Budget Resolutions

Andrew George Excerpts

Monday 2nd November 2026 Commons Chamber

[The Secretary of State for Housing, Communities and Local Government (Angela Rayner)]

This is a Budget with immediate action today and clear direction for the future. If we want to build a Britain where all people can live a good life and live it well, where everyone has control to shape their own lives for themselves, and where no one’s future is limited by where they are from, because the only ceiling is their own ambition, what we need is good growth in every postcode. However, we also know that people need a bit of breathing space right now, which is why we have announced targeted support for households this winter, and action to bring down the cost of essentials.

We are a Government with a clear theory of growth: retake control, and devolve power to places. We are fundamentally shifting where and how decisions are made by transferring powers, resources and functions to mayors, strategic authorities and local authorities across England, and we are working with the devolved Administrations of Scotland, Wales and Northern Ireland. That shift means that local leaders with skin in the game can target spending towards the biggest issues in their communities: new housing projects, infrastructure that cuts workers’ commutes, and investment in our town centres.

The fiscal devolution road map published alongside the Budget sets out a new funding model so that local leaders can rise to this challenge: by the end of the decade, local and regional government will retain 100% of the business rates income. It sets out plans for mayoral strategic authorities to receive a share of local income tax revenues from 2028, and details how the overnight visitor levy will work, as well as our plans to explore further fiscal devolution.

[Andrew George (St Ives) (LD)]

The right hon. Lady has said that she wants to ensure that there is good growth in every postcode and has referred to the business rating system, but in the Budget the Chancellor extended the tax loophole available to holiday lets in postcodes in Cornwall and other tourist areas. Is the right hon. Lady aware that billions of pounds are handed out to second-home owners who flip their properties to holiday letting in order to take advantage of a tax loophole? Would it not be far better to invest that money in social housing for local people in desperate housing need?

--- Later in debate ---

[Andrew George (St Ives) (LD)]

It is a pleasure to follow the hon. Member for South Derbyshire (Samantha Niblett). She refers to the fact that this is a Labour Budget, but I want to highlight how it does not contribute as I would hope it would—of course, good growth in every postcode is a good thing—to combating widening inequality. I am not sure it lives up to what I believe the Labour party argues for.

I submitted early-day motions 939, 940 and 963, which provide constructive proposals to the Chancellor on addressing widening inequality. They were constructive proposals, as one would expect me to provide. The Conservatives want to focus on the benefits bill, and of course we should, but they do not seem to want to focus quite so much on the benefits bill of tax benefits for the wealthy. It is that area that I wish to concentrate on most.

Some 23% of the Government tax take—£217.5 billion —is available in tax reliefs, as Treasury Ministers know full well. The Treasury Committee has identified that 80% of those tax reliefs have never been publicly costed or evaluated. I hope the Government will look at these matters. I will come on to one on housing in a moment.

The Secretary of State referred to my private Member’s Bill, which is up for debate on Friday 13 November. It addresses both the need for first homes before second homes, and need before greed in the planning system. I hope that Labour Members will come along to support the Bill. What concerns me in particular is the business rates relief system. The Red Book, on page 130, refers to the availability to small businesses of rates relief for the retail, hospitality and leisure sector. That includes, of course, holiday lets. The problem is that, because holiday lets have invariably been second homes, people have flipped their property from council tax to business rates, applied for small business rates relief and then paid nothing at all. The Government have extended the valuation from £12,000 to £18,000, which has then made a larger group of people, who are wealthy enough with their second properties, now able to take advantage of this particular loophole.

In areas like mine, with large numbers of second homes, we would like the half a billion pounds that has gone from the taxpayer into the pockets of second home owners, to be put into social and affordable housing. It is driving inflation in the system and creating further inequality. I do hope the Government will look at this issue again, think again and address it.