Worker Protection (Amendment of Equality Act 2010) Bill

Baroness Blake of Leeds Excerpts

3rd reading
Tuesday 12th September 2023 Lords Chamber

[Baroness Burt of Solihull (LD)]

My Lords, taking this Bill through your Lordships’ House has been somewhat of a challenge, but I am delighted to see the finishing post coming up—for this House anyway—until it wends its way back to the Commons and the final hurdle under the sure guidance of the honourable Lady, the Member for Bath. I am grateful to everyone who has worked so hard to bring the Bill to this stage, which has necessitated a great deal of pragmatism and compromise on all sides, not least by the Minister.

The Bill will not return to the Commons as it was when it first arrived in your Lordships’ House but, in essence, it will still protect workers from sexual harassment and it will impose a duty on employers to take reasonable steps to ensure that their employees are protected. Sexual harassment and assault in the workplace, particularly on women at all levels—even, we learn today, on female surgeons—are rife. The Bill will go some way towards rectifying this. We need a change of workplace culture, and this Bill will make a good start.

I thank all Members who have participated in the Bill, including the Minister, the officers of the Government Equalities Office and my legislative adviser, Mohamed-Ali Souidi. The EHRC has also given us excellent advice and will be charged with enforcing the new duty and helping and advising employers. On behalf of the EHRC, I ask the Minister to ensure that the necessary resources are made available to enable it to do this work. An Act is just a piece of paper until and unless it is properly enforced—in this case, that will be no small job. I look forward with great relief to now waving the Bill goodbye for its final stages in the other place.

[Baroness Blake of Leeds (Lab)]

My Lords, I express my sincere thanks to the noble Baroness, Lady Burt, for all the work she has put in, and thank the Minister for her support in the passage of this Bill through the House. The Bill represents an excellent step in the right direction. Clearly, we still have much to do. I also echo the sentiments and hope that the Government will move forward on this and will provide the necessary resources to make sure that all the provisions can be fully implemented.

[The Parliamentary Under-Secretary of State, Department for Levelling Up, Housing & Communities (Baroness Scott of Bybrook) (Con)]

My Lords, I sincerely thank the noble Baroness, Lady Burt of Solihull, for her work in taking this important Bill through the House. The noble Baroness has been patient and has shown great pragmatism—I think we have used that word a few times—in the progression of this Bill to help tackle workplace harassment. It is an honour to be here to confirm the Government’s ongoing support. We believe it is important that everyone feels safe and able to thrive in the workplace.

The noble Baroness asked me how the EHRC will enforce the new duty—that is important. The EHRC’s regulatory approach for any new duty will include producing a statutory code of practice based on its current technical guidance in the area and a mechanism for employees and employee representatives to be able to notify the EHRC of breaches and potential breaches of the preventative duty. It will also be able to use powers under the Equality Act 2006 to undertake strategic litigation, investigation and enforcement activity to target systematic non-compliance with the preventative duty, in accordance with the litigation and enforcement policy. On how that will be funded, I will write to the noble Baroness.

The Bill will help the Government to deliver their commitment to introduce the employer duty as part of the violence against women and girls strategy. The employer duty will send a strong signal to employers that they need to take action to prioritise prevention of sexual harassment and, ultimately, to improve workplace practices and culture. I thank all noble Lords and organisations who raised important issues in the debates and discussions throughout the Bill’s progression through the House. I believe this Bill now strikes the right balance between protecting free speech and tackling harassment. While there has been much debate and amendments have been made to the Bill, I think we can all agree that workers should feel safe and be free from sexual harassment in the workplace. Therefore, I hope the Bill can progress with the full support of the House today.

Worker Protection (Amendment of Equality Act 2010) Bill

Baroness Blake of Leeds Excerpts

2nd reading
Friday 24th March 2023 Lords Chamber

[Baroness Blake of Leeds (Lab)]

My Lords, I thank the noble Baroness, Lady Burt, for bringing this Private Member’s Bill to this place. I pay tribute to colleagues in the other place for their involvement, particularly in the debate that took place. I state from the outset our disappointment that the Bill is necessary at this moment in time. It reintroduces provisions made by the last Labour Government under the Equality Act 2010 that were removed by the coalition Government in 2013, who justified it by stating that the protections imposed an unnecessary burden on business. Surely, protecting people from harassment, especially in the workplace, should be seen never as a burden but as a responsibility. It is pleasing that, nine years later, there has been a change of heart by the Government, but concern remains about the length of time that has elapsed since 2019, when consultation on strengthening protections against harassment in the workplace was launched.

It is important to restate the scale of what we are facing. This needs to be listened to, heard and repeated on all occasions. Workplace sexual harassment is experienced by a minimum of 40% of women. Currently, the law on workplace sexual harassment is enforced only by individual women taking cases forward and there is no duty on employers to take preventive steps, but we know that this is not working. Some 79% of women do not report their experiences. The reforms in the Worker Protection (Amendment of Equality Act 2010) Bill ensure that more employees are protected and that more employers take responsible steps to prevent harassment.

At a minimum, as I said, 40% of women in the workforce experience sexual harassment over the course of their careers. Different women experience different rates and forms of harassment. Women and men of colour report even higher rates of sexual harassment. Seven in 10 disabled women and 68% of LGBTQ+ workers have experienced workplace harassment. Occupations where workers are exposed to male third parties—customers, clients or patients—also carry a higher risk for women who work in them. Some 56% of women working in the hospitality industry have experienced sexual harassment, as have 47% of those working in the services industries. In 2017 a survey showed that up to 18% of those who had experienced workplace sexual harassment said that the perpetrator was a client or customer.

Sexual harassment causes a variety of harms, including psychological, physical and economic. Morally and legally, employers should be required to take all reasonable steps to stop sexual harassment occurring. Disrespectful and abusive workplaces also have lower performance and productivity, and increased staff turnover.

What do we need to change? It is highlighted in the Bill. We have mentioned third-party harassment; we are trying to seek ways to make sure that staff members who face these problems have legal protection. The extent to which women who work in client-facing roles are unprotected by current laws was highlighted, as we heard, in the highly publicised Presidents Club scandal. The women who faced violations of their dignity in that case would not have had recourse to the law as it currently stands.

As I said, this was briefly on the statute book from 2010 to 2013 but was removed because the Government at the time believed that protection was present elsewhere in the law. However, following a subsequent court case, the Government now accept that there is a gap in the law. As I think we have heard, data from the House of Commons Library using the Government’s own survey indicates that 1.5 million people experience sexual harassment from a third party each year.

On the preventive duty, as I said, despite the protections in existing law, workplace sexual harassment is widespread. It is underreported for many reasons, including fear of repercussion, lack of awareness regarding rights, and fear of not being taken seriously. I am afraid to say that those fears are well founded. The EHRC found that in nearly half the cases where employees made a report, the employer took no action, minimised the incident or placed the responsibility on the employee to avoid the harasser.

Our current laws on sexual harassment mean that employers are not required to be proactive and take action to drive the necessary change. This also leaves managers not knowing how to respond appropriately. Only 45% of managers feel supported by their organisation when reports are made to them. Most importantly, it leaves women who have encountered traumatic experiences unsupported. We can and surely must do better.

The law needs to shift focus from redress to prevention. Currently, the question of whether employers have taken adequate steps to prevent harassment arises as a defence only if an incident of sexual harassment has already occurred. This of course means that employers are not required to take actions that prevent sexual harassment occurring. In 2018 the EHRC found that only a minority of employers had effective processes to prevent and address sexual harassment.

Over the last few years we have seen the Government make various commitments to take action. In 2021 the Government’s response to a 2019 consultation on workplace sexual harassment led them to make commitments to introduce a new preventive duty for employers, introduce more explicit protection from harassment by third parties, and consider extending time limits for Equality Act claims in the employment tribunal from three to six months. Do those commitments remain government policy? It was perplexing for us all, having had these commitments, to find no reference to them in the Queen’s Speech last year. We hope that the Bill is the mechanism through which these changes can be enacted on to the statute book.

So we are looking for answers to the issue of employer liability for third-party sexual harassment and the standalone preventive duty. As we heard earlier, at Third Reading in the other place, the Government amended the Bill so that employers will not be liable for workplace harassment, other than sexual harassment, where it arises as a result of a protected conversation. It is questionable whether this amendment is necessary. However, the implementation of a preventive duty and third-party liability is indeed a big step forward and consequently, we continue to support the Bill.

I have some questions for the Minister today. I support the noble Baroness, Lady Burt, in her request for information on how the amendment’s impact will be monitored and what remedial action will be taken if it does indeed interfere detrimentally with the spirit of the wider reforms. The Government have indicated their commitment to the reforms, but are they still committed to extending from three months to six months the time limit for bringing to the employment tribunal all claims made under the Equality Act? Many organisations support this extension, as the current three-month limit means that pregnant women have to bring a case in the first few months after birth, and sexual harassment victims when they are still incredibly traumatised.

It goes without saying that I look forward to the Minister’s response to the matters raised today. I particularly look forward to hearing that the Government are committed to supporting the Bill.

Called-in Planning Decision: West Cumbria

Baroness Blake of Leeds Excerpts

Thursday 8th December 2022 Lords Chamber

[Baroness Scott of Bybrook (Con)]

I thank my noble friend for that. I could not have said it any better, or anywhere near as well as he has said it.

[Baroness Blake of Leeds (Lab)]

I cannot say it better than Alok Sharma, the President of COP, said it in the press at the weekend:

“A decision to open a new coalmine would send completely the wrong message and be an own goal. This proposed new mine will have no impact on reducing energy bills or ensuring our energy security.”


I am pleased to see that the noble Lord, Lord Callanan, is in his place. I have been preparing to congratulate him on the U-turn on planning permissions for onshore wind farms, which will have a positive impact by reducing energy bills and contributing to energy security. Is this not an example of the Government giving with one hand and taking away with the other? The reality is that the decision has been taken simply to tackle the competing demands from different groups of vociferous Back-Benchers.

[Baroness Scott of Bybrook (Con)]

No, I do not agree with the noble Baroness. The decision has been made taking into account the evidence and because, rather than importing—we would import this coke anyway—we are now producing it in this country. Anything that is over and above what is required by the steel industry in this country is net to the UK economy. That is important, but most important is that, rather than buying from other mines which are not net zero, this is a modern mine whose production is net zero.

Rating (Coronavirus) and Directors Disqualification (Dissolved Companies) Bill

Baroness Blake of Leeds Excerpts

3rd reading
Wednesday 8th December 2021 Lords Chamber

[The Minister of State, Home Office and Department for Levelling Up, Housing & Communities (Lord Greenhalgh) (Con)]

My Lords, it is a pleasure to see this Bill through to its conclusion.

The pandemic has had far-reaching and unexpected impacts and the business rates part of this Bill seeks to address its potentially distortive effects on the rating system and local government income. By clarifying that coronavirus and the Government’s response to it will not be considered a “material change of circumstances” for the purpose of property valuation, the Bill ensures that the rating system will continue to operate as it was intended to. It also removes a significant source of uncertainty for local councils.

I thank noble Lords for the engagement we have had during the passage of the Bill. We have sought to strike the right balance between getting this important measure passed quickly and leaving space for legitimate discussion on the wider issues at play, for instance the future of business rates. Considerable expertise has been in evidence, which will be of great value when we come to debate the more substantial changes that the Government have announced. In particular, I thank the noble Baronesses, Lady Blake and Lady Pinnock, for their careful scrutiny and, ultimately, the very welcome support they have offered.

The new power to investigate the conduct of former directors of dissolved companies and seek to disqualify them where appropriate will have far-reaching benefits to the economy, in terms of improved confidence in lending, and to business and the wider public, in protecting them from the actions of rogue directors.

Of course, there is the very pressing matter of ensuring that the Government have the tools they need to tackle those reprehensible individuals who have taken advantage of a public health crisis to line their own pockets, and this new measure will play its part in bringing them to task. I am sure noble Lords will agree with me that it is only right that the retrospective provision in this measure will mean that the investigation of those individuals may start immediately upon Royal Assent.

As well as the noble Baronesses, I extend my thanks to the noble Lord, Lord Fox, and my noble friend Lord Leigh, who have provided thoughtful and constructive contributions to the debate on the director disqualification part of this Bill. Finally, I thank the Bill teams in the Department for Levelling Up, Housing and Communities, and the Insolvency Service for bringing me up to speed on some of the more detailed provisions and helping me get a proper understanding of the Bill. I beg to move that this Bill do now pass.

[Baroness Blake of Leeds (Lab)]

My Lords, it is fair to say that there has been some significant consternation from noble Lords at the way this Bill was initially put together. However, in the main, we support its passage to get help to those in serious need.

We expressed our ongoing concerns at different stages of this Bill. It is obvious that the whole area of business rates needs urgent review and root-and-branch reform. Likewise, enormous concerns remain as to whether the Insolvency Service is sufficiently resourced to meet its obligations under the Bill with regard to the significant increase in business, as outlined.

I put on record my appreciation of the informed contributions from the noble Lords, Lord Fox and Lord Leigh, the noble Earl, Lord Lytton, and the noble Baroness, Lady Pinnock. I thank my noble friends Lord Hunt and Lord Sikka for their invaluable insights and knowledge on these matters.

From these Benches, we express our gratitude to the Bill team, the clerks and the staff of the House, and the Insolvency Service for the in-depth briefings it provided. I also thank both Ministers involved in this Bill: first, the noble Lord, Lord Greenhalgh—I particularly acknowledge the further detailed investigation he went into when the cause of our concerns over the business rates issue came to light—and the noble Lord, Lord Callanan, for his continued courtesy in offering regular briefings from his team and the insolvency support service on the various matters under consideration.

Finally, I thank both Ben Wood and Dan Harris, our excellent advisers, for their unfailingly high standard of support throughout the proceedings.

Clearly, both matters leave further work to be undertaken in both Houses, as has been outlined. I will watch the implementation of provisions with great interest.

Rating (Coronavirus) and Directors Disqualification (Dissolved Companies) Bill

Baroness Blake of Leeds Excerpts

Report stage
Wednesday 1st December 2021 Lords Chamber

[Baroness Pinnock (LD)]

My Lords, I draw the attention of the House to my relevant interests as set out in the register, as a vice-president of the Local Government Association and as a member of Kirklees Council. I am speaking on Amendment 1 in my name and that of my noble friend Lord Fox, and on Amendment 2 in the name of the noble Baroness, Lady Blake.

I and my colleagues support the principle of the proposals—as I have said at every occasion—in relation to the non-domestic rates element of the Bill. Businesses have faced challenging circumstances due to Covid, and these challenges remain. Understandably, businesses have reviewed their position, and some have decided to use the VOA check, challenge, appeal process to seek a reduction in their business rates. The VOA publishes quarterly statistics of the numbers of businesses using the process to appeal their rates. The statistics do indeed show a spike in both the check and challenge elements of the process. For example, there were around 80,000 checks requested in the March to June quarter of 2020 —this spike compares with an average of around 10,000. However, 70,000 of these checks were quickly resolved. There were around 22,000 challenges in the next quarter, but fewer than half seem to have been resolved. There is clearly a significant increase in the volume of claims being received by the VOA. However, the value of these claims, including the value of successful claims, is not revealed.

Throughout the course of the Bill, I have been concerned to establish the evidence base for its proposals, including, importantly, the total value of successful and potentially successful claims which would result in a loss of business rates income. A loss in business rates income has a direct and adverse impact on local government finances, which have already been squeezed dry. Responding in Committee to similar concerns that I raised, the Minister was unable to give a categoric assurance that there would be no loss of income for local government. The Minister stated then that

“central government will meet 75% of the costs of irrecoverable losses in business rates income for 2020-21.”—[Official Report, 10/11/21; col. GC 522.]

Can the Minister confirm that local government will not be paying for any losses in business rates due to Covid?

Further, it is widely accepted that the existing system of business rates is ineffective and woefully inadequate in ensuring that retail businesses that use online ordering are paying at the same rate as those on traditional high streets that the Government often profess to want to support but lamentably fail to.

Amendment 2, in the name of the noble Baroness, Lady Blake, seeks a review of the impact of the changes and of whether business rates are fit for purpose. Any government review with recommendations to try to fix this broken system is welcome, and we support the sentiments in this amendment. I beg to move.

[Baroness Blake of Leeds (Lab)]

My Lords, I declare my interests, particularly as a vice-president of the LGA. I will speak to Amendment 2, in my name, and to Amendment 1, as introduced by the noble Baroness, Lady Pinnock.

As we begin Report, I remind the House that we are broadly supportive of the Bill and recognise that action needs to be taken swiftly. The measure in the Bill to rule out Covid-19-related material change of circumstances business rates appeals—that is quite a mouthful—coupled with the announcement of £1.5 billion in funding to provide additional targeted support to those businesses that have not already received rates relief, provides some certainty for local government.

--- Later in debate ---

Moved by

[Baroness Blake of Leeds]

3: After Clause 1, insert the following new Clause—
“Advice to local authorities
Before 1 March 2022, the Secretary of State must publish a statement containing advice to local authorities on the implementation of this Act.”Member’s explanatory statement
This amendment would ensure that the Secretary of State publishes advice to local authorities on the implementation of this Act.

[Baroness Blake of Leeds (Lab)]

In this group we also have Amendments 7 and 8, in the name of the noble Baroness, Lady Pinnock.

I move this amendment to seek confirmation

“that the Secretary of State publishes advice to local authorities on the implementation of this Act.”

Clearly, there has been some movement on this issue; there was widespread concern about this Act in Committee. From my experience, this message has been repeated not only in this area but throughout the whole pandemic. Given that local authorities were tasked with many responsibilities in helping businesses with the financial packages from government, which were welcome, it is important that whoever is in government has the full respect for local government that it needs and deserves. Timely, appropriate and full information is of paramount importance.

I am sure that I do not need to remind the House that local authorities face a dire situation, particularly regarding their finances. Many of them are about to publish their budget, which they will have to deliver in the early months of next year. The timing of this Bill brings into focus why local authorities are asking for clarity, and the sense of urgency that is being expressed.

We know that, since 2010, under the policy of austerity, Conservative Governments have variously come together to cut £15 billion from central government funding to local authorities. According to the Local Government Association, councils in England will face a funding gap of more than £5 billion by 2024 just to maintain services at their current levels. That is why we must ensure that they get the best advice from government on the implementation of this Bill. If we could have real clarification from the Minister on what advice they will receive and when, we would be grateful.

On the £1.5 billion in the funding announcement, I remember my noble friend Lord Hunt saying in Committee that there is a problem in that the guidance to local authorities on the distribution of money is still awaited. Many businesses do not know whether they will qualify for funding given that, as I understand it, the criteria have not yet been published. My noble friend was particularly concerned that whole areas have been missed out in the proceedings.

In Committee, the Minister stated:

“The funding will be available as soon as local authorities have established their own local release schemes; the Government will support them to do this as quickly as possible, including through new burdens funding.”—[Official Report, 10/11/21; col. GC 522.]


I would be grateful if the Minister could provide an update on how that work is going, and give a clear explanation of how the rationale running throughout this is being used to inform how decisions are made and how fairness and transparency will be assured. I beg to move.

[Baroness Pinnock (LD)]

My Lords, Amendments 7 and 8 in my name pursue an issue I raised both at Second Reading and in Committee regarding the complete mystery surrounding the £1.5 billion of taxpayers’ money that the Government propose to use as recompense for businesses in removing their rights to appeal their business rates.

This is all very unsatisfactory. The Bill is in its final stages and we do not know, first, the value of the real and estimated claims being made by businesses via material changes of circumstances based on the impact of Covid. The Minister may well claim that there is no information regarding the value of estimated claims, yet that is precisely what the Bill seeks to do. Secondly, we do not know at all whether £1.5 billion will in any way be sufficient to adequately and fairly compensate business for the removal of lawful claims made to the VOA.

--- Later in debate ---

[Lord Greenhalgh (Con)]

My Lords, I will do my very best. I start by saying that local authorities are protected by what is known as the local tax income guarantee; I know the noble Baroness, Lady Pinnock, knows about that. Three critical questions have been raised, and I will take time in answering them to reassure noble Lords that this has been well thought through.

First, there is a false equivalence between the £1.5 billion and the material change in circumstances. We do not see the £1.5 billion as a like-for-like compensation for Covid-related MCC claims. The statistics show that it would have seen reductions applied indiscriminately to properties whether or not their occupiers needed support. The £1.5 billion relief we are introducing is not—and should not be—designed to mimic or replace the MCCs that were submitted. It is better than that: it is focused on those who submitted MCCs who genuinely needed support and may have had to wait years. They will be able to access it more quickly because the approach is more targeted, and industries that have received quite considerable support are excluded from that amount. That is why we are taking this important approach.

I think the critical question that the noble Baronesses, Lady Blake and Lady Pinnock, asked is how the £1.5 billion will be distributed. I have to say that I have taken quite a long time to understand that myself; I put that right on the table. I have had some help from the former chief economist of the Bank of England, Andy Haldane, and I have had meetings with colleagues and Ministers in the Treasury about this. I think I broadly understand it. The marker that will be used at the national level is the ONS data around the gross value added reduction for those industries that have not had support. That is very robust information at the national level, but unfortunately we do not have very good data at the regional level for the last two years. So we will use the data we have at the local level around industries, because we know, broadly speaking, which businesses are at the local council level. Therefore, it is not something that is going to be gained. There is a clear proxy metric in GVA with the good data we have at the local level. I am satisfied that this is the best we can do in these circumstances and a sensible way in which to divide the cake.

The last question is around the timing of the guidance and implementation. I have spoken of the benefits of using locally administered business rates relief, rather than the appeals system, to funnel support where it is needed. One of these is pace, and since Parliament is agreed on the principle of the Government’s approach, we have a responsibility to avoid unnecessary delay. We need to move, and that is one of the real benefits of this course of action. The best course of action is to speed the Bill through to Royal Assent. On that basis, I hope noble Lords will not press their amendments.

[Baroness Blake of Leeds (Lab)]

My Lords, I thank the Minister for taking our concerns very seriously and for going away and having conversations with some very senior people. I am sure I speak for the noble Lords on the Liberal Democrat Benches when I say that we appreciate that. In Committee this concern was repeated from whichever Bench someone was speaking from. This is a very real concern, so I sincerely thank the Minister.

The question that will remain, of course, is how this is maintained and monitored and how we make sure that there will be recourse to additional funds if the £1.5 billion is not adequate. I am not sure that I have quite got that security of knowledge.

[Lord Greenhalgh (Con)]

The Government always keep these matters under review. We recognise the importance of business rates in providing the financial stability and underpinning for local councils, and I can make that commitment, as with all government policy.

[Baroness Blake of Leeds (Lab)]

With those reassurances, I beg leave to withdraw my amendment.

Amendment 3 withdrawn.

Moved by

[Baroness Blake of Leeds]

4: After Clause 3, insert the following new Clause—
“Insolvency Service finances and resources
(1) Before 1 March 2022, the Secretary of State must make a statement on the impact of this Act on the financial situation of the Insolvency Service. (2) The statement must include an assessment as to whether the Insolvency Service is sufficiently resourced to meet its obligations under this Act.”Member’s explanatory statement
This amendment would place an obligation on the Secretary of State to make a statement on the impact of this Act on the financial situation of the Insolvency Service and whether the Insolvency Service is sufficiently resourced to meet its obligations under this Act.

[Baroness Blake of Leeds (Lab)]

This amendment relates to part of the situation discussed in Committee: that this a hybrid Bill which has caused some conversation and comment over its different stages.

In moving Amendment 4 in my name, I will also reference Amendments 5 and 6. Amendment 4 would place an obligation on the Secretary of State to

“make a statement on the impact of this Act on the financial situation of the Insolvency Service”

and

“whether the Insolvency Service is sufficiently resourced to meet its obligations under this Act.”

As we know, the Bill removes the necessity for the Insolvency Service to apply to court to have dissolved companies restored before investigating said companies’ directors. In doing so, it makes it quicker and cheaper for the Insolvency Service to investigate the directors of dissolved companies.

Her Majesty’s Opposition are pleased at the closing of a legal loophole that for too long has allowed unscrupulous company directors to evade responsibility for their financial decisions. However, we remain concerned about whether the Insolvency Service has enough resources to carry out this extra work. We understand the concern caused by the behaviour of some directors in receipt of, for example, bounce-back loans and how the dissolution process might be being used inappropriately to shed liabilities. I should like to ask the Minister: do we have an assessment of the scale of the problem this is causing?

The Bill makes no mention of further funding for the Insolvency Service. Given that the Bill means that the service will be carrying out additional investigations, this is worrying and risks overstretching it. Can the Minister confirm that the service will be given the adequate funding to deal with this workload and ensure that all necessary investigations are carried out to a good standard? If the Minister argues against such a statement, as requested by Amendment 4, will he explain clearly how adequate resourcing for the service for these new powers will be included in its annual report? I beg to move.

[Lord Fox (LD)]

My Lords, I rise to speak to Amendments 5 and 6 in my name and that of the noble Lord, Lord Leigh of Hurley.

Amendment 5 seeks to add a new clause that would require the Secretary of State to report on the resources and the powers available to both the Secretary of State and the Insolvency Service in relation to the Bill. It covers similar territory to the amendment of the noble Baroness, Lady Blake. Despite the Minister’s comments in Committee that resources are always available for cases in the public interest, members of the insolvency and restructuring profession report that they often see cases involving significant breaches by directors that are not investigated and acted on. This would suggest that the Insolvency Service is currently resource-constrained.

That view is supported by looking at figures on the disqualification of directors of insolvent companies by the Insolvency Service. These show a roughly flat line of disqualifications made by the service over a number of years—a constant rate of disqualification, irrespective of economic conditions, trends or fluctuations in the number of corporate insolvencies. Again, that suggests a resourcing issue for the service.

That situation could get worse without a commitment to fund the additional cases that the Bill will create. We have therefore tabled our Amendment 5, which would require the Government to report six months after the Bill has been passed on whether the appropriate resources were available to undertake the additional investigations required as a result of the legislation.

I thank the Minister, who met me and the noble Lord, Lord Leigh, to discuss these amendments—I think very productively. It is clear that the Minister and the Insolvency Service grasp the point that the more resources that there are, the better the return, or likely return, to the taxpayer. We are looking for something from the Minister that indicates that Her Majesty’s Treasury shares this understanding. We of course do not want to upset delicate negotiations that may now be under way between the Minister’s department and the Treasury, but a clear indication that the resource issue is in hand would help negate the need for this amendment.

It would also be helpful if the Minister were able to comment on the nature of the cases that this legislation will enable. Our understanding is that the Bill gives the Insolvency Service the power to pursue recompense from the former directors of dissolved companies and that this can be done via compensation orders without the cost of reinstating the companies in question. The key issue for clarification is which creditors may benefit from these future compensation orders. Can he confirm that future beneficiaries will include all other creditors in addition to Her Majesty’s Treasury? The Minister has just nodded. Can he confirm that the Insolvency Service will include the plights of those other creditors in its calculation of the public interest when it decides which cases to pursue?

The second amendment, Amendment 6, would also add another clause. This time, it creates a requirement on the Secretary of State to report on the impact of the legislation on the investigations into the conduct of directors of dissolved companies. The principal purpose of this amendment is to weigh the success of the legislation by measuring and reporting its ability to claw back money from directors of dissolved companies. We know that the Insolvency Service already has a duty to report annually. However, at the moment, our reading is that the metric we propose here is not explicitly included in the list of requirements on which to report. Again, following discussions with the Minister, it seems reasonable for this “cash-back” criterion to be added to the Insolvency Service’s annual report agenda. We hope that his response to this amendment will do just that, rather than requiring primary legislation. I trust that he is able to make those undertakings.

--- Later in debate ---

[Lord Callanan (Con)]

Yes, it is my understanding that the Bill, if passed, will enable compensation to be pursued, and there is no need for the restoration of companies to the register for that to take place.

[Baroness Blake of Leeds (Lab)]

I start by thanking the Minister for a very full response. Sometimes when I get a very full response, I wonder whether it is an attempt to overload the system, but actually it was very technical. I also thank him—I think on behalf of us all—for taking time to bring his officials together to talk us through it.

We established in Committee that the Bill does not have the capacity to deal with some of the serious concerns raised in our discussions. We will need to revisit some of the worst excesses and infringements of current legislation. Some of the personal testimonies to the levels of fraud and the fact that some directors were re-emerging and getting away with some unspeakable behaviour is still of huge concern to us all.

On reporting, would it be possible to have a conversation on how we can pull out the relevant information from the various reports to which the Minister referred? With the best will in the world, we will not all be able to sit down to go through a whole set of annual accounts. With the particular experience with Covid and the extent of concern about it, there is a real need for transparency. I hope that we can pick this up and take it forward.

My concern about resourcing is still very live, and I hope that after the reassurance on the spending review and the need to focus on this, the debate in this Chamber will help to inform the decisions that are made. Noble Lords will have heard several in-depth media reports on the concern about the levels of fraud that have been perpetrated over the past 18 months, and I think there is a lot more to come to light.

I thank the Minister for his reassurances, and we will keep scrutinising progress in this important area. I look forward to opportunities—perhaps through further legislation—to deal with some of the real problems that continue.

Amendment 4 withdrawn.

Islamophobia

Baroness Blake of Leeds Excerpts

Monday 15th November 2021 Lords Chamber

[Lord Greenhalgh (Con)]

My Lords, I thank my noble friend for raising the concerns of the Muslim community, for his contribution to how we tackle the issue of Islamophobia and for his advice on how best to proceed. We remain committed to tackling Islamophobia where it exists across our communities, and we will continue to consider this issue with the utmost seriousness.

[Baroness Blake of Leeds (Lab)]

My Lords, the Government’s own hate crime statistics show that nearly half of all recorded religious hate crimes were against Muslims. What specific urgent steps have the Government taken to end this abuse and will the Minister commit to working with Muslim groups to ensure urgent progress?

Levelling Up White Paper

Baroness Blake of Leeds Excerpts

Monday 15th November 2021 Lords Chamber

[Lord Greenhalgh (Con)]

My Lords, I expected this Question to go in any number of directions. It is important to address the barriers for people getting on in life. We are looking to spread opportunities and, of course, we need to address issues such as alcohol harm, which the noble Baroness has raised.

[Baroness Blake of Leeds (Lab)]

I declare my interest as a vice-president of the LGA. Will income disparity be addressed in the forthcoming White Paper, given that people in London are paid £16,150 more per year on average than people in Burnley? Do the Government plan to level up wages?

[Lord Greenhalgh (Con)]

My Lords, I am not sure that is the way to think about these problems. We need to recognise that, as well as the income disparity, there is the cost disparity. Admittedly, living in a great capital city comes at a price. We want to level up some of the areas that have been left behind. That does not mean we want a reduction in income in places such as London. We need to ensure that we lift all boats—that is the philosophy behind levelling up.

Leaseholders: Safety Remediation Costs

Baroness Blake of Leeds Excerpts

Thursday 4th November 2021 Lords Chamber

[Baroness Blake of Leeds (Lab)]

My Lords, I refer to my interest as a vice-president of the Local Government Association. I also add my sincere thanks to the noble Lord, Lord Stunell, for achieving this debate today—it is such an important debate, and one that has been occurring in this place for many months. I pay tribute to all the thoughtful, well-informed contributions that we have heard this afternoon. I am sure the Minister will recognise that many of these contributions can be taken away to form the basis of a really constructive way forward that will achieve the support of many across this House.

I fully recognise the importance of debating the need for safe, green and affordable housing, but, as others have stated, given the gravity of the situation facing leaseholders currently, I will focus my comments on the urgent need for action to address the frankly desperate situation facing so many thousands of innocent people.

Four years on from the tragedy at Grenfell Tower, the Government’s response to building safety is still characterised by delay after delay. Make no mistake: this is a crisis. Despite promises by the Government, hundreds of thousands of people still live in unsafe homes. Surely it is a basic human right for people to have a safe home to live in. As we have heard in the debate today, the problems become ever more complex as more and more layers of the situation unfold.

As we have heard, this failure to make buildings safe and protect leaseholders has left innocent families trapped in dangerous homes and forced, potentially, to pay enormous bills for repair works and more. Put simply, this is an example of the Government’s proposed legislation completely missing the mark, and therefore missing the opportunities to make the necessary differences.

The Building Safety Bill, for example, makes a few welcome changes, with a new regulator and accountability, but, frankly, this is only tinkering around the edges. What we really need is urgent action and leadership to protect the hundreds of thousands of people already trapped. Estimates suggest that the actual figure of all those affected, as the noble Baroness, Lady Pinnock, said, could be between 3 million and 5 million—one in 10 of the population of the country.

On top of this, the funding mentioned in last week’s Budget is only a drop in the ocean of what is needed. The reference to £5 billion to deal with cladding was simply reannouncing a previous policy, whereas the other £2 billion from a developers tax will make no difference, given that the estimated costs could be, based on some estimates, up to as much as £50 billion. Indeed, I understand that the £2 billion figure is actually included in the sum of £5 billion.

We all probably know at least one person or family affected by this crisis. To them, our being here talking on the scale of billions of pounds does not mean a great deal, especially as we cannot yet agree on what the total cost is going to be. We have to focus on each individual circumstance and break down the costs accordingly to understand the full picture. We need also to look at this problem through the eyes of those who are caught up in it. We have heard some heart-rending stories today, but also in the media. We know that the circumstances affecting people are developing by the day. It is not just the cost of remediation but, as we have heard, the costs of waking watch and insurance, which seem to be growing every minute of the day.

There are still outstanding issues with the Building Safety Fund’s scope and timeframe, as well as questions of liability and insurance costs, which are contributing to yet another breakdown in confidence. As we have heard, the overwhelming issue is of course to establish responsibility and the means to achieve redress. We have heard contributions on the “polluter pays” principle, but I would add a cautionary note from the experience of those who have tried to develop that principle with other polluters in other fields. I am afraid that some of them simply disappear off the face of the earth, and they will be difficult to pin down. So, what can we do collectively for those who cannot rely on that as a course of action?

That is why we on these Benches have consistently called for a new building works agency, which we recognise will be just a starting point, to get a grip on this crisis and put an end to the spiralling costs. It would pull together a team of building safety experts to evaluate the buildings and identify works, as we have heard today, in order to enable a way forward for homes to be finally fixed and made both safe and sellable; and, most importantly, it would ensure that this situation could never happen again.

As we have heard, the emotional and financial toll on the people affected is off the scale. We are talking about blameless victims who should not bear the responsibility or the costs for working this out. We know that safety is paramount and that the properties were bought in good faith.

So, what do we say to those facing bankruptcy? What do we say to the couple I know in Leeds who purchased their property with a view to it being a stepping-stone to a family house and starting a family, and who have heart-breaking stories about being unable even to contemplate going down that path, with no end in sight to their problems? As we heard from the right reverend Prelate the Bishop of London, housing inequality in this country is in a state of emergency, so let us make sure that the principle of fairness runs through everything we do from here on in.

We have learned today from the many experts who have contributed to this debate that there is no shortage of ideas or will to move this forward. I think we are all hoping that the Minister can give us a clear statement of the Government’s intention to restore confidence and hope to the families who have lost everything and who are caught up in this terrifying nightmare.

Council Tax: Second Homes

Baroness Blake of Leeds Excerpts

Thursday 4th November 2021 Lords Chamber

[Lord Greenhalgh (Con)]

I point out that 96% of second homes pay council tax in full, even though they may use local services only on an occasional basis. We believe that, in the sharing economy, where people run businesses and meet the threshold, it is reasonable for them not to pay council tax and to be subject to the business rates regime. No local authority has lost out, because they are covered by various grants in the business rates retention scheme.

[Baroness Blake of Leeds (Lab)]

My Lords, I refer to my interest as a vice-president of the LGA. Last year, the Chancellor announced a major reduction in stamp duty, which also covered buyers of buy-to-let properties, holiday homes and other second homes. Can the Minister confirm how much the tax cut for second home owners cost the public purse in total?

[Lord Greenhalgh (Con)]

My understanding is that we have introduced a stamp duty surcharge of some three percentage points on top of the standard rate for those who purchase additional properties. That covers all second home owners, so they are not getting off lightly when they are buying their homes, and the Treasury is doing very well out of that regime.

Gypsies and Travellers

Baroness Blake of Leeds Excerpts

Thursday 4th November 2021 Lords Chamber

[Lord Greenhalgh (Con)]

My Lords, we will continue to encourage all local authorities to access funding for both permanent and temporary sites through the affordable homes programme of some £11.5 billion. I reiterate that it is the responsibility of local planning authorities to make an assessment of need for both permanent and transit sites and to identify sites in their local plan. Of course, these local plans are independently assessed by an inspector.

[Baroness Blake of Leeds (Lab)]

My Lords, earlier this year, reports emerged that Pontins had used a blacklist of common Irish surnames allegedly to attempt to prevent Traveller families staying at its holiday parks. What recent assessment have the Government made of levels of similar discrimination against Gypsies and Travellers? Can the Minister say what steps are being taken to end this?

[Lord Greenhalgh (Con)]

My Lords, we have previously discussed this in the House and it is an absolutely disgraceful example of discrimination. No one should be discriminated against because of their race and ethnicity, and we have invested in a programme of some £150,000 to tackle discrimination. We will continue to challenge companies such as Pontins, and I think the media did a fair job of ensuring that this does not happen again.