Finance Bill

Debate between Kit Malthouse and James Wild

Committee of the whole House
Wednesday 11th December 2024 Commons Chamber

[James Wild]

I do. This is just another example of the impact of the Bill. The impact assessments, such as they are, are incredibly thin and do not get into the detail of the measures and the complications that arise. They are, I would say, wholly inadequate. Under clauses 50 to 53, taxes on property purchases will, as the Minister said, go up by £310 million. Clauses 50 and 51 increase the rate for additional dwellings, such as buy-to-let and residential properties, from 3% to 5%. Nationwide estimates that that could bring extra costs of £4,000 on the purchase of a typical rental home. At least clause 52 ensures that if transactions have been substantially performed before the increases come in, no additional tax will be charged. Clause 53 amends the single rate on purchases by companies of dwellings for more than £500,000. Let us not forget that the Government have also chosen not to renew the nil-rate stamp duty threshold, which is currently £250,000 but will halve to £125,000—I do not think the Economic Secretary to the Treasury mentioned that.

As I said, experts have warned that the changes could have damaging effects on the rental market, making it less attractive to provide homes for private rent; rents could increase as a result of the limited supply. Every hon. Member will know from their constituency the huge demand for rental properties. According to Zoopla, on average around 21 people are chasing every property that is put up for rent. This tax will do nothing to encourage the supply of new, decent, rented housing.

[Kit Malthouse]

I hope that the shadow Minister shares my surprise at the Minister agreeing to pay the stamp duty retrospectively on her flat. Let us hope that the cheque makes its way to HMRC. When stamp duty reaches penal rates, it not only diverts people away from becoming landlords, but means they may operate differently. Is there not a strong possibility that we might see a large number of properties in places such as London owned by foreign corporations that are domiciled in other jurisdictions? Transfer of those properties could take place by transferring the corporation’s ownership in the Isle of Man or the Caymans or somewhere like that. That would mean that no stamp duty was payable at all on the transfer of the property. If that proliferated, we might find that large numbers of properties in the UK were owned by overseas entities, precisely because of the penal taxation here.

[James Wild]

My right hon. Friend makes an interesting point, and I bow to his knowledge of the situation in London, which is far greater than mine. Our new clauses are about reviewing the impact of the measure, partly so that if we saw such activity, which would go against the Government’s objectives and weaken the rental market, action could be taken. I hope that the Government will look at the evidence.

The Institute for Fiscal Studies has also criticised the change, stating:

“It again reduces transactions, increases again the bias in favour of owner occupation, and against renting, and at least part of the consequence will be to reduce the supply of rental housing and so increase rents.”

The National Residential Landlords Association has said that the tax changes in the Budget will make it less attractive to provide homes for private rent. It has warned that the measure will exacerbate the shortfall that Members will all be familiar with, and an assessment it commissioned a couple of years ago showed that increasing the rate to 5% could lead to the loss of more than 500,000 private rented homes over 10 years.

Heatwave Response

Debate between Kit Malthouse and James Wild

Wednesday 20th July 2022 Commons Chamber

[Kit Malthouse]

Being in your office is not being on the Front Bench. “Present but not involved” is, I believe, the claim from the Labour party. Before the right hon. Lady starts flinging stones and claiming that others are not doing their job, perhaps she should polish the glass in her house.

As for the involvement of the Prime Minister, he has been kept in touch with our work throughout, either through personal briefings from me or, last night and this morning, through briefings from the chair of the National Fire Chiefs Council and the Civil Contingencies Secretariat. As the right hon. Lady will, I am afraid, never know—because, I hope, she will never be in the Government—No. 10 and the Cabinet Office work together very closely when emergencies such as this arise and we need to establish plans and specific co-ordination work to ensure that we all understand what the picture is.

As I have said, the resilience plan is in progress and will be launched as soon as we have a new Administration in No. 10, but the right hon. Lady should not mistake the question of the publication of a national resilience plan for our not having any plans at all. As we saw in all manner of elements of the function of our country, the plans that we had in place worked well, the capacity that we stood up flexed, often brilliantly, to deal with an ever-changing situation, and, as I have said, most of the country got through it in good shape.

As for the appointment of a Minister for Resilience, I am afraid that we already have one: it is me. The job of the Chancellor of the Duchy of Lancaster is to look after the Civil Contingencies Secretariat, whose purpose is to deal specifically with issues of resilience and ensure that the system works, as it did—largely—yesterday.

[James Wild (North West Norfolk) (Con)]

Yesterday, wildfires in my constituency destroyed properties in Brancaster Staithe and also destroyed habitats and wildlife on the famous Wild Ken Hill estate, which is well known for hosting the BBC’s “Springwatch”. Let me put on record my constituents’ immense thanks to Norfolk Fire and Rescue Service and the other emergency services, as well as all those in the local community who helped to tackle those blazes in such awful circumstances: they will recover and rebuild those community areas. May I also ask the Minister to reinforce our commitment to achieving net zero so that we are better protected from climate change?

[Kit Malthouse]

My hon. Friend is right: Norfolk Fire and Rescue Service was severely tested yesterday. As I said earlier, it received mutual aid—from, I believe, as far afield as Merseyside—to help it in that battle, and I understand that those services will remain in situ to ensure that Norfolk Fire and Rescue Service can get back on its feet and deal with any event that may arise over the next few days. My hon. Friend is also right to suggest that, while we are very focused on the continuing elevated risk of wildfires, the long-term work enabling us not only to make our own contribution to the battle against climate change but to lead the world and challenge some of its biggest polluters to change their habits and their uses of fuel is critical, and I know that in Parliaments to come he will be at the forefront of that fight.

Extreme Heat Preparedness

Debate between Kit Malthouse and James Wild

Monday 18th July 2022 Commons Chamber

[Kit Malthouse]

The hon. Gentleman is right that we need to discuss—and we have been discussing in Cobra—the different circumstances faced in Scotland, where the school term has ended. There is the possibility—let us hope it does not occur—of accidental drowning or other incidents in water in hot weather. In England, where the schools are still open, we are keen for kids to be in school, because we generally think they are safer and better managed. As for the attendance of the Prime Minister at Cobra, I gently point out that the First Minister of the Scottish Government has not attended any of the Cobras.

[James Wild (North West Norfolk) (Con)]

People living in the Woottons, Castle Rising, Reffley and other parts of my constituency are rightly angry that they were left without water over the last 48 hours due to a burst main. I am grateful to those who worked through the night to fix the broken pipe. I am assured it will be finished later this afternoon. Based on that experience, does my right hon. Friend agree that for preparedness, it is vital that lessons are learnt by Anglian Water and other companies about the importance of open communication with the public and effective contingency plans to deliver water, particularly for vulnerable people?

[Kit Malthouse]

My hon. Friend is absolutely spot on. He will be reassured to know that colleagues in the Department for Environment, Food and Rural Affairs are in close touch with water companies, along with other partners, as they seek to get us through this particular 36 hours in good shape. He is quite right that where there is a problem with water supply, the easiest and best thing that can be done immediately is to communicate as much as possible, both when incidents happen and when the resolution and timeframe can be expected.