Deputy Prime Minister
Angela Rayner Excerpts(2 days, 15 hours ago)
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Helen Morgan
Shropshire’s farmers have been suffering from flooding following 18 months of incredibly wet weather, topped off last Wednesday by a month’s worth of rain in 24 hours. They were not eligible for the farming recovery fund, and a freedom of information request by Farmers Weekly found that only £2.1 million of that £50 million has been handed out to farmers. Will the Government consider extending the eligibility of that scheme so that we can keep farmers going when they are deluged by floodwater?
The Deputy Prime Minister
I am really sorry to hear the plight of Shropshire farmers. We inherited the flood defence programme in disrepair, and thanks to 14 years of mismanagement and failure, communities are unprotected and families and businesses are forced to pay the price. We launched a flood defence taskforce to turbocharge the delivery and co-ordination of flood defences, and we are investing £1.5 billion this year to scale up flooding national resilience. I will ensure that the hon. Lady gets a meeting with the Minister.
[Official Report, 23 October 2024; Vol. 755, c. 276.]
Written correction submitted by the Deputy Prime Minister, the right hon. Member for Ashton-under-Lyne (Angela Rayner):
The Deputy Prime Minister
I am really sorry to hear the plight of Shropshire farmers. We inherited the flood defence programme in disrepair, and thanks to 14 years of mismanagement and failure, communities are unprotected and families and businesses are forced to pay the price. We launched a flood defence taskforce to turbocharge the delivery and co-ordination of flood defences, and we are investing £1.25 billion this year to scale up flooding national resilience. I will ensure that the hon. Lady gets a meeting with the Minister.
Social and Affordable Housing
Angela Rayner Excerpts(3 days, 15 hours ago)
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The Secretary of State for Housing, Communities and Local Government (Angela Rayner)
I am publishing today a consultation on reforms to the right to buy in England.
This Government are committed to the biggest increase in social and affordable house building in a generation and to supporting councils to increase their capacity to build.
After more than a decade of marginalisation, we must once again assert the necessity and the value of social housing. It is a crucial national asset to be proud of, to invest in, to protect and to maintain.
We cannot achieve this while councils are losing homes quicker than they can replace them through the right to buy scheme. Nor can we achieve this while councils risk losing their investment in a newly built social home as soon as three years after completion. Between April 2012 and March 2024 there have been over 124,000 council right to buy sales, and in the same period fewer than 48,000 homes have been replaced.
Reduced access to affordable social rented homes has seen millions of low-income families forced into insecure, poor quality and unaffordable accommodation. Over 150,000 children are now in temporary accommodation and nearly 1.3 million people on social housing waiting lists. The cost of this has been borne not only by those low-income families unable to secure a social home, but by the taxpayer in the form of a rapidly rising housing benefit bill. This is unsustainable and represents a poor use of public money.
This Government remain committed to right to buy, which is why we are not proposing its abolition. It is an integral way for social tenants to get on the property ladder, many of whom may not otherwise be able to access home ownership. But crucially we also need to protect social housing stock to meet future housing need, to support councils to replace homes that are sold and to improve their confidence to scale-up delivery.
The scheme must be reformed so that it better protects the existing stock of social rented homes, provides better value for money for the taxpayer and ensures fairness within the system.
We have already taken significant steps to deliver this reform. In July, we increased the flexibilities on how councils can use the capital receipts generated by a right to buy sale to accelerate the delivery of replacement homes.
The Government, at autumn Budget, confirmed that councils will no longer be required to return a proportion of the capital receipt generated by the sale of the home to HM Treasury, which has totalled c.£183 million a year. This will ensure that councils are better able to build and acquire new council homes to meet local housing need.
The Government also confirmed at the autumn Budget the reduction of maximum right to buy cash discounts to their pre-2012 regional levels—ranging from £16,000 to £38,000—following a review conducted by the Ministry of Housing, Communities and Local Government. Secondary legislation was laid on 30 October and new discounts will come into force tomorrow. This is a crucial step in delivering a fairer, better value and more sustainable scheme. Reducing discounts will protect existing social housing stock, while ensuring long-term tenants can still benefit.
Through the same secondary legislation, we are increasing protections for newly built social homes from being sold under the right to buy, by increasing the “cost floor” period during which discounts can be reduced to account for money spent building or maintaining the property from 15 years to 30 years. This will give councils greater confidence to scale-up delivery of social homes for those who need them most.
But these measures are only part of the reform needed to achieve a fairer and more sustainable right to buy scheme. The eight-week consultation, which I am launching today, proposes the broader reforms necessary to ensure that the right to buy is sustainable and meets the needs of tenants who aspire to own their own homes, while also ensuring that the homes sold can be replaced. We are seeking views on:
Eligibility—we propose to increase the eligibility requirement (currently three years as a secure tenant) to support councils to rebuild the stock of council homes and to better ensure that long-term tenants who have lived in, and paid rent on, their social homes are able to own their home through the scheme.
Discounts as a percentage of the property value—we propose to amend the current percentage discounts to better align with the new cash discounts and propose that the same rules should apply to houses and flats.
Exemptions—we are seeking views on whether the current exemptions to the scheme are fit for purpose and whether new build homes should be exempt from the right to buy, for a given period, to better incentivise councils to invest in new stock. We also welcome views on how to protect council investment in retrofitting and improving homes to a high standard.
Restrictions on properties after sale—once someone has purchased a home under the right to buy, it is theirs to live in and enjoy, the same as any home purchased on the open market. We do not therefore propose to introduce covenants to prevent homes being let out, which we think would be restrictive and too difficult for councils to administer. We are seeking views, however, on whether the time period in which the council has the right to ask for repayment of all or part of the discount received should be increased from five to ten years.
Requirements around the replacement of homes sold under the right to buy—we are seeking views on the benefits of replacement homes being for social rent to support the Government’s ambition to increase the number of social rent homes and whether replacements should be, as far as possible, of the same size and in the same area.
Simplification of the receipts regime—we are seeking views on how the current system can be simplified and strengthened to support the replacement of homes.
Through this consultation, we will better understand what barriers there may be to the introduction of these proposals and to inform their design. Subject to views in response to this consultation, we intend to bring forward legislation to implement any changes when parliamentary time allows.
I can also confirm today that the Government will not be extending the right to buy scheme to housing associations given the substantial costs to the taxpayer and the reduction in social housing stock that is likely to result. Eligible tenants will, however, continue to be able to buy their rented home at a discount, ranging from £9,000 to £16,000 depending on where their rented home is located, through the right to acquire scheme.
Further, I can confirm that the Government will not be taking forward the policy on the sale of higher-value assets proposed under the Housing and Planning Act 2016, which would have required councils to make a payment in respect of their vacant higher-value council homes and return some of the funds to the Government. The Government will repeal the provisions in the 2016 Housing and Planning Act when parliamentary time allows.
I look forward to continuing to work with all those with an interest in improving the system to make sure that these plans for reform are robust and deliverable.
[HCWS238]
Oral Answers to Questions
Angela Rayner Excerpts(3 weeks, 5 days ago)
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Josh Simons (Makerfield) (Lab)
The Secretary of State for Housing, Communities and Local Government (Angela Rayner)
This Government are committed to delivering 1.5 million quality homes over this Parliament. Under the Tories, house building plummeted as they bowed to pressure from their Back Benchers to scrap local housing targets. We are taking bold action to reform our planning system, deliver a new generation of new towns and unblock stalled housing sites.
Mike Tapp
I recently met members of Dover district council, who told me that they are keen to help the Government where they can to deliver our ambitious housing targets. Around the edge of Dover High Street we often see consistently empty units. What can the Government do to help us turn those into the housing that our community so badly needs, and will the Minister meet me to discuss how we can help?
Angela Rayner
My hon. Friend is absolutely right. Compulsory purchase orders can be used by local authorities to acquire empty properties where the authority can demonstrate that the acquisition would be in the public interest. I am also aware that there is a problem with homes built under section 106 agreements being left empty. The Government will continue to work with house builders, local authorities and affordable housing providers to tackle the problems. I am sure that the Housing Minister will be happy to meet him.
Mr Dillon
Will the Secretary of State consider allowing councils the ability to buy land for houses based on current use rather than hope value, and commit to reforming the Land Compensation Act 1961?
Angela Rayner
The hon. Member will know that we are looking at a number of measures to help council houses to be built. Further measures will be announced in the Budget, as I have mentioned in a written ministerial statement today. We want councils and social housing providers to be able to build those homes, and we will help them as much as we can.
Josh Simons
We know that the barriers to building more houses in towns such as those I represent in Makerfield are often political, not technical. For years, Conservative Members allowed themselves to become mouthpieces for the blockers and the naysayers, which is why, as co-chair of the Labour Growth Group, I welcome the commitment by the Secretary of State to back builders. What steps is her Department taking to increase the supply of housing in towns such as those I represent in Makerfield?
Angela Rayner
I welcome my hon. Friend to his place, and the reason he is here—he is absolutely correct on this—is that the previous Government did nothing to help house building, and we did not see growth either. This Government will reform our planning system, deliver a new generation of new towns, unblock stalled housing sites and reform the housing market, as well as delivering the biggest increase in social and affordable house building in a generation.
Sir Edward Leigh (Gainsborough) (Con)
With so much good agricultural land now covered by solar panels, how will the Government incentivise builders to build on brownfield rather than good agricultural land, thus ensuring regeneration rather than imperilling food security?
Angela Rayner
The right hon. Member will know that we have already set out a number of steps, including the brownfield passport and the national planning policy framework, and the use of local housing targets to ensure that brownfield is used first and we get the houses that we desperately need. For the last 14 years, the Conservatives failed to meet their housing target every single year. This Government are determined to meet our target.
David Simmonds (Ruislip, Northwood and Pinner) (Con)
Certainty for councils is vital for housing delivery, but given the uncertainty created by the Government’s new top-down targets, which will delay the implementation of local plans and therefore planning decisions, how confident are the Government of meeting their housing targets?
Angela Rayner
Britain is facing the sharpest housing crisis ever because of the failure of Conservative Members. We will ensure, through our mandatory housing targets and in the announcements that have been made, and that will be made in the Budget, that we get the houses that Britain needs. [Interruption.]
Mr Speaker
Order. I do not want to hear a conversation all the way through.
David Simmonds
In the rush for numbers, we must not ignore the need to ensure that new homes are built to appropriate standards. Given that the Under-Secretary of State for Housing, Communities and Local Government, the hon. Member for Bethnal Green and Stepney (Rushanara Ali), has been stripped of responsibility for building safety because of conflicts of interest, can Ministers assure the House that the haste for targets will not undermine building safety?
Angela Rayner
We will ensure that houses are built to decent homes standards, which we have already set out, and that we meet those targets—unlike in the 14 years under the Conservatives.
Mr Will Forster (Woking) (LD)
John Slinger (Rugby) (Lab)
The Secretary of State for Housing, Communities and Local Government (Angela Rayner)
This Government are getting on with fixing the mess the Tories left behind. We will deliver the biggest increase in social and affordable house building in a generation, and at the Budget this week the Chancellor will set out the next steps, including an additional £500 million for the existing affordable homes programme to deliver up to 5,000 new social and affordable homes.
David Smith
I thank the Secretary of State for her answer. Conservative-run Northumberland county council’s own figures show that over 6,000 people in Northumberland are not adequately housed. Despite that, since the Conservatives have led the council, its own housing stock has decreased in number. Does the Secretary of State agree that we need more social homes in the right places to support the thousands of people in North Northumberland in need of a safe and secure place to live?
Angela Rayner
I welcome my hon. Friend to his place, and he is absolutely right: it is a source of national shame that just over 1.3 million households are on social housing waiting lists. Nearly 14,000 of them are in Northumberland alone. This Government do not accept that it has to be this way; we will deliver a fairer, more sustainable right-to-buy scheme where existing social housing stock is protected to meet housing need. I recognise the particular housing challenges faced by rural communities, and that is why the Government announced that the 2021 to 2026 affordable homes programme will be targeted, so that 5% to 10% of delivery outside London will be homes in rural areas.
Warinder Juss
Our plan to build 1.5 million homes during this Parliament must include the building of affordable homes, which implies that we will build more council housing. What reassurance can the Secretary of State give to my constituents in Wolverhampton West that they will have access to good-quality affordable homes, particularly for first-time buyers, and that if they need social housing, they will not have to wait excessive periods of time to get a council house?
Angela Rayner
Again, my hon. Friend makes an important point. We want to support councils to make a greater contribution to affordable housing supply. That is why the Chancellor will set out at the Budget our plans to allow councils to keep 100% of the receipts generated by right-to-buy sales and to increase protections for newly built social homes. We are committed to giving first-time buyers a first chance to buy homes and to introducing a permanent, comprehensive mortgage guarantee scheme.
John Slinger
At Rugby borough council, there are 300 households on the waiting list for social houses. Officers and councillors are working hard to meet the demand. They have knocked down older tower blocks and are replacing them with one to four-bed, energy-efficient, good-quality homes. Last year was the first year for many years that they built or acquired more social homes than were lost through right to buy. Does my right hon. Friend agree that while that is good work, my council is ultimately able only to tread water? My constituents who are in need of decent, affordable social homes desperately need a Government who will help councils to reverse this trend. Will she consider visiting Rugby to see the great work being done in difficult circumstances?
Angela Rayner
I once got stranded in Rugby on a train, so I have visited that wonderful area before. I am in complete agreement with my hon. Friend; councils should not be losing homes through right to buy quicker than they can be replaced. It is great to hear that councillors in Rugby are working hard to meet demand. The Chancellor will set out at the Budget the action we are taking to reduce right-to-buy discounts to deliver a more sustainable scheme. We will also increase protections on newly built social housing to allow councils to keep 100% of the receipts generated by right-to-buy sales.
Lee Anderson (Ashfield) (Reform)
In Ashfield, we have a big problem with nuisance tenants in social housing, who are creating mayhem and upsetting their neighbours and the neighbourhood with crime, antisocial behaviour, drug dealing and so on. Does the Secretary of State agree that these nuisance tenants should be given one chance, and if they cannot behave themselves, they should be evicted and refused access to social housing in the future?
Angela Rayner
I agree with the hon. Member about nuisance neighbours; we do need to do something about that. That is why there are provisions, so that councils can take action on people who are nuisance neighbours. They should not be terrorising other people who are trying to live nice lives.
Jess Brown-Fuller (Chichester) (LD)
I pay tribute to Westbourne community land trust, which, after six long hard years, has finally started delivering affordable homes for its community. That is exciting for the trust, and I was delighted to put a spade in the ground when it started building. Does the Secretary of State agree that communities are best placed to understand the need for housing in their area? Will she make it easier for community land trusts to acquire land and build homes quickly?
Angela Rayner
The hon. Member makes an important point, and I welcome her to her place. We want to see communities being able to build houses, and we want to ensure that those houses are safe and secure and that we work with community housing trusts and others to deliver the 1.5 million homes. I am sure that the Housing Minister will be happy to meet her to discuss the matter.
Sir Ashley Fox (Bridgwater) (Con)
There are private developers in my constituency in Bridgwater that have obligations to build social homes and are ready to do so. The difficulty they face is that there is no social landlord available to take those units. What steps will the Deputy Prime Minister take to ensure that those units can be built to house local people?
Angela Rayner
The hon. Gentleman makes an important point. I am aware of those concerns, and the Government will continue to work with house builders, local authorities and affordable housing providers to tackle the problem. We need to make sure that section 106 notices are adhered to and that when we have affordable and social housing on those sites, they are tenanted and people are in there.
Dr Beccy Cooper (Worthing West) (Lab)
Lisa Smart (Hazel Grove) (LD)
The Secretary of State for Housing, Communities and Local Government (Angela Rayner)
As I have already told the House, this week’s Budget will set out our next steps to put us on the path to delivering the biggest increase in social and affordable house building in a generation. The Chancellor will set out further details on a number of measures, including a cash injection for the affordable homes programme, confirming funding for new social housing projects and a consultation on a long-term social housing rent settlement. We will provide certainty and stability, and reform right to buy to deliver a fair, sustainable scheme.
Lisa Smart
Hazel Grove’s 16 and 17-year-olds are all bright and articulate and never backwards in coming forwards to tell me what we need to do in this place, but they are denied their voice at the ballet box, unlike their Scottish and Welsh peers. When will the Government correct this imbalance, deliver on their manifesto promise and roll out votes at 16 across the United Kingdom?
Angela Rayner
Far be it from me to take on the Hazel Grove 16 and 17 year-olds—the hon. Member knows that I know Hazel Grove very well. This Government are committed to our manifesto commitment to give votes at 16, and we will make sure that we do that before the next general election.
Helena Dollimore (Hastings and Rye) (Lab/Co-op)
In 2022, Lubov Chernukhin opened an amusement centre in Hastings town centre known as Owens. The project received more than £400,000 of taxpayer money as part of the Conservatives’ levelling up towns fund plans. Ms Chernukhin has also donated more than £200,000 to the Conservative party. Shortly after opening, Owens closed, and earlier this month it was covered in boarding, which now dominates Hastings town centre. Can the Minister advise me how my constituents can get their money back, and how we can ensure that money is never wasted again like that?
Mrs Badenoch
I apologise, Mr Speaker. I will check with my office. I cannot say for certain that they did not let the hon. Member know.
Does the right hon. Lady agree that reducing the capacity of councils by 20% by allowing workers an additional paid day off every week—that is what a four-day week actually is—is unacceptable and does not provide good value for money for taxpayers or residents?
Angela Rayner
I am really proud of our Employment Rights Bill and I am really proud to stand here as someone who advocates for flexible working. We do not dictate to councils how they run their services; we work with councils. The right hon. Lady should be able to work out that flexible working is no threat to business and no threat to the economy. In fact, it will boost productivity.
Darren Paffey (Southampton Itchen) (Lab)
Liz Twist (Blaydon and Consett) (Lab)
Angela Rayner
The new deal for working people is contained in the Employment Rights Bill, which had its Second Reading last week. We will continue to push forward other measures that do not require legislation, but what we hope to see is a new culture between business, trade unions and local communities to ensure that work really does pay.
Oliver Ryan (Burnley) (Lab/Co-op)
I thank the Secretary of State for everything that she is doing to tackle Islamo-phobia. This anti-Muslim discourse is a scourge on our communities in Burnley, Padiham and Brierfield. Will she join me in celebrating the work of local volunteers, churches, mosques, Lancashire police and others who organised Burnley’s “Diversity Picnic—Bubbles in the Park”, and who worked so successfully in averting potential disturbances over the summer?
Angela Rayner
I thank my hon. Friend for his question. I cannot wait to join him at Bubbles in the Park on a future date, as Burnley is not that far away from my constituency. He is absolutely right to celebrate the work of volunteers in communities and public servants, who give their time and energy to strengthen our local areas and bring people together.
James MacCleary (Lewes) (LD)
Social and Affordable Housing
Angela Rayner Excerpts(3 weeks, 5 days ago)
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The Secretary of State for Housing, Communities and Local Government (Angela Rayner)
This week’s Budget will set out how the Government will deliver more affordable housing and ensure that social housing is available for those who need it most.
This will include an immediate one-year cash injection of £500 million to top up the existing affordable homes programme, which will deliver up to 5,000 new social and affordable homes, bringing total investment in housing supply in 2025-26 to over £5 billion. This comes ahead of the multi-year spending review next spring, where the Government will set out details of new investment to succeed the 2021-26 affordable homes programme. This new investment will deliver a mix of homes for sub-market rent and home ownership, with a particular focus on delivering homes for social rent.
The Government will also consult on a new five-year social housing rent settlement, which caps the rents that social housing providers can charge their tenants, to provide the sector with the certainty it needs to invest in new social housing. The intention would be for this to increase with consumer prices index inflation figures and an additional 1%. The consultation will also seek views on other potential options to give greater certainty, such as providing a 10-year settlement.
These measures to increase affordable housing come alongside changes to the right-to-buy scheme. England’s existing social housing supply is depleted every year by the scheme while also disincentivising councils to build new social housing. To address this, the Chancellor will confirm at the Budget that councils will be able to retain 100% of the receipts generated by right-to-buy sales. This will enable councils to scale up delivery of much needed social homes while still enabling long-standing tenants to buy their own homes. The Chancellor will also set out how right-to-buy discounts will be reduced to protect existing social housing stock to meet housing need, while ensuring that long-term tenants can still benefit. This will deliver a fairer and more sustainable scheme that also presents better value for money for councils.
The Chancellor will also confirm at the Budget £128 million of funding to support the delivery of new housing projects, comprising of:
Confirmation of a £56 million investment at Liverpool Central Docks, which is expected to deliver 2,000 homes in north Liverpool, along with office, retail, leisure and hotel facilities. This will transform Liverpool’s former dockland into a thriving waterfront neighbourhood.
A £25 million investment in a joint venture to establish a new fund with Muse Places Ltd and Pension Insurance Corporation to deliver 3,000 energy-efficient new homes across the country, with a target of 100% of these being affordable.
The confirmation of £47 million to local authorities to support the delivery of up to 28,000 homes that would otherwise be stalled due to “nutrient neutrality” requirements. This funding will not only unlock much needed new housing, but clean up our rivers in the process.
[HCWS169]
Employment Rights Bill
Angela Rayner ExcerptsMonday 21st October 2024
(1 month ago)
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The Deputy Prime Minister (Angela Rayner)
I beg to move, That the Bill be now read a Second time.
I declare that I am a lifelong proud trade union member—[Hon. Members: “Hear, hear.] When the Government took office and I took this job, we promised the biggest upgrade to workers’ rights in a generation, nothing less than a new deal for working people. We said that we would introduce a Bill to deliver that within 100 days, and we have fulfilled the promise we made to the British public. Let us be clear: too many working people have had to wait too long for change.
Over decades, the good, secure jobs that our parents and grandparents could build a life on were replaced by low-paid and insecure work. Wages flatlined, in-work poverty grew, growth was strangled and the Tories left behind a battered economy that served no one. Today, this Labour Government, led by working people for working people, will start to turn the tide.
First, I want to note the reasoned amendment. Our reforms are ambitious—they have to be to bring real change. But we have engaged extensively and will continue to do so. Today we are publishing a package of consultations on strengthening statutory sick pay, zero-hours contracts, industrial relations, collective redundancy and fire and rehire. As the impact assessment we have published today shows, the Bill is a pro-growth Bill.
This landmark Bill—pro-growth, pro-business and pro-worker—will extend the employment protections given by the best British companies to millions more workers.
James Wild (North West Norfolk) (Con)
In a discourtesy to the House, the very extensive impact assessment to which the Deputy Prime Minister has referred was published only a couple of hours before the debate, but one thing that it says is that the estimated cost of the measures could be £4.5 billion a year. How does loading costs on to employers help to boost growth and job creation?
Angela Rayner
The impact assessment also makes it clear that the Bill will have a positive impact on growth. More than 10 million workers, in every corner of this country, will benefit from Labour’s plan, and the money in their pockets will go back into the economy and support businesses, in particular those on high streets.
Across the business spectrum, from giants like Sainsbury’s and Octopus Energy to small and medium-sized companies like Richer Sounds, successful firms already know that strong employee rights mean strong growth opportunities. The Secretary of State for Business and Trade and I have just been to the Co-op in County Durham to see how it retains valuable talent, boosts profits, and powers ahead with enlightened policies that support good working lives for its staff. The Bill will bring all businesses on board.
Graham Stuart (Beverley and Holderness) (Con)
The Government’s own impact assessment states that
“the impact on growth could”—
only could—
“be positive”,
and that any such impact
“would be small in magnitude.”
The negative impacts, not least on small businesses, will be very serious in magnitude, as my hon. Friend the Member for North West Norfolk (James Wild) laid out. Will the Deputy Prime Minister please explain how she will minimise the negative impacts?
Angela Rayner
We have already been working with businesses while bringing forward the Bill, and we will continue to do that through the consultations. We have recognised probation periods, for example, but we do not think that people should not have rights two years into their employment.
We are listening, but I say to Conservative Members, who promised employment Bill after employment Bill and then never delivered them, that the people of this country deserve secure fairness at work, and this Labour Government will deliver it. Almost 9 million employees will benefit from protection against unfair dismissal from day one, 1.7 million will benefit from new policies on flexible working, and up to 2 million will receive a right to bereavement leave. Thousands of pregnant women and mothers will benefit from new maternity protections, and tens of thousands of fathers and partners will be brought into the scope of paternity leave. We will deliver a genuine living wage that matches the cost of living.
In total, more than 10 million people will benefit from Labour’s plan in every corner of this country, so if you are in casual work, unable to rely on guaranteed hours, this Labour Government are delivering for you. If you are working hard on low pay and struggling to make ends meet, this Government are delivering for you. This is a Government back in the service of working people.
Dr Luke Evans (Hinckley and Bosworth) (Con)
Can the Deputy Prime Minister define “working people”?
Angela Rayner
The Conservatives had 14 years to support the working people of this—[Interruption.]
Angela Rayner
Will the hon. Member listen to my response? I gave way to him. For 14 years, the Tories promised employment Bills and an industrial strategy, and in 14 years they delivered the highest cost of living for the working people of this country. It will be this Labour Government who deliver for them.
This is a Government back in the service of working people, building an economy fit for the future and making work pay. For the first time ever, we have instructed the Low Pay Commission to take account of the cost of living when setting the minimum wage, because everyone deserves a proper living wage for a proper day’s work. We have already moved to protect 4 million self-employed workers from late payments with the new fair payment code, and we have already encouraged employers not to use the ineffective and failed minimum service laws, which did not stop a single day of industrial action while in force, before we repeal them for good. That is a bold start, but we are going further. The UK labour market is not delivering for workers or businesses, and it holds back the UK economy. We know that things have to change. The Bill marks a momentous opportunity to chart a new route to growth—one built from the bottom up and the middle out—alongside the £63 billion of investment into the UK that was announced last week. Higher growth, higher wages and higher productivity—a new partnership between workers and business.
Wera Hobhouse
Sexual harassment in the workplace is absolutely horrendous and has been terrible in demotivating people from staying in their workplaces. Following my Worker Protection Act 2024 becoming law, the Government proposals go even further on third-party harassment in the workplace. Does the Deputy Prime Minister agree that the Bill will encourage people by making our workplaces safer?
Angela Rayner
I agree with the hon. Member and thank her for her work in that area. We must ensure that workplaces have a good culture that does not tolerate any form of harassment, including sexual harassment, because that is bad for business as well.
The major achievement of parts 1 and 2 of the Bill will be to strengthen rights for working people. That is personal for me: I started my working life as a carer on casual terms, not knowing if there would be a pay cheque next month. The fear of not being able to provide for my young family, and of losing everything, stuck with me. Now that I am at the Cabinet table, I am determined to deliver for the millions of people in the position that I was once in, and to bring all companies up to the standard of the best when it comes to workers’ rights. The Bill is a recognition and celebration of the many employers that are already implementing such measures and, in many cases, go much further.
Rosie Wrighting (Kettering) (Lab)
I welcome the new Labour Government’s approach to ensuring that my constituents feel the benefit of economic growth. As my right hon. Friend will know, more than 1 million people on zero-hours contracts will benefit from her guaranteed hours policy. Does she agree that the Bill will raise living standards across the country?
Angela Rayner
I agree, and can confirm to the House that the Bill will finally end the exploitative zero-hours contract. Up to 2.4 million workers will finally have the right to a contract that reflects the number of hours that they work.
For too long, working people have been subject to the shocking practice of fire and rehire. Often, even the threat of fire and rehire means that people voluntarily agree to lower pay and reduced terms and conditions. Our Bill will end those bullying tactics for good, putting an end to fire and rehire and to fire and replace, unless employers can prove that they face financial difficulties that threaten the survival of their business and that changing the employee’s contract was unavoidable. After years of campaigning, working people finally have a Government who listen. No longer will working people face the scourge of fire and rehire.
Florence Eshalomi (Vauxhall and Camberwell Green) (Lab/Co-op)
A number of our constituents were threatened with fire and rehire during the covid pandemic—shameful acts by their employers. People were fearing for their livelihoods while that crisis was going on. Does my right hon. Friend agree that we have waited far too long and cannot end the scourge of fire and rehire soon enough in order to give workers the protection that they need and deserve?
Angela Rayner
I agree with my hon. Friend. The previous Government promised to do something about the practice but failed to do anything.
Dr Andrew Murrison (South West Wiltshire) (Con)
Does the Deputy Prime Minister agree that growth, if it comes, will come from small and medium-sized enterprises, which are the bedrock of industry in this country? Does she accept that although the measures may be capable of being accommodated by large businesses with big human resources departments, they certainly will not be by small and medium-sized enterprises, so the Bill is likely to damage the growth that she insists will come under a Labour Government?
Angela Rayner
I agree with the right hon. Gentleman on the importance of small and medium-sized businesses, which do a fantastic job and contribute widely to our economy. That is why we have engaged with small and medium-sized enterprises. Many of them understand that if there is clarity around what we are doing and if we consult like we did with probation periods, then we are working with them. But many of them also recognise that the scourge of insecure, low-paid work in this country at the moment is holding Britain’s economy back. That is what we are going to change.
Paul Waugh (Rochdale) (Lab/Co-op)
The Deputy Prime Minister referenced the extra help for working parents that the Bill will introduce. Does she agree that that stands in stark contrast to the suggestion of some on the Conservative Benches that maternity pay has “gone too far”?
Angela Rayner
I agree with my hon. Friend. When the previous Labour Government brought in the national minimum wage they had the same sort of arguments made at them, but what we actually saw was that the minimum wage lifted millions of people out of poverty. It will be this Labour Government who can stand proudly and say that we stood up for the workers, and for those good employers in our country that are doing the right thing by protecting and looking after their employees.
David Baines (St Helens North) (Lab)
We are clearly going to hear a lot of the same arguments that we heard years ago, when Labour introduced the minimum wage. Does the Deputy Prime Minister agree that good employers have nothing to fear from the Bill, and working people have a lot to celebrate?
Angela Rayner
I agree with my hon. Friend. The Bill is pro-worker and pro-business; that is the context in which the Bill has come to fruition. We have been consulting wide and long on the measures, and we believe they strike the right balance to get our economy working across the board, so that people can contribute and feel that their contribution is valued as part of the UK economy.
The Bill also delivers a once-in-a-generation upgrade of the rights of our proud seafarers. Never again will any company be able to get away scot-free with exploiting a loophole to sack employees without notice. No longer will our seas be the byword for a race to the bottom on standards.
The next step in our package to transform the rights of working people is on unfair dismissal. At present, employees must wait two years for basic protections against unfair dismissal, so it is not surprising that they can be loath to change jobs and restart the clock. That is not right. It deprives people of promotion opportunities and pay rises, and it limits businesses’ ability to recruit. Under the Bill, employees will not have to wait years for protection from unfair dismissal. Instead, they will receive it from day one. Those measures alone will benefit close to 9 million people.
Saqib Bhatti (Meriden and Solihull East) (Con)
The Deputy Prime Minister talks about seafarers not being abused, but did she apologise to DP World last week?
Angela Rayner
I do not know what the hon. Member is getting at. Maybe he is getting at the former Conservative Transport Secretary, who referred to them as pirates of the high seas or weasels—I do not know. I have just said clearly to all businesses in the UK that I want to work with them to ensure that we value their employees. Many of them are onboard: they recognise that it is good for business, good for growth and good for their employees.
Kit Malthouse (North West Hampshire) (Con)
I draw attention to my entry in the Register of Members’ Financial Interests.
In relation to the point raised by my right hon. Friend the Member for South West Wiltshire (Dr Murrison), I understand that the right hon. Lady believes she is fulfilling a manifesto commitment, and we have to respect that. However, I hope she recognises that while these regulations will apply across the whole of the economy, the dynamics within small businesses and—in particular—microbusinesses are very different from those within large businesses. For example, if a business only has four employees and all four apply for flexible working, as the Bill provides for, it becomes not just a logistical and administrative nightmare but a personal nightmare for the person who is trying to run that business. I hope that as the Bill progresses, the right hon. Lady will look at what has been a customary carve-out for small businesses and consider whether that might be appropriate for specific measures.
Angela Rayner
Some of the measures in the Bill do recognise the difference between large employers and smaller ones, but we also have to ensure fairness and clarity of purpose in this country, and I think this Bill strikes the right balance. As I have said to other hon. Members who have raised issues regarding small and medium businesses, we are working with those businesses. We have already listened regarding probation periods: the Bill now creates a new statutory probation period so that employers and employees can check whether a job is a good fit. If it turns out not to be right, the Bill allows for a new lighter-touch standard of fairness for employers to meet when they dismiss someone, so I think we are striking the right balance. We have worked very hard on this piece of legislation. If workers are dismissed unfairly, everyone deserves the right to protection, however long they have been in post. With Labour, they will have that right.
Turning to statutory sick pay, no one should feel forced to struggle through work when they are not well. Our view is simple: everyone should be entitled to sick pay from the first day that they are sick, regardless of their earnings, yet 1.3 million employees are currently excluded because they do not earn enough. That means that lower earners, including carers, go to work when ill because they cannot afford not to do so, risking infecting the vulnerable, the elderly, and others with whom they come into contact. No one should want that. Under this Bill, all employees will be entitled to sick pay however much they earn, and that sick pay will be paid from their first day of being ill.
Angela Rayner
I have already given way to the right hon. Member, and there are so many other Members who want to speak.
This Government know that the current system does not support working families. We said that we would make flexible working the default, and the Bill will do just that. Flexible working makes workers happier, and we know that businesses that offer it benefit from bigger, better and more diverse recruitment pools. At the same time, we recognise that not all workplaces can accommodate all flexible working requests, so businesses will be able to negotiate or reject unworkable requests as long as that rejection is reasonable.
Sir Alec Shelbrooke (Wetherby and Easingwold) (Con)
Who would decide whether a rejection is reasonable or unreasonable?
Angela Rayner
There will be statutory guidance, but of course, it would depend on the various different circumstances. We saw during the covid pandemic that people were able to be incredibly flexible in their work. It is with that mindset that I ask employees and employers to look at how they deliver services, because far too much talent goes out of our economy because of inflexibility. Employers should think about how much talent they can retain in their business by keeping people in work; many of the good employers already know that, and offer way more flexibility than we are suggesting in our Bill.
The current parental leave system is also outdated, which is not right. Under the Bill, fathers and partners will be able to give notice of their intention to take paternity leave and unpaid parental leave from their first day in a new job. New mums also lack the protection they deserve. We know that the Conservative party’s solution is to go back to the dark ages and scrap maternity pay altogether; if the Conservatives had their way, as a single mum, I would have been left with nothing. It was a Labour Government who introduced the maternity allowance as the number of mothers in the workforce grew, and while the Conservative party—out of step with modern Britain—cannot wait to get rid of it, I say that we will never, ever stop defending it.
Rachael Maskell (York Central) (Lab/Co-op)
I am grateful to my right hon. Friend for giving way—what an incredible legacy she is setting down today!
Adoptive parents clearly need time with their children as they bring them into their family, but self-employed adopters do not have the same privileges. Will my right hon. Friend look at how we can ensure that those parents also have proper statutory rights to take leave and receive pay?
Angela Rayner
I thank my hon. Friend for making that really important point. This is the start of a process. There are a number of consultations, such as for the self-employed and on a single category of worker, and they will continue, because some of these things are more complex than what we can deliver in this Bill. But I say to my hon. Friend and to other Members: please come to this in the spirit of what we want, which is to improve working people’s lives. As I have said, many employers already go above and beyond what we are saying in this Bill. I hope we can start to celebrate those employers who do so and to spread that across the economy.
Ms Stella Creasy (Walthamstow) (Lab/Co-op)
May I join others in celebrating this Bill and what it represents? My right hon. Friend talks about employers who are already going above and beyond. Frankly, they get it that, out there in the real world, supporting families is good for the economy and good for growth; that includes dads, who we all recognise have responsibilities. What more can she tell us about that spirit of openness in the Bill and the opportunities to look at parental leave, particularly paternity leave? What more can we do to help more families to take it up and get longer?
Angela Rayner
I thank my hon. Friend for making that important point. We all agree across the House that families play an important role, that businesses can help to support families, whatever size or shape they are, and that we must go much further to make that happen.
The Bill goes further by making it unlawful to dismiss pregnant women, mothers on maternity leave and mothers who return to work during a six-month period after they return, except in certain specific circumstances. For women in work, we will not stop there. Eight out of 10 menopausal women are in work. For most, there is no support. When workplaces fail to support women, we fail in our moral duty to treat people equally, and employers lose out on talent and skills. On pay, too, we are failing women. The national gender pay gap still stands at over 14% and is not narrowing fast enough, so we will be requiring action plans for large employers to address the pay gap and support women during the menopause.
It is a sad reality that women often find the workplace uncomfortable and unsafe. Sexual harassment at work can destroy confidence and ruin careers. We will do everything in our power to tackle it. The Bill will strengthen the duty on employers to prevent sexual harassment of employees, and it will strengthen protections for whistleblowers by making it explicit that if they do the right thing and speak up about sexual harassment, the law will protect them.
Through this Bill, the party of maternity pay and of the Equal Pay Act 1970 will introduce the next generation of rights for working women. Central to all these reforms is our belief that all employers should always support their employees. The best ones already do.
Steve Witherden (Montgomeryshire and Glyndŵr) (Lab)
In early September, over 500 Oscar Mayer workers, organised by Unite the Union, launched strikes against the company’s appalling use of fire and rehire. Many of these workers are my constituents and are facing serious threats to their pay and working conditions, with potential losses of up to £3,000 annually. I hugely support this legislation, but immediate action is crucial to protect my constituents and workers across the UK from such exploitative practices. Will my right hon. Friend provide clarity on the timescales for reforms to unfair dismissal?
Madam Deputy Speaker (Ms Nusrat Ghani)
Order. Before the Deputy Prime Minister responds, may I say that if there are declarations of interest to be made, even in interventions, they should be made on the Floor of the House?
Angela Rayner
I thank my hon. Friend for his intervention. That is why we have moved at pace. The previous Government promised an employment Bill to protect workers and they did not deliver. Within our first 100 days, we are delivering this employment Bill.
Losing a loved one is among the hardest things for any of us. That is why in this Bill we are setting a clear standard for businesses, giving employees the right to bereavement leave. Taken together, these new rights for working people—sick pay when they need it, an end to exploitative zero-hours contracts and to fire and rehire, bereavement leave, expanded entitlements, paternity leave and new protections for women in work—represent the biggest upgrade for working people in a generation, but we are not stopping there.
Johanna Baxter (Paisley and Renfrewshire South) (Lab)
Does my right hon. Friend agree that the Bill not only represents the biggest uplift in workers’ rights in a generation, but strengthens their enforcement through new enforcement measures? That stands in stark contrast to the Conservatives, who brought in unlawful employment tribunal fees.
Angela Rayner
My hon. Friend makes a very important point. We want the culture to change as well. We have had a race to the bottom where workers have not been protected, and we have seen the biggest wave of strike action because of the previous Government.
We want employers and trade unions to come together to grow our economy. The employers and the unions are up for that challenge, because we know that the world of work is fairer and more productive when working people can come together to negotiate fair pay and decent conditions. That is why we are reinstating the school support staff negotiating body in recognition of the vital role that support staff play in the workforce and in young people’s education.
As a former carer, I have said from day one that in this place I will champion carers and the complex, high-quality and professional work that they do. I am so proud to say that after 14 years, their extraordinary, life-saving contribution to our community will no longer be devalued by low pay and lack of career progression. For the first time, thanks to this Labour Government, there will be a historic fair pay agreement process in the adult social care sector, with a new body empowered to negotiate pay and conditions and ensure that training and a career structure are in place. At last, care will be rightly regarded as a multi-skilled profession and carers will be confident that they have the respect and income that they deserve for looking after our vulnerable loved ones and helping to manage the pressures on the NHS and in social care.
Paula Barker (Liverpool Wavertree) (Lab)
I draw the House’s attention to my entry in the Register of Members’ Financial Interests. Does my right hon. Friend agree that care workers are often the Cinderella service? They are low paid, but certainly not low skilled. It is time we got to grips with hostile employers who do not pay travel time.
Angela Rayner
My hon. Friend makes a very important point. The disparity in the terms and conditions for care workers actually impedes recruitment: we are seeing huge numbers of vacancies in the care sector. Through the fair pay agreement, I want to see carers being treated with fairness for the valuable contribution they make. They are also key to tackling the challenges we face in our NHS.
Alison Bennett (Mid Sussex) (LD)
I thank the right hon. Lady for raising the issue of care workers and the great contribution that they make by looking after those who need care. Does she agree that the minimum wage for a carer should be increased by £2 an hour, in line with Liberal Democrat policy?
Angela Rayner
We have already written to the Low Pay Commission, as I have set out, and we want to go further through the fair pay agreement to make sure that carers are recognised for the valuable role they play. Care workers are not just people who do the shopping or call in for 15 minutes; they handle complex needs in the community and look after some of our most vulnerable loved ones. They should get the recognition they deserve, and that is why we are taking these measures.
We know the valuable contribution that trade unions make. That is why we are resetting industrial relations. The Conservatives presided over strike Britain with their scorched earth approach to strikes. First, we are repealing the Strikes (Minimum Service Levels) Act 2023. Anyone with a brain could see that that legislation would do two things: increase tensions and fail to prevent a single day of industrial action. We said so at the time, and what happened? The rail dispute cost our economy over £1 billion. The law has failed and has no reason to stay on the statute book.
We are also repealing nearly every part of the flawed Trade Union Act 2016, which tried to smother trade unions in form filling and red tape and prevent them from doing their job. We will go further by strengthening the voice of working people by making it easier for trade unions to get recognised, giving them the right of access to workplaces and making sure that they have enough time to represent their members. When the rights of working people are flouted, a new fair work agency will be empowered to investigate. Today we are also launching a consultation on modernising trade union laws so that they are fit for the modern workplace and our modern economy.
In under 100 days, we have put together a transformative package that marks a new era for working people. We know that the Conservatives will oppose this every step of the way. We know because they have history, just as they opposed Labour’s minimum wage and now, shamefully, want to take us back to the dark ages when women were denied maternity pay. It is clear that they are out of step with modern Britain.
Our plans mark a new way forward—a new deal for working people, making jobs more secure and family friendly, banning exploitative zero-hours contracts, supporting women in work at every stage in their life, a genuine living wage and sick pay for the lowest earners, further and faster action to close the gender pay gap, ensuring that rights are enforced and that trade unions are strengthened, repealing the anti-worker, anti-union laws, turning the page on industrial relations and ending fire and rehire, while giving working people the basic rights that they deserve from day one in the job. This is a landmark moment, delivered in under 100 days. This is a pro-business, pro-worker, pro-growth Bill and a pro-business, pro-worker, pro-growth Government. Today, after 14 years of failure, we are starting a new chapter and decisively delivering a better Britain for working people.
Madam Deputy Speaker (Ms Nusrat Ghani)
I call the shadow Secretary of State.
Renters’ Rights Bill
Angela Rayner Excerpts(1 month, 2 weeks ago)
Commons ChamberRead Full debate Read Hansard Text Watch Debate Read Debate Ministerial Extracts
The Secretary of State for Housing, Communities and Local Government (Angela Rayner)
I beg to move, That the Bill be now read a Second time.
I hope the entire House will agree that everyone should live in a decent, safe and affordable home. Everyone should, but not everyone can. That is why, as Housing Secretary, I have put decency at the heart of my plans for housing, and taken steps to ensure that all homes are warm and safe. Nowhere is that more needed than in the private rented sector, which plays an undeniably critical role in our housing system.
I want to be clear from the outset that this Government recognise the important role of landlords, most of whom provide good-quality homes for their tenants. But this is a sector in serious need of reform. Millions of people live in fear of section 21 no-fault evictions that could uproot them from their homes and communities, and they are forced to live in homes that are riddled with damp and mould, too scared to complain in case they end up being evicted and homelessness, and knowing that another potential tenant will be desperate enough to move in.
Mr Luke Charters (York Outer) (Lab)
During the general election campaign—a stressful time indeed— I was served with a section 21 notice. Thankfully, my family supported me, but such support is not available to everyone. Does my right hon. Friend agree that ending no-fault evictions will give British families the peace and stability that they desperately need?
Angela Rayner
I thank my hon. Friend for giving us the benefit of his personal experience—an experience that is suffered by far too many families. Hundreds of thousands of young families are in temporary accommodation, in many cases because of section 21. In 2019 the ending of this scandalous practice was included in the previous Government’s manifesto, but we are still waiting. It has taken us just four months to bring the Bill to the House, because we felt that the need for it is critical. Too many young people are priced out of leaving home, unable to move to the big city where they could start their careers because of sky-high rents, and that too must change—I know that many hon. Members agree.
The Conservatives promised to pass a renters reform Bill in their 2019 manifesto, but, in a desperate attempt to placate their Back Benchers, they caved in to vested interests, leaving tenants at the continued mercy of unfair section 21 eviction notices. They dithered, delayed and made excuse after excuse for their inaction. What has been the human cost of that failure? Since 2019, when the Conservatives first promised action, more than 100,000 households have faced a no-fault eviction, with 26,000 facing eviction last year alone. Too many families facing homelessness; too many families priced out of a safe and secure home; and too many families stuck in cold, rotting, damp homes—that is the inheritance that we need to fix.
Dawn Butler (Brent East) (Lab)
I thank my right hon. Friend for pursuing renters’ rights in this way. Does she agree with the Mayor of London that we should consider setting caps for rent increases?
Angela Rayner
I will set out later in my speech what we are doing to ensure that renters get a fair deal.
This is why we have moved so speedily in getting this Bill to its Second Reading. We will not take another four years, which is why we have done it in less than four months. I must give credit where it is due, because many parts of the Bill build on the good work of my predecessor in the Department. However, let me be clear that this is a fundamentally different Bill; it goes above and beyond the last Government’s Bill in several critical ways. This is not just a renters reform Bill; it is a Renters’ Rights Bill, a plan to ensure that all private tenants can aspire to a decent, affordable and safe home.
Sir Desmond Swayne (New Forest West) (Con)
Changing tenants involves significant expense for both tenant and landlord—my interests can be found in the Register of Members’ Financial Interests—and the ability of a tenant to end a tenancy after two months presents a significant risk to the landlord, particularly in the student rental market, where re-letting a property within the academic year can present a considerable difficulty. Will the Secretary of State at least consider amendments in Committee to address that issue?
Angela Rayner
I say to the right hon. Gentleman, whose interventions are normally more pithy, that the Bill accommodates the unique circumstances of students. I hope he can see that we are trying to strike a balance. I am sure that his entry in the Register of Members’ Financial Interests proves that he is one of those landlords I would like to commend for being decent landlords. We want to ensure that the standard that I am sure he gives to his tenants is applied across the whole country.
Many right hon. and hon. Members will have heard heartbreaking stories from constituents who have been forced to leave their homes with little or no justification. This Government will remove the threat of arbitrary evictions by finally bringing to an end no-fault evictions. Unlike the previous Government, who put in place last-minute caveats, we will abolish no-fault evictions for new and existing tenancies at the same time, to give all tenants the same security immediately.
Jake Richards (Rother Valley) (Lab)
In Maltby in my constituency, the campaign group Big Power for Little London has been campaigning to end no-fault evictions for years, because the community have suffered as a result of rogue landlords. I am very grateful to the Housing Minister, who is sitting next to the Secretary of State, for agreeing to meet the group later this year. Does my right hon. Friend agree that this Bill will be welcomed by the thousands of campaigners across the country who have fought so long for this important change?
Angela Rayner
I absolutely agree with my hon. Friend. I, too, pay tribute to the Housing Minister for the work that he did in opposition and in getting us here today.
In saying that we need to end the cruel practice of no-fault evictions, I recognise the huge pressures on the court system as a whole, which have been caused by years of Tory failure and neglect. To support the changes, we will digitise the county court possession process, working closely with colleagues in the Ministry of Justice to create a modern, efficient service for our courts. We will also take steps to ensure that, wherever possible, disputes will be resolved at an early stage, and the new private rented sector landlord ombudsman service that the Bill introduces will play a vital supportive role.
Shaun Davies (Telford) (Lab)
I welcome the Deputy Prime Minister to her place. Does she agree that no-fault evictions are bad not only for tenants but for local councils, which across the country spend billions of pounds on temporary accommodation? It causes havoc for children and the education system, as young people have to go from one school to another.
Angela Rayner
I absolutely agree with my hon. friend, and I pay tribute to him for the work that he did in local government before coming to this place. He will know about the direct impact of this issue, as will many Members of this House. It is not just about having a home; no-fault evictions have an effect on children, and on a person’s life, job, income and everything else that they want to do. That is why it is so important that, whereas the previous Government made no progress in four years, we are now at this stage of the Bill after four months and we intend to continue at speed.
Andrew George (St Ives) (LD)
I warmly welcome the Bill. It is right that we should regulate to avoid bad practice in the sector, but does the Secretary of State agree that measures should be available to enable, and indeed incentivise, good practice? Given that the previous Government gave millions of pounds to holiday homeowners in various tax incentives to encourage that sector, surely there must be methods by which the Government can incentivise good practice. Otherwise, the Bill might become counterproductive.
Angela Rayner
I thank the hon. Member for his comment. I hope that he recognises from my opening remarks that good landlords have nothing to fear from this Bill, and we will help them. The new database will help landlords to understand and meet their legal duties, and we will provide clear guidance. I will talk more about how that database will work.
Part 1 of the Bill will introduce a new, modern tenancy system that removes fixed-term tenancies, meaning that tenants can stay in their home until they decide to end the tenancy, and they will only need to give two months’ notice. This will end the injustice for tenants who want or need to leave at short notice but cannot, and allow both landlords and tenants the flexibility to respond to changes in their circumstances.
I want to make it clear that our Bill ensures that landlords will still be able to reclaim their properties when they legitimately need to, through clear and robust possession grounds. We have also considered the unique situation of student accommodation and specialist sectors such as stepping-stone accommodation, for which the Bill also includes a possession ground. In most cases, tenants will have four months’ notice, so that there is time to find a new home, and landlords will have to wait a year from the beginning of a tenancy before they can use the “moving in and selling” grounds for eviction. This honours our commitment to level the playing field decisively for renters, which goes further than the last Government’s ambitions. Of course, landlords will still be able to quickly evict tenants who engage in antisocial behaviour and make other people’s lives a misery, to protect the strong communities that we want to see flourishing around the country.
The Bill will also empower tenants to challenge unfair rent increases that are designed to drive them out. It will prevent tenants from being bound by rent review clauses, putting them in a stronger position to challenge unreasonable rent hikes at tribunal.
Jeremy Corbyn (Islington North) (Ind)
I welcome most of what is in this Bill. A third of my constituents live in the private rented sector. The last time I looked, there were hardly any available properties to rent in my constituency that were within the local housing allowance. The level of rent is astronomical, unaffordable and driving working-class communities out of inner-city areas. Does the Secretary of State not agree that the Bill needs to go further and bring in rent controls, so that housing is available for all people?
Angela Rayner
I understand the right hon. Gentleman’s point, but I disagree on how to resolve the issue. Rent controls restrict housing supply, which does not help anyone, but our Bill takes practical measures to help renters by empowering tenants to tackle unreasonable rent hikes and prohibiting unfair rental bidding, and we will continue to assess potential action on sky-high rents. Hopefully, we are taking measures that will help his constituents and others across the country.
Melanie Onn (Great Grimsby and Cleethorpes) (Lab)
Could my right hon. Friend clarify whether, under the Bill, landlords and letting agents will be prevented from requiring individuals who do not have all the correct supporting information to pay excessive deposits, which prohibit people from getting secure properties for their families?
Angela Rayner
My hon. Friend makes a really important point about deposits and paying rent in advance. This Bill will protect tenants from requests for large amounts of rent in advance, but we are in listening mode. We will keep this issue under review during the passage of the Bill, and we will take the necessary action. We think that we have done enough on that, but we are open to interventions, if people feel that they would help.
Unlike in the previous Government’s Bill, the tribunal will not be able to increase rent above what was originally proposed by the landlord. In cases of undue hardship, we will give the tribunal the power to defer rent increases by up to two months, thereby finally ending the injustice of economic evictions.
However, that is not all we will do to tackle unfair rent costs. We remain committed to ending rental bidding wars, which all too often price hard-working families out of a home. Landlords and letting agents will be required to publish an asking rent for their property, and will not be allowed to ask for, encourage or accept a higher offer. We are delivering real change for working people.
Andrew Griffith (Arundel and South Downs) (Con)
The challenges faced by tenants in the private sector are very real, but is the right hon. Lady familiar with the law of unintended consequences? What have she and her officials learned from the study of the application of similar rules in Scotland, which have made the plight of renters worse, not better?
Angela Rayner
I do not accept that from the hon. Member. We have had scare stories about this before. As I have said, the majority of landlords are doing the right thing. The Bill is about fairness for landlords and tenants, and I think it strikes the right balance. I am acutely aware of the law of unintended consequences. In fairness, the previous Government were batting around these ideas for years, after promising in their manifesto to tackle the issues, but they let down the people who are in these situations, who deserved better from their Government. This Government will do better than the previous Government.
As I set out at the start of my speech, tackling the blight of poor-quality homes is a priority of mine and of this Government. That is why part 3 of the Bill will apply a decent homes standard to the sector for the first time, requiring privately rented homes to be safe, secure and free from hazards.
Ben Coleman (Chelsea and Fulham) (Lab)
My right hon. Friend will be aware that the Darzi report last month highlighted the severe problem of damp and mould, particularly in the private sector, and the bitter impact of that, notably on children’s health. Over a third of my constituents in Chelsea and Fulham live in privately rented homes, and in Fulham the council has had to chase landlords 74 times in the past year alone to address damp and mould. It is tremendous that the Government are tackling this, and I know that my constituents will be delighted. May I ask her to ensure that councils are resourced sufficiently to exercise the stronger investigatory and enforcement powers that the Bill provides?
Angela Rayner
We are extending ring-fenced extra resources to councils, because we recognise the need to do that. I want to pick up on my hon. Friend’s comment on children’s health. This Bill will also make good on our promise to extend Awaab’s law to the private sector. When I met Awaab’s family recently, I made a commitment to putting safety first, and it is an honour to pay tribute to Awaab’s legacy, and to his parents’ resolute campaigning for meaningful change for the many thousands of families living in unfit homes. I hope that no family ever has to endure what that family had to.
Paul Waugh (Rochdale) (Lab/Co-op)
It was an utter tragedy and a source of national shame that the two-year-old toddler Awaab Ishak died of a respiratory disease caused by extensive mould in his family’s flat. I am delighted that this protection will be offered in the private rented sector. Will my right hon. Friend make sure that the private rented sector upholds its obligations to all its tenants in future?
Angela Rayner
Absolutely; I thank my hon. Friend for that comment. That has been at the forefront of our minds, and not just in our work on this Bill. Hon. Members will recall that it is only a few weeks since we had the report on phase 2 of the Grenfell inquiry, so when we talk about providing housing, it is at the forefront of my mind that houses have to be safe for people. It is absolutely scandalous that here in Britain at the moment we cannot guarantee that, and I will do everything I can as Secretary of State to fix that problem.
Talking about families more widely, we will also end the abhorrent practice of denying a family a home purely because they receive benefits or have children, by making it illegal for landlords and letting agents to discriminate against tenants on that basis. This Bill is about social justice and fairness for all.
Ms Stella Creasy (Walthamstow) (Lab/Co-op)
I thank my right hon. Friend on behalf of the many families in Walthamstow who have been in exactly that position. One of the things that drives my constituents mad is having to move repeatedly because of rent increases that they cannot afford, because it means that their good credit rating stops and starts, which makes it harder for them to get on the housing ladder. What more can we do to tackle this discrimination against tenants and give them a chance of owning a home in the future, by tackling this basic issue of credit ratings, perhaps with a good credit passport?
Angela Rayner
This is a wider issue to do with the poverty trap that so many people face this country. I am also proud to plug the employment Bill that will be coming forward this week. It is another incredibly important part of this Government’s agenda; the Prime Minister mentioned it earlier today. We want to make sure that the working people of this country feel better off, and are able to get on and do the things in life that we should expect anyone to be able to do—things that we were able to do as a result of the toils of the generations before us.
I want to talk database. Part 2 of the Bill will introduce a new online private rented sector database, to the benefit of landlords and tenants alike. Landlords will need to provide key information about the properties they let out, including around property standards and compliance with the law, helping tenants to understand more about the property and the landlord who they are looking to rent from.
Mr Joshua Reynolds (Maidenhead) (LD)
Energy efficiency is really important in the rented housing sector, so does the Secretary of State agree that it is important that the Bill ensures that landlords upgrade their rented properties to an energy performance certificate grade C or above by 2028?
Angela Rayner
I agree that we should be moving towards doing everything we possibly can to be efficient, and there will be consultations on that issue. One of the things that shocked me in bringing this Bill forward was that the standards are so low for some; we need to really ramp them up. The bottom line for me in bringing this Bill forward is that people should have safe, secure homes that are free from hazards. We can then build on that. We are doing much more as a Government on our ambitions to do that, working with landlords.
The database, alongside greater guidance and support from the Government, will also help landlords to understand and meet their legal duties. Good landlords should be supported and helped. In addition, the database will provide local authorities with the information that they need in their enforcement activities to drive out rogue landlords. In this Bill, I have also taken steps to support local government in its crucial role in keeping tenants safe and rooting out bad actors from the sector. That is why, as well as setting up the database, the Bill will give local authorities stronger powers to root out and punish the small number of landlords who deliberately flout the law, and will increase the maximum civil penalties, so that we punish offenders and further support local authorities.
Ben Obese-Jecty (Huntingdon) (Con)
Where I previously lived, there was a huge number of illegal houses in multiple occupation. Those residents are potentially not protected by this legislation. In giving local authorities more enforcement powers against rogue landlords, how exactly will we define a rogue landlord, and protect people who will potentially be off the radar?
Angela Rayner
There are separate rules for HMOs, but we are also extending ringfenced civil penalties to support councils more, because we need to make sure that there is enforcement. A database will be important when we are looking at what we face, and also in making sure that we can take action. The problem is not every landlord. Most landlords act in a reasonable way, but we need to make sure that action is taken against those who do not.
We recognise the important role that tenants play in holding their landlords to account, and we want to incentivise them to do so. That is why we have significantly strengthened rent repayment orders. To empower tenants to take direct action against unscrupulous landlords, the Bill will add new rent payment order offences, double the maximum penalty for offences, and ensure that offenders will more often pay the maximum penalty. When landlords break the rules, tenants must have recourse to action.
Finally, I want to mention pets. It is a shame the Speaker is not here, because this was my bit for him! Our reforms are aimed squarely at improving the lives of people and families, but I trust that right hon. and hon. Members will agree that pets are not just animals but family. That is why this Bill will make it easier for tenants to request the ability to have a pet in their home. It will also allow landlords to require insurance covering pet damage, so that everyone is covered and no one is left unfairly out of pocket.
Dr Neil Hudson (Epping Forest) (Con)
It is important that this legislation balances the rights of both tenants and landlords. We all know the benefits of pet ownership to our physical and mental health, and indeed to the animals. I very much welcome the fact that clauses 10 and 11 will allow pet ownership in tenancies, but can the Secretary of State reassure the House that those clauses will allow responsible pet owners to ask to keep pets in their property while ensuring that landlords are insured in case of property damage caused inadvertently, or perhaps advertently, by pets?
Angela Rayner
The hon. Gentleman is absolutely right that there is a balance to be struck. We are ensuring that landlords are protected with insurance. It is about reasonableness—so long as it is not an antisocial parrot that speaks all night, I am sure everyone will agree that this is a good thing.
The Bill will finally address the insecurity and injustice that far too many renters experience. We value the contribution made by responsible landlords who provide quality homes to their tenants, but there is no place for unscrupulous landlords who tarnish the reputation of the entire sector by seeking to exploit or discriminate against tenants.
This Government were elected with a mandate to deliver change, and this Bill is the first of many with which we will honour our promise to the people. After the last Government failed to legislate for renters’ rights in five years, we have introduced this Bill within our first 100 days in office. This will change the lives of millions of people, so for them, and for future generations, I commend this Bill to the House.
Madam Deputy Speaker (Judith Cummins)
I call the shadow Secretary of State.
Oral Answers to Questions
Angela Rayner Excerpts(2 months, 3 weeks ago)
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Laurence Turner (Birmingham Northfield) (Lab)
The Secretary of State for Housing, Communities and Local Government (Angela Rayner)
It is a privilege to be appointed as Deputy Prime Minister and Secretary of State, and to answer questions from hon. Members on the important issues I now have responsibility for at such a challenging time for our communities.
Councils across the country, including those under best value intervention, are feeling the strain after a decade of financial mismanagement by the previous Administration. I am determined to work constructively with both the council and the commissioners to reset our relationship with Birmingham and support its recovery to ensure that local public services are fit for purpose.
Laurence Turner
I recognise that the Secretary of State has inherited a very difficult situation. Under the Conservatives, Birmingham lost 40p in the pound and 60% of local authority jobs were lost—some of the sharpest cuts in the country. Our city is now facing cuts of more than 50% to some public service budgets, but new information has come to light and it is clear that part of the basis for the original intervention under her Conservative predecessor was wrong. Can—
Mr Speaker
Order. It is meant to be a question; you cannot make a speech. I think you need an Adjournment debate to finish this one off.
Angela Rayner
First, let me welcome my hon. Friend to his place. He is right to highlight the cuts that Birmingham faced under the Tories. Unlike previous Ministers, we have no interest in using Birmingham and its people as a political football. We cannot avoid the need to make difficult decisions, but I want to work with the council leadership, as well as the commissioners, and of course I am open to any representations they want to make.
Naushabah Khan (Gillingham and Rainham) (Lab)
Afzal Khan (Manchester Rusholme) (Lab)
The Secretary of State for Housing, Communities and Local Government (Angela Rayner)
Islamophobia is a scourge on our society that must be rooted out, and I thank my hon. Friend for his work on this issue. Much of last month’s violent disorder was Islamophobic, and the targeting of Muslims shows that we need to go further and faster in tackling this vile hatred, which was fuelled by fake news. We have now provided greater security and rapid support for Muslim communities, and our Faith Minister in the other place, Lord Khan, is actively considering further steps to crack down on anti-Muslim hatred, monitor Islamophobia and engage the community effectively.
Afzal Khan
My right hon. Friend will know the fear and distress that the civil disorder this summer caused to many of my constituents and to Muslim communities across the country who were targeted by violent extremists. I am sure that she will join me in making it clear that the vast majority of people in our country—of all faiths and backgrounds—wish only to live together peacefully and utterly reject those who stir up division. What engagement have Ministers undertaken with Muslim communities since those events, and what are they doing to give reassurance for the future?
Angela Rayner
My hon. Friend is absolutely right to underline that the vast majority of people in this country—of all faiths and backgrounds—want only to live together peacefully, and my Department is at the heart of the Government’s work to restore order and unity in all our communities following the appalling disturbances. While we continue to make sure that criminals are brought to swift justice, the vital work to strengthen the bond between the Government and communities, including our Muslim communities and those of many other faiths and backgrounds, is central to this Government’s mission to bring the whole country together.
Lee Anderson (Ashfield) (Reform)
Could the Secretary of State please explain to me and the House what the Government’s definition of Islamophobia actually is?
Angela Rayner
I say to the hon. Member that a new definition must be given careful consideration so that it comprehensively reflects multiple perspectives and considers the potential implications for different communities. We are actively considering our approach to Islamophobia, including definitions, and we will provide further updates in due course.
Alex Baker (Aldershot) (Lab)
Jacob Collier (Burton and Uttoxeter) (Lab)
The Secretary of State for Housing, Communities and Local Government (Angela Rayner)
Last month’s appalling violence exposed deep-rooted weaknesses in our society. Division and decline, combined with rising Islamophobia and racism, contributed to the vile scenes of hatred. I am determined that we should now support the recovery of towns and cities affected, and investment in community cohesion. That has started with a comprehensive support offer for Southport, and I can confirm that I will now lead cross-Government efforts on this issue. I will update the House on our plans in due course.
Alex Baker
Whatever our beliefs, faith leaders and faith groups can play an important role in bringing us all together. Will the Deputy Prime Minister join me in commending the many faith leaders I have met across Aldershot and Farnborough who are working to promote tolerance and understanding across our community? Can she outline what her Department is doing to encourage those community leaders, whose work reminds us that we are far more united and have far more in common than that which divides us?
Angela Rayner
I thank my hon. Friend for her question. I was proud to serve alongside my good friend Jo Cox in this House, and her words about our common humanity and what unites us ring as true as ever. I have met many local communities, businesses and other groups affected by the acts of deplorable violence that we have seen across the country in recent weeks, including in places such as Stoke-on-Trent and Rotherham. I heard powerful stories from those who experienced appalling violence, but I also heard about how those communities came together to defend their streets and were united against hatred and thuggery. I know that my hon. Friend has been a leader in her own community, and we Ministers will support her and her constituents in the spirit that she has set out.
Noah Law
Our community cohesion in Cornwall is being undermined by the housing crisis, with many locals priced out or even facing homelessness. This matter requires urgent attention, and I am therefore pleased that this Government have placed building new homes at the top of our legislative agenda. Can the Deputy Prime Minister ensure that we are building the right kinds of homes in Cornwall—namely, social homes?
Angela Rayner
Absolutely, and my hon. Friend is right. We are strengthening housing targets and acting to ensure that local plans are ambitious enough to support this Government’s commitment to 1.5 million homes in this Parliament, including social homes. Under our new proposals, assessed housing need across Cornwall would increase by around 65%, demonstrating our commitment to approving the supply of new homes that his constituents desperately need.
Jacob Collier
Following the horrific Islamophobic attacks experienced by Muslim communities around the country, the Princess Street mosque in Burton-upon-Trent opened its doors to the wider community so that everyone could learn more about Islam and see their place of worship. This was a way to challenge misinformation and promote mutual understanding. Does the Deputy Prime Minister welcome this as an example of how communities can help bring people together?
Angela Rayner
I absolutely welcome it, and I commend the actions such as those taken by the Burton-upon-Trent mosque. I agree with my hon. Friend that building understanding among those from different backgrounds is vital to fostering strong communities. This Government are committed to working with communities around the UK to build a culture of cohesion, trust and mutual respect and we will outline further actions in due course.
Mr Lee Dillon (Newbury) (LD)
Could I ask the Secretary of State whether she agrees, given the commitment to build 1.5 million new homes, that community cohesion comes from a planning system where community infrastructure is front-loaded in development, rather than people having to live 10 years on a new build estate without anywhere to come together to celebrate as a community?
Angela Rayner
I absolutely agree that it is important that infrastructure is built around our 1.5 million homes target. That is why we set out the proposals in the consultation on the national planning policy framework to ensure that people see the homes they desperately need, the right homes that they need and the vital infrastructure around that.
Jim Shannon (Strangford) (DUP)
I thank the Deputy Prime Minister for her answers. Sometimes it is easy to dwell upon the negativity, but there are positives as well. There were positives in my constituency when two people decided to burn down the mosque, because they were caught by the police and they will hopefully be imprisoned, and because the community came together, which is the issue I want to put over. Across this great United Kingdom of Great Britain and Northern Ireland, there are many people who want to live together. All the people in the Baptist church that I go to in Newtownards were praying for those people in that church, and that is the Ards and the Strangford that I know. Sometimes we need to put over the good things as well.
Angela Rayner
It is always a pleasure to hear from the hon. Member, and he is absolutely right. When I was visiting those communities, I saw them coming together. I saw the way in which they worked well and the way in which everybody looked out for each other. It reminded me of why I am in this place and why I do what I do for the great British people and what they do.
Tim Farron (Westmorland and Lonsdale) (LD)
In Westmorland, we have a story that has underpinned cohesion for decades. That is the true story of the Windermere children. In August 1945, almost half the children who survived the Nazi death camps were rehabilitated on the banks of Windermere at Troutbeck Bridge. I wonder if the Deputy Prime Minister would agree to meet me, because a group of us, including members of the ’45 Aid Society and the local school, the Lakes school, want to build a lasting memorial at Troutbeck Bridge, on the site where the children were housed, while rebuilding the school that was built on that site. Will she carry on the cross-party work that we had before the election, and meet me and others from that community to help make that a reality?
Angela Rayner
I congratulate the hon. Member on his work in this area. Either myself or one of my Ministers will be happy to meet him.
Mrs Kemi Badenoch (North West Essex) (Con)
Can the right hon. Lady give me her assessment of the Khan review into social cohesion?
Angela Rayner
The Khan review into social cohesion is one element of what we need to do to get back to addressing the issues of community cohesion, as opposed to the divisiveness of the way in which the previous Government looked at community cohesion. What I would like to see, instead of the language and tone we have seen from Members on the right hon. Member’s Benches, is the tone that the hon. Member for Strangford (Jim Shannon) took around how we can bring communities together and work together to ensure that people can respect people’s differences and celebrate what makes us British, and that is that we all have different places.
Mrs Badenoch
The right hon. Lady has not read the Khan review, as she would not have given that answer if she had.
The review talks about the 2021 incident at Batley grammar school, where a teacher was failed by local police and the local council and had to go into hiding. Given the fears about the rise is Islamist sectarianism in communities such as West Yorkshire, what are the right hon. Lady’s plans, especially as she has not read the review, to ensure that such incidents do not happen again?
Angela Rayner
I have read the review. Maybe the right hon. Lady was busy launching her leadership campaign earlier today.
The point I am making is that under the previous Administration there was not an element of community cohesion but constant division and stoking of division. I tried to bring our education system together when I was shadow Education Secretary. Across education, across my Department and across our Government I would like to see how we can celebrate our differences and bring communities together. If the right hon. Lady is successful in her bid to become Leader of the Opposition, I hope she will work with us on that endeavour.
Ben Goldsborough (South Norfolk) (Lab)
Blake Stephenson (Mid Bedfordshire) (Con)
The Secretary of State for Housing, Communities and Local Government (Angela Rayner)
Beauty is always part of the proposals. The hon. Member, if he had read our proposals in the NPPF, would know that we have not removed all references to beauty; we have simply changed additional references made by the Conservatives that the Royal Institute of British Architects said could lead to development being turned down.
Blake Stephenson
In Mid Bedfordshire we have a mix of historic towns and villages, as well as newer developments such as Wixams. We take more than our fair share of development, and my constituents want to see beautiful homes with the right services that are sympathetic to the traditional character of our communities. Does the Secretary of State agree that people want to see beautiful homes throughout England? In that case, will she reinsert beauty as a house building objective in the revised framework?
Angela Rayner
If the hon. Member had read our proposals regarding the inconsistencies, he would know that the Government are not proposing to remove all references to beauty from the NPPF. I reiterate that the changes we are making relate to additional references to beauty inserted by the previous Government in December 2023. These are subjective in nature, difficult to define and may lead to inconsistencies in decision making.
Mrs Kemi Badenoch (North West Essex) (Con)
On the subject of the NPPF, I am grateful for the letter that the right hon. Lady sent to me on Saturday. I enjoyed reading it, especially her attempts to explain why she reduced Sadiq Khan’s London targets and, even more, where she highlights that he has consistently under-delivered. If other local leaders miss their new housing targets, will she reduce their targets too?
Angela Rayner
I find that astonishing, when the previous Government missed their targets every single year. As the Housing Minister has already set out, our methodology is about realistic expectations that people can meet. We will not shy away from the decisions that need to be made to make sure that we build the homes that people need. That is why we were elected, and that is what the right hon. Member needs to realise.
Ayoub Khan (Birmingham Perry Barr) (Ind)
The Secretary of State for Housing, Communities and Local Government (Angela Rayner)
I pay tribute to all those involved in supporting residents in Dagenham after the appalling fire last week—a sobering reminder of the importance of making buildings safe ahead of the Grenfell inquiry report this week. My thoughts are with the bereaved families, the survivors and the community of Grenfell affected during this very difficult week. As my hon. Friend the Minister for Building Safety said, we have published an update to the House on work to address building safety issues, which we will continue to take swift action to resolve.
Ayoub Khan
Birmingham’s Labour-run council is on the verge of selling off some 700 residential units at a loss to the taxpayer of about £300 million. Will the Secretary of State intervene to allow the council to retain those properties for public ownership and for use by some of the 25,000 desperate families on the waiting list?
Angela Rayner
The hon. Member will know that Birmingham city council will not be making decisions over asset sales lightly. I know that it is working with commissioners to ensure that its financing decisions deliver value for money and that it can avoid fire sales, and I will work constructively with the council and commissioners as that work continues.
Terry Jermy (South West Norfolk) (Lab)
Chi Onwurah (Newcastle upon Tyne Central and West) (Lab)
My constituent Tracy was recently issued with a section 21 notice to quit and, at the same time, a section 13 rent increase that she cannot afford. She fears being made homeless with her children, so she got in touch with Newcastle city council for a council property, but the wait is 27 weeks on average and often much longer. When will good tenants be protected from unfair evictions and extortionate rent increases?
Chris Webb (Blackpool South) (Lab)
Blackpool’s Waterloo Road and Bond Street were once thriving local tourist hotspots that underpinned our local economy all year round. When the Deputy Prime Minister last visited Blackpool with me, she saw for herself the awful visible decline of those areas. Will she and her Department work with me and local businesses to ensure their successful regeneration?
Angela Rayner
I thank my hon. Friend for his question. It was great to visit Blackpool during the general election campaign, and I visited Blackpool on many occasions during my childhood as well. My Department is working in partnership with Blackpool to unlock significant investment. I have seen that more needs to be done to unleash Blackpool’s great potential, and I will work with my hon. Friend on the ongoing regeneration of Blackpool to deliver better-quality housing and a stronger local economy. And you never know, we might visit the nightlife as well.
Mr Peter Bedford (Mid Leicestershire) (Con)
Will the Secretary of State join me in calling on Labour-controlled Leicester city council to review its proposals in its own local plan to site 400 houses, seven Traveller pitches and a waste-processing centre on the edge of Glenfield village in my constituency, which are causing considerable concern to my residents?
Andrew Rosindell (Romford) (Con)
As the Deputy Prime Minister should be aware, people in Romford are very angry that Mayor Khan is forcing us to build high-rise blocks. Does she agree that the London borough of Havering, despite being part of Greater London, is Essex, and that we should remain a town and country borough?
Angela Rayner
As a Mancunian, I do not think I am in any place to tell Londoners what is in Essex and what is not.
Kevin Bonavia (Stevenage) (Lab)
My constituency has been held back by 14 years of Conservative cuts to the county council and to borough and district councils, so I hope that the new Government’s devolution agenda will help rebuild and improve our local public services. Can the Secretary of State provide an update on the consultation with Hertfordshire county council and our 10 borough and district authorities?
Joe Powell (Kensington and Bayswater) (Lab)
On Wednesday, the phase 2 report of the Grenfell inquiry will be published, and I am sure that the whole House will join me in remembering the 72 residents who lost their lives in an entirely preventable tragedy over seven years ago. Four recommendations for central Government are still outstanding from the phase 1 report, including personalised emergency evacuation plans for disabled people. Will the Secretary of State update us on the progress in implementing the phase 1 recommendations in full?
Angela Rayner
My hon. Friend is absolutely right: this week will be very difficult for the community around Grenfell, including the survivors and those who lost loved ones. He is also right to say that there are outstanding measures from phase 1. The Under-Secretary of State for Housing, Communities and Local Government, the hon. Member for Bethnal Green and Stepney (Rushanara Ali), made a written ministerial statement today that will hopefully show where the Government intend to go, but there is a lot that needs to be done. On Wednesday, the whole House will have a moment of reflection, and we will think of those at Grenfell in the coming weeks.
Graham Stuart (Beverley and Holderness) (Con)
I congratulate the Secretary of State on her dancing skills, her appointment and her outstanding answer to the question from the shadow Secretary of State, my right hon. Friend the Member for North West Essex (Mrs Badenoch), on council tax, which I will pursue. Can she assure the House and guarantee that she will not remove the single person discount, which is so important to pensioners who are already losing out because of the absence of the winter fuel allowance? That would put gladness into the heart of elderly people across the country who live on small incomes.
Angela Rayner
I thank the right hon. Gentleman for his comments on my dance moves; that opinion is subjective, like beauty, of course. On a serious note, I find it astonishing that Conservative Members, after running down the economy in the way that they did, and after the Chancellor has had to come to the House and talk about the billion-pound black hole, are now trying to claim that this Government are about raising taxes. This Government are about making sure that working people are better off, and we intend to do that.
Rachael Maskell (York Central) (Lab/Co-op)
Given that winter fuel payments will no longer be there for older people who are not entitled to pension credit, what steps has the Secretary of State taken to extend the household support fund, so that local authorities can provide emergency grants, as well as warm spaces?
Angela Rayner
My hon. Friend is absolutely right about people on pension credit and, in particular, about the household support fund. It is incredibly important, first, that the many people who are entitled to those benefits but are not claiming them do so, and secondly, that the household support fund and the work that we can do to support people is well known. We work with local authorities, which administer the fund, to make sure that the money is given to the people who need it the most. We inherited very difficult circumstances because of the previous Conservative Government. The Chancellor has set out how we can expand the fund to help people who desperately need it.
Rebecca Smith (South West Devon) (Con)
Devonport dockyard in Plymouth has a strong future proudly refitting the Royal Navy’s submarines. However, for that to happen, the city needs, among other things, more housing. The location for this housing is there, in the city centre, but it will require a national effort to deliver it. Will the Minister meet a cross-party delegation from Plymouth to take forward these vital plans?
Building Homes
Angela Rayner Excerpts(3 months, 3 weeks ago)
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The Secretary of State for Housing, Communities and Local Government (Angela Rayner)
Before I begin my statement, I know that the whole House will join me in sending our deepest condolences and strength in the hours ahead to those affected by yesterday’s shocking incident in Southport. As a mother and grandmother, I cannot even begin to imagine the depth of pain and suffering of those involved. I would like to echo the words of my hon. Friend the Member for Southport (Patrick Hurley) in thanking the police and the emergency services for their swift response. Our thoughts and prayers are with those who have already sadly lost loved ones and those who are now fighting for their lives.
With your permission, Mr Speaker, I have come to the House to make a statement about the Government’s plan to get Britain building. Delivering economic growth is our No. 1 mission—it is how we will raise living standards for everyone, everywhere, and the only way we can fix our public services—so today I am setting out a radical plan not only to get the homes that we desperately need, but to drive growth, create jobs and breathe life back into towns and cities. We are ambitious, and what I say will not be without controversy, but this is urgent. This Labour Government are not afraid to take the tough choices needed to deliver for our country.
We are facing the most acute housing crisis in living memory, with 150,000 children in temporary accommodation, nearly 1.3 million households on social housing waiting lists and under-30s less than half as likely to own their own home compared with the 1990s. Rents are up 8.6% in the last year. Total homelessness is at record levels. There are simply not enough homes.
Those on the Conservative Benches knew that, but what did they do for 14 years? As my right hon. Friend the Chancellor said yesterday, they ducked the difficult decisions. They put party before country. They pulled the wool over people’s eyes by crowing about getting 1 million new homes built in the last Parliament, but they failed to get anywhere near their target of 300,000 homes a year. In a bid to appease their anti-housing Back Benchers, they made housing targets only advisory. They knew that would tank housing supply, but they still did it. As I stand here today, I can reveal the result: the number of new homes is now likely to drop below 200,000 this year. Unforgivable.
That legacy makes our job all the harder, but it also makes it so much more urgent. So today, I will explain how Labour will deliver the change needed to turbocharge growth and build more homes. I will start with housing targets. Decisions about what to build should reflect local views, but that should be about how, not whether, to deliver new homes. While the previous Government watered down housing targets, caving in to their anti-growth Back Benchers, this Labour Government are taking the tough choices, putting people and country first.
For the first time, we will make local housing targets mandatory, requiring local authorities to use the same method to work out how many homes to build. But that alone is insufficient to meet our ambition, so we are also changing the standard method used to calculate housing need so that it better reflects the urgency of supply for local areas. Rather than relying on outdated data, this new method will require local authorities to plan for homes proportionate to the size of existing communities, and it will incorporate an uplift where house prices are most out of step with local incomes. The collective total of these local targets will therefore rise from some 300,000 a year to just over 370,000 a year.
Some will find that uncomfortable, and others will try to poke holes, so I will tackle four arguments head on. The first is that we are demanding too much from some places. To that, I say we have a housing crisis and a mandate for real change, and we must all play our part. The second is that some areas may appear to get a surprising target. No method is perfect, and the old one produced all sorts of odd outcomes. Crucially, ours offers extra stability for local authorities.
The third argument is that we are lowering our ambition for London. I am clear that we are doing no such thing. London had a nominal target of almost 100,000 homes a year, based on an arbitrary uplift, which was absolute nonsense. The London plan has a target of around 52,000, and around 35,000 were delivered in London last year. The target we are now setting for London of roughly 80,000 is still a huge ask, but I know it is one that the mayor is determined to rise to, and I met him about this last week. Fourthly, some will say that a total of 370,000 is not enough. To that I say: ambition is critical, but we also need to be realistic.
Let me move on to the green belt. Once we have targets for what we need to build, next we need to ensure that we build in the right places. The first port of call must be brownfield land. We are making some changes today to support that, but they are only part of the answer, which is why we must create a more strategic system for green-belt release, to make it work for the 21st century. Local authorities will have to review their green belt if needed to meet housing targets, but they will also need to prioritise low-quality grey-belt land, for which we are setting out a definition today. Where land in the green belt is developed, new golden rules will require the provision of 50% affordable housing, with a focus on social rent, as well as schools, GP surgeries and transport links that the community needs, and improvements to accessible green space. Let us not forget that the previous Government’s haphazard approach to building on the green belt saw so many of the wrong homes built in the wrong places, without the local services that people need. Under Labour, that will change.
Increasing supply is essential to improving affordability, but we must also go further to build genuinely affordable homes. Part of that must come from developers. The Housing Minister will meet major developers later to ensure that they commit to matching our pace of reform. An active, mission-led Government must also play their role, which is why I am calling on local authorities, housing associations and industry to work with me to deliver a council house revolution. This is not just a nice add-on, but vital to getting the 1.5 million homes built, because we know that schemes with a large amount of affordable housing are likely to be completed faster, and injecting confidence and certainty into social housing is how we will get Britain back to building.
The previous Government had to downgrade the number of new homes that their affordable housing programme would deliver. Today, I can reveal that only 110,000 to 130,000 affordable homes are due to be built under that programme, down from their original target of 180,000. In our worst-case scenario, some 70,000 families in need of a secure home will lose out. How have they let that happen? Once again, this Government will have to pick up the pieces. That is why today I am announcing immediate steps for the biggest boost to social and affordable housing in a generation. We will introduce more flexibilities in the current affordable homes programme, working with Homes England, and will bring forward details of future Government investment at the spending review. I recognise that councils and housing associations need support, too, so my right hon. Friend the Chancellor will set out plans at the next fiscal event to give them the rent stability that they need to borrow and invest.
We must also maintain existing stock, which is why I am announcing important changes to the right to buy. We have already started reviewing the increased right to buy discounts introduced in 2012, and will consult in the autumn on wider reforms. We are immediately increasing flexibilities for councils when using right to buy receipts. In addition, to help councils provide homes for some of the most vulnerable in society, I can confirm today that the £450 million of the local authority housing fund will flow to them to provide 2,000 new homes. This is what Labour does.
These reforms are key to realising our wider growth ambitions. Part of that comes from new homes themselves, releasing the untapped potential of our towns and cities, which for too long have been throttled by insufficient and unaffordable housing. It also flows from making it easier to build the infrastructure on which we rely, so we will make it easier to build laboratories, gigafactories, data centres and electricity grid connections. We must make it simpler and faster to build the clean energy sources needed to achieve zero-carbon energy generation by 2030. We have already ended the de facto ban on onshore wind, but we are also proposing that large onshore wind projects be brought back to the nationally significant infrastructure projects—NSIP—regime. We will change the threshold for solar development to reflect the developments in solar technology, and set a stronger expectation that authorities identify renewable energy sites.
To deliver all that, we need every local authority to have a development plan in place. Up-to-date local plans are essential to ensure that communities have a say in how development happens. Areas with a local plan are less vulnerable to speculative developments through appeals, yet just a third of places have one that is under five years old. This must change. We will fix this by ending the constant changes and disruption to planning policy, setting clear expectations of universal local plan coverage and stepping in directly when local authorities let residents down. Local plans ensure local engagement and are critical to making developments that meet local people’s needs.
While demanding more of others, we are also going to demand more of ourselves. Two weeks ago, I said that I will not hesitate to review an application where the potential economic gain warrants it. So today, I can confirm that Ministers and I will mark our homework in public, reporting against the 13-week target for turning around ministerial decisions.
I know that what I have said seems a lot, but this is only the first step. We plan to do so much more. We will introduce a planning and infrastructure Bill that will reform planning committees so that they focus on the right applications with the necessary expertise. We will further reform compulsory purchase compensation rules so that what is paid to landowners is fair but not excessive. We will enable local authorities to put their planning departments on sustainable footings, streamline the delivery process for critical infrastructure and provide any legal underpinning that may be needed to ensure that nature recovery and building work hand in hand. We will also take the steps needed for universal coverage of strategic planning within this Parliament, which we will work with local leaders to develop and formalise in legislation. Shortly, we will say more about our plan for the next generation of new towns. Because we know that this crisis cannot be fixed overnight, in the coming months the Government will publish a long-term housing strategy to transform the housing market so that it delivers for working people.
These are the right reforms for the decade of renewal that the country so desperately needs. We will not be deterred by those who seek to stand in the way of our country’s future. Opposition Members may say that it cannot be done but, once again, I will prove them wrong. This Government will build 1.5 million high-quality, well-designed and sustainable homes. We will achieve the biggest boost to affordable housing for a generation, and we will get Britain building to spur the growth that we need. I commend this statement to the House.
Several hon. Members rose—
Angela Rayner
Let me start by welcoming the right hon. Lady to her place. I wish her luck for her leadership campaign, now that she has confirmed that she is running. It was her ambition all along to be Leader of the Opposition, not mine. I must say that she seems to be taking to opposition very naturally. I think she will find herself comfortable for a long, long time on the Opposition Benches. She had a lot to say in her response and I will come to the substance of it in a moment. She has already put in quite a few written questions. I look forward to many more from her once she has had a chance to read and digest her brief after the election.
There were a couple of things that I am not quite sure the right hon. Lady understood. First—this is critical—the British people kicked the Conservatives out of office in a landslide. Secondly, why was that? Let me remind her. The Government in which she served left us to clear up the mess. They crashed the economy and trashed our public services. They bankrupted Britain and they covered it up. They threw the book at the doctors and then they doctored the books. She keeps speaking about the Tories’ record on housing, but I remind her again that year after year the Tories failed to meet their housing targets. She speaks about the Mayor of London and the bizarre figures they set for him, but the Conservative Government—talking of promises they can’t keep—failed to meet their own target in every single year.
On the right hon. Lady’s question about the NPPF consultation, it starts today, for eight weeks. We are asking people to engage. It is an incredibly detailed consultation, because we mean business. It will come as no surprise that the work needed to be done after the disaster of the last Tory Government, which ripped up the NPPF and made a right mess of it. The right hon. Lady talked about the affordable homes grant. The former Tory Secretary of State handed £1.9 billion of vital funds back to the Treasury. This Government will, working with Homes England, make it more flexible to get the homes we need.
Members of the party opposite—
Andrew Griffith (Arundel and South Downs) (Con)
You are just reading! You are supposed to be answering the questions, not just reading out what has been written for you to read.
Angela Rayner
These are the answers to the questions. [Interruption.] No, they are the bits that I have written, actually, in regard to her questions.
Members of the party opposite are now talking to themselves and not the country. The right hon. Lady mentioned chaos and uncertainty; I really do not know how Opposition Members can say that with a straight face after the chaos and uncertainty that we have seen, with countless Housing Secretaries not knowing what was going on.
In every inner-city area—this is in answer to the question—there are increases in the targets. I remind Members that we inherited the most acute housing crisis in living memory. I say to the right hon. Lady that the green belt definition is in the consultation document, and I suggest that she read it. It also tackles the issue of “beautiful homes”, We will build homes at scale and they will be beautiful. We will protect the natural environment, and we will make sure that people have the homes that they deserve and need.
I was astonished by what the right hon. Lady said about councils and council leaders. The council leaders I have spoken to are overjoyed by the fact that the Tories were kicked out. They say to me that they have been left in a dire situation. I know that Opposition Members like to think that that is just Labour councils, but councils across the political spectrum have been left in a disastrous situation, because the party opposite did not build the homes that people need. We have a homelessness crisis in this country. People under the age of 30 cannot get homes now. It is impossible for people to get on to the housing ladder. That is the failure of the last Conservative Government, and that is what we are going to fix. That is what we are going to get on and do.
Mr Clive Betts (Sheffield South East) (Lab)
I welcome you to your place, Madam Deputy Speaker. I also welcome both the ambition and the detail in my right hon. Friend’s statement, and the commitments made in it.
I have two questions. First, if the targets are not mandatory—although, in the last Parliament, the Levelling Up, Housing and Communities Committee said that they had to be—many councils will simply choose to ignore them, but if they are to be mandatory, will my right hon. Friend assure me that they will be based on a proper needs assessment of each local authority, and will do away with the nonsensical and arbitrary urban uplifts to which she referred in the context of London?
Secondly, may I ask a question about social housing? I was proud to be brought up in a council house, as my right hon. Friend was. Will she work closely with local authorities and look particularly at land value capture? Will she ensure that when the planning permission for a site uplifts the value of that site, the total increase in value does not go to the landowners alone, but is used to benefit the public purse and reduce the cost of building those homes?
Angela Rayner
I can confirm that we are getting rid of the urban uplift. The new method of establishing housing targets is better than the previous one, which we believed was outdated. The urban uplift figures were plucked from thin air, but we believe that our new method will give councils the stability and certainty that will enable them to plan for the homes and local services that they need. As for land value capture, there is a little bit about it in the consultation document, but there will be more in the forthcoming planning and infrastructure Bill.
Daisy Cooper (St Albans) (LD)
I welcome you to your place, Madam Deputy Speaker. I also thank the Deputy Prime Minister for giving me advance sight of her statement, and associate myself and my party with her remarks about the devastating and senseless attacks in Southport. Our thoughts and prayers are with all those affected.
For too long under the Conservatives, we had a planning system that put developer greed above community need—a system that did not deliver the homes that we needed to tackle the crisis, but did destroy swathes of our green belt. However, the statement raises a great many questions, so here we go.
Will local authorities that are at an advanced stage of their draft local plans need to start again with the new standard method, or will they be able to continue? Will authorities that have recently conducted a green belt assessment need to do it again under the new system, or will the current assessment stand? There seems to be a conspicuous absence of a specific target for social homes—not affordable homes, but social homes. Will the Deputy Prime Minister take up the Liberal Democrat target of building 150,000 social homes every single year? We welcome the Government’s proposal to review the compulsory purchase compensation, but will she take up the Liberal Democrat plan to put an end to land banking by reforming the Land Compensation Act 1961 so that local authorities can acquire land at fair values? We welcome the review of the right to buy, but will the Government allow local authorities to use that money to replace lost stock?
The Government indicated that they would be reviewing borrowing rules so that local authorities could borrow to invest. Will they allow authorities to borrow to invest on a scale that will allow them to put an end to homelessness, overcrowding and housing register waiting lists? What powers and resources will they give to planning authorities so that they can enforce the requirement to put infrastructure first? Will they scrap the cap on developer planning fees?
Finally, some local authorities in the London metropolitan green-belt area, even when they have accounted for all their brownfield sites and all their grey-belt sites, still have to build thousands of homes on the green belt, land which is supposed to have been designed specifically to stop urban sprawl. Will the Government put anything in the national planning policy framework that will give any protection at all to the concept of the green belt?
Angela Rayner
The answer to the hon. Lady’s direct question about local plans is that it depends on how far they have got. There will be a transition, as we explained in the consultation document, because we recognise that some areas are quite far on. As for where that is up to, it depends very much on what the difference is between what the local plan says and what we have asked. We have explained that in the consultation document as well. We have to be fair to those that have already done the work: when the work has been done, it is just a question of updating it and not disregarding those that already have local plans. A third of areas have up-to-date local plans, so I urge all Members to speak to their local authorities to ensure that they have their local plans, because that is how we ensure that people feel engaged and part of the process—which is critical—and how we protect green belt and other areas by ending the speculative developments that we have been seeing.
The hon. Lady asked about the number of social homes. I talked about the flexibility in the affordable homes grant. There is some stuff in the consultation document about the right to buy, which I recognise, and about how councils and housing associations can borrow to bring up their stock. I also recognise the problem we have faced as a result of the homelessness crisis, and I am particularly keen to tackle it. We have talked about compulsory purchase orders as well, and we are consulting on that because we think that it needs to be dealt with. We will deal with some of the other issues in the planning infrastructure Bill.
Planning will be strengthened—we have already announced 300 extra local planners—and we will strengthen section 106. There will be an accelerator taskforce to deal with stalled sites. When grey belt land is released, the golden rules that I outlined will apply, and we will expect a great deal from developers when they are using that land. We are consulting on fees as well. There is a lot in this consultation, which I believe will make a significant difference to engagement with local areas and ensuring that we meet the housing target that we need and the country desperately deserves.
Rachel Hopkins (Luton South and South Bedfordshire) (Lab)
Too many families are housed in substandard, overcrowded flats created through permitted development rights, such as former office block conversions. Will the Deputy Prime Minister give families in my constituency some hope for the future by confirming Labour’s commitment to good-quality, affordable family houses, including council houses, under her proposals?
Angela Rayner
My hon. Friend is right: 14 years of the Tories have left social and affordable housing in a crisis. To fix our overall problem with the housing crisis, we must have more social housing for rent. The shadow Secretary of State talked about speaking to councils, but Members here, including new Members, will know how desperate the situation is from their casework—from what is already arriving in their inboxes and their post—and from what their local leaders are saying. This is because of the supply problem, and because we need to fix the problem around social and affordable housing. That is why we have our golden rules, and why we are going to strengthen section 106. We expect developers to do what they say they are going to do, and all our Departments will work to make sure that the infrastructure is there, so that people get the homes they need locally and see the infrastructure that improves nature and their local area.
Sir Desmond Swayne (New Forest West) (Con)
New Forest district council has recently had its local plan agreed on the basis of local housing need. When will it be required to reopen that assessment on the basis of the right hon. Lady’s new algorithm, and when will the target become mandatory?
Angela Rayner
The short answer is when it next updates. As I said in my answer to the shadow Secretary of State, councils that have an up-to-date local plan will not be made to start again. I commend the right hon. Gentleman’s local authority for having an up-to-date plan, because that is the best way to have consultations with a local area and provide the housing that local people need. This Government will work with local leaders and mayors to make sure that we deliver the houses that local people want and deal with the crisis they face.
Paula Barker (Liverpool Wavertree) (Lab)
I congratulate my right hon. Friend on making a superb statement. She knows that she will have strong support on the Labour Benches for building the homes that we need in Liverpool to tackle homelessness, rising costs and the huge waiting list for social housing, but councils will be reluctant to build if they know that houses will simply end up in the hands of private landlords who exploit the right to buy. I welcome her review into the higher discounts imposed by the last Government. Can she assure me that it will be a rapid review? Given the mess that she has inherited, there is no time to waste in clearing this up.
Angela Rayner
I thank my hon. Friend for her question. Again, the short answer is yes, it will be a rapid review. We were already speaking about this issue before the election. We want to make sure that people take part in the review, but we are also very clear that the discounts that the last Government applied to the right-to-buy formula in 2012 mean that councils cannot replace the houses that are bought under the right-to-buy scheme. We believe that people should have the right to buy, but it has to be balanced against the discounts given to the public on our social housing stock, so that we can make sure that we replace that stock for those who desperately need it.
Paul Holmes (Hamble Valley) (Con)
Quite frankly, this announcement will be a disaster for my Hamble Valley constituency. Over the last few years, Liberal Democrat-run Eastleigh borough council has built double the number of houses required by targets and assessments. Can the Secretary of State confirm that she will take into account retrospective building numbers for areas that have already built more than their fair share? Why is she placing even more pressure on local services in the south-east, where house prices are the most expensive, but leaving cities alone and not increasing house numbers there too?
Angela Rayner
I say to the hon. Gentleman that the number of houses in cities will increase. The new method that we will be using is based on the stock and its affordability, so I ask him to look at the consultation. We will be honest: if there is a particular shortage—many areas have a particular shortage—we have to build homes. We stood on an election manifesto to do that. I do not know whether the hon. Gentleman’s local authority has local plans, but we will engage with it. We do not have the homes that we desperately need. I say to the hon. Gentleman that he should engage with his local authority, get the local plans in place, and work with us to build the houses that his constituents desperately need.
Liz Twist (Blaydon and Consett) (Lab)
I thank the Secretary of State for her statement. I particularly welcome the acknowledgment that where there are new developments on green-belt land, it is necessary to have the facilities that go with them. What steps will she take to ensure that local communities can hold developers to account for the protection of our habitat and open spaces when they come forward with plans?
Angela Rayner
I thank my hon. Friend for her question. Labour has a “brownfield first” policy, and there are very strict golden rules on the release of grey-belt land. We will support local authorities to make sure that they get the best from section 106 notices and that the golden rules apply. The proposals that we have put in the NPPF will strengthen the release of land, which has been done in a haphazard way in the past. We will also see the affordable homes that people desperately need in their areas, including homes for social rent.
Kit Malthouse (North West Hampshire) (Con)
Could the Secretary of State confirm two things? First, could she confirm that where local residents have complied with her mandatory targets through a neighbourhood plan, rather than a local plan, the neighbourhood plan will reign supreme and will not be trampled over by planning inspectors subsequently? Secondly, could she confirm that protected landscape—what used to be called an areas of outstanding natural beauty, which comprise 80% of my constituency, but is now called national landscape—will still have significant protection within the planning system?
Angela Rayner
Yes, I can confirm that neighbourhood plans and the protections will remain, which is really important. Again, we are saying that the release of grey-belt land has to be for the benefit of local natural spaces. We want to see areas where people are within walking distance of such spaces. Many people do not have access to green-belt areas, but we will protect them, as we have always done. There is no change to areas of natural beauty, parks and so on.
Emily Darlington (Milton Keynes Central) (Lab)
As the new MP and a former cabinet member for housing for what is arguably Britain’s most successful new town—Milton Keynes—I welcome today’s statement, which is exactly what we have needed to hear. The struggles and conflicts that we have had in trying to deliver the housing that people in Milton Keynes need have been enormous and a real waste of resource, to be quite frank. We need to build not only new houses, but new communities. Will the Secretary of State meet me and Milton Keynes city council to discuss how we can help to deliver this essential mission so that everyone has a place to call home?
Angela Rayner
I welcome my hon. Friend to her place. I have visited Milton Keynes a number of times, and it is a fantastic example of a Labour new town. She has been quick to get a meeting arranged with the Housing Minister, and I look forward to hearing more about how we can learn from Milton Keynes and have the next generation of new towns coming forward.
Richard Foord (Honiton and Sidmouth) (LD)
I welcome the consultation on the national planning policy framework. One of the documents that has been circulated to colleagues today is the NPPF with tracked changes. Buried on page 55 is a footnote that says the following sentence is proposed for deletion:
“The availability of agricultural land used for food production should be considered…when deciding what sites are most appropriate for development.”
That is in the existing NPPF, but the Government are proposing to take it out. The UK is only 60% self-sufficient in food—down from the mid-1980s, when we were 78% self-sufficient. Are the Government taking enough account of self-sufficiency in food?
Angela Rayner
Yes, and we believe that it is already considered in the NPPF. There is already guidance on agricultural land, particularly high-grade agricultural land, so we believe that the protections on food are already there.
Mark Ferguson (Gateshead Central and Whickham) (Lab)
I congratulate the Deputy Prime Minister on her statement. I am slightly disappointed with some of the comments from those on the Conservative Benches, but I hope my right hon. Friend will reject them, just as the British people rejected them on 4 July.
Like the Deputy Prime Minister and most people in England who have a mayor, I am fortunate enough to live under a Labour mayor. Will the Deputy Prime Minister work with me, Labour mayors—including hers and mine—councillors and Members of this place to ensure that we get the right kinds of developments in the right places?
Angela Rayner
My hon. Friend is absolutely right. What we are trying to achieve today, and with the legislation that was announced in the King’s Speech, is about how we strengthen local consultation. I have already said that only a third of local authorities have up-to-date local plans, so this is a wake-up call for them. As part of local planning and having local plans in place, there is an obligation to consult, and to consult again on the final plans. Many people are frustrated by housing that goes up, but that is because of speculative development and because there has been no engagement. We have already met mayors and council leaders, and what we are proposing today is a push that has come not just from local leaders and mayors but from voters. I believe that that is why we won as large a majority as we did at the general election: people want to see that change. We know that that engagement has to continue and that we have to work with local leaders and mayors to make this plan a reality, and we are going to work with them to make sure that we get those homes, that infrastructure and the next generation of social and affordable housing that the people of this country need.
Mr Mark Francois (Rayleigh and Wickford) (Con)
Thank you, Madam Deputy Speaker, and good luck in your new role.
It is possible to have successful development, but from experience it has to be something done with people and not to people. This policy is the latter. These pernicious top-down targets have the practical effect at ground level of setting one town against another, one village against another and one local community against another; and given the Chancellor’s statement on public spending yesterday, who will pay for the tens of billions of pounds-worth of infrastructure that would be required to make all this work? All experience shows that, on development and house building, the man or woman in Whitehall really does not know best. Why then, is the Secretary of State going back to the old, failed way of doing it, which will not work?
Angela Rayner
I am shocked to have to tell the right hon. Member that the NPPF was an NPPF before we came into government. National targets have always been there; this is not something that I have dreamt up.
The important thing is that our new method is clearly based upon the housing stock, the affordability and the need in an area. That need has created a housing crisis in this country, and that is why the electorate gave the Labour Government such a mandate, because we said that we are going to fix the housing crisis that we have inherited. Again, this is about local plans. I implore the right hon. Member to get with his local authority, to get a local plan, to engage with local people and to listen to those who are waiting desperately—probably thousands in his constituency—for a home that they know will never come.
Jo White (Bassetlaw) (Lab)
My local authority agreed its local plan during the general election campaign, and it was the first authority in the country to commit section 106 funds to our local hospital. As its deputy leader, I was very proud to lead on that. I see section 106 funding as the most effective method of mitigating the impacts of development and bringing in much-needed funding for infrastructure. How does the Deputy Prime Minister envision section 106 funding being reformed to make it a far more effective method of bringing in infrastructure spending?
Angela Rayner
I congratulate my hon. Friend, not just on getting to this place but on the work she did previously. I also congratulate her local authority on the work it has done on having a local plan and on making sure that it got what it needed out of the section 106 provisions. She is absolutely right to say that that is important, because section 106 plays a very important role in meeting health needs—whether it is GP services, hospitals, schools or whatever the infrastructure—and it needs to be strengthened. We talk about that in this House, and we talk about the golden rules that we will apply if grey belt is released, but our Department will be working to ensure that local authorities are given the resources they need and the expertise from here, so that they can get the best out of section 106 notices.
James Wild (North West Norfolk) (Con)
Thousands of new homes are planned in King’s Lynn in my constituency, but that development requires transport and other infrastructure, so will the Secretary of State work with the Transport Secretary and the Chancellor to unlock the funding for the A10-West Winch housing access road so that that development can proceed?
Angela Rayner
Again, there is a challenge that we have inherited. I hope that the hon. Member’s area has a local plan for what is required and can therefore push for that infrastructure as part of its section 106. I will happily engage, through the Minister, on that particular issue, but I am wondering whether the hon. Member was in the Chamber yesterday and realises what a mess his Government left us in.
Sarah Owen (Luton North) (Lab)
Thank you, Madam Deputy Speaker, and I welcome you to your new place.
I thank the Deputy Prime Minister for the speed with which she and her fantastic team are tackling the housing crisis. It is welcome news in Luton North, where my surgeries have been consistently full of people struggling in overcrowded housing and facing skyrocketing rents for substandard conditions. We also have daily cases of people being subjected to eviction notices through no fault of their own. Does she agree that the Government’s new plans to build genuinely affordable housing, and for this council house revolution to start, cannot come soon enough for towns such as mine?
Angela Rayner
My hon. Friend articulates what many Members across the House, even Opposition Members, will recognise as challenges that we face. This issue has been ducked for 14 years by the Conservatives, and in fact it went backwards because of the changes they made to the NPPF last year. That is why we make absolutely no bones about the fact that we mean to deliver. That is why this consultation is so important and why we have put it out there now. I say to hon. Members that we intend to move at pace. There are people in temporary accommodation and 150,000 children who have nowhere to call their home. I think about that every single night, and there is not a day that we can afford to waste in dealing with that situation for them. I promise those people in my hon. Friend’s constituency and in everybody else’s that I will do everything I can to make sure that they have a home.
Lee Anderson (Ashfield) (Reform)
I welcome the news of a council house revolution, and we all know that the Deputy Prime Minister is a little bit of an expert when it comes to council housing, but can she confirm that priority will be given to British families, veterans and pensioners?
Angela Rayner
We have confirmed that people with a local connection will get priority over those homes. The hon. Gentleman tries to make a quip about the fact that I grew up in a council house, but although people used to talk about my childhood as if I grew up in poverty, there are many kids today who would think they had won the lottery if they got a council house. Those children today cannot have that, so we will build the homes, we will prioritise so that people locally can get them and we will make sure that first-time buyers get first dibs. We are putting in place a number of measures to make sure that the homes that are built are there for the people who need them.
Ben Goldsborough (South Norfolk) (Lab)
Residents in Hethersett, Mulbarton and Loddon have sadly had their fingers burnt by the old planning policies that were in place under the previous Government. Can my right hon. Friend give me assurances that section 106 will be strengthened to ensure that public infrastructure will be in place so that our new housing is accessible for everyone and gives them the resources they need to live a very happy life?
Angela Rayner
Parts of this consultation look at how we can strengthen section 106, and we want to do that in conjunction with local authorities. As I mentioned in my statement, we are also bringing forward, at a later date through this Parliament, measures on strategic planning and the planning and infrastructure Bill. This is the start of the process, but we know there is a lot more to do. I look forward to my hon. Friend’s engagement with that.
Wendy Morton (Aldridge-Brownhills) (Con)
I am no nimby, but what we are seeing today is a lurch back to top-down mandatory targets that will ride roughshod through local communities such as those that I represent across Aldridge-Brownhills, and through local decision making. I do agree with the Deputy Prime Minister, though, when she says that the first port of call must be brownfield land, so will she confirm that she will give full financing to brownfield land remediation and reclamation?
Angela Rayner
We think we can use brownfield funding better, but this is not about riding roughshod over local decisions and what local people want; having mandatory housing targets and plans means that people will be able to decide. What we are saying, and what we said at the general election, is that we will build 1.5 million homes; we said that clearly, and we have a mandate to do it. We think that the new method for calculating housing targets works better; we think it will deliver for people, and that includes the affordability test. Therefore, we will deliver the houses that the right hon. Lady’s constituency needs, and I would encourage her to engage in the process with her local authority.
Several hon. Members rose—
Rachael Maskell (York Central) (Lab/Co-op)
This has to be the most important statement I have heard since being in the House. York has really suffered from the proliferation of luxury accommodation, second homes and short-term holiday lets, so I very much welcome this statement. Where developers have plans in the system, what steps can be taken to ensure that we pivot to hit the targets for the affordable and social housing that we desperately need right now?
Angela Rayner
I absolutely agree that we desperately need affordable homes. It depends on where my hon. Friend’s local authority is in the process, but we will be setting out the targets, which are likely to be increased for her area, so that the local authority can engage in the process. The golden rules will allow more affordability where there is restrictive release of grey belt. We will ensure that we provide support on affordability and that there is no gaming of the system, so that we get the best we can out of section 106.
Andrew George (St Ives) (LD)
I strongly endorse the sentiment and purpose of the Secretary of State’s policy statement. She will be aware that, as others have said, the planning system is fuelled by greed, rather than need. Cornwall is not nimby—it is one of the fastest-growing places in the United Kingdom and has almost trebled its housing stock in the last 60 years—yet local people’s housing problems have got worse, so my question to the Secretary of State is this. House building targets are a means to an end, so would it not be far better in places such as Cornwall if those targets were set to address the need, rather than simply allowing developers to fill their boots?
Angela Rayner
That is what the new formula does. We are trying to assess the need in areas, taking particular account of their current stock, but also of affordability; I suspect that Cornwall has a particular challenge with that as well. As part of that process, we hope to strengthen the plans on section 106, and the new homes accelerator task force will help to get sites moving forward where they already have planning permission. By working across Whitehall, we will also deliver the infrastructure that people want, because that is the other big issue that keeps coming back. Where we have speculative sites or the release of green belt, or where there is a large amount of housing in an area, the infrastructure is critical. That is the issue we need to overcome, and we are clear on that as a Government.
Helena Dollimore (Hastings and Rye) (Lab/Co-op)
In my constituency, we are at the sharp end of the housing crisis, and we desperately need more affordable homes and more council homes, so I really welcome today’s statement. The Conservative party may behave like this is a zero-sum game between building more desperately needed homes and protecting the environment, but Labour Members know that that is not the case. What approach will the new Government take to ensure that we have sustainable development, so that we protect our environment, ensure that we have the necessary infrastructure, including sewage pipes, and prevent flooding, while building the homes that my constituents so desperately need?
Angela Rayner
I welcome my hon. Friend to her place. She is absolutely right, and her question builds on one that I answered previously. We have to protect our green belt, and the proposals we are putting forward do that. They also mean that we will have the right type of homes and the infrastructure. As part of this process, there will be nature considerations and rules around that. There will also be the infrastructure that people need, as well as access to the countryside and healthy living. My hon. Friend can look at a number of parts of the consultation that refer to how we are delivering better, greener areas for people. Hopefully, her constituents will be able to get behind that.
Sir Roger Gale (Herne Bay and Sandwich) (Con)
It is good to see you in that Chair, Madam Deputy Speaker. I am not sure whether the Secretary of State has discussed her proposals with the Secretary of State for Environment, Food and Rural Affairs or the National Farmers Union, but the answer she gave on food production was risible. What she has announced today is effectively a recipe for disposing of the land that will be needed to feed our children and grandchildren. Just before she goes ahead with that, will she tell the House how many planning consents that have been granted are sitting there unbuilt-out? Should we not use those first?
Angela Rayner
I say to the right hon. Gentleman with absolute respect that he should please read the consultation. We think that we do support our agriculture, which accounts for just over 10% of land—the best and most versatile land. I talked before about protecting the best-value land, and we will do that. The land we are talking about—grey belt, which we define in the NPPF consultation—is not agricultural land; it is disused garages and things of that nature and not, as the right hon. Gentleman wants people to believe, the land we need for food.
Olivia Bailey (Reading West and Mid Berkshire) (Lab)
I welcome the twin ambitions the Secretary of State has set out today: to get Britain building in order to provide the homes we need, and to make sure that we have the infrastructure required to support them, such as schools and GP surgeries. Those ambitions are of equal importance, and we cannot have one without the other. On social and affordable housing, will she confirm that the aim of her package is to go net-positive, so that the number of social rent homes rises rather than falls, and to achieve that in the first year of this Parliament?
Angela Rayner
I welcome my hon. Friend to her place. It will be a challenge, but we are desperate to try to meet that challenge as quickly as we can. That is why we are moving at pace with the consultation exercise we have put forward today, which we will do as quickly as we can, so that we can have the affordable and social housing, the green spaces and the infrastructure that people desperately need.
Sir John Hayes (South Holland and The Deepings) (Con)
I welcome you to the Chair, Madam Deputy Speaker, and I welcome the Secretary of State to her new role. I appreciate that she will not have time today to wax lyrical about her vision of aesthetics or to expand at length on the relationship between truth and beauty. Nevertheless, given the welcome reference in her announcement to proportionality and to the link between the existing built environment and the scale of development, will she also take into account the character and style of development? She may know that I have served on the Building Better, Building Beautiful Commission and in the Office for Place. Will she agree to meet the Office for Place to discuss beauty? She will know that the wealthy can always live in beautiful places and in beautiful homes, but people from council houses—from where she and I originate—deserve their chance to know, to sense and to see beauty.
Angela Rayner
I absolutely agree with everything the right hon. Gentleman says. The Minister of State, Ministry of Housing, Communities and Local Government, my hon. Friend the Member for Greenwich and Woolwich (Matthew Pennycook), will shortly meet all the stakeholders, and I think he has a meeting in the coming days with those the right hon. Gentleman just mentioned. I would love to work with him to make sure that we build the houses that people deserve. Whether it is social, affordable or any other housing, it should be beautiful and should have character and style, and we are determined to make that happen.
Naushabah Khan (Gillingham and Rainham) (Lab)
I thank the Secretary of State for her statement and for the focus she has rightly put on delivering genuinely affordable homes, which will provide much needed housing security to many of my constituents. Recognising some of the immediate homelessness challenges felt by local authorities, will she detail how the plans she has announced today will relieve pressures that lead to homelessness, and on temporary accommodation?
Angela Rayner
My hon. Friend is absolutely right to talk about homelessness and the pressures that local authorities face. This issue feels particularly personal because the number of stories that I have heard, not just when I was the shadow Minister but in the role that I am fortunate enough and humbled to have now, show that we cannot continue with the homelessness crisis. Behind every single one of the figures is a human being. Like poverty, housing has a significant impact on people’s lives and opportunities. That is why, in my role as Deputy Prime Minister, I will bring leaders together at a local, regional and parliamentary level to ensure that we tackle homelessness. We need to do something about the figures. We have inherited a really poor state of affairs, but I am determined to ensure that we do something about that.
Adrian Ramsay (Waveney Valley) (Green)
Many residents in my constituency of Waveney Valley find themselves priced out of living in their community, as is the case in so much of the country, because the homes that are being built are not affordable for local people. I welcome the Deputy Prime Minister’s statement on affordable housing, but how many of the 1.5 million homes that she has pledged to build does she expect to be affordable? In particular, how many does she expect to be council homes? What action will be taken to address the fact that we have a million empty homes in this country?
Angela Rayner
It is difficult to set out the detail at a local level because those types of development are subject to section 106 agreements. That is why local plans are really important, and we support that process. I refer the hon. Gentleman to the consultation document on the release of grey belt, which talks about a minimum of 50% of housing being affordable. Again, that figure will depend on local need. We have to try to get the balance right. If local areas say, “We need x”, but I say, “Well, you are going to have y,” then that is a challenge. We have said that 50% of housing built on the grey belt must be affordable. Local areas can then use that figure and say that they want a particular amount of homes for social rent. The methodology and the affordability test we are using make things much better, because they give a figure that reflects the reality for people in an area.
Alistair Strathern (Hitchin) (Lab)
I welcome you to your place, Madam Deputy Speaker. The Deputy Prime Minister will be all too aware of the extent to which the planning system is failing communities like mine. It is not building the affordable homes that people are crying out for, not delivering the infrastructure my growing communities need, and not even protecting some of the nature-rich parts of our countryside. Opposition Members might not like to hear this, but under the last Government, green-belt approvals, often haphazard, increased tenfold, while brownfield approvals halved. Will the Deputy Prime Minister reassure my constituents that her golden rules will ensure that brownfield and greyfield sites are truly prioritised, and that infrastructure and affordability will be prioritised too, so that we finally deliver growth that works for communities like mine?
Angela Rayner
My hon. Friend is right to mention the haphazard way in which the green belt has been built upon under the last Government, although some of the responses that I have had from Opposition Members give the impression that that never happened. I am clear that brownfield should always be the first port of call, which is why we have been making brownfield development easier under the NPPF. We will also take firm action to limit the scope to game the system, and consult on how to stop developers who have paid over the odds for land using that as an excuse for negotiating down their section 106 contributions. A number of measures, including our golden rules, will ensure that we push towards brownfield. The release of grey belt has to be within our golden rules.
Ben Obese-Jecty (Huntingdon) (Con)
Yesterday, the Secretary of State made the decision to approve the appeal by Envar Composting in relation to a proposed medical waste incinerator on the edge of St Ives, despite the initial application being rejected by Conservative and Labour members of Cambridgeshire county council. Residents in St Ives, as well as the impacted rural villages of Somersham, Bluntisham, Colne, Pidley, Woodhurst, Old Hurst and Needingworth, are hugely concerned that their opposition and concerns have not been heard by the Secretary of State. Given that NHS England’s 2023 clinical waste strategy states that there is a need to
“reduce the use of incineration”,
and details a strategic priority that
“requires in-house waste processing capability”
to be developed, why has the Secretary of State approved a medical waste incinerator against local wishes? Will she meet local residents to hear their concerns?
Angela Rayner
I thank the hon. Member for his contribution. I have not personally dealt with that specific case, but when we make such decisions, we weigh up the advice and planning expertise that we have, and decisions will be made based on the evidence we have. It is an objective way of making a decision.
Noah Law (St Austell and Newquay) (Lab)
I welcome the Deputy Prime Minister’s plan to put building homes at the heart of our mission to raise living standards, and to ensure that what we build reflects local views. Will she give an update on plans to give councils greater powers to tackle the scourge of second homes, which put a drag on our communities and economies, particularly in Cornwall, so that we can unlock supplies through that channel?
Angela Rayner
I said in my statement, this is the first step but we know there is so much more that we need to do. We have a significant amount of legislation coming forward, about which the housing Minister will be able to update the House. The NPPF is about making sure that we get the housing targets in place, but I understand the point my hon. Friend makes. We need to address many more issues that we face in housing, which is why a significant number of measures were announced in the King’s Speech.
Sir John Whittingdale (Maldon) (Con)
An additional 3,000 homes are currently being built in Maldon and Heybridge in my constituency, and Liberal Democrat-controlled Chelmsford city council wants to build another 3,000 at Hammonds Farm in my constituency, yet the local roads and health and education services are all under intolerable pressure, so what will the Secretary of State do to ensure that the necessary infrastructure is put in place before the developments take place?
Angela Rayner
The right hon. Gentleman’s Government was in power for 14 years and could have resolved this issue. One reason why we are consulting on the revised NPPF is because we recognise that infrastructure is critical, as I have said to many hon. Members today. People often reject housing proposals because they do not see infrastructure. That is why we have the golden rules, why I have asked all the Departments to look at what we can do to ensure that infrastructure is there, and why we will support the strengthening of section 106 to ensure that developers do not try to squeeze out of what they promised as part of the development.
Emma Foody (Cramlington and Killingworth) (Lab/Co-op)
As my right hon. Friend has said, this has got to be about building communities, not just about building homes. On too many occasions, residents in my constituency have been left for too long on incomplete and unadopted estates. Does the Deputy Prime Minister agree that both the social and physical infrastructure must be delivered at the earliest opportunity in development, and that developers must be held to account for their delivery?
Angela Rayner
I absolutely agree. That goes back to the point that far too often people object to development because they do not see the infrastructure, and people see that in some cases developers try to wriggle out of their obligations. As I set out in the consultation document we are putting forward today, we believe this will strengthen the hand of local authorities and we will be able to ensure that we get the infrastructure we desperately need alongside the houses.
Jim Shannon (Strangford) (DUP)
The Deputy Prime Minister has outlined the dire need for house building across this great United Kingdom and set out a system to try to achieve that. However, there is the important issue of people trying to get mortgages. In the mainland, those who earn £75,000 a year are having difficulty getting a mortgage, but back home in Northern Ireland, those who are earning much less—say, £40,000 to £45,000—have no chance of getting a mortgage. What can be done to help people to get mortgages and thereby enable them to buy a home and move forward?
Angela Rayner
The hon. Gentleman is absolutely right that we have to fix the situation not just on the affordability of houses, and in the general election campaign we talked about our proposals for a mortgage guarantee scheme. The new deal for working people, which is coming forward with legislation in October time, will ensure that we make work pay. The Chancellor announced a pay rise for public sector workers, and we recently wrote to the Low Pay Commission to expand its remit so that we will make sure that over a million people get a pay rise, because jobs that pay will also mean people can then afford to have their own home.
Building the Homes We Need
Angela Rayner Excerpts(3 months, 3 weeks ago)
Written StatementsRead Full debate Read Hansard Text Read Debate Ministerial Extracts
The Secretary of State for Housing, Communities and Local Government (Angela Rayner)
The Government have today set out the first major steps in their plan to build the homes this country needs.
Our manifesto was clear: sustained economic growth is the only route to improving the prosperity of our country and the living standards of working people. Our approach to delivering this growth will focus on three pillars: stability, investment and reform. But this growth must also be generated for everyone, everywhere across the country, and so nowhere is decisive reform needed more urgently than in housing.
We are in the middle of the most acute housing crisis in living memory. Home ownership is out of reach for too many; the shortage of houses drives high rents; and too many are left without access to a safe and secure home.
That is why today I have set out reforms to fix the foundations of our housing and planning system, taking the tough choices needed to improve affordability, turbocharge growth and build the 1.5 million homes we have committed to deliver over the next five years.
Restoring and raising housing targets
Planning is principally a local activity, and it is right that decisions about what to build and where should reflect local views. But we are also clear that these decisions should be about how to deliver the housing an area needs, not whether to do so at all, and these needs cannot be met without identifying enough land through local plans.
We are therefore reversing last year’s changes, which loosened the requirement for local authorities to plan for and meet their housing needs, and we are going further still by mandating that the standard method be used as the basis for determining local authorities’ housing requirements in all circumstances.
A mandated method alone is, however, insufficient to deliver on our scale of ambition, and the current standard method is not up to the job. It relies on decade-old population projections and an arbitrary urban uplift that focuses too heavily on London, and it lacks ambition across large parts of the country. We are therefore updating the standard method and raising the overall targets from around 300,000 to approximately 370,000. The new method provides a stable and balanced approach. It requires local authorities to plan for numbers of homes that are proportionate to the size of existing communities, by taking 0.8% of existing stock as a floor, which is broadly consistent with the average rate of housing growth over recent years. It also then incorporates an uplift based on how out of step house prices are with local incomes, using an affordability multiplier of 0.6%, up from 0.25% in the previous method.
This approach means that there is no need for any artificial caps or uplifts: the previous cap will no longer apply, and the urban uplift will be removed. With a stable number, reflective of local needs and the way housing markets operate, we will stop debates about the right number of homes for which to plan, ensure targets reflect the way towns and cities actually work, and support authorities to get on with plan making.
Building in the right places
If we have targets that tell us how many homes we need to build, we next need to make sure we are building in the right places. The first port of call for development should be brownfield land, and we are proposing some changes today to support more brownfield development: being explicit in policy that the default answer to brownfield development should be yes; expanding the current definition of brownfield land to include hardstanding and glasshouses; reversing the change made last December that allowed local character to be used in some instances as a reason to reduce densities; and in addition, strengthening expectations that plans should promote an uplift in density in urban areas.
It is however also clear that brownfield land can only be part of the answer, and will not be enough to meet our housing needs, which is why a green belt designed for England in the middle of the 20th century now must be updated for an England in the middle of the 21st. The green belt today accounts for more land in England than land that is developed—around 13%, compared to 10%. Yet as many assessments show, large areas of the green belt have little ecological value and are inaccessible to the public. Much of this area is better described as grey belt: land on the edge of existing settlements or roads, and with little aesthetic or environmental value. It is also true that development already happens on the green belt, but in a haphazard and non-strategic way, leading to unaffordable houses being built without the amenities that local people need.
This Government are therefore committed to ensuring the green belt serves its purpose, and that means taking a more strategic approach to green-belt release. We will start by requiring local authorities to review their green-belt boundaries where they cannot meet their identified housing, commercial or other development needs. There will be a sequential approach, with authorities asked to give consideration first to brownfield land, before moving on to grey-belt sites and then to higher performing green-belt land, recognising that this sequence may not make sense in all instances, depending on the specific opportunities available to individual local authorities. We are defining grey-belt land through reference to the specific reasons for which the green belt exists, so that it captures sites that are making a limited contribution to the green belt’s purposes, with additional guidance set out in the consultation. Existing protections for land covered by environmental designations, for example national parks and sites of special scientific interest, will be maintained, and there will be a safety valve to ensure green belt is not released where it would fundamentally undermine the function of the green belt across the area of a local plan as a whole.
But we cannot wait for all release to come through plan making. Where authorities are under-performing —be that lacking a sufficient land supply or failing to deliver enough homes, as measured by the housing delivery test—we will therefore also make it clear that applications for sites not allocated in a plan must be considered where they relate to brownfield and grey-belt land. This route will maintain restrictions on the release of wider green-belt land, meaning it would remain possible for other green-belt land to be released outside the plan-making process where “very special circumstances” exist, but such cases would remain exceptional. We are also strengthening the general presumption in favour of sustainable development by clarifying the circumstances in which it applies, and introducing new safeguards to make clear that its application cannot justify poor-quality development.
Whenever green-belt land is released, it must benefit both communities and nature. That is why we have today translated our golden rules into policy, meaning that development on green belt will need to: target at least 50% of the homes on site as being affordable for housing developments; be supported by the necessary infrastructure, such as schools, GP surgeries and transport links; and provide accessible green space.
To maximise the value delivered to communities, we are making it clear that negotiations on viability grounds can take place only where there is clear justification. This will enable fair compensation for landowners, but not inflated values. If we see quality schemes come forward that promise to deliver in the public interest, but individual landowners are unwilling to sell at a fair price, bodies such as Homes England, local authorities and combined authorities should take a proactive role in the assembly of land to help bring forward those schemes, supported where necessary by compulsory purchase powers. If necessary, my Ministers and I will consider the use of directions, including by local authorities and Homes England, to secure “no hope value” compensation where appropriate and justified in the public interest.
Moving to strategic planning
These changes will enable a significant amount of land to come forward. I nonetheless recognise that delivering on mandatory and higher housing targets and releasing the right parts of the green belt will not always be straightforward. As such, local authorities will be expected to make every effort to allocate land in line with their housing need as per the standard method, and will need to demonstrate that they have done so at examination of their plan. There are, however, instances where local constraints on land and delivery—such as significant national park, protected habitats and flood risk areas—can make it difficult for an authority to meet its full target, and the current system is not sufficiently effective in enabling need to be shared between authorities in such instances.
That is why the Government are clear that housing need in England cannot be met without planning for growth on a larger than local scale, and that it will be necessary to introduce effective new mechanisms for cross-boundary strategic planning. This will play a vital role in delivering sustainable growth and addressing key spatial issues, including meeting housing needs, delivering strategic infrastructure, building the economy, and improving climate resilience. Strategic planning will also be important in planning for local growth and local nature recovery strategies.
We will therefore take the steps necessary to enable universal coverage of strategic planning within this Parliament, which we will formalise in legislation. This model will support elected mayors in overseeing the development and agreement of spatial development strategies for their areas. The Government will also explore the most effective arrangements for developing SDSs outside of mayoral areas, so that we can achieve universal coverage in England, recognising that we will need to consider both the appropriate geographies to use to cover functional economic areas, and the right democratic mechanisms for securing agreement. Across all areas, these arrangements will encourage partnership working, but we are determined to ensure that, whatever the circumstances, SDSs can be concluded and adopted. The Government will work with local leaders and the wider sector to consult on, develop and test these arrangements in the months ahead before legislation is introduced, including consideration of the capacity and capabilities needed, such as geospatial data and digital tools.
While this is the right approach in the medium-term, we do not want to wait where there are opportunities to make progress now. We are therefore also taking three immediate steps:
First, in addition to the continued operation of the duty to cooperate in the current system, we are strengthening the position in the NPPF on co-operation between authorities, in order to ensure that the right engagement is occurring on the sharing of unmet housing need and other strategic issues where plans are being progressed in the short-term;
Secondly, we will work in concert with mayoral combined authorities to explore extending existing powers to develop an SDS; and
Thirdly, we intend to identify priority groupings of other authorities where strategic planning—and in particular the sharing of housing needs—would provide particular benefits, setting a clear expectation of co-operation that we will help to structure and support, and using powers of intervention as and where necessary.
Delivering more affordable homes
Although increasing supply will be an essential part of improving affordability, we must also go further in building a greater share of genuinely affordable homes. That is why the Government are committed to the biggest growth in social and affordable housebuilding in a generation. As of 2023, there were 3.8 million social rent homes, 200,000 fewer than the 4 million that existed in 2013. According to revised figures we are publishing today, only 110,000 to 130,000 homes are now due to be delivered under the affordable homes programme, down from an aspiration of up to 180,000 when it was launched. On current plans, delivery is due to decline. We will stop that happening. In the first instance, this Government’s aspiration is to ensure that, in the first full financial year of this Parliament—2025-26—the number of social rent homes is rising, rather than falling.
We are therefore proposing a number of changes in planning policy designed to support the delivery of affordable homes: removing the prescriptive requirements that currently tie local authorities’ hands with respect to particular types of home ownership products, and allowing them to judge the right mix of affordable homes for ownership and for rent that will meet the needs of their communities; setting a clear expectation that housing needs assessments must consider the needs of those requiring social rent homes, and that local authorities should specify their expectations on social rent delivery as part of broader affordable housing policies; and testing whether there is more that could be done to support developments that are predominately or exclusively affordable tenures, in particular social rent.
It is also evident that mixed use sites, which can comprise a variety of ownership and rental tenures including rented affordable housing and build to rent, provide a range of benefits, creating diverse communities and supporting timely build out rates. Our changes today mean that local authorities will need to take a positive approach to mixed tenure sites through both plans and decisions.
Alongside our reforms to the planning system, we have today also confirmed a range of new flexibilities for councils and housing associations, with more to follow in the coming months. The first relate to the affordable homes programme, which provides grant funding to support new homes for social rent, affordable rent and shared ownership.
We know that, particularly outside London, almost all the funding for the 2021 to 2026 programme is contractually committed. We have asked Homes England and the Greater London Authority to maximise the number of social rent homes in allocating the remaining funding.
In London, there have been significant delays, including from changed regulations on building safety and many other pressures, which mean that even existing contracts are at risk of falling through because they are no longer deliverable under the current terms. We have therefore agreed with the Greater London Authority new flexibilities to the existing programme so that they can unlock delivery in London, with changes to deadlines for homes completing and tenure mix to enable some intermediate rent homes.
The second flexibilities relate to right to buy. Over the last five years, there has been an average of 9,000 council right to buy sales annually, but only 5,000 replacements each year. Right to buy provides an important route for council tenants to buy their own home. But the discounts have escalated in recent years and councils have been unable to replace the homes they need to move families out of temporary accommodation.
The Government have therefore acted on the commitment in the manifesto and started to review the increased right to buy discounts introduced in 2012, on which we will bring forward more details and secondary legislation to implement changes in the autumn. The Government will also review right to buy more widely, including looking at eligibility criteria and protections for new homes, and will bring forward a consultation in the autumn.
More immediately, we are increasing the flexibilities on how councils can use their right to buy receipts. The Government will remove the caps on the percentage of replacements delivered as acquisitions and the percentage cost of a replacement home that can be funded using right to buy receipts, and councils will be given the ability to combine right to buy receipts with section 106 contributions. These flexibilities will be in place for an initial 24 months, subject to review. I encourage councils to make the best use of these flexibilities to maximise right to buy replacements and to achieve a good balance between acquisitions and new builds.
To further empower and enable councils to build their own stock of affordable homes, I am today confirming our commitment to invest £450 million in councils across England under the third round of the local authority housing fund. This will create over 2,000 affordable homes for some of the most vulnerable families in society, including families currently living in cramped and unsuitable bed and breakfasts, and Afghan families fleeing war and persecution.
In addition to the actions we are taking today, we are committed to setting out details of future Government investment in social and affordable housing at the spending review, so that social housing providers can plan for the future and help deliver the biggest increase in affordable housebuilding in a generation. We will work with Mayors and local areas to consider how funding can be used in their areas and support devolution. The Government also recognise that councils and housing associations need support to build their capacity and make a greater contribution to affordable housing supply, which is why we will set out plans at the next fiscal event to give councils and housing associations the rent stability they need to be able to borrow and invest in both new and existing homes, while also ensuring that there are appropriate protections for both existing and future social housing tenants.
We will also engage with the sector and set out more detail in the autumn on our plans to raise standards on quality, and strengthen residents’ voices. The Government are committed to introducing Awaab’s law to the social rented sector, and will set out more detail and bring forward the secondary legislation to implement this in due course.
Building infrastructure to grow the economy
Alongside building more houses, we also need to build more of the infrastructure that underpins modern life, so today we are taking what are just the first steps in reforming how we deliver the critical infrastructure the country needs.
With respect to commercial development, the Government are determined to do more to support those sectors which will be the engine of the UK’s economy in the years ahead. We will therefore change policy to make it easier to build growth-supporting infrastructure such as laboratories, gigafactories, data centres, electricity grid connections and the networks that support freight and logistics.
Alongside consulting on revisions to planning policy, the Government are also seeking views on whether we should expand the nationally significant infrastructure projects regime to include these types of projects, and if so, what thresholds should be set for their inclusion.
Turning to green energy, boosting the delivery of renewables will be critical to meeting the Government’s commitment to zero carbon electricity generation by 2030. That is why on this Government’s fourth day in office we ended the ban on onshore wind, with that position formally reflected in the update to the national planning policy framework published today. We must however go much further, which is why we are proposing to: boost the weight that planning policy gives to the benefits associated with renewables; bring larger scale onshore wind projects back into the nationally significant infrastructure projects regime; and change the threshold for solar development to reflect developments in solar technology.
We are also testing whether to bring a broader definition of water infrastructure into the scope of the nationally significant infrastructure projects process, providing a clear planning route for new strategic water infrastructure to be delivered on time.
And recognising the role that planning plays in the broader needs of communities, we are proposing a number of changes to: support new, expanded or upgraded public service infrastructure; take a vision-led approach to transport planning, challenging the now outdated default assumption of automatic traffic growth; promote healthy communities, in particular tackling the scourge of childhood obesity; and boost the provision of much needed facilities for early-years childcare and post-16 education.
Supporting local planning
These reforms to planning policy make it more important that every local authority has a development plan in place. The plan making system is the right way to plan for growth and environmental enhancement, ensuring local leaders and their communities come together to agree on the future of their areas. Once in place, and kept up to date, local plans provide the stability and certainty that local people and developers want to see our planning system deliver. But too many areas do not have up to date local plans, just a third of plans have been reviewed and updated in the past five years. In the absence of a plan, development will come forward on a piecemeal basis, with much less public engagement and fewer guarantees that it is the best outcome for communities. That is why the Government’s goal is for universal coverage of ambitious local plans as quickly as possible.
In pursuit of that goal, we therefore propose to take a pragmatic approach to the interaction between the changes we have set out today, and the fact that local authorities across England will have local plans at various stages of development. In practice, this means that:
for plans at examination, allowing them to continue, although where there is a significant gap between the plan and the new local housing need figure, we will expect authorities to begin a plan immediately in the new system;
for plans at an advanced stage of preparation (regulation 19), allowing them to continue to examination unless there is a significant gap between the plan and the new local housing need figure, in which case we propose to ask authorities to rework their plans to take account of the higher figure; and
areas at an earlier stage of plan development should prepare plans against the revised version of the national planning policy framework and progress as quickly as possible.
While this will delay the adoption of some plans, it is important to balance keeping plans flowing to adoption with making sure they plan for sufficient housing. The Government also recognises that going back and increasing housing numbers will create additional work, which is why we will provide financial support to those authorities asked to do this. While I hope the need will not arise, I will not hesitate to use my powers of intervention should it be necessary to drive progress, including taking over an authority’s plan making directly. The consultation we have published today sets out corresponding proposals to amend the local plan intervention criteria.
We will also empower inspectors to take the tough decisions they need to at examination, by being clear that they should not be devoting significant time and energy during an examination to “fix” a deficient plan. The length of examinations has become increasingly elongated, with the average going from 65 weeks in 2016 to 134 weeks in 2022. I have therefore instructed the planning inspectorate on my expectations for how examinations will be conducted, which will in turn mean that Inspectors can focus their effort on those plans that are capable of being found sound and which can be adopted quickly.
More broadly, the Government know how important it will be to bolster capacity, capability and frankly morale in planning departments up and down the country. Skilled, professional planning officers are agents of change and drivers of growth, playing a crucial role in delivering the homes and infrastructure this country needs. Today we are therefore looking to build on the manifesto commitment to recruit 300 new planning officers by consulting on increasing fees for householder applications, which for too long have been held well below cost recovery levels, constraining planning departments in the process. Moving to what we estimate is a cost recovery level of £528 would still be low when compared to other professional fees associated with an application, and is estimated to represent less than 1% of the average overall costs of carrying out a development, with homeowners also benefiting from a range of permitted development rights which allow them to improve and extend their homes without the need to apply for planning permission.
In the medium term, the Government want to see planning services put on a more sustainable footing, which is why we are consulting on whether to use the Planning and Infrastructure Bill to allow local authorities to set their own fees, better reflecting local costs and reducing financial pressures on local authority budgets.
Finally, in demanding more of others, I am clear that we as Ministers must demand more of ourselves. I have already said that when my Ministers and I intervene in the planning system, the benefit of development will be a central consideration, and that we will not hesitate to call in an application or recover an appeal where the potential gain for the regional and national economies warrants it. Today I can confirm that we will also be marking our own homework in public, reporting against the 13-week target for turning around ministerial planning decisions.
First step of a bigger plan
The actions we are taking today will get us building, but they represent only a downpayment on this Government’s ambitions.
As announced in the King’s Speech, we will introduce a Planning and Infrastructure Bill later in the first Session, which will: modernise planning committees by introducing a national scheme of delegation that focuses their efforts on the applications that really matter, and places more trust in skilled professional planners to do the rest; enable local authorities to put their planning departments on a sustainable footing; further reform compulsory purchase compensation rules to ensure that what is paid to landowners is fair but not excessive; streamline the delivery process for critical infrastructure; and provide any necessary legal underpinning to ensure we can use development to fund nature recovery where currently both are stalled.
We will consult on the right approach to strategic planning, in particular how we structure arrangements outside of mayoral combined authorities, considering both the right geographies and democratic mechanisms.
We will say more imminently about how we intend to deliver on our commitment to build a new generation of new towns. These will include large-scale new communities built on greenfield land and separated from other nearby settlements, but also a larger number of urban extensions and urban regeneration schemes that will work will the grain of development in any given area.
And because we know that the housing crisis cannot be fixed overnight, the Government will in the coming months publish a long-term housing strategy, alongside the spending review, which my right hon. Friend the Chancellor announced yesterday. These are the right reforms for the decade of renewal the country so desperately needs. In every area, we will endeavour to make changes with the input and support of the sector, but we will not be looking for the lowest common denominator answer, and we will not be deterred by those who seek to stand in the way of our country’s future.
There is no time to waste. It is time to get on with building 1.5 million homes. A copy of the consultation on the national planning policy framework and associated documents will be placed in the Libraries of both Houses, alongside an update on targets for the 2021 to ’26 affordable homes programme.
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