Council Tax and Stamp Duty Alternatives Debate
Full Debate: Read Full DebateRobbie Moore
Main Page: Robbie Moore (Conservative - Keighley and Ilkley)Department Debates - View all Robbie Moore's debates with the HM Treasury
(1 year, 5 months ago)
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It is a pleasure to serve under your chairmanship, Mrs Harris. I thank my hon. Friend the Member for Barrow and Furness (Simon Fell) for securing this important debate. Like other hon. Members, I feel that council tax needs to be reformed, but I want to limit my contribution to the nuanced empty homes premium that exists in the current council tax structure, which is unfairly disadvantaging many of my constituents in Keighley and Ilkley and many people across the country.
Since 2013, local authorities in England have had discretionary powers to charge additional council tax on properties that are unfurnished for two years or more, with more tax being charged the longer the property is unfurnished. In my constituency, Bradford council charges 200% after two years, which rises to 300% after 10 years. The policy might have been introduced for all the right reasons at the time: discouraging individuals from banking multiple properties, and encouraging empty homes to be brought back into the fold. However, that tax hike has had unintended consequences.
As the housing market is being squeezed and young families struggle to get on the housing ladder, that additional tax on home buyers—particularly on young families who might want to buy an empty property, renovate it and do it up, but are unable to do so in the two years of free time that they have before the 200% kicks in—makes it unachievable. When many are struggling to get builders and contractors in, and might find difficulties because the home is not in the condition they thought it would be in and they have to make it adequate and fit to live in, the 200% increase through the empty homes premium is having a negative impact on the many householders who want to do up their properties.
There is also an impact when individuals want to sell a property but cannot sell it within the period of time that the home is vacant. The Treasury has indicated that that is something that it is likely to review; the levelling-up White Paper is also looking at reviewing it. My plea to the Minister is that he look at the negative consequences of the empty homes premium when carrying out a further report.