People who are currently occupying a property, if it was acquired before 2000, will be on the old schedule and there will be no change at all. Even in my illustrative table, for most people there will be no change anyway, because although the bands will be different and there will be some losers and some gainers, they will not be very big ones.
On the noble Lord’s very important point about overseas people, I have always believed that one way of dealing with the abuse of the overseas purchase of property should be that British law should be so administered that ownership is not recognised unless the property has been properly registered by the Land Registry in the name of a person. If that happened, people would be very hesitant to acquire expensive property without getting a proper Land Registry entry, because that is the proof of ownership—if you are going to buy something, you want to be absolutely certain who you are buying it from. The noble Lords raises a perfectly valid point which should be dealt with, although it is not dealt with in this Bill.
I think that this is an idea worth pursuing. It may be that we will want to make further amendments on Report—if there is time to do it before the new Session, which is probably rather unlikely—but I think that the Bill is an advance worth making and I therefore ask my noble friend to withdraw his amendment.
Growth and Infrastructure Bill
Debate between Lord McKenzie of Luton and Lord Marlesford
Lord Marlesford
I support my noble friend Lord True. I speak from the grass-roots point of view, which will, I hope, answer the point made by my noble friend Lord Deben.
The role of the parish council is crucial in these issues. It is the grass roots of democracy and government. My noble friend Lord True is right about the need to have proper arbitration and consideration in the way his amendment will allow in the council areas that wish to take that route. My noble friend Lord Deben talks about having an arbitrator appointed by the local authority in due course. That seems a little circular, because frankly we are talking about making these matters subject to local arbitration.
My own parish council in the small village in Suffolk in which I live, which I chair, at the moment has two cases of people who wish to extend their houses. They will be considered at the grass-roots level by people who know everyone and they will both be settled very amicably. This is known. However, if you get people who are not prepared to take account of local considerations, preferences and feelings, you will soon run into frictions that could so easily be avoided.
It is for that reason that I will support my noble friend Lord True if he decides to test the opinion of the House.
Lord McKenzie of Luton
My Lords, the noble Lord, Lord True, has been clear and consistent on this matter, and he has our support. I am delighted that he also has: the support of the noble Lord, Lord Tope, who said that, given the statistics, there cannot be much wrong with the current system; the authoritative support of the noble Earl, Lord Lytton, as a distinguished technician; and the support of the noble Lord, Lord Marlesford. I should say to the noble Lord, Lord Deben, that we are not in the place that he describes. Is it not better that a local authority engages with communities and tries to get the balance that these kinds of issues throw up rather than the Secretary of State? Local authorities might not be the fount of all knowledge, but I would rather have local authorities involved in local decisions than the Secretary of State. I think that is also the view of the noble Lord, Lord Cormack.
The noble Lord, Lord True, has argued his case on the basis of localism, the lack of proper consultation, the insignificant effect on growth, the riding roughshod over neighbourhood engagement, the unpicking of the hitherto planning balance and the inadequacy of the Article 4 remedy. However, we should be grateful to the noble Baroness, Lady Hanham, as others have said, for the further information that she has provided, particularly on the Article 4 direction.
The Government, of course, have a wider agenda around permitted development rights, and like other noble Lords who have spoken we deprecate the fact that the Government have not yet felt able to publish their response to the consultation, which closed in December last year.
The amendment of the noble Lord, Lord True, is very specific and modest. It applies only to permitted development within the curtilage of a dwelling house, and it disapplies those rights only when a local planning authority resolves that they do not apply. Unless and until that happens, the permitted development rights endure. If the permitted development rights do not apply, any proposed development has to go through the normal planning process. It is, as the noble Lord said, about equity.
Of course we acknowledge the role that the construction sector can play in generating employment and growth, but that is not to say that it should be gained by tearing up sections of the planning system. We can tell from the noble Baroness’s letter that the Government will cling to the Article 4 defence. The Minister’s recent letter suggests that the process of getting an Article 4 direction is straightforward. It records that the Secretary of State has not exercised any powers of intervention since the change in 2010, which only required directions to be notified.
If in practice the Secretary of State is hands-off, why not, as the noble Lord’s amendment suggests, just leave it to the local planning authorities in the first place? Let them decide whether permitted development rights of the type described should run. However, on reading the guidance it is clear that matters are not quite as straightforward as the Government argue. We have all read the LGA briefing, which spells out why Article 4 directions are ineffective, particularly on compensation issues and loss of planning fees, as has been mentioned.
It is to be hoped that the Government will find themselves able to accept this amendment, and we look forward to the Minister’s reply. But if the noble Lord, Lord True, does not get satisfaction, we will join him in the Lobby. I believe it is right that we should seek to settle the matter today.
Localism Bill
Debate between Lord McKenzie of Luton and Lord Marlesford(13 years, 5 months ago)
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Lord McKenzie of Luton
My Lords, with respect, I find myself more in agreement with my noble friend Lord Whitty than with my noble friend Lord Judd. I am bound to say that that is unusual. My advice is that the normal arrangement is that parties bear their own costs in an appeal. I have heard nothing which suggests that we should disrupt that arrangement whether in respect of wind farms or anything else. If we go down that path, we shall have a two-tier system whereby in some circumstances people will bear their own costs whereas in others, because they happen to be wealthier, they will have different arrangements. That seems a rather odd proposition. However, I particularly wanted to—
Lord Marlesford
The noble Lord misunderstood me; of course, I am aware of that. The point is that the costs likely to fall on the local authority in a prolonged planning appeal have to be a consideration. In plenty of cases there has been a threat that if it is felt, or can be shown, that the local authority was wrong to deny the planning consent in the first instance, damages for the delay can be claimed by the applicant. That is the point I was making.
Lord McKenzie of Luton
I understand that point but it seems to be being proposed that the outcome of an appeal is somehow prejudged, and that some will have satisfactory outcomes with which we are happy but others will not. I pick up the proposition that the planning inspectorate colludes to try to achieve government policy in respect of renewables. As I have said before, I was a Minister in CLG for a very short period. All Ministers get the opportunity—if that is the right word—to deal with inspectors’ reports. Certainly, my experience of probably no more than half a dozen such reports is that they were very thorough and very balanced. Some recommended that an appeal should be accepted, others did not. My experience is that a professional approach was taken to the matter. I certainly did not detect any perceived pressure on the inspectorate to achieve one outcome rather than another, so it is rather unfortunate to suggest that the opposite is the case. I am very well aware that supermarkets push their luck through the planning system but they get knocked back. That seems to me to validate the process that we have.