Landlords: Long-term Rentals

Baroness Taylor of Stevenage Excerpts

Wednesday 27th November 2024 Lords Chamber

[Baroness Thornhill (LD)]

I beg leave to ask the Question standing in my name on the Order Paper and declare my interest as a vice president of the Local Government Association.

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

I thank the noble Baroness for her Question. The Government value the contribution made by responsible landlords who provide quality homes for tenants. They form a vital part of our housing market. Our Renters’ Rights Bill ensures that landlords have the confidence and support they need to continue to invest in the sector and we do not expect it to have a destabilising effect on the market. We have included provisions in the Bill to make sure that landlords cannot evict tenants simply to turn the property into a short-term let. Landlords and tenants are equally important. Landlords want good tenants. Tenants want good landlords. We hope that the Bill will make things better.

[Lord Truscott (Non-Afl)]

My Lords—

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[Baroness Thornhill (LD)]

I did ask what the noble Baroness felt could be done about it. I asked my Question first, but my question is: surely this is bonkers and can we not work out some protocol so that councils and government offices are not outbidding each other?

[Baroness Taylor of Stevenage (Lab)]

My Lords, of course the noble Baroness is quite right to flag up the issue of the terrible shortage of housing. The answer in the medium to longer term is just to get more housing built, and we are straining every sinew to do just that. In terms of the way that short-term lets work, we know that they can benefit economies through visitor spend and creating employment opportunities for local people. However, we appreciate that excessive concentrations of that in some parts of the country impact availability and affordability. I know that this competition between local authorities and government departments for housing is causing a real problem. We are introducing a registration scheme for short-term lets to protect our communities, abolishing things such as the furnished holiday let tax regime, to remove the tax incentive that short-term let owners have over long-term landlords. We recognise that more needs to be done to level the playing field between short and long-term tenures. Long-term tenures are important, and they need to be affordable long-term tenures.

[Lord Truscott (Non-Afl)]

My Lords, I declare an interest as a landlord and a former private renter, and I apologise for jumping up a bit early previously. Does the Minister accept that removing tax incentives and reliefs on mortgages for private renters has led to a diminution, in some cases, of the number of properties supplied to the sector, and certainly acted as a disincentive? As a result of that, together with other factors, more landlords are leaving the sector rather than coming in. The question of short lets has been mentioned. Increasing numbers of landlords are moving to platforms such as Airbnb, which are four times more profitable than long lets. Surely, in order to meet the Government’s housing targets, we need more long-term lets in the sector, not fewer.

[Baroness Taylor of Stevenage (Lab)]

I agree with the noble Lord that we need more long-term lets— I think I made that very clear—but there is no evidence of an exodus from the market. A study from the UK Collaborative Centre for Housing Evidence looked at whether regulation and tax changes over the past 25 years in the UK and internationally had affected private rented sector supply. The report concludes that there is no evidence that that has had an impact. In fact, the PRS has doubled in size since 2002 and is now the second largest housing tenure, with over 11 million people living in the private rented sector.

[Lord Best (CB)]

My Lords, rather than incentives for reluctant landlords, could the Minister say whether the Government are considering incentives to landlords who want to exit the market to sell to the social housing landlords who can modernise the properties and let them long term on a secure basis at affordable rents to people who will not be able to afford the private rented sector?

[Baroness Taylor of Stevenage (Lab)]

I could not agree more with the noble Lord that for some people in the housing market, the only affordable housing is social rented. The Chancellor set out in the Budget that we will make an immediate one-year cash injection of £500 million into the current affordable homes programme. I can confirm that that can be used to purchase property on the private market. That will support the delivery of up to 5,000 new social and affordable homes. In addition, at the multiyear spending review next year, we will set out details of new investment to succeed the 2021 to 2026 affordable homes programme. That will deliver a mix of homes for sub-market rent and home ownership, with a particular focus on delivering homes for social rent. I hope our Deputy Prime Minister’s promise to deliver a revolution in the delivery of social homes will come to fruition.

[Baroness Scott of Bybrook (Con)]

My Lords, there will always be a market for rental accommodation and, under the Conservative Governments, the number of households in the private rented sector rose from 3.1 million to 4.4 million between 2009 and 2021. How does the Minister intend to ensure that the Government’s legislative agenda does not reduce the number of properties available for private renters and risk rent increases?

[Baroness Taylor of Stevenage (Lab)]

First of all, I would say that the number of people who were able to own their own properties actually fell under the last Government. I am surprised, with the record that we have heard many times in this House of the number of people who are currently on housing waiting lists and 150,000 people in temporary and emergency accommodation, that the previous Government want to stand up and question this issue in the House. The PRS has doubled in size since 2002. We will continue to do what we can to support both landlords and tenants in that sector. We are about to introduce the Renters’ Rights Bill to this House. I am grateful to all noble Lords who have already engaged on that. If there is anybody who has not yet, do get in touch with me, but I look forward to working with the House to deliver a very effective piece of renters’ rights legislation.

[Baroness Grender (LD)]

My Lords, does the Minister agree that two of the most profound underlying causes of children, the most reluctant tenants of all, being in temporary accommodation—150,000 of them in England alone—are forced evictions and affordability? Does she therefore, like many in this sector who care about this issue, have some cause for concern that the housing allowance has been frozen until 2026 and was not used as an opportunity in the Budget? I ask because there is very welcome legislation coming down the track—but right here, right now, tonight, for 150,000 children, what is the quick solution?

[Baroness Taylor of Stevenage (Lab)]

I am grateful to the noble Baroness for raising that important issue. We have looked at local housing allowance, but increasing that even slightly puts a huge pressure on the overall fiscal picture in the country. So it has not been possible to do that this time, because we had to fill the £22 billion black hole that was left to us as a legacy from the other side. We have put £500 million into delivering more affordable housing, taking us to £3.1 billion in total for affordable housing. We have also increased discretionary housing payments and have put back in the household support grant, which would have run out at the end of September because there were no government plans to meet those costs until the end of the year. That will provide some relief for the most deprived families.

[Lord McColl of Dulwich (Con)]

My Lords, is the Minister aware that there is a particular problem in Cornwall, where there are over 13,000 short-term lettings going on? The problem with those people who do short-term letting is that they seem not to pay much attention to the rules and orders of the accommodation where they stay. They keep people awake all night, very often, and have visitors coming whose identities are unknown. This is a security risk too. Will the Minister do something about these short-term lets?

[Baroness Taylor of Stevenage (Lab)]

It is great to hear about Cornwall so much this afternoon. I hope that people who are in communities will get in touch with their local council, which can act against anti-social behaviour. It is a matter for those who run Airbnb and other lettings companies. Generally, they are well run, but, where they are not, it is perfectly possible for communities to get in touch with their local authority to make the necessary complaints. We have introduced powers to charge 100% council tax on second homes, and things like that, and we are taking action on second homes. I hope that this will ease the position, but I urge anybody suffering from that kind of anti-social behaviour to contact their local authority.

Cladding Remediation

Baroness Taylor of Stevenage Excerpts

Monday 25th November 2024 Lords Chamber

[Lord Young of Cookham]

To ask His Majesty’s Government what progress has been made on remediating flats with dangerous cladding.

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

My Lords, I wish the noble Lord better—I know he is not feeling so great today. The pace of remediation has been far too slow, with only 50% of identified buildings beginning or completing works, and just 29% fully remediated. This has caused untold distress and expense for all those concerned. Further strong measures will be detailed in the forthcoming remediation acceleration plan. As set out by the Prime Minister, we are willing to legally require those responsible to assess their buildings and promptly enter remediation schemes. We will bring the full power of government to bear on this task.

[Lord Young of Cookham (Con)]

My Lords, I am grateful for that reply. In the debate on Grenfell on Friday, the Minister’s colleague, the noble Lord, Lord Khan, said:

“Yesterday the Ministry of Housing, Communities and Local Government published its monthly remediation statistics. They show that, of the 4,834 residential buildings 11 metres and over in height with unsafe cladding that the department is monitoring … 50% … have still not started remediation”.—[Official Report, 22/11/24; col. 431.]


That is 250,000 families living in buildings that are not safe, in flats which they cannot sell, and who are confronted with high insurance premiums and service charges; and some of them are also confronted with unlimited remediation costs.

None of these leaseholders are responsible in any way for the difficulties they find themselves in. The NAO has now said that it may take until 2037—20 years after the Grenfell fire—for all the dangerous cladding to be put right, and we still have not identified all the dangerous buildings. I appreciate that the Minister has come to this relatively recently, but does she accept that if we do not get a grip on it, it will be the next major national scandal?

[Baroness Taylor of Stevenage (Lab)]

My Lords, I am very glad to say that we now have a Government, and a Deputy Prime Minister who is responsible for this area, who take this incredibly seriously. We will soon be publishing a remediation acceleration plan, which outlines the specific measures we are going to take to increase the pace of remediation, to find all the at-risk buildings quicker and to ensure that the residents at the heart of this terrible issue are supported in the process. There is no longer any excuse for those responsible failing to fix dangerous cladding on their buildings. The message is clear: use the routes we have created to get buildings fixed, and get on with the job.

The Deputy Prime Minister recently held a national roundtable with mayors, regulators and national building safety bodies to press home the urgency of this work, and most developers have now signed up now to the plan that she set out. But please be assured that we will not hesitate to use enforcement measures, and we have provided local authorities with funding to undertake the enforcement necessary.

[Baroness Warwick of Undercliffe (Lab)]

My Lords, there are still limits to access to funding for social landlords, despite the welcome measures the Government have taken already on funding, meaning that those with the lowest incomes still have to pay for unsafe buildings to be fixed, when private developers profited from constructing them. Will my noble friend respond to End our Cladding Scandal’s call for housing associations to have the same access to the building safety fund and the cladding safety scheme as private building owners?

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[Baroness Taylor of Stevenage (Lab)]

I thank my noble friend for the action she has taken already in this respect. The Government are committed to improving building safety, and to accelerating the remediation of unsafe social housing just as much as we are for those in private rented and private owned property. Investment in remediation will rise to record levels of over £1.5 billion across 2024-25 and 2025-26, and that includes new investment to speed up the remediation of social housing. The Government will set out further steps to accelerate remediation in the remediation acceleration plan. Social landlords have access to existing government grants, and the Government are committed to providing £400 million of grant funding to the social housing sector for the removal of unsafe cladding. With social housing, as with other types of housing, there is no excuse now for not getting on with this as quickly as possible.

[Baroness Scott of Bybrook (Con)]

My Lords, following on from the Question of my noble friend Lord Young of Cookham, this Labour Government have allocated only £1 billion of funding for the removal of the cladding, in contrast to the £5.1 billion allocated by the previous Government to fix the most dangerous cladding through the cladding safety scheme. Can the Minister explain how the Government came to the figure of £1 billion, and will she commit to comparable levels of support to those seen under the last Government?

[Baroness Taylor of Stevenage (Lab)]

My Lords, we have waited seven years for action to be taken on this. The remediation acceleration plan will set out the full details of how we intend to take this forward, and the funding that has been set aside. Of course, we would have wanted to put more into this, but with a £22 billion black hole, it has not been possible to do so.

[Lord Carter of Haslemere (CB)]

The National Audit Office recently published a report showing that of the £16.6 billion total remediation cost, £6.5 billion would be met by developers, private owners and social housing providers. But what about the manufacturers of the cladding, who the inquiry found had been systematically dishonest and deliberately misled through the test data, so as to mislead the market about the safety of the cladding in question? Are they going to foot any part of the total bill?

[Baroness Taylor of Stevenage (Lab)]

The noble Lord raises a very important question. The Prime Minister stated on the day the inquiry’s report was published that we

“will write to all companies found by the inquiry to have been part of these horrific failings, as the first step to stopping them being awarded Government contracts”.—[Official Report, Commons, 4/9/24; col. 312.]

Preliminary letters have been now written to all those organisations mentioned by name in the report, each of which bears a different level of responsibility for the failings that led to the Grenfell tragedy, including construction project manufacturers. We recognise the failings of the system for construction projects, and we announced our commitment to bring forward proposals for reform of the regulatory regime in a Written Ministerial Statement on 2 September.

[Baroness Brinton (LD)]

My Lords, the very serious fire in a high-rise block of flats in Dagenham in August has resulted in the residents losing their homes and not even being able to access their belongings. They are also in real financial hardship. They are really grateful for the support from their local council, Barking and Dagenham, which has stopped them having to pay any council tax and provides weekly support meetings. Last Thursday, the owner of the building announced that it was to be demolished, without any discussion at all with the leaseholders and residents. The council cannot force the owner to the table, so I was very pleased to hear the Minister talk about enforcing remediation and working with people. Is there anything she can do to help these residents get the owner in front of them, so they can find out what is actually happening?

[Baroness Taylor of Stevenage (Lab)]

I am grateful to the noble Baroness for raising that issue, and to Barking and Dagenham Council, which acted very quickly to support the residents. A great deal of action is being taken on building owners who are not progressing remediation works, getting them to do so as quickly as possible. The enforcement action is strengthened by funding for local authorities, as I said earlier.

We all know that one of the great failings in the Grenfell situation was the failure to take residents’ voices seriously enough. We are clear that all projects should comply with the guidance in the code, and we will take action where needed if there is a failure to comply with the resident voice. The code is not currently legally binding; however, it does include references to legislation and has been developed in accordance with guidance and requirements. We will keep the status of that code under review, but there is redress for residents should they need to seek it.

[Baroness Wheatcroft (CB)]

My Lords, guidance note 9980 is being used as an excuse by developers. It enables them to look at the safety of buildings with dangerous cladding on a holistic basis, so that they can claim that if the fire escapes are okay, they do not need to remediate. Can the Minister commit to having a look at that guidance note? I declare an interest as a part-owner of a building with cladding issues.

[Baroness Taylor of Stevenage (Lab)]

I am grateful to the noble Baroness for raising that point. I will have another look at it, but that guidance is very clear. They are industry-accepted standards, so they should be adhered to.

[Lord Rooker (Lab)]

Why do the Government not arrange for the blocks of flats that still have dangerous cladding to be fitted with equipment to prevent neutral current diversions causing a fire in the first place? The fear of fire has got to be a serious issue. Given that the most expensive three blocks of flats in London are fitted with such equipment, I do not see why it should not be fitted to all those flats where people are living in fear and still with dangerous cladding.

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[Baroness Taylor of Stevenage (Lab)]

I thank my noble friend, who has raised this point in previous debates. I hope he received a written response, but I will endeavour to seek another response for him on the specific point he makes today.

Council Tax

Baroness Taylor of Stevenage Excerpts

Tuesday 19th November 2024 Lords Chamber

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

My Lords, I shall now repeat an Answer to an Urgent Question that was given in another place:

“Mr Speaker, to be clear, we are not increasing the council tax referendum thresholds. The Secretary of State sets thresholds, known as referendum principles, for different classes of authority. Within these referendum principles, local authorities do not need to seek consent from their residents to increase council tax. The Government will maintain the previous Government’s policy on council tax, in line with the OBR forecast made in March 2024.

The OBR forecast of the last Government assumed that council tax would increase by a 3% core, plus an additional 2% for local authorities with adult social care responsibilities, for the entirety of the forecast period. We are continuing with the policy set by the previous Minister for Local Government for 2025-26. In 2025-26, this will raise £1.8 billion. The purported figure used by the shadow Communities Minister failed to account for the new homes being built or other local government income, such as retained business rates, which accounts for an additional £600 million. That is why at the Budget we announced over £4 billion in new local government funding, including an additional £1.3 billion in the local government finance settlement. This has been welcomed by the sector. Indeed, the Conservative chair of the County Councils Network, Tim Oliver, said that:

‘Today’s announcement of £1.3 billion in new core funding for councils offers some welcome relief to the day-to-day financial pressures’.


Decisions on the council tax level to set, or whether to hold a referendum to go beyond the referendum principles, sit squarely with councils. The Government, however, are committed to limiting increases to the 5% principle and will not raise any taxes on working people. We continue to remain committed to the single person council tax discount and local council tax support schemes. We will set this out fully in the local government finance settlement, which will be presented to Parliament in the usual way”.

[Baroness Scott of Bybrook (Con)]

My Lords, when it comes to local government, the Chancellor is giving with one hand and taking away with another. The increase of employer national insurance contribution will hit local government hard, particularly through its contracted services. Can the Minister explain how the Government expect councils to cover their increased costs without raising council tax, or are His Majesty’s Government happy to see yet another tax increase on working people as a result of their Budget?

[Baroness Taylor of Stevenage (Lab)]

My Lords, the Government have committed to provide support for departments and other public sector employers for additional employer national insurance costs. This applies to those directly employed by the public sector, including local government. We will set out further details of how this support will be delivered in due course.

[Viscount Hailsham (Con)]

My Lords, given that the Government remain committed to the principle that public opinion should be tested before an excessive council tax is levied, would it not be consistent for the Minister to step outside and ask the farmers how they react to the imposition of inheritance tax on agricultural land, which they were promised would not happen and which manifestly has an excessive impact on agricultural values and their businesses? Incidentally, I declare an interest: I have no agricultural land myself, but numbers of my family do.

[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.

[Lord Clarke of Nottingham (Con)]

My Lords, the most obvious problem with the council tax system in this country is that it is based on a hopelessly out-of-date valuation which no Government have dared to address in recent years. It produces great anomalies in the council tax levied in different parts of the country. As this new Government have a big parliamentary majority and this is the early stages of the Parliament, will they not have the courage to address this obvious anomaly, so that at least the basis for council tax can be fairer in future years and we can begin to establish a system of revaluing, from time to time, to keep it a defensible system?

[Baroness Taylor of Stevenage (Lab)]

As a former Chancellor, the noble Lord will have detailed knowledge of this, and I am sure he made similar representations to his own Government. We all know that problems are caused by outdated valuations and the regressive nature of council tax. However, widescale reform of the council tax system at this stage would be time consuming and complex. We would still have winners and losers whichever way we did it. Instead, this Government are committed to fairer funding. We will start it in this year’s funding settlement, with a further review in the 2025 spending review.

[Lord Foulkes of Cumnock (Lab Co-op)]

My Lords, does my noble friend agree that it would have been great if we had had a much higher threshold in the European referendum so that we could have avoided the disaster of Brexit? It has been particularly disastrous for farmers.

[Baroness Taylor of Stevenage (Lab)]

I hear my noble friend’s point, which he has made in the House several times before. The impact of Brexit is widespread, and I completely understand his point.

[Lord Tyrie (Non-Afl)]

My Lords, will the Minister return to the point that the noble Lord, Lord Clarke, made a moment ago? Unless we address the gross imbalance in the amount of money taken from various groups in society in council tax, we will never make any progress on the other side of ledger, which is how to spend the money on social care. The Government must grasp this nettle. Is now not the best moment to do it, when the Government have a large majority and a long Parliament ahead to achieve their aims?

[Baroness Taylor of Stevenage (Lab)]

I thank the noble Lord for his comments. My honourable friend Minister McMahon is very clear that we need to set up a fairer funding settlement for local government. It is our choice to do it this way, rather than by a complicated and time-consuming reform of council tax. In this year’s funding settlement, the noble Lord will hear news about reshaping the way that funding is distributed, and there will be further news on it in the spending review next year.

[Lord Young of Cookham (Con)]

My Lords, further to the questions posed by the noble Lords, Lord Clarke and Lord Tyrie, if the Government are not prepared to do a wholesale revaluation, and I understand why, could they not at least introduce two new higher bands of council tax to produce more revenue for social care?

[Baroness Taylor of Stevenage (Lab)]

The noble Lord has made this point in the House before. It is a good point; it needs to be considered alongside further reform of council tax. That is not our priority at the moment, but when it comes to be done, I am sure that his point will be taken on board.

[Lord Bailey of Paddington (Con)]

My Lords, for the last few years, at the insistence of a Labour mayor, Londoners in council tax bands D and B have had an extra £60 added to their bill to pay for Transport for London. Yet the mayor is about to enter negotiations with the unions for a four-day week and an inflation-busting pay rise. What is the referendum policy for London? With the charges that the mayor keeps heaping on people and these raises in mind, will the Government ask him to give taxpayers in London an opportunity to have their voices heard?

[Baroness Taylor of Stevenage (Lab)]

My Lords, the citizens of London had a chance to express their view in the recent election for the Mayor of London, and they did so resoundingly.

[Lord Wallace of Saltaire (LD)]

My Lords, are the Government turning their backs on the idea of tax reform for local government or as a whole? Of course it is time consuming, but tax reform is fundamentally important. We have an extremely complicated and unjust tax system. I declare an interest, as I have lived between Yorkshire and London for the last 40 years and, more years than not, I have paid higher council tax on a house in Bradford than in London. That is absurd and it is one of the things that tax reform ought to cope with.

[Baroness Taylor of Stevenage (Lab)]

I can only reiterate my earlier statement: there are no current plans to reform council tax.

[Lord Bellingham (Con)]

My Lords, I declare my interests as in the register. Further to the noble Viscount’s question, the Minister might be aware that nearly a year ago at the Oxford Farming Conference, Steve Reed said, “Let me assure you that Labour will not alter the IHT treatment for agricultural land. We recognise that such a move would be damaging to the farming sector”. Does the Minister agree with what he said then?

[Baroness Taylor of Stevenage (Lab)]

Again, that is quite a stretch from council tax. We constantly hear calls from the other side that they do not like the steps we had to take to fill the £22 billion black hole they left. Public services are crumbling, including in local government. I have heard lots of suggestions from that side about what we should not be doing; what I have not heard is what they think we should be doing to fill the £22 billion black hole. I have looked very closely at the issues around inheritance tax. An individual can still pass up to £1.5 million, including personal allowances, and a couple can pass up to £3 million tax free. We have concern for how the farmers are feeling, but some steps had to be taken to fill that black hole. This Government have done so. We need to stabilise the foundations of the economy and fix our crumbling public services.

Barnsley and Sheffield (Boundary Change) Order 2024

Baroness Taylor of Stevenage Excerpts

Wednesday 13th November 2024 Lords Chamber

Moved by

[Baroness Taylor of Stevenage]

That the draft Order laid before the House on 7 October be approved.

Considered in Grand Committee on 11 November.

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

My Lords, I apologise to the people of Yorkshire for mispronouncing the name of the place affected by this Motion. I am reliably informed that it is Oughtibridge. I beg to move the Motion standing in my name on the Order Paper.

Motion agreed.

Barnsley and Sheffield (Boundary Change) Order 2024

Baroness Taylor of Stevenage Excerpts

Monday 11th November 2024 Grand Committee

Moved by

[Baroness Taylor of Stevenage]

That the Grand Committee do consider the Barnsley and Sheffield (Boundary Change) Order 2024.

[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.

[Baroness Taylor of Stevenage (Lab)]

I am grateful to the two noble Baronesses who have made excellent and important contributions to this debate. I thank the noble Baroness, Lady Pinnock, for her correction to my southern pronunciation of Oughtibridge. I am very grateful. I will not get that wrong again, will I? Thank you very much for that.

A number of points were made, which I will respond to. First, the noble Baroness, Lady Pinnock, raised the issue of the process for review. I have to say that the measure probably was slightly held up by the election, but it has still taken quite a long time. I will take that back, because all of us who have been councillors—I think that everybody taking part in this debate has been—will know that such anomalies often occur. If the process needs to be made more straightforward, we should look at that, because all the reasons given for this SI would apply similarly to other areas where there are revisions to boundaries.

As for councillor qualification, I understand that that is set out in Article 7 of the order, which allows for a change of councillor. I am not aware that there is an issue there in this case, but I understand the residency qualification issue. Of course, councillors can qualify if they have a business or for other reasons but, if it is a residency qualification, that would need to be taken into account. However, as both participants were supportive of this proposal, it is probably the case that there was no issue, but we will bear that in mind if any future SIs like this come forward. We have to be very clear about what is happening in relation to councillor representation, because if a residency qualification is at issue, there may be implications, but that is all set out in Article 7.

The Local Government Boundary Commission for England recommendation meets the statutory obligation to secure effective and convenient local government while reflecting the interests and identities of local communities. That sits right at the heart of this SI. In short, the order makes a small boundary change, supported by both local councils and recommended by the Local Government Boundary Commission, and I beg to move.

Motion agreed.

Gypsy and Traveller Communities: Accommodation

Baroness Taylor of Stevenage Excerpts

Wednesday 6th November 2024 Lords Chamber

[Baroness Bakewell of Hardington Mandeville]

To ask His Majesty’s Government what steps they are taking to ensure the provision of adequate and culturally appropriate accommodation for Gypsy and Traveller communities.

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

My Lords, as part of the recent consultation on proposed reforms to the National Planning Policy Framework, we set out changes to how we plan for the homes we need, including accommodation for Gypsy and Traveller communities. We are continuing to analyse the consultation responses and we will publish our government response later this year. We will also consider how planning policy for Traveller sites should be set out in future, including as part of wider work on the national planning policy. The Government’s overarching aim is to ensure fair and equal treatment for Travellers in a way that facilitates their traditional way of life while respecting the interests of the settled community.

[Baroness Bakewell of Hardington Mandeville (LD)]

My Lords, I thank the Minister for her very positive response. However, I am not sure that it will meet the 2024 recommendations of the United Nations Committee on the Elimination of Racial Discrimination to create more sites and stopping places. Many sites provided are on busy roads and the outskirts of communities, often some distance from schools. Since 1994, only 30 new sites have been built. Will the Government now legislate for all local authorities to include site provision in their local plans, including bricks and mortar as culturally appropriate accommodation? Gypsy and Traveller children deserve the same rights as children in the settled community.

[Baroness Taylor of Stevenage (Lab)]

The noble Baroness is of course right that Gypsies and Travellers deserve consideration of their lifestyle and culture in planning. Planning policy makes it clear that local authorities have a responsibility to assess the need for Gypsy and Traveller sites in their area and then plan to meet that need. When considering those applications, decision-makers should consider the existing level of provision, the availability of alternative accommodation and other personal circumstances, which could include the need for culturally appropriate accommodation. When the National Planning Policy Framework comes out, I hope she will see steps towards that.

[Lord Watson of Invergowrie (Lab)]

My Lords, I welcome the initial comments of my noble friend in response to the noble Baroness, Lady Bakewell. However, there are far too many cases of local plans having been approved without the accommodation needs of Gypsy and Traveller communities having been met. The noble Baroness mentioned 1994. It has in fact been the policy of successive Governments since 1994 that local plans should not be approved without that provision. Will my noble friend use her position in this Government to ensure that steps are taken to enforce that requirement before local plans are approved?

[Baroness Taylor of Stevenage (Lab)]

I thank my noble friend for that important point. Of course, it is the responsibility of local authorities to assess the need for Gypsy and Traveller sites in their area, as set out in Section 124 of the Housing and Planning Act 2016. They must plan to meet that need, and it should come under the remit of the inspectorate when it is looking at local plans to ensure that that provision is made properly and in accordance with the cultural needs of Gypsies and Travellers. We will look at that closely once the new National Planning Policy Framework is in place.

[Earl Attlee (Con)]

My Lords, what does the planning system do to improve the education of Travellers so that they can engage in exclusively legitimate economic activity?

[Baroness Taylor of Stevenage (Lab)]

Of course, Gypsies and Travellers have the right to education, just like every other family in this country. We make every endeavour to make sure that the opportunities that are available to all the children in this country are available to Gypsies and Travellers as well, and that we take account of their cultural needs as we do so.

[Baroness Chakrabarti (Lab)]

My Lords, no doubt all Members of your Lordships’ House engage exclusively in legitimate economic activity. Does my noble friend the Minister agree that this morning is a good time to reflect on the need to avoid demonisation of minorities and polarisation of communities? Notwithstanding the specific duties she set that local authorities have, maybe the Government could help local authorities to promote good relations.

[Baroness Taylor of Stevenage (Lab)]

I thank my noble friend for that comment. When I was a councillor, I had a Gypsy and Traveller site in my own ward. It is important that all council officers familiarise themselves with the cultural issues around Gypsies and Travellers. Of course, we must all strive, always, to avoid division in our communities; it is very important that communities move forward together. If we are to achieve the full potential of our country, that is exactly what we must do.

[Baroness Brinton (LD)]

My Lords, following the withdrawal of the Gypsy and Traveller Accommodation Needs Assessments guidance of 2007, there has been a policy vacuum for the assessment of need. This has allowed private companies, that provide most of the Gypsy and Traveller accommodation needs assessments, to develop their own—and different—methodologies, leading to discrepancies in how those are undertaken. Will the Government develop guidance for local planning authorities on how to properly undertake Gypsy and Traveller accommodation assessments in consultation with Gypsy and Traveller civil society? Can such guidance issue a pitch target for social provision in the same way as bricks and mortar housing needs are assessed?

[Baroness Taylor of Stevenage (Lab)]

The noble Baroness makes a very important point. I will look at the National Policy Planning Framework when it comes out to see what guidance is provided. Other noble Lords have raised the issue of how this will be enacted. It is very important that local planning authorities demonstrate an up-to-date, five-year supply of deliverable sites. The planning policy for Traveller sites states that this should be a significant material consideration in any subsequent planning decision, so there will be enforcement powers to support the delivery of those sites as set out in planning guidance.

[The Earl of Effingham (Con)]

My Lords, there are many different peoples within the Traveller community with a diverse range of cultural traditions. How do the Government intend to adequately serve this wide range of cultures when providing accommodation?

[Baroness Taylor of Stevenage (Lab)]

I thank the noble Lord for his question. The key to all this is consultation and engagement with the communities. There has just been a significant report called Kicking the Can Down the Road. When we read the many changes that have been enacted in provisions for Gypsies and Travellers, it is more than clear that we need to fully engage with a wide range of those in the Gypsy and Traveller community so that we understand what their needs are and make sure they accounted for, not just in the planning process but in all public services.

[Baroness O'Grady of Upper Holloway (Lab)]

My Lords, it was good to hear the Minister commit to the principle that everybody in every community deserves a decent home. Can the Minister also reassure us that this Government will be committed to tackling the everyday racism that Irish Traveller and Gypsy communities experience—from bullying in schools to discrimination in insurance and financial services? As a recent example, a Gypsy family were required to pay upfront in a Pizza Express branch before they were served.

[Baroness Taylor of Stevenage (Lab)]

I thank my noble friend. That kind of discrimination is totally unacceptable. The forthcoming Renters’ Rights Bill, which is currently in the other House and will be with us shortly, takes out some of the potential discrimination that could have been involved in the housing market. We will continue to do that and to look across the board at what local government can do. Some great work on this is done in local government, and we will look at sharing best practice with local authorities to ensure we tackle such discrimination.

[Lord Young of Cookham (Con)]

My Lords, if Gypsies and Travellers are not to camp illegally then, of course, authorised sites must be provided by local councils. After legislation was introduced some 50 years ago, there was a count of how many Traveller and Gypsy caravans there were in England, and the answer was 8,045. There are now 20,000 authorised sites, but 25,000 Traveller and Gypsy caravans. What is behind this increased demand for a nomadic Gypsy and Traveller lifestyle?

[Baroness Taylor of Stevenage (Lab)]

The noble Lord will know that we face the most acute housing crisis this country has ever had. I cannot help but feel that the issue of further caravan provision is partly to do with that. However, there is a difference between that and the culturally specific provision that needs to be made. I cannot answer directly his question about the numbers, but there may be some further insight in the department. I will ask that question and write to him if there is more information.

[Baroness Blower (Lab)]

My Lords, is the Minister working with her noble friend at the DfE to ensure that all schools understand the culture of Gypsies and Travellers, and that they are welcoming both in their policies and in their curriculum to ensure that when Gypsy and Traveller children arrive in schools they feel welcomed and are not bullied, and that all children understand that diversity is of benefit to schools?

[Baroness Taylor of Stevenage (Lab)]

I thank my noble friend. I have seen some wonderful examples of good practice in schools on this issue, but I will refer the question to my noble friend the Minister for Education.

Social Housebuilding

Baroness Taylor of Stevenage Excerpts

Monday 21st October 2024 Lords Chamber

[Baroness Warwick of Undercliffe]

To ask His Majesty’s Government what plans they have to build capacity in councils and housing associations within the next three months to increase the building of new social homes.

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

My Lords, I thank my noble friend for her Question and for all the work she has done to support the social housing sector. The Government are committed to the biggest growth in social and affordable housing for a generation, but we recognise that councils and housing associations need support to build their capacity. In July, we announced steps to help with delivery, including flexibilities in the current affordable homes programme and for councils to use right-to-buy receipts. We will set out plans in the Budget at the end of this month to give councils and housing associations the rent stability they need to borrow and invest in both new and existing homes.

[Baroness Warwick of Undercliffe (Lab)]

My Lords, I thank my noble friend the Minister for her very helpful and hopeful reply. Recent statistics from the ministry show that, in the year 2023-24, 320,000 households faced or experienced homelessness—an 8% rise on the previous year and the highest on record. Recent research by the NHF, Savills and the HBF warned that, without much more social housing, the Government are set to miss their target of 1.5 million homes. A significant uptick in social housing is vital to plug that gap. Will my noble friend explore the options of a one-year extension to the affordable housing programme in the upcoming October Budget? Extension of the current AHP by one year would be an important first step to increase delivery and capacity in the social housing sector.

[Baroness Taylor of Stevenage (Lab)]

At the risk of repeating my noble friend Lord Livermore, the content of the Budget is of course a matter for the Chancellor of the Exchequer. However, the package we announced in July included flexibility in the current affordable homes programme to help with delivery and extended the 2021-26 affordable homes programme. We have been clear that we will bring forward details of future government investment in social and affordable housing at the spending review. We know how important it is to enable providers to plan for the future as they help to deliver the biggest increase in affordable housing in a generation.

[Lord Best (CB)]

My Lords, I congratulate the Government on the priority it is giving to new housebuilding for social rent, but we are still losing more homes each year than we are building, mostly because of right to buy. Some 2 million homes have been sold so far and 40% are now in the hands of private landlords, who are letting homes at rents two or three times higher than at which they would have been let as council properties. Would the Minister accept either or both recommendations from the Devon Housing Commission, which I have been chairing? The first is that the level of discount should be set by the local authority and not at the national level, where 70% discounts are available, which is not good value for the taxpayer. The second is around whether 100% of the proceeds from sales of right to buy should be allocated to new housing that replaces that which has been lost.

[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.

[Baroness Penn (Con)]

My Lords, London has some of the highest housing pressures in the country, including for new social housing, and yet the mayor consistently fails to deliver on his own targets. Could the Minister explain why the Government are withdrawing from an intervention in London designed to reverse that record?

[Baroness Taylor of Stevenage (Lab)]

I welcome the noble Baroness back to her place. I have set out our views about delivering the biggest increase in social and affordable housing. We have asked Homes England and the Greater London Authority to maximise the number of social rent homes when allocating the remaining affordable homes programme funding. Significant sums of that funding have indeed been dedicated to London. We are extending the programme’s completion deadline for all schemes in London from March 2029 to March 2030, and we are enabling the Greater London Authority to fund intermediate rent homes, within the 2021-26 programme, at a maximum of 80% of market rents. I hope that reassures the noble Baroness that we take the issue of housing in London seriously.

[Baroness Winterton of Doncaster (Lab)]

My Lords, does my noble friend the Minister agree that one of the consequences of a lack of social and council housing has been the growth of houses in multiple occupation? Can she assure me that she will look at giving councils adequate powers to deal with houses in multiple occupation, which can cause problems not only for those living in them but for local communities?

[Baroness Taylor of Stevenage (Lab)]

I agree that some houses in multiple occupation cause problems, but they can also provide a low-cost housing solution at certain times. However, it is important that local authorities have the powers to deal with this in their own areas. Following the recent consultation on the National Planning Policy Framework, we will look carefully at councils’ responses to see whether they have requested further powers to deal with HMOs.

[Lord Shipley (LD)]

My Lords, the Question relates primarily to new social homes, but it was reported at the end of September that around 70,000 council and housing association homes are now lying empty. Can the Government say something about what is planned for those 70,000 dwellings?

[Baroness Taylor of Stevenage (Lab)]

My Lords, there are multiple reasons why properties may be empty, but it is important that we bring as many homes as possible into use. Councils are being given greater powers to charge additional council tax for empty properties, and I know that they will be looking very carefully at the stock of housing to make sure that it is brought into use as quickly as possible. We are also looking at things such as compulsory purchase order powers and so on. Councils already have those but it is very important that we give councils as many tools in their armoury as possible to prevent houses falling into dereliction or simply being left empty because they have been bought as investments and are not let out or used.

[Lord Young of Cookham (Con)]

My Lords, the Minister said a few moments ago that she could not anticipate the Budget Statement, but did not the Sunday Times do that yesterday, with an authoritative leak that local authorities are to spend £1 billion more on council houses? I welcome that, but how confident is she that there is enough capacity in the construction workforce to respond to that demand?

[Baroness Taylor of Stevenage (Lab)]

The noble Lord makes an important point. I will not comment on leaks, to the Sunday Times or anywhere else, but I have been talking extensively with the development industry about skills in that area, not just for traditional methods of construction but to deal with modern methods of construction and the whole range of new skills that we will need to fit properties to make sure that they are net zero. We are looking right across the board at that and working with the construction industry to see what needs to be done to help it develop the level of skills that we know we are going to need.

[Lord Sahota (Lab)]

My Lords, last week, the Government allocated £68 million for 54 councils to build social housing on brownfield sites. Will there be further funding for other councils for similar projects to build houses on brownfield sites?

[Baroness Taylor of Stevenage (Lab)]

I thank my noble friend for drawing attention to the brownfield land release fund. The Government’s preference is to use brownfield first; we want to turn neglected sites into new homes. This funding will help clear empty buildings, former car parks and industrial land to make way for homes. We think that the first tranche of funding will enable around 5,200 homes. Further announcements on this will be made at the time of the spending review.

Arrangement of Business

Baroness Taylor of Stevenage Excerpts

Thursday 12th September 2024 Grand Committee

[Baroness Taylor of Stevenage (Lab)]

My Lords, before the noble Baroness, Lady Anelay, opens the next debate, I wish to highlight the three-minute speaking time limit for contributions other than those from the noble Lord, Lord Callanan, and the Minister. I appreciate this is tight and many noble Lords will have more to say, which is a reflection of the importance of the topic, but I respectfully ask that all contributions are limited to that maximum time to protect the time for the Minister’s response. I thank noble Lords.

Children: Impact of International Conflict

Baroness Taylor of Stevenage Excerpts

Thursday 12th September 2024 Grand Committee

[Lord Callanan (Con)]

My Lords, I start by welcoming the noble Lord, Lord Collins, to his new role. We faced each other across the Chamber on a lot of important pieces of legislation in previous Parliaments; I was personally delightedly to see his hard work in the opposition trenches rewarded with such a vital role. Hopefully, in these jobs, we will agree with each other a lot more than we did on some of the more contentious pieces of legislation.

I pay tribute both to my noble friend Lady Anelay of St Johns, for securing this vital debate, and, of course, to my noble friend Lord Ahmad, who did such a fantastic job of championing these issues while a Minister at the FCDO. It is appropriate that I am following them in this debate because I also followed them in ministerial jobs. When I first joined the Government, I followed my noble friend Lord Ahmad into transport, while my time in the Brexit trenches at DExEU were entirely the fault of my noble friend Lady Anelay, who had stepped down from the role; I followed her as a Minister of State in that department. Continuing that theme, my noble friend Lady Sugg followed me into transport as well. It underlines the importance of the issues that have been highlighted that so many ex-Ministers have chosen to come along to today’s debate and contribute.

There is not really a great deal that I can add to some of the excellent contribution we have heard today. I, too, read this Save the Children report with great interest—and not a small amount of despair as well. Many great contributions have been made today. I could have quoted everybody who spoke, I think; let me just say that I agreed with them. I highlight a few points. My noble friend Lady Anelay made an important point about the importance of holding perpetrators to account. My noble friend Lord Ahmad and the noble Baroness, Lady Goudie, spoke movingly about the devastating effects of conflict, in particular sexual violence against women and girls. The noble Lord, Lord Alton, highlighted some important points, as he so often does. He mentioned in particular the appalling abuses taking place in Ukraine at the moment; we all, I think, pray for the day when President Putin is hauled before the International Criminal Court to account for his appalling treatment of children in Ukraine.

As the report says, the numbers are massive: 468 million children were living in conflict zones in 2022 and that number, sadly, is growing steadily. I suspect that, two years later, those numbers are even higher. It comes as no surprise that Africa is the continent with the highest number of children affected by conflict—in DRC, Mali, Burkina Faso, Nigeria and Somalia—but they are also affected, of course, in other parts of the world, such as Syria, Ukraine and Yemen. We can now add Gaza and Sudan, which is the subject of a debate we will have tomorrow.

I was pleased to hear a number of noble Lords highlight in the debate on the King’s Speech that the new Government are taking forward some of the excellent work done in the FCDO previously by my noble friend Lord Ahmad and his ministerial colleagues. In the November 2023 White Paper, the previous Government committed to developing a new strategy on children in conflict. Andrew Mitchell, the then FCDO Minister of State, highlighted its importance and how this marked a step change in our commitment to the protection of children affected by conflict. In January this year, he said that officials had indeed begun work on that strategy. I look forward to hearing from the Minister about how that work is progressing. I am sure he will be looking forward to progressing it, particularly the commitment to deliver annual ministerial-level round tables with children who have been affected by armed conflicts.

[Baroness Taylor of Stevenage (Lab)]

I remind the noble Lord that the time limit is three minutes.

[Lord Callanan (Con)]

There are of course no easy solutions to this enduring tragic issue, but we, as an Opposition, certainly want to do all we can to assist the Minister and the Government to take forward this important work.

Housing: Modern Methods of Construction

Baroness Taylor of Stevenage Excerpts

Thursday 5th September 2024 Lords Chamber

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

My Lords, I am pleased to respond for the Government on this important issue. I am conscious that the debate takes place following the publication yesterday of the report on Grenfell. Our huge sympathy is with the relatives and friends of the 72 people who lost their lives in that incident, and with the brave communities that have waited seven years for that report. We will consider the issues of safety that relate to this topic very carefully, and we will learn all the lessons of the Grenfell report as we go through the further development of MMC.

I thank the noble Lord, Lord Carrington, for leading the debate, and the noble Lord, Lord Moylan, and his committee for the work they did in the inquiry into the role of modern methods of construction, which concluded earlier this year. It was a very thorough inquiry, and I am grateful for the work that was done.

I should declare an interest, having used MMC for a Housing First homeless project in my borough when I was leader of the council, and for a further affordable housing project with a housing association. Both of these were very successful, very quick, and delivered on time and to budget.

I am grateful to all noble Lords for their contributions to today’s debate. I recognise the expertise in the House—that is quite nerve-wracking for a Minister, but I am grateful for it, nevertheless. I will try to respond to the points that have been raised. I have been variously described as a ringmaster and a midwife in this debate, so I will do my best to fulfil those roles.

I start with the role of MMC in meeting housing supply, an issue rightly raised by a number of noble Lords, including the noble Lords, Lord Fuller, Lord Banner, Lord Carrington and Lord Best, and the noble Baroness, Lady Wheatcroft. As noble Lords will be aware, this Government were elected on a decisive mandate of change and national renewal, with an overriding mission to deliver economic growth and the higher living standards, good jobs, stronger public services and greater opportunities that go with that, for all parts of our country.

Getting Britain building again and tackling the housing crisis we inherited will be critical to achieving our ambition of building 1.5 million homes over the course of the next Parliament—a target referred to in the opening speech of the noble Lord, Lord Carrington, by the committee chaired by the noble Lord, Lord Moylan, and by the noble Baroness, Lady Warwick of Undercliffe. We agree with the noble Lord that modern methods of construction have an important role to play in this endeavour.

Innovation has revolutionised so many sectors and transformed the way we live, with incredible gains in productivity and living standards, yet much of the housebuilding industry continues to build in the same way it has for hundreds of years. Of course traditional build has, and will continue to have, its place. The noble Lord, Lord Carrington, referred to the historic use of prefabs, way back when, and mentioned Chiswick, where my grandmother lived, so I remember that well. The noble Viscount, Lord Hanworth, also referred to this. The noble Baronesses, Lady Wheatcroft and Lady Bowles, and others, referred to the public perception of this issue, which is vital to our consideration.

The serious challenges we face, not least in meeting our net-zero goals, demand that we take a much more ambitious and innovative approach, which is why I believe it is time to realise the great potential of modern methods of construction. That relates to the point of the noble Lord, Lord Mair, about being committed and having the commitment to drive this forward.

I am delighted to see a number of MMC firms succeeding, such as Vision Modular building Europe’s largest residential modular tower in Croydon, or a number of manufacturers delivering affordable modular homes on challenging brownfield sites. The noble Baroness, Lady Scott, referred to Grange University Hospital being built with these techniques.

The benefits MMC brings are truly impressive. It can help to deliver high-quality greener homes more quickly than traditional methods, which is good news for boosting supply and for the environment. I agree with noble Lords’ comments about the importance of good design and a variety of design, all of which are possible with MMC. It is therefore no surprise that an increasing number of housebuilders are already using off-site construction methods. Last night, I met with one who was talking to me about their innovation in this area.

MMC can help to create new well-paid jobs, attracting a wider pool of talent than traditional construction work. I recognise the challenges in the skills area, but this can attract a new cohort of talent, meaning that housing delivery is no longer held back by housing challenges. The noble Lord, Lord Best, referred to the involvement of Skills England. The noble Baronesses, Lady Thornhill and Lady Scott, and the noble Lord, Lord Carrington, all referred to skills, and I assure them that colleagues in MHCLG take that issue incredibly seriously.

MMC offers a broad range of technologies and approaches and, while much of the committee’s work focused on the category 1 market, we welcome the housebuilding sector’s increasing adoption of category 2 MMC, such as timber frame and panelised systems. Timber frame is already used in over 90% of new homes in Scotland, and a growing number of developers—such as Barratt, Vistry and Persimmon—are investing in and expanding their factories. That is in addition to both long-standing and emerging category 2 suppliers, such as British Offsite and Donaldson, investing in their manufacturing facilities to provide greater capacity and productivity. So there are reasons to be very optimistic about the future of MMC and what it could contribute to our housing and growth options.

That said, it has also undoubtedly been a challenging period for the low-rise modular market, with a number of high-profile exits over the last two years, as referred to by the noble Baronesses, Lady Warwick and Lady Eaton, and the noble Lords, Lord Carrington and Lord Moylan. This was not entirely unexpected: all innovative sectors experience failures as they develop and refine their business models, and the traditional construction sector has also been hit by a few failures over the same period.

What has happened in the MMC sector illustrates some of the key challenges of wider MMC adoption, many of which the committee considered. First and importantly, it illustrates the need for a steady pipeline of demand, which many noble Lords referred to, including the noble Lords, Lord Rooker, Lord Mair and Lord Jamieson. Large-scale MMC manufacturers will require that steady pipeline of demand, which is currently hampered by a lack of certainty in the planning system and the cyclical housing market.

The noble Lord, Lord Moylan, and the committee were also right to reflect on the significant role of warranty and insurance providers, and other noble Lords referred to the finance sector. There needs to be clarity for manufacturers and developers on requirements to ensure that they can deliver high-quality homes without stifling innovation. The closures over the past two years have demonstrated the supply chain risk that manufacturer-specific systems create, should those firms exit the market, leaving purchasers unable to complete their homes. So we need to tackle the interoperability to help restore market confidence, and we must ensure that manufacturers have access to finance to ensure that viable firms can invest and grow in the market, as referred to by the noble Lords, Lord Carrington and Lord Griffiths.

Tackling these barriers will be challenging, and it will be for both developers and government to help drive the wider adoption of MMC. The noble Lord, Lord Carrington, referred to full order books, which is what they are looking for, and we need to build the confidence to create that. But many in the sector are not letting this stand in their way, and they are blazing a trail to making MMC more mainstream. We want to accelerate that journey, and we have lost no time in getting that work going, starting with significant steps to reintroduce mandatory planning targets and release grey-belt land for development, thereby driving demand across the country and giving developers and MMC manufacturers the certainty and stability they need to invest confidently and increase their capacity.

The sector is already stepping up, with a very public commitment from 43 housebuilders to utilise, and expand their use of, MMC in response to the planning reforms we set out in July. The committee highlighted the role that the affordable homes programme plays in providing a pipeline of demand for MMC manufacturers, while also improving awareness among social housing providers. I appreciate the key point of the noble Baroness, Lady Brinton, about specialist housing provision—I will take that back.

We have clearly heard this message from manufacturers. The current £12.5 billion AHP is being implemented, and we will set out details of future investment in social and affordable housing at the spending review. Our aim is to deliver the biggest increase in social and affordable housing for a generation, and we truly believe that MMC will very much contribute to this.

The department is working with the British Standards Institution and the sector to deliver a new publicly available specification for MMC. This will bring greater clarity on the important issue of warranty and insurance providers, hopefully without squashing innovation in the sector. We are considering further options for greater standardisation, not only reducing the supply chain risk for customers but supporting suppliers to yield greater benefits from the manufacturing process, as well as protecting innovation and intellectual property. In addition, financial support is available to MMC manufacturers wanting to grow and expand through the £1.5 billion levelling-up home building fund. This is just the start; we recognise that there is a lot more to do, and we will set out further details in due course.

Our approach will be informed by support for different construction methods, in recognition of the fact that we need a diverse number of approaches to deliver on our housing targets. Not all parts of the sector will require the same types of support, and we must make sure that we do not focus simply on picking winners. This is about removing the sector-wide barriers to adoption, so that we have an MMC market that can deliver the decent homes and strong communities we all want to see. We will continue to engage with key stakeholders to develop the right approach for the sector, and I look forward to sharing more details about that in due course.

I will pick up some of the individual issues that noble Lords have raised. The publishing of an MMC strategy and the task force was raised by a number of noble Lords—the noble Baronesses, Lady Eaton and Lady Warwick, and the noble Lords, Lord Mair and Lord Birt, talked about this, as well as cross-government work on the issue. The Government are committed to delivering 1.5 million homes, and we view the adoption of MMC as key to that. We are reflecting on the committee’s recommendations and views from across the sector to establish how best to increase the use of MMC in housebuilding as part of the wider housing strategy.

Noble Lords talked about the comparative cost of MMC, including the noble Baroness, Lady Thornhill, and the noble Lords, Lord Fuller and Lord Carrington. Some stakeholders report that MMC has a higher upfront cost than traditional build, although others note that it is achieving cost parity or better. We anticipate that this will change as MMC demand and capacity continues to increase—it is a virtuous cycle. It is important to consider the whole-life cost of a building and the wider benefits that MMC can bring to a project.

I have already spoken about the affordable housing programme, and I hope that answered Members’ questions about how we will engage our own funding to drive this market forward.

On supporting supply, we are working to establish how best to address the strategic barriers to further uptake of MMC, including improved supply chain confidence, clarity for the warranty and insurance markets, and planning reform. The noble Lord, Lord Banner, raised an important point about custom-build and self-build, which I will take back to the department and let him have a written answer on that.

Before I run out of time, I want to address the issue of safety, because I recognise the concerns there will be following the Grenfell report. Many noble Lords referred to this issue. The Government take very seriously their responsibilities for ensuring that homes are safe for people. Building under factory conditions has the potential to improve consistency of finishes and details, but the level of quality achieved in both on-site and off-site construction depends on what is designed, specified and constructed. Building regulations—and this is really important—apply equally to homes built using MMC as to those built using traditional methods. Buildings must meet the safety and performance requirements in the building regulations, no matter how they are constructed or what materials are used. MMC developers and manufacturers are responsible for ensuring compliance with the regulations for any construction project, including ensuring that new techniques are used correctly.

The noble Lord, Lord Rooker, and the noble Baroness, Lady Wheatcroft, raised issues around the BRE, and I shall reply to those points in writing.

We share the sector’s ambition, and the ambition that we have heard today, for it to grow and succeed and play its part in getting Britain building, delivering the jobs, growth and opportunities that our country needs and deserves. We are hugely thankful to the sector for its support in getting us this far, for the continued efforts to realise its potential and for the exciting gains to come.