Proceeding contribution from Lord Redwood (Conservative) in the House of Commons on Tuesday, 20 February 2007. It occurred during Debate on bill on Planning-gain Supplement (Preparations) Bill.
Planning-gain Supplement (Preparations) Bill
I do not happen to agree with them and I do not think that the tax would work like that. It would obviously reduce the flow of development proposals and development land, especially because I assume that my party would repeal it quite early on in the term of the next Conservative Government, which, I am pleased to say, looks rather closer in the light of recent opinion polls. That would mean that people naturally would wait until the unnecessary legislation had been repealed, after which they would reach a sensible agreement with the local authority whereby money would not be wasted, or leak out of the local area, under an especially cumbersome mechanism that the Government had invented. A lot of Labour Back Benchers—I only wish that they were here today—are very worried about the proposals. I believe that the right hon. Member for Greenwich and Woolwich (Mr. Raynsford), who has a lot of experience in this area, is a strong critic of the proposal, and I think that his opinions are mirrored by many Scottish Members, just a few of whom are in the Chamber. They are worried for good reason; their local authorities tell them that the tax would reduce their opportunities to take section 75 money, in the case of Scottish authorities, or section 106 money, in the case of English authorities, and thus reduce their ability to direct and control the element of the gain that a developer was prepared to share through a sensibly negotiated agreement. I hope that the Government will think again. Rather like my right hon. Friend the Member for Suffolk, Coastal (Mr. Gummer), I think that we are not only considering a Bill that has virtually nothing in it, but wasting our time doubly, given that I suspect that the Government will think again and realise that many of their Back Benchers are correct that the imposition of such a tax into a complex system that proceeds by agreement at present would be far from helpful, but unhelpful. There is only one other possibility: the Government are being very Machiavellian and wish to hang out the spectre of a tax in the hope that that will get some of the people who have land with development potential to rush to their local authority before the tax is introduced so that they can pocket the gain before the taxman does. I understand how that might work, but I doubt that the Minister would be honest enough to say today that that is the Government’s wicked plan. After watching Ministers and hearing their conversations with their Back Benchers, I fear that the Government do not even have a wicked plan. On this occasion, they have blundered into something that Labour Governments always do. They realise from historical research—history is not the strong subject of this Administration—that all the previous efforts have gone wrong, so they have come up with the silly idea that if there were a lower rate of tax, it might somehow not be so damaging. Such a tax might not be quite as damaging, but all tax is damaging in this situation. I wish to spare the people of Scotland from the proposal, so I have pleasure in recommending new clause 1 to the House.
Secondary information
- Type
- Proceeding contribution
- Reference
- 457 c171-2
- Session
- 2006-07
- Chamber / Committee
- House of Commons chamber
- Subjects
- Devolved matters Capital gains tax Housing Land ICT Infrastructure Government departments Local government Northern Ireland Planning permission Planning Public expenditure Property development Scotland Valuation Taxation Tax rates and bands Revenue and Customs Department for Communities and Local Government Planning gain supplement
- Legislation
- Planning-gain Supplement (Preparations) Bill 2006-07
- Link
- View this Proceeding contribution on www.publications.parliament.uk
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