Cafcass – in the House of Commons at 11:30 am on 2 November 2005.
Hywel Williams
Shadow PC Spokesperson (Education), Shadow PC Spokesperson (Work and Pensions), Shadow PC Spokesperson (Health), Shadow Spokesperson (Culture, Media and Sport), Shadow PC Spokesperson (International Development)
11:30,
2 November 2005
What representations he has made to the Chancellor of the exchequer about the effect on the affordability of housing in Wales of the changes in the rules for self-invested personal pension scheme investment in residential property.
Nick Ainger
Parliamentary Under-Secretary, Office of the Secretary of State for Wales
I have made no direct representations. There has been widespread speculation about the impact of the new rules that will allow self-invested personal pensions to be invested in residential properties. Government guidance sets out the implications of putting a residential property into a SIPP. It is unlikely to be an appropriate investment for most people, but the Government will keep the matter under review and will not hesitate to act if there is evidence of abuse.
Hywel Williams
Shadow PC Spokesperson (Education), Shadow PC Spokesperson (Work and Pensions), Shadow PC Spokesperson (Health), Shadow Spokesperson (Culture, Media and Sport), Shadow PC Spokesperson (International Development)
Average house prices in Wales are already seven times average incomes. Is it not inevitable that new money flooding into—[Interruption.]
Michael Martin
Chair, Speaker's Committee on the Electoral Commission, Speaker of the House of Commons, Chair, Speaker's Committee on the Electoral Commission
Order. I ask the House to come to order. The noise is unfair to the hon. Gentleman.
Hywel Williams
Shadow PC Spokesperson (Education), Shadow PC Spokesperson (Work and Pensions), Shadow PC Spokesperson (Health), Shadow Spokesperson (Culture, Media and Sport), Shadow PC Spokesperson (International Development)
Thank you, Mr. Speaker.
Is it not inevitable that new money flooding into the holiday homes market will push up prices further? How can the Secretary of State support an arrangement that will make it even more difficult for hard-working Welsh families to enter the housing market?
Nick Ainger
Parliamentary Under-Secretary, Office of the Secretary of State for Wales
I note the hon. Gentleman's point, but he and his colleagues are in danger of sounding like salesmen for SIPP providers. They should not overstate the impact of SIPPs on the rural housing market. There are significant drawbacks for investors wishing to place a second home in a SIPP. For instance, a property placed in a SIPP will be owned by the trustees of the SIPP, not the individual.
An investor would not be able to stay in a second home free of charge. He would either pay the full commercial rent or face a 40 per cent. charge for a benefit in kind. In most cases, the property would have to be sold before the pension could be drawn, so the investor would not be able to use it as a retirement home unless he could raise enough money to buy it from the SIPP. Those rules and others ensure that assets put into a pension fund give people a secure retirement income, and are not a means of subsidising second homes.
The chancellor of the exchequer is the government's chief financial minister and as such is responsible for raising government revenue through taxation or borrowing and for controlling overall government spending.
The chancellor's plans for the economy are delivered to the House of Commons every year in the Budget speech.
The chancellor is the most senior figure at the Treasury, even though the prime minister holds an additional title of 'First Lord of the Treasury'. He normally resides at Number 11 Downing Street.
Secretary of State was originally the title given to the two officials who conducted the Royal Correspondence under Elizabeth I. Now it is the title held by some of the more important Government Ministers, for example the Secretary of State for Foreign Affairs.
The Speaker is an MP who has been elected to act as Chairman during debates in the House of Commons. He or she is responsible for ensuring that the rules laid down by the House for the carrying out of its business are observed. It is the Speaker who calls MPs to speak, and maintains order in the House. He or she acts as the House's representative in its relations with outside bodies and the other elements of Parliament such as the Lords and the Monarch. The Speaker is also responsible for protecting the interests of minorities in the House. He or she must ensure that the holders of an opinion, however unpopular, are allowed to put across their view without undue obstruction. It is also the Speaker who reprimands, on behalf of the House, an MP brought to the Bar of the House. In the case of disobedience the Speaker can 'name' an MP which results in their suspension from the House for a period. The Speaker must be impartial in all matters. He or she is elected by MPs in the House of Commons but then ceases to be involved in party politics. All sides in the House rely on the Speaker's disinterest. Even after retirement a former Speaker will not take part in political issues. Taking on the office means losing close contact with old colleagues and keeping apart from all groups and interests, even avoiding using the House of Commons dining rooms or bars. The Speaker continues as a Member of Parliament dealing with constituent's letters and problems. By tradition other candidates from the major parties do not contest the Speaker's seat at a General Election. The Speakership dates back to 1377 when Sir Thomas Hungerford was appointed to the role. The title Speaker comes from the fact that the Speaker was the official spokesman of the House of Commons to the Monarch. In the early years of the office, several Speakers suffered violent deaths when they presented unwelcome news to the King. Further information can be obtained from factsheet M2 on the UK Parliament website.
