Lord True
Main Page: Lord True (Conservative - Life peer)Cities and Local Government Devolution Bill [HL]
Lord True Excerpts
Lord Marlesford (Con)
My Lords, the noble Baroness, Lady Hollis, has identified a problem that many of us would recognise. The extremely good system of council tax needs updating. She proposes in her amendment that the Secretary of State commissions an inquiry and produces some proposals. I have to some extent anticipated this because I have produced a scheme for dealing with this problem. The problem is—as the noble Baroness described—that it is not acceptable in today’s world that the most expensive property pays only three times the amount of the humblest and cheapest property. The very fact that there is a differential between band A and band H shows that the principle of taxing according to value is accepted. I say that because I know the views of my noble friend Lord True on property taxes. I am not particularly keen on any taxes but council tax was a very elegant and successful successor to the poll tax, which was a political disaster. I believe that we need to update it in a way that is not unduly retrospective and most of all that does not require the great bureaucracy of a revaluation. Since the old days of the rates people have always worried about the huge task that a revaluation would involve. That is why my proposals are somewhat different.
I start with the table as it is, which is bands A to H. Band A starts at up to £40,000, as was done in the original April 1991 proposals. The highest band H starts at £320,000, which is today a meaningless figure in terms of property values after inflation. I am suggesting that there should be new bands. They would still be called A to H and there would be a greater rate of progression than one to three. I have set this out in my Bill. My Private Member’s Bill has been lucky enough—I came seventh in the ballot out of 42 or 43 Private Members’ Bills—to get a Second Reading date, which is Friday 11 September this year. I hope that some of your Lordships may be kind enough to come to that occasion and to speak on it.
Basically I am proposing that there be a considerably greater rate of progression between band A and band H. Equally, I have set bands that are much more in accordance with today’s values. Band A will go up to £250,000 instead of £40,000, band B will be £250,000 to £500,000, band C £500,000 to £1 million, band D £1 million to £2 million, band E £2 million to £5 million, band F £5 million to £10 million, band G £10 million to £20 million and band H will be more than £20 million. These valuations are relevant to today’s prices.
Originally the Government put a rate of six for band A. They did this for arithmetical reasons so as not to have fractions. They made band H 18—three times band A. I also start band A at six and therefore under my scheme there will be no change in the tax paid from the present time up to the value of £250,000. Thereafter I go up to eight instead of seven. That is a 33% increase for properties between £250,000 and £500,000 as opposed to a 17% increase. In other words, taking it nationally, band A—give or take £100 —is £1,000 a year. So band A is currently £1,000 and band H is currently £3,000, give or take a differential for different local authorities.
So I would be having about £1,300 as opposed to about £1,200 for my band B. But when it gets up to the higher figures and the top level—say band G, where it is £10 million—there would be a considerably greater progression. Instead of being only 2.5 times, it would be 16.7 times. And when it gets to the astronomical figures, even by today’s values, of £20 million, band H would be 42 times as much as band A. So band A would still pay £1,000 and band B would be paying £1,300; it would then go up progressively, but more rapidly as it gets higher. For example, for band F, which is £5 million to £10 million, it would be eight times—and then it goes up to 16 times followed by 42 times. So there is a considerable progression at the top.
The great thing about my idea is that, instead of having a valuation, you take the values or the actual prices paid for the properties. All the properties are on the land registry, which came into full operation on 1 April 2000. It will apply to half of all the dwellings in England, using the actual values paid—and I should amend the Bill so that it applies only to England and not to Scotland and Wales. The other properties will migrate to the new system as and when they change hands. So there would be two bands operating side by side; there will be the present bands A to H, which go up three times, and the new bands A to H, which go up 42 times.
Nobody will be on the new bands unless that is the known price that they have paid. Even if it is a very expensive house, it is very unlikely that back in 2000 it would have been anything like as expensive, so there is a natural evening out so that it does not appear vigorous and savage when first introduced. The other properties will migrate as and when they change hands, whether that is by sale, gift, inheritance or anything else.
It is a neat system, because it would require no valuations at all. I think that it would come into force in a way that people would find fair and acceptable. We have to do something, and this is my suggestion for something.
Lord True (Con)
My Lords, I was referred to by my noble friend and although I was not going to speak on this amendment—I have made only one speech in the course of this Bill—I was provoked to speak by what was said by the noble Baroness opposite. I am afraid that I am not going to follow my noble friend in trailing a great speech on 11 September, but I look forward to participating in that debate. I think that he is too wise an old bird to assume that he really knows everything about the council tax—but, if he wants to hear it, I shall be there on 11 September.
I was provoked by the noble Baroness opposite, who was quite open in what she said—that she wants more money and more tax. She said, “We need more income”. It was cloaked in the marvellous language of equity, but it was actually the true language of the party opposite. Does my noble friend on the Front Bench agree that, having been seen off on the mansion tax by the British people not very long ago, the noble Baroness is leading the charge to get back at the British people by other means, behind the front doors of their homes?
Lord Beecham
It is right to begin the Opposition’s response to this issue by reminding the House that the noble Lord, Lord Heseltine, to a large extent removed the poll tax and replaced it with the council tax, which was a distinct improvement, although it must be said that the council tax contains an element of the poll tax within it. That is what leaves us in an anomalous situation, more than 20 years on, with this now outdated tax base.
Lord True
My Lords, since we are told that this is a probing amendment, perhaps I might be probed. I come with apologies to the House at this late hour, particularly to the Minister, who has done an absolutely outstanding job in leading the House through the Bill. However, when the amendments on London were tabled in Committee at the last possible stage, a lack of notice prevented me attending. Perhaps as leader of a London borough, a member of the leaders’ committee of London Councils and one who was present at the meeting that has been alluded to several times, I might be allowed to speak for rather longer than I would otherwise do. I will try not to test the patience of the House, but the issues are important.
A meeting of the London congress, lasting one hour and in the presence of mayor Boris Johnson, is not a suitable occasion for dissecting in detail a document that is laid before the committee. It is true that yesterday at the congress of London Councils, with the mayor, general assent was given for discussions to continue on the potential strands of devolution in London. We believe that boroughs can and should do more. However, assent to continuing work in progress should not be taken to indicate universal consent by all those present and all the boroughs represented to all that is on the table or, if I may say so, some of the things that may be lurking in briefcases under the table.
London is very different from other areas being considered under this Bill. It already has a very powerful elected mayor and a regional government. It has scrutiny arrangements and a London Assembly, which is imperfect in many ways, I agree, but which for now exists—although I wonder about putting two forms of government or congress alongside each other. It also has 32 London boroughs, about which Whitehall and others are sometimes rather sniffy. Many of those boroughs freely co-operate and we know no law to make us do so. My own borough shares services with Merton and Kingston. We run joint children’s services as a community interest company with Kingston, which is monitored by a joint committee supervising those services across the two councils. We are also setting out joint staffing with Wandsworth. Working with Wandsworth, we will be larger than Newcastle and Luton combined, and certainly bigger than Bristol or Manchester City Council. We are only one sector of a huge and hugely diverse capital. The boroughs have a legitimate place and voice and should not just be shuffled aside in these discussions.
I can confirm that valuable discussion is ongoing between the Government, the Mayor of London and London Councils, which we support, about potential strands of devolution. It is unfortunate that, sometimes, the geometry of these discussions is asymmetrical. For example, some of the more eccentric elements in what was a curate’s egg of ideas on planning published last Friday were discussed by the Government with the mayor but not with London Councils, the powers of which are to be overridden by the mayor. That does not create the climate of trust that is vital to success in devolution discussions between different levels of authority.
I referred to the diversity of our capital and the diversity of the strands of the policy being discussed, which have been listed by the noble Lord, Lord McKenzie. In my submission, it is unlikely that, over such a vast canvas of place, policy and authorities, a single statutory institutional model will fit every contingency. It is already obvious that, in London, some areas of policy, under the Little Red Riding Hood garb of devolution, actually mask the wolf of centralisation, whether up to City Hall or further up the pecking order in the bureaucratic jungle. We need to know exactly how we are to proceed in these critically important areas under discussion. Work could begin now and has already begun across London without the need for statutory institutions in many of these areas. We should get on with it and not inhibit those authorities that are already trying to do things by navel-gazing too much over the legal text. I do not subscribe to the amendments before the House; nor do I, or my group on London Councils, subscribe to the text put forward for the governance model for London.
There is a clear conflict in some areas—I have referred to housing and planning—between devolution and centralisation. These issues are not easily resolved, but they have to be discussed. They will be harder to resolve if the illusion persists that the boroughs are the problem. If we had had the power in our borough to develop some dormant and semi-dormant public sector land, it would have been developed long ago. It would have been developed with provision for local schools and amenities that some of the proposals advanced last Friday sadly lacked. Why can we not give a council the right to acquire public sector land that is not used? The value of the land could remain vested in the state, and we could just get on with a community brief that delivers some of these houses and schools and things that people want. Why is it that local boroughs—London boroughs—are too often just put in the firing line and told that they are not part of the debate? I ask that they should be.
The massive expansion in the population of London that is now envisaged must be addressed on a regional basis, considering infrastructure, travel to work and so on. It is like the expansion in the Victorian era. It simply cannot be contained by pouring concrete within the line of the GLA borders drawn on a map. It is bigger than just the Mayor of London, the London boroughs and the nation. Of course a great many things will have to be done within the London boroughs and the London area. We all acknowledge the need to play a part in that, but we need a broader discussion. If we confine it to this, we will miss many points.
I will not go into the details of the amendments. They have been explained at some length by the noble Lord, Lord McKenzie. I do not agree with them; they are premature. Amendment 75C, as I read it, locks any committee that is formed into existence on terms that may be varied, whereas its duties may be dissolved only by legislation. Although councils have to consent to go in, the fact that it is statutory gives the Government of the day a lock on a committee’s dissolution. In that sense, it is rather reminiscent of the euro. Once you are in, you are in. Hence, in my view, there is a need for prior consent. It is a one-way lock that the noble Lord is putting forward. There are some very worthwhile experiments and ideas on devolution under consideration, but those ideas may or may not work. Their success will depend on whether future Governments sustain the revenue streams in the areas they propose to devolve. That is something on which no Government have a great record.
Devolution is a great idea. I am all for it if it is what it says on the tin, but I and, I know, a number of other London leaders of a similar mind will want to see a little more of the nature of the contract before we sign or consent freely to a statute’s being passed into law. It would be a very difficult world if we were to be given these new functions, about things where we were required by law to fill holes the Government or the NHS later left behind. We might find ourselves being forced to cut even faster things we are already called on to reduce.
I do not want to appear wholly negative. I am not negative. I think this is a very worthwhile discussion. There is good, positive work in progress. But I hope no one is under the illusion that everybody is already signed up to the details in the small print. I do not think it should be pre-emptive or placed in any statutory gridlock before full and general consent from the London boroughs.
Some strands of these policies may be able to be advanced more quickly than others. But I am a realist: I understand the appetite of City Hall to keep control and not devolve fully. But I am also a localist and I think my right honourable friend the Secretary of State is, too, so I hope that careful thought will be given to balancing those factors as we look to the future in our capital instead of, as all too often happens when a new policy is made and when there is a great idea, as there is underlying this Bill, people going forward insisting on a single-institutional answer and trying to force varying and diverse problems, policies and solutions into one straitjacket.
Let us finish what is already on the table before us in the Bill before bringing in London, before calling for another not quite yet properly cooked dish of London pie and mash. It is not quite ready yet; do not let us rush it out of the kitchen, appetising though the pie and liquor may well be, if we can get to the point of agreeing the solution.
Baroness Williams of Trafford
My Lords, as discussions on these amendments have demonstrated, the ideas for devolution in London to London councils are interesting and varied. As I have explained many times in previous debates, there is an expectation that local areas will do just that and come forward with proposals to support devolution for their areas, and of course London is no exception.
I know that London boroughs and the Greater London Authority are working on a package of reform proposals, and I was very pleased to meet the noble Lord, Lord Tope, and others—I think that it was last week; time goes very strangely in this House—and interested to hear their thinking. We expect boroughs and the GLA to come forward to us with those proposals in the coming months. I recognise that the proposals may need a strengthening of London governance arrangements, and I can see how the proposals in the amendments may provide the kind of governance arrangements that might be needed.
However, for now, I suggest to noble Lords that we continue at some later stage our discussions on what the most appropriate changes would be to provide the London governance needed for future greater devolution and how such changes might best be provided for in this Bill. Therefore, I ask that noble Lords do not press their amendments.