Holiday and Second Homes Regulation: Cornwall and Isles of Scilly

Debate between Jayne Kirkham and Andrew George

Wednesday 23rd October 2024 Westminster Hall

[Andrew George]

That is absolutely the case. As a visitor to the Isles of Scilly, my hon. Friend knows that that is a significant problem, because people cannot commute to the Isles of Scilly to work. It is difficult to commute to work for businesses providing those kinds of jobs in many of the coastal areas around Cornwall, and many people find themselves living in very informal settings, including caravans, because nothing else is available to them.

I will rapidly run through some of the regulations concerned: council tax; small business rate relief; the furnished holiday lettings scheme; holiday business registration, which the last Government proposed, and the planning use class changes. First, on council tax, going back to the pre-history where this all originated, when the Conservatives originally introduced the council tax system—what they called the community charge—they introduced a 50% council tax discount for second homes, because they said second home owners were not using all the services and therefore should not have to pay for them. That was the justification back in the 1990s.

[Jayne Kirkham (Truro and Falmouth) (Lab/Co-op)]

The hon. Member mentioned some of the solutions. Would it not be a good idea to consider giving a suite of powers to a local authority so they could pick and choose which of those would suit that local authority and those particular circumstances?

Renewable Energy: Cornwall

Debate between Jayne Kirkham and Andrew George

Tuesday 22nd October 2024 Westminster Hall

[Jayne Kirkham]

The hon. Gentleman is quite correct. My point is that Cornwall has some catching up to do with other parts of the country, but I am aware that other parts of the UK are in the same situation.

The Secretaries of State for the Department for Energy Security and Net Zero and for the Department for Business and Trade visited my constituency and that of my neighbour, my hon. Friend the Member for Camborne and Redruth (Perran Moon), earlier this year, and met businesses with solutions in the marine, geo, tidal and wind spheres. The breadth of the innovation in Cornwall is huge. However, the sector needs investment along with the ambition and determination, and a long-term strategy from Government to make that vision a reality.

Under the previous Government, there was a de facto ban on onshore wind. Of planning applications for onshore wind turbines over 150 kW in Cornwall since January 2015, only one was successful in planning and has since become operational. I am very pleased that one of the first things this Government did was to end that ban on onshore wind. Community energy projects did not receive much support from the previous Government either. The rural community energy fund was only open from 2019 to 2022, and there were no new funding sources for urban community energy projects after that, except from local government.

[Andrew George (St Ives) (LD)]

I am grateful to the hon. Lady for giving way and for the case she is making today. I fully endorse everything she has said. She mentioned the previous Government’s effective ban on onshore wind: does she agree that the Conservative Government also scrapped sustainable homes regulations and other regulations, setting us back many years? We have a lot of time to make up. In Cornwall especially, there is significant enthusiasm to accelerate the pace so that we can become the green peninsula and be recognised for that throughout the UK.

[Jayne Kirkham]

I thank the hon. Member. That is true particularly around standards on homes, where our local solutions for ground source heating could have been made more of in the past and have obviously now been delayed for that reason.

The feed-in tariffs introduced by the previous Labour Government were reduced several times by the last Government and then finally ended in 2019. Despite that, the community energy sector is resilient and has continued to grow. In my constituency, Ladock won the low carbon communities challenge, and Low Carbon Ladock was given £500,000 under one of the last Governments, which it invested in solar panels on homes, biomass boilers, and ground-source and air-source heat systems. It has been able to put the profits into things for the community, such as safer school crossings, playing fields and more renewables.

The current state of play in Cornwall is that there are 104 wind turbines, 88 solar projects and two operational geothermal sites. Twenty-two projects have been granted planning permission in 2023-24 to date, including one geothermal, one onshore wind, eight battery and 12 solar photovoltaic projects. A further 22 projects have submitted planning applications in 2023-24, three of which are geothermal, four onshore wind, six battery and nine solar.

Housing: Cornwall and the Isles of Scilly

Debate between Jayne Kirkham and Andrew George

Monday 9th September 2024 Commons Chamber

[Jayne Kirkham]

I thank the hon. Member for his intervention. I will shortly move on to some of the ways in which we can deal with the proliferation of second homes and holiday lets, and address the imbalance.

I want to reinforce the point that the hon. Member for St Ives made about the tax loophole. I think £18 million is now lost in council tax because so many housing providers have taken advantage of the loophole whereby they can claim business grants and the zero rate of exemption, rather than pay council tax, if their houses are let out for 10 weeks of the year. As the hon. Member said, so much money was lost in business grants during covid. I think £170 million in business grants went to properties that were registered as holiday lets.

I want to mention my hon. Friend the Member for Plymouth Sutton and Devonport (Luke Pollard), who cannot speak in this debate. He has worked hard with us in Cornwall on the issue of protecting first homes, rather than second homes, and he has supported us, as I know that the same issue applies up in Devon. We have spoken with the Minister about potentially having a toolkit of measures that could be used to deal with issues relating to second homes and holiday lets. I know that our Government will introduce one of those measures: the licensing of holiday lets, hopefully with fees and safety checks on those lets, which is not done at the moment—some properties are not checked for fire safety, or for safety in any way. That is a massive loophole that needs to be dealt with.

The hon. Member for St Ives talked about planning requirements. The previous Government had a review on introducing a use class for holiday lets—but then did not do very much about it—so that is one possible measure. The default could be second home owners having to apply for a change of use if they flip their homes to holiday lets.

[Andrew George]

On the C5 category, and further to the excellent point that my hon. Friend the Member for North Cornwall (Ben Maguire) made, the last Government tinkered with this, announcing and reannouncing on many occasions a proposal to introduce a use class for holiday lets, but does the hon. Lady not agree that that would be far better if it applied to all non-permanent occupancy, whether second homes or holiday lets? Otherwise, there will continually be flipping from one to the other to avoid regulation.

[Jayne Kirkham]

I thank the hon. Member for that point. I wanted to talk about council tax in particular, because, strangely, one of the few things that the entire council agreed on—we have a Conservative council in Cornwall at the moment—was doubling the council tax on empty second homes. In fact, we wrote to the Secretary of State at the time to ask whether we could triple the council tax on second homes, as they do in Labour Wales—that was a very unusual thing to do. Of course, as has been discussed, this is about looking at closing the loophole so that the owners of the property cannot flip between business rates and council tax. That would mean an £18 million a year gain in council taxes.

I agree with the hon. Member that we should encourage co-operative and community housing in Cornwall. That is very popular, and if it was supported more, there would be a great deal more of it. In fact, our cabinet housing member in Cornwall has said that if every village built 10 homes, that would deal with the housing crisis completely. Discouraging hope value, particularly in certain parts of Cornwall, would be very helpful. I know that forcing developers to deliver their affordables rather than relying on the viability defence is part of the Government’s plans, because so often developers get to a point and say that they cannot afford to build the affordable houses that they promised. Another real problem is that the cost of building has shot up because the contractors in Cornwall have dropped in number and have become a great deal more expensive.