House of Commons · Bill Debate
10 January 2023 · 21 other contributors
Opened by Victoria Atkins Con Louth and Horncastle
Summarised by AI from the official record, so it can contain mistakes.
Victoria Atkins raised concerns about finance bill - new clause 3 in the House of Commons. Other MPs contributed to the debate.
Key points
MPs spoke in turn to share their views and ask questions. Here's what each person said.
Opened the debate
The amendment proposes that the Chancellor of the Exchequer publishes an annual report on the impact of the Act on the number of second or subsequent homes in National Parks and Areas of Natural Beauty. This would ensure a regular assessment of how the new tax relief policies are affecting these areas, which is crucial for maintaining their character and accessibility.
Mr. Gale supports the amendment and emphasises the need to monitor the impact of temporary relief on second homes in National Parks and Areas of Natural Beauty, ensuring that policies do not inadvertently harm these regions.
Mr. Swayne interjects to seek reassurance from the Minister about making the tax relief permanent, highlighting his support for long-term assistance for first-time homebuyers.
Mr. Chope points out that the original commitment was to make the tax relief permanent, but it has since been changed to a temporary measure, expressing concern over the reversal of policy.
Mr. Gardiner suggests that stamp duty rates could be adjusted based on energy performance certificates to encourage more sustainable housing and support the Government's target of a 78% reduction in greenhouse gas emissions by 2035.
Farron supports the Opposition amendments that restrict stamp duty cuts for second homes. He emphasises the unintended consequences of such policies on local communities, highlighting the impact on workforce availability in social care, health services, and tourism industries. He calls for a yearly review to mitigate negative effects.
Intervened to commend the Welsh Government's approach, which includes a land transaction tax that imposes higher rates on second or third home purchases as a disincentive. Also mentioned that local councils can choose to increase council taxes significantly in areas of high housing pressure.
The proposed stamp duty cut will cost £3.2 billion annually, which is not a responsible use of public funds given the economic context. First-time buyers are unlikely to benefit significantly due to rising mortgage rates, whereas second home buyers would receive substantial tax cuts up to £2,500 per transaction. The bill fails to address the root issues affecting first-time buyers and does more harm than good.
The interjection highlighted concerns about the decline in home ownership rates among young people, questioning Labour's approach to addressing this issue. The focus on second homes is noted but does not address broader challenges faced by first-time buyers.
Mr Mackinlay argues that reducing stamp duty land tax encourages property transactions, which in turn boost local economies and create jobs. He expresses concern over SDLT's impact on labour mobility and retirement downsizing, suggesting a need for downsizing relief for older people moving to smaller homes. Additionally, he proposes addressing capital gains tax barriers that prevent the sale of second properties, advocating for their release into the market for first-time buyers.
Morgan supports new clauses 4, 6, and others proposed by Farron. She highlights the rural housing crisis caused by soaring house prices and shortage of affordable homes, impacting communities in North Shropshire severely. She cites figures showing that rural house prices rose by 14.2% compared to urban areas’ 6.8% growth in 2021, with 132,000 fewer young homeowners in rural England since 2010 due to lack of affordable housing.
Chope argues against the Government's amendments to the Finance Bill, suggesting they will reverse a tax reduction and increase taxes by £1 billion annually from April 2025. He proposes new clause 7 for reassessment before expiry date, highlighting inconsistencies in policy direction regarding tax reductions and asset sales. He emphasises stamp duty land tax as arbitrary and unfair, impacting affordability of homeownership especially in higher-priced areas like Christchurch.
Intervenes to support the Government's commitment to levelling up, suggesting it addresses issues of transport links disparity in rural areas like Chope's constituency. She aligns with Conservative principles of levelling up.
Intervenes to point out the potential unpopularity and unfairness of abolishing stamp duty land tax in regions like Wellingborough compared to Christchurch, highlighting regional disparities.
Intervenes to agree with Chope's critique of the Government's failure on enabling homeownership and dismisses any suggestion that he was crowing over Conservative failures.
Saxby acknowledges the need to address housing issues but questions whether reducing stamp duty for additional dwellings will significantly change property investment behaviour. She highlights a 67% decline in private rentals and the misuse of section 21 by landlords exploiting tax inequalities between long-term and short-term rental properties. Saxby seeks more realistic measures, such as changes to the tax system, to encourage buy-to-let landlords.
Mr. Browne supports the general aim of reducing stamp duty to promote home ownership but suggests a more nuanced approach, such as increasing taxes on second properties while cutting them for primary residences. He cites the Institute for Fiscal Studies and Lord Macpherson's evidence on the negative economic impact of stamp duty. Mr. Browne also raises concerns about revenue loss from abolishing stamp duty entirely.
Mr. Farron questions why the Government did not support an earlier amendment to distinguish between first and second homes for planning purposes, suggesting it could protect local housing supply.
Mr. Chope agrees with Mr. Browne's argument about differentiated tax rates and raises concerns about regional disparities in house prices affecting first-time buyers.
The Minister argues that the abolition of stamp duty on additional property purchases would impact rental supply and raise costs for tenants. She supports practical measures such as council tax premiums to address issues in popular tourist destinations, emphasising fiscal responsibility.
The hon. Member questions the effectiveness of current measures addressing second home ownership issues, citing evidence that the 2020 stamp duty cut fuelled a boom in second home purchases. He calls for mitigating actions to support rural communities like his own.
Mr Nigel Evans expresses concern that removing stamp duty relief for second homes could undermine efforts to support investment in property markets and may lead to reduced liquidity. He argues that the measure would disproportionately affect retirees who choose to downsize and purchase a holiday home.