Local Government Finance

Debate between Kevin Hollinrake and Caroline Nokes

Wednesday 5th February 2025 Commons Chamber

[Kevin Hollinrake]

We all have different views on this matter. Many parts of my constituency are not wealthy and have deprivation that is not sufficiently catered for by some of the formulas. That is what we are concerned about. We are keen to see fairness across the board, so we will scrutinise Labour’s plans very carefully on that basis.

The Labour Budget promised a big increase in council spending and the return of the sector to sustainability through a comprehensive set of measures to support local authorities in England. As I said, the Government also promised multi-year settlements, and we support those intentions. However, most of the money provided to local councils under the settlement will be through council tax rises for working people. A number of the rises breach the 5% referendum limit principle. Referendums on council tax rises of up to 9.9% have been waived by the Secretary of State, so local people cannot have a say on these dramatic increases. That means that local residents in the Windsor and Maidenhead borough, Birmingham, Bradford and Newham all face increases of more than 5%. Birmingham is notable due to the mess that Labour made there, which Labour is now forcing residents to pay for, rather than taking responsibility. The Liberal Democrats are also raising council tax without allowing Windsor and Maidenhead borough and Somerset residents a say on how they feel about the increases.

Council tax rises make up the bulk of the settlement, and rather than Labour delivering on its claims that it would fairly fund local government, it is pushing the burden on to taxpayers. The Government have also increased that burden with their jobs tax, which will negatively increase costs on local government finance. Although they have provided £515 million to cover the direct costs of employer’s NI, the Local Government Association has estimated that the national insurance contribution hike will cost another £1.13 billion for increases being forced upon providers of outsourced services.

The costs of those outsourced services will inevitably increase, but the Government are providing no money to cover that. Councils and residents will have to pick up the bill. Council tax receipts in 2025-26 are forecast to be in the order of £50 billion, yet Labour’s nonsensical Chagos islands deal is rumoured to cost up to £18 billion. That is equivalent to a one-off £820 deduction from a typical council tax bill. Alternatively, it could have paid for a council tax freeze for the whole of this Parliament. As with all things, Labour is wasting taxpayers’ money rather than giving them a tax cut.

The settlement will make it more difficult for councils to deliver on residents’ priorities, be they social care or potholes, which I note Conservative councils have a better record of filling in. It is an undeniable fact that Labour and the Liberal Democrats deliver worse services and charge more. From Whitehall to town hall, under Labour, people pay more and get less.

[Madam Deputy Speaker (Caroline Nokes)]

I call the Chair of the Housing, Communities and Local Government Committee.

Non-Domestic Rating (Multipliers and Private Schools) Bill

Debate between Kevin Hollinrake and Caroline Nokes

Report stage
Wednesday 15th January 2025 Commons Chamber

[Kevin Hollinrake (Thirsk and Malton) (Con)]

I thank the Minister, and indeed my shadow Ministers, the other Opposition spokespeople and all parliamentarians who have helped with the passage of the Bill, as well as the Clerks and officials—not that I would like to see the Bill progress any further. Aristotle, in his book “Politics”, over 2,000 years ago—[Interruption.]

[Madam Deputy Speaker (Caroline Nokes)]

Order!

[Kevin Hollinrake]

Over 2,000 years ago, Aristotle talked about deviant government. Alongside tyranny, he placed democracy. He said the risk is that, sooner or later, a Government will come along who represent only their own interests and those of their supporters, and that that Government will pursue the politics of envy. Let us see who the Minister’s supporters are. They are not the 12.6 million pensioners in this country, if we judge by the winter fuel allowance; not the 89,500 farmers whose livelihoods will be damaged by the family farm tax; not the 5 million businesspeople who will be damaged by the changes to business property relief, who employ 14 million people and pay £200 billion a year in taxes; not those people who live in rural areas; and not the families of the 550,000 young people who are in private and independent education. According to the Institute for Fiscal Studies—this is not scaremongering —90,000 of them may go back into the state sector as a result of the Government’s choices.

The Government have the gall to say that the fact that business rates or VAT do not apply to school fees is a tax break. It is no more a tax break than there being no VAT on housing, children’s clothes or food. Those measures are there because we should encourage people to pursue education, particularly those who scrimp and save to send their children into private education.

What about businesses? Businesses are suffering on the back of the employer national insurance rise of £25 billion a year, and are worried about the future because of the withdrawal of business property relief and agricultural property relief. The reality is that this Bill means a cut in support for many of those whom the Minister said he seeks to protect—people who work in the retail, hospitality and leisure sectors. The 75% discount is down to 40%. That will mean a tangible difference for the average pub of £5,500 a year. That comes on top of the huge increases in employer national insurance. Some 250,000 businesses will be worse off to the tune of £925 million. That is the tax charge he is placing on those businesses he says he seeks to protect. If he is honest with them, those taxes will go up again in April 2026. That is the reality of the situation.

What promise did Labour make before the election? They said they would scrap business rates completely—another broken promise. In their manifesto, they said they would change the balance between high streets and the online giants. That is not what the Bill does. The Bill also taxes breweries, airports, football stadiums and bricks-and-mortar retailers such as John Lewis, Sainsbury’s and Morrisons. That is the reality behind the Government’s changes: not scrapping business rates, nothing on the online giants and big taxes on many businesses. This is the politics of envy. It is the tyranny of socialism, and that is why we will vote against the Bill.

Question put, That the Bill be now read the Third time.

Horizon: Compensation and Convictions

Debate between Kevin Hollinrake and Caroline Nokes

Monday 8th January 2024 Commons Chamber

[Kevin Hollinrake]

The hon. Member raises an important point. We have written to all the people with convictions, for example, to say, “Please come forward.” It is not about a lack of ability to identify individuals; a lot of it is about the confidence of those people to come forward after what they have been through. We hope that making it easier to overturn a conviction and easier to access compensation will encourage more people to come forward. As he said, people have been coming forward—people have come directly to me since the ITV programme was aired—so we think that what we are doing and have done is helping with that, but we certainly need to do more to convince people that coming forward is the right thing to do and that they can be confident of good treatment.

[Caroline Nokes (Romsey and Southampton North) (Con)]

Many people who were running sub-post office branches were not victims but were left demoralised by what they saw happening to colleagues and people across their network and quietly gave up what had been their living and, in some cases, their homes. Will the Minister indicate whether there will be support to enable those people to come forward, give their stories and ascertain whether they might also be eligible for compensation because they felt forced out by the lack of care shown by the Post Office?

[Kevin Hollinrake]

My right hon. Friend raises an interesting point. Certainly, the Horizon shortfall scheme should compensate anybody who was directly affected by the scandal—not just financially but through other, non-pecuniary issues they faced and suffered from. I am happy to take her point away and see what information we might have in that area.

Section 21 Evictions

Debate between Kevin Hollinrake and Caroline Nokes

Tuesday 25th October 2022 Westminster Hall

[Kevin Hollinrake]

That is an interesting point. The vast majority of people in the private rented sector are happy with the shorter-term nature of rented accommodation. I wish the hon. Member for Liverpool, Walton, would not shake his head and would listen to what I say. There is a cohort of people who want to live in rented accommodation permanently. They want it as their family home. I absolutely agree that the Government should provide accommodation for those people. The Government should invest in this much more, and provide long-term, affordable rented accommodation and social rented accommodation. That is definitely the Government’s job where there is market failure.

I concede that there are market failures for people who want to live in permanent rented accommodation. I am not against the Government stepping in and ensuring that can happen. However, if they step in, tell the private rented sector to ensure that, and set out the rules that apply to someone who wants to make an investment in the sector, the reality is that we will get a reduction in investment in the private rented sector, which will mean a reduction in supply, which will make it more difficult for the tenants on whose behalf Members are speaking. That is the reality of the situation. So, yes: we should make greater public investment in long-term rental accommodation to deal with this issue. However, we should not tell landlords, who invest their private money in the private rented sector, that they have to let their property for life, which is what the hon. Member for Liverpool, Walton is considering.

If the hon. Gentleman wants the private rented sector to do that, a way of dealing with the issue would be to offer incentives for that. We could look at capital gains tax, for example; perhaps people who are willing to rent their property for a much longer period—for five or 10 years, or maybe even for life—could get beneficial capital gains tax treatment. Alternatively, we could reverse some of the changes we made in the Finance (No. 2) Act 2015, in which we restricted mortgage interest in the private rented sector; that was pretty damaging for lots of landlords in the sector. We could say to landlords, “We are no longer limiting the way you can deduct interest against your annual rental income, as long as you’re willing to rent your property out for longer, or for life, to give security of tenure to those kinds of tenants.”

I will conclude very shortly, Ms Nokes. The other unintended consequence of what the hon. Gentleman proposes is that private rented sector landlords will prioritise the best tenants. They will not take a risk because of concerns about non-payment of rent. You are going to disadvantage the people you seek to protect through the measures that the Government are planning and that the Opposition—

[Caroline Nokes (in the Chair)]

Order. Not “you”—that would be me.

[Kevin Hollinrake]

I am ever so sorry. That is the first time I have done that in seven years in this place. What is being proposed will disadvantage the people the hon. Member for Liverpool, Walton, seeks to protect.

I am fully convinced the Government will push ahead with the proposals, and that the Opposition will double down on this if they ever get into Government. I am just saying that they should be careful what they wish for, because this would be very damaging for the people they seek to protect.

Oral Answers to Questions

Debate between Kevin Hollinrake and Caroline Nokes

Wednesday 11th October 2017 Commons Chamber

[Kevin Foster (Torbay) (Con)]

12. What plans he has to relocate civil service jobs to cities, towns and regions outside London.

[The Parliamentary Under-Secretary of State for the Cabinet Office (Caroline Nokes)]

The Government’s industrial strategy will help to create a more balanced economy by moving arm’s length public bodies out of London and the surrounding areas, and into clusters in the regions and devolved nations of the UK. Our hubs programme is also expected to save £1.78 billion over 20 years, as well as providing state of the art buildings from which civil servants can deliver world-class services to our citizens.

[Kevin Hollinrake]

I am delighted at the announcement of 6,000 more jobs at a Government hub in Leeds, but does the Minister agree that infrastructure spending is also critical to delivering greater prosperity for the north?

[Caroline Nokes]

The Leeds hub will be a catalyst for growth in the surrounding region. We continue to do more to connect our communities and drive productivity. The Chancellor recently announced a further £300 million investment for HS2 and £100 million for the road network—significant investments for the northern powerhouse. That will be crucial for driving growth and regeneration in the north and midlands.

Housing Benefits (18 to 21-year-olds)

Debate between Kevin Hollinrake and Caroline Nokes

Tuesday 7th March 2017 Commons Chamber

[Caroline Nokes]

This is not about the demonisation of young people; it is about encouraging young people to make sensible and rational choices about where they are going to live, whether or not they are in work.

[Kevin Hollinrake (Thirsk and Malton) (Con)]

As a parent of two children between 18 and 21, I would be appalled if I felt that they had left home to live a life on housing benefits while they still have a bed in my house. Will the Minister confirm that support will be made available for those who are vulnerable or have complex needs?

[Caroline Nokes]

I thank my hon. Friend for that, and absolutely yes. Those who cannot live with their parents and those in receipt of the main disability benefits will be exempt from this policy.