Showing every spoken contribution, including 5,750 under 12 words. Hide short remarks
I will make some progress. Labour Members sneer when we talk about living within their means. That is something that every single constituent of ours has to do. They have to make those tough decisions not to spend at certain points, or to save, or to work harder, but this Government do not even follow the principles that they ask their own constituents to adhere to.
Absolutely. My hon. Friend makes an incredibly important point and I really wish that the Government would be able to find that, but unfortunately, given the current Chancellor, I do not think that will be a possibility. The Government should be creating an environment for people to thrive; they should not be fixing people in an environment. Stamp duty is one of those taxes that literally locks people in place. We must learn that we need to be able to trust individuals, give them those opportunities and see true growth. So I fully support, as I hope everyone would, this motion on stamp duty land tax.
The hon. Member for Welwyn Hatfield (Andrew Lewin) talked about millionaires getting a tax cut, but we are talking about young families getting on the ladder. Does my right hon. Friend the shadow Chancellor agree that while Labour Members engage in the politics of envy, we will always engage in the politics of hope?
On helping Ministers with amnesia, does the right hon. Gentleman acknowledge that there was a pandemic that required a huge amount of intervention, or is he claiming that he would not have supported so many people during that period?
It is very interesting to follow the hon. Member for Welwyn Hatfield (Andrew Lewin), because I mentioned him in an earlier intervention. He knows that I fundamentally disagree with him. Abolishing stamp duty would be a tax cut for everybody, irrespective of the value of their houses. Fundamentally, we know that the housing market is gummed up, and I have serious questions about whether the Labour Government will be able to meet their housing targets. I am not sure what the housing numbers are currently—maybe he will be able to enlighten me—but this is fundamentally a tax cut that would apply to everybody. As my right hon. Friend the Member for Beverley and Holderness (Graham Stuart) said earlier, the speeches from Labour Members have been very interesting, but they are slightly siloed. They slightly miss out the context of what we are talking about: the economy is stalling, and the jobs tax means that unemployment has gone up. More hard-working people are now unemployed, and more young people are now out of work, as a result of this Labour Government. They can talk down this motion—as I am sure they will, because the Whips have told them to do so—but the reality is that we are putting something on the table that is credible and funded, that will un-gum the housing market, and that will contribute £1.2 billion-worth of economic growth. At a time when the Chancellor is scrambling to fill her own black hole, we are putting credible ideas on the table that the Government should take more seriously.
First of all, it would increase mobility in the housing market. As my right hon. Friend the Member for North West Hampshire (Kit Malthouse) stated in an incredibly eloquent speech, it would also mean that the construction industry and all the peripheral jobs would start to mobilise. It would create economic growth—I suspect that the figure of £1.2 billion is probably a bit of an underestimate, and that abolishing stamp duty would actually create more growth. We are talking about creating jobs, making people wealthier and being aspirational for the aspirational, whereas Labour Members are talking down a credible policy that would put money on the table for some of our poorest people. Ultimately, abolishing stamp duty would mean that more and more people are able to get on to the housing ladder. Let us face it: the Government are not going to meet their housing targets. It is already quite obvious that they are massively behind, and it will not be possible to meet their targets. They are killing off aspiration and confidence in the economy, and house builders will not want to meet the targets—unless, of course, they are met with huge subsidies. The question I have for those on the Government Benches is this: given the current economic situation, how much representation have they made to their Chancellor about introducing growth principles and cutting taxes so that people have more money in their pockets? The answer will be none, because that is not happening. The hon. Member for Loughborough (Dr Sandher) said that he was not making an argument for not cutting welfare, but he did not put a figure on the table. We know that the welfare bill is ballooning, and it started ballooning post covid. We intervened during the pandemic, which had to happen. We saved a £2 trillion economy, we saved businesses and we saved jobs. We did all those things—sometimes with the support of those on the Opposition Benches and sometimes without, I am sad to say—to save the economy. Of course, all of that comes with a cost. It is now right that we look forward to make sure that we are putting proposals on the table that help grow the economy and, by the way, help the Chancellor to get out of this mess. I want her to do better, because right now I have constituents who are struggling, who are anxious and who are worried. Her policies, backed by those on the Labour Back Benches, have contributed to higher inflation and a higher cost of living. These are all consequences that they backed by walking through the voting Lobbies. There is a Budget coming. Although Labour Back Benchers may be talking in silos, the Government are already briefing the papers about all the taxes that will rise. They talk about “serious Government”, but they are not talking seriously about the cuts that they will have to put on the table, because the Chancellor knows that the moment she does that, it will be her Back Benchers who stab her in the back. That is her fundamental conundrum, because she also has to placate the bond market, where we have highest bond yields. I see Labour Members shaking their heads, but that is the reality of what Back Benchers are dealing with. We are putting good proposals on the table that would mean that young families who want to get on the housing ladder—[Interruption.] I am happy for the hon. Member for Hitchin (Alistair Strathern) to intervene if he wants. No? I was offering him an opportunity, because I was getting distracted by his chuntering. The reality is that most serious economists, such as Dan Neidle and those at the Institute for Fiscal Studies, have said that stamp duty is a bad tax. In fact, the hon. Member for Swansea West (Torsten Bell), who I hear has been instrumental in writing the Budget, has talked about stamp duty being a “bad tax”. We all agree on that, so we have put a funded policy on the table that the Chancellor is going to need. Surely this is something that we should all take seriously, because the Government will need answers. I suspect we will come back to that. A lot has been made of the Chancellor’s fiscal rules. The Chief Secretary to Treasury said that they are “ironclad”, and I suspect they are until the next ones. We have a golden rule. In the spirit of rules, the Leader of the Opposition has created a golden rule, which is that for every £1 saved, half will go to cutting our national debt. Surely we can all get behind that. When the interest on our debt is something like £100 billion a year, surely we can get behind that. When the Chancellor is borrowing more month after month to meet everyday spending, as is obviously happening, we should get behind that rule. The last point I want to make is about the cliff-edge argument. As my right hon. Friend the Member for North West Hampshire mentioned, we had the window during covid. I was one of those on the receiving end of not being able to buy a house at that time. I was looking for a house for my new family, and houses were going quickly because people were trying to beat the cliff edge at the end of the stamp duty window. This proposal is not the same, because this gets rid of such a window, and it means that more and more people will be able to buy houses.
My right hon. Friend makes a good point, and I am sure the Liberal Democrat spokesperson will address it, but that speaks to the economic incoherence of what they have presented. Fundamentally, we believe in property rights. We believe in the ownership of property and the rights that derive from it, which are among the freedoms—the fundamental freedoms—in this country. It was a moment of great pride when I got the keys to my first house, and I am sure it is the same for others. Cutting stamp duty is the right thing to do, and if we win the next election, that is exactly what we will do.
Will the hon. Gentleman give way?
The hon. Member uses the word reckless. Has he heard the news that the OBR has said the Chancellor will have to find another £7 billion to £9 billion due to the fall in productivity? Therefore her black hole has just got bigger.
With over 26,000 farms in Northern Ireland, the value of farmland is incredibly high, if not higher, than in any other part of the United Kingdom. Does the hon. Lady agree that the negative impacts of changes to APR and BPR on Northern Ireland farmland will be much higher for those farming families than anywhere else across the United Kingdom?
A £1 million threshold is nothing when we take into account the value of farmland, a cottage, a farmhouse, growing crops, stocks in store, livestock and machinery valuations—all of which will be taken into account at the valuation of an estate on death. A £1 million threshold is nothing before a 20% IHT liability is put on that estate. I urge the Minister to look at this again. Farmland values are significantly higher in Northern Ireland, and I reiterate my point that Northern Ireland farmers will see a greater impact from the £1 million threshold.
The hon. Member talks about broken dreams, but no Government Member has spoken about the hard-working families in the middle—not the ones struggling to buy their first home and not the so-called rich people at the top who in the Government’s world this will benefit, but the hard-working families, who he has no doubt spoken to, who cannot buy a property with an additional bedroom for their growing family because of stamp duty. As my hon. Friend the Member for South Northamptonshire (Sarah Bool) referenced, that stamp duty is the difference between the price of the home they wish to buy and the dream of actually succeeding in doing so.
I am just perplexed as to where the hon. Lady is going with this. Ultimately, the statistics that she has just quoted would have saved her constituents £5,000, but if the Government do not scrap stamp duty, anybody who aspired to buy a slightly bigger house with that increased income would not be able to afford to do so.
Does my hon. Friend agree that when the policy was announced at our party conference in October, it was the first solid political idea to have come forward from any political party since the last election that genuinely offers aspiration for hard-working families? We are talking about not just hard-working families who need to get on the housing ladder in the first place, but those in constituencies like hers and mine who are desperate to expand their families and continue contributing to the society we all live in.
My hon. Friend speaks of intergenerational fairness. Does he agree that the status quo hinders older householders who may be asset-rich and cash-poor, because the value of their property has increased—fortunately for them—but not necessarily their income? Stopping this policy in its tracks would stop older people who may be desperate to downsize, knowing that to do so would be to play their part in providing homes for other families, but who simply cannot afford to because the stamp duty on more expensive properties is unpayable.
The hon. Member is making a powerful speech, as he always does. However, there is a gaping hole in his argument when it comes to people who are looking not for their first home, but for a bigger home, which may be a new property or a property that already exists. What would he say to his Taunton constituents who are in that middle bracket, given that he will be voting not to scrap stamp duty? That land tax will hinder them from taking a step up the ladder, whether by buying one of the many new homes that he admirably wants delivered in his constituency or by buying a home that already exists.
I thank my colleagues for their enthusiasm. It is a great pleasure to contribute to this really important debate. So many people—particularly young people—are desperate to get their foot on the housing ladder, but they feel—
I gently say to the hon. Member that I have not really got into the flow of my speech yet, either. I will finish the first sentence before I take any interventions. People feel that that vital first rung is utterly out of their reach. I remember when I bought my first property. It was the most amazing feeling in the world when I first walked through that door, with those keys. It was really hard to earn enough to secure the mortgage that I needed and to save up the money for the stamp duty and the deposit. I managed to do it, but I would have been able to do it sooner without that stamp duty cost. That is why I am delighted that the Conservatives have come forward with a clear, coherent and aspirational plan to abolish stamp duty land tax on the purchase of primary residences and to open up the dream of home ownership to the next generation.
I thank my hon. Friend for that pertinent point. This is proper Conservative policy. This is the kind of thing everyone in this country is clamouring for—[Hon. Members: “More!”] This party is delivering that under our new leadership. For too long, stamp duty has been a dead weight on the housing market, a tax on aspiration and a barrier to the kind of home ownership that gives people a genuine stake in their community. It is time that we abolished it on primary residences. Surely we can all agree that our housing market is not working as it should. Far too many young people feel locked out, priced out and increasingly disillusioned. The average age of a first-time buyer in England is now 34, up by nearly a decade from where it was 40 years ago. In London, it is even higher, and across the country 20% fewer 25 to 34-year-olds own a home today than was the case in 2000. I have skin in the game: I have three children and I want them to be able to buy a house without coming to mummy and daddy to help them out.
Yes, I should declare that interest. This amounts to an economic failure, but also to a social failure. Home ownership gives people stability, autonomy and long-term security. It encourages saving, it strengthens families and it fosters pride and a sense of genuine community in our towns and villages. Abolishing stamp duty will save families thousands of pounds and put the many benefits of home ownership back into reach for the next generation.
I will make that exact same point later in my speech, and I completely agree that that is a relevant change that will come from this policy. I clearly see in my constituency the way in which stamp duty chokes and distorts the market as it penalises those who move, creates a disincentive for older people to downsize and deters growing families from upsizing into more suitable family homes. As the Institute for Fiscal Studies has put it, in a crowded field, stamp duty land tax is “the most economically damaging tax in the UK.” I cannot disagree with that. My constituents feel that acutely. Stamp duty is all the more painful in an area where the average house price is now above £490,000. The young families I speak to, who have made the move out of London and settled in towns such as Redhill or Reigate, have been hit with eye-watering up-front costs that made those moves extremely challenging. Many more will have found it impossible. That is why our policy matters. We intend to strip away one of the fundamental barriers to family life in this country. Eliminating stamp duty will save the average first-time buyer in the south-east around £4,000 and as much as £18,000 in London. Unlike the Labour party, we will not punish those looking to move further up the ladder with frozen thresholds and stealth tax hikes. I would, of course, be expected to paint a suitably positive view of the proposal, but what do the experts think? Zoopla’s Richard Donnell has rightly said, “More home moves would support economic growth and the ambition to build more homes.” The Institute of Economic Affairs went further, calling this “the single best reform any government could make to Britain’s tax system.” Indeed, the case seems so strong that one has to wonder why the Government oppose us on this. The truth is that Labour has always been the party of higher taxes on homes. It reversed the Conservative policy that raised the first-time buyer threshold to £425,000. It is freezing stamp duty thresholds in real terms, dragging more and more people into paying this punitive tax each year. While it talks endlessly about house building, its actions tell a different story. Not only is it on track to miss its self-imposed housing targets, but the Housing Secretary tried to block 237 new homes in his constituency despite promising to “build, baby, build”. By contrast, the Conservatives have delivered 2.8 million homes over the past 14 years, including nearly 750,000 affordable homes, and we pledge to go further.
The hon. Member raises an important point. We have this situation where a lot of young people are forced to go elsewhere; indeed, the area where I live is very expensive and I am worried that my children will be forced to look elsewhere. That is why it is so important that we now focus on the future.
My hon. Friend makes the point very well. Going back to the hon. Member for Hexham (Joe Morris), we need to take this seriously. We can either look back the whole time, or we can look forward and think about what policies are right for the people of this country and deliver for the people of this country.
My hon. Friend’s excellent point is pertinent to my constituency as well, which is full of amazing and beautiful green-belt land. We are suffering from what this Government have done on housing targets, which have doubled in Reigate and Banstead while going down in London. That means that we are building more homes, but not for local people and not for the children the hon. Member for Hexham mentioned, who want to stay close to home. It is for people living in London who then move out to Reigate and Banstead.
I thank my hon. Friend for yet another relevant and important point. I urge the Government to think logically about what they are trying to achieve. We all support the ambition to build more homes and recognise the problem that needs to be solved. However, the way we do it is really important, and it is important that we have those homes in the right places and that we set the targets in a logical and meaningful way. With this policy, and others like it, we are offering the public a clear choice between a party that wants to unlock aspiration and reward the hard work of our young people and a party that clings to economically damaging taxes because its own Back Benchers refuse to make even the smallest concessions on out-of-control spending. We on the Conservative Benches are clear that any significant change to tax policy must be properly costed. The public finances are in a challenging place, and reckless commitments only add to the prevailing sense of uncertainty. That is why it is so important to emphasise that our intention to scrap stamp duty on primary residences is costed, fully funded and fully paid for through our £47 billion savings package. Our plan is clear: it is costed and it is rooted in a belief that home ownership should be within reach of the next generation, just as it was for our own.
As the Foreign Secretary knows, Hamas continue to terrorise the people of Gaza, carrying out summary executions and depriving people of aid. Terrorist tunnels and their infrastructure remain in place, so what role is the Foreign Secretary playing in negotiations and dialogue about the elimination of Hamas? What is the Government’s view on how the international stabilisation force will operate, and will the UK be playing a role in the board of peace alongside her former leader and friend, Tony Blair?
Speaking of challenging China, will the Foreign Secretary comment on the recent threats made by the Chinese Government towards Britain over the embassy application, the spy case and Taiwan, and will she tell the House whether there have been any meetings with the Chinese Government, British Ministers, Jonathan Powell and other officials in which they have discussed the now collapsed spy case? Has China at any point requested that the case be dropped, and will she now apologise for backing the embassy application?
Hayat Tahrir al-Sham traces its roots back to the barbaric terrorism of al-Qaeda, which caused death and destruction, and harm to our allies. Can the Foreign Secretary explain to the House why her Government have de-proscribed HTS, and does she believe that it is no longer a terrorist threat to the world?
Does the Foreign Secretary believe that this decision will lead to the destruction of all chemical weapons in Syria? She said that HTS will be judged on its actions. Will she look at putting conditions in place if it does not step up its actions, in the same way that America has done, with the sanctions that were lifted?
I agree with my hon. Friend strongly that the regulation will impact clubs both large and small, such as Bromley FC in my constituency. The financial impact will be quite onerous, with very little benefit. Would my hon. Friend agree that we should have a review of the impact of the regulator on smaller clubs such as Bromley?
Good morning, Sir John. I am asking for a genuine point of clarification from the Minister. The Library briefing says: “If an MP were appointed” to one of these boards, “they would be disqualified from membership of the House of Commons”. Why have the Government chosen to do that? There is no motivation behind my question; this is just for clarification.
I do not expect the Minister to know the answer this morning, but if she could write to me before the end of our sittings this week, I would be grateful. The reason I ask the question is that these are local audit offices for local authorities. The Secretary of State is appointing these boards, and there is obviously political oversight of those appointments, but it would seem sensible to have the expertise of someone representing the area. If this is a devolution Bill, appointing MPs would seem to be perfectly fine, so I am not sure why the Government are disqualifying them. If she could come back to me on that point, I would be most grateful.
I want to drill down into the perceived lack of scrutiny of the new combined authorities. The hon. Lady just said that they would essentially follow the current arrangements in local authorities. Is she saying that she is unhappy with the existing level of scrutiny in local authorities, or does she just want the added safety her new clause offers?
I hope that the hon. Lady will take a reasonable and responsible tone on this new clause. Will she tell her colleagues around the country, including those from Hampshire, to stop standing outside Parliament for mock photographs saying that the Conservatives want local elections delayed? Will she take my word and the shadow Minister’s word that, as I said last week and he will no doubt say this afternoon, the Conservatives are not calling for the delay of local elections? Will she stop putting out misleading leaflets across the country saying that we are?
Will the hon. Lady give way briefly?
I thank the hon. Lady; we can now resume our laughs together. We entirely agree with her on this issue. Will she comment on our debates during the Planning and Infrastructure Bill where it was clear that the Government were resisting allocating funding for drawing up neighbourhood plans? Does she agree that the protections of many of our rural village communities that are adequately and perfectly served by their parish councils will be reduced just because they want to put forward a sustainable plan about how they build in their area, meaning that fewer houses will be delivered in the long run if this funding is not reinstated?
Will the Minister give way on that point, as she referred to me?
Before the Minister uncharacteristically turned her guns on me, after remaining largely silent on the Committee this afternoon, I was about to say this. I believe that the hon. Member for Mid Dorset and North Poole has tabled new clause 43 not because of the funding that has been cut—even though I remember being a lead member during the previous Labour Government, when we experienced cuts—but because there are more town and parish councils being created through this reorganisation. Those new parish and town councils, which will have councillors who are unpaid volunteers, will have no infrastructure at all. The Government seek to expand and create town councils, but have taken away training and the ability to conduct their functions. What the Minister has outlined is not accurate, is it?
It is a pleasure to see you in the chair, Dame Siobhain. I was going to resist the temptation to have another say on voting systems in local government, but I saw this new clause and could not resist it. Smoke would otherwise come out of my ears at how ridiculous a suggestion this is. I will outline briefly why, and I will declare an interest—I am against it, and I have made that clear throughout the Bill Committee. The hon. Member for Stratford-on-Avon, speaking for her party as she has done throughout this Committee, very ably suggested, promoted and proposed this new clause. I agree with the hon. Lady that many people in my constituency, the half of my constituency in Eastleigh, do not think they are properly represented in local government. However that is not because of proportional representation. It is because of the dire decisions of the Liberal Democrat administration of Eastleigh borough council. I agree with her about my constituents in the Eastleigh side of the constituency, who just do not feel properly represented.
In part, because the Liberal Democrats put out six leaflets a year that do not tell the truth about what is actually going on, and make a mockery between the relationship between truth and non-truth. The residents of Eastleigh get those six times a year. Unfortunately the hon. Lady will know that because the Liberal Democrats are so electorally successful in Eastleigh, the association of my local party, though we do our best, are like ducks with little feet under the water trying to compete. However I guarantee to her that when local government reorganisation comes, the reign of Keith House, who is one of the longest serving local government leaders in the country—he has been in power longer than Kim Jong-Un, although I do not argue he goes to the same extremes—will come to an end, and I say thank God for that. On proportional representation—