Property Taxes

Debate between Daisy Cooper and Sarah Dyke

Wednesday 3rd September 2025 Commons Chamber

[Daisy Cooper]

Again, I absolutely agree with my hon. Friend. I recall—as I am sure he does—that in the previous Parliament, we Liberal Democrats tabled a number of amendments to legislation introduced by the Conservatives, to try to make that happen. Unfortunately, those amendments were not accepted by the now official Opposition.

In principle, a land value tax could help address land banking. All of us in this House say that we want to build on brownfield first, but of course, part of the problem is that big developers can land bank. We Liberal Democrats have repeatedly tried to table amendments to ensure that local authorities could buy that land at land value, rather than hope value. In principle, there are some merits to at least considering a land value tax, but the devil will be in the detail. If the Government bring forward any such proposals, we will scrutinise them closely.

There are a couple of major omissions from the official Opposition’s motion, one of which—as I have already outlined—is business rates. Business rates are a property tax facing small businesses, and the business rates system is broken. We have heard repeated promises, both from the previous Government and this one, that business rates will be fixed, so it is incredibly disappointing that as yet, we have not seen an ambition to replace the business rates system. Instead, we have seen tinkering around the edges, and the Government’s proposals will potentially make business rates a little bit worse, particularly as they will target hospitality. There is another major omission: the motion should refer to giving local authorities real power to regulate the location and number of short-term lets, particularly in the south-west and Cumbria, but also in many other areas.

[Sarah Dyke (Glastonbury and Somerton) (LD)]

Queen Camel Community Land Trust is working to create much-needed homes in south Somerset, but it is often hampered by lack of access to finance and an outdated planning system. Does my hon. Friend agree that this Government should focus on community-led development to deliver the affordable homes that are so greatly needed—homes that communities want, and will appreciate?

[Daisy Cooper]

I agree. We are discussing property taxation, but of course, taxation on its own without a broader vision for property may well lead us towards the kind of fiasco we had with the jobs tax. There absolutely should be a community-led planning system, rather than the top-down planning system we had under the previous Government, and have under this one, too.

In my constituency of St Albans, Airbnbs are a real problem. A previous Conservative Housing Secretary gave approval for offices to be turned into blocks of flats, but local authorities were given no power to control how that happened. That means that many young people who get a job in my constituency cannot afford to take it up unless they live with mum and dad. They cannot even afford to rent a place, let alone get on the housing ladder. It is absolutely essential that the Government not only come forward with a registration scheme for short-term rentals, but give local authorities real power to regulate the number and location of Airbnbs, so that we can get the balance right between tourism and homes for young people and others who want to live where they work.

Family Businesses

Debate between Daisy Cooper and Sarah Dyke

Wednesday 26th February 2025 Commons Chamber

[Daisy Cooper]

I am grateful to the hon. Member for raising those points. Our high streets are the beating hearts of our communities all over the UK. There is real concern that when the national insurance contribution changes and the reduction in the business rates relief kick in, our high streets will be absolutely hammered and we may indeed see tumbleweed. That matters for two reasons: there will be an impact on our local economies and that could have a knock-on impact on people’s confidence. Many people with busy lives do not always get to follow headlines about growth, inflation, interest rates and all the rest, but they do look to their high streets as the primary signal of whether or not the economy is working for them and whether it is working in their local area.

In hospitality, of course, it is not just the increase in the national insurance contribution rates that will have an impact. The changes will also mean that many part-time workers will not be recruited to work in those businesses. That will impact in particular women, people from ethnic minorities and young people. Young people often work in hospitality as their first job. Often hospitality can give them the chance to work after something adverse has happened in their life. I think all of us in this House can say that we support hospitality, and it is vital that we continue to support it.

[Sarah Dyke (Glastonbury and Somerton) (LD)]

My hon. Friend talks about businesses run by women. I have a constituent who runs a nursery in Somerton. She has been struggling to stay afloat for some time, after issues relating to the Conservative Government and the impact of the increase to national insurance contributions. The announcement on nursery provision could be the last straw for her business. Does she agree that the Government must urgently look at the impact their measures are having on the early years sector?

[Daisy Cooper]

I am grateful to my hon. Friend for that contribution and I absolutely agree. The House has debated many times the impact of the national insurance contribution rise. Colleagues may remember that the Liberal Democrats tabled a number of amendments to exclude particular groups. We are opposed to the NIC rise full stop, and we put forward alternative ways in which the Government could raise the revenue, but we said that if the Government were intent on pursuing that particular measure, then some organisations should be exempted. We pointed in particular to health and care providers, including social care providers, but we also talked about early years providers, universities, charities and hospices. We have debated such things many times, and we urge the Government once again to look very closely at the impact of the NIC rise and to do the impact assessment that we all so desperately want.