Cities and Local Government Devolution [Lords] Bill

Debate between Gareth Thomas and Lord Wharton of Yarm

Wednesday 21st October 2015 Commons Chamber

[James Wharton]

The hon. Gentleman is articulate and persuasive, but he will not tempt me to elaborate further.

New clause 11, tabled by the hon. Member for Harrow West, provides for the devolution to London of the receipts from taxes on property. I know the Mayor’s ambitions for London and we have announced the local retention of business rates, but devolving taxes such as stamp duty to London could create a distortive effect. There would be a significant increase in administration costs for both the Greater London Authority and businesses that purchase properties both in and outside London. I have heard what the hon. Gentleman has said, and I will consider his comments further, but I do not want to give him the false expectation that they are likely to be reflected in the Bill or to make a commitment that I cannot fulfil at this time. He has, however, made his case very effectively.

[Mr Gareth Thomas]

I am grateful to the Minister for his smooth words. I gently suggest that his argument against the further devolution of property taxes as distortionary does not fit with his argument for devolving business rates, which will arguably be just as distortionary, as my hon. Friend the Member for North Durham (Mr Jones) said. There seems to be a slight lack of consistency in the Minister’s position, which may be because of what the Treasury has bequeathed him. I encourage him to go back to the Treasury and press it further before Report.

[James Wharton]

I hear the hon. Gentleman’s comments. The announcement that we will devolve business rates was made in the way it was exactly because we wanted to ensure that we talked to local government about how it should be done to make sure it works properly and effectively and meets our policy desires. To devolve certain taxes to just one area is a different proposition. He clearly supports it and argues for it effectively, but it does not have a place in this Bill at this time.

Amendment 1, which was tabled by the hon. Member for Nottingham North, clarifies that the persons who may be invited to attend an overview scrutiny committee meeting may include

“representatives of parish, neighbourhood, community and other councils in the area of the combined authority”.

I understand the hon. Gentleman’s intention and commend him for pursuing openness in the process, but the Bill already allows people to attend. To define them in a list risks the provision being narrowly interpreted, rather than broadly interpreted, which is what we want.