Finance Bill

Debate between Caroline Nokes and Daisy Cooper

Committee of the whole House
Wednesday 11th December 2024 Commons Chamber

[Daisy Cooper (St Albans) (LD)]

We Liberal Democrats have long campaigned against what has become, in some places, the scourge of second homes. In too many cases they disrupt or destroy local communities. However, I argue, as does my party, that this is not the best way of doing it. Clauses 50 to 53 raise the stamp duty surcharge on second and subsequent homes. I can see why it is attractive—it is an easy way of raising tax revenue for central Government—but it does not tackle the root problem. I urge the Government to look at the Liberal Democrat proposals, which would do both.

The impact of holiday homes, and short-term lets in particular, has been well rehearsed in the House over the years, but without any action by the previous Conservative Government to tackle it. In my constituency we have seen an absolute explosion of Airbnbs, which have become a magnet for antisocial behaviour and noise. Properties are taken out of the rental market, increasing demand and pushing up rental costs, squeezing many people out of the market and out of our area all together.

The shadow Minister, the hon. Member for North West Norfolk (James Wild), highlighted the risk that this measure may pose of properties being moved from long-term let to short-term let. It may come as some surprise that the previous Conservative Government failed to regulate short-term lets properly. Indeed, when this House was considering the Levelling-up and Regeneration Act 2023, we Liberal Democrats tabled amendments to the Bill to give local authorities the power to regulate the number and location of Airbnbs—a power that is desperately needed. Every single corner of our country should be able to strike the right balance between tourism and homes for local people, where they can build their lives and their community.

We also called for a separate planning class to be created for local authorities, and we want local authorities to have the powers to levy higher council tax for newly bought second homes, with an additional surcharge on overseas residents. That would provide regular income for our hard-pressed councils, not just infrequent money for central Government.

We all know that we have a national housing crisis, but it is also a local housing crisis, because it presents differently in different parts of the country. We urge the Government to look at our proposals to raise regular tax revenue for our hard-pressed councils while tackling this problem at its root. I invite Ministers to speak to the Secretary of State for Housing, Communities and Local Government to ensure that we can give our local authorities the power to regulate the number and location of short-term lets such as Airbnbs, so that our communities are no longer disrupted and destroyed.

[The Second Deputy Chairman of Ways and Means (Caroline Nokes)]

I call the Minister.

Financial Services: Mansion House Speech

Debate between Caroline Nokes and Daisy Cooper

Monday 18th November 2024 Commons Chamber

[Madam Deputy Speaker]

I call Liberal Democrat spokesperson Daisy Cooper.

[Daisy Cooper (St Albans) (LD)]

We welcome any reforms that will provide an effective route to growth without putting undue pressure on people’s savings, so we look forward to seeing more details from the Government. In the meantime, I press Ministers on their broader goal of getting investment in innovation. Constituents in St Albans report that their small and medium-sized enterprises have invested in innovation. They have successfully applied for research and development tax credits, only for His Majesty’s Revenue and Customs to claw them back. It is right that HMRC tackles errors and fraud, but thanks to Conservative inaction, it is now widely accepted that a number of SMEs are seeing their valid claims rejected or withdrawn, while others are simply not applying for the tax credits at all. Will the Minister please conduct an urgent review of HMRC’s approach, with a particular focus on whether it is undermining the growth and innovation of the SME sector?

Budget Resolutions

Debate between Caroline Nokes and Daisy Cooper

Wednesday 6th November 2024 Commons Chamber

[Daisy Cooper]

I thank my hon. Friend for that excellent intervention. I absolutely agree that they should be exempt; I think the rise in national insurance contributions is the wrong thing to do, full stop, but if it is going to go ahead, there must be exemptions. In my own area, for example, one local hospice in Hertfordshire will see its national insurance contributions go up by £150,000. Its warning is very clear: that if this rise goes ahead, beds will have to close.

People must see opportunities in enterprise as well, but the rise in national insurance contributions will hit small businesses hard, especially those on the high street. The success of our high streets really matters, not just for growth but for confidence: for so many people, the high street is the most visual and visceral mark of whether or not the economy is thriving. I would be grateful if the Minister could indicate later today whether the Government intend to bring forward a high streets strategy, and if so, when we might see it.

I have been inundated with messages from small businesses on my high street in St Albans. Here are just some of the quotes: one business said that

“the reality of last week’s budget will mean no more investment and no further recruitment as was planned and in all likelihood redundancies.”

Another small business said:

“I provide employment locally, raise money for local charities and have created a much-loved addition to our town centre…I am worried about how much longer I can go on.”

One business said that it

“would be impacted mainly with our business rates increase and my plea is that that can’t happen. The high street challenges are hard enough as they are”

without having to face

“an uncertain Christmas trading period.”

Other colleagues have mentioned the impact on medical charities, hospices and GPs. In Hertfordshire, the local medical committee said:

“Since 2014 we have seen 56 practices close or merge across Bedfordshire and Hertfordshire, representing 35% of the 216 practices that existed back in 2014.”

GP practices need certainty as to whether any of these costs will be passed on to them at a time when they are already feeling the squeeze. I can guess what the Minister may say: he may encourage Members on the Opposition Benches to indicate how we would raise taxes instead. In the spirit of constructive opposition, we Liberal Democrats urge the Government to think again, because we believe the burden of fixing our public services should fall on the shoulders of the big banks, the gambling companies and the big tech companies, not the small businesses that are the beating heart of our communities. Suppressing small business is not the route to growth.

The business rates reforms in the Budget not only fall short of what we need, but actually make things worse in the short term. The last Conservative Government promised to reform the business rates system, but failed to do so. The current system penalises bricks-and-mortar retailers, while out-of-town retailers manage to get off almost scot- free. Pubs, high street shops and the rest of the hospitality sector have been hit really hard, with the discount being reduced from 75% to 40%. That is going to have a major impact. St Albans is renowned for its pubs—as many of the more long-established Members will remember, I talk about the pubs in St Albans on many occasions. We have more pubs per square mile than anywhere else in the UK, but those pubs will now face additional business rates bills of between £5,000 and £35,000. Some fear that this could push them over the edge.

Over the past few days, much has been said about food security as well. We Liberal Democrats agree that the loopholes that are being exploited by big corporations that buy up swathes of our land must be closed, but we are concerned that the Government’s approach is rather crude—that as they try to close those loopholes, some family farms will be collateral damage. Again in the spirit of constructive opposition, I encourage the Government to look again at our proposal for a proper family farming test, as is used in some other countries.

Finally, I will say a word or two about investment. We Liberal Democrats believe that the Government have done the right thing in changing the fiscal rules, and in principle, we believe in the importance of borrowing for productive investment. However—once again, I say this in the spirit of constructive opposition—I think the Government have put all of their growth eggs in the building back basket. I understand why they may be doing that. However, given the Trump presidency and the prospects of potential tariffs and trade wars that could drive up the price of products such as semiconductors and construction materials, there is a very real risk that the investment that the Government make will not reap the rewards that we all hope for—through changes in the global climate, rather than any fault of their own. We need a resilient economy, so I praise the Government for investing, but urge them to look at the question of resilience. At this time, it is even more important that we look to small businesses and high streets for growth, so I urge the Government to think again and unleash the power of our high streets and small businesses, rather than hamper them.

[Madam Deputy Speaker (Caroline Nokes)]

I call Irene Campbell to make her maiden speech.

Fiscal Rules

Debate between Caroline Nokes and Daisy Cooper

Monday 28th October 2024 Commons Chamber

[Madam Deputy Speaker (Caroline Nokes)]

I call the Liberal Democrat spokesperson.

[Daisy Cooper (St Albans) (LD)]

Under the Conservatives, the fiscal rules changed five times in seven years, so a change to fiscal rules is not that unusual in and of itself. However, does the Minister agree that what would be completely unforgivable is a repeat of the Conservatives’ disastrous mini-Budget, in which they tried to pursue £40 billion of unfunded tax cuts, and which left a long shadow on our public finances? Will he assure us that any additional borrowing that the Government seek will only be for productive investment that will generate growth and fix our crumbling hospitals and schools?

Public Spending: Inheritance

Debate between Caroline Nokes and Daisy Cooper

Monday 29th July 2024 Commons Chamber

[Daisy Cooper (St Albans) (LD)]

The legacy of the Conservatives’ new hospitals programme is dire, but the Chancellor will know that there is also a cost to delay. We have life-expired buildings that will continue to need to be patched up until they are replaced, so I urge the Chancellor, as I urged the Secretary of State for Health and Social Care last week, to give the go-ahead to those projects that are ready to go and involve life-expired buildings. Will she review the outdated rules, and allow hospitals to spend more of their capital funds on helping with repairs and rebuilds?

[Madam Deputy Speaker (Caroline Nokes)]

I call the Chancellor.