Meeting of the Parliament 06 March 2018
I thank my fellow committee members for the constructive conversations that we have had on the bill, and I look forward to continuing our work as we scrutinise this piece of legislation. In addition, I echo the thanks of our convener to our clerks and to those who have submitted evidence to the Finance and Constitution Committee.
I refer members to my entry in the register of members’ interests, particularly with regard to my businesses that deal with the purchasing and leasing of residential properties and businesses, which are impacted by LBTT.
The Scottish Conservatives agree with the bill and welcome its introduction at stage 1. As many members have pointed out, the need for the bill is the consequence—and another example—of an SNP Government pushing through bad legislation that requires further legislation to correct it. The irony, as we argue over the timings that have been proposed by the SNP for the UK Withdrawal from the European Union (Legal Continuity) (Scotland) Bill, makes it particularly topical.
From the evidence that has been taken, it appears that the bill will not be the final piece of correcting legislation that is required. As my colleague Murdo Fraser noted, the proposed legislation is required to correct the injustice that has been done to many constituents who were simply starting a home together. As has been pointed out, many experts noted, during discussions on the original legislation, that they had grave concerns over its impact on the housing market as well as its other potential consequences.
Those concerns have been borne out by the facts. The estate agent Aberdein Considine’s analysis last December showed that selling prices in Glasgow’s east end had risen by 20 per cent in the previous quarter. The Times reported last Friday that
“first-time buyers without extra capital are being consistently outbid by”
buy-to-let
“investors from China”
and the middle east. I do not want to deter international investment, but legislation that the Scottish Government introduces should not be to the detriment of our own residents who look to make a life and home of their own.
The bill also affords the opportunity to consider the wider issues that we face with LBTT. The Law Society noted that
“there will continue to be regular issues that arise in relation to the implementation of devolved taxes”.
Therefore, it encourages Revenue Scotland and the Scottish Government to work together in a policy partnership to ensure that the Scottish tax system is responsive and fit for purpose as it develops.
As the Institute of Chartered Accountants of Scotland states, there is a good case to be made for care and maintenance measures in the existing tax law so that, if stakeholders find that parts of the legislation do not work as intended, there is an opportunity to revisit the law without the need for primary legislation.
I note and welcome the letter that the cabinet secretary sent to the committee shortly before the debate, introducing a consultation on group reliefs. I hope that he will continue to be as receptive on other issues.
We have a duty to pass bills that work effectively and that benefit our constituents to the maximum effect the first time round. Therefore, although we support the consensus in passing the bill to the next stage, I ask the cabinet secretary to cover in his closing speech his response to the further amendments to the land and buildings transaction tax legislation that the Law Society and others have proposed.