Lord Popat
Main Page: Lord Popat (Conservative - Life peer)
The Earl of Glasgow
Oh, did he? I did not know that. I think his sympathy was the same. On the surface, this seems perfectly rational but it ignores the reasons why so many of us carry on, year after year, struggling to hold on to the buildings we have probably inherited and in most cases learnt to love, while continuing to lose money every year. To own such a place is a privilege as well as a burden. Perhaps we feel we owe the struggle to ancestors who were struggling before us.
I think I am right in saying that no stately home in Britain that is open to the public actually makes a trading profit. The ones that are surviving do so only because the owner has other sources of income or can resort to selling a Titian or a Van Dyck every other year to fill the gap. Nearly all the historic buildings in private ownership are now open to the public but the income derived from them only helps defray the cost of keeping the house wind and watertight. On top of that, we must pay VAT on all structural improvements we make to the building, while our rich neighbour can build himself a brand new, comfortable, warm house completely VAT-free.
Now we hear that the Government intend to cap sideways loss relief, which was one of the few forms of tax relief to the beleaguered owners of historic houses. Then, as my noble friend Lord Lee has already said, we have the prospect of a mansion tax some time in the future. In this time of recession, many owners of historic houses are holding on to their homes only by a thread. Already some are having to face reality, forced on them by their banks.
The Earl of Glasgow
I am so sorry, do you want me to finish? In that case, I really have only one more thing to say. They will have to sell up and may have enough money to live a comfortable and worry-free life for ever after, but every time this happens, Britain is a poorer place and its attraction as a tourist destination is diminished. I ask the Government to take the concerns of historic house owners more seriously and consider concessions that will help to ensure their survival. Otherwise, someday soon even the rich ones will run out of Rembrandts to sell.