Stamp Duty Land Tax
Jonathan Hinder Excerpts(3 days, 17 hours ago)
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Jonathan Hinder (Pendle and Clitheroe) (Lab)
Let us get straight to the point: what we are discussing today is a Tory plan for tax cuts for the better off, with no plan to pay for it. That is what the Tories have chosen to spend their Opposition day on.
My constituents are frustrated by the stark regional inequality in our country that means that London and the south-east are, economically speaking, another country all together. They lament the lack of public investment in transport, infrastructure and skills that this Labour Government are seeking to put right, so it is staggering that the Tories have chosen to propose tax cuts for people buying expensive homes in London and the south-east, further entrenching that regional inequality.
In the north-west, the average house price is about £200,000; in London, it is over £550,000. That means that 95% of first-time buyers in the north-west of England do not pay stamp duty, whereas 80% of them in London do. These are, let us be clear, the priorities of the same old Conservative party we have always known: the protection of wealth in the south-east above the concerns of constituents such as mine. Where would their supposed spending cuts fall? The motion does not tell us, so we can only assume that they would fall on public services in areas such as Pendle and Clitheroe.
The funny thing is that I am a strong advocate for serious property tax reform, but the Tories are not proposing to address the most unfair, regressive tax in Britain, which is council tax. Our council tax system punishes working-class people in the north precisely because they live in a poorer area. Can you believe, Madam Deputy Speaker, that someone living in a £1 million London townhouse will pay £1,000 less per year in council tax than a constituent of mine living in a house worth £250,000? It bears repeating—£1,000 less for someone who lives in a £1 million London townhouse than for someone who lives in a £250,000 house. That is outrageous, and if the Conservatives were still a serious party, perhaps they would focus on council tax, which is so emblematic of the regional inequalities I have just mentioned. Those inequalities have condemned once-prosperous regions of the country to steady economic decline.
The Conservatives will not do so, though, because they quite literally no longer represent regions such as mine. Looking across the Chamber, I cannot see a north-west Conservative MP, but that is not surprising, because there are now only three—they are a rare species, just as Conservative MPs are in many other regions outside the south-east. The Conservatives’ answer remains the same as it has always been: that growth in the south-east will lift up constituencies such as mine. “Make those with wealth wealthier and everyone else will benefit”, they say, but that economic thinking has failed time and again.
Jonathan Hinder
I am going to finish.
Property taxes in this country do need radical reform—on that, I hope I can find allies on all sides of this House. We need a more proportional property tax, but the Tories’ hare-brained idea to scrap stamp duty—a big tax cut for the better-off in the south-east—with no plan to pay for it, while leaving the regressive council tax untouched, is just not serious.
Oral Answers to Questions
Jonathan Hinder Excerpts(10 months, 4 weeks ago)
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Rachel Reeves
I agree it is important that all children learn to swim, especially in our coastal communities. We had to make difficult decisions at the Budget, but I am happy to try to arrange a meeting between the hon. Gentleman and the relevant Minister to make sure the investment can go ahead at pace.
Jonathan Hinder (Pendle and Clitheroe) (Lab)
Connor Naismith (Crewe and Nantwich) (Lab)
The Exchequer Secretary to the Treasury (James Murray)
To deliver our manifesto pledge, we intend to introduce permanently lower tax rates for high street retail, hospitality and leisure properties from 2026-27. This tax cut must be sustainably funded, so we intend to introduce a higher rate on the most valuable properties—those with a rateable value of £500,000 or above—from 2026-27. The Non-Domestic Rating (Multipliers and Private Schools) Bill, introduced last month, will enable the Government to deliver these changes, and it will come into effect in April 2026.
Jonathan Hinder
High streets in my Pendle and Clitheroe constituency were hollowed out under the last Conservative Government, with many shops left empty. Small, independent businesses are the backbone of our local economy, employing local people, keeping our towns vibrant and giving them their character and charm. Can the Minister assure me that multinational giants will pay their fair share under Labour, levelling the playing field and enabling our high streets to thrive?
James Murray
My hon. Friend is absolutely right about the importance of small, independent businesses in his constituency, and I am sure his sentiment is shared by Members across the House. Through our reforms, we are setting out to make sure that those properties with a rateable value of £500,000 or more pay so we can have a permanent tax cut for high street business. This category includes the large distribution warehouses used by online businesses, which will make sure that those online businesses make a fair contribution to ensuring that our high streets are the success we all want to see.