Oral Answers to Questions
Debate between Eddie Hughes and Michelle Donelan(10 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Michelle Donelan
I would like to correct the hon. Member. The decision on the public switched telephone network was made by business, because of the problems with the existing copper lines and the fact that that, too, poses significant challenges. What we have done is take proactive steps by convening industry to ensure that they are going further than their existing commitments, and we have involved the regulator at every step.
Eddie Hughes (Walsall North) (Con)
Rating (Property in Common Occupation) and Council Tax (Empty Dwellings) Bill
Debate between Eddie Hughes and Michelle DonelanMonday 23rd April 2018
(6 years, 6 months ago)
Commons ChamberRead Full debate Rating (Property in Common Occupation) and Council Tax (Empty Dwellings) Act 2018 View all Rating (Property in Common Occupation) and Council Tax (Empty Dwellings) Act 2018 Debates Read Hansard Text Read Debate Ministerial Extracts
Eddie Hughes
My hon. Friend makes a valid point, although there are occasional cases where people who appear to be homeless are not open to the good will and hospitality of neighbouring organisations. YMCA Birmingham was given £1 million to create new residential accommodation at its Erdington site, which was only about 20 or 30 metres away from a Tesco store. Some people used to turn up and beg outside that store, which was very bad for the credibility of the YMCA as an organisation seeking to home homeless people. Despite our best efforts, they would never be removed and come into our accommodation.
Let me return to the matter of how empty homes can be brought back into use. There is a block of flats on Henrietta Street in Birmingham that was owned by somebody who failed to develop it over a sustained period of time, but thanks to money through the empty homes programme—YMCA Birmingham was allocated a total of £890,000—we were able to bring those flats back into use. The block is now excellent accommodation for young people in Birmingham, on the edge of the Jewellery Quarter, which is quite a prestigious address these days. The units of accommodation are relatively small at approximately 25 to 30 square metres, so they are perhaps not palatial.
Michelle Donelan
Does my hon. Friend agree that the issue of empty properties—commercial and residential —exists not just in certain parts of the country, but all over the country? It is a particular problem in my constituency, which is actually quite rural.
Eddie Hughes
As I mentioned previously, there were 300,000 empty properties, so they were clearly spread broadly across the country.
Madam Deputy Speaker, if you will forgive me a small indulgence, I just want to mention some research. I would not normally refer to Lib Dem research but, according to a Guardian article in January this year, 11,000 properties in this country have been vacant for more than 10 years. Incredible! I can see the look on your face, Madam Deputy Speaker. Another 23,000 properties have been empty for five years. What are we doing as a society? How can we talk about this housing crisis when we have 11,000 properties that have been vacant for more than 10 years?
Eddie Hughes
My hon. Friend makes a valid point. It is important to remember that the Bill will give councils the flexibility to apply that council tax premium, which is currently at 50% and can be increased up to 100%. But I would imagine that some constituents might want to challenge councils that do not take the opportunity to apply the full 100% because, as he said, it will give them the opportunity to bring in more income. As the hon. Member for Bath (Wera Hobhouse) said, councils will then have money that might facilitate their bringing those 11,000 empty properties back into use.
Michelle Donelan
The bulk of empty properties are actually privately owned. A key reason behind that is that people are trying to increase the monetary value of the home by sitting on it, and avoiding the hassle and potential pitfalls that could happen if they rented it out. It is that issue, not council-owned properties, that we are trying to target with this Bill. Does my hon. Friend agree?
Eddie Hughes
My hon. Friend brings me to a point that I had neglected to cover so far: the flexibility that is allowed because we absolutely do not want to penalise people who have genuine reasons for a having a property empty for an extended period. Those people should fear nothing from this Bill. My understanding—I may be incorrect; if so, I am sure that hon. Members will correct me—is that the Bill would not apply, Madam Deputy Speaker, if you were serving in our armed forces overseas and your property was therefore left empty for an extended period. Similarly, should you unfortunately need to go into hospital or respite care, leaving your property vacant for a two-year period, there would be the flexibility to ensure that this measure was not applied.
Eddie Hughes
My hon. Friend has suggested an innovative solution to some elements of the housing crisis. However, we should bear it in mind that there is flexibility with regard to the application of the enhanced rate. Whereas councils can currently apply a premium of 50%, clause 2, which amends section 11 of the Local Government Finance Act 1992, introduces the flexibility for them to apply a premium of between 50% and 100%. That flexibility with regard to the interpretation and application of this law will allow some scope to cover the sorts of cases that he mentioned.
Michelle Donelan
Does my hon. Friend agree that it also offers councils the flexibility not to charge any premium at all? Because this is done on a case-by-case basis, if there is a particular circumstance where somebody has fallen on hard times, is struggling to renovate their property and has just cause to vacate it, the council can assess that. That is why it is so important that local councils can make these decisions and that this Government are supporting localism.
Eddie Hughes
That is the brilliance of the drafting of this Bill. Clearly, whoever was associated with that in any way, shape or form was insightful, intuitive and gifted. I am hoping that the Minister was involved in some way with the drafting of the Bill and will remember the praise that I have heaped on the people who were involved.