Business of the House

Steve Double Excerpts

Thursday 12th November 2020 Commons Chamber

[Mr Rees-Mogg]

As I said in answer to my hon. Friend the Member for Shipley (Philip Davies) last week, it is a terrible concern for people when they face flooding, and recurring flooding. That is why the Government have an unprecedented plan of expenditure—I think that over £5 billion will be spent on flood relief, and that Yorkshire will get the largest amount. I understand that the hon. Member for York Central (Rachael Maskell) has specific concerns, and I will certainly pass those on to the Secretary of State.

[Steve Double (St Austell and Newquay) (Con)]

For too long, second home owners in Cornwall and elsewhere have been able to avoid making any contribution to local services by registering their homes as businesses, thus avoiding council tax, and then benefiting from small business rate relief. The sense of injustice has deepened this year as some of the second home owners have gone on to benefit from the grants that the Government made available to support businesses through the pandemic. In 2018, the then Local Government Minister, who now happens to be the Chancellor, stated that the Government would look into closing that loophole. Can we have a ministerial statement to update the House on what action the Government are intending to take to close the loophole as soon as possible?

[Mr Rees-Mogg]

I know this is a matter of significant concern to my hon. Friend. The Government are aware of the concerns that some second homes that are also available for letting are listed by the Valuation Office Agency as non-domestic properties and therefore liable for business rates rather than council tax. Depending on their rateable value, many of these properties qualify for small business rate relief. The Government have consulted on possible measures to strengthen the criteria that need to be satisfied for holiday properties to be assessed for business rates, and the Government’s full response will be set out in due course.