Economy Update

Debate between Rishi Sunak and Huw Merriman

Thursday 26th May 2022 Commons Chamber

[Rishi Sunak]

We have not changed the structure of how the price cap works—it covers what it covers. But what we have done is provide discretionary funding—already half a billion pounds this year between spring and autumn, and now an additional half a billion pounds from October through to next spring—to pick up all those who might be in particular circumstances that need additional assistance.

[Huw Merriman (Bexhill and Battle) (Con)]

May I welcome the Chancellor’s economic package? It is thoughtful, innovative and incredibly generous—much more so than some of the ideas that some are saying he has taken from the Opposition.

Last week, I met our fantastic citizens advice team, who work so hard locally. They had a number of measures, and he has delivered on them all. There is one remaining: they were concerned that one-off payments, generous as they are, can sometimes be difficult for people with particular challenges to manage. Will he look at that in the roll-out and ensure that we can help the people who perhaps need it the most?

[Rishi Sunak]

I thank my hon. Friend for his support and join him in paying tribute to our fantastic citizens advice bureaux for the fantastic work they do. He makes a good point, which is one reason why the payment will be staggered into two tranches. It will not come all in one go: the first tranche will come in July and the second later in the autumn. That will help to address the issue that he raised.

Financial Statement

Debate between Rishi Sunak and Huw Merriman

Wednesday 23rd March 2022 Commons Chamber

[Huw Merriman (Bexhill and Battle) (Con)]

I congratulate the Chancellor on the statement and particularly on the 5p reduction in fuel duty, which I note is temporary. Will he remind all Members of this House that temporary does not mean permanent, and that as the reduction costs £5 billion, if it becomes permanent we will not be able to reduce income tax, which also costs £5 billion, if we are to meet our tests of fiscal responsibility?

[Rishi Sunak]

I thank my hon. Friend, as ever, for his support. He is right: the fuel duty cut will benefit all our constituents, particularly those in more rural areas and on lower incomes. He is also right to make the point that we need to remain disciplined on public spending. We have fully accounted for the income tax cut in our plans, but it will require collective discipline to deliver those tax cuts and others that we want to see over the remainder of this Parliament.

Spending Review 2020 and OBR Forecast

Debate between Rishi Sunak and Huw Merriman

Wednesday 25th November 2020 Commons Chamber

[Rishi Sunak]

My priority throughout this crisis has been protecting jobs. I am pleased to see that that is something the OBR, the Bank of England and the IMF all acknowledge has happened as a result of our interventions. We currently have an unemployment rate that is lower than Italy, France, Spain, Canada and the United States. So, yes, I do think what we are doing is making a difference to millions of people up and down the country.

[Huw Merriman (Bexhill and Battle) (Con)]

Can I commend all the work that the Chancellor has done this year? Many constituents I speak to credit him personally with keeping them in a job. I am also pleased to see that, despite the financial pressures, the Chancellor is investing in transport. We see multi-year settlements for road, rail and active travel, and changes to the way infrastructure projects are appraised to increase the number of transport projects in deprived parts of the country, as well as a green book, a national infrastructure strategy, a red book and a £4 billion levelling up fund—and I am pleased to see that the Department for Transport is a sponsor. Can I ask him to keep a watchful eye on how all that is spent? Will he continue to place transport investment at the heart of our recovery and his long-term vision for this country?

[Rishi Sunak]

I am very grateful for my hon. Friend’s intervention. He is absolutely right, and he has championed tirelessly for his constituents and the country the importance of transport in our levelling-up agenda and in helping to drive growth and spread opportunity. He is also right that we should be careful about how this money is spent and make sure that it is delivered. I talked about Project Speed earlier, and I would welcome his involvement and advice on that. He will notice in the spending review document a new focus on outcomes across public services with a new public value framework. That will deliver what he is asking for.

Covid-19: Economy Update

Debate between Rishi Sunak and Huw Merriman

Thursday 22nd October 2020 Commons Chamber

[Rishi Sunak]

Maybe the hon. Gentleman knew something that the TUC and every other business group did not when they warmly welcomed the introduction of the job support scheme, but I am grateful to have his thoughts. He might also want to have a word with his colleague the hon. Member for Edinburgh North and Leith (Deidre Brock), who said that it was wrong to give support to large businesses that were benefiting from this crisis. That is exactly why it would be wrong to extend the furlough scheme. The job support scheme is more targeted in its approach, makes sure that those types of businesses are not able to access support and, as I have mentioned, is more generous to employers than the October furlough scheme.

[Huw Merriman (Bexhill and Battle) (Con)]

I warmly welcome the Chancellor’s statement and thank him and his colleagues, and indeed the Department, for everything they are doing. It would take the most churlish of people to claim that this is anything but flexible, nimble and massive support for business. I recognise that, in making the job support scheme more generous, the Chancellor is now providing support for businesses that are open, and that is absolutely welcome. What steps are being taken in respect of those businesses that are open and perhaps do not need as much support—or, indeed, there could be fraudulent claims—to protect the taxpayer?

Economic Update

Debate between Rishi Sunak and Huw Merriman

Tuesday 17th March 2020 Commons Chamber

[Rishi Sunak]

As I reiterated last week, we will provide whatever is required to public services. My right hon. Friend the Health Secretary is working with the Local Government Secretary to understand exactly what is required in social care.

[Huw Merriman (Bexhill and Battle) (Con)]

I welcome the package that the Chancellor has laid out and all the work that he has been doing. He said that he will look at other things over the coming days. May I please ask him to consider pre-schools and nurseries? They pay business rates, so will not receive the £10,000, but they are not within the category of hospitality, retail and leisure. Mine have been in to see me today and they are very worried. It would be awful for the very people that rely on them—the parents. Will my right hon. Friend consider that ask?

[Rishi Sunak]

I thank my hon. Friend for his comments and am happy to look at what he is saying.

Rating (Property in Common Occupation) and Council Tax (Empty Dwellings) Bill

Debate between Rishi Sunak and Huw Merriman

2nd reading: House of Commons & Programme motion: House of Commons & Ways and Means resolution: House of Commons
Monday 23rd April 2018 Commons Chamber

[Rishi Sunak]

My hon. Friend makes an excellent point and the issue of housing in rural areas was also raised by my hon. Friend the Member for Copeland (Trudy Harrison). He is right to highlight the issue. Legislation makes a distinction between long-term empty homes, which have been unfurnished and unoccupied for two years—those that the Bill seeks to address—and homes that are considered to be second homes, which are at least partially furnished and occupied on occasion. My hon. Friend the Member for North Cornwall (Scott Mann) will know that the coalition Government ended the presumption of a council tax discount for such second homes and levied a stamp duty surcharge on them. I will return to those measures when I respond to some of the other points raised.

My hon. Friend the Minister for Housing deserves enormous credit for the energy with which he has approached his new portfolio to make good on the Government’s commitment to fix our broken housing market, and the Bill is a small part of the process of doing that. Since 2010, we have introduced measures, including the £7 billion new homes bonus scheme, that have reduced the number of properties empty in England for six months or longer by a third, as we have heard tonight. But there is more to do, and the Bill will allow councils to levy an additional 50% premium on long-term empty homes, leaving the discretion on that decision with local authorities for all the reasons hon. Members have mentioned.

I pay tribute to my hon. Friend the Member for Harrow East (Bob Blackman), who has incredible experience of local government and brings it to bear on these matters. I join him in paying tribute to the hon. Member for Sheffield South East (Mr Betts), who we were all happy to see back in his place tonight. My hon. Friend raised the issue of pre-legislative scrutiny of the Bill and I am grateful for his comments. I also put on record my thanks for the work of the Housing, Communities and Local Government Committee in engaging extensively me with and my officials on the various technical issues raised. In particular, the Committee was right to pick up on the issue of voids and whether the Bill would capture the definition accurately. As my hon. Friend will have seen, the Bill takes into account the question that the Committee raised and we have worked with experts in the sector to tweak the definition. I think that will address the Committee’s concerns.

My hon. Friend rightly highlighted the issue of small businesses and cash flow, and urged us to press on as fast as we can. That is what we are trying to do. In response to letters from the Committee questioning the timing of the pre-legislative scrutiny, I said—and I repeat to the House tonight—that that is why we moved as quickly as we did. Instead of the normal process of 12 weeks, we had a slightly shorter process of eight weeks for that scrutiny, so that we could get the Bill on to the statute book as soon as possible and bring some relief to the small businesses facing cash-flow issues.

I turn to the oratorical tour de force from my hon. Friend the Member for Walsall North (Eddie Hughes). He said that the Bill is not sexy, but on the contrary these are the matters that keep local government Ministers, and the hon. Member for Oldham West and Royton, up at night. My hon. Friend will be pleased to know that we are focused on the detail. He was right to highlight to all hon. Members the particular delights of Beechdale, which they will all want to join me in visiting at the earliest opportunity, not least to shop the delights of Rob Mullett Butchers and the grocery store run by Jane and Phil. My hon. Friend also made a broader point about the importance of regenerating our urban centres, which was picked up by my hon. Friends the Members for Cheadle (Mary Robinson) and for South Suffolk (James Cartlidge). I can assure my hon. Friends that the Under-Secretary of State for Housing, Communities and Local Government, my hon. Friend the Member for Rossendale and Darwen (Jake Berry), who has responsibility for high streets, will have listened carefully to everything they said and will use their remarks as he develops policy to benefit our high streets around the country.

My hon. Friend the Member for Walsall North asked specifically about exemptions. I am pleased to tell him that council tax exemptions are already in place for people living in service accommodation or for those in the armed forces who are serving elsewhere and whose homes are therefore empty. Indeed, there are specific statutory exemptions for properties left empty for a purpose, for example when a person goes into care. There are also discretionary discounts for houses that are empty because of special circumstances such as hardship, fire or flooding, and I hope that addresses Members’ concerns on that point. My hon. Friend also kindly paid tribute to the drafting of the Bill, for which I cannot take enormous credit—I pay tribute to the officials, the ratings agencies and other experts who helped to draft the legislation to make it ready for today.

My hon. Friend the Member for Chippenham (Michelle Donelan) outlined yet again why she is a strong champion of small business in her constituency and around the country. She talked about entrepreneurship, and it is exactly right that our tax system and our policy supports the entrepreneurs not just of today, but of tomorrow. Supported by my hon. Friend the Member for Havant (Alan Mak), she, as ever, made a compelling case for why this Government and this measure will continue to support entrepreneurship across our nation.

I turn to some of the questions raised by the hon. Member for Oldham West and Royton. He asked specifically about the amount that will be raised from this measure. The stats are that 60,898 properties were subject to the measure in the last year, and 291 of 326 local authorities—90%—levied the premium. All but three of those levied the full 50%. That raised about £38.7 million, so an additional 50% would obviously double that. Just so that he has the full picture, if all local authorities used the full premium, that would equate to about £42 million and therefore, in total, £84 million.

[Huw Merriman]

Does the Minister agree that the true test of this policy will be if council tax amounts actually go down? That will mean that individuals are not behaving in the manner that we just described and will be paying less, thus freeing up the property for those who need it.

[Rishi Sunak]

My hon. Friend makes an excellent point: that should be the long-term test of this policy. It is there to provide an incentive for individuals to bring those homes back into use and indeed, that is what we have seen. Empty properties overall have fallen in the last few years from 300,000 to 200,000, but in areas that are specifically subject to this levy, we have seen a 9% reduction in long-term empty homes since the measure was introduced. Hopefully, we will keep seeing that rate of reduction increase to eliminate as many empty homes as possible. My hon. Friend also raised the topic of foreign ownership. I am pleased to tell him that the Minister for Housing heard what he said and is aware of the issues. In his new portfolio, he is looking into that matter.

My hon. Friend the Member for Harrogate and Knaresborough (Andrew Jones), who is not in his place, touched on the importance of open spaces. Indeed, the new national planning framework particularly encourages increasing density where possible so that we can do exactly that and preserve our wonderful open spaces. My hon. Friend the Member for Harborough (Neil O’Brien) made so many excellent and insightful points that I do not have time to review them all, but I join him in paying tribute to the campaign groups that have brought the Bill about.