Draft Regulation of Social Housing (Influence of Local Authorities) (England) Regulations 2017
Debate between Lord Sharma and James Duddridge
Alok Sharma
The regulations say that local authorities will have representation of up to 24% of board members. In many cases, that will mean reducing the number of board members they appoint. Ultimately, this is about demonstrating that local authorities no longer exercise the same level of control over housing associations.
In developing the regulations, we have taken views from the National Housing Federation, the Local Government Association, the National Federation of ALMOs and a selection of housing associations and local authorities. The overall message from their responses was the importance of reclassifying housing associations as private sector as soon as possible. Housing associations and local authorities have a wide-ranging relationship, and we want that relationship to be maintained. The regulations will not change that.
The regulations will give local authorities and housing associations six months to make the necessary changes. In that time, local authorities will need to reduce their board membership to 24% of the directly appointed members by choosing which members should remain and which be removed. Housing associations will need to amend their constitutions to reflect the changes required by the regulations. After the six-month period, if action has not been taken, the regulations will overwrite contracts and constitutions to reduce local authority board membership to the required level and remove shareholding membership. The shareholding membership is to be distributed pro rata among the other shareholders, meaning that tenants will hold a larger share in the association.
In summary, the regulations go only as far as is necessary to allow the ONS to consider the reclassification of housing associations as private sector.
James Duddridge (Rochford and Southend East) (Con)
The Minister said that he had consulted arm’s length management organisations. I understand from the explanatory memorandum that ALMOs are exempted, mainly because they are on the balance sheet anyway. Listening to his other comments, however, it strikes me from a governance viewpoint that ALMOs should also fall in line, perhaps initially on a voluntary basis. Restricting local authority membership of their boards to 24% would give additional coverage of tenants.
Alok Sharma
My hon. Friend makes an interesting point, but I point out that ALMOs are owned by local authorities. The regulations relate to housing associations that have received a stock transfer; we are implementing them to show that they are effectively back in the private sector.
The regulations relate to only 100 of the 1,500 housing associations in the sector. They will not affect the current regulatory regime, which is a matter for the social housing regulator. Nor will they prevent the direct involvement and interest of local authorities in running housing associations, although they will limit that involvement to a reasonable level so that a housing association can be seen as a private entity. Housing associations will continue to build additional affordable homes and work with local authorities to meet identified housing needs. Subject to the ONS’s consideration and decision on classification in the light of these and other changes, we expect that approximately £70 billion of debt will be removed from the national accounts. I commend the regulations to the Committee.
Gypsies and Travellers and Local Communities
Debate between Lord Sharma and James Duddridge
Alok Sharma
Of course I will ensure that I meet the police and crime commissioner, or that a Home Office Minister does so if that is more appropriate. I have seen the piece of work that was produced, and it is an incredibly useful document.
As I was saying, we want every single child in our country to get the best education and the best start in life, and to fulfil their potential, and that absolutely includes children from the Traveller community.
I know that in today’s debate we will hear accounts of the damage left in the wake of illegal encampments and a call for local authorities and the police to do more and to move faster in dealing with them. Indeed, many Members have written to me highlighting the impact illegal incursions have on their constituents. I recognise, as I am sure the whole House does, the huge sense of frustration and anguish about the issue that many people feel.
James Duddridge (Rochford and Southend East) (Con)
I personally am not tolerant. My constituents are not tolerant. When Gunners Park was littered, when Trinity football ground was paved over with a travelling community, and when Cherry Orchard Park was invaded, my constituents were not tolerant. Can we have a three strikes and out rule? These people have expensive land cruisers and big trucks. If they park on council land or private land more than three times, may we give the police the power to take those assets and sell them for the good of the community and to clear up some of the mess that is left behind?
Alok Sharma
My hon. Friend expresses a view that many colleagues will have experienced in terms of the frustration felt by their constituents.
Let me talk about the powers the police have and about what we intend to do. As I said, many Members have written to me highlighting the impact illegal incursions have on their constituents. I recognise this huge sense of frustration; indeed, I share it. In recent months in my constituency of Reading West, we have had numerous illegal encampments set up on public land, including nine separate visits to Prospect Park in Tilehurst. These incursions have caused my constituents significant distress, as each leaves behind enormous amounts of waste and cleaning comes at a considerable cost to the law-abiding taxpayers.
We all aspire to peaceful and integrated co-existence between communities, where we all share the same rights and responsibilities, but there is a perception among the settled communities—our constituents—that the law does not apply equally.