Housing and Planning

Derek Thomas Excerpts

Tuesday 3rd March 2020 Westminster Hall

[Derek Thomas (St Ives) (Con)]

I commend my hon. Friend the Member for Harborough (Neil O'Brien) for securing this debate and for its importance, since no one in this Chamber or elsewhere would deny the need to ensure that we get the right kind of housing for the people who need it most.

While we look at how we get access to affordable housing, I will talk a little bit about how I believe local authorities are as much part of the problem as they are of the solution. I wonder whether the Minister could have a look at the charges that local authorities, including Cornwall Council, are applying to small businesses—small builders and small developers who are trying to solve the problem of ensuring that people have the housing they need.

There are high and, in my view, largely unnecessary charges demanded of small builders as a result of Cornwall Council’s policies. I am sure the same is true elsewhere. For example, just to get and complete the form on the Government website regarding section 106, Cornwall Council charges a legal fee of in excess of £1,200. It also demands that over £300 is spent on getting a market valuation to genuinely confirm that a property is affordable.

The community infrastructure levy, introduced by Labour in 2010 but not taken up by Cornwall Council until last year, can add hundreds of pounds per square metre to every house built, just adding to the cost of the affordable home to the person who is trying to get hold of it. The Minister has powers to scrap the community infrastructure levy, and the irony is that Cornwall Council has not yet fully determined how it will spend that money.

That is all in addition to the normal fees that a developer has to secure. Let us bear in mind that in places such as Cornwall, these are often very small builders, who are trying to train good people in the trade and make housing happen. These are additional fees to the fees demanded for planning approval.

Another thing that Cornwall Council has done recently, which on the face of it looks fantastic, is to increase the amount of money that can be charged for a property’s remaining empty—again, because the Government have allowed it. It is absolutely the right thing to do, but when someone comes along to purchase a property to bring it back into use, there is no exception made whatsoever, and they continue to pay that fee, additional to council tax, right until the house is lived in.

I have met the council and asked for that to be reviewed. The council says there are no exceptions, but the Minister may want to look at how councils are using the additional charge, which slows down the ability to bring homes back into use and improve their efficiency. It is right that the council apply the charge, but there must be some flexibility when people are trying to do something right by it.

Finally, the Minister may be aware that his Department has recently received guidance from No. 10 about how to ensure that affordable homes can be made available so that people can gain access to them. I have been working with an organisation called Rentplus; the rent-to-buy model is simple and provides homes, often on stalled sites, which my hon. Friend described earlier. The properties are built using pension funds, which we all know are not earning huge amounts of money for those investing in them.

The properties thus come at no cost to the taxpayer or to Homes England, but they provide houses for working families. Those working families get an affordable rent for as long as they need the home, and then they have the opportunity to buy it at a later point. It is called rent to buy and it is a really good model, but Cornwall Council refuses to allow it to be delivered in Cornwall. The group I am working with, Rentplus, has probably £200 million that it would like to spend in Cornwall. It identifies 800 homes that would have been built if it had been able to do so. Will the Minister look at the guidance that No. 10 has provided, to give Cornwall Council and others encouragement to use models such as rent to buy?

EU Structural Funds: Least Developed Regions

Derek Thomas Excerpts

Wednesday 26th June 2019 Westminster Hall

[Derek Thomas (St Ives) (Con)]

I am glad to have the opportunity to speak in this interesting and important debate. The six Cornish MPs went to the Treasury some time ago to set out why it was so important to address the issue properly. It is absolutely right that when we get the consultation, we use the expertise available to make sure it is done correctly.

I want to be clear that in Cornwall and on Scilly we are looking not for a handout, but for a hand up. The aim of European funding is to reduce inequalities between communities and reduce disparities in regional levels of development, with particular regard to those that have increased deprivation, rural and island areas, areas affected by industrial transition and regions that suffer from severe and permanent natural or demographic handicaps. Cornwall and the Isles of Scilly fit perfectly with those aims. There is no reason not to see ourselves as benefiting from funding.

The seven least developed areas have set some priorities. The most sensible one, I think, is for an ambitious regional policy for England and Wales that recognises the need for a specific mechanism for the regions that are furthest behind. We want a protected allocation of funds to such regions that will allow a genuine rebalancing of the UK economy. I have heard nothing from the Treasury or the Minister to suggest that is not their intention.

[Sarah Newton (Truro and Falmouth) (Con)]

My hon. Friend is making a powerful point. The modern industrial strategy clearly commits to making sure that regions can play their full part, so no region is left behind. The allocated funding would not only improve the lives of people in Cornwall and the Isles of Scilly, but enable the region to contribute to national well-being.

[Derek Thomas]

My hon. Friend is absolutely right. As I say, we have heard nothing yet to suggest that the economy in Cornwall and on Scilly could not thrive. It is really important to MPs in Cornwall that we are part of the solution, not the problem. In July last year I set up a group that works with local business, Cornwall Council and people who already work with the most deprived and left behind in our communities. The group looks at the skills that a shared prosperity fund should deliver to enable people to get the well-paid, skilled jobs they want. The Chief Secretary to the Treasury, my right hon. Friend the Member for South West Norfolk (Elizabeth Truss), attended the first meeting and set out a Government commitment and invitation for us to engage in the process and help them to understand what was needed.

Outside this building today there are thousands of people demanding that we take urgent action on climate change, clean up our air and make our society healthier and fairer. Through the shared prosperity fund we can achieve exactly that, particularly in places such as Cornwall. The Committee on Climate Change recommendations set out the need for massive upskilling to give people the skills needed for research and innovation, so that we can decarbonise our environment and our economy and ensure that people are healthier, live in healthier homes and have better opportunities. Now is the right time to have this debate and create a vibrant, low-carbon economy with better health, better skills and better pay.

In our jobs and growth group we have looked at skills. Even with European funding, the real problem in Cornwall is that many communities and young people never feel they have the opportunity or the learning that they need.

[Alex Cunningham (Stockton North) (Lab)]

The hon. Gentleman has talked about young people, and I am sure he will share my anxiety about the future of the youth employment initiative, which is EU-funded. It helps to provide opportunities to young people who are not in employment, education or training. The Tees valley is one area that benefits from it at the moment. Does he share my anxiety about the fact that there is no clarity from the Government about the future of that funding?

[Derek Thomas]

I welcome that intervention, but I will continue with my point about the real problem for us in west Cornwall. Quite often, there are two options in Cornwall. One is to go away to university, which is much easier now because we have a university in Cornwall, in the constituency of my hon. Friend the Member for Truro and Falmouth (Sarah Newton). However, the vast majority of our young people leave Cornwall, in what we describe as a brain drain. The opportunities for those who are left behind are very limited. There is a real need to look at apprenticeships and how further education can be properly funded for the skills and jobs that we need for the future. I believe that Cornwall has a real opportunity to share in that, exploit it and thrive, and I believe that shared prosperity is the solution.

Our group has looked at the role of high streets, and Cornwall Council is running an inquiry into how to make high streets work. They are no longer just about shops; they are about an experience, and where people live. They are places to get support and advice, and they even include workplaces other than shops. Lots of work is being done in communities in all our constituencies in Cornwall on understanding high streets. That is not just so that we can say, “Government, give us money so we can spend it,” but because we want support to make local economies low carbon. We have great talent; now, we need great opportunity.

Unhealthy Housing: Cost to the NHS

Derek Thomas Excerpts

Tuesday 26th February 2019 Westminster Hall

[Derek Thomas (St Ives) (Con)]

I pay credit to the hon. Member for Strangford (Jim Shannon) for securing the debate and for all the work he does with the all-party parliamentary group, from which I have enjoyed gaining expertise and knowledge. The cost of unhealthy housing to the NHS is a fantastic subject to tackle, especially in the middle of winter. We have not had a particularly cold spell yet—that is still around the corner—but nearly a year ago, a few days of significant snow cut off my village, which is extremely rare in the warm south-west.

It is great to speak on this important and urgent issue, but it is not new for me. When I pitched up as a new MP, all sorts of people came to tell me how good or bad my constituency was. I met a representative of the Association for the Conservation of Energy—ACE—who came to see me and said that my constituency had the leakiest homes in England, and potentially in Europe, based on off-grid and poor-quality buildings. We were not good at cavity walls 30 or 40 years ago—perhaps longer. I took that seriously because I was concerned about the issue of fuel poverty—we are a low-wage area—and about people’s health.

Cornwall Council and others, including my colleagues and me, have worked together to find the money to improve our homes. As of January, we have improved 1,085 homes and taken them out of fuel poverty altogether by securing various bits of money from all sorts of funds, including social landlords. As I say, it is an urgent issue. In particular, I credit Anthony Ball and his public health team at Cornwall Council for leading on the issue and for their great expertise on how to resolve the challenge.

From the figures that the council has provided, it is estimated that 210 people in Cornwall die due to the cold every year; that poor health resulting from a lack of warm homes affects 31,000 households—74,000 people—in a population of just under half a million; and that a winter death in Cornwall is preceded by eight emergency admissions to our hospitals, which are already under pressure, and 30 social care visits. As is true elsewhere in the country, delivering social care in Cornwall is a challenge, because it is a large but sparsely populated geographical area with a lack of people working in it and a distance to travel between appointments.

If there are potentially 30 unnecessary visits for each individual because of cold homes, that puts pressure on an already strained system. It is estimated that that costs the health service in Cornwall and the Isles of Scilly £13 million each year, which could go to areas of health and social care where we would much rather spend our money, instead of collecting people because they are living in poor homes that can be fixed.

I have long campaigned on unhealthy homes and the need to fix them. As a newly elected MP, one of my early debates was about fuel poverty, in which I made similar points to those that other Members and I hope to make today. The previous Chancellor set aside £100 billion for infrastructure spending. I argued then, and I would still love the Minister to take it forward, that it would cost only £2 billion of that to improve UK homes and raise their energy performance certificate rating to C—if we trust those ratings. That would be £2 billion well spent, because of the saving to the economy, the saving of people’s lives, and the improvement in attainment and economic productivity.

The recently published 10-year plan for the NHS is a welcome vision that sets out how the NHS needs to adapt over 10 years to meet current and changing demands; how we need to change the way we treat people and bring healthcare to people where they need it; and how to help people to manage their conditions. We are waiting for the Green Paper on social care, which we understand will come out in April. If we do not include one of the driving factors for why people end up in health and social care in the first place, however, that 10-year plan will be weakened or compromised.

That is why the debate is important, because now is the time to look across Government. If we want to deliver the NHS that we are all committed to and want to see in 10 years’ time—if not much before—and if we want to make social care work for everyone who needs it, we need to look at how we improve our homes and the health and wellbeing of everybody in the country who lives in a home that is not up to the job. I call on the Minister to look at the issue across Departments to see what we can do to deliver a more sustainable health and social care service partly by improving the homes we live in.

In the 21st century, in the fifth-richest country in the world, we should have healthy homes that we can be proud of. We cannot tolerate the situation for much longer. I will give an example of how that could be achieved, because just to say, “There is £2 billion. Go and sort your homes out,” will be a challenge. Money will be wasted and it will not be delivered in the way we would like or expect.

My suggestion, as it was when I first spoke on the issue, is to use Cornwall and the Isles of Scilly as a pilot. Cornwall Council and the Council of the Isles of Scilly are well placed because they know the problem, the homes that need fixing and the skilled workforce in the area. There is also a challenge in Cornwall to drive up skills, to give people the opportunities they need and to drive up wages, which it could help with.

The pilot would improve all the homes in Cornwall and the Isles of Scilly, which are the leakiest in the country. It would be a good way for the Government to see if such a scheme works and how it works, and how we could improve homes, create skilled jobs and improve attainment in children. It is well proven that children learn better and are healthier in warm homes; it is not just older people who suffer as a result of leaky homes and fuel poverty.

That work could also reduce the carbon footprint, which is important. Cornwall Council recently voted to consider how it could make Cornwall carbon free in the next 30 years and achieve a net zero emissions target. Reducing the leaky nature of our homes and improving the carbon footprint with well-insulated homes is a significant part of that. As I said, improving homes will also reduce the demand on health and social care services.

I am grateful for the opportunity to speak. This urgent issue presents a real challenge and I would welcome the opportunity for Cornwall and the Isles of Scilly to demonstrate to the rest of the country how it can be tackled.

Economic Growth: South-west

Derek Thomas Excerpts

Tuesday 5th February 2019 Westminster Hall

[Derek Thomas (St Ives) (Con)]

I am glad to follow the hon. Member for Plymouth, Sutton and Devonport (Luke Pollard). I also give credit to my hon. Friend the Member for South West Devon (Sir Gary Streeter) for having secured this debate and for his inspiring leadership, driving us to continue to bang the drum for the great south-west.

To take Members a few hundred miles further west, if that is okay, my constituency—which covers St Ives, west Cornwall and the Isles of Scilly—and the Duchy of Cornwall more generally are a brilliant and unique part of the UK, with a thriving culture that contributes much to the UK as a whole. Our tourism industry is a great success, which increasingly attracts visitors from across the globe—so many, in fact, that Visit Cornwall decided to turn them away in the summer, and made that point to the media.

We also have a proud story to tell about supporting and hosting renewable energy platforms and about environmental protections, but the fact remains that distinct economic challenges exist that hold us back from achieving our potential. Handouts are not needed, but Government policy, support and investment are needed to create a thriving and prosperous economy that leaves no one behind in Cornwall. I want to use the opportunity today to flag up the moral case for ensuring that Cornwall and other parts of the south-west receive adequate and appropriate support and funding from Whitehall. Gross value added per head is £17,634, which is 35% below the UK average. Wages are 20% lower than in the rest of the UK. House prices do not reflect that reduced income and are roughly the same as in the rest of the UK. One can imagine that for a family starting out and working on the average wage, the cost of getting a home and having a stake in their area is prohibitive.

Cornwall and the Isles of Scilly is the only local enterprise partnership area in the whole of England that is currently classified as less developed. I am grateful for the opportunity to speak in this debate to remind the House that work and effort is needed to change Cornwall’s economic development. The Government have made it clear that a shared prosperity fund will replace European funding streams once we have left the EU. In response to that opportunity, I set up a jobs and growth roundtable bringing together business owners, Cornwall Council, local elected representatives and members of the voluntary sector. We meet every quarter to focus on how shared prosperity funds could address the problem of low wages and sustained deprivation in west Cornwall. That is something that European funds have not successfully addressed.

I was grateful that the Chief Secretary to the Treasury attended our inaugural jobs and growth roundtable and was clearly engaged in the issues we raised. She asked us to set out the barriers to growth in west Cornwall. In response, we said that there were many barriers in the way of ambitious young people seeking a good career in west Cornwall. That results in a skills drain, with young people moving out of the area to find a career. The colleges confirm that the biggest challenge in west Cornwall is providing young people with good employment opportunities. The Government must support employment and apprenticeships and stop messing around with further education curriculums, which are currently not fit for purpose for small companies that are keen to take on apprentices.

The Isles of Scilly Steamship Company, a significant employer in the constituency, state that its biggest issue is attracting skilled staff, including marine crew and aircraft engineers. Other companies say they have to send staff to other parts of the country for training. Goonhilly Satellite Earth Station is having similar problems, and it has to recruit out of county and find means to attract people to Cornwall.

Despite changes to business rates, the charge is having a crippling effect on our town centres. Public transport is not suitable for getting to and from work, and our road and rail network can no longer meet current demand. There has been a historic lack of investment in west Cornwall. Much will be said in this debate about the need for investment in infrastructure, and that is true of the whole south-west. The Minister will be acutely aware of the various priorities I have raised repeatedly in this place. In addition, we absolutely need to smash the problem of low wages, and we must invest in people. Investment is needed in providing skilled apprenticeships and training schemes to support employment, ambition and the futures of our children and grandchildren. Investment is needed to make Cornwall a more attractive economic hub. Transport infrastructure is central to that.

There is no denying that Cornwall is a wonderful place to live, with beautiful scenery and the best culture in the land, but we must ensure our economy matches the thriving local culture. I was delighted to support the launch of the “Great South West” initiative last year. Cornwall’s future prosperity cannot be addressed in isolation, and Cornwall is an enthusiastic partner of the “Great South West” initiative. I echo its calls to promote the south-west’s opportunities, to develop shared propositions to attract investment and boost productivity, to work on areas of common interest, and to drive opportunities through the work of local leaders, businesses, schools and authorities.

In conclusion, one area offers great opportunities, skilled jobs and a sustainable future—Cornwall has a specific tale to share in the area—and that is our response to global warming, and the need to care for our environment and leave to our children a planet that is in better shape than we found it. There is a renewed ambition in Cornwall to reduce harmful emissions and increase renewable energy supplies. Cornwall is working together to set up a clear plan on how that can be delivered by 2030. I would like Government funding to dramatically improve our fuel-poor homes, which are some of the leakiest in Europe; to empower greater development and installation of all forms of renewable energy; and to use the latest smart technology to improve the A30. All that will ensure our houses are warmer and cheaper to keep, our air is cleaner, our energy is cheaper and our harmful imprint on Earth is reduced. That is a sure way to create jobs, increase wages, reduce the cost of living and create prosperity.

Budget Resolutions

Derek Thomas Excerpts

1st reading: House of Commons
Thursday 1st November 2018 Commons Chamber

[Derek Thomas (St Ives) (Con)]

The Budget contains many good measures for families in my constituency. I am grateful to be able to take part in this important debate, and I have listened to much of what has been said. I will try not to add to what has already been said but instead identify issues that have not yet been covered.

Families rightly want to feel secure in their homes, and I have three asks that I think could help. The first relates to the use of existing stock. It is still the case, even in west Cornwall, that many properties are not lived in. They are not second homes or holiday lets; they are literally abandoned. I would like the Department and the Chancellor to consider ways of giving councils the incentive to refurbish them to provide homes for local families and give them security of tenure.

Secondly, just before they lost the election in 2010, the Labour Government introduced the infrastructure levy on house builders. That has had a devastating effect, discouraging builders, particularly small builders, who want to provide housing. For local families, it adds a huge amount of money to the sale of a house. It would therefore be good if the Budget were able to scrap that charge imposed on both house buyers and the sector.

Finally on housing, many of my constituents appreciate the move across to universal credit from the previous set of benefits, but those who struggle to manage their budget would prefer their rent to be paid directly to the landlord. Will the Chancellor look at how that could be more easily done when it is in the interests of the tenants themselves?

Families live in communities, and parish and town councils run our local communities. The scrapping of business rates on public toilets, which Cornish MPs have fought for since 2015 when I was first elected, will be of enormous benefit to my local parish and town councils. In my constituency alone that measure will be worth £120,000, which can now be spent on local services that will benefit families and other people living in our parish and town council areas. I will play my part in making sure that that legislation goes through.

I have been calling for the rate cut for small businesses for some time, and I am grateful for the positive impact that it will have on towns in my constituency. My right hon. Friend the Member for Putney (Justine Greening) covered that issue very well, so I will not say any more about it.

I was disappointed in the Budget in one respect. It is right that families have access to good sporting facilities, so I was hoping to hear something about the stadium for Cornwall. For 10 years in Cornwall, we have worked to try to put together a scheme worthy of Government support. I believe I did everything I could, along with all Cornish MPs and others, to convince the Chancellor to provide the £3 million we need to give us a 6,000-seater stadium or the £5 million to give us a 10,000-seater stadium. Cornwall does not have a centre where sports can be played easily. Part of the proposal is to extend outreach to every corner of the county, improving the health and wellbeing of children and their families. What more can my colleagues and I do, with the people of Cornwall, to convince the Government that the money is needed and deserved, and that the scheme provides value for money? It could be that, among all the other priorities, the stadium for Cornwall slipped the attention of the Chancellor. I am grateful for the opportunity to remind the Treasury team of this worthy cause and look forward to positive guidance on how we can achieve the stadium for Cornwall.

Council Tax and Second Homes

Derek Thomas Excerpts

Tuesday 26th June 2018 Commons Chamber

[Derek Thomas (St Ives) (Con)]

I appreciate the opportunity to raise this important issue for my constituents, for the whole community in Cornwall and, I am sure, for many tourist areas around the country. I am a firm believer that taxes should be simple and fair and that they should benefit the local community, so my overriding priority in securing a debate on council tax is to ensure that it is as easy as possible for local authorities to fund and provide homes for local families.

Earlier this year, I received a petition about the need for more homes in west Cornwall. I subsequently met the campaigners to identify ways of resolving the situation, because local Cornish families are finding it increasingly difficult to find a home that they can afford to live in. This is a significant challenge for my constituents, and it is the biggest issue in my casework and my surgeries. The key message that came out of my conversations with the campaigners was that the Government need to look at the issue of holiday lets and second homes. Those homes were built for people to live in. They are used for perfectly reasonable purposes such as providing accommodation for people on holiday, but as a result, the owners can avoid paying council tax.

I am advised that 8,808 houses in Cornwall are registered as businesses, and that 6,650 of them pay no council tax or business rates, as they claim small business rate relief. So, if I had a holiday let and I registered it as a business, I would be exempt from paying council tax and I could claim small business rate relief. I would then need to pay nothing at all on that property. That means that there are 6,650 properties on which council tax is not being collected. That represents a loss of income to local authorities, a loss to town and parish councils—which are increasingly being asked to take on responsibilities but finding it difficult to fund them—and a loss to our police. I can assure the House that the news that our frontline council services and our police are being deprived of income through a simple legal loophole is like a red rag to a bull.

[Steve Double (St Austell and Newquay) (Con)]

rose—

[Bob Stewart (Beckenham) (Con)]

rose—

[Derek Thomas]

I will give way first to my colleague from St Austell and Newquay.

[Steve Double]

I congratulate my hon. Friend on securing this debate. This is an issue that I have been campaigning on for some time. Those people who are avoiding making a contribution to local taxation are continuing to use the domestic refuse collection services, for example, so they are not only avoiding making a contribution but actually costing the council money. Does he agree that that makes the situation even worse?

[Derek Thomas]

That is a completely fair point, and I will be addressing it later. I have had meetings with people in St Ives town, where this has been a particular issue and where bins have been removed because the council has deemed them to have been abused by holiday let owners. This has resulted in residents who are paying council tax having nowhere to put their rubbish.

[Bob Stewart]

I was going to make exactly the same point, so I shall shut up and sit down.

[Derek Thomas]

I am quite impressed by that intervention. It was quite a thing to hear, and I am sure that it will go on public record and that people will refer to it in future.

I have raised this issue with the Chancellor of the Exchequer since I was elected in 2015. I have raised it with three separate Secretaries to the Treasury, and I raised it once again just a couple of weeks ago in a debate in Parliament. I have a simple ask: every property that has been built as a home should pay council tax. I argue that the Government should close this loophole, allowing the authority to collect the council tax charge to provide public service and enabling the Government to divert cash towards the provision of homes for local families.

I remember—I was a counsellor and a parliamentary candidate in St Ives at the time—when business rate relief was introduced. It was clearly done to support our high streets and, for many, it has had a significant benefit. However, I do not believe for a minute that that relief was ever intended to create a route to enable a homeowner to avoid paying council tax, or business rates when a property is used as a business. Do not get me wrong: I am well aware of the contribution that tourism makes to the economy of Cornwall and Scilly—to the local economy, through the jobs it provides and through all the contributions that allow our high streets to have a fighting chance of survival—and I recognise the role that holiday lets play in supporting the sector. I am not seeking to oppress the tourism sector but to install some fairness in the housing system and identify some much-needed cash that can be used to provide the homes that my constituents and constituents across Cornwall need.

[Scott Mann (North Cornwall) (Con)]

My hon. Friend is doing an exceptional job of talking about this issue, which is important for many of my constituents and his. Has he thought about how it might be implemented on the ground so that Cornwall Council and other local authorities can benefit for the personal benefit of the taxpayer?

[Derek Thomas]

That is why I believe that this is an opportunity for the Government to simplify council tax. If they know that every property built as a residential property is due for a council tax charge, surely that simplifies it. What the Government then decide to do about whether the properties are registered for business rates or not should be left to someone far brighter than I am. I am glad that I have two Cornish colleagues in the Chamber and that other Cornish colleagues support this campaign—

[Bob Stewart]

Not just Cornwall—

--- Later in debate ---

[Derek Thomas]

No, not just Cornwall, but we work closely together as a team, fighting for Cornwall in all sorts of ways. I am proud to be in a county where the six MPs work so closely together on such important issues, helping us to maintain good local communities and a fair society.

I am also asking the Government to see what powers local authorities can be given to collect an additional council tax premium of up to an additional 100% from second homes that would be ring-fenced for investment in local housing stock. These powers are already available to authorities for empty homes and it may be sensible to extend them to second home owners given the pressures on authorities to provide housing for local families. If the money is collected from second home owners and used to build homes for local families, that would do a great deal to create harmony and unity in our communities.

I know from the second home owners who live near me—down the lane on which I live, three of the nine properties are owned by them—that they buy properties in Cornwall because they love the communities, want to contribute to those communities and want to be part of the life there while they are on a break. I know that they want good public services, so I do not believe for a minute that they would object to contributing more if the Government were to allow local authorities to do that in a sensible and proactive way.

Earlier this year, I met the then Secretary of State for Communities and Local Government with the Council of the Isles of Scilly, where there is a real problem with second homes—195 properties in a community of just 2,200 people are locked up and often visited for only a few weeks a year. That has a depressing effect on the housing market, so when the council looks to create skilled jobs and attract nurses and people to work in schools and public services, housing is not available for them. The council has asked to be able to increase council tax on second homes by much more than 100% to free up the property market and start making houses available for the people who are needed to work on the islands.

[Bob Stewart]

For the vast majority of the year, perhaps six months, holiday lets are empty. Surely, as things stand, council tax can be put on the properties when they are empty.

[Derek Thomas]

As the rules stand, if a property is advertised for let for a certain number of weeks a year, it can be registered as a business and exempted from council tax and business rates. It is not necessarily required for people to be in the building during that time, as long as it is advertised as available for let. My hon. Friend is right, but I do not want to complicate the issue further. Simply saying that council tax is applicable to every house built for residential purposes would reduce many of the headaches that people might have at the moment.

The other additional benefit of applying council tax to every property is that communities like Steve and Mousehole. [Laughter.] I say “Steve” because of your point earlier. Sorry, not your point, Mr Speaker—although it was a good point you made—but the point made by my hon. Friend the Member for St Austell and Newquay (Steve Double).

The other additional benefit of applying council tax to every property is that communities like St Ives and Mousehole, which have a large number of holiday lets, could benefit from simplified and inclusive waste collection. Currently, because of the concern that the users of second homes in places like St Ives are abusing the system and using the bins provided for genuine local residents who pay council tax, Cornwall Council has removed some of the bins and is refusing to collect some of the rubbish.

Recycling, refuse and how we look after waste is a big issue in St Ives, and I have a big meeting on Friday to identify the issues. The local community will put forward a plan and I will work with Cornwall Council to deliver it. I have been working on the situation for three years, and bins that were available for residents who pay council tax have been taken away because it was deemed that they were being abused by people who own holiday lets and local restaurateurs, which has caused real hardship for elderly people. In parts of St Ives, and in other parts of my constituency where holiday lets are numerous, the people who are left are often older people who are less mobile, and they are having real difficulties in getting rid of their rubbish.

[Jim Shannon (Strangford) (DUP)]

I can well understand the hon. Gentleman’s concern, but doubling the tax on people’s second homes will impact on the attraction of second homes in such areas. Does he agree that much more thought is needed before implementing the draconian step of doubling council tax? That could be the death knell for the holiday industry in one area while opening up interest in other areas that do not introduce such a tax, like my constituency of Strangford.

[Derek Thomas]

I clarify that I am talking about second homes that are not available for let. There are properties where I live that are owned by people who might live not far from here in Westminster and who go to Cornwall for a few weeks a year as a holiday. That is absolutely fine, and they choose to contribute a great deal to the local community, but what I am proposing is that the Government look at giving the council powers to increase tax if it so chooses, if doing so would be beneficial to the area and if it would deliver homes for local families. If local authorities believe such a power would have no benefit to their area, they would hopefully choose not to apply it.

[Jim Shannon]

What I am saying is that there will be differences of opinion on those who buy second homes for their own use and who do not rent them out. Does the hon. Gentleman feel that one council could implement the tax while other councils do not? How will that work?

[Derek Thomas]

That is a fair point, because we would be dispersing the problem. I completely accept that point, and it is not something I have considered a great deal. In my constituency and across Cornwall, we are fairly sea-locked, so there would not be great competition from neighbouring counties. There is a particular issue for us in Cornwall, because once the houses are gone, they are gone and it is not easy to get a property nearby. The hon. Gentleman makes a fair point that needs thinking through properly.

At the moment, I am primarily asking the Government to consider applying council tax to every residential property. If every property paid council tax, every property would be entitled to the local authority’s refuse collection service. That would reduce the need to have several different companies providing the same service in a community such as St Ives, where the roads are tricky to navigate in the middle of winter, let alone in summer, when lot of tourists are around. As I said, I am holding a meeting in St Ives later this week to try to get to the bottom of this problem and to make sensible proposals for reducing the waste we have and dealing with the waste we produce. If we can apply council tax across the board and if properties—

--- Later in debate ---

Motion made, and Question proposed, That this House do now adjourn.—(David Rutley.)

[Derek Thomas]

If every property’s rubbish was collected at the same time by the refuse collection company, that would reduce vehicle movements and congestion in our tourist areas, which are often not built for large vehicles at the best of times.

In summary, I believe that asking for council tax to be paid on every property would provide a significant boost to funds which could be used to help to provide the extra housing a growing population so desperately needs and to ensure we have the services we need. One area has probably not been considered: we are concerned about our policing budgets and we have had many conversations in this place and in constituencies around the country about them. We have had many conversations about the support that local parish and town councils should have. If we were to apply council tax in the way I suggest, it would increase the funds available to provide these services to make our communities safer and help our towns and parishes provide the services we all want. I am sure that everybody concerned would welcome that opportunity. I thank Mr Speaker for giving me this opportunity to speak.

Street Homelessness

Derek Thomas Excerpts

Tuesday 24th April 2018 Westminster Hall

[Derek Thomas (St Ives) (Con)]

I am grateful to my hon. Friend the Member for Gravesham (Adam Holloway) for securing the debate.

In Penzance we have a problem, and across Cornwall two years ago we had the third highest level of rough sleeping in the country. When I ask people why, they say because it is the end of the line. People get on the train and get off when it stops in Penzance. There are rumours that local authorities buy people tickets to Penzance, but they are yet to be proved. I also know from personal experience about family breakdown, including instances when a new member of the family moves in and younger members feel they can no longer stay. Eviction for debt and so on has recently been a factor.

The problem is not new. In a previous job, many years ago, I worked for a local charity, and we supported homeless people. Long before food banks existed we set up help for them, providing food given by local people and tents and sleeping bags, as well as trying to get them better accommodation and support. Many years ago, under the Labour Government, there was a significant problem in Penzance, while I was on the district council. It was right that the council tried to address it, but unfortunately it caused extreme problems. The approach caused a lot of anxiety for those concerned and for the local communities, and cost several million pounds. The local authority just did not handle it correctly. I was concerned at the time for those who were homeless. It was right to help them, but things were poorly and ineffectively handled. That is why I am so encouraged by the efforts being made now; but we must proceed with caution.

Before I was married I invited a homeless man called Stan to come and live with me. It was quite funny as other people who came to the house were curious as to why there were two toothbrushes in the bathroom, and it started all sorts of rumours. What I learned was that more is needed than a roof over someone’s head, which I think is the point that has been made. In Penzance we have great services. Various meals are available throughout the day and there is support. All sorts of charities and other groups provide support, assistance and therapies.

Members on both sides of the House recognise that homelessness is a complex issue and can be solved only by everyone working together—including the police, local authority, voluntary sector, health and social care providers and landlords. It is true that house building must take place. We have not seen a significant amount of house building, and I am not yet aware of any scheme that is deliberately looking at how we can provide suitable housing for people who, as I have said, need more than just a roof over their head.

I will give three recent examples that have come into my casework folder of people who, as we have heard from my hon. Friend the Member for Gravesham, could have been helped earlier. There was one family whose business went bust; their house was tied to their business and they lost their business and their home. The council knew well in advance, but the day they left their business they had nowhere to go. More recently, there was the eviction of a tenant where there had been lots of work previously to pursue and achieve the eviction, but very little support, and she had nowhere to go on the day. There was also a young man I met recently who wanted to be close to his family and his children, but the only option available to him was at the other end of the county.

Those are examples of people who become homeless, rough sleepers or sofa surfers, yet none of those cases was a surprise. There was plenty of warning for all those concerned to have helped them. Excuses and reasons given to me included that the property had a section 106 agreement and it was not available for their situation. Another public sector organisation said, “This is not our responsibility.” Another said, “We offered him temporary accommodation,” but, as I have described, it was miles from home. An email I received yesterday described a hostel in Cornwall—it is a hostel for ex-service personnel, with eight beds in the room, mixed sex and miles from home. The individual is “terrified and cannot sleep”. There is no doubt in my mind that more can and should be done.

I am encouraged by the fact that we recognise the issue and that significant money and effort are being put into it. Cornwall Council is receiving £648,000 this year and £846,000 next year to address the issue. My colleagues and I will be asking how it intends to ensure the money goes where it is needed. I welcome the opportunity to debate this big and complex issue, which will not easily be resolved.