Duncan Baker
Main Page: Duncan Baker (Conservative - North Norfolk)Department Debates - View all Duncan Baker's debates with the HM Treasury
(2 weeks, 3 days ago)
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Peter Aldous (Waveney) (Con)
I beg to move,
That this House has considered the taxation of furnished holiday lettings.
It is a pleasure to serve with you in the Chair, Dame Siobhain. I welcome the Minister and other colleagues to their respective places.
This debate arises because of the changes announced in the Budget to the taxation of the furnished holiday letting—FHL—regime, which have already acquired the nom de plume “the staycation tax”. As I mentioned in the Budget debate on 12 March, I am concerned that the proposal could have unintended consequences.
I acknowledge the thinking behind the change, because there are areas of the country where local people are having great difficulty renting local properties, and it is possible—I will put it no more strongly than that—that holiday lettings might be contributing to that. In other areas across the UK, however, holiday lettings are not having such a negative impact, and they are a vital component of local economies all around our four nations. That is the case in the Waveney constituency, although I acknowledge—this may be where we have difficulties—that there are significant challenges for local people looking to rent a home in nearby Southwold, in the constituency of my right hon. Friend the Member for Suffolk Coastal (Dr Coffey).
Duncan Baker (North Norfolk) (Con)
I thank my hon. Friend for giving way on that point, which is a good one for North Norfolk, where there are clearly problems with housing supply. I put it to him that, in an area such as mine, which has a large number of second homes, the policy change may well lead to more homes coming on to the market to be snapped up by people who are buying them as second homes, making the situation even worse in picturesque places like North Norfolk.
Peter Aldous
My hon. Friend may have read my speech, because that is one of the issues that I will highlight, and I will mention some statistics that the Professional Association of Self-Caterers—PASC—kindly provided to me to make that point.