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

Simon Hoare Excerpts

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

[Bob Blackman]

Mr Broza’s view is that he might have to close his business as a direct result of this completely unreasonable demand and, as I have said, his is one of 30,000 businesses in that position.

Obviously, the various different charges levied on Mr Broza covered a number of years going back to 2015-16 and 2016-17. The 2017-18 rates bill was even more aggressive, because it took account of an increase in rateable value and the loss of transitional relief and business rates relief. He was placed in a position in which he was suddenly presented with a bill for £8,344.59 in one go, to be paid within the year, when he had previously been paying the princely rates of about £370 a month on one property and only £50 a month on the other. He was clearly encountering a draconian position.

When Mr Broza came to see me, I was shocked that he was being placed in that dreadful position. Clearly, overall, the Government were going to gain from this Supreme Court decision. Whether it is local government or national Government, overall the taxpayer was going to gain some £3,040.95 in one hit that was completely unbudgeted for.

Worse still for Mr Broza, he had budgeted that his business rates bill for the 2017-18 tax year would be zero. Of course, he was then told that he would have to pay £5,365.07 within five months of receiving the bill. I took up this case with the Chancellor, and I am pleased to say that the Chancellor saw the right way to proceed: small businesses in such a situation that have acted in a perfectly reasonable and lawful way should not be penalised by suddenly being hit with a dreadful windfall tax.

However, we have a number of problems still to resolve. I welcome the Bill, under which businesses such as Wienerworld will be returned to their previous position. However, the current position is that the London Borough of Brent, and other councils across the country, are still levying these punitive tax rates and demanding payment. So businesses are having either to find money out of their revenue to pay local authorities—to keep paying the business rates as they are—or to borrow the money in the hope and expectation that it will be returned to them. Either way, this seems unsatisfactory, given that the Government have made it clear they are going to correct the position for those businesses.

[Simon Hoare (North Dorset) (Con)]

My hon. Friend is making a powerful case on behalf of his constituent. Does he agree that quite a lot of these things illuminate the disconnect between decision making and policy making, and an understanding of how the business world, particularly the small, local business world, works? If there was better knowledge and understanding of that, some of these cases, to which he has rightly been drawing the House’s attention, would not arise.

[Bob Blackman]

I thank my hon. Friend for that intervention. Clearly, Government policy should always be driven in an evidence-based way and be sympathetic, particularly to small businesses, which are the lifeblood of our economy. However, we are dealing with a Supreme Court ruling here, as opposed to Government policy. I am pleased that the Government are trying to put it right, which is how this should work. The advice being given by officials from the Department is less than helpful in its current guise, because the correspondence we have had from the Department says that it cannot do anything until the law is corrected. That means that businesses are still being charged these business rates while the law is being changed. One thing the Government need to look at is finding a way of ensuring that people are not having to pay huge sums only for the valuations to be redone and for them to claim the money back, together with interest—there is also the bureaucracy to consider. Businesses just want to get on with their business, rather than sorting out the mess that has been created with their business rates.

The attitude of the London Borough of Brent to Wienerworld—I suspect this is shared by all local authorities across this country—is, “This is the decision. You are due to pay this money. You must pay it or else we will distrain against you to get that money off you.” That means small businesses in this country will go under as a result, and that is the concern. Obviously, the Government are moving as fast as they can to correct this position, but guidance needs to be given by the Department to local authorities on businesses that are suffering financial hardship as a direct result of a decision that was nothing to do with them, is not Government policy and needs to be corrected.

This is a problem in many parts of London, and it has been drawn to my attention that one area that will suffer heavily is Tower Hamlets, which has a number of businesses in respect of which the staircase tax is operational. This is one area where I have criticisms on this issue. Once the Bill becomes an Act and the law is corrected, the businesses will apply for revaluation. As I understand it, their revaluation will go back to 2010 if they so wish—it will probably go back at least to 2015. They will then get a revised bill, and probably a return of money and of interest, which is going to come from the local authority. I noted the Minister’s comment in reply to the Chair of the Select Committee that the position would be that local authorities have experienced a windfall. They have, but many local authorities are now going to have to repay that money once the law is changed back again and they have used that money. It is not money that they were not expecting, because they have had a judgment, and they have used this money in their budget. If the Government now say, “You’ve got to repay the money but we are not going to compensate you for that repayment”, that is a windfall to the Government—

--- Later in debate ---

[Bob Blackman]

I thank the Chair of the Select Committee for raising that issue. We are talking about 30,000 businesses, many of which will be concentrated in particular areas. We know that there will be a hit for some local authorities, which could be considerable. Hon. Members from across the House will not necessarily be aware of the potential hit for local authorities as a result.

[Simon Hoare]

My hon. Friend will know—if he does not, I will tell him—that I spent seven years doing the finance portfolio on a district council. When a local authority suffers from a flood, there is a Department-run fund they can make a bid to in order to cover the costs they have incurred due to those exceptional circumstances. Might that be an avenue for those local authorities? Might they be able to make such a bid in order to fill this black hole created in their local finances, which was not of their fault and which was unable to be predicted in their budgeting process?

[Bob Blackman]

Clearly, the Government and the Department have figures they can use to evaluate which local authorities are most affected in this way. It may well be that a threshold should be imposed, whereby if only a relatively small amount of money is involved a local authority could not claim it back. However, if a substantial sum is involved, as could happen in many of these cases, we should get to a position where the local authority is returned to where it should have been in terms of the expectation in its budget. My hon. Friend may know that I was in charge of the London Borough of Brent’s finances for many years, so I know the way the finances of that local authority work extremely well. The reality is that this will create a hole in Brent council’s budget, and I do not see why Brent should suffer as a result.

Let me turn to the empty homes premium. My hon. Friend the Member for North Swindon (Justin Tomlinson) asked in an intervention how we can ensure that local authorities can encourage empty homes to come back into operation, but without unfairly penalising those homeowners who are refurbishing their homes or converting them for other purposes, thereby making them temporarily empty for an extended period. We do not want those people to suffer any damage or be charged any financial premiums, but at the same time we do not want unscrupulous homeowners or landlords to keep a property empty, only to do some work when the local authority investigates, just to demonstrate that they are doing something, but still keeping the property empty for longer.

--- Later in debate ---

[Bob Blackman]

I am sure that colleagues across the House could come up with example after example of empty homes that could have been brought back into use many years ago. Some should possibly have been demolished and replaced—I have those in my constituency —but the sad reality is that we still have far too many empty homes that should be brought back into use. Those that are derelict and have not been used for literally decades are the first that we should penalise and look to bring back into operation.

Let me end by asking Ministers to look sympathetically at how we can compensate local authorities for the loss of revenue—we have suggested a means by which that could be done—how we can get guidance to local authorities so that they do not penalise small businesses because we are correcting the law in the interim, and how we can get to a position whereby some sensible decisions can be taken as quickly as possible and small businesses that face difficulties meeting their finances are given help and advice, rather than being closed down by banks and other operations that may wish to penalise them in that way. If we can do those things, this will be a good Bill.

[Simon Hoare]

My hon. Friend is being characteristically generous with his time. Does he agree that as all of us, as parliamentarians across the House, work with our local authorities to seek imaginative ways to address the shortage of housing, we need to be absolutely certain that those buildings that could readily be converted from retail to residential use, or in which the residential element could be extended, are not saddled with debts, burdens, judgments or whatever, which could preclude the successful delivery of that opportunity to increase the housing stock in sustainable locations in our town and city centres?

[Bob Blackman]

My hon. Friend draws the House’s attention to another unintended consequence of the decision to implement the staircase tax, which could preclude people who may wish to bring a retail unit into operation as a housing unit, which is something we should all welcome. That demonstrates that we have an opportunity across the House for improvement in both these areas.

Finally, I hope that we can look sympathetically at introducing the empty homes premium in a way that does not penalise those who are improving properties, but does penalise those who are deliberately keeping them empty for no good reason, so that we bring homes back into use and they are used properly, as we would all like.

--- Later in debate ---

[Eddie Hughes]

I am simply amazed. My hon. Friend is blessed either with psychic ability or intuition. That is the very point that I was about to move on to. In Beechdale, one of the wards in my constituency—

[Simon Hoare]

My hon. Friend seems to be saying something very nice and flattering to anybody who intervenes on him. As I have not had anything nice and flattering said to me today, I just thought that I would give him the opportunity to do so.

[Eddie Hughes]

All I can say is that I have been in the House for less than a year and I hope that, over the passage of time, I will develop the insight and eloquence of my hon. Friend. Unfortunately for the moment, Madam Deputy Speaker, you have to put up with this stuttering Brummie trying to work his way through his speech, and taking yet another intervention.

--- Later in debate ---

[Eddie Hughes]

I am not sure whether you noticed, Madam Deputy Speaker, but I think that my hon. Friend might have tried to sneak in a French word, or possibly a Latin one, just to prove how clever he is and to completely wrong-foot me. But I am having none of it: I am going to ignore that part and just agree with the point that he made. Clearly, whatever legislation we introduce, it is important that it is efficacious. I think we heard that word earlier; it is not one I use frequently.

[Simon Hoare]

If there were a prize for modesty, my hon. Friend would be declared the victor ludorum.

[Eddie Hughes]

See, Madam Deputy Speaker, I told you—I have had to totally recalibrate with regard to the intellectual approach of other Members. We certainly do not use much Latin around the table in my house. It may not have been Latin; who knows? It is probably important that I return to the Bill.

Anti-Semitism

Simon Hoare Excerpts

Tuesday 17th April 2018 Commons Chamber

[Andrew Gwynne]

Hold on.

No political party has a monopoly on vice or virtue, but we will put our house in order. Let me be clear today that if anyone is denying the reality of anti-Semitism on the left, they are not doing so with the endorsement of the Labour party or its leader. Prejudice against and hatred of Jewish people have no place whatsoever in society, and every one of us has a responsibility to ensure that they are never allowed to fester again.

I welcome the opportunity to debate this important issue today. It is sadly long overdue. My hon. Friend the Member for Bassetlaw (John Mann) has sought support from the Government to bring this issue to the House for several years, and I pay tribute to the work he has done in this House over a long time. I also pay tribute to the work of Rabbi Herschel Gluck and the Shomrim volunteers in London. Rarely do those men and women receive the recognition that they deserve for the commitment that they give to their communities. I also want to pay tribute to the Community Security Trust for its defending of our synagogues and our schools and for its continued work in shining a light on ant-Semitism in the United Kingdom.

[Simon Hoare (North Dorset) (Con)]

I am grateful to the hon. Gentleman for giving way. I assure him that the House will have recognised the honest sincerity with which he is addressing the issue and will have taken the tone of his remarks to heart. However, in this game of politics that we sometimes play, he will know that actions speak louder than words, and Mr Livingstone remains a member of the hon. Gentleman’s party. Mr Livingstone’s comments on this issue have become ever more eccentric. I know that the hon. Gentleman is not the decision maker on this, but I am sure he will take it from Members on both sides of the House that if the body politic is serious about this issue, Mr Livingstone’s speedy expulsion is required.

[Andrew Gwynne]

The hon. Gentleman knows that due process is going on and, as I have already said, the procedure needs to be speeded up. I am not going to get into politicking, and there has been some borderline politicking, but there are issues to resolve on both sides of the House. For example, there has been a complaint about the Conservative leader of Lancashire County Council in relation to anti-Semitic views. We all have a duty to call out anti-Semitism and to root it out, whether it is on the right or on the left.

Local Government Finance

Simon Hoare Excerpts

Wednesday 7th February 2018 Commons Chamber

[Jim McMahon]

I want to make some progress, because I am conscious of the number of people down to speak.

We need to ask a number of questions when faced with the settlement. First, does it step up to meet the scale of the challenges facing local public services in England today? Does it meet the challenge of 1.2 million older people who would have been entitled to social care in 2010 who no longer get the care they need? Does it meet the challenge of huge increases in the number of child protection and looked-after children cases reported by the LGA? After nearly a decade of Tory-dominated Government, does it begin to rebuild the essential community infrastructure that was taken away after the financial crash?

My view is that it fails on every one of those counts. The funding settlement today is little more than an insult. I want to put this into context—after all, we can have a party political debate about it and attribute blame, but that makes no difference to the day-to-day experiences of local councils.

[Simon Hoare (North Dorset) (Con)]

Will the hon. Gentleman give way?

[Jim McMahon]

I want to lay out the case, and then there will be a long time for debate—but only if I rush through this to allow time for people to speak.

Central Government funding of local services has reduced by 40%—less money when demand is increasing—and we all know that it has not been distributed evenly. The overall reduction has hit local authorities with lower tax bases hardest because they are more dependent on central Government grant. The UK Government’s total spending on local government, as a share of the economy, has fallen sharply. In 2010, it accounted for 8.4% of the economy; by 2022, the figure will be down to 5.7%, which constitutes a 60-year low. Yet councils in England still have 1,200 statutory obligations. They have less money, but the same is required of them. That has had an impact on people, in that 811 fewer people now work in local government. The local government workforce today is the lowest since comparable records began, when the central Government workforce is the highest that it has been since comparable records began. Moreover, the figures are not fairly distributed across government, let alone geographically.

If austerity had not kicked in and affected our local council base, councils today would have £14 billion more than they have. That would be sufficient to deal with the crisis in social care and the crisis in children’s services.

--- Later in debate ---

[Simon Hoare (North Dorset) (Con)]

I say, with apologies to Jane Austen, that it is a truth universally acknowledged that all councils complain about a lack of money to all Governments, irrespective of which party is in control. Like many colleagues, I served as a councillor. I was a district councillor for a dozen years and a county councillor for three, so I remember having to juggle the income reductions that started under a Labour Government in 2006-07. It just sort of happens.

I welcome the announcement that Dorset will receive an extra £1.2 million to deal with adult social care and that our total rural services delivery grant, which is hugely important, will be £1.5 million. I agreed very much with a lot of what the shadow Opposition spokesman said—I appreciate that he was not quoting his own commissioned report—but whichever idiot came up with the answer that the cost of delivering services in a rural area was equal to that of delivering them in an urban area needs to be certified, because we all know that geography and population sparsity lead to increased costs. I also welcome last week’s announcement by the Department of a successful bid to the housing infrastructure fund of £4.1 million, so it was not too bad a week of news for Dorset. I agreed with the hon. Member for Sheffield South East (Mr Betts) when he pointed to the huge debt of thanks that we parliamentarians owe to our councillors for the work they do, against the backdrop of a challenging financial position, in continuing to deliver services and to keep the wheels on the bus—if Members will forgive that analogy—at a time when incomes have been falling and savings have had to be made.

My constituency is served by three councils: East Dorset District Council, North Dorset District Council, and Dorset County Council. Although we have a two-tier authority, the county council provides, on average, 85% of the services enjoyed by the county. Over the last few years, my postbag, my inbox and visitors to my surgeries—as well as the leader and the chief executive of the county council—have made it clear that there is real, tangible pressure on the delivery of adult social services, services for children with special educational needs, and wider children’s services, as well as, of course, rural transport.

All the Dorset councils, district and county, have made great strides in reducing their costs and making themselves more efficient, and the tri-partnership between West Dorset, Weymouth and Portland, and North Dorset District Councils has made huge savings. The councils have cut through the fat and the flesh, have gone through the sinew and the muscle, have been chipping into the bone, and are now starting to suck out the marrow. They are trying to author the next steps of their future in order to deliver the services that hard-working council tax payers demand and need, taking account of the demographics, as 65% of my constituents are over the age of 70.

Those councils have submitted a proposal for the reorganisation of local government. They recognise that it is a question of not just trying to demand extra income, but of trying to deal with what they receive in a smarter and better way. The “two-unitary” solution for the county that we are seeking, which is with the Department at the moment, commands 62% of public support. It is supported by seven of the eight Dorset MPs and eight of our nine councils, as well as Bournemouth University, Poole Harbour Commissioners, the local enterprise partnership, Dorset chamber of commerce and industry, the clinical commissioning group, the police and crime commissioner, and the Dorset Association of Parish and Town Councils.

I plead with the Government. I entirely accept the need to reduce expenditure and to balance the books. I entirely understand why local government has shouldered a very large proportion of central Government savings. I support the Government absolutely in that endeavour: what Conservative who understands the importance of proper control of public money would not? However, I cannot stand by, and will not stand by, if the proposal that was submitted to the Government is delayed still further, or rejected out of hand. The continued provision of services for children and elderly people in my constituency is now solely reliant on this change, so it needs to be delivered.

Grenfell Tower

Simon Hoare Excerpts

Monday 5th February 2018 Commons Chamber

[Dominic Raab]

We are taking the technical advice, we are making sure we have the interim measures in place and we are making sure that the renovations that need to be done to keep those tower blocks safe are done as soon as possible, although that takes time because that requires construction services that have to be contracted. We are making sure that all that work is done. As I have said in relation to the wider question of building regulation, the review conducted by Dame Judith Hackitt will make sure that all those lessons are learned. We have already had the interim report. We have accepted those recommendations and we look forward to the full report.

[Simon Hoare (North Dorset) (Con)]

Decent people up and down the land will want to know that the Government, both centrally and locally, are doing all they can to ensure that people are safe in their homes. The Minister has set some of that out this afternoon. Does he agree that decent people up and down the land will not be expecting party political points scoring on this and people grubbing around for a vote or two?

[Dominic Raab]

My hon. Friend is right. As I said, I think it is perfectly reasonable to ask questions about the testing system and how we get it right. It is the leap into the other sensitive issues on which a range of concerted action has been taken that is wrong.