Stamp Duty Land Tax (Reduction) Bill

Nigel Evans Excerpts

2nd reading
Monday 24th October 2022 Commons Chamber

[Tim Farron (Westmorland and Lonsdale) (LD)]

The housing crisis in this country is huge, and it is more than just an issue of supply. In my community, as I mentioned in the previous debate, a catastrophe has emerged over the past two years. I have never seen such appalling need. The average house price in my constituency is something like 12 times the average household income. The simple fact is that any benefit from this Bill will help, if we are lucky, a fraction of 1% of people who want to buy a house but are currently unable to do so.

This Bill is not a very good use of public money when we are in the throes of a Conservative Government heroically seeking to do their best to counter the impact of a Conservative Budget. This Bill is a surviving element of that disastrous Budget. It does not seem to be the best use of money, given that the majority of beneficiaries will be wealthy people who do not need a stamp duty cut. What it will do, as we said in the previous debate, is fuel a second home boom that is already causing a huge amount of damage to communities like mine.

I asked myself why this Bill is one of the few survivors of the disastrous mini-Budget. I can only conclude that it is because the people who are damaged and offended by it live in rural communities, so the Government feel that they can take them for granted. I put it on the record that these people will not be taken for granted. Again, the average house price in my community is spiralling towards £300,000, but people’s incomes are significantly less than £30,000 per household, never mind per individual. When there are things the Government could do to address the affordable housing crisis, it is all the more frustrating to see such a blunderbuss waste of public money.

The Government are talking about changing planning law so that developers do not need to provide affordable housing in developments smaller than 50 homes. Well, most developments in communities such as mine are smaller than 50 homes, so there will be a carte blanche for developers never to build another affordable home in the lakes and the dales, or in communities not dissimilar to yours, Mr Deputy Speaker.

I gave the Government an opportunity in the Levelling-up and Regeneration Bill Committee, which they refused to take, to give themselves and planning authorities the power, in extreme circumstances—those of us living in national parks absolutely are in extreme circumstances—to say that only affordable housing can be built in new developments. Even under existing rules, developers wriggle out of their affordability requirements and obligations by using viability assessments. They go to the development site and say, “I found a few more rocks than I was expecting. I therefore cannot afford even the 35% affordable homes that we were going to build.” Again “affordable” has a rather broad definition.

The Government could be doing a whole range of things with both new stock and existing stock. Why will they not accept the proposal I made in this place and in the Levelling-up and Regeneration Bill Committee, and will be making again, to change planning law so that second homes and holiday lets become separate categories of planning use? We could then keep a lid on the number of second homes and holiday lets in communities like mine.

It is very hard to support a proposal that is the sole straggling survivor of a disastrous mini-Budget when one suspects that the only reason it has survived is because the people hurt by it are living in communities that the Government think they can take for granted. Well, they cannot and must not be allowed to take them for granted. I am sure we will see a revised fiscal programme from the Government in the next few days, so we wait to see what it contains. I do not understand why they are clinging on to this proposal, which will do such little good even for those it helps and such harm to those it harms, when they have the chance to think again. I strongly urge them to do just that.

[Mr Deputy Speaker (Mr Nigel Evans)]

We now come to the wind-ups. I call the shadow Minister, Tulip Siddiq.

Stamp Duty Land Tax (Reduction) Bill

Nigel Evans Excerpts

Committee stage
Tuesday 10th January 2023 Commons Chamber

[Victoria Atkins]

If I have understood the hon. Gentleman correctly, he has misunderstood the measures in the Bill, which introduces a premium on second homes of up to 100% and a strengthening of the existing premium on empty homes. I appreciate his point about empty homes, if people are moving or returning to their second homes, but that is not the scenario everywhere—indeed, in my constituency, I can think of examples where that is not the case. We are trying to use practical measures so that local communities can decide how to deal with it through council tax.

I was talking about complexity. We want to ensure that the system is as simple as possible for taxpayers, which is why we have the consistency of rate bands between the standard rate and the rate for additional dwellings.

Amendment (b), which was tabled by my hon. Friend the Member for Christchurch, seeks to extend the period from 31 March 2025 to 31 March 2028. It is important that the Government maintain a commitment to fiscal responsibility and that requires difficult decisions, as I have set out. The Chancellor was clear about that in the autumn statement, and I hope that the ministerial team have been clear about that when we have spoken at the Dispatch Box. The Government will continue to take difficult decisions to get the public finances on a sound footing and to get debt falling in the medium term.

We therefore announced that the stamp duty cut will end in March 2025 as part of that commitment. It will remain in place until then to support the property market through what we all acknowledge are difficult times. We believe that we have struck the right balance between ensuring support for the jobs and businesses associated with the housing market and the Exchequer cost.

The remaining amendments tabled by hon. Members on both sides of the Committee refer to reports and reviews, if I may summarise them in that way. As my hon. Friend the Member for South Cambridgeshire reiterated, it is a fundamental principle that we are loth to include reporting and reviewing requirements in primary legislation. In any event, we do not believe it to be necessary, because the Government already publish a wealth of data on those matters. For example, HMRC publishes data on property transactions and stamp duty land tax receipts, including data on the use of first-time buyers’ relief. To help hon. Members to understand what that means for our constituents who are first-time buyers, the Bill will mean that they can access up to £8,750 in relief. It is a great shame that Opposition Members propose to vote against that relief.

The Department for Levelling Up, Housing and Communities also publishes the English housing survey. Data on property prices, including at a local level, is published through the Land Registry. The Government published a summary of the measure’s impacts, including on the Exchequer, in November’s autumn statement. I hope that hon. Members who have asked for that data and those reviews will look at that wealth of information and draw their own conclusions.

I thank hon. Members for this debate, which I very much welcome, but I commend the Bill to the Committee. I particularly commend the Government amendments to enable first-time buyers in our constituencies to get on to the housing ladder, and to help other constituents move up the housing ladder and continue to thrive in our country in the next couple of years.

[The First Deputy Chairman of Ways and Means (Mr Nigel Evans)]

Before I put the Question, I should just say that I am anticipating three votes: two in Committee and one on Third Reading. The first vote will last for 10 minutes and the two subsequent ones will last for eight minutes each, so if I were you I really would not go anywhere after voting in the first Division.

Amendment proposed to amendment 1: (a), after “transaction” insert

“(except in relation to additional dwellings)”.—(Abena Oppong-Asare.)

This amendment is intended to remove the relief from stamp duty land tax for second homes (see Amendment 15 to leave out subsection (3)).

Question put, That the amendment be made.