(1 day, 12 hours ago)
Lords ChamberMy Lords, I remind the Committee of my recorded register of interests: I am a non-executive director and a board member of the Water Retail Company. I will speak to my Amendment 79 and respond to the amendments on connections reform.
Amendment 79 calls on the Government to insert a new clause into the Planning and Infrastructure Bill under the heading of “increasing grid capacity” and proposes that, within three months of the Bill becoming law, the Secretary of State should publish a plan to achieve two simple yet crucial objectives: to reduce the cost and the time taken for new connections to the electrical transmission or distribution system; and to permit the development of local energy grids. The need for this amendment should be beyond reasonable doubt. I am concerned that, if these reforms are not made, we will not be capable of meeting the Government’s stated objective, which we share, to achieve clean power by 2030—a key step on our overall climate change and energy targets.
To decarbonise, we must electrify. Electricity demand is set to rise by at least 11% before 2030 and at least double by 2050. How we heat our homes, how we travel and how we power our industry must all be by electricity, which demands wiring everything up and ensuring that both low-voltage and high-voltage networks are fit for purpose. I would argue that this is one of the biggest societal energy changes since the Industrial Revolution and is only some five years away, which is merely the blink of an eye in planning terms. At present, the delay in getting grid connections is one of the greatest obstacles to decarbonisation, to developing new housing and industry, and to increasing our economic output as a country. Our businesses and communities are waiting seven to 10 years—even longer in some cases—before they can secure the right to feed clean energy into the system or to make power connections. Developers in grid hotspots—or “not spots”, potentially—are reporting connection waits of several years as being typical.
We need to be prepared and to get this stuff done. My amendment is designed to help do that. If we are going to be a leader in renewable energy and to get all the renewable energy in place, the grid connection system needs to be reformed. I very much recognise the Government’s recent reforms to try to update the grid connection system. In April 2025, working alongside Ofgem and the National Energy System Operator—NESO—the Government announced reforms to prioritise clean energy and infrastructure for grid access, aiming to eliminate so-called zombie or speculative projects and to fast-track the shovel-ready schemes that are set to go. The new target model option, TMO4+, introduces stricter queue management, milestone targets and progressive penalties for lagging projects, as well as prioritising the projects that are crucial for clean power and our overall economic growth.
These reforms are intended to help deliver that 2030 clean power plan, unlocking up to £15 billion in investment and supporting a more responsive and modern grid system. These are all steps in the right direction, and we definitely welcome how the Government have made progress since they came to power, but I feel that more needs to be done, hence the amendment that I put forward here. I worry that, if we do not do more, we will simply not be ready and will not hit these targets.
The second element of my amendment touches on local energy grids. Local energy grids are still in their infancy, but my party very much supports them. They empower our local communities and help them to benefit from the clean power revolution that is coming. Their efforts are quiet, modest and determined, and I want this Government to do more to support them. I believe they are essential in galvanising public support and helping the Government to take communities with them on this journey. Alongside many others across both Houses of Parliament, I fought to get community energy into the Great British Energy Act and I am delighted to have done that.
However, more help is needed to get this stuff over the line. Local energy grids are important and will benefit the country. They help to make the grid more secure and resilient. They reduce the need for transmission and the loss of transmission time, and they reduce the need to invest in the high-voltage grid overall. They take our communities with us and bring support. We all need that: this Government need that and we need that. Our communities should benefit from the revolution that is taking place. My amendment is designed to help and to support the Government. My hope is that the Government can support this amendment, or it would be appreciated if they brought forward an amendment on Report.
I turn briefly to the other amendments in this group. I recognise that the Minister has put forward a drafting amendment and we are fine with that. On Amendments 73 to 76 in the name of the noble Lord, Lord Lansley, we recognise what they are about and welcome the questions that the noble Lord raises. These are important issues, which we should discuss in Committee, about the replication of policy and policy statements, and how those systems are set up and will work in practice.
However, as we go into this rapid period of change, my worry is that, if his amendments are passed, we could end up with a system that is centralised more in Westminster, is less responsive to the changes that need to happen at pace and at scale and is not as well connected to the communities and those on the ground facing change. Those would be my general concerns with those amendments, if agreed, but I look forward to the Minister’s response and I think it is important that those amendments were raised. I look forward to further debate on this group.
My Lords, connections reform is very important if we are to give the grid capacity. The noble Earl, Lord Russell, is right in wanting to speed things up and to ensure that these connections are not too costly. That matters whether you want more renewable energy in the mix or would prefer—as I would—to continue with a mixed supply, including better and continued use of North Sea oil and gas.
However, the fact is that the grid is not resilient and everything is too slow. We have too many layers of decision-making, too much strategising, too many bureaucratic rules and, therefore, not enough speed and determination. I know that that is behind the Government’s planning reforms. I fear that my noble friend Lord Lansley’s amendments could also slow things down, but he may be able to reassure me on that. I look forward to the Minister’s response on how we can ensure that these changes will speed things up and get us the reforms that we need, if the economy and the energy economy are to work well in the months and years ahead.
My Lords, I agree with my noble friend Lord Lansley’s approach of being specific about what it is that developers and investors should be looking at instead of what the latest designated strategy might be. This approach also makes sure that we do not end up with more reasons for judicial review, when it is left to judges to determine what is the strategy or where there is nuance and so on. My noble friend made points about making that direct link to understanding a moment in time and that the measure has been through the parliamentary aspect of the process, initiated by the Government of course. That simplicity will in fact help the Government in achieving a lot of the aims which they seek.
My Lords, with the solar energy that is reaching me at the moment, it is actually quite hard to see whether there is anybody out there, but I will take it for granted that there is and that they are all listening with rapt attention.
I apologise that I was unable to participate in earlier debates on the Bill, but I have been following it closely. I should declare that my family farm has some of what the noble Baroness, Lady Coffey, referred to as “hideous”—or was it “horrendous”?—pylons and poles coming across it. My grandfather actually welcomed these as signs of the inevitable march of progress, but, even then, and certainly now, not everybody is quite as enthusiastic as he was.
While I see and support the logic of Amendment 77, it makes no provision overtly for wayleaves or compensation for those whose homes and businesses are affected by any additional poles et cetera. I hope that any amendment along these lines would accommodate such arrangements, as is the case with current power lines. Will the Minister, or perhaps the noble Earl himself, confirm that that is the intention?
My Lords, to pick up the point of the noble Lord, I remember my uncle getting pylons next to his house and how the compensation saved the day for his small business.
My own view is that it is good to have permitted development rights for minor changes, particularly if energy providers are calling for them. It makes sense to use this Bill to allow permitted development. My noble friend Lord Lucas said that it was hugely important, and I think it is hugely important to speed things up. As we have already heard, it is a surprise that some of these things require planning permission, and there is a lot of potluck as to whether you can get planning permission quickly in any particular area.
I just believe that we need to get things moving so I am not sure why the changes need to be in a regulation, as proposed in Amendment 77 from the noble Earl, Lord Russell. Can the Government not work out what can be easily excluded from planning control and put it in the Bill? That is how we used to do things in the Bills I remember presiding over in the 20th century when I was a civil servant. Is there anything that we can do to get rid of these things, rather than wait for further regulations and consultations, if it is straightforward?
I agree with my noble friend Lady Coffey that we should be careful not to allow multiple wind turbines through a back door. Clearly, the detail of this needs to be looked at; it has to be genuinely smallish things. I am less sure about permitted development rights for floating solar simply because I know so little about it; if we were to proceed with that, it should be in regulations. I am always asking the Minister how we can speed this process up. Permitted development rights here, and perhaps elsewhere in the Bill, can play a part.
My Lords, Amendment 77 in the name of the noble Earl, Lord Russell, seeks to require the Secretary of State to designate certain electricity network upgrade works as permitted developments within 12 months of the passing of this Act. I refer the Committee to my register of interests, including as a developer of solar and wind energy generation infrastructure.
The amendment is detailed and specific, covering a range of necessary and often routine upgrades to our distribution network. These upgrades are not exceptional; rather, they are part and parcel of the essential modernisation of our grid. As demand for electricity grows, driven by electric vehicles, heat pumps, an increasing shift to electrified systems and the construction of new data centres, so, too, does the need for a distribution network that can meet that demand safely and efficiently.
The concerns raised by the noble Earl in bringing forward this amendment have merit. Local electricity distribution is hampered by regulatory delays, planning burdens and procedural hurdles, which can slow down or increase the cost of what are in many cases necessary infrastructure improvements. We understand the motivation to streamline these processes and provide industry with greater certainty. However, there are important questions around local engagement, visual impact and environmental considerations, which would need to be worked through. Permitted development rights by their very nature bypass certain planning safeguards, and we must take care not to undermine public confidence in the system by extending them too broadly or too quickly. I ask the Minister whether there are other ways of simplifying the decision-making on such upgrades.
Amendment 94E in the name of my noble friend Lady Coffey would require the Secretary of State to make regulations to extend permitted development rights to include the installation of floating solar panels on reservoirs. At a time when we are seeking every opportunity to expand renewable energy without placing additional pressure on land, utilising existing bodies of water in this way may present a pragmatic and low-impact solution. My noble friend makes an important and timely point about the potential of underused spaces to contribute to our energy goals. I hope that the Government will look closely at how permitted development rights can help facilitate the responsible deployment of floating solar technology.
In a similar vein, Amendment 185B in the name of my noble friend Lord Lucas seeks to expand permitted development rights for small-scale onshore wind turbines up to a height of 30 metres. This, too, is a proposal worthy of consideration. Enabling more local generation of renewable energy, particularly where there is community support, can play a valuable role in decarbonising the grid and improving energy security.
I look to the Minister to provide clarity on the Government’s current thinking in this area and to address the important questions raised by the noble Earl, Lord Russell, and my noble friends Lady Coffey and Lord Lucas. Specifically, I hope that he can reassure the Committee that the Government recognise the need for timely electricity network upgrades and are actively considering how the planning framework can support that aim while balancing the interests of local communities and the environment.
My Lords, the rules that determine whether a turbine can be classed as permitted development and not require a full planning application have not been updated for over a decade. With advances in technology and increased demand for small-scale generation, there may be opportunities to update these rules. Therefore, I hope the noble Lord will be pleased to hear that the Government committed in the onshore wind strategy to publish a consultation this year on whether existing permitted development rights are fit for purpose and could support other forms of small-scale onshore wind deployment. I believe it is only right that we conduct a full consultation to gather views, insights and evidence on potential proposals, and ensure that we have considered the breadth of the benefits and impacts.
I hope the noble Lord is content with this response. Before I ask him to withdraw his amendment, I will respond to the very important point alluded to by the noble Lord, Lord Teverson. The Government recognise the urgency of reform and have already taken action. We have published the 8 July consultation; we will gather views on proposals and we are committed to bold and effective reform, but it is essential that we understand the full impact of these changes on all those involved. We will move at pace to bring forward any necessary legislation once the consultation analysis is complete. I kindly ask the noble Lord to withdraw his amendment.
Coming back to Amendment 77, I mention one word: growth. We are trying, with cross-party effort, to reform the planning system and speed it up. I hear some good ideas from the noble Earl, Lord Russell, my noble friend Lord Lucas and others, yet we are having another consultation and another quango—doing something “in due course”, at some time, somewhere else. This is the flagship planning Bill, and I want the Minister to consider whether there is more we can do in it to set a better tone on speed and growth, and to get local authorities to move forward on the things which, as many agree, are bureaucratic and unnecessary.
Following on from the noble Baroness, Lady Neville-Rolfe, can the Minister give us some idea of a timetable for this, given that there is total unanimity that we are not in a sensible position and we need growth and to move this whole proposition forward? The consultation is about to end. Will we get this fixed by the end of the year, for instance? Could we be revolutionary and have something ready for Report? I am interested to hear from the Minister.
(1 day, 12 hours ago)
Lords ChamberI think that is right. The HSE, on its own website, refers to the fact that it cannot comment on every application and, in effect, needs to be proactively contacted only if there is considered to be a major risk.
I am also conscious that the River Test is considered by my honourable friend Caroline Nokes to be under threat. For people who are interested in these things, I commend the speech of my right honourable friend Sir Alec Shelbrooke, who talked about dendrites. It was a very knowledgeable, well-researched speech about fire risk, including thermal runaway and the like.
Coming back to the fundamental proposal of my noble friend Lord Forsyth, he specifically asked me to talk about safety. There is a concern about overdevelopment and the loss of food for agricultural production. We will keep coming back to this on this side of the House, recognising the importance of food security alongside the other elements of national security.
On the amendment that I have tabled, perhaps I should declare an interest as this is about a subject that I have referred to a few times before: energy substations. Again, I am worried. There is an element here of thinking about where we do energy generation or other aspects of interconnection. Frankly, if the Government think the only way they can get these things done is by ripping apart environmental protection law and reducing food production land, they should not connect at those areas that already have these environmental designations or are key producers of food in this country.
My amendment refers specifically to 1, 2 or 3. I am conscious that the best and most versatile land is traditionally grades 1, 2 and 3a. However, Defra, through Natural England, does not publish where grades 3a and 3b are, because apparently that is too difficult to do, as it requires individual local site surveys on determining whether a particular field is grade 3a or 3b, so for comprehensiveness I have put in grades 1, 2 and 3.
However, as my noble friend Lord Fuller has pointed out, there is an element here about the fact that, frankly, a lot of this stuff was—in effect, with a light touch—reconsidered only in 2010. Fundamental parts of our land have not been assessed in terms of their contribution towards food production or food security for probably the best part of 40 to 50 years. As a consequence, recognising the targets set by the Government and the challenges that we face, I am conscious of the land use framework. Admittedly, I did a draft of that nearly three years ago, and I am sure everyone is frustrated that we still have not seen it yet. One of the challenges is this competing element of what we do with the land that we have.
Let us be straightforward about this: once agricultural land is gone, it is gone for good. I am not blaming farmers or landowners, who, candidly, the policies of the last 12 months have given even more reason to get a secured income on the basis of the value or use of their land. One of the foibles, in a way, of doing things such as leasing out land for solar is that it does not adjust in terms of the agricultural elements of inheritance tax. However, when farmers can get a guaranteed income for a proportion of their land, while other things are so uncertain, I do not blame them for wanting to make that choice.
My honourable friends—apologies, I am still earning about this place; I should have said my noble friends—have eloquently put some of the issues around solar. There definitely has to be a place for solar across our country, but one final point that I want to make on battery energy systems is that we really need to target where they are going to be. There is no point in having batteries in parts of the country that are nowhere near the grid or near where most of the energy is going to be used. That is why I have proposed the amendments I have today.
My Lords, I simply want to agree with Amendment 89 in the name of my noble friend Lady Hodgson of Abinger. I prefer it to the amendments from my noble friends Lord Fuller, Lord Forsyth and Lady Coffey, although they all have merit. We have heard from my noble friend Lady Coffey that we may already have enough solar farms under consent already, although I am not sure what the Minister thinks of that.
As the House of Lords, we can take a longer-term view and, unfashionable though it may be, I believe we should protect the highest-quality agricultural land for farming and food and prohibit solar farms on that land. It is of course less costly for the developers, who want flat sites, but that is not a good reason to sacrifice the best land needed for food security.
Government is about balance. Our population is growing. We live in a dangerous world that could one day jeopardise imports of food, and the most productive land should be devoted to growing crops.
Can the Minister not deal with the problem of patches of best-quality land on a site with a classic de minimis rule of, say, 5%? That would still allow us to protect the best land without needless delay and Defra—or the new framework that the Minister mentioned—could easily provide the data for that purpose.
I am sure that if the noble Baroness wished to put that forward in the land use framework it would be considered. I always worry about de minimis rules because there will always be the exception to the rule that goes slightly over it, and then you end up with a big problem sorting that out. However, if she wishes to feed that into Defra’s part of the land use framework consultation, I am sure it will take account of it.
(1 month, 2 weeks ago)
Lords ChamberMy Lords, I declare my interest as a chief engineer working for AtkinsRéalis.
I support what the noble Baroness, Lady Pinnock, and the noble Lord, Lord Hunt, have set out around the purposes of the Bill, and in particular what the noble Lord, Lord Hunt, said about putting growth front and centre.
It is important to set out a bit of broader context here, because this goes all the way back to 2008. In the decades before 2008, we had that consistent 2.3% labour productivity growth over many years, but since then, that productivity growth has fallen off a cliff, with only around 0.5% per annum growth since then. That then feeds through into flat real wages. Again, there was a 2% growth in real wages for decades, but they have been flat since 2008, which has led to all those problems with debt, tax take, the NHS, and even the political problems—the frustrations of those who have been left behind.
Of course, growth is a complex picture, as are the reasons behind that slowdown in growth, but our inability to build enough productive infrastructure to invest in that is very high up on that list, whether that is new infrastructure to bring down the price of electricity; new transport infrastructure, with all the agglomeration benefits that come with that; or new digital infrastructure.
We can contrast what is going on elsewhere in the world—to expand on what the noble Lord, Lord Hunt, said—with electricity. China has gone from 6,000 to 10,000 terawatt hours of electricity generation in the past 10 years, whereas our electricity generation has been flat or even declining slightly, at only around 300 terawatt hours. That of course has many other implications: the cost of our electricity, which is around four times that of the United States; the knock-on effects of that to inward investment; and circling back to growth as well. Even if we look at the Government’s targets, such as the 2030 target for clean electricity generation, the amount of electricity infrastructure that we need to build to hit that target is far below what we need to hit to get to 2030, and of course that will have effects on net zero and on energy security as well.
The planning system is at the heart of this, with the key issues of judicial review and environmental regulation, which are being addressed to some extent in the Bill. But, circling back to growth, that needs to be front and centre. It is vital that the Bill delivers for critical infrastructure as well as houses, so that purpose clause which sets that out front and centre in the Bill is vital, with all the benefits it will bring for net zero, the environment, and energy security, and resolving those broader issues of net debt, government spending and quality of life.
My Lords, I will speak to Amendment 1 in the name of the noble Baroness, Lady Pinnock, and I thank her for explaining the basis of her approach so clearly. I was not able to speak at Second Reading but I have an interest in planning, going back to the 1980s, both in government and in business, and one of my most rewarding experiences was as chair of the Built Environment Committee before I joined the Front Bench.
I am not sure it is strictly relevant, but I am the joint owner with my brother and sister of a cottage and a couple of fields in agricultural use in an AONB in Wiltshire, this is declared in the register.
(1 month, 2 weeks ago)
Lords ChamberMy Lords, I thank all noble Lords for their engagement both at Second Reading and at our subsequent drop-in sessions and meetings. I thank the noble Baroness, Lady Pinnock, for Amendment 1, and my noble friend Lord Hunt and the noble Baroness, Lady Scott of Bybrook, for Amendments 2 to 7, making minor changes to the amendment. As these amendments all endeavour to insert a purpose clause at the start of the Bill, I will consider them together. I just add, following the debate we had earlier today, that I have some sympathy with those who do not want to have purpose clauses as the first amendment—we had 63 speakers at Second Reading, and we have covered some of the same ground—but I understand the noble Baroness’s wish to have one. I will keep my response to Amendments 1 to 7 short, as the purpose and aims of the Bill were debated very fully at Second Reading.
The Government have been consistently clear about the purpose and aims of this Bill, and I am very pleased that the noble Baroness and the noble Lord have identified many of these in their amendments. As outlined at Second Reading and throughout its passage, the Bill is a key component of the Government’s mission and plan for change. It is intended to unblock the planning system and secure the infrastructure we need in this country. We have already delivered significant changes to our planning system through a revised pro-growth National Planning Policy Framework. Combined with these changes, the Bill will help us reach our ambitious plan for change milestones of building 1.5 million safe, decent and affordable homes in England and fast-tracking planning decisions on 150 major economic infrastructure projects in this Parliament.
The Bill will do this by delivering five key objectives. The first is a faster and more certain consenting process for nationally significant infrastructure projects, the focus of our debate today. My noble friend Lord Hunt is quite right to point to the importance of this to achieving growth. He spoke about grid connections. The fact that it can now take longer to get a grid connection than it did to build the whole A1 is a crazy factor of the way planning has blocked some of the growth we need to see. He spoke about the 360,000 pages of planning documents for the Lower Thames Crossing. I can tell him that when we embarked on the major redevelopment of Stevenage town centre, we had a great lorryload of documents turn up for the planning process, so I am very sympathetic to what he said.
The second aim is for a more strategic approach to nature recovery that will unlock a win-win for the economy and for nature. We are clear that this will support nature recovery, and I hope to be able to say a little more about it later this afternoon.
The third aim is to improve certainty and decision-making in the planning system, ensuring that local communities and politicians play their role while maximising the expertise of professional planners. The noble Baroness, Lady Pinnock, referred to steamrolling; this is not steamrolling but engaging communities at the planning stage, when they can have the most influence in the planning process. Local communities and local people can do far more if they influence the plan at local plan stage than when trying to object to a particular application that is in accordance with that local plan.
The fourth aim is unlocking land and securing public value for large-scale investment, and the fifth is introducing effective new mechanisms for cross-boundary strategy planning. That is an important dimension that sits alongside our English Devolution and Community Empowerment Bill, which is currently in the other place.
The Bill will also support delivery of the Government’s clean power 2030 target, ensuring clean energy projects can be built as quickly as possible, including through measures that will increase community acceptability, such as a bill discount scheme for those living closest to new electricity transmission infrastructure.
It is in the interest of our country to make our planning system better to ensure prosperity and sustained economic growth. Many noble Lords have spoken about that already in this debate, and I have no doubt that the Bill will help us to achieve this, along with the other package of measures that we have introduced. I am sure these objectives that I have outlined align with the purpose in the noble Baroness’s amendment and lie at the heart of all our current and future decision-making. I do not believe, therefore, that it is necessary to accept the amendment, as the measures within the Bill speak for themselves.
I will cover some of the points made by noble Lords earlier in the debate. The noble Baroness, Lady Scott, spoke about our ambitious target of 1.5 million safe, secure and affordable homes. This is a manifesto pledge, a pledge in our Plan for Change and a firm commitment from this Government.
The noble Baroness, Lady McIntosh, mentioned councils being able to determine the need for social homes. I was keen to make this change in the National Planning Policy Framework to encourage councils to identify the number of social homes that they need, as distinguished from affordable homes—the definition of affordable homes is much wider—so that was a good step forward. Our policy on brownfield is that it must be brownfield first. I know she has a number of points to make around flooding and I am sure that we will discuss that later in the Bill’s progress. Her point on food production is well made; there is a Defra land use framework which we are hoping will be published any day now, and I think she will find there is some information in that on food production.
The noble Lord, Lord Mawson, referred to place-making. As someone with a new-town background, I agree with the points he made about the importance of the holistic nature of planning and how that makes for good planning.
The noble Lord, Lord Banner, spoke about an overall stated purpose of planning, and the noble Lord, Lord Fuller, raised this with me yesterday. I am sure we will consider all of that further during the course of the Bill.
The noble Lord, Lord Ravensdale, rightly pointed to the link between infrastructure delivery and growth, and he makes a very important point. The purpose of the Bill is to make that connection much clearer and to make sure that the planning legislation supports the growth mission.
The noble Baroness, Lady Neville-Rolfe, spoke about some of the things that can slow down planning and some of the things that we hope will speed up planning. We are introducing a whole package here, from the National Planning Policy Framework to the national development management policies recommended by the previous Government and the devolution package. I hope that, taken together, all those things will speed up the process and encourage the growth that we all want to see.
The noble Lord, Lord Porter, spoke about the functions of the Bill. He is not in his place, but he raised the same point that the noble Lord, Lord Fuller, raised with me about the overall objectives of planning, and the noble Lord, Lord Banner, mentioned this as well. I will give that further thought.
The noble Baroness, Lady Coffey, spoke about completion notices. There is a process, as she rightly identified, for completion notices. It might be helpful if I get some more information for her about how those are being used. There is definitely a power for local government to do that already. I hope that the combination of this Bill and other measures we have taken for local authorities to have the planning powers and the funding they need to move this agenda forward will mean that we see what we all want to see from this.
My noble friend Lord Hunt referred to the OBR report and the potential growth that can be unlocked by this Bill. I am sure that we will continue to debate the aims and impacts of the Bill as we make our way through the amendments tabled for debate. In the meantime, I kindly ask noble Lords to withdraw their amendments.
Before the Minister sits down, can I press her on the issue of delays? Saying that the whole package is going to be better and improve things, and therefore growth will come—which we all want—is an ambitious statement, but has any work been done on what the changes will be and what differences they will make? I am on her side and want to try to speed things up, but there seem to be quite a lot of things that are going to slow them down, particularly if we agree to the wrong sort of amendments. Has any academic work been done on this that I could reference? I am not yet clear that we are going to get the speed that we need in the system, particularly on things like the grid.
I asked the same questions myself, because I suspected I was going to be asked them as part of the debate on this Bill. I asked what work had been done, prior to the Bill, on consulting more widely with the sector, the academics involved in this area and a number of other bodies. I would read it all out, but it is a nearly six-page list of all the work that was done prior to the Bill being drafted. I am happy to circulate it to noble Lords, if that would be helpful.
My Lords, as it is Committee stage, I have some simple questions about pre-application with a view to trying to move this important conversation forward. First, are the pre-application arrangements different if a use is already in the local plan? On the coal mine example and water extraction, those should be in the local plan. We have a big problem, because more than half of local plans are not up to date, which was certainly a big concern of mine when I was sitting on the committee.
Secondly, presumably, a developer can do a voluntary pre-application process, or is that not practical? A lot of my experience was in large retail developments. We did a lot of this sort of stuff because we wanted to get local consent. It is a question of what you can do which is voluntary and what is required.
Thirdly, what are the biggest delay factors in the pre-application process? Is it transport objections, heritage, environment features—such as nutrient neutrality or bats—or lawyers going around in circles? Have the Government had a look at what the problem is?
Fourthly, is there an alternative route where you have a much shorter process, perhaps with a deadline and only for the big schemes and not for a small house? This is an important area in local communities, but we want to get the delays down.
My Lords, I support my noble friend Lady Pinnock’s amendment. Pre-application consultation, as she correctly said, not only gives communities a chance to shape proposals but can speed up things further down the line. It is not necessarily a delaying factor.
The noble Baroness, Lady Neville-Rolfe, just raised an interesting issue in that we do not know what the delaying factor is. Is it the statutory consultees, far more than the communities, for example, that are part of the delaying factor? Given the scale of the Government’s ambition, quite rightly, to develop housing and the accompanying infrastructure, and to make master plans to do that, it is much better to take the community along with you. If the community already feels left behind because it is cut out at the very first stage, which is what the Bill does, then however many nice words may be said later by the development corporations or so on, that is not really going to cut much ice. Therefore, the amendments tabled by my noble friend are particularly important.
I also really do not like the fact that, even if communities and the public have made some responses, there is no requirement for the people doing the development to take that into account. Again, that is a very disempowering issue, which undermines the whole democratic basis of our planning system.
(2 months ago)
Lords ChamberMy Lords, I added my name to this amendment and spoke during previous Bill stages. I declare my interests as a private landlord, in my own right and also as a trustee, and as having a relative who purchased the flat above theirs when a carer was needed, which was going to be the case in due course. That planning is now, of course, in some disarray: they wonder whether they must evict the present tenant and bring forward the employment of a carer, even though that is not yet necessary.
Since the discussion in Committee and since speaking with the Minister, whom I thank for her time, I have spoken to various care organisations, which are all supportive of the amendment. They made some recommendations that lie behind the changes in language since the amendment was tabled in Committee. The care organisations have taught me that there is a very wide way in which carers are used, both in the regulated sector and outside it, on which many people rely for vital tasks, health and personal care. Absent the voluntary sector, a lot more costs would fall on health and social services.
However, it is not always easy to find a family member who can do this. Families are much smaller nowadays—my husband and I were adding up what has happened in our own family and, if we chase it back, 14 at our age level will end up being replaced by far fewer at the grandchild level. With those kinds of circumstances, with many more people working, women not wanting to stay at home and families spreading much further from where they grew up and from where parents or others needing care within the family might be, the care organisations say that the reliance is on what they term “loved ones”. It is a very wide phrase; quite often, it means friends and neighbours whom they have lived close to who have helped one another during their lives. When one of them falls ill or becomes disabled or, in many sad cases, is a survivor of cancer who has been left with life-changing circumstances, they become the carer who helps them. As their condition deteriorates, it may be necessary for the carer to be nearby.
The care organisations that I have spoken to, and which support the amendment, are the Homecare Association, Care England, the National Care Forum, the National Care Association and Carers UK. I thank them for their time and recommendations.
We are quite aware that the Minister does not want to create loopholes—that was the main feature of the discussion that we had. For that purpose, we have provided that regulations can be made to amend the definition of “carer”. In many ways, I would prefer it if we did not have that there, because the Minister could make regulations that took away anything useful, but I am hoping that it would be done only in the light of experience if one found that the term was being somehow abused.
In considering carers, we also need to look at care patterns. Many people who need serious care have several carers, who have to operate in shift systems, whether that be daily, weekly or monthly. Sometimes, the carer may come from overseas and stay for six weeks, and then they go back and somebody else comes in, so there is a rolling pattern. It will be very difficult if they cannot necessarily be conveniently located.
So I ask the Minister to think again. Yes, there may not be a great number of people who would be helped by the amendment in the way that a huge number of renters will be helped by the Bill, but in a civil society being a minority has never been a ground for discrimination. Therefore, I ask the Minister to think about this and to understand that, like her, we do not want cheaters to abuse this; we want people who are in need of this service to be able to avail themselves of properties that, often, they have bought to plan for their care—and, indeed, in order not to be a burden on the state. Should they not be allowed the peace of mind that they will be able to fulfil those plans?
My Lords, I also support Amendment 21 in the name of the noble Lord, Lord de Clifford, and the noble Baroness, Lady Bowles, to which I have added my name. I am particularly grateful for the warm words of my noble friend Lord Jamieson and for the support of the various carers organisations which do such an important job in our society.
The Bill will allow a landlord to take possession of a property for a family reason. Our small extension would allow a nearby property to be taken back in hand if it were needed to house a carer. In the meantime, it would be available, for example, as a dwelling for a struggling local couple or an individual seeking a home.
With ever-growing numbers of the aged and disabled, with the move to smaller homes and smaller families, and with a scarcity of care homes and hospices, the provision for short-term housing of professional carers, often changing at short notice, will become more and more important in coping with our ageing population. This is particularly true in rural areas, which are being so battered by other changes the Government have felt it necessary to make.
I declare an interest, recorded in the register, as the owner of such a cottage bought specifically for a carer and generally let to a local on a shorthold tenancy. Such tenancies have expanded the rental market hugely in this country and will be completely swept away by the Bill. So, we need to do what we can together in this House to moderate its perverse consequences—notably in this case to make things better for carers. Fortunately, neither my husband nor I yet need a carer, but we may need one eventually, and my concern, like that of the noble Lord, Lord de Clifford, is a general one. I can guarantee that I am not alone.
I have no idea how the Government will find the 1 million more rented homes Savills believes we need by 2031 unless they make some sensible technical changes to the Bill, which is being constructively debated by knowledgeable experts here in this House. Our Amendment 21 falls into that category. I hope others will join us in the Lobby and in calling on the Government to think again on this issue.
My Lords, I did not intend to speak to this amendment but, since I am, I declare that I do not rent out any residential property, but my children are tenants and rent out property in their own right. There are two sources of potential misery here: one is turning out a tenant, the other is being unable to provide care for a family member. I know how I would feel if I was in a situation where I had to deny a family member professional care despite owning a property that could accommodate a carer. I am interested to hear how the Minister feels about this, what she would do in those circumstances, and what other Members of this House would do if the noble Lord, Lord de Clifford, calls a vote on this matter.
(4 months, 1 week ago)
Lords ChamberMy Lords, I rise to support Amendment 64, in the names of the noble Lord, Lord de Clifford, and the noble Baroness, Lady Bowles, to which I have added my name. They have both spoken with immense good sense and from knowledgeable positions. I am sorry that I was not present at Second Reading, but I believe that it is essential that the Bill allows a landlord to seek possession of a property where it is needed to house a carer or carers for the landlord or his or her family.
I will illustrate the problem with a case study of my own, and in so doing declare an interest. My husband and I own a house close to our own in a small Wiltshire village which we bought for use by a carer as and when we reach that stage. We usually let it out, in the meantime, to local people, and it appears in my register of interests, to which I refer the House. With the demise of shorthold tenancies, we face the prospect of not being able to get it back once let again. Moreover, even as and when we do offer it to a carer, if the appointment does not work out, we lose the property.
We have discussed in other debates the importance of carers, the problem of supply of beds in old people’s homes and support for the elderly. This is a particular problem in rural areas like ours, making it all the more important to encourage independent provision. I urge the Government to think again on this and return on Report with a suitable amendment.
I am glad that the Government more generally are increasingly realising the bad effect of too much regulation on growth and competitiveness, which is well documented now in academic literature. Coming to this Bill, and indeed this group, cold from my common-sense ex-business perspective, I felt a chill down my spine. Most landlords, in my experience, are reasonable, but there are several well-intentioned amendments before us today seeking to tighten regulation and add further detail and impractical conditions. These could have a profoundly perverse effect and put more pressure on the overworked courts. For example, the amendment on discretion would certainly increase their workload, and, in practice, these would further reduce the supply of rented property.
We heard this week at Questions that this had collapsed as a result of this Bill. An overheated market, in the words of the noble Baroness, Lady Jones of Moulsecoomb, is thus being fired up further. This is what we need to work on together to reverse and keep good landlords in the sector, as the noble Lord, Lord Carter of Haslemere, explained, saying that Savills thinks landlords will need 1 million more rented homes by 2031. That does not now look possible. I just hope that the Government will think again, resist burdensome additions and consider some sensible lightening of the burden of the kind that I and my fellow Peers propose in this amendment. Other examples would those given by the noble Lord, Lord Carter, in Amendment 60 and the noble Lord, Lord Cromwell, in Amendment 142.
My Lords, I refer to my declaration of interests with respect to this Bill, including a large portfolio of residential property in north Norfolk, 93% of which is let out to local people, key workers and direct agricultural workers, with only seven holiday lets and seven lets to family members.
This schedule is on grounds for possession, and some excellent amendments have been put forward, to which I urge the Government to give serious consideration. However, as a generality when talking about grounds for possession, as a landlord, I do not want to lose tenants. I hate voids. As an example, I have 47 tenants who have been my tenants for between 21 and 40 years, and 45 who have been my tenants for between 11 and 20 years. These are people I know. They are my friends, they are in the community, they are contributing to the community and they, of course, live in it. Many noble Lords have spoken about the importance of not losing good landlords, and this Bill, as it is currently written, is very much in danger of creating that reality.
I turn now to Amendment 63 in the name of the noble Lord, Lord Carrington, to which I have added my name. It is essential that we allow a property owner to manage his or her property for change of use to commercial, whether that be retail, office or industry.
Let us assume a farmyard with a cottage that has a sitting tenant. The landowner gets planning permission for a block of offices or retail. Those offices and retail are going to produce a huge kick to the economy, jobs for the builders and groundworkers, and then, once they are occupied, jobs for the people working in them. So it would not be right that a single person or a family living in a cottage could stymie that development. The reality is that a landlord who is sensible—which most landlords are—would have open communication with their tenant, explain what is going to happen and try to offer them a different property. If a tenant refuses to move, that will have a real effect on the economy. This Government—who talk about growth—really need to understand that, by not accepting this amendment, they will very much be stymieing growth.
I will give another example, again I am afraid from my own playbook. It is an example of planning permission—albeit for residential, which does not necessarily refer to this amendment, and on green belt land. We are building 23 houses at the moment. Eight are for private sale, four are for affordable rent, two are for shared ownership with Broadland Housing Association, four are for intermediate rent with Homes for Wells, which is not really a housing association, and five will be retained by us for private rent. If this Bill goes through as it is proposed by the Government, why would I bother? It is really important that the Government listen to all these sensible amendments being proposed and I really hope the Minister will do so.
I do not know whether the noble Lord was present on Tuesday, but we had an extensive discussion about the impact of the Bill. I set out the Government’s assessment that it will not have an unreasonable impact on letting, and that the department will carefully monitor the Bill’s impact going forward.
Before the Minister sits down, would it be possible, before Report, for her to look at the latest situation? On Tuesday, we had an exchange on the negative impact, which woke me up to all this. I think the last thing that either side of the House wants is fewer houses to let; I think the opposite is our general objective.
(8 months, 3 weeks ago)
Lords ChamberWhen authorities do their housing needs assessment, they will have the opportunity to state why they think that the housing numbers they have been given are too high. If one of those reasons is that they have high-grade agricultural land for food production then they can put that forward as part of their mitigation for having some reduction in the housing numbers. The process is in place to allow authorities to do that; in the same way as would be done for large areas of national landscape in an area, they will be able to put that forward as a mitigation.
My Lords, the Minister helpfully said at Question Time that she would be looking at blockages to housing development. Today, she has emphasised that the proposals we are discussing are out for consultation. As part of that, will she examine whether judicial review is overused in planning cases? This can cause delay and increases local authority costs, and other costs, to almost the sole benefit of the legal profession involved in the judicial review.
I thank the noble Baroness for her question. I am not a lawyer, so I do not want to get involved in discussions about the merits of judicial review. People need to have some recourse to law at some stage. I will take her question back, because she makes a very good point. If she wants to put in a submission as a response to the working paper, I would be very pleased to consider it.
(3 years, 4 months ago)
Lords ChamberMy Lords, I apologise to the House for missing the first two minutes of my noble friend’s magnum opus; the last business went slightly faster than I had anticipated. I declare a personal interest as a leaseholder in a block of flats that may contain some non-cladding works that may require remedial treatment.
I have to praise my noble friend the Minister yet again for the tremendous changes that have been made to the Bill since it came from the other place. I also congratulate my right honourable friend Michael Gove on forcing all the big building companies to sign up, including bringing the Galliard Homes horse kicking and neighing to the water, although he will need to ensure that it and the other companies actually drink the water—they will throw millions at lawyers to weasel out of what they have signed up to.
I am told that the owner of Galliard Homes, Stephen Conway, has accused Michael Gove of acting like Al Capone and the mafia. My respect for young Gove increases by the minute. Conway had an estimated worth of £270 million in 2015; imagine what he is worth now. It seems to me that the owners of the big building companies have made their billions by being a bit more ruthless mafiosi than Michael Gove ever was. However, that is for another day.
Despite the excellent progress on the Bill, there are still some gaps. I regret that we do not have anything specific in the Bill protecting enfranchised leaseholders. All Governments have encouraged leaseholders to buy out the freehold. Those who have done so are still exactly the same as other leaseholders who have not, and they should get the same protection. I welcome the consultation but I hope it is speedy, and I hope that, if legislation is necessary or this can be done by regulation, that is brought in as quickly as possible.
I acknowledge that the Government have increased the number of properties qualified under buy to let, but in my opinion they have not gone far enough. As a small buy-to-let owner said to me, why does the Bill support with cost-capping a billionaire oligarch non-dom with two buy-to-let leasehold flats in Mayfair, valued at millions, yet leave completely exposed a pensioner buy-to-let leaseholder with a small portfolio of just four flats? These people are not big landlords. Although nothing can be done in this Bill now, I hope something can be done in future.
Nor am I happy that we are planning to reject buildings under 11 metres. They may not be as big a risk but they are unsellable. When an estate agent or lawyer tells prospective buyers that the flat they have looked at has some dangerous cladding—but not to worry because you will probably get out in time if it burns down—I do not think that they will find many buyers. These flats are simply unsellable.
Finally, I disagree with the removal of “zero”, and like the Opposition’s amendment of £250. I do not accept that the government caps set a proportionate balance, as was said in the other place by my right honourable friend Stuart Andrew MP, who was also an excellent Deputy Chief Whip in his time. As Michael Gove said, no leaseholders should pay a penny for any remediation works. We heard impeccable legal advice in this House from the noble Lord, Lord Marks, and a former Supreme Court Justice, the noble and learned Lord, Lord Hope of Craighead, saying that making leaseholders pay in order to avoid an ECHR challenge was misguided and wrong. As the noble and learned Lord, Lord Hope, said, the challenge will happen in any case, no matter what level the Government set the cap at, and those building companies will try it on.
If Motion H1 succeeds today, I do not want the Government in the other place to take on the role of the wonderful Ukrainian Snake Island defender, Roman Grybov, who offered sexual advice to the Russian warship. We are not the “Moscow”, and I hope that the Government will bring forward a compromise amendment, perhaps higher than £250 but much lower than the government caps.
With those quibbles, I wish to congratulate my noble friend yet again on the massive progress he has made with this measure. “One more heave”, as Jeremy Thorpe said in 1974—but hopefully with a bit more success.
My Lords, I have been living with this matter since we first debated the Fire Safety Bill in 2020. I declare an interest as chair of the Built Environment Committee. I believe that the building industry has an important part to play and has tried to rise to the table in the current circumstances. The Government, and my noble friend the Minister in particular, are to be congratulated on all they have done to find a way through on cladding, but the measures legislated for are inevitably costly and should not, in my view, be legislated for in respect of buildings under 11 metres, as proposed in Amendment D1.
I have some news for my noble friends. Since Michael Gove’s Statement on 10 January about proportionality and common sense, the logjam in buildings under 11 metres has eased. I have experience of this, relating to a family leaseholder in a nearby village, where there is now a less absolutist and more flexible approach to fire safety in a block of homes; this has become apparent in recent weeks since the changes were made. I believe, therefore, that there is a limit as to what we should provide on a contingency basis. I do not believe that taking the proposed powers, as now suggested, is justified. I think that the situation is improving in relation to buildings under 11 metres, and we should welcome that and see how that approach can be progressed.
I end by thanking my noble friend the Minister for the progress that has been made. Obviously, there are horrific problems, right across the board, in relation to taller buildings and cladding. Howeever, I urge people to be a little careful in bringing into the legislative framework, without looking at all the details, a very much larger number of homes.
My Lords, like everybody else, I think it has been refreshing to be in a situation whereby the debates in this place have been listened to and changes made. On a number of other Bills, one has not had that feeling—but in relation to this we definitely have.
I want to emphasise the key issue of buy-to-let leaseholders. They can be presented as big landlords, but I remind the Minister that many people were advised that investing in property would be an important way of being sensible and would provide them with an income or a pension and so on and so forth. So people did this in good faith. They are not landlords. They are leaseholders; they just have more leasehold flats. They are not big business. They are being treated differently if they have a small portfolio of four properties. This needs to be looked at, because it feels wrong that such people should be punished.
Secondly, I am very mixed about the 11-metre question. I agree that the danger of an unintended consequence here would be to say that, if you paid the remediation for under 11 metres, everybody would rush out and start remediating under 11 metres when it is not necessary. I am delighted to hear the Minister’s pledge, which I hope we will keep him to, that anyone having a problem with a building under 11 metres can get in touch if they are being charged. However, there is the problem of sales, and people feeling that they have unsellable flats; the noble Lord, Lord Blencathra, mentioned this. That is the approach I want to feel that we leave this Bill with: that leaseholders can come to the Minister with these kinds of problems that are unintended consequences.
I was one of the people who was very enthusiastic about having some kind of ongoing review—although we did not go down that route. The unintended consequence of what has in the end been a bit of a risk-averse panic over the past few years—which I understand—is that everything is seen as a fire risk. This has led not to keeping people safe but to making people very poor and not solving the safety problem. Let us hope, therefore, that things such as consultations and these kinds of questions will be taken seriously, because one thing I have heard consistently from leaseholders is that, although there is a lot of talk about listening to leaseholders and tenants—we heard that post Grenfell; we all know that Grenfell residents had tried to raise issues but were ignored—they still do not quite feel that they have a way of having a voice. That is an important thing for the Minister to carry on with.
I support Motion H1, because I want to push the Government one last time on this question. Ultimately—this is a very important point—the number is small but, on principle, we just want to be in a situation where the leaseholders are not paying. That is really what is being argued here: leaseholders, who were always the innocent people in this, should not pay.
Finally, because I think this can get lost, I have tried to represent the voices of at least some leaseholders—particularly those from Tower Hamlets, where I know the Lib Dems in particular have been brilliant at raising all these issues. It is an area where there are more problems around the leaseholder question than anywhere else, but greater remediation; I have been really inspired by that.
I also remind noble Lords that I want more houses to be built. This is a huge, important part of levelling up or whatever it is. We just need more houses built. I have always been concerned that we do not do anything that ends up destroying the construction industry or having the outcome that no houses are built—risk aversion in housebuilding. Part of what has happened is that people now understand the downside of being a leaseholder. Even if you are building those houses, you now think, “Why would I buy a leasehold flat?” I can assure you that, if I ever buy a flat again, after I have sold my leasehold flat—I am going to get rid of it as quickly as possible—I will not then want to buy a leasehold flat. I just think it is too scary.
(3 years, 5 months ago)
Lords ChamberMy Lords, we seem to be going around every type of housing that we could possibly build, but it is very important to recognise that we have a future homes standard, that we have set that to be in place by 2025 and that we continue to build homes that are reducing our carbon footprint—and, actually, modern methods of construction are precisely the way to do it.
My Lords, our Built Environment Committee report made it clear that, if the number of new homes is to be increased, improvements are needed in several areas of public policy, especially planning. More than half of all authorities have no local plans, with Slough the latest to drop its plan because of uncertainty. Will the Government do everything possible—there are examples in the report—to ensure that the defect is remedied and that we have homes of all tenures for everybody to live in?
I thank my noble friend for all the sterling work she does on the Built Environment Committee. I recognise that there is a problem around local plans. Indeed, it is the planning lawyers who point out that we need more robust timetabling again, to ensure that local authorities undertake their duties to have a plan to shape their areas.
(3 years, 5 months ago)
Lords ChamberI support Amendment 233, so ably moved by my noble friend Lord Young of Cookham in his usual erudite way; he had the detail but was still succinct. Because he set it out so well, I can be commendably brief, for a change.
I start from the position of my right honourable friend Michael Gove, and I totally support what he has said and done. I usually support what he says and does, except when he was Conservative Chief Whip and was a bit cuddly, caring and too kind. But apart from that, I liked it when he said that
“leaseholders are shouldering a desperately unfair burden. They are blameless, and it is morally wrong that they should be the ones asked to pay the price. I am clear about who should pay the price for remedying failures. It should be the industries that profited, as they caused the "problem, and those who have continued to profit, as they make it worse.”—[Official Report, Commons, 10/1/22; col. 284.]
You cannot say better than that. So I am rather sympathetic to any amendments, including the one moved by the noble Earl, Lord Lytton, trying to make sure that developers or perpetrators pay every penny. It should not be leaseholders and, ideally, it should not be the taxpayer.
However, this amendment creates a remediator of last resort and allows the Secretary of State to step in and undertake the works. In either case, it would allow the Secretary of State or the local authority to pursue the responsible developer with debt claims to recover the money laid out on remedial works. As my noble friend so ably said, that ensures that there is a failsafe mechanism in the law. The Government’s legislative proposals do not tell us what will happen if remedial works are simply not started or cannot be completed as a result of the effect of the caps imposed in the Bill and the restrictions on buy-to-let landlords.
The duty in this amendment would fill the gap. The Government’s proposals would require some sort of remediator of last resort. Because they are imposing caps on what can be collected toward non-cladding costs, the Government are creating a gap in funding, which will have to be plugged somehow. Ultimately, someone is going to have to pay; otherwise, as my noble friend said, buildings will never be fixed. This amendment allows building work to be started and buildings to be fixed, with the taxpayer providing a form of bridging finance—but they must get that money back from the building safety fund; this is not carte blanche to make the taxpayer pay for these things.
As I said, I am sympathetic to the amendment from the noble Earl, Lord Lytton. I just worry that if we adopted these four or five new clauses, we might be tearing the guts out of the Bill and would have to rewrite a lot of it. But I think his heart is in the right place in where he is aiming to go. I understand that my noble friend might be worried about the legal position under the ECHR. This is another area where the noble Earl’s amendments might technically fall foul of the ECHR. Some of us have seen legal advice circulated from Daniel Greenberg, who is well known to everyone in this House. He says:
“On the basis of this analysis, l am satisfied that the draft clauses are compatible with the Convention rights and that Ministers will be able to comply with Section 6 of the Human Rights Act 1998 (Acts of public authorities: duty not to act incompatibly with ECHR) when they come to perform the functions conferred by the draft clauses”—
referring to draft Clauses 234 to 237.
I am not capable of suggesting whether Daniel Greenberg QC is correct or not, but I would love to hear what the Minister has to say about that. If the amendments from the noble Earl, Lord Lytton, are not right, it would be helpful to hear from my noble friend how far they can go towards what the noble Earl is trying to achieve. If he is going to reject them, I would love to hear how far he can push to get as close as possible to the noble Earl’s position. With those words, I am content to support my noble friend’s Amendment 233, and I would love to hear explanations on the noble Earl’s amendments.
My Lords, I apologise for a brief Committee-style intervention, given the novel nature of the group of amendments we are looking at. I have two points.
First, I am very grateful for the agreement earlier to the amendment from the noble Lord, Lord Best. I thank my noble friend for that but, as he knows, I am concerned about the position of leaseholders who are also involved in the hard task of managing even a small development as an enfranchised leaseholder. I have a family member with an interest in that area. What happens if a cladding or other building safety issue arises? I know that such leaseholders may face big bills and responsibilities. Amendments 186 to 193 appear to make enfranchised leaseholders of this kind liable even if they have ceased to act or sold out and become previous landlords. Have I understood this correctly? If I have, then it undermines the case for enfranchisement that has been encouraged by successive Governments to get rid of excess service charges.
Secondly, a strong case has been made for the non-government amendments in this group. I too have received many worrying letters from leaseholders. Do we have a feel for the cost, especially the net cost, of these Back-Bench amendments we are debating? I feel this is a matter that will be of concern in the other place, given current fiscal pressures, and might therefore determine what is eventually agreed in this important and urgent Bill.
My Lords, this has been a very interesting debate so far. In the interests of time, I will just speak to the two amendments I have in this group, and then I will be very interested to hear the Minister’s response to the broader debate and issues that have been raised, that were clearly also debated in Committee.
Amendment 231 is about a registered social landlord not being able to
“use the income from rents or service charges to rectify defects relating to external wall systems or compartmentations where those defects result from the construction of the property or the installation of the external wall systems.”
The amendment would prevent local authorities using rental income or service charges to pay to remediate dangerous cladding or other fire safety defects. The aim is to give social housing tenants the same protection as leaseholders. While we support the Government’s efforts to protect leaseholders from the cost of remediation, the arrangements currently being considered by Ministers will mean that the cost of remediating social housing blocks falls on housing associations and council housing revenue accounts.
In the case of council housing, the main sources of income within the HRA are from tenants, in the form of rent and service charges. If the cost of fixing council housing falls on the HRA, then either rents, service charges, or potentially both, will need to increase, or maintenance improvement of social housing as well as new social housing delivery will need to be cut back. That is our concern. We clearly support the protection of leaseholders, but the protection of home owners who will eventually make a profit from the sale of their property, cannot and must not come at the expense of social housing tenants. Our proposal would prevent that outcome and instead require the Government to protect tenants such as leaseholders by requiring the industry to pay, with the taxpayer as a fallback provider of funds in recognition of any failings that created this crisis in the first place.
We discussed my Amendment 22 in Committee. It states:
“The regulations must exempt any relevant application made by or on behalf of a registered social landlord for the provision of social housing as defined under section 68 of the Housing and Regeneration Act 2008.”
The purpose behind this is to make social housing providers exempt from the additional financial burden of the Government’s proposed levy in order to prevent council tenants effectively subsidising the failures of private developers. Clause 57 of the Building Safety Bill gives the Secretary of State powers to impose a new building safety levy in England. This will contribute to government costs for remediating historical building safety defects and will apply to developers making application to the building safety regulator for building control approval. This is the new gateway 2 system, which will be introduced in building regulations.
Your Lordships need to calm yourselves.
On Saturday, I went to visit my home in Wood Green. It looks like a bomb site: there is no roof and there are huge amounts of scaffolding and barbed-wire fences surrounding the block of 25 two-floor maisonettes. When you arrive, you see a huge multicoloured fluorescent sign with the words “Zero tolerance” and then a list of prohibited activities, all relating to safety: “Safety helmets must be worn”; “Safety footwear must be worn”; “No smoking”; “Danger: tripping hazards”; “Danger: men working ahead”; “Danger: no children on the site”. We are told that “Safety signs and procedures must be observed.” I therefore know, having visited my home in Wood Green, that Haringey Council is definitely keen on promoting safety.
Let us consider this. My home is in this state because, two years ago, there was a fridge fire in one maisonette. The roof of the block caught fire and the other flats, including mine, were drenched by the fire brigade in putting out the fire. It was not too bad and, to be honest, we were so glad that no one was hurt and we were relieved to get out safely. But that was two years ago this month—two years in which 25 families have been effectively homeless. As a leaseholder, the council, which is my freeholder, took my front door key off me—it is not a glamorous house, by the way, but it is mine, or so I thought—and basically said that I would get it back when the block had been made safe. It is now two years later and I am still not back, and I have no idea when I can go home.
I have mentioned this story before. My retelling it is not therapy but to show how what starts as an unremarkable but unpleasant event—a fire, albeit in lockdown—can escalate and turn into a nightmarish, never-ending misery for so many people. At every turn, as leaseholders and tenants, we have been faced with layers of bureaucracy getting in our way, more and more people to deal with, more and more issues being raised to explain why we are not returning home, and dwindling effectiveness in getting our homes back to us. We leaseholders and council tenants have been shown a certain indifference to our plight. If I am honest, all that has been much worse than the original fire, but it is okay because Haringey Council has put up lots of safety signs. Safety trumps all, and is used to say to us, “Shut up and put up.”
I arrived at this place during the time of my eviction from the house and was inspired by the right reverend Prelate the Bishop of St Albans and the noble Baroness, Lady Pinnock, whom I heard speak on what was happening to leaseholders. I thought, “I’m going to join that debate.” I was inspired by their dedication and what they said, and that is how I ended up here.
The moral of this tale is that I want to make sure that the Bill, which is well-intentioned on safety, does not in the name of safety end up with the unintended escalation of a whole new set of problems for leaseholders, which was the point of the analogy with my flat fire. The amendment—I actually prefer a similar but better amendment from the noble Baroness, Lady Neville-Rolfe, who is trying to do the same thing—would require the Government to commit to review the impact of the legislation in a couple of years. It says to the Government, “Can you just check in all instances that the legislation doesn’t cause more problems and is actually doing what you want it to do, or what we in the House have been told you want it to do?”
We are rather rushing through the Bill. Whole swathes of new amendments have emerged. These have been put in not necessarily by noble Lords but by the Government. I was happy to hear the Minister explain that there are so many amendments because he, the Secretary of State and the department are listening. But whatever way you look at it, we, as people scrutinising the Bill, are being presented with hundreds of amendments that have been quite hard to get one’s head round in the time. In many ways, the Bill is not being fully scrutinised line by line. As the noble Lord, Lord Jordan, put it, it really is a legislative quagmire to wade through and it is very difficult.
It has been almost impossible to read the amendments, assess what their nuances mean and look for what the consequences might be. I appreciate that that is for me and that I am a lay person on technicalities, but luckily, as has been mentioned, leaseholders have a few important voluntary heroes who have helped the rest of us through. I know that the lawyer and leaseholder Liam Spender has already been name checked for his multicoloured sheet, which has already been shown, but if noble Lord have not seen it is well worth studying because it really does explain things. There are also all sorts of reporters for the Leasehold Knowledge Partnership and intrepid leaseholders doing their own work, trying to get to grips with what all these new amendments and the Bill mean.
I mention that because it would be irresponsible if we passed this Bill and then let it sail off into the distance without any idea that it will be looked at again. I worry that the Government think that all will be solved once the Bill has passed. I do not want hostages to fortune. We have had lots of reassurances today, we have been told not to worry and have had great rhetoric from the Government on proportionality and common sense, but we therefore need to be able to check that that rhetoric will be fulfilled.
Finally, this is not all about leaseholders. My hunch is that the Bill has a range of problems because it has gone along uncritically with the picture painted by Dame Judith Hackitt that somehow every aspect of living in a flat should be seen as a potential hazard and a dangerous fire risk. For the last few years—understandably because of Grenfell—there has been a sort of hyperactive “something must be done” mentality that has led to the EWS1 crisis and caused many of the issues that informed the discussion on the previous group of amendments on innocent victims paying for excessive remediation.
All I ask is that this review checks that an overzealousness does not emerge from the legislation that skews priorities and means the Government’s valiant efforts at common sense and proportionality somehow end up in a proliferation of chunky formalised procedures.
I will also reflect on the other people we should bear in mind. I have emphasised leaseholders throughout this contribution, but in my Second Reading speech I also talked about the construction industry. I want to make sure we do not end up stymying the house-building programme through overregulation. There is a danger that, as we have heard in some of the contributions, we describe the construction business as though they are all cowboy builders, which is a rather insulting caricature. With another hat on, at another time, I would be saying the big crisis in this country is a lack of housing and we need to “Build, build, build”, so I get worried when the Home Builders Federation says that it is concerned that there will be difficulties with housing delivery if too much of a burden is put on housebuilders. You might say, “I am not going to feel sorry for them,” but we do not want to get ourselves into a situation where the extraction of funds from the construction industry means that the UK home building industry—which is important to many parts of levelling up, social equality and so on—is stymied.
One way or another, I can think of nothing more sensible for a common-sense Minister than to say, “In a couple of years, we’ll review all this and check that your hunches are wrong, Lady Fox.” That will be fine. The Minister referred to me earlier as Oliver Twist—always wanting more. This is only a little bit more, but you cannot change the world unless you want more, and I intend to demand a lot more, but only a little more in this Bill. I beg to move.
My Lords, I rise to speak to my Amendment 264A in this group. I thank my noble friend the Minister, as others have done, for all he has done to make this Bill a reality.
The object of the Bill, as I see it, is to get defects remediated to a proportionate extent as quickly as possibly—mainly cladding, sometimes installed, ironically, to improve insulation in the interests of carbon reduction, but also other unsafe matters. There have turned out to be more defects than anticipated and we have witnessed an unfortunate record by builders and others of not doing enough to put matters right. The Bill seeks to get things remedied quickly. However, it is costing an eye-watering amount to home owners, leaseholders and the Exchequer, and the Bill therefore also seeks to establish an equitable share-out of the costs including appropriate contributions by the supply chain.
It is a long saga and some of us in this House have been seeking solutions for a very long time and welcome the principle of legislation. However, unusually, the Bill has been changed completely by government amendments tabled since it left the House of Commons, yet we have not had an updated impact assessment to help us assess the costs and benefits of the revised proposals. This is poor, given the financial and other burdens on different stakeholders, as the noble Baroness, Lady Fox of Buckley, has just explained. However, as the chair of the Built Environment Committee I welcome today’s concession from the Minister on social housing, which I hope will be less costly, as it will give welcome clarity.
I have a great deal of respect for the Health and Safety Executive, as I have said before, and for the Minister who has fought so hard to present credible, effective and sensible proposals. However, it has been a rush, and I believe we must have a review clause in the Bill beyond the five-year independent review in Clause 152, and with more teeth. The noble Baroness, Lady Fox of Buckley, has constructively proposed one option; I hope my version may recommend itself to colleagues across the House and to my noble friend. I believe that agreeing to this could help to narrow current, very real, differences on the Bill particularly in the next group of amendments.
I will explain why. I am proposing a review within two years. It would look at the impact of the provisions of the Act. If the review found that there were serious problems for leaseholders, for home owners who could not buy or sell property, or for any other group, it would make recommendations.
My Lords, there are many amendments in this group, and I have concerns about the open-ended financial implications while it remains unclear who is responsible for a perpetrator who cannot be found, or who is beyond the reach of the law—thus the importance of the review that the Minister has, I believe, agreed to bring forward much sooner than five years’ hence, although, without my amendment, he would need another Bill if we have to make changes, which seems inevitable.
There have been many powerful speeches, not least from the right reverend Prelate the Bishop of St Albans. I will not repeat what has been said. I have, however, given my support to Amendment 123, and I would like to take the opportunity to commend my noble friend Lord Naseby who in Committee highlighted the unfairness of excluding buy-to-let premises from the safeguards in the Bill for reasons we have heard. The Government have acknowledged that he was right.
However, I agree with my noble friend Lord Young of Cookham that it is difficult to limit this arbitrarily to the ownership of two extra UK properties. I would prefer his formula of four properties, or some other, fairer system. He and others have worked so hard to get the various provisions of the Bill right. For example, he said that we may not have capped the liability of enfranchised leaseholders—which he and I have worked on together—as we had been led to believe in Committee.
I look forward to my noble friend the Minister’s reply on the rationale and an answer to all the good points that have been raised, particularly on enfranchised leaseholders and how we do buy-to-let fairly.
My Lords, this has been an extremely important debate in which we have covered some of the critical issues still outstanding in the Bill. I thank the Minister for the introduction to the amendments. Many of them are good, but we believe there are still problems that need to be sorted out.
I will be brief. I thank the noble Earl, Lord Lytton, for his introduction to Amendment 115. If he decides to divide the House, he will have our support on that amendment.
I turn to my Amendment 155. It is really important that we take account of the principle that has been referred to by other noble Lords: there should be no cost to people who have done nothing wrong. It is not the fault of leaseholders that they have been left with these huge costs. We believe it is desperately unfair to force them to pay a penny, which is why my amendment has the word “zero” in it. As mentioned by the noble Baroness, Lady Pinnock, we must not forget the strain on the mental health of leaseholders. They need clear and proper support, and they are relying on your Lordships to do the right thing by them. To me, this is a moral question. Should leaseholders pay costs that, for many, will still be huge despite the caps proposed by the Government? They are blameless; they should pay nothing.
I thank the noble Lord, Lord Marks, and the noble and learned Lord, Lord Hope of Craighead, for clearly laying out the legal position. It has been important for me to hear that from them, and the detail that they have provided, having had discussions with the Government on their concerns about the ECHR. I also thank the noble Lords, Lord Young of Cookham and Lord Blencathra, and the noble Baroness, Lady Pinnock, for their support.
I confirm that I intend to divide the House on Amendment 155. If it fails to pass, I will be happy to support the noble Lords, Lord Blencathra and Lord Young, on Amendment 158.