Oral Answers to Questions

Debate between Nigel Huddleston and Tim Farron

Tuesday 6th February 2024 Commons Chamber

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

The original Treasury impact statement for the loan charge stated that it would have no material impact on

“family formation, stability or breakdown”,

yet there have been countless divorces, family break-ups, mental health breakdowns and bankruptcies, and at least 10 suicides. That impact statement was grossly wrong, but also surely negligent. We now need a full investigation, including how and why Parliament was so misled over the dangerous and unfair loan charge.

[Nigel Huddleston]

I hear the House’s concern about this issue, on which we had a debate not so long ago. Of course, the suicides the hon. Gentleman mentions concern us, and independent reviews have taken place. However, I want to provide the House and anybody listening with reassurance that the best thing to do if people have concerns is to engage with HMRC, because very generous and long-term plans can be put in place to help people to repay. As I said, there are fears out there—there is a bit of scaremongering—that homes are being taken over or people are having to give up pensions. That is not the case. Engagement with HMRC to establish reasonable time to pay would therefore be reassuring for many of the people who fear much worse consequences. My appeal is to engage with HMRC.

Hospitality Sector: Fiscal Support

Debate between Nigel Huddleston and Tim Farron

Wednesday 31st January 2024 Westminster Hall

[Nigel Huddleston]

In this debate we have heard an ongoing request for simplification in recognition of these challenging times—we did, of course, spend £350 billion on the pandemic—and a series of requests for additional relief here, there and everywhere. Everybody recognises—the Welsh and Scottish Governments are also struggling with this—that financial times are tight and that every single one of those requests comes at a cost: either other people would pay more tax or spending would be reduced somewhere else.

We absolutely hear the requests, but as my hon. Friend the Member for St Austell and Newquay (Steve Double) pointed out, over the past few years—certainly during the pandemic—the Government have recognised how vital the sector is and have been absolutely committed to it. It rightly received the immense support that it needed during the pandemic, including through the culture recovery fund to help music and heritage. So many sectors contribute to our tourism and hospitality offering. If we had not made those interventions during the pandemic, many businesses that are here today would otherwise not be. Ongoing asks during the period of recovery, when we need to start paying back that £350 billion, are very difficult because there would be massive consequences for taxpayers and the whole of the economy. I understand the challenges, but I think everybody recognises that every one of those asks comes at a cost.

[Tim Farron]

We obviously have to be careful with the nation’s finances and act within the envelope available to us, but what does the Minister make of the fact that UKinbound, Cumbria Tourism and others say that a variation of VAT levels would be of net benefit to the Treasury? Has he analysed those assessments? I am sure he has met those outfits personally.

[Nigel Huddleston]

I suspect I could spend the whole of this debate answering Members’ questions rather than going through my speech, much to the chagrin of my officials. Again, I understand the request. Many hon. Members pointed out that I was the one making these requests to the Treasury not so very long ago, for all the reasons they outlined, but we all recognise that we have to find the balance.

The point about dynamic modelling is really important. I will come on to VAT in a moment, but we must recognise that one of the biggest challenges of all requests for VAT relief is whether it will be passed on. There is not a 100% fantastic record of that happening in the hospitality and tourism sector or across the board, for understandable reasons. Cash flow was key during the pandemic, so not everybody was able to pass on the VAT reductions. When it comes to future requests for VAT reductions, we must be absolutely confident that they will be passed on, and that applies to multiple sectors.

--- Later in debate ---

[Nigel Huddleston]

I am yet to see the beans being counted, although I am sure that it happens somewhere. My hon. Friend is building on a very clear message that I have received from right hon. and hon. Members today.

The hon. Member for Westmorland and Lonsdale (Tim Farron) and I have had ongoing conversations over multiple years. I do not doubt his passion and support for the sector, or how important the sector is for his constituents. He was right to raise the issue of holiday lettings. I understand that he is disappointed with some of the measures that we have brought in, although some of those measures will make a real difference, including the ability to charge more for some rental properties. All I can say is that we are well aware of some of the additional lobbying for proposed changes and, again, that we are always open to further ideas.

[Tim Farron]

Although we need labour from outside, we also need to be able to grow our own talent domestically; that is the specific thing that will make a difference. The real problem is the collapse of residential properties for long-term occupation. The answer to that is a separate category of planning use for short-term lets and a separate category for second homes. Will his Government choose to do either of those things? They promised to do at least the first one.

[Nigel Huddleston]

All I can say to the hon. Gentleman is that we are listening. Some measures are being put in place that local authorities will have powers to implement, but I understand that a lot of people are not happy with the situation. I completely understand the challenges at a local level, particularly when it comes to employment and the unaffordable cost of housing in many parts of the country, as many Members have mentioned.

Oral Answers to Questions

Debate between Nigel Huddleston and Tim Farron

Tuesday 19th December 2023 Commons Chamber

[Nigel Huddleston]

I thank my hon. Friend for her continued interest in this area on behalf of her constituents. The Government want to ensure a diverse and sustainable visitor accommodation offer while protecting local communities, including ensuring the availability of affordable housing to rent or to buy. That is why we are introducing a registration scheme for short-term lets in England, which will be a vital step towards achieving that aim. The Government keep the tax treatment of property landlords under review, but I would be happy to meet her to discuss these issues further.

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

Throughout Westmorland and Lonsdale we see people, particularly in social care, hospitality and tourism, ejected from their communities because of the collapse in the long-term rental market into a short-term rental market, principally through Airbnb. Will the Minister go further on fiscal controls to make sure that we keep homes available for local people to live in? Will he put pressure on ministerial colleagues to change planning law to make short-term lets a separate category of planning use, so that communities in the lakes and the dales can prevent the collapse of their communities into places only for those who can afford to visit?

[Nigel Huddleston]

I thank the hon. Gentleman for his comments. We have talked about this topic in my previous roles over many years. He is aware that the Department for Levelling Up, Housing and Communities has published a consultation on the introduction of a planning use class for short-term lets. He will also be aware that, through the Levelling Up and Regeneration Act 2023, the Government have introduced a new power to allow councils to apply a council tax premium on second homes. There is progress in this area, but we are always open to new ideas.

Oral Answers to Questions

Debate between Nigel Huddleston and Tim Farron

Thursday 29th June 2023 Commons Chamber

[Nigel Huddleston]

I thank my hon. Friend and constituency neighbour for the work he does as the Prime Minister’s trade envoy to Ethiopia and many other countries. I was also in Ethiopia recently, and many people were praising my hon. Friend and his work. He is right that the developing countries trading scheme will reduce tariffs, which is a win-win both for developing countries, making it easier and cheaper for them to export to the UK, and for UK consumers because it will reduce prices. It is not just a matter of having the deal; we are laser-focused on making sure the benefits of the deal are realised, with more than 100 Department for Business and Trade officials working in Africa to make sure we get the full benefit of these deals.

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

As the Government rightly consider new trade deals with other countries, what lessons will they learn from the hideous mistakes made in the New Zealand and Australia trade deals? The right hon. Member for Camborne and Redruth (George Eustice), a former Secretary of State for Environment, Food and Rural Affairs, rightly said that they are bad deals for Britain. Given that British farmers are so angry with this Government, having been thrown under the bus on animal welfare and on environmental and cost issues, will he learn lessons from those mistakes and make sure British farmers are protected, and that environmental and animal welfare standards are protected, too?

[Nigel Huddleston]

I am, quite frankly, astounded by the hon. Gentleman’s comments. He is well aware, as I have said repeatedly and is widely acknowledged, that the trade deals we have developed, including with Australia and New Zealand, are economically beneficial right across the UK, including in his constituency. If he does not wish to support policies that are in the best economic interests of his constituency, that is something his constituents probably need to recognise come the next election.