Oral Answers to Questions

Debate between John Glen and Siobhain McDonagh

Thursday 23rd November 2023 Commons Chamber

[The Minister for the Cabinet Office and Paymaster General (John Glen)]

There is an established regime in place for the declaration and management of private interests held by Ministers, as is set out in the ministerial code. Preliminary discussions have been held with the Foreign Secretary, in consultation with the independent adviser on Ministers’ interests, to ensure that all interests are managed appropriately.

[Siobhain McDonagh]

Since the Foreign Secretary was last in office, he has been working for a Chinese state enterprise that was sanctioned by the US Government and blacklisted for bribery by the World Bank. The Foreign Secretary was paid by the Chinese company to promote the building of a port in Sri Lanka, a country which has itself been accused of war crimes and where, since the end of the civil war in 2009, tens of thousands of disappeared people have still not been found. Does the Minister agree that the British people have the right to know when their Foreign Secretary has been employed by the Chinese Government?

[John Glen]

I do not recognise the hon. Lady’s characterisation of the Foreign Secretary’s employment history. What I would say is that there is a thorough process in place through the ministerial code whereby the independent adviser publishes statements on Ministers’ relevant interests. Yesterday, I met the independent adviser for the first time to speak in general terms about his role, and work is under way on the next list to include the relevant interests of newly appointed Ministers—I think there are about 18 of them. The Government’s position on China remains unchanged. We believe in engaging directly and robustly in the UK national interest.

Stamp Duty Land Tax (Temporary Relief) Bill

Debate between John Glen and Siobhain McDonagh

2nd reading & 2nd reading: House of Commons
Monday 13th July 2020 Commons Chamber

[John Glen]

I am grateful, as ever, for my hon. Friend’s intervention. Of course, he has enormous expertise in this sector. He is right to say that there is a threat given the changes in the profile of LTV mortgages that are being offered. We hope that that will return to more of the normal schedule that we would have seen pre-pandemic. We will be actively looking at this, and I am in conversations with the banks and building societies about it.

[Siobhain McDonagh (Mitcham and Morden) (Lab)]

Does the Minister agree that this is actually more than a threat for first-time buyers at the moment—it is a reality? First-time buyers are queuing online for websites of lenders in an effort to get the small number of 5% deposit mortgages. Providing more incentive to people who already own their own home or are part of the buy-to-let market effectively crowds out first-time buyers.

[John Glen]

I thank the hon. Lady for her point. I would look at it in terms of opening up the market, creating more churn and momentum that allows all participants to be able to get on the housing ladder.

The Government’s cutting stamp duty land tax in this way will mean that nine out of 10 people buying their main home will pay no stamp duty at all, and buyers can save up to £15,000. In my own constituency, the average family looking to buy a home worth £349,000 will go from paying £7,450 in stamp duty to absolutely nothing. Indeed, this Bill will take most properties outside of London and the south-east out of stamp duty entirely.

The Bill is the latest in a long line of measures from this Government designed to support current and prospective homeowners in this country. Historically, stamp duty has been charged at a single rate on the whole purchase price of a property, with different rates for different value bands. The same rate of tax was charged irrespective of the number of properties owned by the buyers. In 2014, the Government reformed stamp duty land tax on residential properties, cutting the tax for 98% of buyers who pay it, unless they are purchasing additional property. In 2015, the Government introduced the higher rates of SDLT, which apply on purchases of additional residential properties such as second homes and buy-to-let properties. Finally, in 2017, the Government introduced first-time buyers relief. This increased the price at which a property becomes liable to pay stamp duty, for first-time buyers, from £125,000 to £300,000, with a reduced rate between £300,000 and £500,000.

Together, these reforms have made the tax system fairer and more efficient. They have cut the cost of home ownership for first-time buyers, helping more than 500,000 families to secure a foot on the housing ladder. This Bill will cut the cost of home ownership further, at a time when personal finances are under considerable pressure. In doing so, it will inject new momentum into the property market, protecting thousands of jobs in both the construction industry and the wider economy.

This stamp duty cut is one of several measures in the Government’s plan for jobs that will benefit families and businesses across the country. From September, homeowners and landlords will be able to apply for a green homes grant of up to £5,000 to make their homes more energy efficient. For low-income households, we will go even further, with vouchers covering the full cost up to £10,000. This, too, will support local jobs, as well as reducing carbon emissions and cutting energy bills for hard-pressed families.