HC Deb 04 April 2000 vol 347 cc808-9
18. Mr. David Rendel (Newbury)

What plans he has to abolish the 50 per cent. reduction in council tax on second homes. [116160]

The Minister for Local Government and the Regions(Ms Hilary Armstrong)

We have no plans at present to abolish the council tax discount for second homes. Some respondents to our consultation last year on rural issues suggested ending the discount, and we are considering this along with many other proposals for tackling rural problems.

Mr. Rendel

Does not the Minister agree that giving local authorities the right to raise the council tax on second homes would do quite a lot to reduce the problems of overdevelopment across the south-east? Would not it also give young people wanting to move out of the parental home a better chance of obtaining affordable accommodation?

Ms Armstrong

The hon. Gentleman is being too simplistic. Sometimes there are good reasons for not raising council tax on empty properties, as such properties are empty for all sorts of reasons. Second homes come into that general category.

The issue is complex, and varies across the country. We are considering the matter, and I am sure that the hon. Gentleman will want to contribute his thoughts to our deliberations.

Dr. George Turner (North-West Norfolk)

Does my right hon. Friend recognise that there are many different views on the matter across the country? People in north Norfolk are often unable to buy a house because others are coming into the area and buying second homes—those incomers include Members of Parliament. Their presence contributes to the local economy, but the negative feelings of the local community would be somewhat diminished if they were to pay the full council tax. I understand that my right hon. Friend may want to introduce a broader package of changes to council tax, but will she assure my constituents that that particular change has not been ruled out?

Ms Armstrong

I have made it clear that the change has not been ruled out, but that it has not been ruled in either.

Mr. Geoffrey Clifton-Brown (Cotswold)

The Minister may be aware that 600 new wooden chalet-type homes are being built in the Cotswold water park. The local Cotswold district council does not get the full benefit of the council tax on those homes, which are entirely second homes. Will the Minister consider giving local authorities a discretionary power to enable them to levy full council tax in certain circumstances?

Ms Armstrong

I have given the assurance that we are considering that.