Property Taxes

Sarah Dyke Excerpts

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is working to create much-needed homes in south Somerset, but it is often hampered by lack of access to finance and an outdated planning system.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.