§ 4. Mr. David Borrow (South Ribble)What representations he has received on the council tax banding of park homes. [143967]
§ The Parliamentary Under-Secretary of State for the Environment, Transport and the Regions (Ms Beverley Hughes)Last year, we received one representation from the British Holiday and Home Park Association in response to our local government finance Green Paper, and a further 15 representations and one petition to the Queen from residents of mobile and park homes about council tax.
187 About a third of the 1,110 responses to last year's consultation on the recommendations of the working party on park homes commented on the council tax.
§ Mr. BorrowMost of my constituents who live in mobile homes in the Tarleton, Penwortham and Banks areas occupy properties worth less than £20,000. They always tell me that they consider it unfair that they should pay the same council tax as occupiers of properties worth twice as much. Will my hon. Friend give serious consideration in the current review of local government finance to the introduction of an additional council tax band below band A to deal with that blatant unfairness towards owners of park homes?
§ Ms HughesMy hon. Friend is very experienced in matters of valuation generally, so I respond to him with some trepidation, especially as I cannot accede fully to his request. He will know that restructuring the bands, including splitting a band, would require primary legislation. We have no plans to introduce such legislation in the foreseeable future. However, I am aware of the views that he has expressed and we are keeping the matter under review, as I have made clear.
Furthermore, although the local government finance Green Paper did not address the issue specifically, a number of respondents have raised the matter with the Government. We shall certainly consider those responses as we move towards preparing a White Paper on local government finance.
§ Mr. Patrick Nicholls (Teignbridge)It is not the Minister's fault, but there is complete disarray when it comes to the council tax bands applicable to park home estates. Whether a park home is placed in council tax band A depends entirely on the whim of the district valuer. A great many people, both in the House and outside, assumed at the outset that park homes would be in band A. Is not there an excellent case for putting them in band A and dealing with them in that manner?
§ Ms HughesThat is another example of the new party of local government demonstrating its very short memory, as the banding structure for council tax was introduced by the Conservative party. By definition, any banding system will mean that bands have lower and upper limits, and that there is a range in each band. The Government are aware of the view that the bands should be restructured. We are keeping the matter under review. The relevant legislation will not be changed in the foreseeable future, but we will consider the matter in the context of the White Paper on local government finance.
§ Mr. Hilton Dawson (Lancaster and Wyre)I support everything that my hon. Friend the Minister has said about council tax banding. One indicator of the health of the park home sector is that people are prepared to invest sometimes six-figure sums in such homes. Does not that show that the Government are right to pursue reform of the sector, and that the previous Government's Mobile Homes Act 1983 was completely useless and transparently hopeless when it came to preserving the 188 rights of park home owners? Is not it now time to introduce new housing legislation to protect the rights of those residents?
§ Ms HughesI certainly agree with my hon. Friend that the investment that many owners of park homes put into their properties is very creditable. He will know that it was this Government who established the working party to take up some of the issues that the previous Government had long neglected in relation to park home owners. That working party's report was published in July 2000. We are consulting on it and considering the recommendations.