Business and Planning Bill
Baroness Pinnock ExcerptsMonday 13th July 2020
(4 years, 1 month ago)
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Baroness Pinnock (LD) [V]
My Lords, I draw the House’s attention to my interests set out in the register as a councillor and as a vice-president of the Local Government Association. We on these Benches support the purpose behind this Bill, which is to provide additional flexibilities to businesses in the hospitality sector that have been forced to cease trading for three months and more as a result of government decisions to control the spread of the coronavirus.
As many Members have pointed out through the amendments discussed in this group, alcohol sales and premises are carefully licensed for a reason: undue consumption of alcohol can result in detrimental effects for both the individual and the locality. Although this Bill provides for temporary measures, temporary measures lasting 18 months can still cause considerable disruption for residents, communities and the environment. These factors must be carefully considered.
There are helpful proposals in these amendments to extend the flexibilities to include sports clubs and bars, as proposed by my noble friend Lord Addington. As he described, these provide a significant part of the funding for community sports clubs. I hope the Government will support this extension.
Equally, small breweries that currently do not have licences, as described by the noble Lord, Lord Holmes, and others, also seem a worthwhile addition to the flexibilities provided in this Bill.
My noble friend Lady Bowles made a powerful case for businesses that are not directly part of the hospitality sector, such as supermarkets, to be excluded from being able to apply for pavement licences. I hope the Minister will make it clear that this Bill is not, in the words of my noble friend, a Trojan horse for struggling pubs, cafés and restaurants.
Flexibilities on current regulations can result in unforeseen additional concerns. The amendment of the noble Lord, Lord Kennedy, to assess their impact after three months and to ensure that these temporary changes are indeed temporary is to be welcomed.
On safety concerns, the noble Lord, Lord Bourne, made some interesting comments on the mandatory use of face masks. None of us wants the additional flexibilities to support businesses to result in easier routes for the virus to spread. The amendment in the name of the noble Lord, Lord Kennedy, about the use of cash and provision of toilets is therefore important.
Enabling digital verification, in the amendment of the noble Baroness, Lady Neville-Rolfe, which is supported by my noble friend Lord Clement-Jones, seems eminently sensible.
Temporary event notices are currently used for major local events such as festivals and fêtes. These are currently restricted to protect local communities and other licensees. Greatly expanding the number without a full consideration of the facts and impacts is questionable. With those comments, I pass on to other speakers.
Lord Kennedy of Southwark (Lab Co-op)
My Lords, I refer the House to my relevant registered interests as a vice-president of the Local Government Association and as president of Pubwatch.
Group 1 deals with a range of amendments relating to premises and alcohol licensing, including Amendment 39 in my name and that of my noble friend Lord Berkeley on temporary event notices and Amendment 41 in my name, which seeks to add a new clause on health and safety to the Bill after Clause 11.
The noble Lord, Lord Balfe, referred to there being no votes today. We do not often vote in Committee—I have now been in the House for 10 years. I have made it clear in all my dealings with the Government, at Second Reading and in my meetings with them, which have been very helpful, that I will divide the House on Report if necessary. I have been very clear on that. I hope that we will get some resolution today so that it will not be necessary, but I am certainly not averse to having a vote. I would not be accused of that.
The first amendment in this group, in the name of the noble Lord, Lord Balfe, raises the issue of cumulative impact zones, which are areas defined as contributing to community problems because of alcohol. The noble Lord rightly seeks to stop premises in these zones applying for pavement licences. I look forward to the response from the noble Baroness, Lady Williams of Trafford, explaining how she has consulted with groups such as Pubwatch and other groups representing towns and city centres.
I hope that the noble Baroness will also detail the wider assessment the Government have made of the impact of these changes on crime, and in response to Amendment 11, on police consultation, I hope she will confirm that dialogue with police, local authorities and other interested parties will continue after measures in the Bill are implemented.
The noble Lord, Lord Bourne of Aberystwyth, made the point, which I agree with, about the need for the new street drinking to be controlled and managed safely. People can then relax and support the local economy while doing so safely and helping to avoid a second spike. That is very important.
My Amendment 39, plus two amendments in the name of the noble Lord, Lord Holmes of Richmond, deal with how the provisions can help businesses which do not have the necessary licence presently, as they rely on temporary event notices. This would also help street vendors who have been hit particularly hard in this crisis and have seen their doors close, some for good. Up to 15,000 businesses have lost all their income overnight and many tens of thousands of pounds have been tied up in rent for music festivals and rolled over to 2021.
The amendment would also help small breweries, which have suffered. Many noble Lords have spoken about the support for the small brewery industry. As we have heard, small breweries have seen up to 82% of their sales reduced because of Covid-19. They have not received the same level of financial support as pubs and the hospitality sector, and that is a matter of regret. One in four breweries—about 500 of the 2,000—does not currently have any way to sell directly to the public. The Government should adopt this measure as a way of helping them in the months ahead. The noble Lord, Lord Holmes of Richmond, and my noble friend Lord Berkeley, made a convincing case for the need to help small breweries, as did my noble friends Lady Kennedy of Cradley and Lord Wood of Anfield. As my noble friend Lord Berkeley said, these small breweries have made a fantastic contribution to the variety and type of beers sold in the UK; they employ local people, and they have been devastated. We need to do something and I hope the noble Baroness will be able to give us a positive response.
My Amendment 41 seeks to highlight the importance of workers’ safety in the hospitality sector, which the noble Lord, Lord Sheikh, also referred to. I am grateful to the support I have had from the Bakers, Food, and Allied Workers’ Union for its contribution about how to address this issue. I hope the noble Baroness, Lady Williams of Trafford, will address issues such as the handling of cash and how that can be limited. In pubs and other small venues, small amounts of money are handed over. There are payment companies like Worldpay and Shopify, but in many cases if you go into a pub or a small shop and want to pay by debit card, or if you spend less than £10 or £15, they charge you. There needs to be some way in which the companies will not charge the 10p that they presently do. What contribution can they make to ensure that people use less cash and pay by debit card more? Companies would need to step up to the plate and maybe the Government could ask them to do that. It would certainly help reduce the amount of cash being used, with the benefits that that would bring.
It would be interesting to hear about the protection of security staff at entrances to licensed premises. That is very difficult normally, but particularly now that we are talking about social distancing. What support are the Government going to give those staff to ensure they can do their job properly as well as being safe?
How do we ensure that toilets are safe for staff and customers? What discussion has the Minister had with the British Toilet Association including advice on keeping toilets clean and safe? This will be of paramount importance for staff who need to ensure their toilets are kept clean and safe for their customers. Can the noble Baroness also explain what guidance the Government will offer to pubs on these other issues?
Other amendments in the group raise important points, and I hope that we will get a detailed response, particularly on Amendment 44, from the noble Baroness, Lady Neville-Rolfe, and the noble Lord, Lord Clement-Jones. They both made a clear case about allowing better enforcement of the drinking regulations, which would be welcomed. It will be interesting to see whether it is possible to bring that forward quickly. The noble Baroness, Lady McIntosh of Pickering, made it clear that there is support in the sector for bringing these matters in quickly.
I will leave my comments there and look forward to the detailed response from the Minister.
Baroness Pinnock [V]
It is very interesting to follow the noble Lord, Lord Adonis, and his very detailed questions about the distances currently set out in guidance for the highways authorities. I, and I am sure others, look forward to hearing from the noble Lord, Lord Greenhalgh—perhaps in a letter to us all—how these different distances will be handled with pavement licensing.
This group contains a very important set of amendments, to which I hope the noble Lord, Lord Greenhalgh, will be able to give a positive response. The daily difficulties described by my noble friend Lady Thomas of Winchester and the noble Baroness, Lady Grey-Thompson, and others amply illustrate why these amendments ought to be adopted by the Government.
In my own council of Kirklees, pavement licences already include a requirement for barriers. These not only clearly delineate the area in use and prevent a gradual expansion of the site but give a physical barrier for those with sight impairments. They also ensure adequate room for pedestrians, especially those needing space, such as parents with buggies, wheelchair users and people who need walking aids. As the noble Lord, Lord Holmes, said, it is simply not good enough to use words such as “may” and “consider”, as the noble Earl, Lord Howe, did in response at Second Reading. These are vital changes and the words used have to be “must” and “will”. We on these Benches wholeheartedly support the amendment to ensure that barriers are in place around pavement licence areas and that sufficient room is provided for pedestrians, while keeping to social distancing guidelines. There should be no ifs and no buts.
Amendment 25, which stands in my name and those of my noble friends Lord Shipley and Lady Thomas of Winchester and the noble Baroness, Lady Grey-Thompson, is explicit in its requirement for barriers to show the extent of the area and to enable pedestrians to continue to use pavements for their purpose. There is a danger that pavement licences will result in pedestrians being forced into the road. For clarity, I have been asked by my noble friend Lady Thomas of Winchester to point out that electric scooters, as raised by the noble Lord, Lord Harris, are intended to be used only on roads, not pavements, while electric mobility scooters are intended for use on pavements, not roads. The changes set out in Amendment 25 would resolve these issues. They are so important to many of us that, if there is no movement by the Government to address them, we will bring the matter back on Report and will be prepared to divide the House.
We must be careful that consultations to ensure changes that benefit one group do not inadvertently impair the needs of others; hence Amendment 6 in my name would make sure that applications were well publicised. Furthermore, as this legislation could make life even more difficult for disabled people, it is vital that applications are published in an accessible format. People have a right to know and to comment. The amendment in the name of the noble Lord, Lord Holmes, which proposes enabling the revocation of a licence, is important and makes good sense as a means of dealing with the few who fail to act responsibly. I also support the comments of the noble Lord, Lord Balfe, who suggested that government should let go of the control strings and allow councils to take, and be accountable for, local decisions.
Many of us across the Committee are very concerned about these issues and hope that the Minister will be able to indicate a substantial change by the Government in the direction that we propose in Amendments 6 and 25.
Baroness Wilcox of Newport (Lab) [V]
My Lords, I draw attention to my interests as noted in the register. Despite my deep and continuing roots in local government, I am afraid I am not able to say that I am a vice-president of the LGA. Who knows? Maybe one day.
We welcome the clauses in the Bill to allow pubs and restaurants to obtain pavement licences more easily. We have heard a wide range of views from noble Lords in this debate. The hospitality industry continues to suffer from restrictions in its capacity, and I am sure the whole Committee is keen to support steps to allow pubs and restaurants to serve a greater range of customers. However, it is imperative that with the increase of pavement licences, precautions are taken to minimise any adverse consequences. Safety and accessibility are paramount, and I am pleased that the noble Lord, Lord Holmes, has tabled a series of amendments with this in mind. His point regarding inclusive design was extremely well made, as was his question regarding updated guidance in our post-Covid environment.
The noble Lord is not alone in raising these issues, and I note that the RNIB and Guide Dogs for the Blind have raised similar concerns. His expertise in this area is clearly invaluable, as is that of the noble Baroness, Lady Grey-Thompson, who made the point that guidance is often ignored and legislators must think more positively to allow disabled people to move around safety. I take particular interest in Amendment 5, which stresses the importance of compliance with the Equality Act, and I would appreciate clarification from the Minister of how statute already provides for this.
The noble Lord, Lord Lucas, raised the interesting proposal of allowing outdoor seating outside unused premises. I look forward to hearing the Minister’s thoughts on this, but I hope that in doing so he considers the implications of this for the concerns raised elsewhere over safety.
I also take interest in Amendment 12, which raises the point that any changes must allow for social distancing. I am sure the Minister will agree that these issues must be considered together by businesses, local authorities and the Government to ensure that they are resolved. With each of these concerns, it is clear that legislation will not provide all the answers. It is incumbent upon local authorities, as was so clearly put by my noble friend Lord Harris, who has a laser-like focus on what town halls can and cannot do. He made an important point about a seven-day consultation period and the problems that residents have to deal with as a result of not knowing what has changed in their community.
As further premises gain pavement licences, it is crucial that the Government engage with local authorities to consider whether they can offer any support and do not merely issue a diktat from above. A main learning outcome from this dreadful pandemic is the clear dependence that central government has upon local government in carrying out the laws and regulations made by the Governments of the four nations. Without the practical support of local government, much of what happens here simply would not happen. Local authorities will no doubt work, as ever, in partnership with local businesses, disability groups and, as we have in Wales, public service boards, working jointly to improve our areas. As noted in the amendment tabled by the noble Lord, Lord Blencathra, and the detailed elucidation by my noble friend Lord Adonis, Parliament must remain alert to any further issues which may arise, such as the inclusion of 1,500 millimetres apart guidance, thus changing an unworkable solution into a workable solution.
Baroness Pinnock [V]
My Lords, administrative procedures do not necessarily excite interest but they are nevertheless important. If we get the processes right to meet the needs of all involved, there are likely to be fewer adverse consequences, to the benefit of both the applicant and those impacted. These amendments make the consultation process fairer by ensuring that the application provides sufficient time for comments to be made, and then requiring a response to the points made during a consultation. I am pleased to have signed the amendment in the name of the noble Lord, Lord Low, about pavement licences which are deemed to have consent due to the local licensing authority not having responded in the narrow window of time set out in the Bill. This does need to be just a three-month approval; if they are so deemed simply because the local authority is overwhelmed with applications, the local authority will be unable to give each one the consideration it deserves. A three-month deemed approval will be an incentive for applicants to give the local authority time, so that the applicant does not have to reapply within a short period. To give a week initially but gain nine months later would be a good deal for both parties.
There are costs for local authorities involved in these measures, and these need to be fully recompensed by the Government. Local authorities have demonstrated during this pandemic that they are able to make speedy and agile decisions. They also have a duty to consider all their residents, whose issues these measures address.
The safety issues raised by the noble Lord, Lord Lucas, need some consideration, although it is not clear—to me, at least—how the changes he proposes are compatible with the purpose of the Bill to get flexibility for business within weeks, rather than the years it sometimes takes to change things such as speed limits. I hope that the noble Lord, Lord Greenhalgh, will provide a constructive way to address these issues on Report.
Baroness Wilcox of Newport [V]
My Lords, I rise to speak to Amendment 19 in my name, and I will also refer to other amendments in this group. We can all recognise that the granting of pavement licences can have consequences for local communities, and through the application process we can best mitigate any unintended repercussions. A consultation in itself will not suffice—it must be open, accessible, and not merely a tick-box exercise.
The amendments in the names of the noble Lord, Lord Low, and the noble Lord, Lord Holmes, highlight the question of the time limit for pavement licences. The department has been keen to stress during the passage of this Bill that most measures are temporary; but can the same be said for the licences themselves? The intention behind Amendment 19 is to highlight the importance of the UK Government and local authorities working in tandem throughout the process. The Secretary of State must engage with councils while establishing the conditions for pavement licences and be receptive to any feedback received. As my noble friend Lord Harris remarked, local authorities must take account of the residents affected by any changes. Indeed, as a former council leader myself, I agree that if we fail to listen to and act upon the views of our residents, political demise will soon follow.
The enforcement role of local authorities is a similarly important point. Many teams in licensing and trading standards have been decimated by a decade of cuts to public services, and there may be simply not enough boots on the ground to facilitate this effectively. On the same theme, I also ask the Minister to consider how the Government intend to work with the devolved Administrations on these initiatives. While many of the provisions in this Bill do not relate to the whole of the UK, we can all accept that the borders between our nations are permeated by people visiting licensed premises, be it Chepstow in the south or Chirk in the north. Indeed, before the pandemic, more people moved daily between Cardiff, Newport and Bristol for work and leisure than between Liverpool and Manchester. Hence, the idea of the Western Gateway was initiated, and cross-border working for economic gains was developed by Welsh and English local government.
I also refer to the comments made by noble Lords about the time taken by some areas of local government to respond to matters. After dealing with a cut of almost 30% of my total budget, yet maintaining the level of services delivered by my council, I think it nothing short of miraculous that councils are still delivering to such high standards across the UK.
The Deputy Chairman of Committees
The noble Lord, Lord Adonis, has withdrawn, so I call the noble Baroness, Lady Pinnock.
Baroness Pinnock [V]
My Lords, we have heard powerful and eloquent contributions, led by my noble friend Lady Northover, on the imperative to ensure that by extending ways in which pubs and cafés can serve customers, we do not also inadvertently extend opportunities for smoking. All the arguments have been made. I wholeheartedly support this amendment. It has cross-party support. I look forward to the Minister indicating that the Government accept that this amendment is essential for public health.
Baroness Wilcox of Newport [V]
My Lords, the sole amendment in this group seeks to prevent customers from smoking in areas covered by the new pavement licences. The noble Baroness, Lady Northover, is right to alert the House to the dangers of second-hand smoke. This is a pertinent issue, considering that respiratory health is at the forefront of everyone’s mind.
The House will be aware that for some time there has been a wider campaign for smoking in beer gardens to be banned, and that any proposals for further restrictions should be considered only in consultation with the hospitality industry, especially at a time when businesses are struggling to survive. On a similar note, I would welcome the Minister clarifying the guidance to pubs on the exact regulations relating to smoking in outdoor areas. The Minister may be aware that a bar in Belfast was fined earlier this year because its beer garden, which allowed smokers, was too enclosed.
Also on the dangers of smoking, can the Minister explain why the Government are still planning to cut smoking cessation services across England by £4.9 million in 2019-20? The noble Lord, Lord Young, reminded the House of the Health Act 2006, which helped employees in the hospitality industry deal with the perils of passive smoking, since they are entitled to work in a smoke-free atmosphere. My noble friend Lord Faulkner alerted the House to the Government’s intention to make pubs and clubs smoke-free by 2030—the most significant contribution to public health since the Clean Air Act of the 1950s.
I pay tribute to local government colleagues in Manchester who, through consultation, have found that an overwhelming majority of Mancunians support the creation of permanent smoke-free zones in the city and wider region, to “make smoking history”. Perhaps the Minister should look instead to Wales, where the Labour-led Welsh Government have made enormous achievements in de-normalising smoking and protecting non-smokers from exposure to second-hand smoke. Last summer, Wales was the first country in the UK to ban smoking in outdoor school spaces, playgrounds and hospital grounds, and—as noted by the noble Lord, Lord German, who was an Assembly Minister at that time—we were ahead of the curve when we banned smoking in indoor public places in Wales in April 2007, ahead of England.
Baroness Thornhill (LD) [V]
My Lords, I support my noble friend Lady Bowles of Berkhamsted’s Amendment 24. Her speech shows that there is much confusion around aspects of the licensing laws. This is also abundantly clear from contributions by other noble Lords today, which is why I echo what the noble Baroness, Lady Kennedy of Cradley, said at Second Reading: a review of our licensing laws is long overdue.
It seems very likely that there will be areas not currently within the so-called red lines of the licence that may be better used for external drinking than the obvious pavement areas, for reasons outlined by the previous speakers. I absolutely agree with the noble Lord, Lord Lucas, that local authorities, which know their area, pubs and landlords best, should have maximum flexibility.
This amendment seeks to expand the opportunities for creating such outdoor spaces. For example, can the Minister clarify whether councils can license parking bays that have been suspended—naturally, subject to safety and local considerations, as always? This would enable businesses to take advantage of pavement licences that they otherwise would not be able to because of the limited width of the pavement, for example. Can the Minister also clarify whether new pavement licences are exempt from the public space protection orders in the same way that licences under the Highways Act 1980 are—or are the powers already there but not explicit, in which case can guidance be amended?
Baroness Pinnock [V]
My noble friend Lady Bowles has raised detailed issues about the use of alternatives to pavement licences that may be of more value to pubs and cafés and less disruptive to residents. This is eminently sensible and promotes business. I am confident that the Minister will be constructive about the way forward in response to this thoroughly sensible amendment.
Baroness Wilcox of Newport [V]
My Lords, the amendment in the name of the noble Baroness, Lady Bowles, highlights the need for outdoor space licences to be easily granted for areas such as courtyards and car parks. The noble Baroness is right that many premises will not benefit from pavement licences but have space elsewhere for which they may wish to explore the addition of seating. She asked an important question: where is the general new provision? Is the licence needed at all?
The knock-on impact for residents may be lessened should these options be considered rather than pavements. I assume they will also lessen the consequences for those with disabilities who may struggle on pavements blocked by seating. I hope the Minister will consider whether it is possible and desirable to allow more outdoor spaces to be utilised. The noble Baroness, Lady Thornhill, noted what my noble friend Lady Kennedy of Cradley said at Second Reading about the licensing laws needing real revision.
Lord Sheikh [V]
My Lords, I was going to speak in favour of Amendment 27 but, in the light of what my noble friend the Minister said earlier, I will speak in favour of Amendments 30, 32 and 35. The issue that worries me is how alcohol is sold to be taken away. It should be sold in sealed containers. If it is sold in glasses, these should be plastic, not beer or wine glasses. I am worried that glass can be used to cause injury to others.
We have seen how people behaved in the streets on Friday and Saturday nights before the lockdown. There were fights at night which police, ambulance staff and hospitals had to deal with. It is not only men; women also misbehave when they have too much to drink. I used to go to the City of London, as I had an office there. I used to see business and professional people who were sober and well-behaved during the day but who behaved badly after consuming alcohol. I therefore support the amendments which I referred to.
Baroness Pinnock [V]
My Lords, the noble Baroness, Lady Williams of Trafford, has given the Committee an assurance that the Government will bring forward an amendment about restricting the time at which off-sales can be made to a limit of 11 pm. This is most welcome and deals with some, but not all, the issues raised in the amendments in this group. However, we need to see the detail of such an amendment, including the start time of off-sales under the Bill.
Noble Lords have heard the wise words of an experienced professional. My noble friend Lord Paddick knows what he is talking about. He knows at first hand the horrible injuries that can come from mixing too much drink with broken glass. He knows that this has to be curtailed. The arguments are powerful. All noble Lords who have previous or current experience in local government know how vitally important it is that these concerns are dealt with. I added my name to the amendments in the name of my noble friend Lord Paddick and look forward to them having a positive response from the Government.
My noble friend Lord Shipley asked about reducing the late-night levy for businesses whose premises were closed under the coronavirus restrictions. This is eminently sensible, and I hope that the Government can agree to the content of the amendment.
Lord Kennedy of Southwark
My Lords, I thank the Minister for the announcement she made to the Committee at the start of this debate. I appreciate this and look forward to seeing the amendment which the Government will bring forward. I also thank the noble Lord, Lord Greenhalgh, the noble Earl, Lord Howe, and the noble Baroness, Lady Penn. When we met online they were very kind and listened to the issues raised, as they did at Second Reading when there was genuine concern around the House about the consequences of this additional permission. I am pleased that the Government have listened and look forward to seeing the amendment.
I also thank my noble friend Lord Whitty, the noble Baroness, Lady McIntosh of Pickering, and the noble Lord, Lord Robathan, for supporting the amendments I have put forward. There was also a formidable team in the leaders of the London Boroughs of Southwark, Camden and the City of Westminster, and the Royal Borough of Kensington and Chelsea—four boroughs with the vast majority of these licences, all saying that this would cause huge problems for them—who all came together to write a joint letter. It is good that the Government have listened to the points they made. I also have to thank the Covent Garden Community Association which was rightly vociferous about the problems this would cause—they accept that they live in a very lively area, but this would be a step too far. We began to receive support over the last few days from other local authorities and community groups, and we thank them all.
Baroness McIntosh of Pickering [V]
My Lords, the amendments in this group have much to commend them. I support Amendment 42 in the name of my noble friend Lady Anelay in particular. It is important that the provisions before us today are carried out effectively and that the balance we all wish to achieve between the hospitality and tourism sector and the rights of residents and other users is maintained. By the end of January 2021 is a good reporting period. Amendment 78 in the name of the noble Lord, Lord Kennedy, also has much to commend it, but I fear that a monthly report is a very tall order. I look forward with interest to my noble friend the Minister’s response to this group.
Baroness Pinnock [V]
The amendment of the noble Baroness, Lady Anelay, lays bare the deep concerns of the tourism sector. The Government’s response will be crucial. As my noble friend Lady Doocey said, the tourism sector is on a knife-edge. The example she gave from the Lake District is no doubt being felt elsewhere in regions dependent on tourism. In replying to the debate, I hope the Minister can give hope and help to these regions.
Lord Kennedy of Southwark
My Lords, this group contains two amendments: Amendment 42, in the name of the noble Baroness, Lady Anelay of St Johns, and the noble Earl, Lord Clancarty, and Amendment 78, in my name. These probing amendments seek to highlight wider issues surrounding support for the hospitality sector. As we heard in the debate, the industry desperately needs government backing to see it through the coming months, which is why this House is supporting the Bill and why it is seeking improvements to make it even better.
I welcome Amendment 42 and entirely agree with the comments of the noble Baroness and the noble Earl. The amendment introduces the requirement for a review of support. Given that these are labour-intensive businesses, we should bear in mind that there is an enormous unemployment risk if businesses in this sector collapse.
Amendment 78 in my name aims to start a debate on two issues plaguing the hospitality sector, the first of which is lack of consumer confidence. Many people are still cautious about visiting hospitality venues, and the Government must play an active role in encouraging customers to return safely. The second issue is rent disputes. One large pub chain told us that disputes between tenanted pubs and their owners are still unresolved and there is no effective mechanism to fix this. I hope the Government can explain how they will encourage consumer confidence to help people return to pubs.
Obviously, this is a probing amendment that highlights these issues and seeks a government response regarding how they see these points being resolved in a satisfactory way that keeps businesses open, staff working safely and customers coming through the doors, reassured that they can enjoy themselves and spend money safely. I look forward to the Minister’s response.
Baroness Pinnock [V]
My noble friend Lady Randerson is unable to speak on this group as she has caring commitments that she is unable to change. She has been in contact with the Freight Transport Association, which provided her with an extensive briefing. I know that she has also spoken with the noble Baroness, Lady Vere.
My noble friend asked me to highlight one of the issues in the Freight Transport Association’s briefing: certificates of temporary exemption. These may now result in the required test falling within the busiest period for many operators. The FTA is confident that this is not what the Government are seeking to achieve. It has therefore asked for the certificates of temporary exemption to be issued for a full 12 months so that HGV licences are not subject to change at a time when the vehicle needs to be on the road to catch up with transport issues that have fallen by the wayside due to the coronavirus changes.
With that rather inept briefing—I am sure that my noble friend would have done so much better—I hope that the Minister will be able to give some answers to the questions that have been asked.
The Parliamentary Under-Secretary of State, Department for Transport (Baroness Vere of Norbiton) (Con)
My Lords, this group concerns Clauses 13 and 14, which seek to manage road safety risks as we move into recovery from the pandemic. I am very grateful for the discussions that I have had with the noble Lord, Lord Tunnicliffe, and the noble Baroness, Lady Randerson, who is unable to be in her place. I will put on record further details to address the concerns that have been raised.
First, noble Lords will be aware that draft regulations referred to in Clause 13 are now available, but the essence of this clause is as follows: at this time, the Driver & Vehicle Standards Agency can issue certificates of temporary exemption from roadworthiness testing on a blanket basis for vehicles during exceptional circumstances. It has issued such exemptions to all heavy vehicles that are due a test in the period from March to August 2020. Clause 13 allows the DVSA to exempt vehicles from testing based on road safety risk factors rather than on a blanket basis. These powers are not intended to manage business as usual and will not be used to manage normal test demand unconnected to exceptional circumstances.
When determining whether a CTE should be issued for a particular vehicle, the new regulations will allow the following relevant safety factors to be considered: the age of the vehicle and its technical characteristics; the findings of any examination or inspection of a vehicle; enforcement action against the vehicle’s operator or against the driver of a vehicle used under that operator’s licence; the operator’s membership of the DVSA’s earned recognition scheme; and any action, direction or order in relation to an operator’s licence, held by the operator, taken or made by a traffic commissioner within the previous five years under specific relevant provisions.
Where exceptional circumstances necessitate, the new power will be used to prioritise older vehicles for testing—most likely those over two years old—and take into consideration membership of the DVSA-run earned recognition scheme and operator compliance risk scores calculated by the DVSA, based on historic evidence of compliance. The regulations will permit the issue of CTEs during, prior to, or subsequent to disruption attributable in whole or in part to an exceptional event which falls within the existing definition. This is in recognition of the fact that disruption to test availability may extend beyond the boundaries of an event. An exceptional event such as accident, fire or epidemic is included in this definition. The regulations will also set out the duration for which these CTEs can be issued. Given that these revisions reduce the road safety risk inherent in the existing powers and are to be used only infrequently and in exceptional circumstances, we do not propose to add a sunset clause.
I turn now to Amendment 49, tabled by my noble friend Lord Attlee, which seeks to permit the Secretary of State to qualify any individual to undertake road-worthiness tests of heavy goods vehicles. At present, heavy vehicle testing is undertaken by the DVSA, typically with staff working from a third-party site. This amendment would open the door to the private sector undertaking such testing; this is often referred to as delegated testing. I understand my noble friend’s views on this point and recognise his expertise in the area, as so ably demonstrated in his contribution. I express my gratitude to him for his constructive approach, particularly in discussions with departmental officials.
However, allowing delegated testing of heavy goods vehicles would represent a fundamental change in our long-standing approach. This amendment would require us to conduct that change during a time of immense pressure on the testing system, on stakeholders and on the DVSA. Establishing a new system of testing without carrying out careful consideration and extensive consultation would be unwise and would create risks to all road users. However, I am extremely willing to continue constructive discussions with the noble Earl, and indeed with industry, particularly as to how we can improve the current system. For these reasons, I hope that my noble friend will feel able to support the Government’s approach.
I turn finally to Clause 14. I am grateful to the noble Lord, Lord Tunnicliffe, for giving me an opportunity to provide further details. Lorry and bus drivers must apply to renew their driving licence every five years and annually from the age of 65. From the age of 45, a medical report signed by a doctor must be provided with the renewal application. Under an existing power in secondary legislation, the Secretary of State for Transport can waive the requirement for a medical report. However, the Secretary of State for Transport currently cannot mitigate the associated risk by issuing shorter licences.
As a result of the pandemic, NHS GPs have not been available to meet the demand for medical reports. To help keep drivers on the road, we announced a temporary scheme to waive the medical report requirement and issue one-year licences back in April 2020. The provision in this Bill is retrospective. It limits to one year the duration of licences already issued under that scheme without a medical report, as well as those that will be issued in the future. Even though the medical report will not be required at renewal, the driver must still fill out the standard DVLA medical questionnaire, and confirm whether or not they suffer from one of the medical conditions relevant to fitness to drive. If a medical condition is declared, the DVLA will investigate the condition, and decide whether it is appropriate to issue a licence. The provision for one-year licences to be issued where there is no medical report will last for the duration of the Bill. However, this scheme does not have to be used. The DVLA is keeping the scheme under review, and in consultation with NHS authorities will reinstate the requirement for a medical report, and return to issuing five-year licences, as soon as medical resources are available to meet demand.
I thank the noble Baroness, Lady Kramer, for her questions on the issuance of other licences and their renewal, and I will write to her. On the basis of these explanations and clarifications, I hope that the noble Lord, Lord Tunnicliffe, will feel able to withdraw his intention to oppose the Motion that the clause stand part.
Covid-19: Local Government Finance
Baroness Pinnock Excerpts(4 years, 1 month ago)
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Baroness Pinnock
To ask Her Majesty’s Government what is their response to reports that five of the largest councils in the United Kingdom may have to issue a notice under section 114 of the Local Government Finance Act 1988, as a result of a loss of income due to the COVID-19 pandemic.
The Minister of State, Home Office and Ministry of Housing, Communities and Local Government (Lord Greenhalgh) (Con)
The Government have made £3.2 billion available to local authorities through an unring-fenced grant so that they can address the pressures they are facing in response to the Covid-19 pandemic. We are working on a comprehensive plan to ensure councils’ financial sustainability for the year ahead, and we will continue to work closely with them to understand the costs that they are facing.
Baroness Pinnock (LD) [V]
Despite what the Minister has said, Hansard of 28 April records the firm commitment of the Government to
“back councils with the financial resources they need”,—[Official Report, Commons, 28/4/20; col. 203]
including support for the loss of income as a result of Covid. Can the Minister please provide a firm assurance that the financial resources will be made available in any such comprehensive plan?
Lord Greenhalgh
My Lords, I can give an assurance that a comprehensive plan will be announced shortly. It is a little unfortunate that the timing of this Question is before that announcement. Of course, these general measures will support the vast majority of councils through the difficult process ahead; any individual councils that have problems should contact the department, or myself or other Ministers responsible.
Planning Process: Probity
Baroness Pinnock Excerpts(4 years, 2 months ago)
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The Minister of State, Home Office and Ministry of Housing, Communities and Local Government (Lord Greenhalgh) (Con)
My Lords, my right honourable friend the Secretary of State followed entirely the planning guidelines that were set out by the MHCLG. I do not accept the way that this has been put to me —that he in any way broke the law. He sought to ensure that there was no inference of bias and that the planning decision would be redetermined. That was agreed with the local planning authority in Tower Hamlets and the Mayor of London.
Baroness Pinnock (LD) [V]
My Lords, I declare my relevant interests as a councillor and vice-president of the Local Government Association.
Failure to declare lobbying, failure to provide reasons for planning decisions and failure to make such decisions in a public session by local planning committees could result in allegations of maladministration. Does the Minister agree that those requirements should also apply to the Secretary of State—and, if so, will the Government disclose all such documents in the Westferry decision process?
Lord Greenhalgh
Of course these requirements apply to the Secretary of State, but it is absolutely clear that at every step of the way, he disclosed all that he needed to disclose to the department, and that he followed the rules set out in the MHCLG’s propriety planning ethics.
Northamptonshire (Structural Changes) Order 2019
Baroness Pinnock Excerpts(4 years, 6 months ago)
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Baroness Pinnock (LD)
I remind everybody of my entry in the register of interests, as a councillor in Kirklees in West Yorkshire—a unitary council—and as a vice-president of the Local Government Association. The order enacts decisions made in response to the financial calamity that befell local government in Northamptonshire through its county council. It was clearly imperative that action was taken; it is my understanding that change had to be made. However, I would like to comment on and perhaps challenge some of the decisions that have resulted from the decision to reorganise local government in Northamptonshire.
First, it seems that we as a country are in danger of taking the “local” out of local government. I say that as somebody who serves a very large ward—not the largest in the country, but one of the largest—at a unitary level and understands the demands on the three councillors who serve a population of 16,000. From my experience, it means that some of the very local issues become less important to councillors, who have to deal with high-level strategic decisions, but remain very important to local people. When you have a big ward, there is a tension between the strategic and the local. If we are not careful, local people often miss out. That is more so with large wards serving rural communities.
I do not know the county of Northants very well, but I guess that some of its wards will be significantly rural in nature. In my experience, this creates a potential disconnect between decision-makers and the people they serve. There is potential for the Government to give additional powers to parish and town councils, so that they can take up some of the very local responsibilities that would previously have been the remit of district councillors. That would enable a local element to be retained in local governance. I will leave it there and hope that the Minister will have some sort of response to it.
The second element is the size of the two unitary councils and the number of councillors they have. One has got 93 and the other has 78. In my experience, that is quite a large number. The Explanatory Memorandum states that there will be a boundary review for those wards before the next local elections in 2025. Are the Government thinking about reducing the number of councillors, because that is what a boundary review could achieve? On balance, having fewer councillors might improve governance but, on the other hand, it increases the size of wards and makes it more difficult for ward councillors to undertake their local responsibilities. Is that in view?
My next point is a general one about when there are 93 councillors—even 78—and only 10 of them are actual decision-makers. They are in the cabinet; they make the decisions for the council. That leaves another 83; they can do scrutiny, but they are not taking decisions, which is what local people expect them to be doing. Apart from the annual budget, the local plan and, perhaps, an annual children’s plan, there is not much that every councillor has to take decisions on. There has to be a rethink of the roles and responsibilities of councillors who are not in a cabinet. It can make councillors feel remote from decision-making. As ward size makes people feel remote, councillors feel remote if they are not in the cabinet. In my experience, remote decision-making fuels discontent and we should take note of that.
Paragraph 7.6 of the Explanatory Memorandum, which the Minister referred to, outlines the benefits of the new structure:
“aligning infrastructure; housing and environment services to help deliver growth; advantages in … health and wellbeing; improved education and skills provision”,
though I have to say that the responsibilities of local councils regarding education are very limited these days. The levers that they have to change anything are minimal, so I would not have referred to education in that way. Does the Minister agree that there could be an alternative to achieving that aim, which I think will come up in the next few months in a number of ways? A constructive collaboration, formalised between districts and the county, could achieve the same aims without the upheaval of a structural reorganisation. This would be an upheaval, and it takes a long time—several years—for councils to get on their feet and begin delivering strategically, not operationally, the services that they should.
Grenfell Tower Inquiry: Phase 1 Report
Baroness Pinnock Excerpts(4 years, 9 months ago)
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Baroness Pinnock (LD)
My Lords, what a privilege to follow the magnificent maiden speech of the noble Lord, Lord Woolley. I have long been an admirer of the work of Operation Black Vote, and of the noble Lord as its inspiration. As he has described, huge strides have been made in social and racial equality in the past 20 years, much of it the result of his campaigning work. I thank him. Having heard him speak today with insight and passion, it is clear what a significant difference he will make to the work of this House, as well as continuing his campaigning zeal across the country. I wish him good luck.
There are just a few tragic incidents of such magnitude and horror that they become seared into our collective memory: Aberfan, the “Herald of Free Enterprise”, Lockerbie—and now Grenfell.
Grenfell brought out the absolute best of human reaction: Grenfell residents supporting, caring for and rescuing others; the heroic efforts of the firefighters who put their own lives at risk. All those at the heart of that horrific fire need to know that reasons are unearthed and responsibilities allocated. The Phase 1 inquiry report is thorough and unflinching in setting out some of the answers. It says:
“The principal reason why the flames spread so rapidly ... was the presence of the aluminium composite material”,
as well as panels which,
“acted as a source of fuel”.
We should bear that in mind as we consider the responses of the London Fire Brigade.
What struck me as I read the report was that communication failure and lack of training were fundamental to how the emergency services responded. The control room operators were understandably inundated with calls. There were insufficient operators, and routing the calls to other fire and rescue services was not as helpful as it should have been because there was no ability to share information of the incident; as a consequence, differing advice was given. Neither did the emergency services have sufficient training in fire survival guidance or, crucially, the implications of a decision to stay or evacuate; nor were they able to give firm, clear messages when evacuation was the only option.
The lessons of the Lakanal House fire of 2009 have not been learned and here the Government bear considerable responsibility. Information between the control room and the site of the fire were totally inadequate. That finding in the report is quite astonishing; in itself, inadequate information-sharing contributed to poor decision-making at a senior level that surely led to lives being lost.
As we have heard from the noble Lord, Lord Harris, the report states that the communications equipment used by the LFB was unreliable and in some cases failed to work at all. How can it be that firefighters are asked to put their lives at risk without the invaluable aid of modern and effective communications equipment that is reliable in all situations? How can that be?
The failure in communication systems did not end there. Each of the emergency services that responded so heroically to the fire failed to share vital information. For example, as we have heard, each service declared a major incident at a very different time. During the incident, this lack of shared information meant that the nature and extent of the fire was not properly understood. Even helicopter surveillance of the fire was of little help as the pictures of the scene could not be communicated to the incident commanders because the downlink failed to function.
This catalogue of communication systems failures should be—must be—a lesson learned by emergency services and gold command operations across the country. In an age of easy, instant communications, it is simply shocking that the failures were so widespread. These failures have made me question whether the very deep cuts to government funding to the London fire service contributed to that communication failure, resulting in more lives at risk and more lives lost. There ought to be a review of the impact of these cuts in the light of Grenfell. Will the Minister respond to that?
This report focuses on the horrors of the day itself. It is rightly critical of operations, but also clearly indicates the failures of others; for instance, the landlord. A further obvious failure of communication was the lack of internal signage in Grenfell. The floor numbers were not clearly marked and, where there were floor numbers, they did not reflect the additional floors created during the refurbishment. That leads me to conclude that the managers of the building were not sufficiently concerned about the building’s safety or appearance, and that this reflects what they thought about their tenants.
The Grenfell Tower inquiry report is thorough. It concludes with over 40 detailed recommendations. It is the utmost duty of this Government not just to accept but to respond with urgency to all these recommendations to assure Grenfell survivors that the loss of their loved ones was not in vain.
Neighbourhood Services: Government Support
Baroness Pinnock Excerpts(4 years, 10 months ago)
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Baroness Pinnock (LD)
My Lords, I draw the House’s attention to my registered interests as a councillor and a vice-president of the Local Government Association. I thank my noble friend Lord Greaves for initiating this important debate on the current state of, and future prospects for, neighbourhood services. I also draw the House’s attention to the fact that our Benches are less full than they would have otherwise been because today many are attending the funeral of a very special Liberal Democrat.
The National Audit Office produced an excellent report last year on the financial sustainability of local authorities. The data provided in the report admirably illustrates the spending cuts meted out to neighbourhood services. It states that there has been a 49.1% real-terms reduction in government funding since 2010, which translates into a 28.6% real-terms cut in spending power. However, that paints only part of the picture, as there is considerable variation between local authorities. For example, metropolitan and unitary councils have seen a 38% cut in spending power on non-social care services, and the shire districts a 25% cut. Even then, there is huge variation within those figures. As my noble friend Lord Greaves demonstrated, areas of greater deprivation are less able to raise funding through local taxation, thus the cuts there have been even greater. Fifty per cent is a huge cut in any local authority’s funding to provide services.
Further detail of service cuts in this invaluable report shows that libraries have experienced cuts of 33%, parks 27%, community safety 51% and highway maintenance 37%. The LGA survey of public perception last year shows that resident satisfaction rates with services is falling and, for highway maintenance, falling quite sharply—no surprise there for anyone who has to use local roads. The service cuts are becoming increasingly obvious to our residents.
What does that mean in practice for people who are, after all, paying more and more in council tax for less and less? Local authorities have protected spending on vulnerable adults and children in local authorities with those responsibilities, and focused budget cuts on neighbourhood services. In my own council of Kirklees, this has resulted in, for example, the Red House Museum being closed. It was the home of a close friend of Charlotte Brontë and features significantly in her novel Shirley. Of course, local people want to keep the Red House open to the public and a recent petition attracted more than 3,000 signatures from all over the world in a matter of days, but to no avail.
Libraries have been transferred for volunteers to run, while parks have much-reduced grass cutting, with some areas being neglected altogether. Local roads are in a poor state, as they are everywhere, with the Local Government Association reporting this year that funding available for the maintenance of local roads has dropped by £400 million. Across the country, residents have seen the closure of services such as libraries and museums, or a significant reduction in their opening hours, along with a considerable downgrading of the standard of service in, for example, parks and play areas. Provision has virtually disappeared in, for example, services for young people, or, as some people still call them, youth services. These cuts have been made by closing buildings and, in many cases, then selling those assets. In other cases, the service reduction has been achieved by cutting employees, as my noble friend Lord Greaves pointed out. We now have 34% fewer professional librarians than eight years ago and professional food safety inspector numbers have dropped by a staggering 60%.
The cuts to some neighbourhood services would be even worse if it were not for the increase in or introduction of fees charged by local authorities, as the report from the NAO clearly shows. Although it is difficult to be precise, the figures point to the fact that around 10% of the costs of providing neighbourhood services are now being borne by fees and charges, which means that in a sense they are just another tax on local people. Services are being diminished and the costs, either through taxation or charges, are rising as a direct result of the Government’s savage cuts to local funding. Here I disagree with the comments of my noble friend Lord Goddard, who believes that all this could be transformed by greater collaboration and more efficient, effective working. Yes, some of that can happen and that action taken by local authorities during the austerity years has shown that services can be provided more efficiently and effectively. However, you cannot keep cutting funding. In the end, public funding is an essential requirement for the delivery of public services.
The other way that councils have sought to manage the sharp reduction in funding is by increasing the number of volunteers. Volunteers are a huge asset to any council and enable local people to get involved and to shape service provision in a way that was not as readily available just a few years ago. Valuable though they are, however, volunteers cannot be expected to be completely responsible for council buildings or to take responsibility for running a service formerly provided by paid professionals. Volunteers are frequently drawn from the ranks of retired people, so the sustainability of a heavy reliance on them has to be questioned.
What are the consequences of these dramatic changes in public service provision? The impact on individual services is well documented in expenditure reductions, employee cuts, building closures, council tax rises and increases in fees and charges. What is not yet clear is the totality of the impact measured across a community. What the Government do not seem to appreciate is that councils are not simply the commissioners and providers of disparate services. All councils aspire to create healthy, safe and vibrant communities. Each of these service cuts has a different impact on individuals within a community: children who find that the football pitch is not being maintained to its former high standard; young people for whom diversionary youth services are appropriate, who now find alternative distractions, not always to their benefit or that of local people; readers wanting to use a now closed library, or unemployed people who need a library with public access to computers to complete job applications; and those suffering from mental ill health for whom a calming park or open space is a refuge, who find that it is now not as clean and well cared for. As for potholed roads, they are an unwelcome cost to individuals and businesses. Can the Minister let us know whether the Government have made an assessment of the cumulative impact on communities and individuals of this very significant reduction in neighbourhood services?
Parish and town councils in many areas have been able to take over the provision of some neighbourhood services to the benefit of local people. Can the Minister say whether the Government will actively encourage the creation of parish and town councils, including within metropolitan and unitary district council areas?
Neighbourhood services provide a vital lifeline for many individuals, as well as opening opportunities for those in more deprived communities. Flourishing communities with effective neighbourhood services help reduce demand for front-line services such as the NHS and social care. I hope the Government will begin to understand the enormous contribution of neighbourhood services to the well-being of local communities and begin to reverse the cuts in funding that have had a devastating impact on these much-valued and essential services. We on this side understand the vital nature of community services and will invest in them, and give powers to communities to make the decisions that affect them, for the well-being of all.
Homeless People: Prevention of Deaths
Baroness Pinnock Excerpts(4 years, 10 months ago)
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Viscount Younger of Leckie
I agree with the noble Lord, Lord Kennedy, and the rest of the House that one death in this way is one too many. I am very sorry to report that there was one further death in Wiltshire last night, which noble Lords may have heard of.
I will answer the noble Lord’s two questions. First, on the £10 million, we believe that this is enough, but clearly this is such a serious matter that we will keep this very much under review, but this is a figure that has taken account of the statistics. Secondly, of course I would be very pleased to meet the noble Lord and anybody else he cared to bring along to discuss the level of funding for this important matter.
Baroness Pinnock (LD)
My Lords, I draw the House’s attention to my local government interests. While the Minister has used the example of the Homelessness Reduction Act as being a good start, which I would agree with, the Government nevertheless have failed to repeal the Vagrancy Act, a nearly 200-year-old Act, which is still being used by police forces up and down the country to remove rough sleepers from the streets. In March 2019 the Ministry of Justice reported that, between 2014 and 2017, 6,518 people were found guilty under the Vagrancy Act. Does the Minister agree that the Act ought to be repealed at the earliest opportunity?
Viscount Younger of Leckie
This matter has not particularly come up in my brief. It was discussed, but I do not agree with it. Having said that, the noble Baroness has raised an issue that I will certainly take back and consider. As she will know, of course we are talking about deaths here rather than pure homelessness. Homelessness is bad enough in itself, but, as has been mentioned, the reasons for the deaths are based largely —52%—on drug misuse and alcohol misuse, and this is an area that I think we urgently need to look at. We are already, and have been for some time, in touch with the Department of Health and Social Care and also the DWP. This, I think, is the real essence of the problem.
Non-Domestic Rating (Lists) Bill
Baroness Pinnock ExcerptsMonday 30th September 2019
(4 years, 10 months ago)
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Baroness Pinnock (LD)
My Lords, it is always good to follow the noble Earl, Lord Lytton, on the subject of business rates because he has such considerable knowledge about how they work and what the consequences of any changes might be. Before I begin my comments, I draw the attention of the House to my interests as a vice-president of the Local Government Association and as an elected councillor on Kirklees Council. I welcome the Minister to his new role and look forward to our exchanges. I am sure they will be very positive and constructive.
The principle of the Bill, which is obviously to reduce the gap between revaluations of properties liable for non-domestic rates from five years to three, is one which we support. It is generally supported by the business community and, in essence, it should provide more certainty for businesses, as there should be less chance of wild fluctuations in valuations which are, after all, dependent on rental value, which is itself a reflection of the national and local economy at any one moment. However, such a change raises questions about implementation and wider concerns about the sustainability of the business rates regime.
The first question is one of practicality. Can the Minister confirm that additional funding will be made available to the Valuation Office Agency to ensure that revaluations can be fulfilled in the much reduced timescale? Obviously, he has also already referred to the current cost of £50 million, but clearly that has been over a longer timescale than the three years being proposed in this legislation.
Secondly, local government is now reliant on business rates income for basic service provision. Will the Minister confirm that any fall in the total national take from business rates will not lead to a reduction in funding from this revenue stream for local government? A briefing from the Local Government Association has drawn attention to the fact that more regular and accurate information is required from businesses so that the valuation office can provide more accurate revaluations. A consultation was apparently due last year but has not taken place. Can the Minister explain how more accurate information is to be supplied to the valuation office so that it can make judgments about revaluations in a timely manner?
Thirdly, we are concerned about the number of appeals that flow from any revaluation. Currently—as I am told in the Local Government Association briefing—there is a very large backlog of appeals, even from the 2010 revaluation, for which councils had to set aside more than £2.5 billion in case appeals were granted. That money is obviously set aside to cover those risks. That is a considerable amount of council funding to be set aside when councils are under such pressure for the provision of services.
Then there are more fundamental questions about the sustainability of the existing business rating regime. There have been many questions and comments in your Lordships’ House over the last few years on the failure of the current system to demonstrate that it is, in principle, fair to businesses. I suggest that a fundamental and radical reform of business rates is needed. The noble Earl, Lord Lytton, also drew attention to that. The Government are allocating funding in a desperate attempt to revive declining town centres. However, at the same time they fail to appreciate that one of the biggest costs for small businesses, including independent retailers, is the business rates bill. Meanwhile, town centre businesses are competing with online businesses, which are able to operate from out-of-town warehouses and pay significantly less, pro rata, in business rates. The model is broken and must be reformed.
The Liberal Democrats have agreed a policy for such reform, which would scrap business rates altogether and replace them with what we have called a commercial landowner levy. The basic principle of this tax system is to tax the land, rather than the property and the investment in improvements that sometimes goes with it, as the current system does. It is estimated that businesses would receive a significant boost to profitability in this way, particularly in those areas of the country that are in desperate need of a funding boost to kickstart a revival in their fortunes.
The Government have occasionally hinted at the need for a more substantial reform of business rates. Can the Minister provide any indication of whether businesses may anticipate some policy statement to that effect from the Government? Will he also reflect on the challenge to the climate change emergency of favouring out-of-town warehouses, highly dependent on road transport, over more local shopping habits, and whether the latter should be encouraged rather than the former? With that array of questions, I look forward to the Minister’s responses.