§ 11. Mr. Chris Mullin (Sunderland, South)What plans he has to impose a tax on green-field housing development; and if he will make a statement. [91103]
§ The Financial Secretary to the Treasury (Mrs. Barbara Roche)The Chancellor has no present plans to impose a tax on green-field developments. The Government keep under review the scope for using economic instruments to complement the planning system in achieving their social and environmental objectives.
§ Mr. MullinI am disappointed by that reply. As my hon. Friend will know, agricultural land that is normally worth between £3,000 and £5,000 per acre is now changing hands at up to £8,000 per acre, and much of the gross gain is being rolled over for the purposes of capital gains tax. Is this not one area in which the Treasury, without arousing any political controversy, might raise some extra money for the public?
§ Mrs. RocheI understand my hon. Friend's point. I know of his long-standing interest in the matter, and I know that he has had a meeting with my hon. Friend the Paymaster General.
Roll-over relief enables businesses to modernise and expand. I assure my hon. Friend, however, that we are giving careful consideration to Lord Rogers's report, and, as my hon. Friend the Paymaster General has said, will return to the House with our conclusions.
§ Mr. Stephen Dorrell (Charnwood)Earlier this morning it was the hon. Member for Stroud (Mr. Drew); now it is the hon. Member for Sunderland, South (Mr. Mullin). Clearly a campaign is developing on the Labour Back Benches for the introduction of a tax on new housing development. Given the Government's track record in regard to the introduction of new taxes, does the Financial Secretary not owe it to potential home owners to rule out categorically the introduction of such a tax?
§ Mrs. RocheI am astonished at the right hon. Gentleman's cheek. He was a Treasury Minister in the Government who introduced the measure that imposed VAT on fuel—the measure that hit hard-working families most. He should spend some time examining his own record—the record that got the Conservative party into such a mess.
§ Mr. Barry Sheerman (Huddersfield)Does my hon. Friend agree that we have a great opportunity for the next 10 years? With a taxation policy married to an environmental policy that is sensible and far-sighted, we can regenerate our towns and cities by tackling brown-field and contaminated sites. However, a flow of taxation moneys will be needed to help brown-field sites to compete with green-field sites.
If I were asked to advise the Government, I would advise them to emphasise the importance of making brown-field development a priority, rather than taxing green-field development.
§ Mrs. RocheI understand completely the points that my hon. Friend makes, and—as he knows—the Government have set a target for increasing the proportion of new housing on brown-field sites. He is also absolutely right to talk about the need for a joined-up and co-ordinated approach, not only in the Treasury but in all Departments, in achieving that goal. Consequently, we are very grateful to Lord Rogers and are considering his recommendations very carefully.
§ Mr. Elfyn Llwyd (Meirionnydd Nant Conwy)Will the hon. Lady please tell the House what type of incentives are being considered to encourage brown-field rather than green-field site development?
§ Mrs. RocheI suggest that the hon. Gentleman reads the Rogers report—[HON. MEMBERS: "Answer."] The Rogers report is very detailed, dealing not only with a range of fiscal measures, but with all the other initiatives that the Government are undertaking in urban areas. It is very much a report for all Departments, and Treasury Ministers will be considering it very carefully. However, as my hon. Friend the Paymaster General said, it is a matter not only for the Treasury but for other Departments; on planning, for example, it is a matter for the Department of the Environment, Transport and the Regions. We shall make a co-ordinated response as soon as we possibly can, after we have considered the report.