Planning Reforms: Net-zero Carbon Emissions

Baroness Pinnock Excerpts

Tuesday 3rd December 2024 Lords Chamber

[Baroness Taylor of Stevenage (Lab)]

There has been significant additional funding for affordable housing, and some of that will of course be used for the net- zero agenda. That funding was found in spite of the £22 billion black hole we found in our budgets, and I am very pleased that we have been able to do that. It is important that, as we drive forward a revolution in social housing, building more of it than we have seen for generations, we make sure that those new social homes do not have to be retrofitted and are at the highest standard of net zero.

[Baroness Pinnock (LD)]

My Lords, building regulations —approved document L, in fact—set out how properties should be heated, so it is within the Government’s remit to change the building regulations to ensure that new properties have non-fossil fuel sources of heating, or indeed to require them to do so. What consideration have the Government given to amending building regulations as soon as possible—not waiting for the NPPF to be published and implemented—in order to ensure that new homes get non-fossil fuel sources of heat?

[Baroness Taylor of Stevenage (Lab)]

I thank the noble Baroness. I am sure the NPPF will answer her question when it is published, before Christmas.

Grenfell Tower Inquiry Report

Baroness Pinnock Excerpts

Friday 22nd November 2024 Lords Chamber

[Baroness Pinnock (LD)]

My Lords, 72 people were killed by the fire that raged through Grenfell Tower in June 2017. It was the largest single loss of life in a residential building since 1945. That is the scale of the disaster and tragedy that we are debating, and we have heard a very powerful debate today.

Sir Martin Moore-Bick and his team have produced a forensic account of the events in phase 1 of the inquiry and a rigorous analysis of the causes in phase 2. There are 58 recommendations. All must be fully implemented if the 72 lost lives are not to be in vain. Sir Martin Moore-Bick’s powerful conclusion should be the stimulus for government action to address the failings he exposed. My noble friend Lady Pidgeon quoted what he has written, but it is so important that I am going to repeat it:

“the simple truth is that the deaths that occurred were all avoidable and that those who lived in the tower were badly failed over a number of years and in a number of different ways by those who were responsible for ensuring the safety of the building and its occupants”.

The conclusions of the phase 1 report clearly stated that the primary cause of the deadly fire was the ACM rain-screen panels and the use of combustible insulation foam, combined with a complete failure to comply with building regulations. Phase 2 of the report ruthlessly exposes those whose decisions resulted in 72 people dying. Key among them are the product manufacturers. Arconic produced the rain-screen aluminium composite material—ACM—which in fire tests was shown to be dangerously flammable, especially in the cassette form which was used on Grenfell. The report said that Arconic

“deliberately concealed … the true extent of the danger of”,

using the product “in cassette form”.

Then there were the manufacturers of the foam insulation. According to the report, Celotex

“embarked on a dishonest scheme to mislead its customers and the wider market”,

and Kingspan

“knowingly created a false market in insulation for use on buildings over 18 metres”,

by making claims it knew to be false—and 72 people died.

The report sought the evidence and came to the conclusion that the manufacturers have considerable responsibility for that appalling fire. Therefore, I have questions for the Minister. The Government have written to the manufacturers, but have they prevented them obtaining any further government contracts? Have they provided guidance to councils and other public bodies to do the same? The report clearly finds these product manufacturers culpable in the deaths of 72 people. When are they to be prosecuted for their actions, as the Prime Minister promised?

Other organisations are also culpable. Testing and certification bodies provided the necessary stamp of compliance for the use of the materials that enabled the fire to consume Grenfell Tower so rapidly. The British Research Establishment has a primary function to test whether materials can be used for specific purposes, including fire safety. Yet the report states that the BRE had

“a desire to accommodate existing customers”,

which is damning in itself, but a further comment in the report states that this was done to retain business at the expense of public safety.

The British Board of Agrément issues certificates for products and systems in construction. The materials used as part of the Grenfell Tower refurbishment needed a certificate of worthiness. The BBA published a materially wrong certificate covering the ACM cladding after the manufacturer refused to respond to requests for updated test results. As the report says, the BBA became

“the victim of dishonest behaviour on the part of unscrupulous manufacturers”.

The BRE was privatised in 1997, and the BBA is a regulated company working under a framework provided by UKAS, the national accreditation body. Are the Government considering the status of these companies that are critical to the building safety regime? Should the BRE return to being an organisation with government oversight where the profit motive is not the prime purpose?

The other main contributors to the tragedy are the tenant management organisation and the Royal Borough of Kensington and Chelsea. My noble friend Lady Thornhill has exposed the culture of incompetence and indifference to the Grenfell Tower residents that led to the way that decisions were made without their interests being paramount. Given what has been said, does the Minister think it is now time to reconsider whether councillors should have a greater role in the governance of local authority housing?

My noble friend Lady Brinton has drawn the attention of the House to the appalling failures in complying with building regulations and to the lack of plans for those with mobility problems. She is of course right, but what is going to be done to put those errors right?

The recommendations in the report include a reference to the arbitrary definition of a high-rise building as being more than 18 metres high or having at least seven storeys, which it concludes is unsatisfactory. Given that this definition is used in funding allocations for remediation, will the Minister provide the reasoning for the definition and say whether the Government are willing to change it?

Since 2017, thousands of people have been living in buildings with dangerous, flammable cladding. The National Audit Office report published this month is critical of the snail-like speed at which remediation is taking place. It estimates that it will be at least 2035 before all buildings identified will have been completed. This is completely unacceptable. People are living in flats knowing that the cladding on the external walls is dangerously flammable, yet it might be another 10 or more years before remediation is done. That is unacceptable. The impact on people living in those flats is emotionally draining as well as financially ruinous, as the costs of a waking watch and extortionate rises in insurance and service charges take their toll.

As remediation occurs, deliberate building defects are exposed—for example, where construction companies failed to insert the fire barriers required by building regulations. These then have to be put right, and the question is who pays?

Leaseholders do not own the building. That is the responsibility of the freeholder, many of whom are finding as many loopholes as possible in the legislation to avoid their responsibilities. The campaign group End Our Cladding Scandal wants the Government to protect all leaseholders from costs to fix all fire risks, not just cladding. Liberal Democrats agree—do the Government?

Seven years on, after 72 horrific deaths and many lives ruined, over half the identified buildings still have not been put right. Over seven years on from Grenfell, we now know what happened and why. What we do not know is when the Government will bring to justice those who are culpable, or when they will force construction companies and developers to pay for their responsibility in building blocks of flats that were dangerously unsafe. When will the Government confirm that leaseholders will not be paying the price for the misdeeds of others?

Seventy-two people died. We have a duty in their memory to put these things right.

Council Tax

Baroness Pinnock Excerpts

Tuesday 19th November 2024 Lords Chamber

[Baroness Taylor of Stevenage (Lab)]

My Lords, it is quite a stretch from council tax to farmers’ inheritance tax. However, we are listening closely to farmers’ concerns. In fact, the Environment Secretary met the NFU to clarify the changes in the Budget, and he met representatives again yesterday. The approach we have taken is fair and balanced, and the majority of farms will remain unaffected. Currently, 40% of agricultural property relief goes to 7% of the wealthiest claimants. That is not fair or sustainable and has been used by some to avoid inheritance tax. That is why we are maintaining the 100% relief up to £1 million and 50% after, which is an effective 20% tax rate, half the normal 40% rate. We have ensured that tax due can be paid over a 10-year period, interest free, and if land is transferred seven years before death then farmers pay no inheritance tax. I am assured that my colleague the Secretary of State for the Environment is listening to farmers and will continue to do so.

[Baroness Pinnock (LD)]

My Lords, I have relevant interests in the register. Since 2016, the previous Government imposed the social care precept on councils which have those responsibilities, and this nearly doubles the council tax rise each year. In my council, the social care precept accounts for over £220 of the council tax on average. Given that council tax is regressive, does the Minister agree that this is not a fair way to fund social care?

[Baroness Taylor of Stevenage (Lab)]

My Lords, the noble Baroness makes a good point. We have all seen the crisis in social care caused by the previous failure to face up to the issues that were confronting that sector, and we heard earlier from my noble friend Lady Merron about some of the steps that have been taken to address it. This year, the Government are providing at least £600 million of new grant funding for social care as part of the broader estimated real-terms uplift to core local government spending power of around 3.2%. We are committed to reforming adult social care and improving the quality of care for people in need, and that is why we have invested an additional £86 million next year for the disabled facilities grant, to enable people to stay well, safe and independent at home for longer. In October, we introduced legislation to bring in the fair pay agreement to ensure that those vital care workers, who we know so many of our vulnerable residents rely on, are recognised and rewarded for the important work that they do.

Barnsley and Sheffield (Boundary Change) Order 2024

Baroness Pinnock Excerpts

Monday 11th November 2024 Grand Committee

[The Parliamentary Under-Secretary of State, Ministry of Housing, Communities and Local Government (Baroness Taylor of Stevenage) (Lab)]

My Lords, the order before us today was laid before the House on 7 October. This instrument provides for the boundary between Barnsley and Sheffield to be revised so that the whole of the Oughtibridge Mill housing development will be in the city of Sheffield. It also provides for consequential changes to the corresponding ward and parish boundary. Both the councils concerned support the boundary change, as do both the affected parish councils.

Prior to coming on to the detail of the order, I must, with sincere apologies, draw the Committee’s attention to the correction slip issued to correct minor drafting and formatting errors. The first correction removes “Ministry of” where the order refers to the Secretary of State for Housing, Communities and Local Government. That is in the first and second paragraphs on page 1; in Article 2 on page 2; in the signatory box on page 5; and in paragraphs 2 and 6 of the Explanatory Memorandum.

The second correction provides a clearer map of the boundary change for the Explanatory Memorandum. A formatting issue meant that the map lacked clarity when it was inputted on to the order. With the help of the statutory instrument registrar, the correction slip now enables that same map to be sufficiently clear and to cover a full page. These minor errors in the original draft order are now corrected. The substance of the order, however, is unchanged. I hope that the reformatted map provides greater clarity for all.

Few reviews of the external administrative boundaries of local authority areas in England have been carried out since 1992. As a consequence, from time to time, there are small-scale boundary anomalies between local authorities caused by new developments and population change. Although, in practice, local government will put in place informal arrangements to deal with such situations, the very fact that it needs to do so is not conducive to effective and convenient local government. Such anomalies can also impact on perceptions of community identity: where residents do not feel part of an area, for whatever reason, they are potentially less likely to take an interest in their council.

On 14 April 2022, the Local Government Boundary Commission for England received a formal request for a review of the boundary in this area, made jointly by Barnsley Council and Sheffield City Council. The existing boundary runs along the River Don, but this has resulted in the Oughtibridge Mill development being split between the two councils. Both councils told the Local Government Boundary Commission for England that, due to the geography of the local communities and the existing road layout, the impact on service demand would mostly be felt by Sheffield Council, and that services would be best delivered by that council.

The Local Government Boundary Commission for England undertook a review of the boundary and consulted those affected. Of the 19 responses, there was a majority in support of the boundary change. Following the consultation, the final recommendation of the Local Government Boundary Commission for England was to transfer the area of the Oughtibridge Mill housing development in Barnsley into Sheffield.

This would move a section of the councils’ shared boundary at the River Don to encapsulate the Oughtibridge Mill development of 12 existing and 284 future dwellings. A recommendation to realign the ward boundaries was also made, as well as a suggestion for the realignment of the parish boundaries. After having received the final recommendations, the Secretary of State also allowed four weeks for interested parties to make representations. The department received no such representations.

The instrument I have brought forward provides for the boundary between Barnsley and Sheffield to be revised so that the whole area of the Oughtibridge Mill housing development will be in the city of Sheffield. I beg to move.

[Baroness Pinnock (LD)]

My Lords, I thank the Minister for her introduction to this statutory instrument and for highlighting the changes made. I know she has the misfortune of being from the south of England but, in Yorkshire, we call it “Orterbridge”, rather than “Outerbridge” as the Minister pronounced it. I know we have a lot of strange pronunciations in Yorkshire, but I think people there would appreciate it being pronounced as they do.

This is a sensible proposal. Populations move and expand; in response, political and administrative boundaries should move to make them fit local perceptions of place. While local government can and do respond informally to boundaries that do not make practical sense, such as by making arrangements about bin collections, local government boundary changes per se are less frequent. I wonder whether this is because the process is quite long. In this case, as the Minister said, the relevant local authorities made a formal request in April 2022, and despite broad agreement—the two local authorities in fact proposing the change—it has taken over two years to reach this final stage. Does the Local Government Boundary Commission encourage proposals for boundary changes that are supported by the relevant local authorities, especially where there is a clear anomaly?

One situation that is not raised in the Explanatory Memorandum is what happens if a councillor of either the existing parish or the existing council lives in the area to be moved to another council. If the councillor qualifies only by residency, I presume that that would result in their being unable to continue once their term of office ends. It would be helpful if the Minister could confirm that that is the case. I assume that, in this instance, that will not arise, because otherwise—I hope—it would be within the explanation. It would be useful to understand what will happen if somebody wants to continue serving their population but is then moved. From Barnsley to Sheffield, that is a big move. I jest not.

I have spoken to colleagues in Barnsley who agree that residents in Oughtibridge will feel that they belong to Stocksbridge in Sheffield, which is where they are moving, so they support the proposal in this statutory instrument.

[Baroness Scott of Bybrook (Con)]

My Lords, as the Minister said, this order provides for the boundary between Barnsley and Sheffield to be revised so that the whole of the area of Oughtibridge Mill housing development will be in the City of Sheffield, as well as providing for consequential changes to corresponding wards and parish boundaries. I am pleased that the councils concerned both support boundary change, as do the affected parish councils. I also note that the LGBCE published a draft of this and asked for responses locally. There were 19 responses, I understand, including six from residents, five of whom were in favour and only one opposed. Therefore, one can say that the proposal is accepted locally.

His Majesty’s loyal Opposition do not oppose these sensible boundary changes, as they suit not only local residents but the relevant public authorities and bodies. I also accept the late minor changes in the draft SI.

Social Housebuilding

Baroness Pinnock Excerpts

Monday 21st October 2024 Lords Chamber

[Baroness Taylor of Stevenage (Lab)]

I am grateful to the noble Lord, Lord Best, for his work with the Devon Housing Commission; I have been very interested to read about its work. The Government believe it is right that long-standing social tenants should retain the right to purchase their property at reasonable discounts, and so we will not be ending the right-to-buy scheme. However, many of the homes sold since 2012 have not been replaced and, as our manifesto said, the Government are reviewing the increased right-to-buy discounts, introduced in 2012. We will bring forward more details and secondary legislation to implement changes later this year. We will also review right to buy more widely, including looking at eligibility criteria and, in particular, protections for newly built social housing. We will bring forward a consultation on that shortly.

[Baroness Pinnock (LD)]

My Lords, does the Minister agree that affordable housing and housing for social rent are quite distinct offers? Frequently, the Government, previous and current, seem to fall into the pattern of using the word “affordable” for housing that is seriously not affordable and not distinguishing social housing for rent. Will the Minister be very clear that, when we talk about the need for social housing, we talk about social housing and not affordable housing?

[Baroness Taylor of Stevenage (Lab)]

I have made my views on that subject very clear in this Chamber many times before. We intend to support the delivery of the right kind of affordable homes to meet local needs. Our proposed changes to national planning policy will set out clear expectations that housing needs assessments must consider the needs of those requiring social rent homes. Local authorities should specify their expectations for social rent as part of a broader affordable housing policy. We are also removing the prescriptive requirements that currently tie local authorities’ hands, with respect to particular types of home ownership products. This will allow them to judge, as they are best placed to do, which type of housing is best for their local area.

Holocaust Memorial Bill

Baroness Pinnock Excerpts

2nd reading
Wednesday 4th September 2024 Lords Chamber

[Baroness Pinnock (LD)]

My Lords, I am speaking from the Liberal Democrat Front Bench but nothing I say commits individual Members to share my opinion. As we have heard in the debate, there are differing views across the House. As this is a hybrid Bill, I will not attempt to reflect on what has already been said. Rather, I will give my personal interpretation of the Bill and its implications.

It is astonishing that it has taken nearly 80 years for our nation to commit to a fitting national memorial to the Holocaust. It is just as surprising that it has taken over 10 years since it was first mooted for a decision to be made. It is thoroughly disappointing that a proposal to commemorate the Holocaust and to learn from its horrors has become so mired in controversy.

The proposal for a memorial and learning centre has overwhelming support. The disagreements have arisen, first, from the way the site in Victoria Tower Gardens was chosen, as it appears to have bypassed normal consultation processes. The commission report of 2015 identified three sites, none of which was Victoria Tower Gardens. This was first proposed by the UK Holocaust Memorial Foundation, which had been tasked with creating the memorial. The Government accepted its recommendation to use Victoria Tower Gardens in 2016. Widespread consensus was lost at that point, to the detriment of the whole project. However this was done, whoever did it must take some responsibility for creating a controversy from a consensus.

The second key area of disagreement arises from the practical implementation of the principle of a memorial and learning centre in Victoria Tower Gardens. The co-chairs of the UKHMF have stated:

“To establish a new national Memorial at the very heart of Westminster is an ambitious aim. Only the most serious, momentous and profound subject matter could justify such a step. With the Holocaust—the systematic attempt by a modern, civilised state to exterminate the whole Jewish people—we have exactly such a reason”.


It seems that the gardens site was chosen because, although nearly always connected with conflict and war, the Holocaust and other genocides were the consequence of particular decisions made by Governments.

Making the controversial decision about the site was just the start of a series of challenging decisions to be made. The first was whether the learning centre and the memorial should be co-located. I accept that putting the memorial and the learning centre together could be very moving and a powerful statement. However, I am not convinced that what is being proposed achieves that noble aim.

The next decision was how to fulfil the aims of the project while accepting the differing and legitimate demands for use of the gardens. By minimising the footprint of the design, just 7.5% of the gardens is used. Of course, the footprint omits the wider impact on the gardens, which, as we have heard, is closer to 20%. The consequence is that the project’s sincere desire for a prominent statement of purpose and intent has been seriously compromised.

A number of designs were submitted to the competition to create the design for the memorial and learning centre. These may have been bolder in concept and thus succeeded to a greater extent in achieving the visual prominence at the heart of the project. Perhaps the Minister can share what those designs were like and we can see them and decide whether we think they are better than what is before us.

As we have heard throughout this debate, there is huge concern about the consequences of having 1 million additional users of the gardens each year—apparently there is an expectation of about 3,000 people every day. I have read the 408 pages of the planning inspector’s report. It goes into significant detail on the practical implications of the design on listed buildings, heritage sites, UNESCO world heritage sites, trees, transport and security. Nevertheless, it gave a green light to the planning application. However, what cannot be ignored is that the nature of Victoria Tower Gardens will change forever due to the number of visitors that are expected.

Finally, I want to question the clarity of thinking around the fundamental purpose of the memorial and learning centre. We have heard during the debate today that many Members believe that the learning centre will focus on the Holocaust against the Jews. I would support that if that were the case, but it is not. As some Members have indicated, what is being proposed is that the Holocaust against the Jews should be seen in the context of other genocides perpetrated at the time against Roma Gypsies, gays in Germany and other parts of western Europe and disabled people, and subsequent genocides such as those in Rwanda and Darfur—we could go on—and sadly many others.

The learning centre apparently aims—and I think the noble Baroness, Lady Harding, pointed to this—to expose the response of democracies and Governments to the challenges of the Holocaust and genocide. I am not convinced that a digital and immersive experience is appealing to schoolchildren, in particular. They respond to seeing things that link with the past. I live near Huddersfield and am a vice-chair of the university where the Holocaust centre is established. I went round and saw the shoes, the labels, the striped suits and the tiny suitcases. They are the moving part of that learning centre. It is not the photographs so much; relating to human beings who were exterminated is what is moving. That is what a learning centre should achieve if we are to tackle not only anti-Semitism but, as the noble Lord, Lord Cameron, said, discrimination, racism, intolerance and hate in our society.

Having listened throughout this debate to many well-argued and evidenced assessments, both in favour and against, I can only say how relieved I am that, having spoken today, I am disqualified from sitting on the Bill Committee.

I will end by quoting from Eleanor Rathbone MP, who said in the debate on this very issue of the Holocaust in the House of Commons in 1943,

“let no one say: ‘We are not responsible.’ We are responsible if a single man, woman or child perishes whom we could and should have saved”.—[Official Report, Commons, 19/5/1943; col. 1143.]

Perhaps that should be the abiding goal of the memorial.

King’s Speech

Baroness Pinnock Excerpts

Tuesday 23rd July 2024 Lords Chamber

[Baroness Pinnock (LD)]

I thank the noble Lord, Lord Bichard, for making such a powerful case for change. I shall read his speech in Hansard, because it is a cry to all Members of this House, particularly those on the Government Benches, for what we have to do to change the nature of governance in this country.

In a different tone, I welcome the noble and learned Lord, Lord Hermer, particularly because he put such emphasis on upholding the rule of law. It was so powerful to hear that. I look forward to many exchanges with the noble Lord, Lord Khan, in this House in the months, and maybe years, ahead.

My noble friend Lord Thomas of Gresford was right when he said that the Liberal tradition is always to want more reform. In the light of that comment, I say this: our creaking constitution and outmoded governance arrangements, at every level, are in urgent need of reform. The paltry offerings from the Government in this gracious Speech leave much to be desired. It would be good for them to make a bit more of a challenge.

It is not surprising that much of the time in this debate has been spent making different arguments about reforms to this House. On the one hand, the noble and learned Lord, Lord Keen, made a robust defence of the status quo; on the other, my noble friends Lord Wallace and Lord Thurso made the powerful case for fundamental reform and an elected House. We have heard lots of ideas in between, which I hope the Government will listen to and reflect on, because there were some good ideas in the huge array of what has been said today.

That moves me on to democracy—maybe—and elections. My noble friend Lord Rennard said that we hope that the Labour manifesto pledges to introduce automatic voter registration and to remove voter ID will be enacted in the lifetime of this Parliament. He is right to make the case for doing it more promptly than perhaps is suggested in the gracious Speech.

As my noble friend stated, the Liberal Democrats want fairness in all our electoral system and an equal voice for all in making the decisions that affect them at the most local level possible. Therefore, we welcome the principle of devolution to all parts of England. However, what is not clear is whether this will just be further delegation of resources with many Whitehall strings attached—which has been the nature of it so far—or something more meaningful. As my noble friend Lord Scriven argued, fiscal devolution, as well as policy devolution, will be very important. If that is unleashed, it will result in the economic growth that this Government want and that the noble Lord, Lord Bichard, pointed to.

Unfortunately, it seems that the model adopted will continue to be that of a single elected mayor. That creates a whole new democratic deficit whereby key strategic decisions will be made by an elected mayor, but without the proper accountability provided by democratically elected members of different political persuasions. That arrangement will not do and will not stand the test of time.

I move on to devolution to the nations of our country. We have heard calls from noble Lords who have direct experience of devolution in Wales, Scotland and Northern Ireland, and my noble friends Lady Humphreys and Lord Bruce referenced the importance of change within those devolution settlements and that a more comprehensive settlement is long overdue. A piecemeal approach to nationwide devolution is in no one’s best interests, least of all those of the people it is meant to serve. We on these Benches will always press for a constitutional settlement that includes a federal settlement for all the nations of our country.

Meanwhile, in the great regions of England, we are still waiting for real devolution. I thank the noble Lord, Lord Warner, for what he said about Yorkshire, and remind Members opposite that my home county of Yorkshire has a similar population to that of Scotland, and double those of Wales and Northern Ireland. Yet that great county of Yorkshire has had only fragmented and limited devolution, and it is singularly lacking in its democracy. Give us devolution, so that we in Yorkshire can get on and make our county thriving again.

That leads me to talk about what I regard as the appalling lack of reference to local government in this gracious Speech. The noble Baroness, Lady Eaton, talked about that, as did my noble friend Lady Hamwee. The one positive announcement that has been made is to restore “local government” to the title of the department—thank you. All politics is local and all public service delivery is local, and I hope that the Government will be mindful of this. According to the LGA, almost one in five councils is teetering on the verge of issuing Section 114 notices. In unitary councils, including metropolitans in big urban centres, about 80% of their budgets will be spent on adult social care, support for vulnerable children and SEND. A steeply declining resource is left for all other local services, which may explain the state of our roads. This is not sustainable, even in the short term. The Government have ambitious targets for housebuilding and planning reform, but these services cannot be divorced from the rest of local government. Planning applications require assessments by many local services, including highways and the environment. I sincerely hope that the Government understand the predicament facing local government, and that that understanding will lead to desperately needed further resources.

This wide-ranging and fascinating debate has demonstrated that many in this House are urging the new Government to use their huge majority to transform our politics and governance. Unfortunately, the meagre offerings in this gracious Speech leave room for much more. Having said that, it is at least positive that the changes proposed will make a small progressive step in the right direction.

Renters (Reform) Bill

Baroness Pinnock Excerpts

2nd reading
Wednesday 15th May 2024 Lords Chamber

[Baroness Pinnock (LD)]

My Lords, I remind the House of my relevant interests as a councillor, a vice-president of the Local Government Association and an accidental landlord. I too thank all the groups that have provided informative briefings on a wide range of issues, which I and my colleague, my noble friend Lady Thornhill, have found immensely useful.

There is much in the Bill that we support. Legislation that rebalances the rights and responsibilities of landlords and tenants in the private rented sector is long overdue. However, the context in which the Bill is being debated is important. Much has changed in the rental sector since the Housing Act 1988. The private rented sector has continued to grow, with, according to the latest figures from the ONS, 5 million households renting from a private landlord—the equivalent of 20% of the housing market—whereas 17%, or 4.2 million households, are renting in the social housing sector.

The private rented sector has doubled since 2002. The stark fact is that for many households, especially families with children, private rent is the only option. Even 20 years ago, the first choice for families on low incomes would be social housing. Rents in social housing are within the local housing allowance, and there is a much higher degree of security. That is not to deny that some social housing fails to be of a decent standard, and that some social landlords neglect the needs of their tenants. However, the right-to-buy legislation without the right-to-build replacement housing has resulted in a large reduction in social housing, putting the most vulnerable households at risk of homelessness or leaving them with limited, or often no, choice as to where to live.

The solution to this fundamental problem is not provided by the Bill. What is needed is a substantial increase in the number of homes for social rent being built every year. This is not “affordable housing”—the vast majority of homes provided through that route are not for social rent. The Government have a much-vaunted principle of choice for consumers but tenants needing housing at a social rent are not given that choice. Can the Minister explain why the Government deny the choice of housing at a social rent to so many families in need?

I will be more positive now. Many of the changes in the Bill are positive, although they do not go far enough, as my noble friend Lady Thornhill will demonstrate. The key change must be the abolition of Section 21 eviction notices—without delay. The disruption to family life by the constant need to find another rental property is not considered anywhere near enough by the Bill. Children having to change schools on a regular basis because of the insecurity of tenure must be a thing of the past. Ending Section 21 and implementing the decent homes standard are key to the Bill.

Apart from the fundamental policy changes that the Bill offers, there are inevitably consequences for areas of housing provision that may not be fully recognised by the Bill as it stands. My colleague in the other place, Helen Morgan MP, raised the issue of decent housing standards being required for military accommodation. The Government gave her a commitment that they would table an amendment to do so. On these Benches, we look forward to that amendment from the Government in Committee.

Student accommodation is the first issue I want to raise. On Report in the Commons, the Government introduced new provisions regarding student accommodation, as the Minister outlined. This has the effect of enabling landlords of student accommodation to ensure that student tenancies end with the academic year. I ought to say, perhaps, that I am vice-chair of the council of the University of Huddersfield. I know that many courses start in January and many, particularly master’s degree courses, last 15 months. Many students, particularly international ones, need permanence in their accommodation. I would like to hear from the Minister what protections there are for these students. Can she explain the reasons for expecting students to pay six months in advance for accommodation?

I turn now to what I hope are the unintended consequences of the Bill. With regard to social housing, the National Housing Federation raised concerns in its briefing about the impact of ground 1B, rent to buy, in the possession orders because in its current form it prohibits social landlords from converting rent-to-buy properties into social or affordable rented homes. Perhaps the Minister can consider concerns from the sector on this and on ground 6 where social landlords are redeveloping properties. I am sure that we can overcome these issues but I think they are very important to social landlords.

In its helpful briefing, the Domestic Abuse Housing Alliance seeks remedies for specific concerns regarding the use of the repossession order at ground 14, where safeguards are especially needed for the victims of domestic abuse; and ground 8A regarding rent arrears, where women in controlling relationships may not have the financial oversight of domestic bills and fall foul of that particular reason for repossession.

Finally, there are 10 clauses which give new statutory responsibilities to local housing authorities. For these reforms to be effective, it is vital that enforcement powers are clearly defined and able to be implemented; therein lies the crux of the challenge for government. Councils are experiencing very significant financial pressure—local authority external auditors are regularly making that case. The Bill gives councils the right to retain financial penalties but, quite obviously, that will be inadequate to fund the enforcement teams necessary. The Minister rightly pointed out that the new burdens agreement between government and local authorities is to fully fund new duties. However, in practice that rarely occurs in full, so the Bill relies on strong enforcement; the powers are there, but currently not the means. I really look forward to the Minister reflecting on that, because the whole of the Bill depends on enforcement powers being effective.

It is good that the Bill is tackling some of the long- standing injustices in the sector. However, to be the sea-change Bill that was promised, it needs to put consideration of individuals and families at its very heart —and on that important test, currently the Bill fails.

Combined Authorities (Finance) (Amendment) Regulations 2024

Baroness Pinnock Excerpts

Tuesday 7th May 2024 Grand Committee

[Baroness Pinnock (LD)]

My Lords, I remind the Grand Committee that I have relevant interests as a vice-president of the Local Government Association.

As we heard from the Minister, these regulations extend the provisions of the 2017 order so that it applies to the new combined county authorities. As the noble Baroness, Lady McIntosh of Pickering, said, mayoral authorities require funding to operate as organisations. However, in extending the number of mayoral authorities, as has been said, the Government failed to publicise that the consequence would be an addition to the overall council tax bill for households in those areas. Perhaps the Minister could tell us what the average mayoral precept currently is for combined authorities. She may not know, but it is all right; I have some examples, so it will be okay.

Greater Manchester’s mayoral precept, which includes its fire and civil defence authority, is £112.95 for band D. I dug further into that figure and, on its own, the mayoral precept is only £31.75. What I want to raise here is that, in the interests of transparency and accountability, that precept ought to be separated on people’s council tax bills. Currently, the council tax is set by the local authority and there is the adult social care precept, which the Government insist on. Then there is the police precept and the mayoral precept, which includes fire and civil defence authority funding. The latter should be separated out, so that there is a clear indication of what is for the fire and civil defence authority and what is for the mayoral function. I hope the Minister can assure me that that will happen or, if she cannot, can tell me what we can do to ensure that it does.

My next point is that the 2017 order, which I have found, sets the governance requirements for acceding to the mayoral precept. The Minister said that a two-thirds majority would usually be required—I wrote it down—to confirm a mayoral proposal for the precept. If it is not “usually”, what is it? I think it needs to be clearer than “usually”. The 2017 order says two-thirds, but that a three-fifths majority is required for Tees Valley alone. I think this needs to be clearer than it usually being two-thirds.

Those are my two concerns: the first is about getting transparency and the second about the governance arrangements for decision-making. Obviously, if we have combined authorities and mayors then they have to be funded, which is an additional ask of council tax payers. For most authorities, the social care precept and this would add around £250 to people’s council tax bills, so we need to know whether they will get value for money.

[Baroness Taylor of Stevenage (Lab)]

My Lords, as this is the first local government item on the agenda since the elections, I think it is right to congratulate all those who stood for election and took part in the democratic process at a local level. It just shows, again, that local government matters. My congratulations to the noble Baroness, Lady Pinnock, on her election.

Democracy was the winner on Thursday. There is no better illustration of that than the West Midlands election, which was won, in an electorate of some 3 million, by 1,500 votes. Apparently, there were 1,500 ballot boxes in that election, so, if there had been one extra vote in each of those ballot boxes, the result might have been different. That is a great illustration of why local democracy is important.

We have no intention of creating any unnecessary controversy over this straightforward SI, which extends the powers already granted to mayoral combined authorities to the more recently created combined county authorities. I am pleased to see that different geographic, social and economic issues that exist in the two-tier areas of the country are now being recognised and accommodated, and that this SI puts in place the financial mechanism to enable that.

As the Minister will be aware, during the passage of the then Levelling-up and Regeneration Bill, we had the opportunity to express our reservations regarding the governance arrangements for combined county authorities. It will take some testing of those new arrangements in practice to see whether the topics we were concerned about create any ongoing issues. For example, the lack of representation of district councils, which have the planning, housing and economic development powers, on combined county authorities has the potential to frustrate mayoral plans, if they are not used properly. I hope that enough thought will be given to the mayoral structures as they move forward to smooth this path; the noble Baroness, Lady McIntosh, referred to this issue.

That said, it is absolutely appropriate that all areas, including those with two-tier government, can benefit from the combined authority approach. How much flexibility will the Government allow to those authorities outside of urban areas to create county combined authorities that work for the geography, particularly the economic geography, of their areas? As an illustration, the inflexibility of Boundary Commission reviews can, on occasion, act as a blocker to structural arrangements that would facilitate the progress of developing economic areas. It would be a shame if people were stopped from doing that just because of an arbitrary boundary somewhere.

It would be wrong to consider any SI relating to local government finance without referring to the wider picture of the extreme financial pressures facing local government. I am sure that the Minister will have all those stats that get rolled out to us every time we mention this in the Chamber—they are the Government’s smoke and mirrors to make it look as though they are piling cash into our sector—but, of course, those on the front line know better. The increasing demand driven by costs in adult care, the increasing number of young people needing an urgent and comprehensive response to their special educational needs and the tsunami of homelessness as rents in the private sector soar ever upward, leading to mass evictions on affordability grounds—as well as the unfunded inflationary pressures across the board—are seeing councils struggle to make ends meet and, as we have seen on occasion, be unable to continue without intervention. Nothing in this SI will change any of that.

We all know that the bulk of the new funding for local government is coming from the pockets of hard-pressed council tax payers—another issue referred to by the noble Baronesses, Lady Pinnock and Lady McIntosh. The Local Government Association talks about figures

“based on the assumption that councils will raise their council tax by the maximum permitted without a referendum”,

leaving councils with tough choices about whether to increase council tax bills in order to bring in desperately needed funding at a time when they are acutely aware of the significant burden that this places on households in the middle of a cost of living crisis.

Can the Minister tell us the overall cost of the new mayoral combined authorities? The noble Baroness, Lady Pinnock, talked about individual levels of precept but do we have a figure for the overall cost for those combined authorities and county combined authorities? None of these new structures comes free. It will be interesting to see, over time, whether the economic growth that the new structures are intended to generate justifies the cost of setting them up.

The Minister spoke about transparency in combined authority and combined county authority finance, but we all know of the dysfunction there has already been in the local authority audit sector. Some 300 councils missed the deadline for audit at the end of 2022-23. Only three of them—1% of councils—were on time. Some 150 have not been audited since 2020-21; 61 have not been audited since 2019-20; 22 have not been audited since 2018-19; and 10 have not been audited since 2017-18. This is a really important reassurance for the public about how public money is spent. There is no better illustration of the importance of this than the issues that have arisen in Tees Valley.

The Government’s stated objective for setting up these new structures is to enable the levelling-up agenda. However, this year has seen the fifth one-year settlement in a row for councils, which continues to hamper financial planning and financial sustainability. Only with adequate long-term resources, certainty and freedoms can councils or combined authorities deliver world-class local services for our communities, tackle the climate emergency and level up all parts of the country. Can the Minister tell us what work the Government are doing to ensure that short-term funding settlements will not continue to hold back councils and combined authorities from achieving the ambitious aspirations that they have for their communities? Until those long-term funding arrangements are in place and designed to provide the stable, sustainable platform to deliver what is necessary, all this tinkering about is just moving deckchairs on the “Titanic”.

That said, we agree that there is a financial and democratic need for transparency in the funding of combined authorities; in granting equal powers to mayoral combined authorities and combined county authorities in this regard, this SI does the job it is intended to do. We will not oppose it but I am interested to hear the Minister’s answers to our questions.

--- Later in debate ---

On the comment about the two-thirds majority, perhaps I could reiterate, to avoid confusion, that what I was referring to is that the constituent members of a combined county authority may impose amendments to the mayor’s draft budget if supported by a significant majority—usually two-thirds. I say “usually two-thirds” because, by all accounts, the numbers are not always easily divisible. Therefore, it needs to be as close thereafter to a two-thirds number as we can get. Given that that will not necessarily be a whole person, we need to take that into account. The two-thirds is indicative and an alternative measure may be needed if it is not divisible easily.

[Baroness Pinnock (LD)]

Well, this is going to be interesting. The East Midlands will have eight constituent members with two from each authority, as I understand it, so neither two-thirds nor three-fifths works numerically. Do we take the bigger number or the smaller? Do we round up or down?

[Baroness Swinburne (Con)]

I am going to write to the noble Baroness with the exact number and calculation that will be used in the East Midlands situation. Ah—somebody knows the answer. It works out as two-thirds or more, so it would go up not down. There we go.

On the precept overall, the regulations provide for decision-making processes applying to those mayors who set a precept, a process which involves the constituent members who have the ability to challenge and, with a significant majority, amend the mayor’s plans for that precept. Where the mayor exercises police and crime functions, the referendum principle for the PCC component of the mayoral precept has been set at the same level as for PCCs. The Secretary of State has been clear that he will consider any increases set by mayors when determining referendum principles in future years, so there are measures that allow us to intervene if need be.

It is true that local audit is vital to support democratic accountability and in providing the assurances for local people that their elected representatives are doing what they should be doing with the budget that they have. The Government are working with the Financial Reporting Council and others in taking action to deal with the significant backlog of local audits in England and put the system on a sustainable footing. In February this year, system partners, including the Government, issued a joint statement setting out a package of measures to meet these challenges. During February and early March, DLUHC and the National Audit Office consulted on core elements of these proposals. We are reviewing that consultation response and will set out our intentions and respond in due course. It is an urgent matter and we are trying to get to grips with it. I am not taking it lightly; it really does need to be dealt with.

A number of other questions have been put but I think it will be of interest to Members to have proper, detailed answers, rather than what I am scrabbling together here. I will come back with written responses to those, but in the meantime I commend the instrument to the Committee.

Leasehold and Freehold Reform Bill

Baroness Pinnock Excerpts

Committee stage
Wednesday 24th April 2024 Lords Chamber

[Baroness Pinnock (LD)]

My Lords, I have added my name to Amendment 55, in the name of the noble Baroness, Lady Taylor of Stevenage, because it seems to me, as it does to the noble Baroness, that this is one of the clear injustices in the current leaseholder-freeholder relationship. The amendment is rightly restricted to the abolition of forfeiture of a long lease.

I thought it was straightforward until I heard the noble Lord, Lord Truscott, outline some of the issues that he believed could be addressed only through forfeiture. I was surprised that we have to go to such draconian ends to deal with a fairly straightforward neighbour dispute.

[Lord Truscott (Non-Afl)]

The problem is that, if you try to enforce a lease, what is your route? The only other route would be to go to the High Court, and that would be a very lengthy process. I am saying that the threat of forfeiture is often enough for people to see sense. I have never come across a case in which people have actually gone through the whole process of forfeiture.

[Baroness Pinnock (LD)]

I thank the noble Lord for expanding on that.

It would be interesting to hear from the Minister whether there are any statistics regarding freeholders using the forfeiture system to address not the issues that are normally referenced—failure to pay ground rent or an accumulation of three years or more of debt—but breaches of the lease. It would be helpful to understand all that.

As the noble Baroness, Lady Taylor, has said, if the payment in lieu is more than £350, or is outstanding for more than three years, the freeholder is entitled to claim repossession—and then all the equity in the property is lost, of course. When I first looked at this, I could not see how it could possibly be right. I remember that, at Second Reading—I was just trying to find it in Hansard—the Minister said that the Government were considering bringing forward an amendment to address this issue. It is unfortunate that that has not been forthcoming in the time that has elapsed between Second Reading and Committee. Perhaps in her reply, the Minister can say whether the Government intend to bring an amendment on Report. It would help us resolve what is, on the face of it, a complete injustice. It would be sufficient if the Minister said that that is going to happen, and maybe those of us who have signed the amendments could have a meeting with her to discuss it, if necessary.

[Lord Bailey of Paddington (Con)]

I support this amendment. Although in his intervention the noble Lord talked about how to control peoples’ behaviour when they have misbehaved and breached their lease, it should be taken into account that the threat of forfeiture is held over leaseholders, in a very draconian fashion, for the smallest infraction. More importantly, it is used to enforce such things as the flagrant and inequitable boosting of service charges. If you are in dispute in this situation, you are told you will end up having to pay court fees. You are told that, if you do not pay—

--- Later in debate ---

Moved by

[Baroness Pinnock]

63: After Clause 50, insert the following new Clause—
“Report: restrictions around ground rent investments(1) Within six months of the day on which this Act is passed the Secretary of State must lay before Parliament a report outlining the impact of this Act on ground rent investments.(2) The report in subsection (1) must also make an assessment of the impact of—(a) prohibiting future ground rent investments, and(b) encouraging divestment from existing ground rent investmentson leaseholders and freeholders.(3) In this section “ground rent investment” means investment by a pension fund or other type of fund in leaseholds for the purpose of collecting ground rent.”Member’s explanatory statement
This is a probing amendment that would require the Government report on the impact of this Act on ground rent investments, and the impact of prohibiting future ground rent investments and encouraging divestment from existing ground rent investments on leaseholders and freeholders.

--- Later in debate ---

[Baroness Pinnock (LD)]

My Lords, Amendment 63 in my name was tabled to probe the impact of the proposals in the Bill on ground rent investments, and the effect of prohibiting future ground rent investments, and encouraging divestment from existing ground rent investments, on leaseholders and freeholders. The Government’s intentions appeared to be clear. In 2022, the Leasehold Reform (Ground Rent) Act effectively set the ground rent on new leases at zero, so the direction of travel seemed set. Further, last November, the Government launched a consultation on ground rents, which included capping the charge at a peppercorn rate for existing leaseholders.

The Secretary of State said at the time that the aim was to help protect those leaseholders who

“can be faced with ground rent clauses in their leases which result in spiralling payments with no benefit in return”.

Now, apparently, the Government have backed off from a fundamental reform and seem set on phasing out ground rents over a period of 20 years and setting a cap on ground rents at £250 per annum.

The fundamental question we have to ask is: what benefit do leaseholders accrue from paying a ground rent of, for example, £250 a year? The answer, is, of course, that ground rents really are a something-for-nothing payment—I bet you would not get away with this in Yorkshire. If the Government are determined, as they initially said they were, to bring fairness to leaseholders, then ground rents would be consigned to history.

However, on the other hand, ground rents provide a steady income for institutions as well as individual freeholders. It seems that the pressure on the Government to row back from abolition or peppercorn was sufficient to cause considerable backpedalling.

The Society of Pension Professionals—which the noble Lord, Lord Truscott, referred to six hours ago—has examined this issue as a result of much being made about the potential impact on pension funds of reducing ground rents to either £250 or zero. The following is a statement from the Society of Pension Professionals:

“Freeholders are already prevented from charging ground rents on new long leases (of more than 21 years), so it’s perhaps understandable that the government wants something similar for existing long leaseholders. The government estimates that capping ground rents at £250 a year would decrease the value of affected property assets by £14.6 bn or £27.3 bn if rents are reduced to a peppercorn. If these proposals become law, there may be some short-term impact on pension fund investors through asset values being written down. Certain pension funds may also be impacted where they own freehold titles directly, although that will be less common. The effect of these proposed adjustments is likely to be more significant for such investors than the loss of annual ground rent income over the term of the lease”—


I emphasise this next part—

“but the scale relative to total assets is probably not that significant for most in the long-run”

That is an authoritative statement, and I would like to hear a full response from the Minister—probably in writing given the late stage of the evening—as this reform is a critical part of leasehold reform. Before Report, we need to see the detailed proposals from the Government and a full explanation of their reasons.

In conclusion, these Benches want the iniquitous system of ground rents to be abolished or at least reduced by introducing a peppercorn as the set fee. I beg to move.

--- Later in debate ---

[Baroness Scott of Bybrook (Con)]

The Government have no control over what goes into the media, and it is something that the Government have to accept.

[Baroness Pinnock (LD)]

Let us end on a positive. I thank the Minister for her response. There is agreement that unregulated ground rents are unacceptable, and that some freeholders are unscrupulous and exploit their leaseholders, holding them to ransom, as the noble Baroness, Lady Taylor of Stevenage, said.

However, it would be really helpful if, as we complete the various stages of the Bill, the Minister could confirm that the Government will be able to bring forward a detailed amendment regarding ground rents before Report; otherwise, those of us who raised this issue in Committee will raise it again on Report. Unfortunately, this will put the Minister in a difficult position, one in which she has to say, “In due course, something is going to turn up”. Let us send a message to the department that “in due course” means “before Report”.

Amendment 63 withdrawn.