Council Tax
Debate between Matthew Pennycook and Lindsay Hoyle(1 week, 2 days ago)
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Matthew Pennycook
I thank the hon. Gentleman for his questions. Let me take them in turn. The Government are committed to a fair funding settlement for local government. We will set out further details in the usual way in the upcoming local government finance settlement, which will be presented to Parliament.
On the £2.4 billion figure, I am afraid that we simply do not recognise it. I assume that the hon. Gentleman, in his calculations, failed to take account of the over £300 million raised from business rates and £300 million in additional new houses coming along. Yes, it is right that £1.8 billion will be raised through council tax in 2025-26, but, as I made clear, that is because the Government are clear that we are maintaining the previous Government’s policy on council tax, in line with the OBR forecast made in March 2024.
The question for the Opposition is: are they saying that the cap should be abolished, as the Conservative Local Government Association group’s “Rebuilding the Road to Victory” document called for all caps to be removed, or are they saying that the limit should be reduced, which would be contrary to the policy in place when the now Leader of the Opposition was the local government Minister?
Mr Speaker
I call the Chair of the Housing, Communities and Local Government Committee.
Florence Eshalomi (Vauxhall and Camberwell Green) (Lab/Co-op)
It is worth remembering why a number of our local authorities are facing this decision and the tight financial situation: the funding crisis over the past 14 years, forcing a number of local authorities to make those difficult decisions. A number of our areas are facing major in-year cost pressures from things such as temporary accommodation and special educational needs and disabilities provision. Does the Minister agree that we need to accelerate the house building plan in order to get local authorities back on a level playing field, so that our local residents do not see that cost increase in their council tax bills?
Matthew Pennycook
I thank the Chair of the Select Committee for that question. She is absolutely right; after 14 years of the previous Government’s record in office, local government is on its knees. We have a system on the verge of collapse. We had multiple years when in-year spending pressures were ignored. The headroom that we have provided through the Budget—more than £4 billion in new local government funding, which I referenced earlier—will allow us to start to turn that system around and to get ahead of some of the challenges we are facing, whether the pressures on adult social care, children’s services or homelessness costs as a result of temporary accommodation. That is why our house building programme—within my specific remit of responsibility—and, in particular, the increase in social and affordable housing supply that we are committed to, is so important.
Mr Lee Dillon (Newbury) (LD)
The Liberal Democrats are deeply concerned that people are simply paying more council tax for fewer services. That is quite clearly the result of Conservative tax cuts and their failure to tackle social care. As a former council leader, I know that the burden on councils has increased to such an extent that they are forced to make impossible choices. The burden and the costs that councils of all colours have to shoulder as a result of the Conservative Government’s policies must be reviewed. Will the Minister ensure that councils do not have to close libraries, cut bus routes and reduce road repairs in order to meet the growing demands of the most vulnerable members of our community? Despite the announcement in the Budget, will the Minister recognise the LGA analysis that councils face a £6.9 billion shortfall because of inflation, increased wage demands and demand pressures on local services?
Matthew Pennycook
My hon. Friend is absolutely right and we still have not had an answer: we do not know the Opposition’s position on thresholds. [Interruption.] We are in government, as the hon. Member for Thirsk and Malton (Kevin Hollinrake) chunters from a sedentary position, and we have confirmed that when it comes to thresholds, we intend to maintain the position as it was under the previous Government, and as baked into the Office for Budget Responsibility forecast for the spending period. The Opposition really do have to answer this question: are they saying that the thresholds should be removed or increased, or are they saying that they should be reduced and core services cut?
Mr Speaker
Unfortunately, it is not for the Opposition to answer the questions—they are in opposition.
Dame Harriett Baldwin (West Worcestershire) (Con)
The Chancellor and the International Monetary Fund are known to favour ending council tax and replacing it with a wider property tax. The Welsh Labour Government tried to revalue all the properties in Wales for council tax purposes. Can the Government rule out doing either of those things?
Oral Answers to Questions
Debate between Matthew Pennycook and Lindsay Hoyle(3 weeks, 5 days ago)
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Matthew Pennycook
The national planning policy framework is very clear that inappropriate development in areas at risk of flooding should be avoided by directing development away from areas at highest risk, including flood plains. We consulted in the national planning policy framework consultation and sought views on how the planning system can more effectively manage flood risk. As I say, my Department is analysing responses, with a view to publishing a Government response before the end of the year.
Oral Answers to Questions
Debate between Matthew Pennycook and Lindsay Hoyle(2 months, 3 weeks ago)
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Matthew Pennycook
I think the hon. Gentleman is referring to the changes to the national planning policy framework rather than to social housing specifically. We have made those changes proposed to the standard method. They will give London a realistic, but achievable, new target. [Interruption.] Let me explain why. The way that the previous Government applied the urban uplift unfairly to London gave it an unrealistic, fantastical target that it could not meet. We will ensure that we are pushing the mayor on a realistic, but achievable one.
David Simmonds (Ruislip, Northwood and Pinner) (Con)
We share the ambition of seeing a big increase in the supply of housing, and of social housing in particular. Given that there are around 1.4 million new homes with planning consent already granted in this country, what process led the Government to prioritising the removal of green-belt protections rather than building the homes for which our councils have already given consent?
Matthew Pennycook
We are committed to working with councils, including with the signatories of the recent report on securing the future of council housing, to address the many challenges they are facing, including in connection with the housing revenue account headroom as many of them are feeling lots of pressure on that front. As a first step, we have given councils more flexibility to increase the delivery of council homes using right-to-buy receipts, and allocated an additional £450 million to councils to secure homes for families at risk of homelessness. We will set out plans at the next fiscal event to give councils and housing associations the rent stability they need to borrow and invest in new and existing homes.
Helen Morgan (North Shropshire) (LD)
Recent freedom of information requests by the Liberal Democrats found that four out of five councils that responded had someone on their social housing waiting list for more than a decade, and this shocking statistic comes all while the stocks of social housing have been reducing. Will the Minister consider reforming the land conservation Act, so that local councils can buy land at current value rather than hope value and get on with delivering the social housing that we so desperately need?
The Minister for Housing and Planning (Matthew Pennycook)
I am deeply saddened to hear of the plight of Tracy and her children. Our renters’ rights Bill will protect tenants from arbitrary eviction and empower them to challenge unreasonable within-tenancy rent rises. I can assure my hon. Friend that Tracy and others facing similar insecurity will not have long to wait for that Bill’s introduction.
Matthew Pennycook
The Government are committed to ensuring that development protects and provides—[Interruption.]
Mr Speaker
Order. Can I just say to the Father of the House that that is not really the done thing? He should know that better than anybody.
Matthew Pennycook
As I was saying, the Government are committed to ensuring that development both protects and provides for green space. I am more than happy to discuss the particular challenges that my hon. Friend faces in her part of the country.