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Proceeding contribution from Danny Alexander (Liberal Democrat) in the House of Commons on Thursday, 7 June 2007. It occurred during Debate on bill on Rating (Empty Properties) Bill.


Rating (Empty Properties) Bill

I understand the Government’s argument that the Bill would lead to lower rents over time and to empty properties being filled more quickly, and thus more revenue from those occupied properties. As I was saying, the Liberal Democrat approach to environmental taxation is to propose additional taxes for environmental pollution and to return that money in a way that encourages good behaviour. However, the Bill would act as a stick from the Government—because they want to discourage bad behaviour—with no carrot to encourage good behaviour. Without hearing more about which other business and property taxes the Government propose to reduce by using the £1 billion that will be raised by the Bill, it is hard to avoid the conclusion that it is intended as a revenue-raising measure rather than to promote regeneration. Ministers have made the point that the Bill is a way of trying to change behaviour, which can of course be an important part of the tax system, as it is in the environmental sphere, for example. Has the Minister considered the representations made by the Local Government Association? Indeed, he may want to pray the LGA in aid, because its briefing notes that it supports the Bill. However, it states:"““It is crucial…that the additional revenue raised is reinvested in the local economy. HM Treasury estimates that £950 million…will be raised…and councils are best placed to decide how and where the additional money can be spent to best effect locally””." The policy of the LGA is that if money is to be raised it should be used to good effect; otherwise the measure is simply a way of clawing back more money from businesses.


Secondary information

Type
Proceeding contribution
Reference
461 c457 
Session
2006-07
Chamber / Committee
House of Commons chamber
Subjects
Clubs Charities Business Competition Brownfield sites Business premises Contamination Environment protection Greater London Empty property Farms Land use Internet Economic situation Housing stock Local government finance Property Business rates Listed buildings Prices Pension funds Small businesses Tax allowances Valuation Sports Tenants Shops Retail trade Supermarkets Rents Rural areas Regeneration Vandalism Retail prices index Local Government Finance Funding Changes Independent Inquiry Land Use Planning Review
Legislation
Rating (Empty Properties) Bill 2006-07
Link
View this Proceeding contribution on www.publications.parliament.uk