Green Spaces

Baroness Taylor of Stevenage Excerpts

Thursday 1st February 2024 Lords Chamber

[Baroness Penn (Con)]

My Lords, I will need to write to the right reverend Prelate on the specific details that she asked for. But I reassure her that making our green spaces more accessible is a key focus of government funding and programmes. For example, the Access for All programme and the woodland access implementation plan look at how we can make our green spaces, urban and rural, more accessible to all sorts of people. The Access for All programme, for example, is £14.5 million worth of accessibility improvements in our protected landscapes, national trails, forests and wider countryside.

[Baroness Taylor of Stevenage (Lab)]

My Lords, the noble Earl, Lord Russell, mentioned the worrying figure that 38% of people in this country live more than 15 minutes from a green or blue space. Our new town, Stevenage, has green space accessible to all and five Green Flag parks, including the wonderful Fairlands Valley. Does the Minister agree with me that a new generation of new towns would enable planners to start tackling the housing crisis, as well as delivering homes with access to green space that families need?

Teesworks Joint Venture

Baroness Taylor of Stevenage Excerpts

Tuesday 30th January 2024 Lords Chamber

[Baroness Taylor of Stevenage (Lab)]

My Lords, at the heart of this issue are the people of Teesside and the public asset formerly owned by them, which should be regenerated for their benefit, to generate jobs, employment and industry. They should also be receiving sufficient return for their investment of land and the other value of the site. The governance of the project should ensure an appropriate sharing of the risk taken by the private sector partners in order to justify the returns they have already accrued, as documented in the review. For the Government to suggest in this Statement that the report exonerates all those involved from any questions about what has happened and to insinuate that local MPs’ challenge of the many issues explored in the review was them using the communities of the north-east as a political football is simply not appropriate.

We understand that the project is complex. I have experience of instigating and overseeing a billion-pound regeneration project, so I understand the complexities that can arise. We also recognise that, in an area like Teesside, the urgency of moving at pace on a project which is going to generate jobs and employment is vital. However, that should not give any of those involved carte blanche to ignore the absolute necessity for the project to follow the strongest principles of probity, governance, transparency of decision-making, procurement practice, scrutiny and best value.

This very thorough and detailed report delivers a scathing assessment of the way those principles have been treated. Its 28 recommendations highlight: the need for reviews of financial regulations; better oversight and scrutiny; the make-up of the board; reporting to the board; that the public interest test should be foremost in terms of transparency; and that not enough attention is paid to conflicts of interest, including those of the mayor. Very seriously, the report highlights procurement issues, including the decision in August 2021 to change the balance of ownership in favour of the private owners to a 90:10 split, and the issue of the balance of risk between the public and private sector, when, to date, the public sector seems to have taken the bulk of the risk and been responsible for the costs invested, while the private sector has had the benefit of the profits. I am sure this way of operating would have gone down as a wow factor on “Dragons’ Den”, but has it really all been in the best interest of the people of Teesside? Have they got value for money for their public investment?

The concerns outlined in the report are absolutely not minor or trivial matters. The Minister made much of the fact that the report concludes it did not find evidence of illegality or corruption. Well, good, but surely we have learned from recent high-profile scandals, such as the Post Office Horizon issue, infected blood, and the supply of PPE, that there may be ways of operating that, while not strictly speaking illegal, are certainly not desirable or acceptable.

This scandal has exposed gaps in accountability and proper attention to local democratic scrutiny and a failure to follow the principles of spending public money, which makes it clear that there should be a further investigation by the National Audit Office. The NAO has already indicated that it would be willing and able to carry out that review. The people of the north-east surely deserve reassurance that every pound of their money invested in this project will count and will deliver sufficient return—especially as the private sector developers seem to have reaped a pretty healthy return, with little or no investment. So I ask the Minister: will a proper accounting review by the NAO will now be undertaken?

I understand that the chair of the Public Accounts Committee called the metro mayors together when they were elected and suggested they put robust auditing arrangements in place—as, following the abolition of the Audit Commission, there was no regulated accounting for them. The accounts published recently for Teesside were the first for the public to see. Is the Minister reassured that the advice of the PAC chair was taken?

This review represents a scathing indictment of what has happened on Teesside, and if we are to grow the country’s economy at pace and scale, as is my party’s ambition, surely it is important to understand the detail of the lessons that need to be learned. What steps did the Government take to ensure that officials who have previously worked at South Tees Development Corporation or public bodies on Teesside were free to comply with the investigation, regardless of any non-disclosure agreements they may have signed? The report itself cites that a former monitoring officer who advised on some of the significant decisions—including the move to 90:10 ownership—

“was invited to interview but declined because they felt their professional duties barred them from participating in the review”.

Can the Minister answer the question that so many local people are asking about the sale of scrap metal and aggregate from the site? Is she reassured that an appropriate share of the benefit from those sales has gone to local people?

To conclude, while we all accept that there is a need for major regeneration projects to proceed with pace, is the Minister satisfied with a report which found that:

“We did not see sufficient information provided to Board to allow them to provide effective challenge and undertake the level of due diligence expected of a commercial Board”?


There has been no private finance invested to date, while over £560 million of public funds have been spent or committed. Outcomes are reported quarterly to government, in line with the agreed criteria. However, these do not record the cumulative position on either costs or benefits, nor do they compare the current overall position in respect of costs or benefits with those set out in the business case.

Inappropriate decisions and a lack of transparency, which failed to guard against allegations of wrongdoing, are occurring and the principles of spending public money are not being consistently observed. Does the Minister conclude that the people of Teesside got value for money for their very considerable investment? Does she conclude, as the Minister in the other place did, that there should be no referrals onwards to other bodies for further review? Surely this damning report asks more questions than it answers—questions that the people of the north-east deserve and have a right to have answered.

I will finish with the final words of the report, which ask the questions so many local people, including the Northern Echo, want answered. The report says that:

“Based on the evidence from the review the governance and financial management arrangements are not of themselves sufficiently robust or transparent to evidence value for money”.


What are the Government going to do about this?

[Baroness Pinnock (LD)]

My Lords, I thank the Minister for the Statement. What a sad state of affairs it is that a vital and very large regeneration project in the north-east of England has to be the subject of an independent government review because of justified public criticism and concern.

The Financial Times and the Yorkshire Post have both, independently, been investigating the decisions made by the mayor and the development corporation. Senior investigative journalists with considerable experience have been seeking answers to basic questions of openness and probity in relation to the mayor, the development corporation, the joint venture and the local councils. They were absolutely right to do so. What is more, this report confirms their claims.

Unfortunately, this Statement seeks to draw a veil over the very serious conclusions drawn by the independent panel. The starting point is that the Tees Valley project is funded by hundreds of millions of pounds of public money, either from government grant or local prudential borrowing. The investment of public money rightly brings with it higher levels of transparency, challenge and probity.

There are 28 recommendations in the report, and they reveal a damning indictment of the process and procedures adopted by the mayor and the STDC with the joint venture company. The report states that the panel is not confident that

“we have been given access to all relevant materials”,

and that

“we have not been able to pursue all lines of evidence or examine all transactions”.

Anyone reading that will know that the panel is greatly concerned that there is much more to be investigated. My first question to the Minister is whether the panel will be given more time to examine those areas that have yet to be covered, or, as the noble Baroness, Lady Taylor, suggested, whether the NAO will be asked to investigate.

In its own words, the panel focused on just six areas, the main one being the establishment of the joint venture. Initially, this was a 50:50 deal between the public and private sectors, and that is a common arrangement for such schemes. However, the arrangement morphed into a 90:10 split, with the private sector taking the 90%. The report states that

“there is no formal partnership agreement that sets out the obligations of the JV partners, although it is clear that the JV Partners are heavily influential within the operations of the Teesworks site”.

My second question is whether the Minister concurs that there is no such formal agreement. If so, will the Government demand that there is one, and that that agreement will be open to public scrutiny?

One of the curious decisions made by the Teesside mayor and the combined authority is the appointment of two individuals as partners in the joint venture. In my experience, this is highly unusual in publicly funded projects. My third question is therefore whether a joint venture with individuals is in the best interests of transparency.

I turn to my fourth question. Following the report’s statement that the panel were “surprised” that, when the joint venture was set up in 2020, the report doing so

“contains so little detailed explanation and implies that there aren’t any material implications directly arising from this change in approach”,

even though the result of the joint venture was that

“two or three privately owned companies would likely receive significant financial returns”.

This was indeed the outcome. Can the Minister tell the House whether the balance of reward and liability detailed in the report is a fair one, and one which gives best value to public money?

There are myriad questions that require an answer from the Government. My next question concerns the liabilities apparently unknowingly acquired by the local councils and the Tees Valley Combined Authority. The first two recommendations of the report focus on the issue of who makes the gains and who holds the losses. My fifth question is this: does the Minister agree that passing on liabilities to local authorities while local government is in such a parlous financial state is, at the least, poor management, and, at worst, a deliberate ploy to shoulder local authorities with liabilities that are not rightly theirs?

I turn to my sixth and final question. Will the Minister agree to return to the House with a progress report on the implementation of all 28 recommendations, as I note the mayor has accepted these recommendations only “in principle”? Those of us who care deeply about good governance, probity in the use of public money and transparent decision-making want to see these recommendations implemented in full.

--- Later in debate ---

[Baroness Penn (Con)]

My Lords, the Audit Commission regulated, micro-managed and inspected local councils, forcing them to spend time ticking boxes and filling in forms rather than getting on with the business of local government. It hindered transparency and scrutiny. Local government can put in its own systems of local authority financial reporting and audit to ensure that it is accountable for spending public money effectively.

With regard to transparency functions, there is Oflog—the new data-driven organisation that will provide transparent and authoritative sources of information for the performance of local government. This will, however, be vastly different to how the Audit Commission operated, which imposed compliance requirements on local authorities and conducted routine inspections.

[Baroness Taylor of Stevenage (Lab)]

I have not heard anyone advocating for the Audit Commission; what we have been saying is that, since the Audit Commission went, the private sector auditors who have been appointed have struggled to deal with the complexities of joint venture auditing. That is the issue. With that in mind, will the Minister reflect on the quite exceptional circumstances of this case and whether it might justify a more detailed audit review by the National Audit Office? Has she had a response to the request from the noble Baroness, Lady Pinnock, that we hear back once the mayor has had a chance to consider his response to the 28 recommendations in the review?

[Baroness Penn (Con)]

I am afraid that I will have to disappoint the noble Baroness on her first question. We will not be referring this matter to the NAO. However, as I said in my initial response, the NAO has said that it will reflect on the findings of the review for its own programme of work. Of course, when the Government receive their response from the mayor and partners, we will reflect on what that means for next steps and will make sure that the House is kept up to date on what they are.

Leasehold Reform

Baroness Taylor of Stevenage Excerpts

Thursday 11th January 2024 Lords Chamber

[Baroness Scott of Bybrook (Con)]

I shall certainly do that—I thought that my noble friend Lady Penn had agreed to that letter, but I shall look into it and sort out a letter. But I think that my offer of meeting noble Lords, as we move into the Bill, is the correct way forward.

[Baroness Taylor of Stevenage (Lab)]

My Lords, millions of leaseholders across the country, such as those in Vista Tower in Stevenage, have suffered extreme financial distress, bankruptcies and inability to sell their properties, because the issue of fire remediation has fallen directly on them. When will those leaseholders have the Government’s reassurance that this is going to be dealt with once and for all?

[Baroness Scott of Bybrook (Con)]

We are dealing with it—it is a big piece of work, but we are dealing with it. It is happening all the time. What I have said to the noble Baroness and others many times at the Dispatch Box is that, if there are individuals who have complex issues and want to discuss them, we have a team of people in the department who will do that. I am happy to talk to her further about that.

Long-term Plan for Housing

Baroness Taylor of Stevenage Excerpts

Thursday 11th January 2024 Lords Chamber

[Baroness Taylor of Stevenage (Lab)]

My Lords, there surely cannot be any debate on the fact that we are in the midst of a catastrophic housing crisis, which figures from Shelter tell us leaves almost 300,000 of our fellow citizens homeless every night, including 123,000 children, and over a million families on social housing waiting lists. A planning policy framework doing its job would at least put the steps in place to start delivering the numbers of homes that would resolve this crisis, but this plan is neither long-term nor a plan to deliver housing.

Sadly, the Government’s caving-in to Back-Benchers in the other place, and developers on housing targets, means this planning policy framework will mean housing delivery falling far from the mark for the foreseeable future. Data published this week showed that consents are at an all-time low, 20% down on last year, and the National House Building Council shows a dramatic fall in registrations, down 42% in quarter two compared with last year.

Commitment to delivering real improvement in housing delivery has to be called into question when we have had no less than 16 Housing Ministers since 2010, and when the Secretary of State delivered his statement on this planning policy framework to a press conference, rather than in Parliament. The National Planning Policy Framework should provide the link to ensure that local councils are taking into account the strategic need for housing, industrial and commercial land, food and farming requirements and the whole range of environmental issues as they apply in each area. Local plans are vital to deliver what is needed across the country, but also to engage local communities in how that is done and to provide the protections needed against speculative, unwanted or dangerous development.

However, the level of uncertainty the Government have generated by flip-flopping over their commitment to housing, by failure to create proper industrial strategy and failure to take environmental issues seriously enough, has fatally undermined all of that and has now culminated in 58 local authorities either scrapping or delaying their local plans as they wrestle with the uncertainty over housing targets. Yet this Statement seems to unequivocally point the finger at local authorities.

I suggest that the Minister in the other place might want to look in the mirror here. The example closest to home for me was that after extensive local research, two years of intensive public consultation and partnership working, and an extended three-week public inquiry, our Stevenage local plan was submitted to the Government on time—and then sat on the holding direction on the Secretary of State’s desk for 451 days until it was finally approved.

It is not just on housing that this framework fails to deliver. Because we have no proper industrial strategy, it is almost impossible for local plans to meet the needs for industrial commercial permissions, and the honourable Member for Buckingham in the other place raised on 19 December that it does not meet the stronger protections for food production land use either, with a wishy-washy statement quoted by the Minister:

“The availability of agricultural land used for food production should be considered”.


What does that mean? Question after question when the Statement was debated in the other place, largely from Conservative Members, sought clarification of exactly what is meant by the fact that housing targets are an advisory starting point. The best the Minister could come up with was:

“I cannot pre-empt or suggest exactly what that will mean in all instances”.—[Official Report, Commons, 19/12/23; cols. 1275-6.]


One senior member of a respected planning stakeholder body told me that they stopped taking notes at the Secretary of State’s press conference on this topic because what he said just did not make any sense. Can the Minister please tell us how this process of advisory starting points for housing targets will deliver the 300,000 homes a year that are so urgently needed? We need to be clear here. There will be no levelling up unless we are at least aiming to provide a safe, secure, affordable and sustainable home for everyone. How does this set of policies deliver that?

On the key issue of resources, this is crippling local authorities’ ability to deliver against their planning obligations; indeed, the Royal Town Planning Institute reports 90% of local authorities as having a backlog of cases and 70% as having difficulties in recruiting. How will the Government support local authorities to resource their planning function as demand increases when their budgets are squeezed by the skyrocketing costs of children’s services, adult social care and, of course, homelessness? How do the Government reconcile their threats to remove planning powers from local authorities that do not meet the three-month deadline for delivery of their plan with the absolute obligation for authorities to consult local people? With a significant change on the issue of housing targets, surely it is understandable that further consultation must be undertaken. Has that been taken into account? If, as the Secretary of State has threatened, recalcitrant local authorities have their planning powers removed, who will undertake the planning work for their area? The Planning Inspectorate is already underresourced and its involvement in local plan-making would be a significant conflict of interest.

Time and again in debates during the passage of the levelling-up Act we were told that the Government would not accept amendments because provision would be included in the National Planning Policy Framework; for example, on ensuring that housebuilders focus on healthy homes and on making specific provision for housing for older people, flooding, access to open space, protections for historic buildings and a wide range of environmental issues. What assessment has the department carried out to ensure that all those issues—all those promises that were made to us—are incorporated into this new set of policies?

I return to my initial point: without a determined effort to deliver 300,000 homes a year, which we will need to resolve the housing crisis, we will continue to see the shameful situation where children are homeless, where they share beds with their parents because of lack of adequate space, where permitted development allows appalling housing conditions to prevail, and where poor housing affects the health and life chances of a whole generation. Perhaps it is time for a new ITV drama, “Mr Bates versus DLUHC”. In failing to tackle this through a clear housing strategy and the policies to support that, including targets, this policy amounts just to failure and another missed opportunity.

[Baroness Pinnock (LD)]

My Lords, I remind the House of my registered interests as a councillor in Kirklees—where we have an up-to-date local plan—and as a vice-president of the Local Government Association.

As the noble Baroness, Lady Taylor, just said, there are 1.2 million households on the social housing waiting lists and the Government’s own assessment is that 300,000 new homes need to be built every year. Having somewhere to live is a basic human right and a basic requirement that all Governments should fulfil. We have a housing crisis, and the response as set out in this Statement and the newly published National Planning Policy Framework fails to address that crisis. The policies are incoherent and fail on many levels. For example, the newly published NPPF refers to social housing only once and in a single sentence. There is a desperate need for social housing to rent. Can the Minister tell the House how long the 1.2 million households on the waiting list will have to wait for a safe, affordable home at a rent that is within their means?

I could tell the Minister of a family in my ward that contacted me this week. There is the wife, husband and a four year-old boy living with the grandmother, who has serious dementia, and a baby is on the way, in a two-bed Victorian terraced house with a front door that opens on to an A-road and the back door on to a ginnel, as we call it. It is an alley, I guess; we call them ginnels in Yorkshire. There is nowhere, literally no space, for that four year-old to play, or to put the baby. They rang me to ask what chance they had for a council house or a housing association home, and I had to tell them the awful truth: that virtually all the family homes have been sold under right to buy, very few replaced, and their chances are virtually nil within the next five years. How are the Government going to address that example and many, many more like it?

Debate on this vital national policy should have taken place when we debated the levelling-up Bill in this House. Many Members across the House, as the noble Baroness, Lady Taylor, said, asked for the information on the revised NPPF at that time, and it is now clear to me why the Government held back, because the National Planning Policy Framework as published fails to tackle this housing crisis by enabling local authorities to plan with confidence and with the goal of meeting their local housing need.

Housing need is defined not just by numbers of housing units required but also by type and tenure. The Government’s own figures show that 62% of the rise in households is of people over 65 living alone. Perhaps the Minister can say how the Government intend to ensure that this particular need is to be met, given the policies that they have now published. Is it possible, for instance, for local authorities to allocate a site for building with specific requirements to meet such locally determined need?

Next, the Government are relaxing housing targets by describing these as an “advisory starting point”. Can the Minister flesh out “advisory” in this context? How advisory is advisory? What advice will the Government be giving to the Planning Inspectorate on the definition of that word and what they expect it to mean?

Given that housing targets are to be determined more locally, can the Minister explain the rationale behind the requirement for 20 of the largest towns and cities to have 35% more homes than are determined by their local housing assessment? Why is it 35%, not 20% or 40%? Where does the figure come from, and what will it actually mean for those towns and cities?

One of the major holes in the Government’s planning and housing policies is that there are no penalties for developers who, having obtained planning consent, fail to start building or start a site and then delay building out. This is one of the major reasons for the crisis in housebuilding numbers: more than 1 million properties have planning consent but have not been built. Yet local authorities are to be penalised for failing to provide sites while, in those same local authorities, developers are failing to develop sites that have permission. What will the Government do about this dreadful state of affairs? What pressures will they put on developers to ensure that, once planning consent is given, the developer gets on and builds out the site?

Many residents oppose new homes because of the impact on local infrastructure, such as traffic, school places and access to health services. Many are justified in their complaints. For example, in my area of Kirklees, GP patient numbers are at 1,900 per doctor, as compared to the national average of 1,600. When residents raise the issue of more houses meaning greater numbers of patients for their local GP, where I live it is genuinely the case. There are already 20% more patients per GP where I live than the national average. What will the Government do to address the genuine complaints from residents about local infrastructure? That is just one example.

Providing the housing that we need is dependent on local authorities having up-to-date local plans, yet the majority of them do not have one. What action will the Government take to ensure that local authorities have up-to-date local plans? A local plan is the initial building block that unlocks sites for housing of a type and tenure that is so desperately needed. This Statement absolutely fails to address this. I look forward to the Minister’s replies to all the questions that have been raised; if she cannot answer them, I hope that she can give us written responses.

Homelessness

Baroness Taylor of Stevenage Excerpts

Monday 18th December 2023 Lords Chamber

[Baroness Penn (Con)]

My Lords, this Government embrace the building of the right homes in the right places; that includes new towns. It also includes greater densification in parts of our cities that are well connected to transport opportunities and jobs. We need more homes across the board, and that is what we are committed to delivering.

[Baroness Taylor of Stevenage (Lab)]

My Lords, I did not expect to hear the noble Lord, Lord Naseby, promoting Labour Party policy, but well done. On current trends, almost 6,000 households could be threatened with homelessness in the final quarter of 2023, covering this Christmas and New Year period. This is driven by a chronic shortage of decent, secure and affordable housing and accelerated by a storm of rising rents, the cost of living crisis and a refusal to ban no-fault evictions. I urge the Minister to bring forward amendments to the Renters (Reform) Bill to end no-fault evictions so that fewer families will be at risk next year.

[Baroness Penn (Con)]

My Lords, the Renters (Reform) Bill contains proposals to do exactly that; it will end no-fault Section 21 evictions. It is part of a suite of housing reforms that this Government have brought in to drive up standards in both the private rented and social rented sectors. We look forward to discussing that Bill when it reaches this House next year.

Building Repairs: VAT

Baroness Taylor of Stevenage Excerpts

Thursday 14th December 2023 Lords Chamber

[Baroness Penn (Con)]

My Lords, we learn from all successful schemes in this area, and you will see similar provisions in our current schemes, including the contribution of energy companies to the cost of improving insulation for households. We have a number of different schemes. They tend to focus, at the initial stage, on those on lower incomes who will most benefit from the reduced bills that improved energy efficiency will bring, but as we move towards achieving our net-zero targets, we will need to have the whole country covered. The expansion of our schemes takes it further—for example, the extended discount on heat pumps that we announced earlier this year.

[Baroness Taylor of Stevenage (Lab)]

My Lords, with all homes to be highly energy efficient by 2025, with low-carbon heating and zero carbon, what estimate have the Government made of the cost of this for social housing, which is likely to run into hundreds of thousands of pounds for each local authority and registered providers, at a time when the cost of living crisis means rent increases are unlikely to be able to meet these costs?

[Baroness Penn (Con)]

I do not have a figure for the overall cost, but the noble Baroness is absolutely right that it will be important for social housing to help make the transition. A lot of our early support has focused on this housing stock—for example, through the social housing decarbonisation fund—because local authorities will need support to take these measures and because the benefits of greater energy efficiency and lower bills need to be targeted at lower income households first.

York and North Yorkshire Combined Authority Order 2023

Baroness Taylor of Stevenage Excerpts

Wednesday 13th December 2023 Grand Committee

[Baroness Pinnock (LD)]

My Lords, I remind the Committee of my interests as a councillor in the adjacent West Yorkshire area and a vice-president of the Local Government Association.

Devolving powers on local decisions to locally elected representatives has been an aim of the Liberal Democrats for a very long time. It is very important that there is strategic thinking and decision-making across regions and subregions. Perhaps the Minister will therefore expect wholehearted support from the Liberal Democrats for the proposals before us, but she will be only partially right. I will detail the reasons for that.

First, mayoral combined authorities have delegated powers rather than devolved functions. Functions such as transport, housing, regeneration and planning are currently exercised centrally and delegated to the mayoral authority with, as we heard, skills following later. This particular mayoral authority will be granted, from Westminster, the grand sum of £18 million a year, which is specifically referenced within the order, as is the offer from the Government, as part of this deal, of £540 million over the next 30 years, plus additional sums which the Minister referenced. There is no mention of whether these are fixed cash sums, as they appear, or whether they will be index linked. Over 30 years, that potential £540 million will buy a lot less than it will now and be a lot less attractive than it appears within the order. Maybe the Minister can comment on that and say whether it will be index linked.

I acknowledge that this order enables a greater degree of local input in, for example, determining major highways schemes. However, the act of creating a mayoral authority is not a game-changer for more locally determined decision-making, as would occur in comparable local areas across western Europe.

My second point is the loss of democracy. The proposal before us is for the election of a single person to represent the whole of the City of York Council and North Yorkshire Council. The elected mayor will chair the combined authority of the two councils. The Schedule to this SI confirms that two representatives from each of the constituent authorities are required, with a third person acting as a substitute member. No other existing mayoral combined authority that I can think of has so few constituent member councils. It will be interesting to see how effectively this arrangement works in practice. There will be five people making decisions for the combined authority, on these very important functions that have been referred to.

This is a bit of a leap in the dark because of the small number of councils and, therefore, the small number of members on them. My second question is will there be a review of these constitutional arrangements, say within three years, to evaluate its success or otherwise? I think that is important.

The extension of the mayoral model to very rural areas, when the model does not recognise the very significant differences with urban areas, makes this a bit of a leap in the dark. I do not know whether the Minister has been to North Yorkshire. I live next door to it, so I know North Yorkshire and it is a very rural area. It has a population of 615,000, in—importantly—an area of 3,340 square miles, of which 40% is designated as the national parks North York Moors and the Dales. It is huge. With the City of York Council, which deals with a population of 142,000, the mayoral authority will be responsible for just about three quarters of a million people in a vast rural area, from the coast of Whitby to the border with Lancashire, and from the border with Northumberland to the border with Leeds. It is huge. There will be a single person directly elected to take responsibility not just for the mayoral functions but, in this instance, for both the role of police and crime commissioner and fire and rescue, for this vast county and historic city.

Of course, this is too large a range of responsibilities for one person. The arrangements in this order therefore allow for the appointment of a deputy mayor, who will presumably be responsible for police and fire. The upshot of that arrangement is that there is no longer a directly elected commissioner for policing or an elected councillor taking responsibility for the fire and rescue service across this vast county and the city of York. The conclusion I reach is that the Conservative experiment of police and crime commissioners has failed; otherwise, there would still be a directly elected police and crime commissioner for North Yorkshire and the city of York. At the minute, they are going to be appointed. Can the Minister explain whether there is now a policy of gradually removing elected PCCs?

The order states the expected allowances for the mayor, which will be determined by an independent panel. The scale of remuneration packages for combined authority mayors is instructive. In West Yorkshire, the mayor receives £105,000 per year while the appointed—I emphasise that word—deputy mayor receives £72,000 for taking responsibility in West Yorkshire for policing, but with no direct accountability to the people whom they are there to serve. Do not say “scrutiny” to me because it is ineffective.

The order also allows for the employment of a political adviser. I would like some explanation of that. From what I know, those do not exist in other mayoral combined authorities within the orders, so that is an interesting addition here.

In conclusion, a strategic political and democratically elected role is important. However, we Liberal Democrats cannot condone this cynical approach to removing elected police and crime commissioners—they are elected with responsibility for the fire and rescue service—and replacing them with appointed political people where there is no direct accountability through the ballot box, which is the least that taxpayers can expect in a democracy.

Given all that, I look forward to the Minister’s response.

[Baroness Taylor of Stevenage (Lab)]

My Lords, I remind the Committee of my interests as a serving councillor at both county and district level. I am also a vice-president of the Local Government Association.

As a councillor for almost 27 years, a former leader of my council for 16 years, one of the instigators of the Hertfordshire Growth Board and a local enterprise board member since its inception, I am a great believer both in the transformational powers of local government and in far deeper and broader devolution. I see this, as does my party, as the quickest and most effective way of creating economic growth tailored to local circumstances, as well as of providing the levers of economic, social and environmental well-being where they can best be deployed flexibly, speedily and to the greatest benefit of the area concerned.

So, as a passionate advocate of devolution, it would be churlish of me not to welcome an agreement between York, North Yorkshire and the Government where all believe that it is in their interests. If I needed further convincing, it was pleasing to see that one of my local government colleagues—Councillor Mark Crane, the leader of Selby, who had always been deeply sceptical of such a deal for North Yorkshire—now welcomes the proposals; I am pleased to see that. I thank all the leaders and officials from that area who have done so much work to get this deal over the line. My comments concern the principles, with some specific questions about this deal, and are not intended to intervene in this two-year-long process between the councils in York and North Yorkshire, the people whom they represent and the Government.

We have seen highly effective outcomes from devolution in Greater Manchester—with which I worked extensively as part of the Co-operative Councils’ Innovation Network—and in West and South Yorkshire, but no one could argue that the progress of devolution has not been slower than a snail’s pace. It remains fragmented, patchy and piecemeal, with large areas of the country not subject to deals at all, even where they have worked carefully to draw together political, business and social partnerships, because they have clearly not passed the mysterious and indeterminate tests set by the Government. I cite Hertfordshire as an example here. I was very pleased to hear the Minister in the other place reiterate yesterday that a mayor is not the right solution for everybody, but it seems that, if your proposal does not include one, you are far less likely to shimmy under that government bar.

We would like to see a presumption in favour of handing back powers to our towns, cities and communities, with everywhere having the powers and flexibility to turbocharge the growth that works for their area and to attract investment, with the ability to negotiate longer-term finance settlements from government. That would give every area the ability to be ambitious for their residents and businesses and to deliver the real changes on the ground to deliver that ambition.

Too many areas are held back by our antiquated, struggling and definitely not fit for purpose local government funding system. It has been further weakened by years of cuts, use of outdated data that is out of touch with changes in local areas and, more recently, the further blow to finances caused by runaway inflation following the mini-Budget just over a year ago. To authorities in such straitened financial times, a devolution deal can bring some much-needed financial relief, so it is perhaps not surprising that local leaders are tempted. However, we need to see this in context. The York and North Yorkshire deal, for example, apparently equates to £20 per resident of the region per year over the term of the 30-year deal—incidentally, that is more than West Yorkshire but less than Liverpool, the Tees Valley and South Yorkshire, so I hope that local government colleagues working on deals are tough negotiators.

However, IPPR North tells us that the north of England has seen a £413 reduction per person in average annual council spending in each year between 2009-10 and 2019-20, so the deal does not come close to the losses that communities in the north have experienced due to austerity. Does the Minister see this as such a marvellous deal in that context? Is it envisaged that further money might be on the table as plans for the area develop? That was a bit ambiguous in the SI, so I am interested to know whether it is the case.

On the consultation process, I can see from the papers that extensive efforts were undertaken—which the noble Baroness, Lady Penn, went through—to elicit responses from the public on these areas, but does the Minister consider that just over 2,000 responses from a population of almost 1 million people represents a clear mandate? What work have the Government done with the Local Government Association on how we might improve these consultation processes in future? I appreciate that the structure of local government can be confusing, particularly in areas with two or three tiers of local government, but introducing changes of such magnitude on the basis of a mandate of just over 50% of such a tiny percentage of the local population surely suggests that we need more innovation in the consultation processes.

On general questions of governance, the Minister will be aware that we tried very hard to ensure that every place in the area would be represented on the combined authority during the levelling-up Bill, but that was not the outcome. Like the noble Baroness, Lady Pinnock, I remain concerned about so many powers being vested in one person. It has been the practice in mayoral authorities for mayors to appoint deputy mayors and for them not to be elected. This also applies to police commissioners. These are very important roles, so does appointment rather than election impact on accountability? This is especially the case if the mayor cannot fulfil their role, as it is then delegated to an unelected deputy mayor. Why do the Government consider appointment the best model here and, to go back to my earlier point, why do appointed deputy mayors enjoy a role on combined authorities which is denied to locally elected council leaders?

Have the Government given any thought, for example, to local public accounts committees to mirror their function in the other place? This would widen the scope of the police and crime commissioners, which, I agree with the noble Baroness, Lady Pinnock, have not proved terribly effective, and would provide joined-up accountability for the mayor.

We note that for this deal the adult education budget transfer is to come later than the introduction of the combined authority in May 2024. I appreciate that this has been agreed with the partners in this devolution deal, but with skills and training so essential to economic growth, why are they not an early priority for all devolution deals?

I have carefully read Part 5 of the order, which means the authority may introduce bus franchising if it chooses to do so. How would the Government, including the Department for Transport, support the combined authority if it chooses to exercise this power? Do the Government envisage any issues arising from the different transport roles of the mayor, the York and North Yorkshire Combined Authority and the constituent authorities in relation to local transport plans, bus partnerships and highways and traffic authority functions?

In July, the BBC reported that £1 million would be given to support the set up of the new combined authority in addition to £582,000 already spent. Can the Minister update the Committee on funding the direct cost of the combined authority after the inaugural mayoral election? That is not the money allocated for spend for the authority, but its direct set up cost.

In conclusion, we strongly support the principle of devolution to local areas and congratulate all local areas that have navigated the current complex system to get their deals over the line. We will certainly not be opposing a deal negotiated at local level, however we urge that the Government consider how they will accelerate the devolution process and how some of the questions that have come up under this deal and others are to be answered in future.

[Baroness Penn (Con)]

My Lords, I thank both noble Baronesses for their contributions. I will seek to address as many of their points as possible. First, it is worth recognising the in principle support for this deal and the process overall.

Like the noble Baroness, Lady Taylor, we recognise the work that has gone on among local councils, representatives and others in making this happen. To pick up the point about consultation, it is important to place that consultation in the context of the involvement of a great many people within the York and North Yorkshire area who are representatives of their communities and constituents. Given the diversity of the areas covered, the broad support for it among councils, MPs and others involved means the reach for how we have gone about agreeing the devolution deal process is not represented just by the consultation. However, I think we should always look at how we can better engage local areas and people as we go through this process of devolution, so we would always open-minded about how we can improve on that process.

I will address the other, broader point around the process of devolution about how far this deal goes in terms of delegation versus devolution and how much of the country benefits from either and should in future. We are absolutely committed to having every area that wants it benefitting from more devolved government. Since we set out our ambitions for this in the levelling up White Paper, we have moved at a faster pace than we would expect. I think that more than half of England’s population will be covered by a devolution deal.

We are also keen to reflect that devolution deals can work for rural areas as well as urban areas. The noble Baroness, Lady Pinnock, is right that this deal is in some ways a trailblazer for that. However, I do not think that that is a reason not to go ahead. If we want devolution to be available to every area of the country, we need to find the geographies and structures that work that mean that it can be extended.

The Government are going further: we have the two trailblazer areas of Greater Manchester and the West Midlands Combined Authority as regards moving towards that next stage, where you will get closer to a single settlement for the combined authority with much greater flexibility. Those are intended to be trailblazers for other areas that wish to go further in this process—so I think we agree on the direction of travel as regards those aspects of it as well.

Home-ownership Rates

Baroness Taylor of Stevenage Excerpts

Wednesday 6th December 2023 Lords Chamber

[Baroness Penn (Con)]

My noble friend puts forward a number of approaches to tackling this problem. I agree on a great many of them; that is why, as I pointed out in my Answer, we have cut stamp duty for first-time buyers. We also have a savings scheme in place to help people with their deposits, because we know that is another barrier. The lifetime ISA applies a 25% government bonus to the savings that people put into that scheme. As for working with mortgage lenders, we have the mortgage guarantee scheme, which looks to expand the availability of 95% mortgages in the market, and we have worked closely with lenders in the current market to ensure that those who struggle to pay their mortgages are properly supported.

[Baroness Taylor of Stevenage (Lab)]

My Lords, by abandoning the housing targets, the Government have made home ownership for young people an ever more distant dream. Hard-working young people are increasingly priced out of their areas, squeezed by rents and having their ambition to buy a house taken from them. Can I urge the Minister to reinstate housebuilding targets and to consider a new, more comprehensive mortgage guarantee scheme?

[Baroness Penn (Con)]

My Lords, since 2010, more than 2.5 million additional homes have been delivered and, since 2018, we have had four of the highest annual rates of housing supply of the last 30 years. We are building more homes, because increasing supply is fundamental to helping more people on to the housing ladder—but there is more to do. We have our new affordable homes programme, which will deliver even more affordable homes to buy and for rent to help people on to the housing ladder.

Residential Leasehold for Flats

Baroness Taylor of Stevenage Excerpts

Thursday 30th November 2023 Lords Chamber

[Lord Kennedy of Southwark]

To ask His Majesty’s Government what plans they have to abolish residential leasehold for flats.

[Baroness Taylor of Stevenage (Lab)]

My Lords, on behalf of my noble friend Lord Kennedy and with his permission, I beg leave to ask the Question standing in his name on the Order Paper.

[The Parliamentary Under-Secretary of State, Department for Levelling Up, Housing & Communities (Baroness Penn) (Con)]

My Lords, I declare my interest as a leaseholder.

The Government are extending the benefits of freehold ownership to more home owners. Reforms in the Leasehold and Freehold Reform Bill will help leaseholders to buy their freeholds and will end the sale of new leasehold houses so that, other than in exceptional circumstances, all new houses will be freehold from the outset. For flats, the Government remain committed to reinvigorating commonhold to give developers and home owners a viable alternative to leasehold should they choose it.

[Baroness Taylor of Stevenage (Lab)]

My Lords, I thank the Minister for her Answer. Of course, we welcome the reform of leasehold, but with 5 million leasehold properties in England, 70% of which are flats, there is disappointment that they are not included in the Bill. Also, it does not appear that the Bill bans the sale of leasehold houses, either. The Times is reporting that the Minister’s department did not have time to include the leasehold ban before the Bill was introduced this week. Can she please clarify whether it is the Government’s clear intention to ban leasehold? If so, when will we see the relevant clauses?

[Baroness Penn (Con)]

My Lords, I can reassure noble Lords that it is the Government’s intention to bring forward clauses to ban the sale of new leasehold houses within this Bill. We intend to bring forward those clauses during the Commons stages. When it comes to flats, on the other hand, reform is more complicated. They have shared fabric and infrastructure and therefore require some form of arrangement to facilitate management. This has traditionally been facilitated by a lease. Therefore, banning leasehold flats is inherently more complicated. We will be taking forward, at a later date, reforms to the commonhold system to allow that to replace the leasehold system.

General Elections: Party-political Spending

Baroness Taylor of Stevenage Excerpts

Wednesday 29th November 2023 Lords Chamber

[Baroness Penn (Con)]

My noble friend is absolutely right that the procedure for uprating spending limits has to be done through multiple statutory instruments because different procedures are attached to different limits for different elections. I know that he has been a great advocate for simplifying and consolidating electoral law. I am sure that he will continue to advocate that, and I very much look forward to engaging with him on it.

[Baroness Taylor of Stevenage (Lab)]

My Lords, the Government’s rejection of amendments to the National Security Act means that foreign donations can still be made to political parties here in the UK. If the department is going to consider reviewing political financing, does the Minister agree that it is time to end this security loophole to prevent covert foreign donations to political parties?

[Baroness Penn (Con)]

My Lords, I believe that as a result of the debates on that Act the Government took forward a commitment to ensure information sharing between the police and other relevant authorities with a view to finding a way to improve that process. The sharing of information could improve the ability of relevant authorities to identify any individuals making or facilitating donations from foreign powers and sanction them. We have a commitment to report back to Parliament next year on that work.