Queen’s Speech

Baroness Hayter of Kentish Town Excerpts

Monday 1st June 2015 Lords Chamber

[Baroness Hayter of Kentish Town (Lab)]

My Lords, for the two Bills on which I will lead for the Opposition —on charities and to create a public service ombudsman —I have nothing but praise, albeit we may want to strengthen them just a little. Had the Government’s programme stopped there, I would have had no complaint. However, while respecting the fact that the electorate chose a Conservative Government, there will be some unforeseen circumstances, which we will seek to mitigate. We will in particular seek to protect the rights of others in the way outlined by my noble and learned friend Lord Falconer.

But there are other important issues, such as the extension of the right to buy to housing association tenants. We will examine the rights of this carefully. The housing Bill will force councils to sell their most expensive—in other words, their best—housing when vacant, and to use the proceeds to compensate housing associations for the loss of their stock, as well as to build new affordable homes in the same area. However, where housing and land costs are astronomically high, such as in Kentish Town in Camden, this will accelerate the emptying out of London’s poor from inner London areas which started in the last Parliament—and, incidentally, where sold-off council properties are back on the market at £800,000, or at three-times affordable rents. Kentish Town did not vote Tory on 7 May, but will have to live with the consequences of other people’s choices. Indeed, this Government could seriously damage Camden. The housing Bill could force it to sell a third of its social housing and to undermine its community investment programme of building 1,400 new homes. Land is simply not available there at affordable prices to rebuild unit for unit sold.

The National Housing Federation has said that extending the right to buy to housing association tenants, funded by selling off high-value council homes, will deepen the current housing crisis. We look forward to the maiden speech tomorrow of the noble Lord, Lord Kerslake, on this very issue. Housing associations fear that the proposals will undermine their wider aim: to provide affordable tenancies for the less well-off or low-rent provision for the homeless, as is recognised in the charities and social investment Bill that the Government published last week. It could even undermine therapeutic communities or sheltered accommodation.

It has also been said that the proposals will undermine the ability of housing associations to build affordable homes in the future. A number of issues have been raised with regard to the legality of interfering in this way with the assets of what are after all independent charities. All such criticisms we will address during the passage of the Bill. The last Parliament was bad enough for charities, gagging them with the lobbying Bill while completely failing to deal with corporate lobbying. Now we see the state interfering in charities’ provision, allocation and funding of housing.

Meanwhile, the state is interfering with independent trade unions, forcing them, as did the Government’s predecessors in the 19th and 20th centuries, to change their rules, deliberately so as to undermine Labour Party funding. A similar provision in the 1927 trade union Act resulted in a fall in the number of political levy payers from 3.5 million to 2 million and a drop in party income of 20%. The equivalent this time could be much more. It is what the Independent reported as a “shamelessly partisan” attack on Labour. This is simply to deal with payments of 5p or 10p a week by trade unionists. For that, we will have to set up the operation for them to be able to opt in. All this will happen while companies will be free to make large political donations without any reference to their employees, their customers or their shareholders. We have seen how much the Tories benefit from such largesse. In the last Parliament, they raised £108 million, with £28 million from hedge funds alone. David Cameron used to say, and I approved, that he wanted to end the “big donor culture”. But with this gracious Speech, we have seen the truth: we will continue to allow big donors to his party but clamp down on those tiny weekly contributions made by millions of trade unions to our party.

As my noble friend Lord Dubs said, the votes for life Bill will end the 15-year rule, allowing millions of Britons overseas, including tax exiles, to vote in UK elections, but perhaps the Tories’ real aim is to allow those people to donate to UK political parties, meaning more rich pickings from non-taxpaying expats.

There is also in the gracious Speech the threat to the independence of the BBC, which stands for free speech and professional, unafraid journalism here and across the world, by the possible undermining of its funding model or finances.

This sounds like an illiberal, politically motivated Government interfering with the legitimate activities of unions, charities and housing associations while extending potential Tory funding from expats. It is not a one-nation gracious Speech; it is not a programme based on rights, on fairness, on equality or on any sort of social justice. It is partisan and mean-minded. It cuts billions from benefits to needy families while ensuring that the Tories’ own income is secure. This is not the gracious Speech that we anticipated.