Oral Answers to Questions

Mary Robinson Excerpts

Tuesday 20th June 2023 Commons Chamber

[John Glen]

As the right hon. Gentleman knows, the farming support payment is ported to Scotland and operates on a different basis because it is devolved. We have committed to the sum of £2.4 billion for the duration of this Parliament and there are a number of schemes where the uptake is now increasing. I will continue to engage with my colleagues at DEFRA as those schemes develop further.

[Mary Robinson (Cheadle) (Con)]

The last bank in the entire constituency of Cheadle is about to close, so I was delighted when, following my interventions and direct conversations with LINK and appeals from the community, Bramhall was chosen to be LINK’s 100th banking hub recommendation. It will be invaluable for residents, but they will be left without banking services until it is open. Will the Minister look into bridging options in the interim, between the bank closing and the hub opening, or consider imposing requirements on banks to remain open until a hub is implemented?

[Andrew Griffith]

I would be happy to meet my hon. Friend to talk about the range of options. I am delighted about the solution proposed for Bramhall, in her constituency. Last week, I visited the new banking hub in the constituency of the hon. Member for Ealing Central and Acton (Dr Huq). I hope the whole House will wish the operator, Vip Varsani, well in that new endeavour.

Council Tax and Stamp Duty Alternatives

Mary Robinson Excerpts

Wednesday 17th May 2023 Westminster Hall

[Simon Fell (Barrow and Furness) (Con)]

I beg to move,

That this House has considered the matter of alternatives to Council Tax and Stamp Duty.

It is an honour to serve under your chairmanship, Mrs Harris; we have spent a lot of time together today. I will address the problems with our property taxes, discuss previously suggested remedies and present a solution that cuts taxes for 77% of households, generates a surplus and garners popular support. I do not intend to speak for long. A lot of colleagues are present, and I want to hear their views, and hear from the Front Benchers.

I realise that this area is fraught with danger. My first political memory is of the poll tax riots. We all know the consequences of trying to shake up the domestic rates system, but our current property taxes unfairly favour the wealthy, burden lower-value homes, discourage efficient housing use, under-tax larger properties and penalise homebuyers and sellers. Those issues affect us all, and all our constituencies. Property taxes fund our important local services and infrastructure. They impact owners and renters alike. When these taxes are ineffective, society suffers. Council tax and stamp duty are the main culprits.

Council tax was introduced three decades ago, in 1993, as a replacement for the unpopular community charge—the poll tax—but over time council tax has come to mirror many of the characteristics of its disliked predecessor. Surveys reveal public dissatisfaction with it. Only 29% of people consider council tax calculations fair, and 33% support maintaining the status quo. It places the greatest burden on the young, low earners and residents in less prosperous regions, while greatly benefiting wealthy homeowners and property investors. As property prices have soared, average incomes have stagnated. Research by the think-tank Onward shows that households spend between 0.8% and 4.5% of their income on council tax, with the highest payments in the north-east and south-west and the lowest in London. That is not the mark of a fair tax.

It is unfair for two reasons. First, it relies on outdated property valuations from almost 30 years ago, disregarding substantial house price growth, especially at the top end of the market. That means that those who benefited the most from house price rises have also been the biggest beneficiaries of the council tax system. Secondly, the band structure creates a disproportionate burden, as all properties within a band pay exactly the same amount. Consequently, lower-end properties in each band bear a higher proportionate tax load than high-end ones. Those flaws sever the link between council tax and property values. For example, a person in a £100,000 property pays roughly five times more tax relative to property value than someone in a £1 million property. Here in Westminster, a £30 million mansion pays £1,828 in council tax, while a family in a modest band D home in my constituency of Barrow and Furness pays £2,068. How in the world can that be fair?

Stamp duty, council tax’s accomplice, compounds the problem. While stamp duty is progressive, with higher rates for larger transactions, it still exacerbates the housing crisis by hindering efficient property use. Taxing transactions discourages homeowners from moving, whether it be an older couple downsizing or a growing family upsizing. The economic impact extends to job opportunities rejected due to moving costs. The Chancellor’s stamp duty holiday gave the UK property market a much-needed boost during the pandemic, but it also highlighted the merits of abolishing it altogether. Stamp duty hampers housing stock utilisation and residential mobility. Abolishing stamp duty on owner-occupied properties would unleash transactions and alleviate the housing crisis. Stamp duty should, however, remain in place for second home and non-residential buyers. In communities such as mine in Barrow and Furness and in Cumbria more widely, with villages being hollowed out by owners of second homes and holiday lets, that just makes sense.

Our country’s property taxes, unpopular and unfair, demand reform. Proposed remedies so far have included new council tax bands, local income tax, higher stamp duty thresholds and capital gains tax on primary homes, but they are just band-aids. Fundamental reform is required to address the inequity and inefficiency of our property taxes.

[Mary Robinson (Cheadle) (Con)]

I congratulate my hon. Friend on bringing forward this debate and on the eloquence of his speech; this is an important subject. Does he agree that one of the issues with council tax is that it is very much subject to the vagaries and the whims of whichever political party is in charge of the town hall? The Liberal Democrats in Stockport said that they wanted to freeze council tax, but when in power they put it up by 4.3%. That is an extra burden on taxpayers, and they do not necessarily get any value for that money.

[Simon Fell]

My hon. Friend makes an excellent point; I am sure that her electorate in Cheadle will have been listening hard. As I have said, only 33% support keeping council tax as it is. I am sure that that number is even lower in my constituency, where the administration has put up council tax by 3.9%. They are very unhappy with the current situation.

I and many of my colleagues support a move to a proportional property tax system, which is a methodology put forward by Fairer Share. It offers a concrete solution to replace the current convoluted band system with a simple flat tax of 0.48% of property value, and a 0.96% surcharge for second homes, empty homes and non-residential properties.

The benefits of moving to such a system would be significant. Some 18 million households would experience a tax reduction, with an average annual tax saving of £556 per household. Council tax payers outside central London would save £6.5 billion annually, providing a substantial boost to local communities and economies. Over 750,000 house buyers each year would be exempt from paying stamp duty and navigating exemption paperwork, simplifying and reducing the cost of house buying. Increased housing market activity would contribute to a £3.27 billion boost in GDP per year.

Some 1.4 million second homes, empty homes and undeveloped properties would finally contribute their fair share of tax, with the revenue used to lower bills for all taxpayers. That would incentivise owners to rent, sell or develop those properties and increase the housing supply. The calculation is that over the span of five years, 600,000 homes would be released. That includes 250,000 one and two-bedroom homes, which we know young people desperately need right now. The reform would generate an annual surplus of £5.4 billion through surcharges on second, empty and foreign-owned homes. I am sure the Treasury can think of inventive ways to spend that sort of money. Finally, shifting the tax burden to owners, aligning with broad international practice, would also ease administration for councils.

However, it is rare—perhaps impossible—to propose a wide-ranging reform where there are not winners and losers. After all, we are proposing to rebalance the property tax system based on principles of fairness. However, there are several mitigations that could be implemented to soften the blow of any change for those who might have to pay more. First, during the transition to a proportional property tax system, any rise in local property tax could be capped at £100 a month for primary residences. That transitional protection would cease upon sale, but buyers could benefit from the removal of punitive stamp duty. Secondly, a deferral mechanism could be put in place, allowing owners who are genuinely unable to pay to defer their tax payments with a modest interest charge. That deferred amount could be paid later on the sale of their property or home, avoiding any debt-related issues associated with council tax collection. Those measures aim to alleviate the impact on individuals while ensuring a fair and manageable transition to the new system.

Of course, there would also be impacts on local government finance. For councils that would generate less revenue from a proportional property tax compared with their current council tax, the shortfall would need to be supplemented through central Government grants or funds redistributed from councils generating higher PPT revenue. The arrangement is not new, and it is a long-standing feature of local government finance. It could be seamlessly incorporated into the proportional property tax system with the following principles.

First, the Government could fully recognise how the proportional property tax affects the revenue-raising capacity of councils when formulating the funding arrangements for local government. Secondly, councils could be granted new powers to independently generate additional revenue. Some councils may experience a decrease in revenue-raising capacity, but there are opportunities to introduce new revenue-raising powers, such as planning reforms and charging more for increased house construction. Again, that would be beneficial for counties such as Cumbria, Devon and Cornwall that are facing the accommodation and short-term let issues that I mentioned earlier.

Thirdly, while some councils might be sceptical about the transition to proportional property taxes because it could result in severe revenue-raising capacity issues, it is important to note that it is the residents in such areas who will benefit most from a decrease in property tax bills. Finally, the policy may also create incentives for companies and individuals to relocate to areas with lower proportional property tax rates, benefiting those communities and eventually increasing the revenues for local authorities. The measure rebalances the local economy and helps level up left-behind areas in one fell swoop.

If taken up, the measures would address the impact on local government finance by ensuring a balanced transition, exploring new revenue sources and considering the overall benefits and adjustments that can be made to accommodate different council circumstances. The reform is crucial for my constituents in Barrow and Furness. It will benefit 96% of the households there, with an average annual saving of £600. It is no surprise that 58% of voters in my constituency support the policy, with only 9% opposing it, according to polling by J.L. Partners. Nationally, voters overwhelmingly back the policy by a ratio of 3:1—in the north it is 9:1. A majority of voters in every constituency support the reform. I fundamentally believe that we should lead with policy and not follow polls, but those are numbers that are worth paying attention to.

Council tax and stamp duty are fundamentally flawed, and many of us recognise that. Politicians from most of the parties represented in this Chamber, along with think-tanks such as Bright Blue, the Institute for Fiscal Studies and the Institute for Public Policy Research, and campaign groups such as PricedOut, Generation Rent and the Intergenerational Foundation, have endorsed the transition to a proportional property tax. Prominent economists from respected publications, including the Financial Times, The Daily Telegraph, The Economist, and The Guardian have also endorsed the reform.

The policy would significantly increase the disposable income of individuals across the country, directly benefiting households and improving the quality of life in local communities. It would free up properties, encouraging efficient use, and, crucially, it is based on the principle of fairness. It represents a genuine and impactful stride towards levelling up and advancement for all. I look forward to listening to what my hon. Friends and colleagues have to say.

--- Later in debate ---

[Carolyn Harris (in the Chair)]

I call Mary Robinson.

[Mary Robinson (Cheadle) (Con)]

Thank you for calling me, Mrs Harris, but I was intending only to intervene in the debate, so I will leave the time for the other speakers.

[Carolyn Harris (in the Chair)]

Thank you very much. I call Chris Loder.

Economy Update

Mary Robinson Excerpts

Thursday 26th May 2022 Commons Chamber

[Rishi Sunak]

I do believe that the sector is important to our future, which is why it is being supported with a very significant tax incentive to invest with the super deduction, which we have said we will replace when it expires next spring with further support. Indeed, our energy-intensive industries benefit from around £2 billion of direct intervention with their energy bills.

[Mary Robinson (Cheadle) (Con)]

I welcome this statement from my right hon. Friend. In particular, I welcome the increase in the household support fund. This targeted intervention is exactly what people need. It will be going through the councils, which we have relied on in the past to distribute these funds, notably during the covid crisis. Will he have conversations with our councils to ensure that they have the resources they need for any extra work they need to do? Will he join me in thanking them in advance for the work that they will be doing on this?

[Rishi Sunak]

As a former local government Minister, I am very happy to join my hon. Friend in paying tribute to our councils for the fantastic work they did during covid and continue to do to support their residents, our constituents, through the challenges ahead. I am happy to tell her that we have a new burdens formula that compensates councils, when it is triggered, with the funding they need.

Better Jobs and a Fair Deal at Work

Mary Robinson Excerpts

Wednesday 12th May 2021 Commons Chamber

[Mary Robinson (Cheadle) (Con)]

In this Queen’s Speech, I am encouraged to see the Government rise to the challenge of setting out the blueprint for the economy that we aim to build after the pandemic, restoring our freedom and prosperity while embracing innovation and the big challenges of the future. It is especially important, in my view, that our national recovery goes hand in hand with addressing the socioeconomic, health and educational disparities across our country, and puts levelling up at the heart of the Government’s agenda.

The pandemic has highlighted the value that people give to place. In the past, the connection between London and the northern regions has been seen as a gateway for people to leave the north, but the pandemic has changed that wrong thinking and demonstrated that it is not the case. The Government’s commitment to legislating in this Session to provide for the Crewe to Manchester section of HS2, together with Northern Powerhouse Rail, will ensure that the north is not only well connected but even more attractive to job creators.

In addition, the plans to improve local connections through the national bus strategy, together with the towns fund and the levelling-up fund, will address the inadequacies of local public transport that have been a barrier to our communities’ prosperity. As a member of the Cheadle towns fund board, I look forward to the building of a new train station in Cheadle town centre, which will reconnect my constituents with the rail network. I hope that the Chancellor will support my bid for Restoring Your Railway funding to further facilitate that key connection. These projects will boost our infrastructure and bring jobs to our region.

Many of my Cheadle constituents work in the Cheshire life sciences corridor, and I welcome the Government’s continued support of that sector. I hope that the new Advanced Research and Invention Agency will bring about another step forward for life sciences in the north-west and across the country.

I also welcome the upcoming skills and post-16 education Bill, which will underpin the lifetime skills guarantee. As someone who completed a degree when married with a family, I know how important it is that education does not end when someone is 18 or 21. As the world of work evolves, it is crucial that people have access to education and training that will help them to adapt and thrive in their careers and to access new opportunities as they emerge. That is how we will back the innovative industries that will form the backbone of our levelled-up northern economy and place this country at the forefront of global innovation.

The pandemic has changed the nature of work, and we have to be prepared for the effect that will have on our wider economy. Pre-pandemic, the imminent death of the high street had been widely predicted, but more people are working from home and have learned the value of their local high streets, and the levelling-up fund will provide an opportunity to rebuild and rethink them. Across our high streets, there are still shops such as Waterhouse’s in Cheadle Hulme, a family greengrocer celebrating 100 years on the high street this month. Those are the businesses that have been there for people throughout the past year, and now we should be there for them.

Whether on the high street or in high finance, we must value and support people in the workplace, because they are the key to the success of business. As chair of the all-party parliamentary group for whistleblowing, I am constantly reminded of the importance of supportive workplaces that value those people who speak up when things are not right. I hope that the Government will listen to our calls for reform of the law and enhanced protections for whistleblowers.

This Queen’s Speech will provide better jobs, skills and infrastructure, and I look forward to working with the Government to ensure that people in my constituency and across the north see the positive benefits of levelling up. As we emerge from the pandemic, there is much to be done, but I am confident that this Government have laid the foundations for a strong recovery.

Oral Answers to Questions

Mary Robinson Excerpts

Tuesday 26th January 2021 Commons Chamber

[Jake Berry (Rossendale and Darwen) (Con)]

What fiscal steps his Department is taking to support businesses in Rossendale and Darwen constituency.

[Mary Robinson (Cheadle) (Con)]

What fiscal steps his Department is taking to support businesses affected by the covid-19 outbreak.

[The Chancellor of the Exchequer (Rishi Sunak)]

The Government recognise the significant impact of coronavirus on businesses across every region and nation of the United Kingdom, and that is why we have put in place an unprecedented series of measures to provide support, whether that is through the coronavirus job retention scheme, tax cuts, tax deferrals, Government-backed loans or cash grants.

--- Later in debate ---

[Rishi Sunak]

I am very happy to join my right hon. Friend in congratulating the businesses he mentioned. We know that many manufacturers, especially those in his area, have worked very hard, particularly with regard to ventilators and personal protective equipment at a time of this country’s need. He is right to say that that should play a part in our recovery. One initiative I would point to, which I believe will be in and around his area, is the Made Smarter partnership between Government and high-value manufacturing, which seeks to foster innovation, digital adoption and the latest and greatest management processes. It seems to be working very well and I look forward to learning more about that initiative.

[Mary Robinson [V]]

Cheadle businesses that faced fines for failing to submit self-assessment returns by the end of this month will be relieved by yesterday’s announcement of an extension until the end of February, as that will remove a great deal of worry and anxiety from business owners who are already under great pressure. With the original deadline only a week away, what steps will the Department take to ensure that all businesses are aware of these changes?

[Rishi Sunak]

As an accountant herself, my hon. Friend knows all too well the fantastic job that these people are doing, under enormous strain, at this current time. I know that, as she said, she warmly welcomes the announcement yesterday by Her Majesty’s Revenue and Customs to waive penalties until the end of February for late filers. She is right to say that we must make sure that everyone is aware of this, and we are doing everything we can, on all our channels of communication, to get this news to businesses. I ask other colleagues across this House to do exactly the same in their constituencies.

Oral Answers to Questions

Mary Robinson Excerpts

Tuesday 20th October 2020 Commons Chamber

[Kemi Badenoch]

[Mary Robinson (Cheadle) (Con)]

[The Financial Secretary to the Treasury (Jesse Norman)]

[Mary Robinson]

[Jesse Norman]

Economic Update

Mary Robinson Excerpts

Wednesday 8th July 2020 Commons Chamber

[Rishi Sunak]

I have been very clear: I cannot save every single job. It is a tragic fact that what we have done to our economy over the past few months means that there will be job losses. Unemployment will rise. It is something that we cannot avoid, but what we can do is put in place a range of interventions to provide new hope and new opportunity for those who lose their jobs, so that they can find the skills, work placements or new jobs they need to provide a better future for themselves and their family. That is what we will devote all our energies to in the coming weeks and months.

[Mary Robinson (Cheadle) (Con)]

I am grateful to the Chancellor for this statement and the enormous package of money that is being put into our constituencies and the economy. I am keen to see even more money made available for us to spend on the things that really matter in the UK. One way to do that is to cut down on fraud and corruption. As chair of the all-party parliamentary group on whistleblowing, I am very keen that we do that. Will he join me for our webinar tomorrow, when we will be looking at ways that international Governments are tackling this through programmes, so that we can deal with the problem of corruption and fraud? I thank him for everything that he has done on tackling furlough fraud, which has been a real issue in our economy.

[Rishi Sunak]

I pay tribute to the work my hon. Friend does in this area. She is absolutely right that we must tackle corruption and fraud in procurement. It costs billions, if not tens of billions, of pounds; that is money lost to the Exchequer that we can use to fund public services, and it also means that our local authorities in particular do not get the quality of services that they need to provide for their residents. My hon. Friend is absolutely right to focus on this, and I very much look forward to hearing what proposals she might have for us to take forward.

The Economy

Mary Robinson Excerpts

Thursday 24th October 2019 Commons Chamber

[Mary Robinson (Cheadle) (Con)]

I welcome the Queen’s Speech. It is wide-ranging and relevant and it has ambition for the country and the regions.

As a Greater Manchester MP, I understand the importance of ensuring that the benefits of a prospering economy reach every corner of the UK. For decades, the north of England has lagged behind the rest of the UK, especially London, economically, but the devolution agenda, in the guise of the northern powerhouse, set in motion by the Conservatives in government, has changed and empowered the ambition of the northern city regions and Greater Manchester has been at the forefront. The plans for a national infrastructure strategy are timely and I welcome its two key aims.

Investment in vital infrastructure and improving living standards are principal drivers of change, and the ability to deliver better jobs and opportunities is the foundation of a healthy and productive local economy. Opportunity begins with education. Because of the historically low levels of funding in Stockport, our schools have received significantly less per pupil than other areas, so I welcome the recent increase in funding, with all but three of the schools in Cheadle benefiting, in some cases by almost £500 extra per pupil.

When we properly fund our children’s education we are investing in their future and expanding their opportunities in employment. Low unemployment in Cheadle indicates a strong economy, but the ambition across our region is also for greater employment opportunities, particularly in developing a high-tech, digital and biotech business environment that will see the Cheshire-Manchester science corridor rival that of Cambridge. The first industrial revolution began in Manchester, and this national infrastructure strategy heralds the emergence of the fourth industrial revolution in the north.

Delivering higher-quality, better-paid jobs is not simply an end in itself, but links to a healthier population and a more productive workforce and economy. We can close the productivity gap between London and the north more easily with a healthier workforce. Health is a driver of a strong economy. Recently, the Northern Health Science Alliance highlighted the link between increased health spending in the north and productivity. Its “Health for Wealth” report indicated a strong link between health spending and the boost in productivity that we can expect. That is why the increased funding package for the NHS and the £30.6 million for Stepping Hill Hospital in my constituency are most welcome.

Transport is also devolved in Greater Manchester, and while I await the Mayor’s plans for the implementation of measures made possible through the Bus Services Act 2017, I ask the Government to consider how they can support any changes that may be implemented. My constituents should not have to endure an undue financial burden to accommodate the Mayor’s franchising proposals.

A national infrastructure strategy needs a national infrastructure project. I was initially pleased to hear the Prime Minister’s commitment to Northern Powerhouse Rail between Manchester and Leeds, and I, along with other northern MPs, will continue to press for its full completion. Delivering on the Northern Powerhouse Rail proposals would mean that businesses and commuters will be within 90 minutes by train of four or more of our largest cities. I have also made representations to the Oakervee review, stressing the importance of HS2 to the north and to my constituents. Rail projects between north and south and east and west should be delivered from the north and delivered as one national infrastructure project.

The second key strand to the strategy is addressing the critical challenges posed by climate change, building on the UK’s world-leading commitment to achieve net zero emissions. I therefore welcome the Environment Bill. However, I urge the Government to consider what more can be done about flooding, because homes and livelihoods in my constituency have been put at risk. Repeated flooding has caused many people to be out of their homes for some time, yet they are unable to access resilience funding, so I ask the Government to consider a permanent resilience fund.

Spending Round 2019

Mary Robinson Excerpts

Wednesday 4th September 2019 Commons Chamber

[Sajid Javid]

The hon. Lady will know that local council funding will be a combination of grant funding and locally raised funding, so it is hard to say specifically what might happen to any particular council’s funding, as it will depend in large part on what that council chooses to do. However, I hope that I can give her some reassurance by telling her that, following today’s announcement, the core funding for local government next year across England will receive its highest increase in a decade.

[Mary Robinson (Cheadle) (Con)]

In the north, there are 42,000 more people in work than there were a year ago, and 280 businesses are being supported through the £400 million northern powerhouse investment fund. I welcome the Chancellor’s announcement of the infrastructure revolution, and indeed the acceleration of the HS3 Northern Powerhouse Rail project. Will he ensure that, throughout the next year, the northern powerhouse is kept at the heart of Government thinking on the economy and on what we can do in the north to close the productivity gap and really deliver for the country?

[Sajid Javid]

Yes, I can absolutely give my hon. Friend that guarantee. I should also like to congratulate her on the excellent work that she has done locally to bring this issue to the attention of the Treasury, especially in relation to infrastructure investment in the north. She has done a fantastic job, and I would be happy to meet her and listen to her ideas, especially on infrastructure.

Loan Charge

Mary Robinson Excerpts

Thursday 11th April 2019 Commons Chamber

[Mary Robinson (Cheadle) (Con)]

Before the sitting was suspended last week, I listened with interest to over two hours of debate on this, so I know that the arguments have been well made and we will review them again.

One thing that those arguments have in common is that they concern people who genuinely entered into these schemes under the impression that everything was above board, based on what they believed to be good and sound advice from accountants, advisers and banks. These people were, in many cases, entrepreneurial, self-employed individuals. It is important to stress that, as far as they were concerned, they were not employees and so did not gain from the security of the benefits that come with most forms of employment such as sick pay or holiday pay. To all intents and purposes, they were simply self-employed.

I urge the Minister to consider putting the loan charge on hold and to consider an independent inquiry. It is important that before we do so, we reflect on the way that things have been changed. I recognise the changes that have been made by HMRC, which now targets the promoters of tax avoidance schemes rather than the individuals who entered into them under the impression that they were legitimate. I would argue that there is a better case for pursuing those who promote these schemes. This approach is successful. Only two weeks ago, HMRC won a legal case against a tax avoidance scheme provider, Hyrax Resourcing Ltd, collecting £40 million in unpaid tax. As I understand it, Hyrax users were paid just enough to comply with the minimum wage, with the rest of their income made up of loans that were transferred to an offshore trust in Jersey.

This is an important development, because it now contrasts with the way in which we were approaching the matter previously. We are now approaching it through the promoters and closing things down in the legitimate way that we should expect. That is the right way to do it. That is important for the people who have been pursued, going back 10 or 20 years, and who want to see that the process is done in the right way. We should put this on hold now.