Looking ahead to the Autumn Budget and a proposal to reform Capital Gains Tax on the sale of unused second homes

As we approach the Autumn Budget, MPs have the opportunity to advance their ideas on tax and spending to the Chancellor. The spending part is always easy. We all have projects and injustices that we’d like to see solved with more dollops of money. The money does not come out of thin air, the government has no money – only taxpayers’ money that it has taken through the myriad taxes that we all face.

The problem is that despite having the highest level of tax take as a percentage of the economy since the 1950s and for the first time ever, government tax receipts exceeding £600 Bn, we are still spending more than that to the tune of £35 Bn last year. Some spending relates to long overdue capital infrastructure projects, and it is to be welcomed that day to day revenue expenditure is now broadly in balance. Contrast that with the spending black hole we inherited in 2010 when the previous Labour government was borrowing 1 in every 4 pounds to finance expenditure. This was fantasy economics and was simply piling on debt for future generations to pay and had to stop. My Conservative government has added to the national debt for sure, but has reduced the annual overhang from a staggering £150 Bn in 2010 to the £35 Bn of today.

So the basis for MPs representations to the Chancellor must be revenue neutral, or positive to the Treasury. That makes it a tough ask. There is much debate about the fairness of the Business rating system, which penalises traditional ‘bricks and mortar’ businesses allowing a perceived unfairness in favour of virtual businesses like Amazon, Google and other online giants. Should we tax them more and tax traditional businesses less or would this stifle success? A true moral maze question, but we all have our own ability to steer our personal spending back to the High Street and away from the convenience of the internet.

A key tax change I have advanced is a Capital Gains Tax relief for those selling unused holiday home properties, often held by older people who come from out of area. It sounds generous on paper to those who are fortunate enough to hold such assets, but the reality is that too many smaller properties, ideal first-time buyer sized, and often in tourist locations where there are housing pressures, are simply bound up, unused and unlikely to ever be freed up until the death of the owner because of the penal nature of the tax system. Freeing up such units could liberate hundreds of thousands of properties onto the market, and save green spaces earmarked for development in the process.

I’ve had numerous media appearances over the past few weeks on a diverse range of issues covering the rising fear of county lines/drug and gang violence in Kent, lots of Brexit issues as I advance my opposition to the Chequers proposals in favour of a wide-ranging Canada style free trade agreement, women and Burqas following Boris Johnson’s high octane article in August on the issue. I also managed to get coverage for a local resident of Broadstairs who has faced 9 years of sheer hell from both Southern Water and her insurance company – Ageas following a water leak of 9 years ago.

I do hope that jobseekers will take the opportunity to visit my Thanet Jobs fair, organised in conjunction with the DWP locally at the “Hall by the Sea”, Dreamland on Friday 5th October from 10 am to 4pm, and that listed property owners take advantage of the Listed Property Owners forum at the Guildhall, Sandwich on Saturday 13th October. With 1,500 listed properties across South Thanet this is an opportunity to get advice from specialists. Email me for any further details that you need at craig.mackinlay.mp@parliament.uk.

Latest figures show more people in South Thanet are saving for their retirement

South Thanet MP, Craig Mackinlay, has welcomed new figures showing that, due to changes to workplace pensions, 7000 more people in the South Thanet constituency, and over 9 million people nationally, are now saving for their retirement. 

Auto-enrolment in workplace pensions was introduced so that more workers can save for retirement and have greater financial security and independence in their retirement.

Figures released last week show that the number of workplace pension schemes has reached a record high of 41.1 million in 2017, up nearly 50 per cent in the last six years.

Craig Mackinlay MP commented:

“By introducing automatic enrolment, we’re transforming the way people save for retirement.

“Our careful management of the economy – as well as important changes to help people save more for their retirement – means more families can plan for the long-term with the security of a pension.

“For a whole generation, workplace pension saving is now the new normal, but there’s more to do to help more people than ever before build an enjoyable and secure retirement.”

The Secretary of State for Work and Pensions, Rt Hon Esther McVey MP, said:

“Today’s figures show just how extraordinarily successful automatic enrolment has been in revolutionising pensions saving in this country, and has no sign of stopping.

“With almost 10 million more people saving in a pension through auto-enrolment, statistics are showing the total membership of workplace pension schemes is now at a record high of 41.1 million in 2017, up nearly 50 per cent in the last six years.

“Not only are millions more people moving into work, but they are putting money aside for their futures as a result of our reforms, showing we are returning to a society of savers where individuals are in control of their own money.”

Craig calls for a reduction in VAT for listed buildings

During an event held in Parliament, Craig Mackinlay MP, Chair of the All-Party Parliamentary Group (APPG) on Listed Properties and Member of Parliament for South Thanet, called for VAT on listed building planning alterations to be reduced from 20% to 5%.

The event was hosted by the APPG in conjunction with the Listed Property Owners’ Club, with cross-party MPs and listed property owners from around the country in attendance to discuss and raise awareness of the complex issues which face listed property owners when trying to maintain their homes. With 500,000 listed buildings across the country – 98% of which are privately owned – and over 1,500 in South Thanet itself, this has become an issue of local and national significance.

Discussions were centred on the scale and inconsistency of regulations in place which make it difficult for listed property owners to obtain planning approval to repair or improve their home with a variety of interpretations for the same project noted from delegates from across the country. The challenge listed property owners face goes back to 2012 when the Government removed the 0% VAT concession on authorised alterations to listed buildings. Without the incentive of a zero rating the number of owners going through the long and complicated process of approval, particularly for interior and out of sight work, has fallen dramatically by 8.42% since the introduction of VAT at the standard rate. Repairs are usually more costly to listed properties in any event due to specialist materials and bespoke construction being required.

Speaking at the event, Mr Mackinlay put forward proposals for a new 5% VAT rate, arguing that it strikes a balance while helping to protect a major part of our nation’s heritage and giving a valuable boost to the construction industry, particularly the smaller specialist artisans working in this sector. This 5% rate could then be used to promote significant energy saving measures in private listed properties, which are often energy-inefficient.

The APPG has launched a national petition to call for this reduction in VAT, which has already received 5,000 signatures, with the hope to reach 10,000 in advance of the Chancellor’s Autumn Budget. You can find the petition here: https://petition.parliament.uk/petitions/223075.

Craig Mackinlay MP commented:

“After hearing about the many calamitous stories experienced by listed property owners at this event and throughout my time as Chairman of the APPG, it is clear that the difficulties of owning a listed property are far-reaching.

“With the already overwhelming challenge posed by the vast amount of planning regulations on listed buildings, the 20% VAT increase has proved to be an unbearable burden for owners – many of whom are not the wealthy people they are widely believed to be.

“I would urge all listed property owners to sign our newly-launched petition, and call on all MPs to promote it to their constituents. With over 1.5 million owners spread across the UK on the front lines of protecting our nation’s historic fabric, this is an issue of national significance which threatens our country’s touristic appeal and heritage itself.

“I am delighted to see that this issue is gaining ground, and that many of my fellow MPs are supportive for such change which would prove revenue neutral to the Treasury because of increased activity.”

Pfizer, animal welfare and the future of Ramsgate's commercial port

I’ll try to keep away from focusing entirely on Brexit issues in this week’s column, there’ll be plenty of analysis of that as we return to Parliament and enter the Party conference season. The government has started to publish a series of “no deal” preparation papers and it is to be welcomed that the government is considering all options as the intransigence of the EU negotiators continues. Little noticed legislation has been going through Parliament over the past few months which gives the government flexibility for a range of outcomes. More papers will be rolled out over the coming weeks but I maintain my position that the Chequers plan does not represent Brexit and must be rejected. An ambitious Free Trade Agreement, on the lines of the Canada deal, will in my view deliver the referendum result, keeps relations with the EU on a friendly and professional basis and is the way forwards as we re-establish ourselves as a new Global Britain. Alternatively, if all else fails, then we should have no fears of a World Trade Organisation deal.

I reported on my fascinating visit to FujiFilm in Broadstairs a few weeks ago, and it was similarly my pleasure to visit the Pfizer facility within Discovery Park just last week. After posting details on social media many posted that they thought it had closed. Far from it. Whilst large scale manufacturing was relocated, the Sandwich site remains a hugely important part of Pfizer’s international operations for development and testing of advanced manufacturing processes. The staff count is over 700 and is experiencing steady growth. Pfizer at Sandwich plays some part in virtually every pharmaceutical product within the Pfizer family. I had a fascinating visit to the facility, and a wide-ranging discussion with the senior team as to what Kent could be as a UK hub of STEM technology, an area in which we do not, as a county, punch at our true weight.

There is much debate as to the future of Ramsgate’s commercial port with contributions becoming heated and at times unnecessarily personal. As you’ll be aware I have long campaigned for a marina village vision for the 32 acres of prime land that we have on our doorstep. There is currently heightened talk of a potential ferry. All well and good, as Thanet District Council needs a profitable use for this costly site which bears rent, rates and security costs. I am sure all will be resolved over the coming months, so a call for everyone to calm down and work together for the benefit of the locality.

The Department of Environment Food and Rural Affairs (DEFRA) keeps good news coming on animal welfare with a consultation on the banning of third party puppy and kitten sales and a ban on e-shock collars. There is one final ‘ban’ that I’m hoping to see, and that is of live animals for export. You can be sure that I and the huge number of committed campaigners will be keeping up pressure for this to be a reality as soon as possible.

Welcome to the Autumn.

Record low number of children in workless households means more security for families in South Thanet

Craig Mackinlay MP has welcomed new figures showing that there are 47,330 fewer children in workless households in the South East since 2010. The number of children living in households with no one working is at a record low, meaning fewer children are living in families without the security of work. Since last year, 29,000 fewer children across the United Kingdom are living in workless households.

Overall across Britain the number of workless households is down 964,000 since 2010, with the proportion of workless households now at its lowest level since records began in 1996. The fall over the last year was 11,000.

Craig Mackinlay MP said:

“It’s excellent to see the number of children in workless households falling – with 47,330 fewer across the South East since 2010. This means more children in families in South Thanet with the security that comes with a good job and a regular pay packet.

“This is further evidence that the Conservatives’ reforms to welfare and support for business to create more jobs, as part of our work to build a stronger economy, is working.

“We are working hard to build a stronger and fairer economy - delivering a brighter, more secure future for families in South Thanet - but there is more to do. That’s why we are investing in a modern Industrial Strategy to build a country that works for everyone.”

Craig briefed on the future of life sciences in East Kent during visit to Pfizer at Discovery Park

Craig Mackinlay MP has visited Pfizer’s Research and Development Site at Discovery Park in Sandwich to discuss how the company can work with their local Member of Parliament to foster the future of life sciences in South Thanet and Kent.

Craig was also briefed by Brian Henry, Vice President in Pfizer’s Medicinal Sciences Group, and Associate Research Fellow, Hugh Verrier, on Pfizer’s current work and new innovations taking place at the site. He toured the company’s Continuous Mixing Technology facility which opened last year and represents the development of advanced pharmaceutical manufacturing at Sandwich.

The company’s team of 700 scientists, technicians, regulatory professionals and business experts all work towards creating potentially life-saving medicines for patients, and the site is home to Pfizer’s only automated ‘pilot plant’ that manufactures medicines for use in clinical trials worldwide and is able to perform every step in the complex process of producing a new medicine.

After the visit, Craig Mackinlay MP said:

“Pfizer has played an important role in the development of Sandwich as a growing life sciences hub and has established the South East of England as a global centre of excellence in supplying medicines to clinical trials.”

“Pfizer is a credit to our local area and, as South Thanet’s Member of Parliament, I will continue to work with the company to explore opportunities with a view to bringing new, highly-skilled jobs to South Thanet and East Kent.”

Brian Henry, Vice President, Vice President in Pfizer’s Medicinal Sciences Group, commented:

“It’s great to welcome Craig Mackinlay MP back to Pfizer at Discovery Park and to have the opportunity to showcase the latest innovations taking place at the site.”

“I hope we were able to demonstrate the world class science carried out in his constituency which is making a difference to the lives of patients all over the world.

“We look forward to working with Craig Mackinlay MP and Discovery Park to further develop Kent as a Life Science Hub.”

South Thanet MP welcomes ban on “outdated and cruel” electronic shock collars for dogs and cats

Craig Mackinlay MP has welcomed the Government’s decision to ban electronic training collars for dogs and cats in England, building on the Conservatives’ commitment for stronger protections for animal welfare.

The training devices deliver up to 6,000 volts of electricity or spray noxious chemicals and have previously been used by some people to try and correct animals' behaviour.

The South Thanet MP and animal welfare campaigner has long supported the work of the Dogs Trust and The Kennel Club who have shown that, as well as being misused to inflict unnecessary harm and suffering, there is evidence e-collars can re-direct aggression or generate anxiety-based behaviour in pets - making underlying behavioural and health problems worse.

Craig Mackinlay MP, said:

“As an enthusiastic supporter of the Dogs Trust’s campaign to ban these outdated and cruel training methods, I’m delighted that the use of electronic shock collars will now be banned.

“There’s no need for e-collars to be used on our pet dogs and cats when there are so many positive training methods available.   

“This is a hugely important issue for dog and cat welfare and I’m so pleased that our campaign has made a difference.”

While the Government has agreed to amend legislation to ban the use of electric collars, they will not be extending the ban to invisible fencing systems. A consultation attracted over 7,000 responses from pet owners and others. Of those, around 50 per cent of respondents specifically pointed out that they did not want containment fences banned.

Craig calls for UK to “Go Global” as Government issues advice to public on what to do to prepare for a no deal scenario

South Thanet MP and Exiting the EU Select Committee Member, Craig Mackinlay, has today called for the UK to “Go Global” after the Secretary of State for Exiting the EU, Dominic Raab, delivered a speech outlining the Government’s preparations for no deal.

The Government has, today, also published the first in a series of technical notices advising businesses and citizens what they need to do to prepare for a no deal scenario. These are sensible and welcome.

Although the Government have repeatedly said they remain confident a good deal is within sight, Mr Mackinlay and a number of other Tory backbenchers argue that the UK should have nothing to fear should we reach Brexit day on 29 March 2019 without a deal and trade with the EU on World Trade Organisation (WTO) rules.

Craig Mackinlay MP commented:

“I wish the new Brexit Secretary, Dominic Raab, all the best in his endeavours to secure a good deal from the EU.

“Before long, however, reality needs to sink in that the EU Commission wants only one outcome – full alignment with EU standards, adherence to Single Market and Customs Union rules with no say, and subservience to the European Court of Justice.

“The Chequers deal doesn’t work and doesn’t pass the Brexit ‘sniff test’ by allowing us to take back control of our laws, money and borders and I have received countless emails from constituents outraged that adherence to ‘The Common Rule Book’ as proposed will prevent meaningful future trade deals, the real dividend of Brexit.

“And still the EU wants more...

“That’s why I’m now for a no deal Brexit, not because I see it as optimal, but because I see there is no other way.

“If, as I strongly suspect, the EU remains intent on continuing to thwart our efforts to secure a mutually beneficial deal, we should have nothing whatsoever to fear from leaving the EU on Brexit Day, 29 March 2019, and going global by trading with our friends and neighbours in the remaining member states under WTO terms.

“Understandably, the EU is fearful of the potential for success of a major global nation outside of its clutches.  

But, once we have truly left the EU and their anger and anguish has settled down, I’m sure both sides will get back to agreeing a Canada-style zero-tariff Free Trade Agreement, which, I feel, is what the majority of voters have been asking for, and expect as the sensible outcome.”

“People who have a complete disregard for pet welfare should not be able to profit from the puppy and kitten sale trade”, says Craig Mackinlay MP

South Thanet MP and animal welfare campaigner, Craig Mackinlay, has welcomed today’s announcement by the Government that they will consult on a ban on third party puppy and kitten sales in England to ensure stronger protections for animals.

The ban will mean anyone looking to buy or adopt a puppy or kitten must either deal directly with the breeder or with one of the nation’s many animal rehoming centres.

The Lucy’s Law campaign has fought tirelessly for this ban to be introduced to stop irresponsible breeders using third parties and ensure all breeders are accountable.

Craig with his wife, Kati Mackinlay, and their Chocolate Labrador, Libby

Craig Mackinlay MP commented:

“I have always believed that people who have a complete disregard for pet welfare should not be able to profit from the puppy and kitten sale trade.

“With some breeds commanding prices of upwards of £1,000 for a puppy, this has become a lucrative trade for the unscrupulous breeder.

“Irresponsible breeders can contribute to a chaotic start in life and lead to serious health problems and lack of socialisation for the animals they breed.

“So I very much welcome the move by the Environment Secretary, Michael Gove, to publish a consultation on an outright ban on third party puppy and kitten sales.

“This step follows a commitment by the Government to crack down on cruel puppy farms, bring an end to the grisly conditions found in puppy farming and tackle a range of existing animal welfare issues, not least addressing our concerns in Thanet surrounding the export from Ramsgate Port of live animals for slaughter.”

Craig welcomes news of £9 billion broadband boost for local businesses

Craig Mackinlay MP has welcomed research showing that superfast broadband has boosted the turnover of local businesses across the UK by £9 billion.

This boost to the UK economy has created 49,000 local jobs, showing the clear benefits that superfast broadband provides.

Nationwide superfast broadband coverage has now reached 95.39% due to the Government’s focus on hard to reach areas and in South East, over 97% of homes and businesses can now access superfast services.

Work is on-going to extend coverage, with more than 1 million extra UK homes and businesses estimated to gain access to superfast speeds over the next few years, taking superfast coverage to 98% of the nation.

The Government has introduced a Universal Service Obligation meaning everyone will have access to fast and affordable broadband by 2020.

And is going even further, having set out plans to deliver nationwide full fibre connectivity by 2033 as part of the modern Industrial Strategy.

Craig Mackinlay MP commented:

“This shows that extending superfast broadband is making a real difference to local businesses, boosting turnovers and reducing unemployment.

“This is good news for businesses in the South East as we move into an increasingly digital economy, and it’s great news that over 97% of homes and businesses in the South East now have access to superfast broadband.

“We know there is more to do, so are continuing to work with broadband providers to reach areas not yet covered and expect one million more homes and businesses to gain access in the next few years.”