Stamp Duty Land Tax

Debate between Anne Main and Jonathan Edwards

Thursday 4th December 2014 Commons Chamber

[Mrs Anne Main (St Albans) (Con)]

I am delighted to speak in this debate and am pleased that the Treasury has been persuaded of the need to do this and to find a way of doing it, which was the crucial point. I know that there is no great pot of money out there to throw around, but this measure is vital for young people struggling to get on the housing ladder and for people across the country. Having looked at the average house price in the UK, I know that it will help many families in many constituencies, including my own. If I was being very greedy, I would have said that I would have liked the bands to have been moved up, but I shall rest happy with the fact that we have now got rid of the hated slab structure that caused what I called zombie prices, which no family ever paid. Nobody paid £251,000 for a property, because it incurred an enormous jump in the tax they had to pay.

I believe that one of the reasons why the Help to Buy scheme was not taken up well inside St Albans was that our average house price is so high compared with that in the rest of the country. I found one property at the time that was under £125,000, and that was a studio. Barely any properties came under £250,000. If people cannot save up a deposit, how on earth will they afford to save the tax as well?

This measure is hugely welcome. I am sorry to say to my hon. Friend the Financial Secretary that Lori, who served me my coffee this morning in Lori’s Café, said that her new pin-up is now the Chancellor, because he will save her thousands of pounds when she moves into her retirement bungalow early next year. I said that I would give Lori’s good wishes to the Chancellor, because she has had a happy Christmas present from him.

[Jonathan Edwards (Carmarthen East and Dinefwr) (PC)]

I share the hon. Lady’s sentiment that this seems to be a very progressive measure, but is she not slightly concerned that the result might be increased house price inflation?

[Mrs Main]

I think that house prices will even out. If there are more transactions and people put house prices up, there will be house price inflation, but I believe that the Government are trying to tackle that by having a big house building programme. The measure will stop the pressure on people who fall around the bands. People have been told that they cannot charge a certain amount for their house, even if they have put a conservatory on it or improved their kitchen. Some have not made those improvements because they would have been pressed into a different band that would have incurred a large amount of tax.

One point that has not been mentioned so far is the possible knock-on effect on other industries. People were telling me that they were reluctant to put in double glazing, to build conservatories or to do any improvements to their houses, that they were struggling to find enough money to buy furniture as well as to pay the deposit because they had to save for the tax, which they could not roll up into their mortgage if they were first-time buyers, and that they were struggling with the multiples. People were telling me that they were struggling with the concept of the high fees that they would have to pay and worrying how on earth they would buy anything else to do with their property. I think that people selling home improvements, bathrooms, kitchens, carpets and so on will suddenly find that people who were expecting to pay a large tax bill have a little bit extra in their pocket, thanks to the Treasury, that they can afford to use to improve their house. They will say that it is worth their moving house, as they will not have the deterrent. This will free up the market and there will be a lot of knock-on benefits.

We have to be mindful of house price inflation, because it excludes a lot of people from the market, but I am absolutely certain that in my area the majority of people who will benefit will be young first-time buyers who are desperately trying to save that awful combination of a very large deposit, solicitors’ legal fees and a large bung to the taxman. I am truly grateful that the Treasury was persuaded of that argument.

I have crunched a few numbers, and I know that somebody asked whether the Treasury would do this. In St Albans, a young couple buying their first flat would have paid an average of £8,132 in the stamp duty levy and they will now pay £4,597. That is a large chunk of money when people are starting out in life. Similarly, in a terraced property they would save just over £2,000, in a semi-detached property nearly £5,000 and in a detached four-bedroom property nearly £2,500. At every level of average house prices, people will save thousands of pounds. Many young people, unfortunately, are having to try to rely on the bank of mum and dad. There will be quite a lot of relieved mums and dads who have been digging deep and helping with these heavy burdens who will be grateful about the measure.

I raised this issue with the Prime Minister in April and asked whether he would use his good offices to influence the Treasury on the question of places like St Albans, with barely one house worth less than £250,000. I thank the Prime Minister if he did that.

I accept that people higher up the ladder will not find this good news. In a high-value area such as mine, people will say that if they were to move up from their £1.5 million house or even to move down to a £1 million house, they will pay higher stamp duty. As I said, there is no golden pot of money out there to throw around. I hope that coming in to the next general election we as a party will say that we are acting responsibly and that we have looked at where help is most needed, which is where it is being delivered. Unfortunately, there must be a bit of give in the system somewhere and, unfortunately for the people affected, the give in this case is at the higher end of the market.

I would like to think that stamp duty was originally meant to target higher-value houses and was never meant to catch the people it is catching, including, in my constituency, young people starting out on the ladder and people on the lower income scales. Although I regret that some people will find the measure not to their liking, especially just before Christmas, the majority of people trying to get on the housing ladder—in my constituency, the figure is something like 97%—will find it a huge bonus. The people who sell double glazing, carpets or kitchen and bathroom improvements whose small businesses have been struggling as people have not been making the investments that would push them over the threshold will, I hope, find that people are now making those investments.

I wholeheartedly welcome the measure and the only Scrooge-like bit that I would add at the end is, as colleagues have mentioned, to ask that we keep an eye on the drag. I would not like to think that other people would soon be sucked in to the wrong bands. I say the wrong bands, because I think at the heart of the Treasury’s proposal is a wish to deliver home ownership to lower income families, young families and people starting out while expecting those with the broadest shoulders to pay a bit more. I welcome these changes.

Connecting Europe Facility

Debate between Anne Main and Jonathan Edwards

Thursday 19th January 2012 Commons Chamber

[Jonathan Edwards (Carmarthen East and Dinefwr) (PC)]

I disagree with the Government motion. I do so in part because the economic and financial position set out in it is in opposition to the policies I have espoused since I was elected, and I oppose it in particular because it would have the effect of further disadvantaging my constituents and my country.

The budget for the entire European Union looks small by comparison when placed in the context of national budgets. The majority of expenditure is on items related to agriculture and to those parts of the European Union that qualify for the cohesion fund in order to promote those areas so that their gross value added is increased to compete with more established areas of the European economy. What a pity that the British state does not employ similar convergence mechanisms! I hope that explains my earlier intervention.

The cohesion fund areas include my constituency in the west Wales and the valleys region. Whatever the arguments for the whole of the UK, and we have heard many powerful arguments to that effect, the redistributive nature of European funding is beneficial for many of my constituents. Indeed, the €50 billion recommended by the Commission in the next multi-annual financial framework for the connecting Europe facility specifically includes 20% ring-fenced in the cohesion fund for transport infrastructure.

[Mrs Main]

I come from Wales, so I might have to declare an interest in this matter. Does the hon. Gentleman believe that a European state is better at giving money to his constituency than people who are already within the UK?

[Jonathan Edwards]

I thank the hon. Lady for her intervention; I shall touch on that as I continue with my speech. That is certainly the case as far as transport investment in Wales is concerned.

In terms of the TEN-T—the trans-European transport network—the proposals for UK core nodes show little connection with the needs of Wales and the improvement of Welsh infrastructure, which is key to developing the economic prospects of Wales. None of the nine urban nodes is in Wales—neither the Cardiff nor the Swansea city regions—while Cardiff airport is not included in the airports provisions. Although Cardiff and Newport ports are both included among the 15 named ports, neither is in the west Wales and the valleys areas that receive cohesion fund support.

The Commission determines a Dublin-London-Paris-Brussels corridor—corridor 8, which includes a route from Belfast to Birmingham through Holyhead. However, critically, no southern corridor route through Wales is referenced among these major routes. Milford Haven in south Wales is the third largest port in the British state and an ideal point for a southern corridor route to and from the southern parts of the Republic of Ireland. I notice that Cork—a port, and the obvious linkage between the Republic of Ireland and Wales—is instead linked with Dublin, Southampton and Le Havre. If Wales were an independent country inside the European Union, it is difficult to imagine that it would be neglected in this way by the European Commission. A designated route along south Wales would bring significant economic benefits to the region, including to the communities I represent in Carmarthenshire, as well as the future development of Milford Haven as a port.

Having spoken to representatives of the Milford Haven Port authority, I understand that Milford Haven meets all the requirements of the European Commission. It is among Europe’s largest 80 ports and handles cargo of more than 43 million tonnes. It is a core link between the Republic of Ireland and Europe. Does the UK Government’s refusal of the connecting Europe facility mean that west Wales is being let down not just by the European commissioners, but by the London Government who are not fighting for the necessary improvements?

The UK Government will know that I have been a keen supporter of the electrification of the great western line not just to Swansea, but further to the west of Wales, and especially through my constituency in Carmarthenshire. It remains a disgrace on the part of the British state that while Glasgow to London was electrified as far back as 1974, the electrification from London, even as far as Cardiff, still remains in the planning stages and about 80% of even that electrification will take place in England.

Electrification is one of the criteria for rail in the comprehensive network, yet electrification of the north Wales coast line or the great western main line west of Cardiff are apparently not up for discussion—even though these would largely qualify for cohesion fund support. I hope this clarifies my response to the hon. Member for St Albans (Mrs Main). To what extent was this considered when the business case for electrification to south Wales was put forward, particularly with regard to the port of Milford Haven? Given the answers I have received to written parliamentary questions since May 2010, I imagine that little thought has been put into this proposal, as no estimate has been made of the cost of electrification for the areas past Swansea, despite the importance of the ports of Fishguard and Milford Haven. Rail connection from London through Bristol, Cardiff and Swansea itself is, in the annex to the proposal of 24 October 2011, identified as part of corridor 8, and it is described as “upgrading”.

We know, of course, that without a U-turn from the UK Government the electrification will go only as far as Cardiff. The European Commission thinks that electrification to Swansea is important as part of Europe-wide rail and transport links, but the UK Government do not, it seems. In a nutshell, here is one reason why my party prefers full member status within the European Union to the present constitutional position. While the EU shows interest in cross-European co-operation and investment, UK policy in recent decades has been increasingly to concentrate on promoting one part of the British state down here in London.

As to the remainder of the proposals, we welcome the support provision for telecommunications in the Commission’s recommendations. When we were in government in Wales, the increase in broadband across Wales was a major plank of my party’s economic renewal plan. Improved telecommunications allows Welsh businesses and Welsh customers to be at the heart of Europe in a way that occasionally our geography does not. That applies particularly to digital connectedness in rural areas such as my own constituency. Will the Government confirm that, despite their opposition to the proposals in the Commission’s draft regulations, the digital facilities in Wales will be at least as good as the goals identified in the digital agenda for Europe and that support for cross-EU help for businesses and individuals will be similarly provided?

On energy, we support the fastest possible and credible reduction in carbon dioxide emissions and a switch to renewable energies from fossil fuels. It is only a shame that Wales is not an independent country able to control its own energy mix and that major energy decisions are made for us instead here in London—either via the Infrastructure Planning Commission or in future by the Secretary of State for Energy and Climate Change. As a country, we generate more electricity than we consume, so transmission is always a very important issue. I must refer once again to Milford Haven—an important energy portal where liquefied natural gas is imported from across the world.

To conclude, my party’s policy throughout the economic crisis since 2007 has been to argue that capital infrastructure spending is vital for the revival of the economy in both the short and longer term—maintaining the construction industry in the short term and increasing opportunities for the future. In Wales—a country that has the same amount of electrified railway as Albania and Moldova, and whose transport infrastructure is geared to move extremely slowly from east to west and not from north to south—infrastructure investment is important.

Wales sees many benefits from the European Union, not least from the common agricultural policy and from the cohesion fund. However, these proposals from the European Commission do not go far enough in supporting infrastructure improvements in Wales, yet they are ironically being rejected by the UK Government because they involve spending too much. I call on various Ministers in this place and in the Welsh Government to work together with the Commission, the Council and the European Parliament to achieve a better deal for Wales in the connecting Europe facility.

Energy Powers (Wales)

Debate between Anne Main and Jonathan Edwards

Tuesday 6th September 2011 Westminster Hall

[Jonathan Edwards]

That saves me having to rewrite my speech halfway through.

[Mrs Anne Main (in the Chair)]

Order. I ask the hon. Gentleman to continue.

[Jonathan Edwards]

Thank you, Mrs Main.

Let me return to the new clause that I proposed to the Localism Bill. It would have included generating stations not only on Welsh dry land but in Welsh territorial waters. The intention was once again to ensure consistency between the aims of the Welsh Government and actions around the Welsh coast. Under the Marine and Coastal Access Act 2009, consents for generating stations up to 100 MW are given by the Marine Management Organisation and, for levels above that, by the IPC. I see no reason why those powers should not be wholly transferred to the Welsh Government.

This is not an idle debate about devolving powers. A forward-thinking Welsh Government should look at the significant potential of our waters—the chance to generate clean, green energy and the economic potential that arises from it. The most prominent example of that would be the opportunity to develop a tidal lagoon in Swansea bay, which is usually quoted as being able to generate about 60 MW of electricity. The plan has been in the pipeline for decades, but we are still discussing how we can bring it into being. Giving the Welsh Government powers over electricity generating station consents at all levels would allow consistency of approach, add coherence to planning regulations and end the anomaly based on arbitrary figures for megawatt production.

During Third Reading of the Localism Bill, I made an intervention on the Minister of State, Department for Communities and Local Government, the right hon. Member for Tunbridge Wells (Greg Clark), who agreed to meet colleagues and me. It was a constructive session, and I thank him for the manner in which he listened to the points made by my hon. Friend the Member for Arfon (Hywel Williams) and by me. He has since written to me to confirm some of the points raised in that meeting on 13 June.

First, the right hon. Gentleman confirmed the disparity between energy legislation powers in Wales and Scotland. It exists because, before devolution, planning law was devolved to Scotland but not to Wales. Therefore, the energy consenting role was transferred to the Scottish Parliament on its inception, but it was not given to the National Assembly for Wales. That historical precedent suggests that with planning powers now in the hands of the Welsh Government, energy consent functions should also be transferred. Will the Government confirm that they plan to honour that precedent in the long term?

The right hon. Gentleman’s letter also confirmed that there were more recent discussions with the Welsh Government in September and October last year. At the time, the relevant Welsh Government Minister argued that renewable energy consents in Wales should be increased from 50 MW to 100 MW, a position that has since become the official Labour line and has been taken up by the new Government in Wales. It was rejected by the Secretary of State for Energy and Climate Change, who said that UK Ministers are responsible for meeting the UK’s renewable energy target and therefore best placed to take decisions on applications for larger renewable projects, and that UK Ministers are responsible for drawing up and designating national policy statements. I hope the Minister can explain why the Secretary of State has changed his mind and why he has performed a 180° turn on the position he voted for in opposition during consideration of the Planning Act 2008. I am sure the hon. Member for Ceredigion would like that clarification, as would I.

The argument seems to be that UK Ministers have decided the rules, so only they can participate in the game. That does not make for a coherent argument in a devolved United Kingdom, and it makes for even less of a coherent argument on energy, which is an international issue. On an issue where there is agreement across the board on the need for change in Wales, I would welcome an indication from the Minister that there will be proper bilateral discussion and debate, and that would probably best take place during the proposed Welsh Calman process, which will happen in the next few years.

It is clear that on energy, as on other devolved issues, communication is paramount. The hurdles can be overcome if the UK and Welsh Governments wish to overcome them. To address the point raised by the hon. Member for Carmarthen West and South Pembrokeshire (Simon Hart), my colleague Lord Dafydd Elis-Thomas told the National Assembly in a similar debate on 6 July:

“There is no reason why there should not be a renewable policy that could be co-ordinated between the nations of the UK. It is not for the United Kingdom to keep responsibility for itself in taking actions on behalf of Wales and Scotland, but a matter on which we should work together.

To finish, Wales should have the same responsibility as Scotland over the utilisation of its natural resources. Diolch yn fawr.