§ 5. Mr. YeoTo ask the Secretary of State for the Environment what representations he has received about the way in which community charge is levied on owners of empty property.
§ The Parliamentary Under-Secretary of State for the Environment (Mr. Christopher Chope)I have received a large number of representations about the level of standard charge which some authorities have set and the degree to which they have used their discretionary powers.
§ Mr. YeoDoes my hon. Friend share my concern at the insistence of many local authorities on levying a standard charge on the owners of empty properties which are awaiting resale following the removal of the owners to a new permanent address? Will my hon. Friend make it clear to local authorities that, as Parliament has given them the power to levy either a personal charge or a nil charge on some properties, they should consider making wider use of that power?
§ Mr. ChopeI share the concern that my hon. Friend has stressed. That is why we shall write to local authorities to ascertain how they have been exercising their discretion. If we are dissatisfied, we shall have to consider whether we should specify the maximum multipliers that they can use in certain cases.
§ Mr. BattleWill the Minister explain why poll tax, if it is not a property tax, is levied on second homes? Why is it levied on empty properties? Why is it levied on caravans, with the result that people in Leeds who own a modest caravan can no longer afford to go on holiday? Is not it a property tax?
§ Mr. ChopeDomestic rates used to be levied on empty property. My recollection from sitting in Committee with the hon. Gentleman is that the Labour party is in favour of a contribution being made by owners of empty properties towards the cost of local government expenditure. That is why we have a standard community charge.
§ Mrs. PeacockIs my hon. Friend aware that many young people in my constituency and throughout the country who have bought a home in a bad state of repair to renovate are now being charged double standard community charge as well as their personal community charge? It is a disgrace. What will my hon. Friend do about it?
§ Mr. ChopeI share my hon. Friend's concern. Responsibility must lie with individual councils. They have discretion, and some have not used it as I would have done. That some local authorities have found a reason to exempt their own empty council properties from the standard community charge shows the sense of priorities of some local authorities.
§ Mr. BlunkettWhy, if the local authorities are to blame, was the scheme introduced by the Government in such a way, and why were 100 per cent. collection rates presumed, on the presumption that the money would be made up from the standard poll tax and the grant distribution would be assumed to have a standard poll tax collection rate of two per empty property? Is the Under-Secretary of State willing, in the review that we hear so much about, to ensure that local authorities are properly funded so that they can use their discretion to help all the people that Opposition Members believe should be assisted? Will he tell us why a property tax that is not a property tax needs a property tax to catch up on those who own second homes, who need to pay for local community services but cannot pay a property tax because the Government have abolished it?
§ Mr. ChopePerhaps my answer will be too brief for the hon. Gentleman. The Government make no assumptions about income from the standard community charge when calculating revenue support grant. Therefore, there is no pressure on English local authorities to set the maximum multiplier in all cases. There is absolute discretion, and many Conservative Members are concerned that local authorities have not been exercising that discretion reasonably.