(7 years, 1 month ago)
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I do not disagree with the right hon. Gentleman’s sentiment, but I can assure him that we are working across government, across the Departments that he mentions, because we want a sustainable funding solution to support the extremely vulnerable groups we all want to see supported in our society.
I am grateful to the Minister for giving way, and I congratulate my hon. Friend the Member for Waveney on securing the debate and on his excellent opening remarks. Will the Minister confirm that he has read the report from Riverside, which was mentioned earlier, which builds on the Select Committees’ recommendations about a banded scheme and seems to solve the problem without it costing the Government extra money?
Indeed I have, and I have met Riverside and a whole host of providers in the sector, including last week at the Conservative party conference, where I was involved in a roundtable event held by Reform. Although there were not as many seats around the table as we have here, there was a waiting list, which demonstrates the importance of the issue and of the Government’s getting it right.
I would now like to pick up the points that my hon. Friend the Member for Waveney made. Both he and other Members mentioned the work done by Lord Best and my hon. Friend the Member for Gloucester (Richard Graham), and I have had sight of their proposal, which is about developing a bespoke supported housing allowance. I am most grateful for their recommendations and for the suggestion about maintaining funding from the welfare system and testing and developing a banding system to provide cost controls that reflect the costs of provision in a particular area and for a particular type of supported housing. That is something we are considering very carefully.
(7 years, 9 months ago)
Public Bill CommitteesI think I made it clear earlier that there is no disparity in the system in that example. Local authority-maintained schools are given a dedicated sum to pay their business rates. Academy schools do not get that sum because they are exempt from business rates. There is an implication, particularly in terms of when the new clause would come into force. The way in which the system currently operates is that at a spending review, when the spending decisions about need are determined in relation to a particular public service, the cost of the business rate is taken into account.
I am not absolutely certain of the hon. Gentleman’s intention in tabling the clause, but if, as is implied by what has been said today, the Opposition want to apply this more quickly than the next spending review, that would involve a cost for the Exchequer. That would have to be met either through increased borrowing or additional taxation. Of course, as we all know, the Labour party does not mind racking up a deficit or taxing the public for its spendthrift nature.
The Minister is absolutely right. The shadow Minister was saying exactly that: that the hospitals would be better off. That implies that the money is not going in and out; it is just not going out any more. The £360 million would have to be found from somewhere. Would the shadow Minister find it from increased borrowings or increased taxation? There are only two places it can come from.
That is a really good question and very pertinent in this context. It highlights one of the challenges we have with the Opposition. One party at the general election pledged significantly more money to the NHS than the other party. The Government are now putting an additional £10 billion into the NHS, while the Labour party committed to £1.5 billion extra for the NHS; that shows that the Labour party is raising a bit of a red herring, I think, to hide its embarrassment about not being willing to back the NHS as the Conservative Government have.
(7 years, 9 months ago)
Commons ChamberConsultation is always important. The two issues are interlinked. Many hospitals are situated in and around town centres, and that can cause all sorts of pressures. The measures in the Bill would have a beneficial effect if the local authorities used them positively. If authorities decide to lower charges, the number of people using local authority car parks may increase, which would then take pressure off other car parks.
Many residents live around town centres. If parking charges are not proportionate, people quite often park in the streets around a town centre and avoid using the car parks because it is quite easy to walk into the centre of town. That exacerbates problems for many people living in such areas. By definition, a town centre is a historic place so properties around it usually date from quite a while back—the end of the 19th century or the beginning of the 20th century—when nobody had a car. Those streets were not built for cars, so there is a lot of competition for parking among the residents alone. The last thing they want are councils that hike up parking charges without consultation, which would put more pressure on their streets and the parking arrangements in them. It is an important part of the Bill that we put in place a situation whereby councils consult.
Will the Minister confirm that the regulations will also cover coach parking? Coach parking charges were introduced in one of my market towns, Helmsley. That reduced the number of tourist coaches coming to the town, which is a renowned market town and a tourist destination. We then ran a campaign, and the local authority decided to remove the charges, which has helped tremendously to attract new visitors to the town. I would be interested to hear the Minister’s thoughts on whether coach parking charges are also covered.
My hon. Friend makes a good point and I could not agree more. We are looking for a symbiotic relationship between the local authority and businesses. There already is a close relationship. The local authority benefits from the success of businesses—retail or otherwise—in its town, but that conversation is sometimes not as comprehensive as it needs to be. The relationship sometimes lacks understanding. The provisions of this Bill about consultation when there is a change to car parking charges and the ability to lower car parking charges without going through a detailed process are why it is so important that we take the Bill through.
My town of Malton is another good example. Unusually, most of the shops, houses and car parks in the centre are owned by a family estate, the Fitzwilliam estate. It is in the estate’s interest for the centre to be a vibrant commercial environment, so, as well as investing heavily in the town and in improving the shops, it gave two hours of free parking in the town centre car parks. That has developed the fantastically vibrant commercial activity we see in Malton.
Malton has been tremendously successful and very clever. A guy called Tom Naylor-Leyland set out to develop a brand around Malton, which he calls Yorkshire’s food capital. The Malton food festival is a fantastic weekend, and hon. Members must consider coming—it is a wonderful weekend to attend. It is vibrant, with music and a beer festival. There is some of Yorkshire’s finest food, and Yorkshire is the finest place for food, as Members can tell. The food festival has been a wonderful success story, and the town has regenerated on the back of it. It has to be seen to be believed. There is a symbiotic relationship between the car park owners, the town centre owners and the businesses, with a deep understanding between the three.
A lot of coach parties come to see the wonders of Helmsley, a fantastic market town. Richard III, the last king of the house of York, had a connection with Helmsley castle, as well as with Richmond castle. As the Minister said earlier, Helmsley was successful in the British high street awards, winning best market town on the back of the fantastic efforts of the town’s traders and local authority. Coach parking charges were introduced in one of its car parks, which deterred coaches carrying 50 tourists from coming to the town. Local people went to the council and campaigned on that issue, and they got the parking charges removed, which brought the coach parties back to the town. That is a good example of how businesses and local authorities, working together, can have a positive effect and foster a deep understanding of some of the challenges of running small independent businesses.
Those are positive examples, but we have heard others. According to the Royal Automobile Club, £756 million was spent on charges and penalties for parking in car parks across the UK in 2016, which is up 9% on 2015 and up 34% on 2010. That can be a tax on shoppers, and it can also be a tax on businesses. Businesses are paying rates and want service from their council yet, as we have heard, they are seen as sitting ducks or golden geese, or as both at the same time. We should make sure that we look after those golden geese and not treat them as sitting ducks because, ultimately, shoppers and businesses will vote with their feet.
Does my hon. Friend think that local authorities that take the wrong approach are likely to cook their goose?
That is a very good point. It has been a fantastic debate. We have talked about some of the foul consequences of not having good parking policies in local towns. We did mention the Dog and Duck earlier—our local pub is called the Durham Ox. Members may ask, “Durham? In Yorkshire? Why is that?” It is because it has a connection with the Neville family, which is also linked to Richard III. It was a staging post on the way from Durham cathedral to York Minster.
In conclusion, what we need is a level playing field. We must always look after the interests of small business. We should not, in this House, worship at the altar of big business. We should absolutely put small business and independent retailers at the heart of everything we do. I absolutely support the provisions in this Bill, because that is exactly what it does.
(7 years, 10 months ago)
Commons ChamberThank you, Madam Deputy Speaker. Jones is a very popular name, although Marcus is perhaps less so. It is good to have a fellow Marcus in the House, and I am delighted by the point that he has raised. I do indeed recall the Laffer curve, albeit many years ago during my days of A-level economics. The Bill will set out a framework for local authorities to reduce the multiplier on the business rate and therefore reduce the tax rate. As he implied, that might well lead to businesses being attracted to a particular area, thereby creating additional revenue there.
Local authorities have made it clear that they want more stability and, as I mentioned to the Chairman of the Select Committee, they do not get that from the current system of annual discussions on local government funding. Councils have told us that they want longer-term arrangements, and 97% of English councils have signed up to our multi-year deal. The Bill will deliver that much-needed stability and certainty, amending the current local government finance settlement process and the related approach to the setting of council tax referendum principles. We will continue to protect local authorities from the impact of sudden reductions in income, and the Bill will provide a framework that will help councils to manage risk and ensure that they have better protection from the impact of successful appeals, so that they can focus on delivering the services that their residents and businesses need.
My hon. Friend talks about protecting local authorities from changes. I welcome his commitment to a fairer funding formula, but is he aware that nine of the 10 authorities with the highest spending power in the country are in London, yet nine of the 10 lowest council tax authorities are also in London? Does he agree that a fairer funding formula needs to take into account the cost drivers behind need in local areas and to be for local people, rather than simply taking into account what has gone before? Rather than being about regression, this needs to be about need and the cost of delivering the services.
My hon. Friend is certainly correct in saying that we need to take a significant look at how funding is provided across the system of local government. As I have pointed out on a recurring basis, the principles for the fair funding formula do not feature in the Bill, but they are an important consideration and we are certainly taking the issues that he has raised into account in the work that we are doing alongside the Bill. We are taking soundings from local government.
The Bill also includes a range of measures to cut business rates for small businesses and local amenities so that local communities can thrive. We will take a power, following the commitment in the Budget last year, for the Treasury to set the indexation rate for the business rate multiplier. This will allow us to change the multiplier from the current rate of RPI to the significantly lower CPI measure. We will change the rural rate relief to ensure that small businesses in rural areas receive the same level of business rate reliefs as those in urban areas. This is not only fairer; it will also make a real difference to many employers across the country.
We will provide a new relief for five years for the installation of new optical fibre, fulfilling an announcement made in last year’s autumn statement. To make central Government more responsive to changing business circumstances, the Bill streamlines the administrative process of including premises on the central rating list. We will also be introducing charitable and unoccupied property relief for premises on the central list, bringing them into line with those on local lists. Much to the amusement of hon. Members when the subject came up in Communities and Local Government questions last week, we are also providing a new discretionary relief for public toilets. Councils will be able to maintain these important facilities without having to spend quite so many pennies. This Government are committed to providing the right conditions for growth. A key function of the Bill is to provide local government with strengthened incentives for growing their business rates income and encouraging local businesses to set up and grow.
(9 years, 2 months ago)
Commons ChamberI hear what the hon. Lady says, but I think she should note that the spending power per dwelling in her constituency is £2,240, which is 7% above the national average. So Wirral is doing reasonably well in comparison with many other areas.
I am sure that Members on both sides of the House will welcome recent figures which show a 22% rise in the number of new home completions, but achieving the 200,000 homes per year that we need will require a revival of the small and medium-sized house builders whose number has been reduced by 75% over the last 30 years. What support can Ministers offer to ensure that that revival comes about?