Contribution
I congratulate the Minister on bringing this Bill back. On a happier note than that of the shadow Minister, the hon. Member for Hamble Valley (Paul Holmes), I think this Bill does outline some of the powers going down to local communities. My understanding is that this is the first Bill to have “community empowerment” in its title, which shows the Government’s commitment to push on it. The Minister and I are fellow Labour and Co-operative MPs, and I am very excited about the community right to buy. I pay tribute to the many across the co-op movement who have been fighting for this for many years. I am mindful of the time, so I want to reflect on three specific areas.
First, new clause 25, tabled by my Select Committee colleague, the hon. Member for Newbury (Mr Dillon), would require the Secretary of State to publish guidance on community infrastructure levy charges on homeowners, including on how local councils will respond to technical errors. Our Committee heard representations from the CIL Injustice group, which represents dozens of homeowners who have been unfairly charged CIL for home extensions, self-build and other small projects, even though CIL is intended as a levy for large-scale developments. Councils have seemingly issued the charges due to technical administrative errors such as paperwork being completed incorrectly, but the impact of these charges are life changing for some residents. We heard evidence of homeowners facing unexpected bills ranging from £40,000 to £200,000. We heard that some councils are applying a zero-tolerance approach, with the threat of imprisonment if these bills are not paid. Ultimately, we are seeing homeowners suffering real distress as a result. Some of them have been forced to sell their homes because they have been charged for something they should not have been charged.
To the credit of the Minister for Housing and Planning, he told our Select Committee that the CIL regulations are
“not intended to operate in this way”,
and that the Government are
“giving very serious consideration to amending them”
to ensure no one is unfairly charged. However, that was back in July, and in a letter to the Committee earlier this month, he was unable to provide an update on the plans to amend the regulations. He told us that the Department
“has not issued any formal or informal communications”
to councils about charging CIL. New clause 25, tabled by the hon. Member for Newbury, would require the Government to take the steps urgently needed to address the unfair CIL charges. It would be helpful if the Minister, when winding up, gave the House an update on when the review of CIL guidance is coming, or if we can expect any secondary legislation to address this. We understand that Ministers cannot intervene on individual cases, but a clear direction should be issued to councils that they cannot treat applicants in this way and that they should clear up the paperwork to stop more homeowners being pursued for thousands of pounds of charges.
Secondly, new clause 31, on the tourism levy, has been tabled by my hon. Friend the Member for Liverpool Wavertree (Paula Barker). This new clause would give established mayoral strategic authorities the power to impose a levy on overnight accommodation in their area. Importantly, subsection (6) would require that money received from this levy is paid into the general fund of the authority, so it would be going directly to local councils. Our Select Committee has pressed the Government to go further with fiscal devolution. We welcome the empowerment of local councils in many areas, but we are very clear that the one omission from the Bill is fiscal devolution down to our local colleagues. Our report on the funding and sustainability of local government finance, which we published in July this year, included a recommendation to the Treasury to devolve tax-setting powers to local authorities, allowing them to set their own forms of local taxation, such as the tourism levy. I understand that, as the Minister outlined, anything to do with taxation is down to the Treasury and is not something for HCLG Ministers to look at, but I hope they are actively having such conversations with Treasury Ministers.
We acknowledge that visitor levies have pros and cons. Their benefits would not be equal right across the country, and the right approach must be taken in each local area. However, our Select Committee heard that, where it does work, it would be helpful as a new form of fundraising at the regional level. For example, Mayor Tracy Brabin, the mayor of the West Yorkshire Combined Authority, told us that a visitor levy would give the authority an opportunity to become more self-sufficient. Councillor Louise Gittins, the chair of the Local Government Association, told us that some form of the tourist levy would be really helpful to deal with the pressures that tourists can put on local economies. The Government’s explanatory notes state that the purpose of the Bill is to transfer power out of Westminster, but, as I mentioned, the fiscal devolution element has been very quiet. I hope the Minister will recognise that until Westminster is willing to let go of its tight grip on tax setting and revenue raising down to local authorities, we will not see the kind of independence, community empowerment and local accountability we all want. New clause 31 would grant local authorities the power to impose visitor levies. It would be a positive first step in that direction.