Property Taxes

Oliver Dowden Excerpts

Wednesday 3rd September 2025 Commons Chamber

[Sir Mel Stride (Central Devon) (Con)]

I beg to move,

That this House notes recent reports that the Government is considering a wide range of increases to taxes on property; notes the Prime Minister’s commitment last year not to impose Capital Gains Tax on primary residences; and calls on the Government not to introduce an annual property levy which would tax the family home, higher rates of Council Tax, or a land value tax, or to lower the thresholds or further increase liability to Inheritance Tax, for example, by changing the seven-year gift rule.

I trust you had a good recess, Mr Speaker. I am absolutely certain that the Deputy Prime Minister also had a good recess. We saw many photographs of her down at the seaside, just off the coast in a rubber dingy—rather like many of the other photographs we saw over the summer, given this Government’s reckless policies on illegal migration. She was probably celebrating the acquisition of another property for her property empire, but that celebration was perhaps slightly tinged with a nagging doubt as to whether she had indeed paid enough stamp duty. Well, we will get to the bottom of that in due course.

Those who could not avoid paying the taxes imposed by this Government are businesses right up and down our country, many of which I took the time to visit during the recess. In the leisure sector alone, some 80,000 jobs have been destroyed by the national insurance rises, and this has particularly affected those taking their first job, younger workers, part-time workers and female workers. Jobs are being destroyed.

While the Deputy Prime Minister was lounging on her boat with her wine, this Government were all at sea, like a cork bobbing on the tide, with no control over the events swirling around them. When it came to the economy, although eclipsed by the calamities around illegal migration, we saw recently the panicked reshuffle of the Treasury Front Bench. I offer my congratulations to the Exchequer Secretary to the Treasury, the hon. Member for Chipping Barnet (Dan Tomlinson) and warmly welcome him to his new role. However, I should also tell him that he is joining a sinking ship, whose captain has just had all her authority stripped from her, while all his comrades down below deck are fiercely trying to bail it out. I also offer a fond farewell to the former Chief Secretary to the Treasury, the right hon. Member for Bristol North West (Darren Jones), who no doubt thought he was very clever when he leapt off the sinking ship. He will not be feeling quite so clever when he discovers that the place to which they have sent him is even more dysfunctional than the Treasury Front Bench.

Among all this news of arrivals to our shores, we have had a cruel summer of speculation around tax. We have seen in the skies clouds of kites flown largely by the Treasury as to what taxes it is going to put up. It has all been tax, tax and tax. I am reminded of the Beatles’ song “Taxman”:

“I’ll tax the street,

If you try to sit, I’ll tax your seat,

If you get too cold, I’ll tax the heat,

If you take a walk, I’ll tax your feet.”

When it comes to tax, it is not so much “Good Day Sunshine” as “Help!”[Laughter.] Okay—it was a bit hammy, but it was worth a try. I was going to try “Penny Lane” as well, but I drew the line there.

It is worth examining how we got to this point, for a reckoning for our country is surely coming. This will be a story for all time.

[Sir Oliver Dowden (Hertsmere) (Con)]

Will my right hon. Friend give way?

[Sir Mel Stride]

I will do so momentarily.

It started with broken promises. This was a party that said during the run-up to the general election that it had no intention of raising taxes left, right and centre, and yet within a month or two, this Government did precisely that, with devastating consequences: tax rises on businesses that stifle growth. They talked down the economy by confecting a £22 billion black hole that did not exist. What an irony it was that it was they who brought in the Office for Budget Responsibility to decide whether that £22 billion black hole existed and that the OBR said it could not legitimise the claim—the Government were wrong.

What happened with spending and borrowing? It got completely out of control. The combination of passing on price rises because of the national insurance increases, and the extra borrowing and spending, has led to higher inflation. We are an outlier when it comes to inflation.

[Sir Mel Stride]

In a moment.

That in turn has seen interest rates higher for longer and the servicing costs on our national debt now running at over £100 billion a year—more than twice our defence spend. I will now give way to whoever was trying to intervene behind me.

[Sir Oliver Dowden]

Would my right hon. Friend agree that correcting this loss of market confidence demands decisive action from the Government at the Budget, and that that decisive action cannot be taken solely on the tax side? The tax side is what has driven us into this loop. We need decisive action on spending and particularly on welfare if we are to see some restoration of market confidence and get ourselves out of this rut.

[Sir Mel Stride]

My right hon. Friend, as ever, is absolutely right. The reality, as we see in the bond yields at the moment, is that the markets have no confidence in the ability of this Government to get on top of spending. We saw the farce of a Government who came into office scrapping the £5 billion of welfare savings that were already baked into the OBR’s scorecard because we had brought them in, and attempting to bring forward their own reforms only for their Back Benchers to vote them down. My right hon. Friend is so right; this Government do not have the will or the plan to deal with spending, and that is at the heart of the reason why we will all be punished and pay the price of more taxes come the Budget in November.

--- Later in debate ---

[Sir Mel Stride]

My hon. Friend is absolutely right. I have already shared with the House the classic example of the number of people who have left this country because of a punitive tax regime and the costs of that.

[Sir Oliver Dowden]

Further to the excellent point made by my hon. Friend the Member for Hinckley and Bosworth (Dr Evans), the Labour party denigrates wealthy individuals who choose to come to this country. However, it is about not just the tax that they provide, but the jobs and opportunities they create by investing in constituencies up and down the country. This country has prospered for hundreds of years by being open and welcoming to inward investment. If we lose that, we lose a key plank of the competitiveness and growth that have been associated with our economy.

[Sir Mel Stride]

That is right. We live in a highly mobile world; it is easy for people with substantial wealth or money to invest to go anywhere in the world. We have to remain competitive, and this Government are making us less competitive. My right hon. Friend refers to unemployment, but just look at the record—should we have expected any more from this Government? No, not really. Every single Labour Government in history have left unemployment higher when they left office than it was at the time they came into office. What have we seen on unemployment since this Government have been in office? It has increased every single month since they have been in power.

--- Later in debate ---

[James Murray]

I am not going to engage in speculation about tax measures or any of the mechanics around them. The hon. Member and his hon. Friends will simply have to wait until 26 November to hear the specifics of the Budget. At that point, I am sure that he and his colleagues will have plenty to say.

[Sir Oliver Dowden]

I genuinely congratulate the hon. Gentleman on his appointment as Chief Secretary to the Treasury. I have always found him to be an honest and straightforward speaker in the House and he deserves his position. On the point about speculation, can he confirm reports that the Government are looking again at welfare? Surely he will agree with me that, in any process of fiscal consolidation, one must look to tax rises and to spending cuts. There has been a lot of reporting about there being further measures on welfare, so will there be further measures on welfare under consideration—yes or no?

[James Murray]

I thank the right hon. Member for his kind words. As he will know, welfare measures are already going through Parliament and being investigated by my right hon. Friend the Minister for Social Security and Disability through the review that he is undertaking. This Government are determined to ensure that the safety net is there for the people who need it, and that the people who can work have the support they need to get and maintain a job.

Oral Answers to Questions

Oliver Dowden Excerpts

Tuesday 4th March 2025 Commons Chamber

[Emma Reynolds]

Harlow is home to one of the UK’s largest supercomputers. We are taking forward the AI action plan and we also have the tech adoption review, which will look at how we can unlock the potential of AI in our high-growth sectors.

[Sir Oliver Dowden (Hertsmere) (Con)]

T9.   Attracting high net worth individuals to spend more time in the United Kingdom drives jobs, growth and, crucially, tax revenues, but unfortunately the opposite is happening in the UK right now. Will the Chancellor use the spring statement to look at the statutory residence test and, in particular, the ties rules to see whether we can incentivise people to spend more time in the UK, not the other way around?

[James Murray]

As part of the reforms announced at the autumn Budget, we are modernising the system for people from overseas spending time in the UK with a new residence-based test. We are always looking at ways to encourage people from overseas to spend time in and invest in the UK and to help grow our economy.

Growing the UK Economy

Oliver Dowden Excerpts

Wednesday 29th January 2025 Commons Chamber

[Darren Jones]

I thank the Chair of the Science, Innovation and Technology Committee for her question. She and her Committee know the huge advantage we have in the UK with our brilliant universities and research and development ecosystem, which is why we are supporting them and putting rocket boosters underneath their activity to develop world-leading and frontier research and innovation, and stimulate economic growth across the country.

My hon. Friend is right that the development in Manchester is a broad set of privately financed housing and commercial opportunities, as well as the work that Manchester United wants to do with its football stadium. I should inform the House that I cannot give a running commentary on the stadium applications for all football clubs across the country, and she will have to forgive me for not knowing the latest plans for Newcastle.

[Sir Oliver Dowden (Hertsmere) (Con)]

I welcome the Government’s conversion on a third runway at Heathrow. The sort of connectivity that that enables, particularly with fast-growing economies in Asia and the Gulf, is essential to growth. However, what assurance can the Chief Secretary to the Treasury give the House that this project will not subsequently be stymied by an absolutist approach driven by ideology towards carbon emissions, which will drive it into the ground? We have been down this path before.

[Darren Jones]

The right hon. Member has been down this path before because it was his Government who went down it and blocked all these developments over the past 14 years. This Government are working on reforms to the planning system, looking at national policy statements, thinking about skills and infrastructure supply chains, and unlocking private capital because we are a Government who want to get Britain building again, and not block the projects that were stalled for years under the previous Administration.

Oral Answers to Questions

Oliver Dowden Excerpts

Tuesday 21st January 2025 Commons Chamber

[Rachel Reeves]

I join my hon. Friend in congratulating Intasite on its 10th anniversary as a business, and on the rapid growth it is enjoying. The announcement we were able to make last year on the carbon capture and storage work in Teesside will be a big driver of jobs and growth there, and I look forward to working with him and local businesses in Stockton to make that a reality.

[Sir Oliver Dowden (Hertsmere) (Con)]

Does the Chancellor of the Exchequer propose funding the reported £9 billion bill to the Mauritians for the continued use of Diego Garcia through higher taxes, more borrowing or spending cuts?

[Rachel Reeves]

We are in discussions with the new Administration in the United States around the future of Diego Garcia. We will set out details in the spending review, as the right hon. Gentleman would expect.

Finance Bill

Oliver Dowden Excerpts

Committee of the whole House
Wednesday 11th December 2024 Commons Chamber

[James Murray]

I thank the right hon. Gentleman for his question on the impact of the policies on children’s education. I will come to the details shortly, but to give him an overview of the forecast impacts, we estimate that ultimately there will be around 37,000 fewer pupils in the private sector. That is a combination of pupils who will never enter the private sector in the first place and those who will leave. They represent around 6% of private school pupils. We expect most of the moves to take place at natural transition points, such as when a child moves from primary to secondary school or at the beginning of exam courses.

[Sir Oliver Dowden (Hertsmere) (Con)]

If the intention of the Government is that the moves should happen at natural transition points, why did they decide to impose the change from January? Whatever one’s views on the merits of the policy, that is not really fair on the parents affected. Indeed, one could say it is cruel.

[James Murray]

It is right that these changes be implemented as soon as possible to raise the funding that we need to deliver on our education priorities. As a result of the policies coming into effect in January, we will raise a forecast £460 million of additional revenue in 2024-25. We are ambitious for the state education system, and we want to get on with delivering the changes that we committed to in the manifesto.

--- Later in debate ---

[James Wild]

My hon. Friend makes an important point. Over our 14 years in government, one of the things that consecutive Education Secretaries did was to work with the independent sector precisely to open up those facilities, in recognition of the public good and benefit to their communities that they were delivering.

[Sir Oliver Dowden]

Further to the excellent intervention from my hon. Friend the Member for Hinckley and Bosworth (Dr Evans), that is exactly what happens with schools in my constituency. Haberdashers’ school partners with 1,400 state school pupils every single week. When the Minister talks about finding efficiencies, these are exactly the sorts of programmes that will suffer. There is no other place for those students to go if they leave private schools in my constituency, so on both counts everyone is worse off. That is one of the inequities of the policy.

[James Wild]

My right hon. Friend makes a powerful point, which reflects the rash nature of the policy and the inadequacy of the impact assessment, which does not address those issues.

--- Later in debate ---

[James Wild]

We can but hope that the hon. Member will join us in the Lobby tonight, and also that he will one day develop the attuned knowledge that my right hon. Friend has of the tax system and the changes that were introduced in the last Parliament.

Let me add that the Association of School and College Leaders has said that there is

“increased anxiety among school leaders”

who are having to deal with the change in the middle of the academic year.

This is the first time an education tax has been introduced, which is why we need to oppose it and review its impact. The Government’s very limited impact assessment estimates that 37,000 more pupils will come into the state sector, at a cost of £270 million a year. It also concedes that there will be a loss of places equivalent to the closure of 100 more independent schools over the next three years than would otherwise be predicted. That assessment is thin, and the Government’s consultation was flawed.

[Sir Oliver Dowden]

My hon. Friend is making an excellent speech. The Government’s impact assessment also assumes that the loss of places will be spread uniformly across the country, which will not be the case. In many constituencies, particularly those represented by Conservatives, a large number of students are at private schools, and the loss of those places will have a significant impact on local schools where there are not the places to absorb them.