Renters’ Rights Bill

Baroness Taylor of Stevenage Excerpts

Tuesday 22nd April 2025 Lords Chamber

[Baroness Thornhill (LD)]

I apologise for interrupting the noble Baroness earlier; she was on my blind side. She mentioned those of us who have been involved in local government. Well, I had the pleasure, I would say, of being in a beacon council under the Blair Government when the now noble Baroness, Lady Casey, was actually doing all the work with the then Labour Government on anti-social behaviour. We recognised that it was a serious issue on many of our estates—and a deeply challenging one at that. I would argue that councils are not necessarily restricted in what they can do, but it is very challenging. It is difficult, and we often found that the courts were very sympathetic to tenants while we were sitting there going, “But you don’t have to live next door to them”.

Very often, another issue that occurred was that neighbours, after months of ongoing, low-level, constant nuisance, retaliated in some way. Such incidents were then reduced to being 50/50, when in actual fact you had only to speak to the people around the neighbourhood to know that that was not the case. These things are difficult to prove and difficult to get evidence on. People do not always write the dates down—“Oh, please keep a diary”—you know. Sometimes, even that is quite difficult for people. This is an area, Minister, where we would like to explore more what the route is for proving and what the bar is, what the level is, that has to be satisfied.

I must admit that I did not read into the Bill that it was that much of a restriction or a difficulty, but perhaps I have missed something. The National Housing Federation certainly has not listed it as one of its key concerns. That, in itself, perhaps tells me how much of an issue it is, but I would support the noble Baroness if that proved to be the case. As I say, I know from very bitter experience just how difficult this area is, and it is most likely to be the one that would come up most in certain areas.

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

My Lords, I thank the noble Baroness, Lady Scott, for her amendments relating to anti-social behaviour, and I agree with her powerful statement on ASB. As a councillor, I saw at first hand, as the noble Baronesses, Lady Thornhill and Lady Eaton, did, the utter misery that is caused to individuals and communities through the irresponsible actions of others and I properly understand why it is important that we have provisions to tackle it.

Amendment 14 seeks to reintroduce social landlords’ ability to apply for a demotion order in response to the anti-social behaviour of a tenant. This amendment seeks to enable landlords to demote social tenants to a less secure form of tenancy because of anti-social behaviour. However, the amendment as drafted would not work; the Renters’ Rights Bill will move tenants to a simpler tenancy structure where assured shorthold tenancies and the ability to evict shorthold tenants via Section 21 are abolished. There will therefore no longer be a tenancy with lower security to demote tenants to. To work, it would require a reversal of measures in the Bill to remove demoted tenancies and assured shorthold tenancies; that is the issue with the amendment as drafted.

I reassure the noble Baroness that tackling anti-social behaviour is a top priority for our Government and a key part of our safer streets mission. The Bill will shorten the notice period for the existing mandatory eviction ground, with landlords being able to make a claim to the court immediately in cases of anti-social behaviour. In addition, the Bill amends the matters that judges must consider when deciding whether to award possession under the discretionary ground. This will ensure that judges give particular regard to whether tenants have engaged with efforts to resolve their behaviour and the impact on other tenants within HMOs.

As well as the positive changes that the Bill makes towards tackling anti-social behaviour within the rental sector, we will crack down on those making neighbourhoods feel unsafe and unwelcoming by introducing the new respect order, which local authorities will be able to apply for and which will carry tough sanctions and penalties for persistent adult offenders. Together, those changes will ensure that the needs of victims are at the heart of our response to anti-social behaviour—that is what is important. Too often victims have felt that the power is all on the side of those who are committing the anti-social behaviour and not on the side of victims—that cannot carry on.

In response to the comments from the noble Baroness, Lady Eaton, about local authority housing tenants, the Bill introduces reforms to the assured tenancies framework, which applies to both the private rented sector and private registered providers of social housing. Local authority tenants are provided secure tenancies under a different tenancy regime. The vast majority of local authority tenants are secure lifetime tenants, and therefore they already enjoy a high security of tenure. Local authority landlords also have existing powers to tackle ASB, including eviction grounds similar to those in the Bill.

The point is taken from the noble Baroness, Lady Thornhill, about the further information about evidence and where the bar is going to be set; I will take that back to the team and come back to her. For these reasons, we feel this amendment is not needed and kindly ask that the noble Baroness withdraws it.

I turn to Amendment 66, which seeks to remove the requirement imposed upon judges, which has been introduced by the Bill, to give a particular consideration to whether a tenant, against whom a possession order is sought under ground 14 for anti-social behaviour, has engaged with attempts by the landlord to resolve the behaviour. We believe this change represents the wrong approach, for two reasons.

First, the Government believe that landlords should attempt to resolve problematic behaviour issues with tenants before attempting to evict them. By directing courts to particularly consider whether a tenant is engaged with these efforts, landlords will be incentivised to make them. Secondly, it is right that the court should give particular consideration to whether a tenant has engaged with attempts to resolve the behaviour so that courts may be more likely to evict a tenant who has, for example, been obstructive throughout the process. Where a tenant has shown willingness to engage constructively with the landlord, it is right that the court considers this factor, and it is for those reasons that we introduced the requirement.

I turn to Amendment 67, also tabled by the noble Baroness, Lady Scott, which seeks to expand the factors that a court is specifically directed to consider when deciding whether to make an order for possession against a tenant in a house in multiple occupancy for anti-social behaviour under ground 14. Currently, courts will be directed to give particular consideration to the past impact of the tenant’s behaviour on their fellow HMO tenants. This is in recognition of the increased impact that anti-social behaviour can have when victims have to share facilities and live in close proximity with the perpetrator, as the noble Baroness mentioned. Judges will also consider all factors relevant to the case and will already be directed generally to have consideration of the future and ongoing impact of that behaviour. As such, we do not think this amendment is strictly necessary to achieve the intended effect, although we are very grateful to the noble Baroness for flagging up that point.

[Baroness Scott of Bybrook (Con)]

My Lords, first of all, I thank the noble Baronesses, Lady Eaton and Lady Thornhill, and the Minister. All are from local government and understand anti-social behaviour over many years and the effect it can have. We on these Benches recognise that what is often described as anti- social behaviour may indeed be a symptom of much deeper, complex personal struggles. Those underlying issues, of course, deserve serious compassionate attention. So it is important that the Government are looking at the issues surrounding anti-social behaviour. I am particularly interested—I do not need an answer tonight —in bolstering the capabilities of support services within local government, to ensure that intervention can give people a real chance to turn things around before they get to the stage of being evicted.

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[Lord Jamieson (Con)]

My Lords, I am grateful to the noble Baroness, Lady Grender, for introducing an amendment that would allow short-term tenancies to continue for six months after a premises is constructed. The noble Baroness has highlighted the fundamental importance of increasing the supply of rented properties. Her case is compelling. This amendment would allow support for newly constructed properties by providing greater certainty for investors in that property. Additionally, it is often true that new properties have periods of vacancy while long-term lets are secured. We must consider, evaluate and listen to all solutions to ensure that liveable accommodation is not left empty and to help develop a stable and thriving community. I am thankful that the noble Baroness has brought this discussion to the attention of the Committee.

However, I wish to probe more widely why the Government are seeking to abolish assured shorthold tenancies, and therefore will speak to my opposition to Clause 2 standing part of the Bill. The short-term rental market supports job mobility, especially industries which require relocation or even temporary positions. Enabling the mobility of working-age adults to reach the depth and breadth of the United Kingdom is vital for economic growth. The modern workforce requires flexibility—the ability to move and adapt, and to pursue opportunities wherever they may arise. By discouraging the ebb and flow of economic activity, we discourage the labour market flexibility required for an expanding economy. Jobs must follow demand, not be restrained by the state removing the option of a short-term tenancy.

While the economic argument is compelling, so is the practical one. For individuals undertaking a home renovation or experiencing family breakdown, short tenancies provide not only a practical solution but an important reprieve, allowing people to escape the chaos of building works or to rebuild a new life without haste. Have the Government considered the benefits of shorthold tenancies for the tenant? Has the Minister considered both the economic and practical benefits of their existence?

With this Bill, the Government are overseeing a huge change to the rental market. Can the Minister please set out the impact on long-term housing pressures as a result of this ban? In markets with soaring demand and low capacity, is it not the case that short-term tenancies can alleviate some of the pressures that tenants face?

The Government have been consistent in highlighting the perceived drawbacks of short-term tenancies. Of course, as with any housing arrangement, there will inevitably be aspects that are less than desirable, depending on one’s individual circumstances. However, in identifying these challenges, it is only right that the Government also acknowledge and weigh the very real, tangible benefits that short-term tenancies offer to many others. As other noble Lords have mentioned, such tenancies expand the availability of housing which might otherwise remain empty. The decision to impose an outright ban is, in effect, the most extreme course of action—the so-called nuclear option. From these Benches, we cannot help but wonder whether sufficient consideration was given to alternative, more balanced solutions that might have addressed the concerns identified while preserving the flexibility and choice that short-term tenancies provide for so many.

I hope the Minister will carefully reflect on these benefits and acknowledge the convenience of shorthold tenancies, as well as the key role they play in enabling economic mobility and the use of homes which might otherwise remain empty.

[Baroness Taylor of Stevenage (Lab)]

My Lords, I thank the noble Baroness, Lady Grender, for her amendment, and the noble Lord, Lord Jamieson, for speaking to the opposition that Clause 2 stand part of the Bill on behalf of himself and the noble Baroness, Lady Scott.

The assured shorthold tenancy regime and Section 21 mean that millions of tenants live with the knowledge that they could be uprooted from their homes with little notice. Some of them end up living in substandard properties for fear of retaliatory action and eviction should they complain.

This has embedded chronic insecurity in the private rented sector. It affects both tenants who want a stable home and the many good landlords who operate professionally but are undercut by rogue landlords. It is a drain on aspiration and prevents tenants having the chance to achieve their potential. Removing Section 21 is critical to giving renters greater security and stability. They will be able to stay in their homes for longer and avoid the risk of homelessness. They will also have the confidence to challenge poor practice and unjust rent increases. Clause 2 therefore removes the assured shorthold tenancy regime and in doing so abolishes Section 21 as well.

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[Baroness Grender (LD)]

What we are trying to achieve with this amendment is a guaranteed fixed period for a developer. Authoritative bodies in this sector have suggested that some kind of guaranteed period does not necessarily mean that Section 21 has to remain. Or is it the Minister’s firm belief that you cannot give a fixed period to a developer in order to encourage construction without an element of Section 21 being there?

[Baroness Taylor of Stevenage (Lab)]

We do not want to see Section 21 in place for this. We are talking to the build-to-rent sector about the issues it believes it faces, but I genuinely believe that if somebody is going to be evicted from a property, there must be a reason why they are being evicted. We have provided in the Bill the grounds for why people can be evicted. When I come back to the House on this, I will update noble Lords on the work we are doing with the build-to-rent sector to increase supply. There are fairer ways of doing that than continuing to impose Section 21 evictions on people, just because they happen to have moved into a new-build property.

[Baroness Grender (LD)]

I thank the Minister and the noble Lord, Lord Jamieson, for participating in this short but quality debate. We will go back to our drawing board on this because we think that it is a way of delivering construction. We believe that we can get to a point where this is done without Section 21 being part of it. That was the intention behind the amendment; if it would not achieve that then we will go back and look at it again, because we believe that there must be a way to provide some kind of incentive to increase supply. This is a very modest approach and not about wrecking the Bill or taking 85% of landlords out of the equation, so we will take another look at it. We believe that it can proceed without Section 21 being imposed; clearly the Minister does not, so we will go back to the drawing board. With that in mind, I beg leave to withdraw the amendment.

Local Authorities: Temporary Accommodation Costs

Baroness Taylor of Stevenage Excerpts

Tuesday 22nd April 2025 Lords Chamber

[Baroness Elliott of Whitburn Bay]

To ask His Majesty’s Government what assessment they have made of the level and costs of temporary accommodation provided by local authorities.

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

My Lords, this Government recognise that homelessness levels are far too high and that this can have a devastating effect on those involved. It also places a huge financial strain on councils providing temporary accommodation. We have allocated an extra £233 million to councils directly for homelessness, taking total funding to nearly £1 billion this year. The Deputy Prime Minister is chairing an interministerial group to develop a long-term strategy to deliver the long-term solutions that we need.

[Baroness Elliott of Whitburn Bay (Lab)]

I thank the Minister for that reply. What are the Government doing to address some of the underlying drivers of the huge increase in the financial costs to both local and central government on this issue?

[Baroness Taylor of Stevenage (Lab)]

I thank my noble friend for that question. A number of factors are driving the high level of temporary accommodation costs, such as Section 21 evictions, which we are addressing through the Renters’ Rights Bill—there will be plenty of discussion on that later today. There is also the cost due to supply issues. We have a target of 1.5 million homes, which is a stretching target but achievable. There is the lack of social housing, to address which we will have the biggest increase in social and affordable housing in a generation. Some £800 million has already been allocated for the affordable housing programme and £2 billion for future years. There is also not enough homelessness prevention work. We have increased the homelessness prevention grant for 2025-26 to the highest level it has ever been, meaning that almost £1 billion is allocated for homelessness.

[Lord Young of Cookham (Con)]

My Lords, one reason for homelessness that the Minister mentioned is Section 21. Some 41% of private landlords are now planning to sell their property and many of them are issuing Section 21 notices, which are now the biggest cause of homelessness. On top of that, there are 35,000 asylum seekers in hotels whom the Government wish to move into rented accommodation. Will the group to which the Minister referred look at persuading the financial institutions to invest serious long-term money in good-quality accommodation to relieve the pressure on local authorities and to make good the shortfall?

[Baroness Taylor of Stevenage (Lab)]

The noble Lord is quite right to highlight the importance of attracting funding into housing. I recently attended a session in the City to encourage that, and there was a lot of interest in investing in the housing sector. We are also determined to restore order to the asylum system so that it operates fairly and properly, and we recognise the importance of a smooth transition out of asylum support accommodation for individuals granted refugee status. We are working with the Home Office to ensure that those individuals can successfully integrate into local communities.

[Baroness Thornhill (LD)]

My Lords, the Minister mentioned a welcome increase to the homelessness prevention grant. However, does she agree with the latest statistics from the District Councils’ Network that the Government’s new formula for allocating that grant has meant that some of the councils worst hit by homelessness will lose up to 39% of their homelessness prevention grant? Will the Minister commit to looking at those cases individually and reviewing the formula to ensure that it does not reduce for those areas experiencing the greatest challenges?

[Baroness Taylor of Stevenage (Lab)]

The noble Baroness referred to the homelessness prevention grant. The overall increase to that fund—the largest since the grant began—is important. It will be allocated to all local authorities in England based on their homelessness pressures. I will talk to the District Councils’ Network to see what it has found, because the grant is supposed to be allocated to meet the homelessness pressures of individual local authorities.

[Lord Laming (CB)]

My Lords, will the Minister ensure that when government funding is given to local authorities to deal with the problem of homelessness, the standard of provision will be adequate? We are particularly concerned about the number of families with young children who are in accommodation with excessive dampness.

[Baroness Taylor of Stevenage (Lab)]

The noble Lord makes a key point: it is very important that temporary accommodation is suitable for the needs of the household, and councils should keep the suitability of accommodation under review. Through the Renters’ Rights Bill, the Government will introduce powers to apply the decent homes standard to the private rented sector. Included in that provision is the power to bring temporary accommodation into the scope of the decent homes standard, as it is the Government’s intention that the decent homes standard should apply to temporary accommodation.

[Lord Watts (Lab)]

My Lords, does the Minister agree that the party across from the Government Benches introduced a policy to sell council houses without replacing them? Does she agree that it was a disaster and has cost billions of pounds to the taxpayer?

[Baroness Taylor of Stevenage (Lab)]

As the leader of a council that lost thousands of our homes to right to buy, I believe that the scheme needed reform. We are reforming it to deliver a fairer and more sustainable scheme, reducing the maximum right to buy cash discounts to pre-2012 levels. This will allow councils to keep 100% of the receipts generated by right to buy sales. If we had that right from the start, we would not have had the significant loss we have had. We are also increasing protections for newly built social homes by raising the cost floor period, during which discounts can be reduced, from 15 to 30 years. I hope that will make a big difference.

[The Lord Bishop of Oxford]

My Lords, I declare an interest as patron of Asylum Welcome, which works with asylum seekers and refugees in Oxford and Oxfordshire. What proportion of temporary accommodation provided by local authorities is used to house refugees who are assessed as priority need after having been granted refugee status? What steps are being taken to identify more suitable long-term accommodation for this cohort?

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[Baroness Taylor of Stevenage (Lab)]

I do not have the exact figure for the right reverend Prelate, but I will write to him with it if it is available.

I mentioned earlier the huge pressures we inherited in the asylum system. We are working hard to make sure that asylum seekers get a decision quickly and that we help local authorities plan more effectively as we reduce the number of asylum seekers waiting for the decision. Support is available through Migrant Help and its partner organisation, including advice on how to access universal credit and the labour market and signposting to local authorities for assistance with housing.

[Lord Jamieson (Con)]

My Lords, does the Minister agree that having a broad, dynamic and successful private rented housing market is crucial to providing much needed housing that reduces homelessness pressure and, as such, that the Government should ensure that the ability of renters in the private rented sector to obtain secure, fairly priced and decent-quality housing is not negatively impacted by changes to legislation?

[Baroness Taylor of Stevenage (Lab)]

I agree with the noble Lord, as I assume he will do with the Bill that we are bringing forward today, because it is similar to the Bill that his own party put forward. However, it is not right that renters should be subject to no-fault evictions at no notice or that they should not have access to the secure tenancies which we all know make for safe, secure families, communities and individuals. That is what the Renters’ Rights Bill will do. I am sure we will have plenty of debate on that in the next couple of weeks.

[Lord Best (CB)]

My Lords, does the Minister agree that the best and quickest way to reduce the cost to the taxpayer of temporary accommodation is to enable housing associations and councils to acquire and modernise those same properties and to stop paying exorbitant rents for rubbish property?

[Baroness Taylor of Stevenage (Lab)]

The provision of affordable housing is vital, and that is why the Government have made a huge commitment to deliver the biggest increase in social and affordable housing, including in the social housing sector through housing associations. Since taking office, we have announced a number of changes in planning policy which will support the delivery of affordable homes, including the new “golden rules” for grey belt land release and two immediate one-year cash injections of £800 million to top up the existing affordable homes programme. That will deliver up to an extra 7,800 homes. I hope that will start to make a difference, but we have a long way to go.

[Baroness Lister of Burtersett (Lab)]

My Lords, the HCLG Committee’s recent report on temporary accommodation highlighted the impact of refreezing the local housing allowance. It warned that this is a “false economy” because it will increase the risk of homelessness and reliance on temporary accommodation among families. What assessment have the Government made of these risks?

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[Baroness Taylor of Stevenage (Lab)]

I thank my noble friend; this is an important issue. We currently spend around £30 billion annually on housing support. The April 2024 one-year local housing allowance increase cost an additional £1.2 billion in 2024-25 and will cost £7 billion over five years. We appreciate the importance of increasing the availability of affordable housing, which is why we will publish a long-term housing strategy this spring—I use “spring” in the Civil Service sense, which is any time from now until July—that will set out a plan to reform the housing market so it works better for communities and builds 1.5 million high-quality homes, the biggest increase in affordable housing for a generation.

Renters’ Rights Bill

Baroness Taylor of Stevenage Excerpts

Tuesday 22nd April 2025 Lords Chamber

[Baroness Eaton (Con)]

My Lords, I declare an interest as vice-president of the Local Government Association and as part owner of rented properties in Bingley, West Yorkshire. I support Amendment 261, tabled by my noble friend Lady Scott of Bybrook, with its proposed new clause:

“Review of the impact of the Act on the housing market”.


Specifically, I welcome the proposed addition of a review of the impact the Bill will have on requests for social housing. The vast majority of landlords in this country are good, honest people who do a real service in maintaining Britain’s housing supply and providing decent homes to people before they start the journey of getting on to the property ladder, but the reality is that, with the ever-increasing regulation placed on landlords, not least the abolition of Section 21 no-fault evictions, which has already been mentioned, the signing of tenancy agreements will become more of a risk.

In reality, landlords will no doubt be more reluctant, under the new burdens placed on them, to take on more vulnerable tenants—for example, those who enter the market for the first time, without references, and those in receipt of housing benefit. Amendment 261, on reviewing the impact the Act will have on social housing, is necessary because local authorities and housing associations are going to come under pressure as never before to provide social housing, either because supply in the private rented sector will become more challenging to access or because rents are likely to spiral out of control under these proposals. I therefore support fully the amendment tabled by my noble friend.

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

My Lords, I thank the noble Baroness, Lady Scott, for her Amendments 1 and 261, and the noble Lord, Lord Shipley, and the noble Baronesses, Lady Thornhill and Lady Eaton, who have spoken in this short debate. I will keep my response to Amendment 1 short, as the purpose and aims of the Bill were debated in full at Second Reading. I agree with the noble Lord, Lord Shipley, that the Bill is perfectly clear in what it sets out to do.

The private rented sector has grown significantly over the past 20 years and is now used by over 11 million renters in England, with the support of 2.3 million landlords. I should say that most of those landlords are very good landlords who look after their tenants very well. Despite this growth, it still provides the least affordable, poorest quality and most insecure housing of all tenures, and that just cannot continue. A functioning private rented sector can provide a secure stepping stone for aspiring home owners, as the noble Baroness, Lady Eaton, said, and flexibility for those who want it, but the chronic insecurity embedded in the current tenancy system fails both those tenants looking for a stable home for their families and those landlords who are undercut by the rogues and the chancers who we know are there—they may be few, but we know they are there. This is a drain on aspiration. Reform of the sector is central to our opportunity mission, so that all have the chance to achieve their potential.

Although I understand the aims of the amendment, I do not believe that it is necessary. The Government made a clear manifesto commitment to transform the experience of private renting by levelling the playing field decisively between landlords and tenants—the very balance that the noble Baroness, Lady Scott, was talking about. This Bill delivers that promise. As I outlined at Second Reading, the Bill will strengthen the security of tenure for tenants, ensure that they are paying a fair rent, guarantee a minimum standard they can expect from a property, provide new robust avenues to redress, and much more. The noble Lord, Lord Shipley, referred to the attempts in later amendments to reintroduce Section 21 evictions. We will debate those when we get to them but I will say that 83% of landlords have five properties or fewer, so those amendments would be significant and really take the guts out of the Bill. The aims I set out align with the purpose in the noble Baroness’s amendment and lie at the heart of all our current and future decision-making.

The Government also recognise the work done by the majority of landlords, who provide safe and decent homes for their tenants. Both these issues of balance were mentioned by the noble Baroness, Lady Scott, but I was surprised at her assertion that the Bill would not achieve that balance. It is a very similar Bill to the one which she herself brought forward a few months ago.

We have been clear that good landlords have nothing to fear from these reforms. The Bill will bring much-needed certainty to the sector after years of inaction and delay. The noble Baroness, Lady Thornhill, commented on the Armageddon that we hear about; I remember hearing something similar many years ago during the discussions on the minimum wage. I understand landlords’ concerns and I hope we can address them as we scrutinise the Bill, but I am sure we can continue to debate the aims and impacts as we make our way through the 300-plus amendments tabled for debate.

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[Baroness Taylor of Stevenage (Lab)]

My Lords, before I speak to these amendments, I should have, at the beginning of the debate, thanked all noble Lords for their engagement in the work that we did before we got to Committee. I have been very grateful for the attendance at drop-in sessions and for the one-to-one meetings that we have had with different Members from across the House. The noble Lord, Lord Truscott, referred to the value of scrutiny in this House; I truly value that scrutiny and engagement, which have been a great help in the early stages of the Bill. The comments that I make are made with due and careful consideration of what noble Lords say in the Committee today and what they have said to me in our meetings prior to that.

I thank the noble Baroness, Lady Scott, and the noble Lords, Lord Truscott, Lord Cromwell and Lord Shipley, for the amendments, and the noble Lords, Lord Marlesford and Lord Carrington, for their comments on them. These amendments all seek to introduce fixed terms into the Renters’ Rights Bill.

[Lord Cromwell (CB)]

The Minister namechecked me. I did not have an amendment in this group. My amendments are in the next group and are not about fixed-term tenancies.

[Baroness Taylor of Stevenage (Lab)]

That is my mistake, and I apologise to the noble Lord, Lord Cromwell.

Amendment 2, tabled by the noble Lord, Lord Truscott, would allow landlords to create fixed-term assured tenancies of 12 months or less. As I set out during the debate at Second Reading, our Government are clear that there is no place for fixed terms in the future tenancy system. Landlords and tenants all want the same thing in the private rented sector: long-term tenancies, well-maintained properties and the rent paid —on time, we hope. That is the balance that we seek to strike.

A core principle of the future assured tenancy regime is that all tenancies will be periodic. As the previous Government also advocated, the removal of fixed terms is fundamental to improving tenants’ rights and ensuring that they can hold their landlord to account. Fixed terms just do not offer the best outcome for renters. They can oblige tenants to pay rent for substandard properties and restrict them from moving house if they need to. All the examples that the noble Baroness, Lady Scott, gave are of those who need secure tenancies—they need them for themselves and their families, and for the communities that they live in.

The noble Lord, Lord Truscott, mentioned that I have been a local government leader. My experience with social housing tenants who have long-term secure tenancies makes it clear to me that they help them to stabilise life for their families and to develop the communities we know that people prefer to live in.

I was not going to mention domestic abuse, but I am afraid that the noble Lord, Lord Truscott, and his dismissal of it has provoked me into doing so. Domestic abuse is just one reason to not have this type of tenancy, and I may come back to that later. Just this lunchtime, I met the person I set up the Stevenage domestic abuse service with, and that situation is getting worse, not better. We do not want people to be trapped in properties that they do not want to stay in.

I do not believe that this amendment would offer tenants more choice. In reality, initial fixed terms would become just another way that tenants would be forced to compete in a difficult market. I understand that there are concerns from landlords about the impact of removing fixed terms. However, the move to periodic tenancies does not pose a threat to good landlords—in fact, it will make it easier and simpler for them to operate by preventing them being locked into a fixed term.

Amendments 4, 5 and 6, in the names of the noble Lord, Lord Shipley, and the noble Baroness, Lady Scott, would allow for short fixed-term assured tenancies. The amendments would allow assured tenancies to contain a two-month, three-month or six-month fixed term. As I have set out, the Government do not believe such changes are necessary. Where a tenant wishes to live somewhere for a short period of time, the Bill allows them to serve notice at any point as long as they provide two-months’ notice. If one of these amendments were accepted, it is likely that short fixed-term tenancies would become the market norm, forcing fixed terms on to tenants who may not be looking for a short-term let and reducing flexibility for all tenants. In addition, tenants already need to give two months’ notice to landlords. Having two-month or three-month fixed terms would not add anything meaningful to this position, and would be contrary to our aims to simplify an overcomplicated system.

The noble Lord, Lord Shipley, referred to the issue of rent up front, which I am sure we will debate under future amendments. The point is that it cannot be required as a condition of taking on the tenancy. If, once the tenancy is in place, the tenant chooses to pay rent in advance—and it is their choice—they will be able to do so.

Amendment 173, in the name of the noble Lord, Lord Truscott, would prevent tenants serving notice to end the tenancy within the first four months of a new tenancy. This, coupled with the two-month notice period, would effectively lock renters into tenancies for six months. I have been clear today that the Government will not support any amendment that seeks to lock tenants in for any period of time. Tenants must have the flexibility to end tenancies when they need to. The noble Baroness referred to people whose jobs change; that might be the case, and to be locked into a fixed term would prevent them doing that. The Bill still requires tenants to provide two months’ notice when ending an assured tenancy, which will give landlords time to find new tenants.

I heard the points from the noble Lord, Lord Carrington, about build to rent. I do not think there is a case for treating that differently, but no doubt we will return to this in future debates. I look forward to meeting with the noble Lord tomorrow to discuss his concerns in more detail.

It is very unlikely that tenants will move unless they absolutely have to. Moving house is costly and comes with significant upheaval. In practice, tenants will usually be asked to complete a series of steps in order to enter into an assured tenancy, and that will include referencing checks, committing for two months and paying up to five or six weeks’ deposit, none of which they are likely to do if they are looking for a very short-term tenancy.

Finally, I turn to the intention of the noble Baroness, Lady Scott, to oppose the Question that Clause 1 stand part of the Bill. Clause 1 will prevent the creation of tenancies with a fixed term under the future assured tenancy regime. As I have already set out, the Government do not support the retention of fixed-term assured tenancies under any circumstances. The move to fully periodic tenancies is critical to strengthening tenants’ rights and enabling them to hold landlords to account.

To be clear, fixed terms force renters to pay rent regardless of the property’s condition. This disincentivises landlords from resolving repairs and can force tenants to remain in poor-quality housing. They also reduce flexibility for tenants to move when they need to—for example, if they have had a relationship breakdown or because they need to take up a new job. I am sorry to the noble Lord, Lord Truscott, for coming back to it, but they can prevent tenants leaving potentially dangerous situations such as domestic abuse.

Clause 1 will therefore ensure that all assured tenancies are periodic in future. The tenancy will roll from period to period until either party ends it. It will be prohibited to include a contract term that tries to create a fixed term, and any such term would be legally unenforceable.

As I have already explained, good landlords have nothing to be concerned about with these changes. They will not have to wait until the end of a fixed term to access some of the possession grounds, and a simpler set of rights and responsibilities will also make it easier for them to understand and follow the rules. The removal of fixed terms was the policy position of the previous Government, in which the noble Baroness, Lady Scott, served, and it is the policy position of this Government.

Clause 1 is essential to delivering a strengthened and more secure tenancy system. It will improve the ability of tenants to move house and challenge poor practice. For all the reasons I have set out, I kindly ask that noble Lords do not press their amendments.

[Lord Northbrook (Con)]

Will the Minister deal with the points made by the noble Lord, Lord Carrington, about institutional investors and their reluctance to invest when there is a minimum tenancy of only two months, and about lenders who are not prepared to lend to the sector? Does she feel that the institutional investors are an important part of the sector or are they not relevant?

[Baroness Taylor of Stevenage (Lab)]

I responded to that in an answer I gave to the noble Lord, Lord Young, at Question Time. Yes, institutional investors are important, but it is important that we do not create an idea that these are two-month fixed tenancies; they absolutely are not. They are assured tenancies with a two-month notice period on the part of the tenant. Most tenants will not want to take up a tenancy and go through all the procedures they will need to—as I set out—just to have a tenancy for two months and then leave it. Most tenants want a long-term tenancy where the landlord maintains their property and they pay their rent on time. That is how the system works. I do not think it will deter institutional investors from having the confidence they should rightly have in investing in build to rent, or any other form of rental investment, as a good investment. It is a steady source of income and, with a tenant with an assured tenancy, they will be more assured of that, not less.

[Lord Northbrook (Con)]

I apologise; I failed to declare my interest as a private landlord of rental property in Hampshire.

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[Lord Jamieson (Con)]

My Lords, before I start, I ask the Committee to note that I am a councillor in central Bedfordshire and therefore have an interest. I welcome the opportunity to speak to this group and to express my thanks to the noble Lord, Lord Cromwell, for raising this amendment and explaining it so carefully. I am quite grateful that I understood all along that the tenant was still eligible for the two-month notice period.

These amendments offer a clear and practical framework for tenants to request a voluntary extension agreement after four months of occupancy with terms that, as the noble Lord said, provide greater certainty and predictability for both parties. This would allow people the freedom to make a mutual agreement and choice that benefited both sides. As Conservatives, we believe that the Government’s role is not to overregulate or restrict but to create the conditions for stability, co-operation and choice. The amendments do exactly that: agreements built on mutual respect rather than compulsion.

Under the proposals from the noble Lord, Lord Cromwell, tenants would enjoy security of tenure for an agreed period. Landlords in turn gain the reassurance of occupancy, with their right to recover their property during the term limited to cases of anti-social behaviour or non-payment of rent. These are reasonable safeguards that encourage constructive relationships and stability in the rental market and will benefit both tenants and landlords.

This approach complements the amendments in my name and the name of the noble Baroness, Lady Scott, which we will discuss in due course. Together, they reflect a shared principle that flexibility, where it is entered into freely and transparently, strengthens rather than undermines tenant protections. We often speak in this Chamber about empowering tenants, but that empowerment must include the ability to make informed choices and enter into arrangements that suit tenants’ lives, reducing the risk that they will be forced to move. Voluntary extension agreements offer a proportionate and sensible way of achieving that aim without diluting the core purpose of the Bill. I hope the Minister will give these proposals the thoughtful consideration they deserve as we continue to shape a Bill that is fair, flexible and fit for the realities of today’s rental market. We look forward to working constructively with the noble Lord, Lord Cromwell, as he considers his approach ahead of Report.

[Baroness Taylor of Stevenage (Lab)]

My Lords, I thank the noble Lord, Lord Cromwell, for his amendments relating to mutually agreed voluntary extension agreement in tenancies and I thank the noble Baroness, Lady Thornhill, and the noble Lord, Lord Jamieson, for their contributions as well. Amendments 3 and 12 would allow a form of agreement where tenants can leave the tenancy by providing two months’ notice and landlords could gain possession only for rent arrears or anti-social behaviour. Tenants would be able to request this after four months of the assured tenancy and the landlord would have to agree in writing.

I am grateful to the noble Lord, Lord Cromwell, for meeting me to discuss his proposals. No wine was involved, but other beverages are available. I have considered his amendments carefully and the points he made about their potential efficacy. One of the reasons the Government do not want to reintroduce fixed terms or anything like them is that they add complexity into the system. Having a simple, single system of periodic tenancies will make it easier for both parties to better understand their rights and responsibilities.

Having looked at the noble Lord’s proposal, I say that it is not clear that it will be of much benefit to either party. The noble Baroness, Lady Thornhill, rightly referred to the nature of assured tenancies, and I think there has sometimes been a misunderstanding—perhaps concocted—of what an assured tenancy is. It is a permanent tenancy unless the landlord uses the grounds included in the Bill or the tenant gives two months’ notice. It is not a two-month tenancy; it is a permanent tenancy with two months’ notice on the part of the tenant. If both parties wish the tenancy to sustain for a certain period of time, nothing in the Bill prevents this. The Bill already prevents landlords using the key possession grounds for moving and selling within the first 12 months of a new tenancy. This provides tenants with additional protections for a period of time. Landlords can also communicate their plans to tenants if the tenants need that additional reassurance. It is also unclear what this model would offer to landlords, given that the tenant could still leave at any point, so it is very unlikely landlords would agree to it. For the reasons I have set out here and in previous debates, I hope the noble Lord will withdraw his amendment.

[Lord Cromwell (CB)]

I thank the Minister for her comments and for the very helpful meeting we had about this amendment. I have tried to strike a balance in my amendment between not going near a fixed-term tenancy and producing something that is of benefit to landlords. I can only tell her that, from my experience of talking to people, they are often keen to find incentives for a tenant to stay, because it is a costly and time-consuming business to change them. Therefore, I do not think one should dismiss too lightly the idea that landlords might forgo some rights in order to encourage a tenant to stay on: in fact, I have seen that in practice.

One should never drink alone, so if the noble Baroness opposite is going to have a glass of wine, perhaps the Minister would like to join in and the three of us could have a useful chat about this. I think there is something here that does not undermine the tenant’s ability to get out in two months but gives an incentive in that marketplace for the landlord to encourage a tenant to remain for the long term. The tenant will decide how long that term is, because they will be the one requesting an extension. It could be 10 months or two years: that is entirely a matter for them. So, I do not want to give up on this at this point. I will withdraw the amendment, but I suggest that we have a further chat to see whether there is something that can be worked up from this particular nugget.

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[Baroness Taylor of Stevenage (Lab)]

My Lords, I thank the noble Baroness, Lady Scott, and the noble Lords, Lord Willetts, Lord Evans, Lord Young—albeit that his amendment was very ably proposed by the noble Lord, Lord Willetts—and the noble Lord, Lord Best, for their amendments, and the noble Baronesses, Lady Wolf and Lady Warwick, and the noble Lords, Lord Shipley and Lord Fuller, for their comments during this debate. All these amendments seek to revise or introduce provisions in the Bill related to students, and I say well done to King’s College for having its team approach to this Bill in the Chamber today.

We do not expect that removing fixed terms will have a destabilising effect on the student rental market. New possession ground 4A will give landlords confidence that they will be able to regain their property to move in other students in line with the academic year. If tenants leave a tenancy early, the landlords will be able to find new tenants to take their place. The end of a fixed term does not automatically give the landlord possession. Landlords still have to follow the correct possession procedure. If fixed terms remained in the future, landlords would still need to follow the correct possession procedure.

Amendment 7 would allow fixed-term assured tenancies if the tenant was a student at the beginning of the tenancy. It would not be either right or fair for students to have less flexibility than other tenants just because of their educational status. Students who drop out of university could be required to pay rent for the rest of the fixed term, which could potentially reach thousands of pounds. All renters, including students, should have access to the benefits provided by the Bill.

The opportunity referred to by the noble Lord, Lord Willetts, is, as he rightly said, the meeting between housing and higher education. As someone who undertook a degree as a mature student with three children and a full-time job, I say that we simply must not assume that all students are the same. This is the opposite of elitism. It is ensuring that all student circumstances are taken into account and that those who need the greater stability that assured tenancies offer can have that option.

We have introduced a new possession ground to allow the cyclical nature of the student market to continue and provide landlords with confidence. This strikes the right balance and, in our opinion, is the much better approach. Referring to the question from the noble Baroness, Lady Scott, about tenancies in halls, the Government intend that any new purpose-built student accommodation tenancies created after transition will be exempted from the assured tenancy system following transition, as long as the landlord is signed up to a government-approved code of conduct. I hope that answers her question. For these, reasons I ask the noble Baroness to withdraw her amendment.

Amendment 40 seeks to expand ground 4A, which allows student tenants living in HMOs to be evicted in line with the academic year. It would allow students living in self-contained accommodation—one-bedroom and two-bedroom properties for example—to be evicted each year, and it seeks to address the concerns of some noble Lords that the existing scope of ground 4A does not cover all student properties. We have thought very carefully about the design of ground 4A. Limiting it to HMOs captures the bulk of typical students—that is, groups living in a house share. Meanwhile, students who need more security of tenure, such as single parents living with their children, postgraduate couples living together who have put down roots in an area, or families containing students, will be protected.

The core principle of the Bill is that tenants should have more security in their homes, and we think it is right that these groups should not be exposed to potential eviction using ground 4A. Self-contained one-bedroom and two-bedroom homes are also easier to let to non-students than student HMOs are, so, if a landlord cannot gain possession in line with the academic year and the tenants leave in the middle of the next one, the landlord is highly likely to be able to let the property out to non-student tenants. The noble Baroness, Lady Wolf, referred to student accommodation in London, and I imagine that there are other places where costs are prohibitive, such as Cambridge and Oxford. However, the Government’s action to increase supply is critical here. It is only by increasing supply that we will be able to stabilise rents. I do not think that the action proposed in the amendment would have that effect.

Amendments 41 and 45, taken together, seek to remove the requirement for a landlord intending to rely on ground 4A to give prior written notice to the tenants. This would mean that landlords renting to students in HMOs who satisfy the student test would be able to rely on ground 4A without giving tenants written prior notice, before the tenancy was entered into, of their wish to be able to recover possession using ground 4A. We cannot accept these amendments. The core aim of the Bill is to enhance the security of tenants in the private rented sector, including students. The prior notice requirement in ground 4A is key to this. If tenants are liable to be evicted through no fault of their own simply because of their student status, they must be informed of this reduced security before entering into a tenancy. Amendment 45 is purely consequential on Amendment 41, removing a later reference to the paragraph that Amendment 41 removes, and I therefore ask the noble Baroness, Lady Scott, not to press these amendments.

Amendment 42 tabled by the noble Lord, Lord Evans, seeks to allow the use of ground 4A in student tenancies agreed up to nine months in advance, rather than the six months in advance limitation that is currently in the Bill. Noble Lords will be aware that we introduced this measure in response to engagement with stakeholders and Members in the other place—I hope that answers the noble Lord’s question about consultation. They were concerned that students are often rushed into important decisions around accommodation before they have formed friendships or had time to properly judge a property’s condition or location.

This measure was intended to act as a strong disincentive to landlords who seek to sign students up to contracts early in the academic year. Increasing the time limit to nine months will push early sign-ups to too early in the academic year—before Christmas for a tenancy beginning in July. This entirely undermines the point of the deterrent. Six months strikes the right balance, allowing those who want to to agree a tenancy well in advance before exam season, but not too early before students have formed firm friendship groups, for instance.

Amendment 43, also tabled by the noble Lord, Lord Evans, goes even further and would extend the time limit to 12 months. For the reasons I have highlighted previously, we are of the view that six months is the right balance. Very few students sign contracts more than a year in advance, and this amendment would essentially destroy the entire premise of the provision, which is designed to prevent students being pressured into contracts too early in the academic year. For these reasons, I ask the noble Lord not to move these amendments.

Amendment 44 seeks to remove the restriction on the use of ground 4A to the summer of the traditional academic year. This would mean that students on a traditional term date, who are the majority, could be evicted in the middle of the academic year through no fault of their own. We recognise that the intent of the amendment is to ensure properties are available for students starting their courses on non-traditional dates, such as in January. However, we are content that supply will be available for these groups as previous groups on the same cycle would leave at the end of their courses, so there will be students leaving in January and students starting could take those properties. It would be wrong to expose all students to eviction in the middle of their academic year simply because, for example, a landlord found a group with different term dates who were willing to pay more. For these reasons, I ask the noble Baroness not to move this amendment.

Amendment 46 would allow landlords to evict approved English apprentices, as defined in the Apprenticeships, Skills, Children and Learning Act 2009, using the student possession ground 4A, provided all conditions for relying on that ground were met. Ground 4A was designed to capture the most typical students, such as those living in groups and away from home, on an annual letting cycle. Apprentices tend not to live that way, as they earn an income and are much more likely to live in a home they expect to stay in. I am therefore of the view that apprentices should enjoy the same security of tenure as other tenants and not fall under the scope of possession ground 4A. For that reason, I ask that this amendment not be moved.

Amendment 189 seeks to remove the private rented student tenancies from the assured tenancy system. I know there has been a lot of concern and debate over this at Second Reading and today. It would achieve this by allowing the Secretary of State to create or approve a code of conduct for student landlords and then allow landlords signed up to the code to offer tenancies that are completely removed from the assured tenancy system. This is the wrong approach: it would be wrong for students renting off-street housing, often indistinguishable from the property next door, to have an entirely different set of rights from their neighbours.

I understand that the noble Lord, Lord Young, is seeking to create consistency between private student landlords and landlords of purpose-built student accommodation, which we will exempt from the assured system through regulations. However, these are very different types of accommodation. Purpose-built student accommodation can often be rented only to students due to the nature of the property, and to be exempted in the future a private PBSA landlord will need to be signed up to the government-approved code of management practice. This code is managed by Unipol, an established organisation.

Other private rented accommodation let to students is significantly more diverse and often indistinguishable from other houses in the area. It would be wrong to remove the protections of the assured system. Other students renting privately should not be locked into fixed-term contracts or open to eviction without good reason. In addition, there currently exists no government-approved code that is relevant to such accommodation. Developing this would take a great deal of time and is likely to delay implementation of the Bill. We recognise that the student market has a cyclical business model and have therefore introduced ground 4A, allowing landlords to evict full-time students from HMOs in order to house incoming groups in line with the academic year. Ground 4A addresses the issues that the various amendments tabled by the noble Lord are, in effect, seeking to address. As such, I ask him not to move this amendment.

Amendment 266 seeks to exempt private purpose-built student accommodation from discretionary licensing where the landlord has signed up to a code of practice for managing such accommodation. Although codes of practice offer students assurance that a good standard of management is being met by their landlords, they are not tailored to addressing local issues in the way that licence conditions under licensing schemes are. Membership of the codes is voluntary, and members have an incentive to comply to ensure they can continue to present an attractive offer to students. While a failure to adhere to code standards can result in a landlord being removed from a code, licensing allows for stronger action to be taken where necessary. For example, local authorities can issue a financial penalty where there has been a serious breach of licence conditions.

We recognise that licensing can place a greater burden on landlords with large portfolios, such as those operating private purpose-built student accommodation. That is why local authorities already have discretion to streamline licence application processes and fees for such landlords. We trust local authorities to take a proportionate approach and work together with code operators and providers of these types of accommodation to make sure that licensing schemes remain focused on tackling the issues they were designed to address. I therefore ask the noble Lord, Lord Best, not to move his amendment.

I turn to government Amendments 47, 188 and 202. Currently, university-managed accommodation is exempt from the assured tenancy system, while private purpose-built student accommodation usually is not. Government Amendments 47, 188 and 202 would allow private PBSA to be subject to the same exemption, recognising that the two share many similarities. Students do not move into their accommodation expecting long-term residence, and it is right to ensure that this accommodation is available to new cohorts of students each year.

We intend that the exemption will apply only to private PBSA that is a member of the government-approved code of practice, which sets vigorous standards for the management of property and the relationship between managers and student tenants. If their membership of the code ends for any reason, so does their exemption. There will be no delay in requiring them to provide assured tenancies to new tenants. Although there is an existing power in the Housing Act 1988 to exempt PBSA landlords, it would have required government to frequently update secondary legislation with a list of landlords, causing a duplication of work between code administrators and officials and a lag in the link between code membership and exemption status.

We are also proposing an amendment to an existing power in the Housing Act 2004 that clarifies that educational establishments exempt from HMO licensing can be specified by reference to code membership and that the power can be exercised in the same way for private purpose-built student accommodation in future. The amendment also allows the scope of an exemption to be narrowed to certain groups of building, or building manager, within the membership if required.

[Baroness Scott of Bybrook (Con)]

My Lords, I am very grateful to all noble Lords who have spoken in what I consider an extremely important debate and contributed thoughtfully and constructively with their insights.

First, I would like to recognise the contribution by my noble friend Lord Evans of Rainow, who tabled Amendments 42 and 43. On these Benches, we believe the limitation may, as my noble friend said, inadvertently push the hunt for student accommodation into the January exam season and disrupt a vital time for many students up and down this country.

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[Baroness Scott of Bybrook (Con)]

My Lords, first, I assure the noble Baroness, Lady Thornhill, that this is not a wrecking amendment. It is trying to find a solution which does not potentially destroy the private rental market. If it is destroyed in any way, only one group of people will be affected, and that is the tenants.

I am grateful to noble Lords who—

[Baroness Taylor of Stevenage (Lab)]

My apologies, but does the noble Baroness not want to hear first from the Minister on the amendment?

[Baroness Scott of Bybrook (Con)]

Well, the noble Baroness knows what I am going to say, so that is that.

[Baroness Taylor of Stevenage (Lab)]

My Lords, I thank the noble Baroness, Lady Scott, for moving Amendment 8, and the noble Lords, Lord Jackson, Lord Empey and Lord Murray, and the noble Baroness, Lady Thornhill, for their comments. This amendment would allow fixed-term initial tenancies where the landlord lets fewer than five properties. As I am sure the noble Baroness would expect, the Government cannot accept this amendment. It would be neither fair nor justified for some tenants to have fewer rights, simply because the landlord happens to have a smaller property portfolio at the point at which the tenancy is entered into. All tenants must enjoy the benefits of the new system and the flexibility that periodic tenancies provide.

I have already commented on the likely impact on the market under Amendment 1. As I mentioned earlier, the noble Baroness referred to changes to the law in Scotland, which was very different in the important matter of rent controls. I met with the Scottish Housing Minister during the recent British-Irish Council and discussed this with him in order to learn lessons from what happened in Scotland.

The English Private Landlord Survey shows that 83% of landlords have four properties or fewer. Accepting this amendment would mean fixed terms remaining available for half of all tenancies. This would clearly fly in the face of what this Bill is trying to achieve. It would definitely break the manifesto commitment that we have already clearly set out and which we stand by.

It is also important to clarify that retaining fixed terms would not preserve the Section 21 eviction process, although this is a common misconception. Nor would it automatically retain the accelerated court procedure used for Section 21 claims, which allows cases to proceed without a hearing. If this amendment were accepted, landlords would still be required to seek possession using one of the grounds in Section 8 of the Housing Act 1988, for which the accelerated court procedure is not available. The removal of Section 21 evictions is the cornerstone of this legislation, and the Government will not accept its reintroduction to reduce court costs or for any other purpose. The noble Lord, Lord Murray, was a Minister in the last Government. I remind him that his Government also had the policy of removing Section 21 evictions. The noble Lord must have had a memory lapse in the Chamber this afternoon.

The noble Lord, Lord Jackson, referred to the cost of court possession hearings for smaller landlords. We are confident that the Bill does not levy unfair new costs on landlords. However, it is reasonable to expect landlords to ensure that their business model covers the possible cost of possession cases proceeding through court. The current accelerated court procedure is not a guarantee of avoiding court proceedings or the associated costs.

I will comment briefly on the points made by the noble Lord—

[Lord Murray of Blidworth (Con)]

Can the Minister give us a rough estimate of the legal costs of repossessing a flat on the grounds of non-payment of rent, from beginning to end of the proceedings?

[Baroness Taylor of Stevenage (Lab)]

I am sure the noble Lord has a figure in mind. I will write to him; as he would expect, I do not have that figure at my fingertips.

The availability of court hearings is vital for tenants’ access to justice, especially in the new system whereby landlords must always evidence that grounds are met. We are working closely with our colleagues in the Ministry of Justice and HM Courts & Tribunals Service to make the possession process more efficient and easier to understand. The noble Lord, Lord Jackson, made a very good point. It can be difficult for both landlord and tenant to understand the process. They may be deterred from accessing the legal redress to which they are entitled because of difficulties in understanding how it works.

We are also committed to digitising the process. I can reassure the noble Lord that we are working closely with the MoJ to make sure that the justice system is fully prepared to implement the Renters’ Rights Bill once enacted. I am not going to guarantee end-to-end digitisation of the whole court system—that is way beyond my remit in this Chamber—but we are working on it in relation to renters’ rights. This includes a commitment to digitising the county court possession process to create a modern, efficient service for court users. I was reassured to find that this is being built on to an existing system, rather than being created from scratch. Work is proceeding at pace on that.

The noble Lord, Lord Empey, and the noble Baroness, Lady Thornhill—

[Baroness Scott of Bybrook (Con)]

Will all these changes to the court system, and digitisation, be totally in place before this part of the Bill is enacted?

[Baroness Taylor of Stevenage (Lab)]

I was just about to respond to the point made by the noble Lord, Lord Empey, which may answer that question. As usual, we are working with the Ministry of Justice to complete a justice impact test. This will identify the additional burdens on the justice system arising from new policies in the Renters’ Rights Bill, and it will ensure that the system is fully prepared for any increase in workload. I hope that reassures the noble Baroness.

[Lord Empey (UUP)]

The Minister made the valid point that tenants with different landlords should not be treated differently. If a landlord owns 30 or 40 properties, and one or two are caught in a dispute and no rent for them is coming in, that is manageable; but if they own only one or two properties, 100% or 50% of their income goes. I accept that the Minister has a valid point about the treatment of tenants; but given that the majority of landlords own single or small properties, there is a specific issue. Can the Minister say whether she has had any communication with local authorities? They are the people who would have to pick up the pieces if there is a diminution in supply. Has the Minister given any consideration to that?

[Baroness Taylor of Stevenage (Lab)]

I will respond to that in two ways. First, the work that has been done on the court system is both for landlords and tenants. We want it to work for both sides, so that when a landlord needs to seek possession they can do that quickly. I think any landlord’s business model should account for the possibility of a slight break in rental payment, but obviously we want to resolve these issues as quickly as possible, and to do the same for the tenants. There needs to be quick access to recourse if they need it, and we will do that.

Secondly, in respect to the point about local authorities, I have covered extensively the Government’s assessment of whether this will have an impact on supply issues. I reiterate that the Bill’s impact assessment has received a green rating from the Regulatory Policy Committee. We do not believe there will be a sustained or significant impact on supply, but we will monitor that very carefully once the Bill is passed.

I hope I have answered all noble Lords’ points on this but, for the reasons I have set out, I hope the noble Baroness will withdraw her amendment.

[Baroness Scott of Bybrook (Con)]

Again, I apologise to the Minister. First, I assure the noble Baroness, Lady Thornhill, that it is not a wrecking amendment but one trying to find a workable solution that does not potentially destroy the private renters’ market as the only people who will suffer from that will be tenants in the future.

I am very grateful to the noble Lord, Lord Empey, and to my noble friends Lord Jackson of Peterborough and Lord Murray of Blidworth for their thoughtful and constructive insights into how we deal with this issue. Across the Committee there is clearly a shared ambition to improve the private rented sector for tenants, and I believe today’s discussion has shown that doing so must include supporting the landlords who make the sector possible.

As I set out earlier, Amendment 8 is a carefully considered proposal aimed at safeguarding the position of small landlords—those who let fewer than five properties and who make up the overwhelming majority of the sector. These are not large-scale investors or corporations. They are individuals, often couples, pensioners or families, who rent out a single property or two as a way of securing long-term stability for themselves. This amendment is not about undermining tenant protections. It is about recognising that those protections will be meaningful only if the rental homes remain available in the first place.

The removal of Section 21 without adequate alternatives risks pushing small landlords out of the market. As we have heard, this is not hypothetical, it is already happening. Once again, I will talk about Scotland, because I do not believe—and nor do the people in the industry who I have spoken to—that this was just about rent control. In Scotland, it has been made clear what can happen when reforms are introduced without properly accounting for market balance. There has been a sharp reduction in landlord numbers, escalating rents and a shrinking supply of rental homes. This is not the future we want in England for our tenants and is exactly what this amendment seeks to prevent.

Recent findings from the Paragon Bank, based on a survey of over 500 landlords, reinforce this concern for us. An alarming 65% of respondents indicated that they are now more likely to scale back their property holdings as a direct result of current and proposed reforms. This is a clear indication of the potential real-world consequences of the Bill if the needs of small landlords are not adequately considered. Amendment 8 offers a modest but vital safeguard. It enables the Government’s reforms to proceed while providing breathing space for the small-scale landlords who play such a crucial role in meeting the housing needs of this country.

To conclude, I urge the Minister to listen carefully to the issues raised in this group and to give serious consideration to Amendment 8, not as a dilution of the Bill’s aims but as a necessary and constructive contribution to its long-term success. I beg leave to withdraw the amendment.

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The amendment seeks to encourage collaborative working between tenant and landlord, flexibility and the efficient working of the private rented sector to the benefit of both tenants and landlords. I therefore ask the Minister at least to give it a fair hearing, because essentially it is a sensible and practical solution. I support the amendment.

[Baroness Taylor of Stevenage (Lab)]

My Lords, I thank the noble Lord, Lord Jamieson, for moving the amendment in the name of the noble Baroness, Lady Scott, and I thank the noble Lords, Lord Carrington, Lord Jackson and Lord Truscott, for their thoughtful interventions in this debate.

Amendment 9 would retain fixed terms in the future assured tenancy system. Landlords and tenants would be able to agree to include a fixed term in tenancy agreements under which the landlord could not use the grounds for selling, occupation or redevelopment or increase the rent during the fixed period. Amendment 13 would remove the restriction on varying or adding new tenancy terms covering fixed terms or rent periods. I have already set out today why the Government will not accept amendments that would reintroduce fixed terms. I hate to disappoint the noble Lord, Lord Carrington, on the Damascene conversion front, but that is not for me today. Allowing the option of fixed terms only creates the illusion of choice for tenants. In an oversubscribed market, tenants often feel they must sign what is required of them by landlords.

The noble Lord, Lord Truscott, referred to groupthink, with reference to fixed-term tenancies and the purpose of the Bill. I prefer to refer to democracy. We set out an intention in relation to renters’ rights and received a strong electoral mandate for that, which we are now putting in place. So it is not groupthink; it is a democratic mandate that we have to deliver what we have set out in the Bill.

Fixed terms do not place equal requirements on both parties. In reality, landlords retain the ability to end the tenancy when the tenant is at fault, but tenants cannot leave the tenancy for any reason, even if the property is not safe to live in.

The amendments would also create a legal ambiguity about what new contractual terms could cover. The noble Lord, Lord Carrington, raised the issues of rural tenancies—I know we will return to that in future groups—and investors, on which I have already commented so I will not repeat my comments around that. For the reasons that I have set out here and in previous debates, I hope the noble Lord will withdraw the amendment.

[Lord Jamieson (Con)]

My Lords, I am grateful for the thoughtful contributions made by my noble friend Lord Jackson and the noble Lords, Lord Carrington and Lord Truscott, and for the response from the Minister.

What has emerged from this discussion is a shared recognition that flexibility and tenant protection need not be opposing forces. That is a view held not just within this Chamber; across the housing sector, there is broad concern that eliminating the ability for landlords and tenants to enter fixed-term agreements by mutual consent risks overlooking the real-world complexities of today’s rental market. Propertymark has warned that fixed-term tenancies—when agreed freely—offer tenants a sense of security and help landlords to plan with certainty. It notes that these arrangements are particularly valued by renters with lower incomes, as they offer both predictability and peace of mind.

However, we must not overlook that predictability is just as important for landlords. When there is a clear start and end date, both parties benefit from a secure timeline. For tenants, that means a guaranteed period of stability. For landlords, it means reliable income and the ability to plan financially without the fear of an abrupt vacancy. By contrast, rolling tenancies without the option of a mutually agreed fixed term introduce a level of uncertainty. Tenants may leave with just two months’ notice, potentially leaving landlords with no income and limited time to find a new occupant. This kind of unpredictability is not just inconvenient; it undermines the landlord’s confidence and may discourage future investment in the sector, as the noble Lord, Lord Carrington, mentioned, given the difficulty of getting buy-to-let mortgages.

These concerns are not hypothetical. In a recent survey of more than 900 landlords, nearly two-thirds said they planned to leave the sector, reduce their portfolio or shift towards short-term or holiday lets, citing this Bill as a central reason. A key concern on this side of the House is the availability of rental property. We remain concerned, and we have not received assurances from the Minister on that score. Many feel that their voices have not been heard during this process and their legitimate concerns have been too easily dismissed.

Of course we must listen to those who raise valid concerns about the historical misuse of certain tenancy models, but these amendments are not about reinstating the past. They are about creating a future where arrangements are respected and supported. This is not about rebalancing the system in favour of landlords but about recognising that trust and stability can emerge where both parties are empowered to agree terms that reflect their own needs.

We cannot afford to ignore the very real concern that excessive rigidity will push landlords out of the market and make it more difficult for tenants, leaving behind a smaller, less responsive and more expensive private rented sector. If a student, contract worker or family navigating a temporary relocation agree on a fixed term that suits both parties, should we really prevent that flexibility? That is precisely what Amendments 9 and 13 in my name seek to preserve. The ability to fix a term by agreement, or to vary the terms of a tenancy, where both parties consent, reflects the real needs of the modern, mobile and diverse rental landscape. It ensures that, where there is mutual understanding, the law does not become an unnecessary barrier.

I say again that this is not about exceptions to the Bill’s purpose but about contributions to it. The right to housing includes the right to enter into fair agreements that are mutual, transparent and freely chosen. That is also why I have included a probing amendment on why the Government are seeking to end certain types of assured tenancy. I hope the Minister will give these proposals the careful consideration that they deserve. There will still be time for a Damascene conversion as the Bill proceeds. I thank all noble Lords for the richness of today’s debate. With that, I beg leave to withdraw the amendment.

--- Later in debate ---

[Baroness Scott of Bybrook (Con)]

My Lords, I am very grateful to all noble Lords who have spoken in this debate. Indeed, it follows on very neatly from our earlier debate on fixed-term tenancies. My noble friends Lord Davies of Gower and Lord Moynihan made compelling arguments for why we should permit fixed-term tenancies for both professional athletes and police officers. The benefits were set out with conviction and clarity, and I hope the Government Benches have listened. Of course, I would prefer that fixed-term tenancies continued to be available for everyone.

I will not rehearse the arguments made earlier, but does not the growing list of amendments seeking exemptions highlight the real value that fixed-term tenancies offer, supporting people from all walks of life, from athletes to police officers and everyone in between? Nurses, doctors, students, military personnel and even performers can all benefit from a fixed-term tenancy. The Government should consider these benefits. In removing fixed terms altogether, the Bill risks taking away short-term lets that serve as a real benefit for many thousands of people.

I turn to the Minister’s Amendment 59, which expands ground 5C to account for police officers. These Benches understand the importance of an employer’s need to regain possession of rented property if the tenancy is linked to a tenant’s employment. I thank the Minister for setting out details of the amendment.

Finally, I wish to note Amendment 62, tabled by the right reverend Prelate the Bishop of Manchester. I thank him for the chat we had about it, because I had no idea that this happened within the Church of England. Enabling a debate on possession for the purposes of housing a person leaving tied accommodation is most welcome. This is an important issue, as it ensures that a landlord, who is often also the employer, can regain possession of a property when it is needed to house a new employee, but also—as in the case of the Church of England—allows the Church to regain a property that is required for the retiring employee. We must recognise the value of maintaining the availability of essential employment-linked housing, and consider how best to safeguard it in practice. Additionally, we must not discourage landlords from helping tenants by giving them extra time to move out, providing references or offering alternative housing, especially in sectors such as education or farming—or, indeed, in the Church.

This debate has encapsulated the depth and breadth of the Bill, and the numerous areas that it covers. A modern, dynamic workforce needs the freedom to move, adapt and pursue opportunities wherever they arise. We must have a laser focus on occupational needs when considering any changes to the rental market.

[Baroness Taylor of Stevenage (Lab)]

My Lords, before I respond to these amendments, I congratulate Leeds United on their promotion to the Premier League. They are not my team, but what an achievement. We were all shouting when they got through the other day, so well done to Leeds. I have several close friends who are Leeds supporters, and they will be listening to that with interest.

I thank the noble Lords, Lord Davies of Gower and Lord Moynihan, and the right reverend Prelate the Bishop of Manchester for their amendments, and the noble Baronesses, Lady Grender and Lady Scott, for their comments. These amendments are on fixed terms and occupational possession grounds. The noble Baroness, Lady Grender, is quite right to highlight the insecurity of assured shorthold tenancies. They are not secure tenancies, and I do not accept that it is better for tenants to have a fixed-term tenancy than a periodic tenancy, which is theirs until they decide to end it and give the necessary two months’ notice.

I will start with Amendment 10 in the name of the noble Lord, Lord Davies of Gower, and Amendment 11 in the name of the noble Lord, Lord Moynihan. These would retain fixed terms where the property is let to any ranking serving police officer and to professional athletes. As with Amendment 7, the Government believe tenants should not have reduced flexibility and greater financial obligation because of their personal circumstances. I am not convinced there is any case for police officers, who put themselves on the front line in the service of others, to benefit any less from the new tenancy regime. I do not think the case for that has been made.

We have heard concerns about ensuring provision of housing for the police, and that is why government Amendment 59 amends possession ground 5C to ensure it is available to police forces and others who provide accommodation for their officers. This will allow landlords to take possession where a tenancy was granted to an officer in relation to their service in the office of constable, and the tenancy is no longer required for the purpose for which it was granted. I do not consider it necessary to retain fixed terms in addition to this.

Needless to say, we all want to see the UK’s excellent professional athletes succeed in their endeavours. The whole Committee is aware of the sporting achievements of the noble Lord, Lord Moynihan, and his advocacy and service on behalf of British sport. However, it would seem a shame to lock athletes into fixed terms, which might prevent them moving around the country in pursuit of sporting greatness. We would not want to do that. However, if an athlete is in accommodation provided by their employer, then ground 5C would apply and the tenancy could be ended, as necessary.

Amendment 62, in the name of the right reverend Prelate the Bishop of Manchester, seeks to create two new grounds for possession. The first, new ground 8A, would enable a landlord to seek possession from an existing tenant in order to re-let that dwelling to a former employee—of the landlord, we assume—who was housed in accommodation tied to their role. It would also apply to other types of workers, such as officeholders. I appreciate the aim of the right reverend Prelate’s amendment and, following engagement with bishops, including the right reverend Prelate the Bishop of Chelmsford, we are sympathetic and understand that the Church wishes to house retired clergy. However, after very careful consideration, I genuinely believe this should not be at the expense of existing tenants. We have already created expanded or strengthened possession grounds to cover situations—such as housing employees or evicting tenants to use the dwelling as supported accommodation—where we believe that the needs of those involved can be deemed to overrule the general principle that renters deserve security of tenure and should be able to put down roots in their long-term homes.

We are not of the view that housing a former employee of the landlord meets the bar to overrule the general principle that private renters should have secure homes. In order to house the former employee, another tenant would need to be evicted, through no fault of their own, placing them in the position of needing to find a new home. This simply moves the problem around. As such, we are content that the current grounds strike the right balance.

The second proposed ground, 8B, seeks to enable possession of a tenanted property so it can be relet to a surviving spouse, civil partner or dependant of a person described in the previous proposed ground who died before being required to vacate the accommodation linked to their role. Although I appreciate the reasons behind wanting to help people in these circumstances, again, this proposed new ground would mean an existing tenant could be evicted through no fault of their own, simply moving the problem around and creating more insecurity for more tenants. For the reasons I have set out, I ask that noble Lords not press their amendments.

Birmingham City Council

Baroness Taylor of Stevenage Excerpts

Tuesday 1st April 2025 Lords Chamber

[Baroness Pinnock (LD)]

My Lords, 17,000 tonnes of uncollected household waste creating mountainous heaps of stinking rubbish on the streets of Birmingham is simply unacceptable—particularly in terms of the public health hazard that is created. As a result, and after three weeks of a strike by bin workers, the city has declared a major incident. It is expected that this will allow the council to implement a contingency plan to clear the waste mountain from the streets. So my first question to the Minister is: how confident are the Government that the waste will be cleared before the Easter holidays? Given that this emergency action has been taken because of the growing public health risk, how sure are the Government that diseases caused by a combination of rotting rubbish and rats can be prevented? My third question is: what are the public health risks faced by residents living in those parts of Birmingham where the rubbish mountains are worst?

The very challenging financial strictures facing the city council are of course one cause of this dire situation. The apparent failure to tackle the long-standing equal pay claims from women employed by the council is another contributory factor. Equal pay claims have been a challenge for councils across the country. Some resolve the problem by outsourcing: others, including my own council, resolved the absolutely unfair pay systems over 20 years ago by working with unions to agree a single pay spine and settling women’s claims for lost pay. |If that was 20 years ago, can the Minister explain how it is that, in Birmingham, equal pay claims were allowed to fester for so long?

I raise the significance of equal pay as the council cites it as a fundamental reason for not being able to settle the current dispute. Can the Minister comment on whether Birmingham City Council has finally resolved historic equal pay claims and whether existing pay for all employees is on a fair footing?

It is of course right to acknowledge that Birmingham has had a reduction in its core funding of 40% or more, which has left the spending level per person 19% lower than 14 years ago. In more deprived areas, the loss per person is nearer to 26%, according to a report from the IFS. Clearly, the huge loss of funding has put the council into very difficult circumstances. Eleventh-hour additional funding from the previous Government helped forestall the financial collapse of the city council. As a consequence, very difficult decisions have had to be made. Can the Minister confirm that major change to support council finances is needed and will come?

Finally, it has to be asked whether Birmingham City Council is too large. It serves 1.2 million people, which makes it the largest local government authority in Europe—double the size of the next largest in this country. With just 101 councillors, each one serves over 12,000 people. Can the Minister explain how community representation can occur under these circumstances? The reason for the question is that the different needs and aspirations in a council of that size are hard to meet when elected representation is on that scale. It seems likely to have contributed to the problems now being faced. Does the Minister agree?

Birmingham is a great city. It needs the support of the Government and Opposition in aiding a recovery. I look forward to the questions asked being answered, either now or in writing.

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

I thank both the noble Lord and the noble Baroness for their questions. I will elaborate on the Statement a little but, before I do, the tone taken by the noble Lord, Lord Jamieson, showed no acceptance of the 14 years of funding withdrawal from local government. That is at the heart of this problem.

I would like to update the House on the statutory intervention at Birmingham City Council, which was part of the reason for this Statement in the other place, and on issues affecting the waste service, following the Statement made by my honourable friend the Minister for Local Government and English Devolution in the other place yesterday. This Government were elected on a manifesto that pledged to fix the foundations of local government and we have set about doing that with some energy. The public rightly expect and deserve well-functioning local councils that provide the essential statutory services that residents rely on.

Local councils must be fit, they must be legal and they must be decent. Commissioners have been working with Birmingham City Council for the last 18 months to support the council in its recovery. Their latest report on that progress was published by the Government yesterday and lands at a point of acute difficulty for residents in Birmingham. As we know, the ongoing waste dispute is resulting in rubbish piling up in the streets, so I will also take this opportunity to give the latest update on the status of that dispute.

The council has taken important initial steps forward on its improvement journey and is working constructively with commissioners. It has made significant progress in addressing historic equal pay issues and fixing the foundations of its governance. The leader, Councillor Cotton, and his group are taking difficult decisions to get the council back on track. The commissioners have recognised that, and that his calm leadership through stormy waters is definitely moving the council forward. The new managing director, Joanne Roney CBE, has brought a steady hand and is beginning to make permanent senior appointments that will contribute to that much-needed stabilisation. The council has also achieved a breakthrough by achieving an agreement to settle the outstanding claims to end the ongoing equal pay saga. It has also set a reimplementation strategy for the Oracle system, which was part of the issue there.

That improvement is encouraging, but deep challenges remain. In the short term, commissioner oversight and close supervision will still be required to maintain the momentum that has started to build. There is a difficult road ahead on the key aspects of the best value regime—governance and culture, financial management and service delivery—because substantial risks threaten the journey to reform and recovery.

As we all know, there is a live industrial action in waste services involving one of the three unions recognised at the council. The Government will support the leader and his team at Birmingham, directly and through the commissioners, to move the council on from these historic issues. That includes an increase in core spending power of up to 9.8%, or £131 million, for 2025-26, including £39.3 million of new one-off recovery grant, illustrating the Government’s commitment to correcting the unfairness in the funding system; and an “in principle” agreement to the exceptional financial support, totalling £1.24 billion.

The noble Lord, Lord Jamieson, raised the issue of council tax, but actually it was his Government who signed off a 10% council tax increase in Birmingham last year. That was more than the council put up its council tax by this year.

Councils deliver more than 800 services and make a huge difference, but it is accepted that for many, the most visible and universal service is the collection and disposal of household waste. Many noble Lords know that the current industrial action in the city is causing misery and disruption to local residents. I am not going to make light of that; I know how difficult it is for them.

From the outset, we want to be clear that statutory intervention is led by commissioners and Ministers, who cannot legally intervene in the industrial action. The Minister for Local Government and English Devolution has been in regular contact with the leadership of the council throughout as it has sought to find a resolution which, importantly, maintains the reforms needed to build a sustainable council and which also returns waste collection to a normal functioning service. This is causing public health risks to the city’s most vulnerable and deprived and, as a result, yesterday Birmingham declared a major incident to give it the mechanisms to better manage the impact on residents. I support that decision, and this Government will back local leaders to bring the situation back under control in the weeks to come.

The Government will not hesitate to provide support in any way that Birmingham’s leaders need and, as Parliament would expect, a meeting with the leadership of the council, the commissioners and other key local partners is taking place to make sure that we are doing everything we can to protect public health. I spoke to Councillor Cotton myself this afternoon to ask him if there is anything further he wants us to do.

It is in the interests of all parties—and, most importantly, the people at the heart of this, the residents of Birmingham—that the industrial action is brought to a close in a meaningful and sustainable way as soon as possible, and we encourage all parties to redouble their efforts, get round the table and find that resolution. Councillor Cotton confirmed that live negotiations are ongoing; that work is still continuing. To do this, any deal to end industrial action must maintain value for money and ensure a fit-for-purpose waste service, without creating or storing up liabilities for the future. All parties recognise that Birmingham’s waste service has been in urgent need of modernisation for years. Any deal reached must not repeat the mistakes of the past.

Practices in the waste service have been the source of one of the largest equal pay crises in modern UK history, resulting in costs of over £1 billion. This situation simply cannot continue, and that is what needs resolving, and resolving urgently. Our Government will support the council in its journey to creating the sustainable, fair and reliable waste service that the residents of Birmingham deserve. We will support the council to resolve historic issues and to continue to establish the leadership, governance and culture that will transform the services and deliver good-quality public services for the people of Birmingham.

On the noble Lord’s specific questions and his comment about failing to address the issue, there have been consistent meetings and discussions with Birmingham throughout this situation to make sure that we give it any support it needs, but it is right that it should be Birmingham City Council’s decision to enable co-ordination between public sector partners on the ground in Birmingham. That is why it has declared this major incident—to ensure that public safety and health is restored. While the situation in Birmingham is clearly very serious and deteriorating, the declaration of a major incident is a well-established mechanism for ensuring that public sector partners can co-ordinate locally to deliver a resolution.

The noble Lord asked whether COBRA would be convened. COBRA is used for significant crises which require a collective government response, co-ordinated at the centre by the Cabinet Office. We are in regular contact with Birmingham City Council, and local leaders are confident at the moment that they can manage the situation. Should this change, we stand ready to respond to any ask for support.

The noble Lord asked how many bin lorries are active. He will be aware that one of the issues was the blocking, as part of the strike action, of bin lorries’ entrance to and exit from the depot. We are hoping that that can be resolved as the negotiations go forward. I cannot tell him off the top of my head exactly how many bin lorries are able to operate, but I shall come back to him in writing on that.

The noble Baroness asked how confident we are that waste will be cleared before Easter. We all want to see this situation resolved as quickly as possible. I hope that, with the good will of all parties, and given that they are still in negotiations with each other, we will be able to resolve this dispute sooner rather than later.

The noble Lord asked about sending in staff or giving extra money to help clear up the rubbish, and whether we would send in private contractors to do that job. As you all know, I am a firm believer in devolution and in letting local people sort the issues out locally. It is right that the response is led by the area’s key public sector partners. We are in regular contact with those local leaders, and negotiations are still open.

On the issues relating to public health, the director for public health at Birmingham City Council is part of the response, and the impact assessment of the strike is closely monitoring the situation on the ground and will continue to do so. The UK Health Security Agency met with the director for public health yesterday and will remain in close contact to ensure that all parties are well informed.

Issues were raised about equal pay, and of course, the noble Baroness is right to say that we needed to resolve those. They were entrenched and affected some of the female workers in Birmingham enormously. We have to give credit to Birmingham for working its way through what has been a very long and hard process. I have gone through one of these equal pay settlements myself. The trade unions have been involved in resolving most of the issues; this is that last part of that process, and the matter is still outstanding. As I say, we urge everyone concerned to get round the table and resolve this now.

I hope that that has answered all the questions. The noble Baroness asked about the size of the council. We are going through a process with all councils of discussing how we take things forward, but it is important that, at the moment, we leave the commissioners and local leadership in Birmingham to do the work they need to do to turn the council around. That work is progressing well; there is still a lot more to do but a lot has been done already, so I hope we will get to where we need to be.

The noble Baroness also referred, rightly, to funding cuts. Birmingham City Council received the sharpest cuts of any council in the country. Because it is the biggest council in the country, the ripple effect that we all felt in local government from the horrendous hollowing out under the last Government hit Birmingham like a tsunami, so I do not think the Benches opposite have much right to criticise what went on there.

[Lord Jamieson (Con)]

My Lords, I apologise: I failed to declare my interest as a councillor in Central Bedfordshire.

[Lord Snape (Lab)]

My Lords, will my noble friend acknowledge that the seeds of this dispute were sown during the period when the Conservative and Liberal party coalition ran the city of Birmingham? Many of the financial problems facing the city over the years were caused by the Conservative and Liberal Government in power in Westminster. On this dispute, will my noble friend acknowledge that the city council has made a perfectly reasonable offer to the union? Among the solutions put forward by the city were the following: NVQ training for alternative work for those affected by the dispute; voluntary redundancy on enhanced terms for those who decline to accept the new terms; six months’ pay protection for the 17 people directly affected by the council’s proposals; fully funded LGV driving training with a guaranteed role at the end for any staff who wish to take it up; and a one-off payment, as an alternative to redundancy, to buy out contracted entitlements. Does my noble friend agree that these are fair and reasonable terms that the union concerned should accept, and that it should reflect on the damage being done to its fellow citizens as well as to the image of Britain’s second city?

[Baroness Taylor of Stevenage (Lab)]

My noble friend is quite right; Birmingham is a proud city with proud people, and I know that they are embarrassed at what they are seeing. It is time that this is resolved. The vast majority of the workforce of the waste service have agreed a way forward by one route or another, whether that is taking voluntary redundancy, accepting new ways of working or many of the other routes that my noble friend mentioned. This now comes down to a small number of people who have not accepted them. That is where the dispute lies. A city such as Birmingham cannot grind to a halt in such a circumstance. We urge everybody to get back around the table and resolve the issues for this small number of remaining members of the workforce, and then we can restore Birmingham to the rightful place it holds as our second city and the pride of the Midlands.

[Lord Fowler (CB)]

My Lords, I declare an interest as having been a Member of Parliament for a Birmingham constituency—Sutton Coldfield—for 27 years, so I know a little about the area.

I am not sure that I agree with the Minister or my noble friend Lord Snape—he used to be my pair, so I call him my noble friend just to keep in with old things. I am not sure they can simply ride away from this and say that the origins of this and the problem are all down to the last Conservative Government. That argument does not stand up. The real problem we need to tackle is not in going back. We have an instant problem now in Birmingham. As we all know, we have the problem of the streets and the rest. We need most urgently to find a solution to that, not to go into all the details over years and years.

Two points come out of this debate. First, surely the Government have a prime responsibility to preserve public health. That has not happened over the last month. They have failed dismally in that duty, not to this House or the House of Commons but to the citizens of Birmingham. They have let them down, and we are still to find out the final result of that negligence. The Government are now saying, as they should, whether they agree with the action of the pickets in stopping trucks removing the mounds of rubbish that have scarred the city and attracted rats and other vermin —we have not imagined this; it is an actuality—and that kind of action and that kind of defeat cannot be justified to the public. The people stopping the lorries are causing immense damage to individuals.

The people who matter most in this are the citizens of Birmingham, and they have been let down. That is the fact of the matter. The Minister should be turning her mind to how the Government will urgently help to get this straight. It is not a matter of having committees and long discussions. We now need urgency and urgent action. I hope the Minister can tell us of some of that.

[Baroness Taylor of Stevenage (Lab)]

My Lords, I certainly agree that the people of Birmingham are at the heart of this issue. They are first in our thoughts. I agree that urgent action is necessary. That is why I spoke with the leader of Birmingham City Council today to see whether there was anything further we could do to support them. He believes that the way to resolve this is to get around the table as quickly as possible, and that is just what he aims to do.

On the noble Lord’s comments on how the situation arose in the first place, there had been serious financial and governance failings. Birmingham City Council issued a Section 114 notice, which effectively says that the council does not have control of its finances, in September 2023. It did so due to accepting a £760 million liability that arose from those equal pay claims, along with in-year budget deficits that arose from the Oracle IT system. It has been working through a very intense programme of activity to put those issues right. It has not been easy for the leadership of Birmingham City Council; nobody goes into local government to cut services or make things less easy for their residents. It has been doing that with the commissioners, who are working very well with the council and have produced a frank and honest report. There is a copy in the Library if any noble Lord wants to look at it. I agree that preserving public health is vital. That is why the director of public health in Birmingham and the UK Health Security Agency regularly review what is going on there, to make sure that everything is done that can be to ensure that the public health situation does not deteriorate any further.

[Lord Shipley (LD)]

My Lords, the Minister has referred to serious financial failings in Birmingham, and the Statement admits that:

“Practices in the waste service have been the source of one of the largest equal pay crises in modern UK history, resulting in costs of over £1 billion to the residents of Birmingham. This situation simply cannot continue”.


Does the Minister agree that this situation might not have arisen had it not been for the abolition, just over a decade ago, of the Audit Commission, which had a role in delivering best value as well as formal audit responsibilities? Taking Birmingham as an example, might the Government consider whether that decision was wise and whether something needs to be done to improve long-term audit of local authorities in England?

--- Later in debate ---

[Baroness Taylor of Stevenage (Lab)]

I absolutely agree with the premise of the noble Lord’s question. The audit situation right across local government, not just in Birmingham, has deteriorated beyond what should be tenable. The audit function assures the public in an area that their council is what I described: legal, decent and fit for purpose. Unfortunately, due to the changes to the audit regime, that is not the case. I was horrified to find that whole of government accounts have been qualified because of a lack of assurance on the local government audit situation. We cannot allow that to continue. The Government are looking at what we need to do about audit. We will bring forward something in the English devolution Bill that covers the audit regime, and we will attempt to make it better than it is now. It is so important that the public can have confidence in the money spent not just by their Government but by local government as well. We will aim to make sure that that is the case. It has been a bee in my bonnet for a long time, and I hope to put it right.

[Baroness Bennett of Manor Castle (GP)]

My Lords, in responding to Front-Bench questions, the Minister said that councils must “provide essential statutory services”. One of those statutory duties for councils, under the Public Libraries and Museums Act 1964, is to provide a comprehensive and efficient library service. Birmingham Council is planning to slash library opening hours, cutting them by a third and potentially closing seven libraries in a city where 46% of children are living in poverty and 43% of residents live in neighbourhoods that are part of the poorest 10% in the country. People need libraries for children to do their homework, old people to go somewhere warm and for everyone to access digital services. Does the Minister believe that, with these new cuts to libraries, Birmingham is going to meet its statutory responsibilities, given that it is actually under central government supervision?

[Baroness Taylor of Stevenage (Lab)]

The noble Baroness will know of my fondness for libraries, because I am sure she has heard me talk about them before in the Chamber. As I said earlier, nobody stands for election as a councillor to cut any services, particularly libraries, which we know are so important to people.

It is important for residents of Birmingham that their council gets back on a safe and stable financial footing. I add that the potential of Birmingham to contribute to the growth mission and regeneration is enormous. Once the commissioners working with the leadership of the council have stabilised the finances, it will be able to support services. I am very pleased that it has not actually cut all its libraries, as we have seen in some other areas, as the noble Baroness will be very well aware, but the closure of any library is a sadness. Once our Birmingham colleagues have stabilised the finances—and with the growth agenda that they will be able to participate in—I am sure that they will want to restore that service as soon as they can.

We should not underestimate the importance of libraries. I practically grew up in my mobile library; it was a great comfort to me. They are important for all the reasons that the noble Baroness said. I hope that Birmingham will be able to restore them as quickly as possible.

[Lord Scriven (LD)]

My Lords, the Minister quite rightly talks about the second report of the commissioners, which was published yesterday. There is a very telling paragraph that the House needs to be aware of, and I would like to hear the Minister’s response to it. It says that

“the Council, currently, still lacks the ability and self-awareness to deliver timely, sustainable reform at the pace required without substantial support and direction”.

In the light of that, the Minister’s response of “leave the commissioners alone” does not stand up. The commissioners are saying that further substantial reform is required. What substantial reform and extra support are the Government now thinking of? What is the timescale for that, in the light of the commissioners saying that it is required?

[Baroness Taylor of Stevenage (Lab)]

I thank the noble Lord for his question. I think the commissioners are referring to the fact that each time a report is due, the Government can consider whether it is time to take the commissioners’ support out. The commissioners were trying to indicate that they do not feel that the council is ready for their support to be withdrawn at this stage.

The report highlights the progress made by the council so far. It notes the leadership of Councillor Cotton and Joanne Roney, and the hard work of many diligent members of staff in the council. In the circumstance we find ourselves in with Birmingham, that can often be overlooked. Many of the staff there are working tirelessly to make sure that the council delivers for its residents.

The report also sets out that the journey to recovery and financial stability is far from over, as the noble Lord says, and has been heavily dependent on the input, guidance and advice of the commissioner team so far. The indication in the line that the noble Lord quoted is that the council continues to need that commissioner support. We agree with that as a Government, and we will continue to support the leader and his team in Birmingham directly and through the commissioners to move the council on from the historical issues with a fair resolution. The way to do this is to continue on the journey that the council is on and make sure that they all stabilise the council so that it will be able to deliver for its residents long into the future.

[Lord Sahota (Lab)]

My Lords, I declare that I am a member of Unite the Union. I urge my fellow brothers and sisters to keep on talking.

Under the previous Government, many councils of all colours went bankrupt, including Birmingham Council. The root cause of all this was the historical underfunding by the previous Government, as the noble Lord has pointed out, for the past 14 years. Is the historical underfunding of Birmingham Council still the problem there?

[Baroness Taylor of Stevenage (Lab)]

I thank my noble friend for his question. Like many noble Lords in this House, he has direct experience of leading a council, so he has felt the pain of funding cuts, as have all of us who have been in that position. We have made some changes to the local government funding formula this year to make sure that funding goes where it is needed most, instead of following a historical pattern of allocations. We will make further changes to that. As noble Lords will be aware, we are going into the spending review process now, which is why we could issue only one-year settlements, but we will provide multiyear funding settlements, which will make a difference to the stability for local government funding and make sure that the greater quantum of funding goes to the areas where it is most needed, of which Birmingham is certainly one.

[Lord Lucas (Con)]

My Lords, I am very pleased to hear what the Minister said about restoring audit, because the best value commissioners’ report is an astonishing catalogue of failures in governance and culture—deep rooted, long term and all pervasive. What systems does the Minister envisage to allow the new unitaries that the Government are creating to start out with strong cultures and governance, rather than fall into the despairing place that Birmingham finds itself?

[Baroness Taylor of Stevenage (Lab)]

I described my commitment to audit in an answer to an earlier question. Audit is part of that, and so is the collaboration that local government is now pulling together to drive the route towards these new unitary authorities, which will serve them well as they go through the process. We absolutely have to make sure that audit function is in place and sound, because that is the public’s reassurance that their council is not only financially stable but making good use of public money. That is why it should be considered as part of the English devolution Bill.

[Lord Spellar (Lab)]

My Lords, I take my noble friend back to the comments of my noble friend Lord Snape—who, like me, represented the Borough of Sandwell—and the root cause of this problem: the failure of the Conservative/Lib Dem alliance running Birmingham City Council to deal with the equal pay issue. Sandwell Council borrowed the money from central government, paid it back within seven years and resolved the problem. That is the fundamental root, and my noble friend may wish to remind the Opposition Benches of that. With regard to picketing at the depots, has she had the opportunity to remind the chief constable of the West Midlands of the code of practice under the trade union and labour relations Act for the conduct of picketing, and is she satisfied that West Midlands Police are enforcing the law?

[Baroness Taylor of Stevenage (Lab)]

I am grateful to my noble friend for that reminder that there is not a one-party state in Birmingham; other councils have been involved in failing to tackle the equal pay issue over many years. He is quite right to say that for most councils this was a very thorny issue. It came with a great deal of negotiation needed, and quite often with a huge price tag attached. So I do not underestimate the difficulty in dealing with it, but many other councils bit the bullet and got on with it. That was not tackled in Birmingham.

I have not had any conversations with the chief constable of West Midlands Police, but I am sure that the declaration of the major incident will make sure that all agencies in Birmingham are brought in to help support the council and the commissioners and to help to restore what we all want to see: the people of Birmingham being able to get their pride in their city back, and the commissioners and the leadership of the council being able to continue to move Birmingham forward to be the city we all know it can be for the future, right at the heart of the Midlands, delivering growth for the country and being the kind of wonderful place that it is for the people of Birmingham to continue to live in.

Town and Country Planning (Fees and Consequential Amendments) Regulations 2025

Baroness Taylor of Stevenage Excerpts

Monday 31st March 2025 Lords Chamber

Moved by

[Baroness Taylor of Stevenage]

That the draft Regulations laid before the House on 13 February be approved. Considered in Grand Committee on 25 March.

Motion agreed.

Town and Country Planning (Fees and Consequential Amendments) Regulations 2025

Baroness Taylor of Stevenage Excerpts

Tuesday 25th March 2025 Grand Committee

Moved by

[Baroness Taylor of Stevenage]

That the Grand Committee do consider the Town and Country Planning (Fees and Consequential Amendments) Regulations 2025.

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

My Lords, these draft regulations were laid before the House on 13 February. They make consequential amendments to the Town and Country Planning Act 1990 and other primary legislation, as well as to the planning application fee regulations. These amendments reflect the two new routes for planning permission for Crown development that were introduced through the Levelling-up and Regeneration Act 2023. This legislation forms part of a wider suite of statutory instruments needed to implement these new routes. These routes are crucial to ensure that there is a more timely and proportionate planning process for nationally important public services and infrastructure.

I will start by providing some context and background to these regulations. Recent experience, including the response to Covid-19, has exposed that the existing route for securing planning permission for urgent Crown development, which was introduced in 2006, is not fit for purpose—so much so that it has never been used. Furthermore, government departments have struggled to secure local planning permission for nationally important public service infrastructure, such as prisons. The Levelling-up and Regeneration Act made provision to address these challenges by providing two new routes for planning permission for Crown development in England.

The first route, referred to as Crown development, is for planning applications for Crown developments that are considered of national importance. These applications are to be submitted to the Planning Inspectorate directly instead of to local planning authorities. A planning inspector will consider and determine the application, unless the Secretary of State for Housing, Communities and Local Government recovers the application to determine herself.

The second route is an updated urgent Crown development route. This will enable applications for nationally important developments that are needed urgently to be determined rapidly under a simplified procedure. Applications under the urgent route will be submitted to the Secretary of State for Housing, Communities and Local Government.

These new routes can be used for developments only where it is clearly justified. Provisions in the Levelling-up and Regeneration Act require that applications can be accepted by the Secretary of State only if she deems that the proposed development is of national importance and that it is urgent, in the case of the urgent Crown development route. I made a Written Ministerial Statement on 13 February which set out the principles under which national importance and urgency will be determined. Applicants are required when submitting an application to set out the reasons why they consider that the development is of national importance and, in the case of urgent Crown development, is needed as a matter of urgency.

I turn to the detail of the regulations. This is the first of a suite of statutory instruments needed to implement the Crown reforms. It makes amendments to primary legislation to reflect the two new Crown development routes. For instance, it amends references to planning permission set out in a range of different pieces of legislation. It also removes references to the previous urgent Crown development route in Section 293A of the Town and Country Planning Act, which now applies only in Wales. This instrument also sets the fee for an application for planning permission under both routes. This is the same as the fee that would have been paid to the local authority if the application had been submitted to it.

Following this statutory instrument coming into force, a further suite of statutory instruments will be made through the negative parliamentary procedure. These instruments will set the procedures for the two routes and make further consequential changes to secondary legislation in order to reflect the implementation of these routes. We have published these instruments in draft ahead of this debate to provide proper transparency on how the routes will operate.

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I recognise that we need to do something on this. We do not oppose this SI. We welcome the fact that we will be speeding through the process. Finally, can that review really be something that we see each year, not a token bit of paper? Can the Minister give us an assurance that she will happily answer questions on that, should we feel that to be necessary?

[Baroness Taylor of Stevenage (Lab)]

My Lords, this has been a helpful debate. As ever, our great experts on planning in the House contributed to a good discussion. I will, of course, attempt to answer all the questions. I am sure that noble Lords will pull me up if I do not if I do not answer them. I will, of course, check in Hansard afterwards and reply in writing on anything to which I have not responded to fully.

The noble Lords, Lord Young and Lord Shipley, asked who is able to apply for planning permission through these routes. Section 293 of the Town and Country Planning Act defines who is an applicant known as an appropriate authority for the purpose of applications under these routes. For example, this includes where land belongs to a government department or is held in trust for His Majesty for the purposes of a government department. That department is considered to be an appropriate authority. For land belonging to His Majesty in right of the Duchy of Lancaster, the Chancellor of the duchy is the appropriate authority and for land belonging to the Duchy of Cornwall, a person that the Duke of Cornwall appoints is the appropriate authority. So land that goes into any of those routes will be appropriate for this route.

The uses for Crown development and confirmation of which developments Crown development can be used for was the subject of the question asked by the noble Lord, Lord Young. I am sure that he will ask again if I have got that wrong. It will be for the Secretary of State to assess on a case-by-case basis what is deemed nationally important, and it would not be appropriate to comment now on specific schemes. However, it is likely that the Crown development route will be used most for HMG programmes relating to nationally important public service development. For example, this would include, but not be limited to, new prisons or border infrastructure. Traditionally, those things are difficult in the planning process. The route could also be used for defence-related development, as PINS is able to put in place special procedures to handle information dealing with matters of national security. Special provisions exist whereby the Secretary of State can issue a direction limiting the disclosure of information relating to matters of the security of a premises through Section 321 of the Town and Country Planning Act 1990. The Crown development route can also be used for particularly sensitive or significant development being brought forward by, or on behalf of, the Crown. We expect few applications to be submitted through this route every year. It is not going to be used all the time; it would be an exception.

In terms of urgent Crown development, again, it will be for the Secretary of State to assess on a case-by-case basis what is deemed nationally important and needed urgently. When I looked at the papers for this SI, the first thing that came to my mind was the time when, during Covid, we were getting desperately short of mortuary space. This is a bit of a morbid subject but, in the middle of a pandemic, it is vital that you think about that and you may want to have an urgent process to deal with that sort of thing.

It would not be appropriate for me to comment on specific schemes, but the urgent Crown development route is expected to be used very rarely, where other planning application routes just cannot be used to secure a decision quickly enough. The pandemic might have been one of those instances. It will be used only where development needs to be put in place quickly, in a matter of days or weeks, and where it is in the national interest—for things such as medical centres, the storage and distribution of key goods and services in the event of a pandemic or, potentially, mortuary space.

The noble Lord, Lord Shipley, asked who makes the decisions—he was correct in his assumption on that; I hope that that is helpful—and whether the public will be able to object. I will come to those issues in a moment.

The noble Lord asked about how national importance is defined. The Government are committed to a planning system in which decisions are made locally. However, it is a well-established principle that, in limited circumstances, it is necessary for the Secretary of State to make planning decisions where issues of more than local importance are involved. In general, the Secretary of State will consider a development to be of regional or national importance only if it would: involve the interests of national security or foreign Governments; contribute to the provision of national public services or infrastructure, such as prisons or border infrastructure; support a response to international, national or regional civil emergencies; or otherwise have significant economic, social or environmental effects and strong public interest. The applicant will have to set out, as part of a statement accompanying the application, evidence demonstrating that at least one of those principles has been met.

The noble Lord, Lord Shipley, asked how “urgency” is defined. The applicant will be required to provide a statement to accompany the application setting out why they consider that the development is both nationally important and needed as a matter of urgency. The Secretary of State will accept applications through the urgent development route only where the applicant can demonstrate that the proposed development is both of national importance and needed urgently. The applicant will need to demonstrate that the proposed development needs to be made operational in an accelerated timeframe and that it is unlikely to be feasible using other application routes, including the Crown development route, and will need to evidence the likely consequences of not securing a decision within the accelerated timeframe. I hope that that is helpful.

The noble Baroness, Lady Thornhill, asked me about mayoral powers and strategic planning. I share her pain, as any local councillor will, over the planning process. I will never get back the hours that I have spent in discussion about great crested newts and rare species of bats and insects, so I feel her pain on that. However, these reforms are for national and very urgent issues only.

On mayoral or strategic powers, the Crown reforms will affect the ability of combined or mayoral authorities to call in applications of potential strategic importance. The relevant combined authority will instead be consulted for development coming forward through the Crown development route, so it will be done at that strategic level.

In response to all noble Lords’ questions about how further information on this will be provided, we will publish updated planning practice guidance to reflect the new routes coming into force. We intend to publish the amended guidance closer to the implementation of the routes.

The noble Baroness, Lady Thornhill, asked about transparency. As I said, applicants need to demonstrate that the application is of national and urgent importance, and the Secretary of State can accept that application only if she considers that that is the case.

When a decision is made to accept an application, as I set out in my opening speech, a letter will be written to the MP whose constituency the development falls in and will be deposited in the Libraries of both Houses. Application documents will be available and applications to both routes will be determined on planning merits, with the reasons behind whether to grant or refuse set out in the inspector’s report or the Secretary of State’s decision letter. I hope that that is helpful.

In my opening speech, I set out in some detail how community engagement will work; the noble Lords, Lord Shipley and Lord Jamieson, raised it again. Of course, community engagement is very important. Any comments made during the consultation and publicity period that raise material planning matters will be taken into account as part of the decision-making process. The local planning authority will also have a role to play. It will need to place the application and documents on its planning register and, as PINS does not have a local presence, the local planning authority will be required to affix site notices during the mandatory publicity period and notify owners or occupiers who adjoin the site. So, for that purpose, it will work just the same as the local planning process.

Regarding urgent Crown development community engagement, as I said, we would encourage consultation with local communities, where possible. If it is possible to do meaningful engagement in a timeframe, we would encourage that. Where it is not possible, the Secretary of State should use alternative methods to make sure that community views can be taken into account.

The noble Lord, Lord Jamieson, talked about fixing the planning system; we hope we will be able to do that. Working very quickly, we have already managed a major consultation on the NPPF and published a revised version in December. Yesterday, the other House had a long debate on the Planning and Infrastructure Bill, which will come to this House shortly. My belief is that there will always be a need for an urgency procedure for decision-making in councils. There will always be a need for some kind of urgent process and for the Secretary of State to be able to make a decision on national grounds. I hope that that has answered all noble Lords’ questions.

[Lord Young of Cookham (Con)]

The Minister has been enormously helpful in answering the questions, but she did not touch on the question of whether a decision to use this route would be justiciable. She may not be able to answer that, but I assume that it would be.

The Minister mentioned the case of Covid and the mortuaries. As I understand it, this system can be used only where the Crown owns the land, so if it does not own the land, it will have to buy it before it can use this SI. If something is urgent but the Crown does not own the land on which the building is needed, I wonder whether the CPO will hold things up, or whether that can be part of a streamlined process.

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[Baroness Taylor of Stevenage (Lab)]

I was assuming that it would be an application made on land already owned, but I will write to the noble Lord and set that out in further detail.

On his other point, my understanding is that all things are, technically, judicially reviewable, but I will find out the detail of that and set it out. Obviously, if we are going to put an urgent and national process in place, we want it to be able to speed through as quickly as possible, but, in the planning world, it would be most unusual for there to be no process of review should that be needed. I will get our planning team to check that for the noble Lord, and I will write to him with the exact details.

[Lord Jamieson (Con)]

I have a question; it is not dissimilar to the one from my noble friend Lord Young. As I understand it, from what the Minister has laid out, it will in essence be up to the Minister or Secretary of State to determine whether this is urgent, nationally significant and so on. My real question is: what constraints will there be on him or her in determining that? Where is the opportunity to challenge, review or assess? I know that the Minister is going to come back on the issue of judicial review. Clearly, we do not want to have an urgent process be bogged down by it for two or three years; however, we would want some constraint on it. So what process is in place to ensure that the Minister is not in a position to determine all of this by himself or herself?

[Baroness Taylor of Stevenage (Lab)]

I am grateful to the noble Lord for reiterating those points. I set out that there is a set of criteria deeming whether an application is of national importance. The applicant will need to say which of those criteria they are using to say that it is of national importance. The same applies to the urgent procedure: the applicant will need to demonstrate one of those criteria for it being urgent, and the Secretary of State will decide whether or not that is the case. Out of the criteria I set out, the applicant will need to demonstrate that at least one applies. That is how it is going to work. I will have to come back to noble Lords on whether it will be reviewable.

In conclusion, the two new routes for planning permission that we are seeking to implement are necessary and timely; all noble Lords agree with that, I think. These regulations represent a crucial step to their delivery. I hope that the Committee will welcome the regulations, which address this critical requirement for a proportionate planning procedure for nationally important Crown developments.

Motion agreed.

High-rise Buildings: Safety Remediation

Baroness Taylor of Stevenage Excerpts

Monday 24th March 2025 Lords Chamber

[Lord Young of Cookham]

To ask His Majesty’s Government what progress has been made on the remediation of high-rise buildings with safety defects.

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

My Lords, before I answer the noble Lord’s question, I pay tribute to all the campaigners and survivors of Grenfell who have moved this along, following seven years when little progress was made. Now, over half of 18 metre-plus buildings identified with unsafe cladding have started or completed remediation. On 2 December last year the Deputy Prime Minister announced the remediation acceleration plan, which sets out key measures to get buildings with unsafe cladding fixed faster, identify remaining buildings still at risk and ensure that residents are supported through the remediation process. This Government have been clear about our intention to deliver remediation faster, with more action from freeholders and developers.

[Lord Young of Cookham (Con)]

My Lords, I am grateful for that Answer. Since this Question was tabled, the Public Accounts Committee in another place has published a further progress report on remediation that is highly critical of this Government and indeed the last one. It points out that, of the 5,000 buildings known to the Minister’s department to require treatment, work has started on half, and that 3 million people are living in unsafe buildings, are unable to sell their flats and face exorbitant insurance claims. It also points out that the contract with developers did not require them to remedy all the safety defects. In the meantime, not a penny has been paid by the manufacturers of unsafe cladding. The PAC says that the date of 2029, by which all treatment should have been completed, is unrealistic. Surely we can do better than this.

[Baroness Taylor of Stevenage (Lab)]

The noble Lord is right to say that we can do better, which is why we have introduced the remediation acceleration plan. The plan’s targets provide greater certainty to residents, a significant acceleration in pace and much greater certainty about when cladding remediation will be resolved. We have never had targets like these before. This Government have put in place a plan to deliver; it is now up to those responsible for making their buildings safe to do so. The plan has been criticised by campaigners for not being ambitious enough and by industry for being too ambitious and unachievable. All plans like this must strike a balance; we believe this plan gets the right balance and is ambitious but also achievable.

[Baroness Warwick of Undercliffe (Lab)]

My Lords, the National Audit Office also found that, in the social housing sector, remediating cladding safety defects will cost £3.8 billion. The National Housing Federation says that housing associations could build 91,000 more affordable homes if the social housing sector had equal access to government funding to pay for building safety works. Substantial funding is being diverted away from investing in new affordable homes to pay building safety costs, so could I ask the Minister whether the Government have a plan to ensure that the social housing sector can deliver the 1.5 million new affordable homes target by making it eligible for the Government’s building safety funding?

[Baroness Taylor of Stevenage (Lab)]

My noble friend is right to point to the strains on social housing between remediation of all kinds of maintenance defects, including fire safety, and building new affordable housing. From April, we will increase targeted support for social landlords applying for government remediation funding. That will help them meet the costs of planning and preparing for remediation works, and to start remedial work sooner. Social landlords can apply for government remediation funding equivalent to the amount that would otherwise have been passed on to leaseholders, or for the full cost of the works where remediation would render a social landlord financially unviable. We have committed £568 million to support the remediation of social housing through government schemes.

[Lord Carter of Haslemere (CB)]

My Lords, the Public Accounts Committee points out that developers, social housing providers, landlords and owners—everyone, it seems, except the culpable manufacturers of this cladding—are being made to contribute to the costs of remediation. What is being done to ensure that the culpable manufacturers of this cladding will be made to contribute?

--- Later in debate ---

[Baroness Taylor of Stevenage (Lab)]

I agree with the noble Lord that it is very important that the enforcement we set out is carried out. We have already committed £14 million to local authorities to build the capacity and capability to take that enforcement action, and the Deputy Prime Minister has announced increased funding to double that enforcement activity. In addition to enhancing the national joint inspection team, we will ensure local authorities continue to have access to expertise they can call on around their most complex and high-risk buildings. But it is vital that those who are responsible for this are both brought to account and contribute to the remediation work that needs doing.

[Baroness Scott of Bybrook (Con)]

My Lords, the Government have identified that barriers to development-led remediation include disputes between developers and freeholders over access to buildings, delays in securing the necessary regulatory approvals and access to independent assessors to carry out the quality of assessments. Will the Minister set out what the Government are doing to overcome these barriers to vital progress?

[Baroness Taylor of Stevenage (Lab)]

The remediation action plan points to the action that we need to take to move this on more quickly. Developers have determined whether work is required on about 80% of buildings for which they have taken responsibility under the remediation contract. Both developers and the Government are committed to accelerating that progress, which is why we have the plan that we published on 2 December as a joint plan. Thirty-nine developers have signed up to that and we will be moving that forward. If they fail to hit those joint plan targets, further action will be taken.

[Baroness Pinnock (LD)]

My Lords, the Government have introduced a new and lower standard of remediation, PAS 9980. Insurers, however, are not convinced that this makes buildings fully safe. The Public Accounts Committee has brought it to our attention that insurance costs remain, in its word, “unaffordable”. What are the Government going to do to address the criticism of the Public Accounts Committee and ensure that insurance costs drop considerably, so that people can afford to remain in their homes?

[Baroness Taylor of Stevenage (Lab)]

The noble Baroness is quite right to raise the issue of insurance premiums. Work has been going on to reduce those premiums for leaseholders. We have seen improvements for leaseholders who previously found themselves unable to sell or remortgage their homes, but we remain vigilant and will continue to hold the 10 major lenders to account, following their commitment to lend on properties even if the remediation is not yet complete.

[Lord Wigley (PC)]

My Lords, I draw the attention of the House to a family interest in a high-rise flat. Does the Minister accept that it is a matter not just of getting an agreement to starting dates on these schemes of remediation but of completion dates? Many schemes seem to be dragging on and on, and there will not be satisfaction in terms of safety reassurance or saleability until there is a much more stringent approach to the completion date of this necessary work.

--- Later in debate ---

[Baroness Taylor of Stevenage (Lab)]

The noble Lord is quite right: we need to move this on as quickly as we can. It has dragged on for far too long already. As of March 2025, we have 39 developers signed up to the joint acceleration plan. These developers account for more than 95% of the buildings to be remediated by developers under the developer mediation contract. They have committed for the first time to assess all their buildings by July 2025 and to start or complete all remedial work by July 2027—but I take the noble Lord’s point that completing the work is the vital thing for those living in them. We will be monitoring this very carefully and chasing up the completion of those works as time goes on.

[Lord Katz (Lab)]

My Lords, we will not complete the remediation work that we are discussing under this Question, nor achieve the Government’s ambitious but very welcome target of 1.5 million new homes being built, without the necessary skilled workforce. We know from the Office for National Statistics that there are 35,000 job vacancies in the construction sector, over half of which cannot be filled due to a lack of skills—the highest for any sector. Does my noble friend agree that it was a very welcome announcement from the Treasury last week that the Government plan to inject £600 million into training up 60,000 more construction workers by 2029? Will she further tell the House how we can encourage the construction sector itself to invest in more brickies, chippies and sparkies who can build the safe homes that we all need?

[Baroness Taylor of Stevenage (Lab)]

I totally agree with my noble friend. I was very pleased to hear yesterday that in the Spring Statement there will be an announcement of £600 million investment into the construction and skills sector, delivering around 60,000 workers over the course of the Parliament. We need to address the leaky pipeline and to expand course provision to make sure there is enough funding for training routes and apprenticeships, skills boot camps and other further education courses. Then we need to ensure the system has the required capacity. To deliver those courses, we need to address the 10% vacancy rate for construction teachers and be imaginative in how we do that. We need to take every action we can to get the right people with the right skills in the right places. It is one of the most important pieces of the puzzle that we must get right.

Local Authorities (Changes to Years of Ordinary Elections) (England) Order 2025

Baroness Taylor of Stevenage Excerpts

Monday 24th March 2025 Lords Chamber

[Lord Jamieson (Con)]

My Lords, I declare my interest as a councillor in Central Bedfordshire who is not participating in this process. I speak in support of the regret Motion tabled by my noble friend Lady Scott of Bybrook. As chairman of the Local Government Association, I campaigned vigorously for greater devolution, and I am still very supportive of devolution. I also led a unitary council for 10 years and can testify to the benefits of unitary councils. However, if we are genuinely to have devolution and well-run services, it needs to be locally led, with real powers and local accountability. We cannot treat local government as little more than a delivery arm of central government, tied up in regulation, with budget controls and with central targets and funding pots.

When this country saw the biggest improvement in health, education, social support, infrastructure and so forth, it was all locally led. If you go back to the turn of the 20th century, local government was truly empowered, delivering education, health, social care, social support, infrastructure and even gas and water supplies. It was genuinely financially independent of central government. Over the last century, central government has steadily eroded the role of local government, placed more controls and reduced its financial freedoms while increasing burdens on local councils.

I am a believer that form should follow function. We should see real devolution which would enable genuine financial independence from central government, with a much greater role in economic development, community health, education and skills for getting people back to work; this would enable every area to flourish with real levelling up. This is what the Government should have started with, because locally we could have then answered the question of what would be appropriate structures to deliver this. It would also significantly reduce local argument as the prize and objective would have been clear to all.

Instead, we have top-down reorganisation. The Government have been clear that they intend to use their large majority in the other place to force through unitarisation and have mayors across the country. There is a clear message that funding will be tight, so councils will have to make significant savings, which the Government expect to be delivered by unitarisation. It is understandable that, in these circumstances, many councils have concluded that it is better to participate in order to have some control over their destiny and potentially some meagre rewards, rather than be done to by government diktat.

So I have sympathy with those councils that, due to the need to meet a government-imposed timetable, asked for a delay in their elections. But it did not need to be this way. The Government could and should have worked with local government. They should have brought forward real proposals for real devolution with a clear timetable that respected the democratic process. They should have brought forward proposals to address some of the biggest issues in local government, such as social care and SEND. They should have looked at how, by addressing the perverse incentives, the blockages in the system and creating genuine local place-based working, these could have been addressed.

You cannot look at local government reorganisation without looking at, for instance, the healthcare system and how that works. But, no, this Government are favouring imposition over co-operation, avoiding the difficult decisions and not delivering real devolution. That is why I will be supporting by noble friend Lady Scott’s Motion to Regret.

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

My Lords, that has been a really interesting debate. I understand and I have listened to the concerns around the Chamber. The Government have been very clear on our manifesto commitment to widen devolution to more areas. We have been clear on our vision for a simpler, more sustainable local government structure, alongside transfer of power and funding out of Westminster through a devolution process. We have been clear on our willingness to take all the appropriate steps needed to deliver this vision, working with councils to fix the foundations of local government and support communities to join the devolution revolution.

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[Lord Fuller (Con)]

Does the noble Baroness accept that, under Section 7 of the Local Government and Public Involvement in Health Act—which governs local government reorganisation—it is a statutory requirement that all principal authorities are engaged with? By that I mean not just the county councils but all the districts, upper tier unitaries and so forth—not the parishes but the principal authorities. Does the noble Baroness further accept that only 30 or so of the 200 or so councils that should have been consulted were actually consulted?

[Baroness Taylor of Stevenage (Lab)]

I will answer the noble Lord’s point further in a moment. Following a question he asked me earlier, I checked the legal requirements, and my understanding is that all the legal requirements have been met in this process.

The noble Baronesses, Lady Pinnock, Lady Jones and Lady Fox, raised the issue of democratic accountability and elections. To clear up a point, there are no elections postponed in Devon. I do not know whether that was raised with the noble Baronesses, but elections are not postponed in Devon. Nothing is being imposed on local areas. The commitment to join the devolution priority programme and the emerging proposals for new unitary councils were all bottom-up. All requests for election delays to unlock reorganisation and devolution to the fastest possible timeline followed direct requests from the leaders of affected upper-tier councils—not the Secretary of State, as was stated by the noble Baroness, Lady Jones.

Devolution and strong councils with the right powers mean that hard-working councillors and mayors can focus on delivering for their residents. That will strengthen the democratic accountability of local government to local residents. Postponing this small number of elections will enable mayoral devolution to be delivered in parallel with reduced timescales, so that working people and communities get those benefits—the powers, funding and freedoms—far more quickly, with mayoral elections and elections to new councils increasing democratic accountability, not reducing it.

We do not agree that there is a lack of consultation. We are consulting now in eight of these council areas on mayoral devolution, and we have asked councils to engage widely as they develop their proposals for reorganisation. Once a proposal has been submitted, it will be for the Government to decide on taking a proposal forward and then to consult, as required by statute. Some 13,000 people have responded to those consultations already, so people are engaging with the process.

A number of noble Lords mentioned the timetable. I think there has been some misunderstanding, so I will cover this. The noble Baroness, Lady Jones, asked for clarity on the timetable, and I understand why she would want that, as did the noble Baronesses, Lady Pinnock, Lady Scott and Lady Fox, and the noble Lords, Lord Stoneham and Lord Fuller. The starting point is for all elections to go ahead, unless there is strong justification. In May 2026, we intend that mayoral elections for new strategic authorities will take place, alongside those district and unitary elections already scheduled and elections postponed from May 2025. For any area in which elections are postponed, we will work with areas to move to elections to new shadow unitary councils as soon as possible, as is the usual arrangement in the process of local government reorganisation. For areas in the priority programme, this will mean mayoral elections in May 2026, alongside and in addition to the rescheduled local elections. We will work with areas to move to new shadow unitary elections as quickly as possible.

Postponement is essential for the delivery of the devolution priority programme, with inaugural mayoral elections in May 2026 and complementary reorganisation. We have no plans to postpone district council elections in 2026; we intend these to take place as scheduled, alongside elections postponed in 2025. The date of any unitary council elections will depend on the nature of proposals for local government reorganisation and progress on the development of those proposals. They are moving on different timetables.

On the issue of strategic planning, raised by the noble Baronesses, Lady Jones and Lady Pinnock, local plans will still be the responsibility of local authorities. Strategic planning at mayoral level will inform that planning, not replace it. It is done at mayoral rather than national level, so this is increasing devolution, not reducing it.

The noble Baroness, Lady Jones, made a point about saving money. We have had a PwC report, which set out the opportunity for areas undertaking reorganisation to achieve efficiencies when moving to a single unitary structure. In fact, North Yorkshire Council, established in 2023, expects to achieve more than £40 million in savings by March 2026. There is precedent for significant savings.

The noble Baroness, Lady Pinnock, mentioned Surrey. This single-year postponement is intended to give local leaders the time and capacity to plan for new structures, with local leadership in place until after the full reorganisation proposals have been submitted. We agreed to delay elections in Surrey to expedite local government reorganisation because of the perilous financial state of some of the authorities in that locality. The Government are getting on with delivering this.

All two-tier areas have been invited to develop proposals for reorganisation. I am delighted to confirm that every single area, comprising councils of all political stripes, has responded to the invitation to reorganise and submit an interim plan by 21 March. A Written Ministerial Statement has been laid before the House today, setting out the details.

The noble Baroness, Lady Pinnock, asked about the Secondary Legislation Scrutiny Committee. I think the noble Lord, Lord Khan, probably replied better than I could on this. In response to her question about the date, we do not have powers to delay a date; we can delay only the year, not the date. It would require primary legislation to postpone until June.

The noble Lords, Lord Rennard and Lord Fuller, raised the issue of precedence in postponing elections. Between 2019 and 2022, the Conservative Government legislated to postpone 17 local council elections for one year and cancelled a further 13 elections as part of legislation giving effect to unitarisation proposals, with the latter having the effect that the elections did not take place, as the councils were abolished. All local elections scheduled to take place in 2020 were subsequently postponed, of course, because of Covid. I could go into further detail, but I will not take up noble Lords’ time.

The noble Baroness, Lady Scott, raised the issue of boundary review. I am very happy to write to her further on the timetable. On the process for local government boundary review, I know, because we have just gone through it in Stevenage, what a thorough process that is. There is no intention to curtail the process of extensive consultation as we go through this process.

My noble friend Lord Bach referred to the process of devolution and the need for a modern and efficient local government system, and I agree with him 100%. We have had three decades of delay in moving this forward, so to noble Lords who said this is rushed and hurried, can I just say that it does not feel that way to me? I have been in local government for 30 years, and we have been trying to do it for all that time. In relation to the English cities, for councils which have not already been part of a reorganisation process, if those areas feel it is appropriate, they will have submitted those changes in their plans or they will be working them for the second stage of planning.

--- Later in debate ---

[Baroness Scott of Bybrook (Con)]

Before the Minister sits down, on the question of the manifesto and devolution, I do not think it was very clear to communities or individuals that “devolution” also meant local government reorganisation.

[Baroness Taylor of Stevenage (Lab)]

I hear the noble Baroness’s view, but the councils that have come forward feel that they need that reorganisation to enter properly into the devolution process. If we are going to get powers and funding out of this bit of Westminster and out to the areas, that elected representation at local level is key.

The Motions put forward by the noble Baronesses would be an unprecedented step by the House of Lords, with serious constitutional and practical consequences. The Motions undermine the convention of the primacy of the Commons and the principle of delegated powers, which have been given in primary legislation granted here and have been previously used in this way. All appropriate steps were taken, and both process and precedent carefully followed.

A vote to agree with these Motions for Annulment at this stage, the evening before the last day by which elections must be called, would throw areas into chaos, damaging the safe running of those elections and confusing the live consultations that are under way, in which we are receiving significant public interest, with, as I said, over 13,000 responses already. The people engaged believe, as we do, that the order is in the interests of the people we all serve. The Motions would slow down the delivery of the benefits of mayoral devolution and strong unitary local government to those areas. It is these Motions, not the order they object to, that are damaging to local democracy. I urge you in the strongest terms to deny them.

[Baroness Jones of Moulsecoomb (GP)]

My Lords, I forgot to mention that I am also a vice-president of the Local Government Association.

I thank all noble Lords who have spoken in this debate. A lot of issues were raised and the Minister has given a very full answer, which I am sure I will read with great interest in Hansard tomorrow. Clearly, she and the Government will be held to account on that.

It seems a little mean to accuse us of bringing this so late to your Lordships’ House when actually it is the Government’s timetable that we are operating to. We had no choice. The fact that it is 7 pm on the night before is not our choice; it is the Government’s choice to do it, so the Government have made it too late to do this.

There is also the fact that Labour has completely changed the meaning of devolution. What is happening is not devolution; it is actually sucking power upwards. My Motion is not about devolution but about the way it is being done. I think that is deeply undemocratic, despite what the noble Lord, Lord Kerr, had to say about it. I am quite disappointed that the Conservatives, His Majesty’s Opposition, could not vote for a fatal Motion. I did use their wording in my fatal Motion to encourage them, but clearly that did not work. If the Government are wrong—on this side of the Chamber we all agree that they are wrong—surely we want to draw that mistake to their attention. They are making a terrible mistake, and if we are not going to draw their attention to something like this now, when are we going to do it?

I also regret that the Liberal Democrats did not reach out before tabling their Motion. That is a real shame. I am not known for my powers of compromise, but I am, I think—I hope—known for my principles, and I would have done my best to come to some agreement. The Liberal Democrats did not attempt that, so to me what they are doing now looks like game playing, not a principled move. Surely a fatal Motion is a fatal Motion, and whether you vote for mine or for theirs, it does the same thing: it draws attention to the fact that many of us are not happy about what is happening. We care about local democracy, not game playing.

Affected councillors and residents do not have a vote here, but we do, and there are times when we really ought to use that vote for the common good. I feel that is not happening this evening. I hate to waste the time of your Lordships’ House, despite the fact that it is only 7 pm—it is not even my bedtime yet, and I go to bed very early.

Non-Domestic Rating (Levy and Safety Net) (Amendment) Regulations 2025

Baroness Taylor of Stevenage Excerpts

Wednesday 5th March 2025 Lords Chamber

Moved by

[Baroness Taylor of Stevenage]

That the draft Regulations laid before the House on 6 February be approved.

Considered in Grand Committee on 3 March.

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

My Lords, with the leave of the House and on behalf of my noble friend Lord Khan, I beg to move the Motion standing in his name on the Order Paper.

Motion agreed.

Town and Country Planning (Fees for Applications, Deemed Applications, Requests and Site Visits) (England) (Amendment and Transitional Provision) Regulations 2025

Baroness Taylor of Stevenage Excerpts

Wednesday 5th March 2025 Lords Chamber

Moved by

[Baroness Taylor of Stevenage]

That the draft Regulations laid before the House on 13 January be approved.

Relevant document: 15th Report from the Secondary Legislation Scrutiny Committee. Considered in Grand Committee on 3 March.

Motion agreed.