Rating (Property in Common Occupation) and Council Tax (Empty Dwellings) Bill

Alan Mak Excerpts

2nd reading: House of Commons & Programme motion: House of Commons & Ways and Means resolution: House of Commons
Monday 23rd April 2018 Commons Chamber

[Eddie Hughes]

I agree entirely with my hon. Friend, not least because this Government, being the free-thinking Government they are, are not imposing this duty on councils, but giving them the opportunity to apply this measure should they choose to do so, so they will have the opportunity to increase the premium from 50% to 100%. No doubt, Madam Deputy Speaker, you are thinking, “What might they do with that extra money?” I personally suggest that they use that extra money for services for their local constituents in order to drive down bills, increase efficiency and make sure that they either optimise their use of council tax, or possibly decrease their council tax in order to ensure that hard-working families benefit from the change to the law.

[Alan Mak (Havant) (Con)]

My hon. Friend is making a powerful speech. Does he agree that as many councils, including my own, are reviewing and updating their local plans to make sure that we have the housing that we need for the future, this would be a good opportunity to analyse and evaluate whether the council tax premium could be used, accelerated and deployed efficaciously to ensure that we have the right housing in local areas such as mine?

[Eddie Hughes]

My hon. Friend makes an important point, not least because he uses the word “efficaciously” so skilfully. I hope that Walsall adopts that very approach, because, since 2010, we have seen a 40% decrease in the number of empty properties, owing in no small part to the actions of this Government.

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[Michelle Donelan]

I completely agree. It is true that the Bill will particularly help new models of business. It is also important that the Bill will have retrospective effect. Businesses that have been affected can have the amount owed to them recalculated and backdated.

[Alan Mak]

Will my hon. Friend join me in welcoming the Valuation Office Agency’s commitment to prioritise and fast-track reviews and recalculations, particularly for small businesses, if the Bill is passed, as I hope it will be? Will she also join me in urging the Minister to ensure that that happens, to help our small businesses across the country, including in my constituency?

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[Michelle Donelan]

That is an excellent point, which has been a bit neglected in this debate. Start-ups and microbusinesses will benefit in particular from the Bill.

Clause 2 is another measure the Government are implementing to right a wrong. It is about helping to increase our housing stock. As we all know, we have a severe housing shortage in this country, yet thousands of homes are left empty, which is ludicrous.

The Bill will give local authorities the power to charge a 100% council tax premium on empty properties, rather than just the existing 50%. The charge is for homes that have been unoccupied and substantially unfurnished for two years or more. The number of homes that have been vacant for over six months in Chippenham has fallen by 12% since 2010, so one might ask whether the measure is necessary. It is, because we still have 1.16 million households on the social housing list and there is a housing problem, so it is important that we take measures such as this today. Further increasing the premium will, I strongly believe, incentivise owners to sell or rent their properties. I strongly believe that.

I also stress that this is only one action. We must not be under any illusion that the Bill will, in any circumstances, fix our broken housing market—it will not—but the solution has multiple parts and this is one of those answers and one of the measures that the Government are taking.

[Alan Mak]

I thank my hon. Friend for giving way—she is being very generous. Some of the funds raised by the premium could be used to reduce the council tax imposed on hard-pressed council tax payers, or could be invested in new social housing to help people who do not have a home. Does she agree that those are just two ways that the funds raised could be used to help to correct imbalances in our housing market, both in the south-east, where I am from, and in the midlands, where she is from?

[Michelle Donelan]

I agree. It is a two-point strategy: it is about the money that is raised and incentivising people to stop leaving those homes empty.

The point about exemptions has been made by other Members, but it is important to labour it, because I do not want my Chippenham constituents to be unduly concerned or worried that they might be penalised by the policy. They will not because it has exemptions for people in the military, for carers and for people who are going into hospital which are designed to help them. If a home is left empty because of probate, the people concerned will be protected. This is not an arbitrary measure—it is smart and fair.

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[Michelle Donelan]

I completely agree with my hon. Friend that it is important to recognise the work done by campaign groups and all bodies with a vested interest in the issue. It is not just about urban areas. In fact, Graham Biggs, chief executive of the Rural Services Network, a body representing 143 rural local authorities in England, has said:

“Anything that enables councils to bring empty properties back into use is welcome.”

It is also interesting to discuss this Bill in relation to homelessness. We have an odd situation whereby there are thousands of empty homes in the country but also a dreadful and rising problem of homelessness, although the Government are tackling it. As the chief executive of Shelter has pointed out, addressing the situation is not as simple as swapping or flipping those two elements around, because often homes are in different areas from those with the core homelessness problem.

[Alan Mak]

Given that my hon. Friend has mentioned homelessness, it is only right that the whole House commends my hon. Friend the Member for Harrow East (Bob Blackman) for promoting the Homelessness Reduction Act 2017. Does my hon. Friend the Member for Chippenham (Michelle Donelan) agree that that Act’s powers could be used together with the powers in this Bill to tackle homelessness from many directions?

[Michelle Donelan]

I completely agree with my hon. Friend.