(1 week, 6 days ago)
Commons ChamberUrgent Questions are proposed each morning by backbench MPs, and up to two may be selected each day by the Speaker. Chosen Urgent Questions are announced 30 minutes before Parliament sits each day.
Each Urgent Question requires a Government Minister to give a response on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
Dan Tomlinson
The changes at the Budget led to a reduction in the tax rate paid by businesses on the high street. That was a result of the reforms that this Government have brought in. We have been clear about the need to start the work to rebalance the business rates system to support our high streets. Because the pandemic relief is being unwound over the coming years—something that the previous Government would have done overnight in 2025, had they won the general election—and because of the increase in business rate values as we come out of the pandemic, some businesses are seeing increases in their bills. We have capped those increases significantly this year and over the coming three years, providing £4 billion of support. On the hon. Member’s point about updates being made in the usual way, it is of course possible for Ministers to make statements in the House.
My hon. Friend is absolutely right to say that the Opposition have no credibility on this issue. We know that had they won the election, either we would have seen these increases quicker, or the black hole would have been even bigger. None the less, it is true that many pubs are really concerned, and are under the impression that further help is coming. They are trying to make accounting decisions right now. Can he say any more about whether their bills will be exactly what they are expecting right now, or whether further help will come before April?
Dan Tomlinson
I am grateful to my hon. Friend for making the important point that the last Government had no plans to continue to extend the pandemic support. As for his other question, I will not comment today on the speculation. He and others can see the words that the Prime Minister and the Chancellor have said about this matter at the Dispatch Box and during various media interviews, and I have no more to say about it.
(3 months ago)
Commons ChamberThat’s how you do it! That is how you actually have a position—it is the wrong position, but at least it is a position. The hon. Lady keeps talking about unfunded tax cuts, but she is getting her language back to front. We do not fund a tax cut, because it is the British people who fund Government spending, so when Government spending is eased, it eases the burden on the British taxpayer. It is spending that needs to be funded, not a reduction in spending.
I will reinforce what I thought were a number of strong interventions in support of the motion. I was struck by my hon. Friend the Member for Windsor (Jack Rankin) speaking about his own experience trying to get on the housing ladder and how his enthusiasm was diminished by the realisation that stamp duty was going to make it even more difficult. The hon. Member for Pendle and Clitheroe (Jonathan Hinder) made a legitimate point that this tax affects different parts of the country very differently. He made the fair point that there will be many parts of the country where it is not typical that people pay stamp duty land tax, or a significant quantum or scale of it, but that is not a good reason to deny this reduction in cost to those people in the country who do. Although there might not be many in his constituency, I guarantee that he would not have to travel far before he starts to meet people who are being dissuaded from purchasing properties because of stamp duty land tax. Certainly for Members representing constituencies near big cities, wherever they are across the country, or constituencies in the south, significant numbers of people pay this tax.
It has been mentioned by many Conservative Members—too many to single out—that this proposal would positively impact not just the people who pay, or may pay, stamp duty land tax. I guarantee that almost all of us can imagine the streetscape that I am about to describe from our constituencies. There are perhaps Victorian or Edwardian semi-detached or detached houses on what used to be the periphery of the town or city before it expanded beyond that. It will typically be a band of properties populated disproportionately by older couples or older people, who have often been in the constituency for many decades. Their children have moved out and they are now under-occupying those properties with two, three or perhaps even four bedrooms spare, but they are deterred from downsizing because they fear the stamp duty that they will have to pay. Estimates show that 2.8 million people would consider downsizing—or rightsizing, as my hon. Friend the Member for Windsor said—if stamp duty were removed. We would then have a ripple effect throughout the housing market, freeing up family homes for people who are currently in overcrowded accommodation.
Not only that, but the London School of Economics estimates that for every housing transaction, an estimated £6,000 of economic activity is pumped into the local market, with local builders doing refurbishments, perhaps doing extensions and fitting new bathrooms and kitchens, and people buying soft furnishings and white goods—the sorts of things that people buy when they move. What type of business typically provides those goods and services? It is local businesses—small and medium-sized enterprises embedded in their communities. These are the people who are being denied economic activity because this tax is stifling the property market.
We need liquidity in the property market. We need people buying and selling. We need people spending money with local businesses in local shops across the whole of the country. That is what reducing the tax burden on people does; it is what removing the stamp duty land tax will achieve.
Yet on the Government and Liberal Democrat Benches, Members are contorting themselves to find excuses not to reduce this burdensome tax, and I genuinely do not understand why. Some 2.8 million people could release their homes on to the market; if each of those homes had two or three spare bedrooms, that would immediately eclipse the 1.5 million homes that Labour is desperately trying to convince the country will be built under its tenure. It could be done almost immediately, without a brick being laid, and—more importantly—without the need for any Government subsidy.
That is what the House is saying no to, but not those on the Conservative Benches. We on these Benches understand aspiration. The Conservative party has always been the party of aspiration. We have always been the party that helped people to get on and up the housing ladder—a noble and normal aspiration, and one that we support, even if other hon. Members do not support it.
The right hon. Gentleman wonders why this might not have happened. It might be something to do with the 14 billion quid that he has not worked out how the Government will find. If it was so easy, why, in all those days before covid, did his party never do it in 14 years?
It was the Conservatives who reduced the stamp duty burden—something that was reversed almost immediately when Labour came into office.
The simple truth is that the Conservatives have always been the party of home ownership and aspiration: helping people to have a stake in not just the country and the economy, but their local communities; helping parents to stay closer to their own parents so that grandparents can see their grandchildren; creating flexibility so that when job opportunities are created around the country, people can actually move to those jobs without facing a financial penalty for doing so.
That is what is at stake. That is what we are proposing. That is what the Conservatives will continually fight for, even in the face of opposition from Labour—a party that should be about aspiration and used to be about aspiration, but which has lost its way, drifted from the path of righteousness, and, if Labour Members do as they claim today, a party that will oppose the removal of what is regularly described by economic experts as the single most damaging tax on our books.
I will conclude with this point. [Interruption.] I can continue if Members want. [Hon. Members: “More!”] No, I will conclude on this point. If Members opposite and to my left—both physically and metaphorically—are unwilling to countenance the removal of what is pretty much universally described as the single most counterproductive tax, what tax will they remove?
The mask has slipped. Labour cannot and will not bring themselves to reduce any taxes. The British people will notice this, and so will the markets. The unwillingness of the Labour party to make any difficult decisions with regard to public spending or the reduction of the tax burden on the British people is not just painful for taxpayers themselves. It will be painful for our children and grandchildren, who are going to pay increased amounts of money to fund the spending that, as my colleagues have said, is the only way that the Chancellor can try to dig herself out of this hole. That will be a burden on generations to come.
I suspect we will divide on this motion, and when we do the choice will be between a party that seeks to support aspiration, families, small businesses and the building trade, and those parties that oppose all those things and will increase the tax burden on British people, our children and grandchildren, and indeed the great-grandchildren of people alive today. That is not what my party is about or what this country should be about. I urge all those who want to do right by small businesses and future generations to support this motion and scrap this deeply counterproductive tax. I commend the motion to the House.
(1 year, 1 month ago)
Commons ChamberI beg to move,
That this House regrets that increasing the rate of employers’ National Insurance contributions (NICs) to 15%, and reducing the per-employee threshold at which employers become liable to pay NICs on employees’ earnings to £5,000, will lead to increased costs for businesses and lower wages for employees, including in particular young people; will force companies to cut employment, leading to some 130,000 job losses according to Bloomberg Economics; will increase costs for retailers by £2.3 billion according to the British Retail Consortium, leading to higher prices for consumers; will create an annual additional bill of £1.4 billion for charitable service providers according to the National Council for Voluntary Organisations, so they will struggle to maintain support for vulnerable people; and will increase childcare costs for families; further regrets that the Government has not published its complete assessment of the effect this policy will have on the public and private sector, or indeed any impact assessment; and regrets also that, as a result of the Government’s economic policies, GDP forecasts are down, inflation is up and business confidence is down.
“Growth” was the leitmotiv of the Labour party. Its members chuntered on about it during the run-up to the last general election, and in their manifesto, under the heading “Kickstart economic growth”, they said that they would secure the highest sustained growth in the G7. They also said—and I know that you like a good joke, Madam Deputy Speaker, but I would ask you to contain yourself—that they would forge a
“new partnership with business to boost growth everywhere”.
Given what has happened, those are fantastical statements. Reading Labour’s manifesto was somewhat like stepping through the looking glass. It had something of Lewis Carroll about it. This lot were less the Prime Minister and the Chancellor than the Walrus and the Carpenter, cruelly leading businesses to their demise. For all the fantasy in the manifesto, they might just as well have spoken
“Of shoes—and ships—and sealing-wax—
Of cabbages—and kings—
And why the sea is boiling hot—
And whether pigs have wings.”
Because what happened to growth? The Office for Budget Responsibility tells us that the Budget will lead to less growth across the forecast period than was the case back in the spring under the last Government. The Office for National Statistics tells us in the third-quarter GDP data that the economy grew by 0.1%—one seventh of the growth in the United States. In the third month of that quarter, which was September, growth was actually negative. That is the record of this Government.
The right hon. Gentleman talks about the OBR figures, but he fails to mention that his party misled the OBR to the extent that it had to put the failure in writing. Given that he is talking about Lewis Carroll, is it not true to say that the figures that the OBR was working with were more likely to have been received from the Mad Hatter?
That is an amusing intervention, but it is thoroughly inaccurate, I am afraid. The OBR did indeed look into the suggestion that there was a black hole of £22 billion, and what did it conclude? It concluded that the fiscal pressure in that year was less than half that amount. The OBR readily accepted that had it had discussions with Treasury officials about that at the time, it may well have reduced the amount still further. Members from across the House know that it is not unusual for the Treasury to manage down in-year fiscal pressures as a matter of course, so the argument has been debunked. It is the dead parrot. It is pushing up the daisies. It is no more.
The hon. Gentleman’s point is indicative of what this Government have done: they have talked down the UK economy. In turn, business confidence has slumped in a way seldom seen in our history, with purchasing managers index surveys falling through the floor. We have seen the Institute of Directors’ optimism tracker scoring minus 60 in November—one would have to go back to April 2020 to find a lower score than that. We also know that at the centre of the Budget is the biggest broken promise of all: the increase in employer’s national insurance contributions. That is weighing on growth.
And what of jobs? Labour’s fantastical manifesto talks about job creation, which is mentioned several times, but the Government are destroying jobs by breaking a manifesto commitment. It was there in black and white in their manifesto that they would not raise national insurance. Do not take my word that they breached their manifesto; take that of Paul Johnson of the Institute for Fiscal Studies, who says precisely the same.
We have factored small businesses into the design of our policy, in terms of both employer national insurance contributions and our commitment to permanent lower rates for business rates than were given under the previous Government, as well as other support for the high street. We are also expanding eligibility to the employment allowance by removing the £100,000 eligibility threshold to simplify and reform employer NICs so that all eligible employers can now benefit.
Changes to the employment allowance mean that around 250,000 employers will see their national insurance contributions liability decrease, and more than 1 million will pay the same or less than they did previously. Overall, that means that more than half of businesses with NICs liabilities will either see no change or will gain overall from the package. That design was put in place specifically to protect the small businesses that the hon. Gentleman raises. That means that 865,000 employers will not pay national insurance at all, enabling them, for example, to employ up to four full-time workers on the national living wage and pay no employer NICs. Employers will also continue to benefit from employer NICs relief, including for hiring workers aged under 21 and apprentices aged under 25. To support veterans, the Government are extending the national insurance contributions relief for employers of qualifying veterans for one year to April 2026, and we have set aside funding to protect the spending power of the public sector, including the national health service, from the direct impacts of the changes.
Even after accounting for the impact of this change, the OBR expects real wages to rise by 3% between now and the end of the forecast period, but we recognise that there will be impacts on employers. While many small businesses and charities will be protected through employment allowance, others will have to contribute more. There will also be impacts beyond business, as the Office for Budget Responsibility has acknowledged.
My right hon. Friend and I spent many years in opposition, and have spoken in many Opposition day debates. Does he agree that when the Opposition move a motion like today’s, which says that the Government should not do something without making any alternative suggestion about what they should do, it is a sign that the Opposition have not worked out their answer to the question? At some point, I hope that the Opposition will be able to help the country and the Government by having some policies, but does he agree that, until they do, the Government will just have to crack on as best they can on their own?
I agree with my hon. Friend, and I encourage Opposition Members to put forward proposals. I am all ears. I am willing to listen to them, but so far all we have is opposition and no policies. Maybe that will change in the future.
The motion claims that the Government have not set out any impact assessment of the policy change, but the Government published a tax information and impact note on 13 November that explained the Government’s assessment of the policy, including its impact on businesses and the economy more widely. This was a difficult choice, and it is not one that we have taken lightly, but it is the right choice given the dire economic inheritance that the Government faced upon taking office, and the need to fix our broken public services. As the Chancellor set out in the Budget, healthy businesses depend on a healthy NHS, and a strong economy depends on strong public finances.
I am glad to hear that Liberal Democrats support the extra money for the health service, special needs education and social care. I apologise for my impatience, because I am sure the hon. Member is just about to get there, but can she tell us where the £25 billion should come from if not from this national insurance rise?
I welcome that intervention. In the debate on the National Insurance Contributions (Secondary Class 1 Contributions) Bill yesterday, I addressed that question head on. I will try to remember my notes, which are sitting with Hansard. The hon. Gentleman will be aware that the OBR has said the £26 billion is actually reduced to £10 billion when behavioural changes and rebates to the NHS and care are factored in. On raising that £10 billion, we have said we would reverse the tax cuts that the Conservatives gave to the big banks, raising £4 billion. We could raise a further £3 billion by increasing the remote gaming duty and the digital services bill.
We set out proposals in our manifesto to reform capital gains tax in a different way from the Government. Our measures would have raised about £5 billion, so unlike the Conservatives—who did not set out the impact of the £10 billion to £20 billion of cuts that, based on their manifesto, would have been inevitable—we as a constructive Opposition have set out suggestions. I urge Labour Members to take up our ideas, if not in this Budget then certainly in the next.
We are approaching Small Business Saturday, when I am sure we will all be in our constituencies talking to small business owners. We know that small businesses are the engine of our economy and the backbone of our communities, and in many cases, they make our high streets what they are. When it comes to health and care businesses, though, I am concerned that this measure takes with one hand and gives back with another, but with no guarantee that the money that comes back will cover the costs. As such, I urge the Government to rethink these changes to national insurance contributions, but if they do not, I urge them at the very least to exclude health and care providers from these measures.
(2 years, 7 months ago)
Commons ChamberThe hon. Lady may want to belittle the fact that 400,000 more children and 200,000 more pensioners have been taken out of absolute poverty, but I think that that is an important achievement, and I am proud of it. I also think the hon. Lady should recognise that the primary causes of the inflation we are seeing are international factors that are affecting many other countries, which is why we are also seeing interest rates rise across the world.
The 8,600 mortgage holders in Chesterfield whose mortgages have increased by an average of £1,900 a year will be very conscious that in the Chancellor’s responses he has been very happy to blame global factors, but that when he is asked about specific countries such as France and Germany—the major European nations where outcomes are not as bad as in the UK—he quickly deflects and says, “Let’s talk about Australia or Canada.” Will he answer the question that my right hon. Friend the Member for Leeds West (Rachel Reeves) asked? Will he explain why it is worse for my constituents in Chesterfield than it is in France, in Germany and in other countries he has been asked about?
The truth is that Members can pick countries in Europe where things have not been as severe as they have here, but they can also pick countries in Europe where things have been more severe, such as the 14 EU countries that have higher core inflation.
(2 years, 7 months ago)
Commons ChamberThis Government are focused—and this is what our constituents want to hear—on halving inflation, growing the economy and reducing the debt burden. From today forwards, that is the action we can take that will see interest rates falling sooner, reduce inflation and get us back to a position of economic growth. I am sure the hon. Lady wants that for her constituents as much as I do.
The Conservative party once prided itself on being the party of homeowners. The fact that we long ago ran out of Conservatives asking questions makes it clear that Tory MPs realise they have nothing to say to those people. Does the Minister realise that my constituents who are desperately worried about the cost of their mortgages will not have heard a single word from him to suggest that things are going to get better as a result of this Government’s actions?
I can absolutely reassure the hon. Gentleman that the Government are focused on his constituents, even if his colleagues find it useful to ask the same question again and again. We are focused on not making the sort of unfunded spending commitments—such as the £28 billion that the right hon. Member for Leeds West (Rachel Reeves) herself described as “reckless”—that would really cause difficulties for mortgage holders in Chesterfield and across the United Kingdom.
(2 years, 9 months ago)
Commons ChamberI thank the hon. Member for her intervention. She has outlined lots of situations that we hear about every day from our constituents, yet the Conservatives say that their economic plan is working—it is clearly not working. The resulting rise in interest rates and the economic instability have added £500 a month to first-time buyers’ bills. For too many, dreams of home ownership and starting a family have been destroyed—another pillar of the good life knocked away.
My hon. Friend is absolutely right to point to the Chancellor’s suggestion that the Government are the optimists and we are the declinists. In fact, are the optimists not those people who have taken on a mortgage and achieved that dream of home ownership, and who are being so cruelly let down by the incompetence of this Government?
My hon. Friend is absolutely right. We have to ask the Conservatives how they can continue to live in this fantasy world, because it does not match the reality on the ground. Let us not forget the impact of rising prices. Food prices are growing 50% faster than anywhere else in the G7, putting Britain’s food inflation rate at 19.2%, compared with an average of 12.8%. The price of sugar is up by an incredible 42%. Milk is up by more than 33%, and pasta is up by 25%. The UK has the highest inflation level in western Europe. That is a national scandal.
(2 years, 10 months ago)
Commons ChamberThis is a comprehensive plan to remove the barriers to work facing those on benefits, those with health conditions and older workers. That is the E of the employment pillar of today’s growth budget.
Which brings me to the final pillar of our growth plan. After employment, enterprise and everywhere, I turn to the E of education. Over more than a decade, this Conservative Government have driven improvement in our education system. We have risen by nearly 10 places in the international league tables for English and maths since 2015.
In the autumn statement, I built on this progress with an extra £2.3 billion annual investment to our schools. We are reviewing our approach to skills with Sir Michael Barber. We have set out our plans to transform lifelong learning with a new lifelong loan entitlement and my right hon. Friend the Prime Minister announced plans to make maths compulsory until 18. But today I want to address an issue in our education system that is bad for children and damaging for the economy. It is an issue that starts even before a child enters the gates of a school. Today I want to reform our childcare system.
We have the one of the most expensive systems in the world. Almost half of non-working mothers said they would prefer to work if they could arrange suitable childcare.
For many women, a career break becomes a career end. Our female participation rate is higher than average for OECD economies, but we trail top performers, such as Denmark and the Netherlands. If we matched Dutch levels of participation, there would be more than 1 million additional women working. And we can do that.
So today I announce a series of reforms that start that journey. I begin with the supply of childcare. We have seen a significant decline in childminders over recent years— down 9% in England in just one year. But childminders are a vital way to deliver affordable and flexible care, and we need more of them. I have listened to representations from my hon. Friend the Member for Stroud (Siobhan Baillie) and decided to address this by piloting incentive payments of £600 for childminders who sign up to the profession, rising to £1,200 for those who join through an agency.
I have also heard many concerns about cost pressures facing the sector. We know that is making it hard to hire staff and raising prices for parents, with around two thirds of childcare providers increasing fees last year alone. So we will increase the funding paid to nurseries providing free childcare under the hours offer by £204 million from this September, rising to £288 million next year. That is an average of a 30% increase in the two-year-old rate this year, just as the sector has requested.
I will also offer providers more flexibility in how they operate in line with other parts of the UK. So alongside that additional funding, we will change minimum staff-to- child ratios from 1:4 to 1:5 for two-year-olds in England as happens in Scotland, although the new ratios will remain optional with no obligation on either childminders or parents to adopt them.
I want to help the 700,000 parents on universal credit who, until the reforms I announced today, had limited requirements to look for work. Many remain out of work because they cannot afford the upfront payment necessary to access subsidised childcare. So for any parents who are moving into work or want to increase their hours, we will pay their childcare costs upfront. And we will increase the maximum they can claim to £951 for one child and £1,630 for two children, an increase of almost 50%.
I turn now to parents of school-age children, who often face barriers to working because of the limited availability of wraparound care. One third of primary schools do not offer childcare at both ends of the school day, even though for many people a job requires it to be available before and after school. To address this, we will fund schools and local authorities to increase the supply of wraparound care so that all parents of school-age children can drop their children off between 8 am and 6 pm. Our ambition is that all schools will start to offer a full wraparound offer, either on their own or in partnership with other schools, by September 2026.
Today’s childcare reforms will increase the availability of childcare, reduce costs and increase the number of parents able to use it. Taken together with earlier Conservative reforms, they amount to the most significant improvements to childcare provision in a decade. But if we really want to remove the barriers to work, we need to go further for parents who have a child under 3. For them childcare remains just too expensive.
In 2010, there was barely any free childcare for under-fives. A Conservative-led Government changed that, with free childcare for three and four-year-olds in England. It was a landmark reform, but not a complete one. I do not want any parent with a child under five to be prevented from working if they want to, because it is damaging to our economy and unfair, mainly to women, so today I announce that in eligible households in which all adults are working at least 16 hours, we will introduce 30 hours of free childcare not just for three and four-year-olds, but for every single child over the age of nine months.
The 30 hours offer will now start from the moment maternity or paternity leave ends. It is a package worth on average £6,500 every year for a family with a two-year- old child using 35 hours of childcare every week, and it reduces their childcare costs by nearly 60%. Because it is such a large reform, we will introduce it in stages to ensure that there is enough supply in the market. Working parents of two-year-olds will be able to access 15 hours of free care from April 2024, helping about half a million parents. From September 2024, that 15 hours will be extended to all children from nine months up, meaning that a total of nearly 1 million parents will be eligible. From September 2025, every single working parent of under-fives will have access to 30 hours of free childcare per week.
Order. Mr Perkins, stop it.
(3 years ago)
Commons ChamberThis is the challenge, because some people think that this would adversely affect them. When we were looking at whether we should change the domestic rating system, we always faced the problem of the people who were going to be worse off, who were always the losers and who were going to complain. I accept that, were this to be implemented in the way I am canvassing, it would create some losers who would be unpleasantly surprised. That leads me to my belief that SDLT and stamp duty should be abolished altogether. [Hon. Members: “Hear, hear.”] That is an issue on which we, as real Conservatives who believe in a homeowning democracy, should be able to agree—and it seems from that response that we can agree on it—rather than dividing again in trying to find an alternative to an already unsatisfactory tax.
Let us remind ourselves that, in the 1980s, when we had the beginnings of the property-owning democracy revolution, with more than 50% of people in the 25 to 34 age group being homeowners, we had a stamp duty regime where the maximum rate to purchase any house was 1%. Since this process started under the Blair Government and continued with the coalition—the Treasury is always seeing this as a cow to be milked for taxpayers’ benefit—the proportion of people able to afford to buy their homes has declined significantly. So the challenge I make to the Government, and I hope the Minister can respond to this, is: if we put stamp duty back to 1% as a maximum, what would that do to increase the number of transactions in the housing market, which, as others have said, is ostensibly the Government’s agenda?
On 23 September, HMRC’s policy paper “Stamp Duty Land Tax Reduction” set out the following policy objective:
“This measure is part of government’s commitment to support homeownership and promote mobility in the housing market, in turn supporting economic growth. Increased property transactions also add to residential investment and spending on durable goods.”
Unfortunately, that was withdrawn on 28 November. It would be interesting to know whether that policy objective has been retained by the Government even though the HMRC policy paper has been withdrawn. Another paper issued on 23 September was “The Growth Plan 2022”, which I thought was great, as did many of my constituents. Paragraph 3.30 of the plan stated that the changes to SDLT would
“take 200,000 homebuyers, including 60,000 first-time buyers, out of SDLT entirely.”
Today, however, we are discussing a proposal by the Government, by way of amendments to the Bill, that would put those 200,000 home buyers, 60,000 of them first-time buyers, back into SDLT. Do we really want to do that? Do we really think it will help to move the housing market, boost growth and help people to have the mobility to get to new jobs?
This is not just about people being able to move to a new job by moving house; we also need to think about the damage to the environment being done by the large number of people who are now, having no alternative, being forced to engage in long-distance commuting. Last week, I visited a school in my constituency. The teacher showing me around has been driving regularly from Wales to do a great teaching job in the Christchurch constituency. Fortunately, she is about to move into the constituency, but that is after many, many months of that long-distance commuting. That is highly undesirable. It is bad for the environment and bad for the people involved, because it means that they are sitting behind the wheel of a car for far too long during the working week.
Stamp duty land tax is targeted against homeowners and it will have an adverse effect on labour mobility. Yet the Prime Minister, in his speech on 4 January, was complaining—I agree with him on this—that a quarter of our country’s labour force is inactive and, in this Bill, he is introducing an additional tax on the very mobility that he should be espousing. As my hon. Friend the Member for South Thanet has said, SDLT is a tax on downsizing: it makes it much more difficult for anyone to receive a significant return by selling a larger house and purchasing a smaller one.
My biggest complaint, though, is that the provision hits hardest those for whom homeownership is least affordable. The latest figures, produced by the House of Commons Library in December, show that, in Christchurch, the average house price is now 11.8 times earnings. The national average in England and Wales of eight times is bad enough, but why are we imposing that extra burden on those buying houses in places such as Christchurch? The latest figures from the 2021 census show that the dream of a homeowning democracy espoused by generations of Conservative politicians since Margaret Thatcher, and first raised in 1975, is not one of this Government’s priorities.
I think it is very sad and embarrassing that His Majesty’s loyal Opposition should be crowing at that statement.
Just to clarify, I am not remotely crowing. I entirely agree with the hon. Gentleman. This Government have hugely failed on allowing people to buy their own homes. It is a national disgrace. I support what he is saying; I am not remotely crowing.
I accept that I used the wrong expression in suggesting that the hon. Gentleman was crowing. But may I set out the basis on which I have these concerns? In the Prime Minister’s speech on 4 January, there was not one mention of the word “housing”, let alone any mention of the expression “home ownership”. Why is that? We obviously have a real crisis in housing and home ownership on our hands. We are facing a potential fall in house prices this year—predicted by Oxford Economics to be about 12%, but who knows? Having stamp duty land tax, even at temporarily reduced levels, will mean that the burden of the reduction in house prices will be borne by those people trying to sell to a greater extent than would otherwise be necessary, because potential purchasers will have to budget for making SDLT payments to the Government.
You can tell, Mr Evans, that I am very concerned about the Bill. When I see that the Prime Minister has declared that the people’s priorities are the Government’s priorities and that we will rebuild trust in politics through action, all I can say is that I do not believe that the new measures in the Bill accord with the people’s priorities because I think those priorities are for a permanent reduction in stamp duty land tax and even, potentially, the abolition of that tax, rather than reintroducing it at a higher level in 2025.
When I was talking earlier today to a member of the Government’s Treasury team, I was told that one reason why my amendment (b) could not be accepted by the Government was that it had not been cleared by the Office for Budget Responsibility. I ask rhetorically, “Who is in charge?” Are we really saying that the Office for Budget Responsibility is able to forecast things to the extent of £1 billion here or £1 billion there? I do not think it can, and if that is the best that the Government can do in arguing against amendment (b), I hope they will think again about whether to accept it.
(3 years, 1 month ago)
Commons ChamberOn a point of order, Madam Deputy Speaker. Once again we have had an Opposition day debate where the Government have refused to vote. We had an incredibly important motion in front of the House, on a matter of significant importance and interest to my constituents. In the first seven years I was in Parliament, we always had votes on Opposition days, and this is one of the ways that the Government are undermining the House of Commons and refusing to listen. The motion was passed by the House and contains a specific request, which the Government will go on and ignore, as they have done before. Has there been any discussion by Mr Speaker about reasserting the position of this House? It was never the case in the past that the Government ignored Opposition days; in fact, the Blair Government changed the policy on Gurkhas as a result of an Opposition day debate that they lost. Has there been any discussion about reasserting the voice of Parliament, so that when the House passes a motion, the Government listen to it?
I thank the hon. Gentleman for his point of order. I am sure he is well aware that a motion such as the one we have just passed would not be binding. As he says, it was the case that Governments might participate a little more in the votes than they have recently, and it was the case some time ago that the Government agreed to give a response to motions that have been passed. It is up to individual Members and the Government to decide whether they wish to participate in votes; it is not the job of the Speaker to compel them, which I am sure the hon. Gentleman appreciates as well. I am not aware of any current discussions with the current Leader of the House, but perhaps the hon. Gentleman could raise this issue in business questions if he wished, and I am sure that those on the Treasury Bench will have heard his comment.
(3 years, 2 months ago)
Commons ChamberAbsolutely, I will. Of course, it is not just about the cash settlement; it is about the interaction with other pots of money that are being spent, particularly in the health service, which is at the top of my mind and the Chancellor’s mind as we concentrate on what to do on Thursday.
The Government are committed to helping as many first-time buyers on to the housing ladder as possible. We are investing £11.5 billion in building more of the affordable homes that the country needs. First-time buyers can access first-time buyer’s relief for stamp duty land tax, which means that 90% of first-time buyers need pay no stamp duty at all.
For so many younger people, even those on really good wages, the idea of owning their own house is now a pipe dream. We have 1 million more people in private rented accommodation and, since 2010, 800,000 fewer under-45 households own their own home. What is it about 12 years of Conservative government that has been so brutal for young people with ambitions to own their own home?
The Government are very conscious and very supportive of people’s desire to own their own home, which is why we have made so many interventions on affordability. Underlying that is the strength of the economy, which offers great employment prospects for those who seek to work hard, to save and, ultimately, to purchase their own home. We are on their side.