Finance Bill

Lindsay Hoyle Excerpts

Monday 1st July 2013 Commons Chamber

[Chris Evans]

When Conservative Members were talking about the Laffer curve, Ronald Reagan came to mind. For some reason, when the hon. Gentleman stood up, Ronald Reagan came to mind again, as I recalled him saying to Jimmy Carter in the 1980 election campaign, “There you go again.” The person sitting tonight at their kitchen table, worrying about paying the rent, the mortgage, the gas bill or the electric bill, and watching this debate—although given the time they will probably be watching “Pointless”—[Interruption.] I walked into that one. They might be watching ITV instead—

[Mr Deputy Speaker (Mr Lindsay Hoyle)]

Order. I think that is enough about television shows.

[Chris Evans]

I was just wondering what the man at the kitchen table was watching. I apologise, Mr Deputy Speaker. All we hear is the same old debate and the same charge that it is all the Labour Government’s fault, so let me challenge the hon. Member for Bedford (Richard Fuller).

--- Later in debate ---

[Geraint Davies]

I am grateful for my hon. Friend’s enormous generosity in giving way again. Is she aware—I am sure she is—that property prices in London have grown so much that some local authorities have greater asset value than the entirety of Wales? Therefore, the mansion tax is a sort of cap—

[Mr Deputy Speaker (Mr Lindsay Hoyle)]

Order. Mr Davies, you were right when you said that you have intervened a lot. I do not mind you intervening but please do not take up so much time that you are almost making a speech.

[Sheila Gilmore]

I was not aware of the figure to which my hon. Friend the Member for Swansea West (Geraint Davies) refers, but if that is the case, it is a fascinating reflection on the huge differences between different parts of the country. If we do not do something about that soon, we will regret it in the near future.

Labour Members are constantly berated about the fact that we—the previous Government—abolished the 10p tax rate. At the same time, the current Government do not seem that keen on reintroducing it. We are accused of changing our mind, but it now appears that the Government are changing theirs. When the 10p tax rate was abolished, they attempted to make great political capital out of the issue—fair enough; that is what politics is about—and they have done so since by saying that it was a bad thing for us to have done and should not have happened. Now we are talking about reintroducing a 10p tax rate, and suddenly that is a bad thing to do. For people in low-paid employment—of whom there are many—there are advantages in having a more graduated taxation system that enables them to build up disposable income as they go. As we know, disposable income has fallen for many households in this country, which is a serious matter.

Looking specifically at the new clause, I hope it is not unreasonable to suggest that we consider and study such a measure. It perhaps prompts the question of why the Government are so against it, because if they are sure that a study would show that it would not be practicable or successful, there is nothing much to lose. From what the Minister said during an intervention, it sounds as if the Government may have already done some work on the provision, and on that basis, it should not be so difficult. People in the country want to see whether the measure could be a feasible means of ensuring that those who have asset wealth pay their fair share.

--- Later in debate ---

[Mr Deputy Speaker (Mr Lindsay Hoyle)]

Order. I am sure that the hon. Lady must be getting to the point at which she links her remarks with the new clause. I am struggling to see the link at the moment.

[Sheila Gilmore]

The link is that some would argue that a mansion tax would be oppressive on people who may live in a house that is valued at more than £2 million, but have a very low income, and they should not be expected to find that payment. As has been suggested to my constituent and others, such people may wish to consider taking in a lodger, releasing some of their equity or downsizing. I suspect that downsizing with that type of property would be easy. I would hope, therefore, that such arguments would not be made against a mansion tax. I hope that the Government will support the new clause, because if their arguments are as strong as they say, they will be able to disprove our case very quickly.

--- Later in debate ---

[Chris Evans]

I, too, hope to see them in the Lobby, but I am sure that they will not be there. That is the wonderful thing about the Liberal Democrats: it is the only party that can support something—have the bare-faced cheek to stand up in favour of something—and then vote for the exact opposite in the Division Lobby. That is what the Liberal Democrats should remember: in the marginal seats that they need to hold on to, they will be judged on their priorities—[Interruption.] Does the hon. Member for Eastleigh want me to give way to him, or is he happy to listen? [Interruption.] Indeed, we do not usually hear from a Liberal Democrat.

The Liberal Democrats will be judged on their priorities, and their priorities have not been what they said they would be. They are not for the students; they are not for the elderly; they are not for the poorest paid in society: they are simply there to prop up this coalition Government. They are becoming nothing but voting fodder for this Tory Administration. I notice that the Tory Members were nodding when I said that. If any further proof were required about who is in the senior part of—

[Mr Deputy Speaker (Mr Lindsay Hoyle)]

Order. Mr Evans, I gave you a little leniency on the earlier new clause, but on this one, we have got so far off the mark that I do not know how to drag you back. I am worried about the time ticking away, and it would be better for the House if you spoke to the new clause. I am sure that that is exactly what you are going to do next.

[Chris Evans]

I have the Bill in my hand, Mr Deputy Speaker, and I am going to come to the relevant clause.

[Mr Deputy Speaker]

Having the clause in the hon. Gentleman’s hand is not necessarily helpful; it is what he says that matters more.

[Chris Evans]

I was just coming on to that point, Mr Deputy Speaker, I just needed time.

[Mr Deputy Speaker]

And you should speak to the Chair, too.

[Chris Evans]

I ask anybody who says that this mansion tax cannot be introduced to read clause 92, which relates to the annual tax on enveloped dwellings. Under the heading of “Charge to tax”, it states:

“A tax (called ‘annual tax on enveloped dwellings’) is to be charged in accordance with this Part…Tax charged in respect of the chargeable interest if on one or more days in a chargeable period…the interest is a single-dwelling interest and has a taxable value of more than £2 million, and…a company, partnership or collective investment scheme meets the ownership condition with respect to the interest.”

That seems very much like a mansion tax to me. Clause 97 goes on to state:

“The amount of tax charged for a chargeable period with respect to a single-dwelling interest is stated in subsection (2) or (3).”

A table then sets out the annual chargeable amounts, highlighting the taxable value of the interest on the relevant day. It shows that if the property is worth more than £2 million but not more than £5 million, it would raise £15,000; if it is worth more than £5 million but not more than £10 million, it would raise £35,000; if it is worth more than £10 million but not more than £20 million, it would raise £70,000; and if it is worth more than £20 million, it would bring in a whopping great £140,000. If that is not a step towards a mansion tax, I do not know what it is. But still—

[Mr Deputy Speaker]

Order. I can cope a little bit with this speech. The Liberals may well want to hear the hon. Gentleman, but he has to address the Chair. Constantly looking at the Liberal is not helpful for Mr Thornton, but it would be helpful for Mr Evans if he were looking at the Deputy Speaker. I am sure that the rest of his speech will be conducted through this Chair, rather than through the Opposition chair—much as Mr Leslie would provide him with advice, he really should speak to this Chair.

[Chris Evans]

I am sorry, Mr Deputy Speaker. Much as I think the Liberal Democrats believe that the world revolves around them—[Interruption.]