Transport and the Economy

Debate between Julian Sturdy and Mark Pawsey

Tuesday 28th February 2012 Commons Chamber

[Julian Sturdy]

Absolutely. Tourism is also a key element in York’s local economy and the congestion is having an impact on the tourism level in the city. Sadly, my local authority in York would rather tinker with small-scale schemes than take the difficult long-term decisions that will safeguard the city’s economic future. As I mentioned at the outset, we need a fearless transport strategy. We need a long-term approach to investment at a national level and implementation locally. The Government’s £3 billion of capital for local road projects outside London, to be spread over the next four years, is therefore a welcome starting point, but is that the sum part of a long-term strategy for our roads? The crux of road investment is long-term, joined-up thinking.

I shall now discuss another form of transport. We have to tackle aviation issues seriously, and we face two problems. Airport capacity in and around London is at breaking point. We should be enormously proud that our capital city has remained resilient over a number of years, maintaining its position as the best place in the world to do business. Although international politics and powers have changed, London has remained at the top table, with a positive knock-on effect for the rest of the UK. However, if we refuse to expand our capacity, we risk throwing away our the capital’s crown and, again, our economy, both nationally and locally, will suffer.

[Mark Pawsey (Rugby) (Con)]

Does my hon. Friend agree that some of the slack that exists in regional airports could be used to deal with the shortage of capacity at Heathrow? I am thinking, in particular, of Birmingham airport, which is just 90 miles away from Heathrow.

Empty Property Rates (SMEs)

Debate between Julian Sturdy and Mark Pawsey

Wednesday 11th January 2012 Westminster Hall

[Julian Sturdy]

I appreciate those comments. The BCA was also talking about returning to the threshold figure of the recessionary times of £18,000. Given the tough economic times that we face, those two policies would help the situation.

[Mark Pawsey (Rugby) (Con)]

On the exemption period, does my hon. Friend agree that six months is too short a period in which to find a new tenant? The commercial property market is difficult. Six months between one tenant leaving and the finding of a new tenant is insufficient to do the necessary marketing, to show people round and to get people into the accommodation. At the very least, the exemption period needs to be increased.

[Julian Sturdy]

I entirely agree with my hon. Friend. The six-month exemption period—indeed, it is only three months for retail premises, which is obviously even shorter—is incredibly burdensome for property owners. He is right that the short exemption period is difficult when marketing these properties and looking for new tenants.

We have to accept that there must be churn within the market. No one will ever say that we will get 100% of such properties filled up. Even in the best of times, we are perhaps talking about filling 80% to 85% of properties, and there must be that effective churn within the market to allow flexibility within businesses.

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[Julian Sturdy]

I entirely agree with my hon. Friend and that point is very well made. In fact, the whole hub of the argument is about fairness. People are completely prepared to pay tax on income earned, but this tax on empty properties could be seen as a tax on failure and it is just simply unfair.

Similarly, there is nothing fair about forcing entrepreneurs to consider selling, abandoning or even demolishing their premises because of the threat of excessive taxation. To penalise a property owner whose property falls vacant in recessionary times is not a prescription for economic recovery but a recipe for economic stagnation. Our stance on empty properties requires a fundamental review.

[Mark Pawsey]

rose—