(1 month, 2 weeks ago)
Lords ChamberI will have a look at whether it is possible to get that figure; I thank the noble Lord for that question.
The noble Lords, Lord Hayward and Lord Jamieson, asked me why we are changing the voting system only for two types of mayoral elections. First, to reiterate— as I think was referred to by the noble Baroness, Lady Pinnock—these changes revert to the 2017 voting system, which was brought in by the Conservatives, and it was the Conservatives who changed it back in 2022. We are reverting to the system that the Conservatives had introduced for these single-office posts.
The English Devolution and Community Empowerment Act 2026 received Royal Assent in April this year and the Government’s stated aim has always been that we will work at pace to deliver secondary legislation needed to implement the new law at the earliest appropriate opportunity. Of course, the Government are conscious that there is now a possible scenario in which a mayoral by-election may need to be held in Greater Manchester in the coming months, subject to the outcome of a parliamentary by-election in the Makerfield constituency on Thursday this week.
To fulfil both Parliament’s will and this Government’s stated commitment to reimplement SV, we have drafted this order at pace to ensure that the necessary legislation will be in place for this system to be utilised if that mayoral by-election takes place. To meet this deadline, the order had to be kept concise and could not include measures to amend all other types of mayoral elections. Amending all the relevant mayoral and PCC election conduct rules would also require a range of statutory instruments, as they use different parliamentary procedures. We intend to implement SV for other mayoralties and PCCs in due course through separate instruments.
If the noble Lord will bear with me for a moment, I am going to answer some of his other points. If I do not cover it, he is welcome to step in.
The noble Lord, Lord Jackson, raised issues about the voting system. I am sure he will make his comments on voting in London when we make the instrument for London mayoral elections. To be clear, this particular instrument does not cover London mayoral elections. SV was the voting system implemented on the introduction of both mayoral and police and crime commissioner elections. As I said, we think it is much more appropriate for selecting single-person executive positions such as mayors or police and crime commissioners.
However—and the noble Lord Jamieson asked about this—we believe that the first past the post system is a clear way of electing representatives which is well understood by voters and which, although not perfect, provides for a direct relationship between a member of a legislature and the local constituency. The first past the post voting system is therefore a more suitable system where there are a number of seats to be filled, such as for a council or a Parliament, and the likelihood is that people representing a range of views and parties will be elected. Therefore, the Government have no plans to change the electoral system for UK parliamentary or local council elections in England.
I thank the Minister. On a point of fact, as a result of the 2022 legislation which reverted back to first past the post, the Greater London returning officer estimated that, because it was not necessary to use the e-voting infrastructure for counting, there was an indicative saving of £4 million. That is the difference between the SV system and first past the post, so surely the Minister will concede that there is a significant greater cost of this new system that we do not yet know.
As I said, this instrument does not cover London, and there is no price to put on democracy. We should always be aiming for democracy first. However, as I said to the noble Lord, Lord Hayward, I will do my best to find out if there is any financial impact of this instrument.
The noble Lord, Lord Hayward, asked me about the sector being able to cope with the late change. SV has been used in the past extensively and recently and will be deeply familiar to returning officers and their teams. My department has been working closely with the sector as it prepares for the changes arising from the English Devolution and Community Empowerment Act 2026, and we will continue to support it in managing any changes once this instrument is made. As I said, we consulted with the Electoral Commission, which did not have any concerns about this, so we are confident that the change is straightforward and the sector will have no issues in implementing it.
The noble Lord, Lord Hayward, and the noble Baroness, Lady Pinnock—for very different reasons, I think—asked how the public will be informed of these changes, and the noble Lord, Lord Jamieson, had some concerns in that area too. Electors will receive information on the voting system used via a number of methods, including guidance on postal voting statements and in polling stations that they will read prior to voting. More importantly, where there are three or more candidates at an election, the ballot paper itself will be clear that electors have the option to select a second preference. I am confident that electors will be informed of the change and understand their options when casting their vote, especially given that this is a voting system that has been used extensively in the past and will be well understood, and indeed familiar, to many voters. Greater Manchester used SV for almost all its elections, with the exception of one in 2024, reflecting its status as an established voting system.
The noble Lord, Lord Jackson, and the noble Baroness, Lady Pinnock—again, I expect, for very different reasons —asked me why we were using SV, not a different system. The Government have no plans at present to introduce the single transferable vote to mayoral and PCC elections. The Government acknowledge that different voting systems can be better suited to different types of polls and elections, and we take the view that SV is the right system to use for selecting single-person executive positions. It requires the winning candidate to receive the majority of votes counted, and that ensures that they have broad support across the area and a broader mandate from the people they are representing. A key advantage of the SV system over other preferential voting systems is that, as I said, it was widely used before for mayors and PCCs, so people are familiar with it.
The other question from the noble Baroness, Lady Pinnock, was about how the supplementary vote is counted. With a supplementary vote, if no candidate gets over 50% of the vote, the top two candidates continue to a run-off and all other candidates are eliminated. When casting their ballot, voters can put a second choice of who they would vote for in a run-off on the original ballot paper. If your favourite candidate gets through then your vote is counted for them in the run-off, but if they did not and your second choice did, then your vote goes to them. The run-off candidate with the most votes is declared the winner.
(4 months, 4 weeks ago)
Lords ChamberTo ask His Majesty’s Government whether they plan to discuss alleged breaches of the Ballot Secrecy Act 2023 in relation to the Gorton and Denton parliamentary by-election with (1) Manchester City Council, and (2) the Greater Manchester Police.
My Lords, I understand that the allegations have been reported to Greater Manchester Police, which is considering the matter. The Electoral Commission is in close contact with Greater Manchester Police and the returning officer. If coercion at the polling stations had occurred, it would have been a breach of the law under the Ballot Secrecy Act 2023. It is essential that electors can cast their vote in secret and without the risk of coercion. Your vote should be yours alone. If anyone believes they have witnessed family voting occurring at this by-election or at any time, they should contact the police.
I thank the Minister. She will know that the previous Government introduced a power in the Elections Act 2022 for the Electoral Commission to draw up a strategy and policy document containing measures to tackle electoral fraud and corrupt and illegal practices, including family voting. However, Ministers have now U-turned on this by indicating that they will repeal the legislation and dump their own 2025 elections strategy. Given the substantial concerns after Gorton and Denton, why are the Government removing safeguards introduced because of the endemic fraud in Tower Hamlets, deleting guidance for local authorities on how to stop family voting and introducing secret election pilots for their own partisan advantage? Are the Government going soft on electoral fraud, or is it worse than that?
(10 months, 3 weeks ago)
Lords ChamberAs the noble Lord predicts, I do not have the figure in front of me, but I will write to noble Lords and confirm what it is.
Amendment 185L seeks to deal with instances in which community infrastructure secured through Section 106 cannot be delivered as originally intended. In our view, this amendment risks unintended consequences which could hinder, rather than facilitate, sustainable development. I emphasise that local planning authorities can already take enforcement action if a developer fails to deliver on the obligations they have committed to in a Section 106 agreement, including failure to deliver community infrastructure where relevant. This may include a local planning authority entering the land to complete the works and then seeking to recover the costs or applying to the court for an injunction to prevent further construction or occupation of dwellings. This amendment would prevent the modification of planning obligations even where a change of circumstances means that the community infrastructure in question can no longer be delivered by the developer.
As I have set out, the Government are committed to strengthening the system of developer contributions, including Section 106 planning obligations. To deliver on this commitment, we are taking a number of steps, including reviewing planning practice guidance on viability. However, we must have flexibility where necessary to ensure that development, where there are genuine changes in circumstance, can continue to come forward. We must also think carefully about the demands we are placing on local planning authorities, which may not have the capacity or resources to take on responsibility for delivery in the way this amendment proposes.
Amendments 185K and 220 focus on the development consent order process and strategic development schemes and seek to achieve the same outcome. The clauses proposed by the noble Baroness, Lady Pinnock, would place a legal requirement on developers to deliver on commitments made to provide specified local infrastructure as part of their projects.
First, I want to express my sympathy with the spirit behind this proposal. We all agree that communities must be able to secure the infrastructure they need, especially when new development brings added pressure on local services and existing infrastructure, including schools, nurseries and GP surgeries. In particular, I acknowledge that the concerns that may be driving the amendment relate to the impact of temporary workers or additional traffic on local communities caused by large-scale infrastructure projects, which can remain under construction for significant periods of time.
Does the Minister agree that the problem with the amendment proposed by the noble Baroness, Lady Pinnock, is that the viability of affordable housing changes all the time? Because there is a link between the viability of residential housing and community facilities, that amendment could lock in the development in a restrictive way—for instance, it might not allow off-site commutation of funding to fund other projects.
I understand the noble Lord’s point, and it is of course important that we get the balance right between the delivery of the infrastructure as set out and having flexibility, so that when circumstances change, this can change too.
The amendments seek to focus on the issue by ensuring that commitments to delivering local infrastructure need to reduce the impact of a large-scale scheme. In responding, I have assumed that the reference to strategic development schemes is intended to relate to spatial development strategies, which are introduced through this Bill. These strategies, along with local development plans, set out infrastructure needs but are not applications and do not have developments attached to them. I agree strongly with the noble Baroness, and when it comes to large-scale new developments, the Government agree that delivering local infrastructure is crucial. If a project approved through a development consent order creates a need for local infrastructure such as roads, schools or drainage works, those needs can be addressed in two ways.
First, development consent order requirements, which are similar to planning conditions on planning permissions issued under the Town and Country Planning Act 1990, control how and when the development is carried out, and may require the approval of subsequent details by the local planning authority. These can be used in cases where changes to local infrastructure are needed to make development acceptable in planning terms. For example, if a developer is providing a relief road to mitigate an identified impact on local infrastructure as a result of constructing a large-scale infrastructure project, the necessary works can be detailed in the requirements. Relevant requirements may mandate subsequent plans—which outline proposed design, works phasing and traffic management—to be submitted to the highways authority, and these plans would then need to be approved and adhered to when implementing the development consent order.
Secondly, local infrastructure can be secured through development consent order obligations. These legal agreements can be used to require the payment of money as contributions towards the provision of local infrastructure, or to secure commitments to delivering that infrastructure. An obligation can be used to ensure that impacts on local infrastructure are properly taken into account and to mitigate identified adverse effects. The Secretary of State may take into account development consent obligations that meet the relevant legal and policy tests when deciding whether to grant development consent for the project. Once an obligation is enforced, it becomes legally binding and runs with the land, even if the land changes hands. A local planning authority has a range of enforcement options available to it if developers or the owners of the land, subject to the development consent obligation, do not fulfil their legal commitments.
While we fully support the goal of ensuring communities get the infrastructure they need, we believe the existing system already provides the right tools through legal requirements where appropriate, and these clauses would not add clarity or effectiveness to that process. I thank the noble Lord, Lord Jamieson, for his series of questions. I will check in Hansard which ones I answered. If there are any I did not answer, I will reply to him in writing. However, for all the reasons I have set out, I kindly ask the noble Baroness, Lady Pinnock, to withdraw her amendment.
Amendment 218 would require the Secretary of State to conduct a review of land value capture, including consideration of the merits of alternative methods of land value capture, within six months of Royal Assent to the Bill, and to report on the findings to Parliament.
I thank the noble Baronesses for raising this amendment. It is critically important that local planning authorities can capture a proportion of the land value uplift that often occurs when planning permission is granted in order to deliver affordable housing and the infrastructure needed to mitigate the impacts of new development. Local planning authorities currently use the well-established and effective mechanisms of Section 106 planning obligations and the community infrastructure levy. That is why the Government are committed to strengthening this system, and we have chosen not to implement alternative proposals for land value capture provided for in the Levelling-up and Regeneration Act 2023, such as the infrastructure levy.
The Government have already made important progress in delivering against this commitment. For example, through the revised National Planning Policy Framework, published on 12 December last year, the Government introduced new “golden rules” for major development involving the provision of housing on land within or released from the green belt. Our “golden rules” aim to deliver higher levels of affordable housing alongside necessary infrastructure and accessible green space.
Through the English Devolution and Community Empowerment Bill, currently in the other place, we are also legislating to give mayors of strategic authorities the power to raise a mayoral CIL alongside the requirement to have a spatial development strategy in place, enabling them to raise revenue for strategic growth-supporting infrastructure where this is balanced with viability. The department has provided evidence to the Housing, Communities and Local Government Select Committee inquiry into land value capture, and we very much look forward to engaging with the findings and recommendations of that inquiry in due course.
Amendment 184, tabled by the noble Baroness, Lady Thornhill, seeks to exempt local planning authorities from applying the nationally described space standards on planning applications concerning the delivery of “stepping stone” accommodation. I also thank Centrepoint for its continuing and proactive support regarding the housing crisis among young people, and for its work on the Bill.
As helpfully set out by the noble Baroness, Lady Thornhill, in her explanatory note, the thrust of this amendment is to promote accommodation for young people who are leaving supported housing or who are at risk of homelessness. I have delivered similar schemes to the ones she described through our housing first scheme in Stevenage, including some for young people with learning disabilities, which was a remarkable experience. It was a small development, but it was life-changing for those young people. The community they formed in that housing development was wonderful to see, so I do not need any convincing of the reasons for delivering schemes such as these.
I give my support to the principle of the amendment of the noble Baroness, Lady Thornhill, and agree that regulation should not unnecessarily get in the way of providing safe and secure housing for our most vulnerable, particularly vulnerable young people. However, I hope I can reassure her that the amendment is not needed.
The purpose of the space standards is to provide guidance on the minimum area of new dwellings across all types of tenures, based on the number of bedrooms and bedspaces. The nationally described space standards are not set out in legislation, and they are not mandatory. It is at the discretion of local planning authorities to choose to adopt the space standards through their local planning policies where there is an identified need for additional technical requirements. As set out in planning practice guidance, when establishing a clear need for adopting the space standards locally, they must assess the impact on local viability and housing supply.
By law, planning applications are determined in accordance with the development plan, unless material considerations indicate otherwise. Each application is judged on its own individual merit, and the weight given to these considerations is a matter for the local planning authority as the usual decision-taker in the first instance.
What constitutes a material consideration is very widely defined and it is for the planning decision-maker to determine what is a relevant consideration, based on the circumstances of a particular case. We feel this is best for local areas to determine on a case-by-case basis, rather than being dictated by central government. For example, if the local planning authority considers that the need for a particular housing tenure—such as “stepping stone” housing—would, when considering all relevant material considerations, outweigh the policy requirement to have that housing meet the optional space standards adopted in its local plan, it may grant planning permission. In short, the current planning framework—
(1 year, 2 months ago)
Lords ChamberMy Lords, I thank the noble Lord, Lord Bird, and my noble friend Lord Hacking for their amendments relating to the commencement of measures in the Bill. I thank the noble Lords, Lord Deben and Lord Cromwell, and the noble Baronesses, Lady Grender and Lady Scott, for participating in this group.
I turn to Amendments 278, 282, 286, and 291 in the name of the noble Lord, Lord Bird. I add my tribute for all the work he does to tackle homelessness. He is a great hero of mine, and it is a great privilege to work with him. The noble Lord rightly notes the importance of ending Section 21, which is a major contributor to homelessness levels in England and a major cost to councils, which now spend more than £2 billion a year on temporary accommodation. That was the last full year’s figure. I heard that £4 million a day is currently spent on homelessness in London. Much of that is driven by Section 21 evictions. As well as the misery created for individuals and families, these evictions put pressure on the public purse and costs that would be much better spent on other public services.
These amendments seek to bring most of the measures in the Renters’ Rights Bill forward to Royal Assent. The Government agree with the noble Lord that the measures in this Bill are urgently needed, which is why we moved swiftly to introduce it early in our first legislative programme for government. To end the scourge of Section 21 evictions as quickly as possible, we will introduce the new tenancy for the private rented sector in one stage. On that date, the new tenancy system will apply to all private tenancies. Existing tenancies will convert to the new system, and any new tenancies signed on or after that date will be governed by the new rules. There will be no dither or delay, and the abolition of Section 21, fixed-term contracts, and other vital measures in the Bill will happen as quickly as possible.
However, we must do this in a responsible manner, as noble Lords have mentioned. We are therefore also committed to making sure that implementation takes place smoothly. As such, it is essential that wider work around the Bill is allowed to conclude before implementation takes place. That includes the production of guidance, updating court forms and making secondary legislation. For example, the information that landlords are required to give tenants in the written statement of terms will be set out in secondary legislation. Work is already under way on these matters. We need to get it right. We will appoint the date of implementation via secondary legislation, which is typical when commencing complex primary legislation. This will allow us to give the sector certainty about when the system will come into force. Relying on Royal Assent would create significant uncertainty around the specific date, and it is important that we do not do that.
I say to the noble Lord, Lord Bird, that I was lucky enough to benefit from the post-war Labour Government’s drive to build social housing so, although I could have done, I did not grow up in the kind of housing that he described. Our social housing was built in new towns, and that was the last time that social housing was built at any scale in this country. We have promised that again, and have committed £2 billion to social and affordable housing. So the noble Lord has my personal commitment that we will move this forward as quickly as possible.
The noble Lord, Lord Deben, talked about the speed of legislation. I have been a Minister for only a few months but I am already learning the frustration of time lags. I thought that councils move a bit too slowly at times, but we certainly need to move things forward more quickly. Of course, this is not just about legislation; we are trying to move on housing at some speed. We have already provided funding to improve construction skills, funding for planning officers, a new National Planning Policy Framework, over £500 million for homelessness and the social housing funding that I have already mentioned. We understand that this needs to be moved forward quickly. We will work as quickly as we can on that. As such, I ask the noble Lord not to press his amendments.
I concur with the comments across the Chamber about what a professional job the Minister has done in piloting the Bill and engaging with Members. At Second Reading, she made specific reference to working closely with the Ministry of Justice on court digitalisation and extra funding for court costs. Is she in a position to update the Committee on what progress has been made on that? There are still people across the Committee who are concerned about the likely ramifications of the abolition of Section 21, whenever it happens.
I understand the noble Lord’s concern. There is ongoing dialogue with the Ministry of Justice, and I hope to be able to update Members before Report on where that has got to as soon as we are able to. I do not think it would be helpful to have a running commentary on it but my honourable friend the Minister for Housing is in dialogue at the moment with the MoJ. I will update noble Lords as soon as we get to the end of those discussions.
I turn to the amendments tabled by my noble friend Lord Hacking. Amendment 281 seeks to delay a number of provisions coming into force. The Bill currently provides that these provisions commence two months after Royal Assent. Two months is a well-established precedent, and I see no reason why commencement of these provisions should be delayed. For example, the provisions include important protections for tenants and provide local authorities with better powers to enforce housing standards.
Amendment 287 would set a time limit of 12 months between Royal Assent and the implementation of the Bill’s tenancy reforms in the private rented sector. Amendment 288 would change the approach to tenancy reform implementation in the Bill. It would require that the measures were applied to new tenancies no earlier than six months after Royal Assent and to existing tenancies no earlier than 12 months after Royal Assent. Amendment 289 would require that the conversion of existing tenancies to assured tenancies under the new tenancy reform system took place no earlier than 12 months after Royal Assent. As I have set out previously, we will end the scourge of Section 21 evictions as quickly as possible, and we will introduce the new tenancy for the private rented sector in one stage.
I assure my noble friend that this Government will ensure that the sector has adequate notice of the system taking effect but, in order to support tenants, landlords and agents to adjust, we will allow time for a smooth transition to the new system while making sure that tenants can benefit from the new system that they have waited so long for as soon as is realistically possible. We are planning a wide-ranging campaign to raise awareness of our reforms, supported by clear, straightforward and easy-to-read guidance to help landlords to prepare for change and to help tenants to be ready for it. On that basis, I ask my noble friend not to press his amendments.
(1 year, 2 months ago)
Lords ChamberMy Lords, I support my noble friend Lady Scott on the Front Bench and reiterate her very strong arguments and those from my noble friend Lord Marlesford just now.
We have seen a quite significant trend since the general election of the Government seeking to award themselves very wide-ranging, permissive powers in primary legislation with very little detail. That is a significant concern. Certainly, if the boot was on the other foot and a Conservative Government had brought forward a clause such as Clause 64, where we are being invited to take on trust the expeditious post-dated production of a statutory instrument and regulations, the party now in government would, quite rightly, have complained about that.
If we look at the detail, this is an extremely wide-ranging amendment. Clause 64(4)(b) talks about “relevant tenancy” and the adding or removal of any particular kind of relevant tenancy. On “dwelling”, paragraph (c) states,
“in addition to a building or part of a building, it includes any other structure, vehicle or vessel”,
and
“includes a building or part of a building, and anything for the time being included in the meaning of ‘dwelling’”.
That is a very wide definition to be in a Bill when we have an open-ended commitment to produce regulations without any date.
I think, and have said before, that the idea of retrospective legislation is poor. In a different context at the beginning of Committee in your Lordships’ House I mentioned this issue. It is very worrying that there is no opportunity for a period of amelioration and getting used to the regulations.
Finally, given all that, the chance of significant instances of litigation arising from this clause are pretty high, I would think. For those reasons, is the Minister able to write to noble Lords before Report at least to give an indication of when those regulations are likely to be published to reassure your Lordships’ House that this a one-off in terms of how wide and permissive these powers are? Frankly, it is not good enough. It does not allow us to analyse properly the efficacy of the policy and the likely impact it will have on any litigation for both landlords and tenants. I hope the Minister is able to take those issues on board.
My Lords, I thank the noble Baroness, Lady Scott, for her amendment regarding the definition of a landlord and thank the noble Lords, Lord Marlesford and Lord Jackson, for participating. Amendment 206C seeks to remove subsection (4) of Clause 64. This would mean that amendments to the definitions of “relevant tenancy”, “residential landlord” and “dwelling” set out in the Bill could not be made by regulations. This would affect Part 2, which includes the redress and database provisions.
I fully agree that any changes to the definition of those who bear responsibilities and benefit from rights under this legislation should be made with proper consideration. The definition of “residential landlord” under Clause 64 of this Bill has been drafted with care to capture the majority of typical private tenancies in England. However, the private rented sector has proven itself to be dynamic. I am sorry to say that the unscrupulous use of complicated arrangements, such as certain types of rent-to-rent schemes, has demonstrated the need for flexibility in how we define who is, or is not, in scope of private landlord redress or the database. We are also aware that other forms of occupation, such as occupation under licence, may benefit from the Part 2 protections in the future. A strong case may be made for expanding who is protected if certain arrangements proliferate following the implementation of the Bill.
Our focus at this time, however, must be on getting our reforms right for the millions living in typical private tenancies, rather than extending the redress and database provisions to other kinds of residential occupier whose needs and circumstances may be quite different from the majority. We have included a power to change the scope of Part 2 by regulations in the future if it is considered appropriate. The reason is that the introduction of mandatory landlord redress for the first time is a significant undertaking. The definition of “residential landlord” has been drafted, as I said, to capture the majority of tenancies. We have retained the flexibility to change the scope of rental agreements covered by the database and ombudsman in the future, should that be deemed necessary.
(1 year, 3 months ago)
Lords ChamberMy Lords, I thank the noble Lord, Lord Jackson, for his amendments relating to transitional provisions and retroactive legislation, and for his lesson in Latin. In the year I took my second language, I was hoping to do Latin, but they changed it to Russian, so I never got to do it. I am very grateful for the lesson this morning. I will return to his points in a moment.
I will cover a couple of other points before I explain the government amendments. First, in relation to the comments made by the noble Baroness, Lady Scott, if landlords are not aware of the legislation, it has certainly not prevented them from coming forward with their representations—we have had hundreds of them. We have also had frequent contact with representative bodies such as the National Residential Landlords Association, but that does not mean that the Government do not understand the need for effective communication of the legislation. We will continue to work on a programme for that.
In relation to the comments made by the noble Lord, Lord Empey, one thing that frustrated and annoyed me when I was a council leader was when the standard equalities clause was put at the end of a committee report, as if it was just a tick-box exercise and everybody assumed it covered all the bases. I used to insist that the statement of equalities was relevant to the paper to which it was appended. I feel the same about signing off the rights clauses in this Bill, so I take it seriously. However, he makes a very good point, and we must always be clear that what we are signing off does its intended job.
I thank all noble Lords who have contributed to the debate: the noble Lords, Lord Marlesford, Lord Carter and Lord Cromwell, the noble Baroness, Lady Thornhill, as well as the other noble Lords whom I have mentioned.
On the government amendment removing Clause 3, I think this is the first time I have had to remove a government clause from a government Bill, but that shows that we are listening and thinking about making this a better Bill as we go along. Our amendments remove Clause 3, which makes transitional provision for terms in existing superior leases, and replace it with government Amendment 296. Government Amendment 296 inserts Part 2 of Schedule 6 to make transitional arrangements which ensure that pre-existing legal instruments will continue to operate and that parties to such instruments will not be found in breach of their terms following the implementation of our tenancy reforms. The risk arises because such instruments may make express reference to certain tenancies—such as assured shorthold tenancies, to which the noble Lord, Lord Jackson, referred—which will become obsolete as a result of the Bill. Mortgages, for example, sometimes require letting only on assured shorthold tenancies, which would be impossible for a landlord to comply with after commencement. In the case of mortgages, insurance contracts and Section 106 planning obligations, landlords will be able to continue to let their properties without being found in breach of their terms where they were able to do so before the reforms. Provision is made so that parties will not be prevented from making changes or modifications to their agreements of their own volition.
In relation to existing leases, the amendment will ensure that intermediate landlords will not be found in breach of their head lease terms should they return a property to the superior landlord which is subject to a post-reform assured periodic tenancy—I realise this has a level of complexity that can be baffling. That could be the case, for example, if a subtenancy is converted from a fixed-term to a periodic tenancy on commencement of the Bill and the head lease is for a fixed term that expires shortly thereafter.
Government Amendments 184, 276, 277, 290 and 297 to 301 make technical, consequential amendments associated with government Amendment 296. Notably, government Amendments 297 and 299 enable changes to be made to Part 2 of Schedule 6. These will ensure that transitional or saving provision can be made to address all possible issues which may arise from pre-existing instruments and that are yet to be identified. Again, this ensures a seamless transition to the new legal framework in what is, admittedly, a very complex legal context.
I will make a few general comments on the amendments tabled by the noble Lord, Lord Jackson. Subsuming Clause 3 into new Part 2 of Schedule 6 is intended to ensure that leaseholders who are permitted or required to sublet on a fixed-term assured tenancy, or an assured shorthold tenancy, under the terms of a superior lease are not put in breach of a superior lease following the changes to the assured tenancy regime made by the Bill. It necessarily has a retrospective effect on parties to such superior leases which were entered into before the Bill’s provision came into force.
The explanatory statement appended to the noble Lord’s amendment explains that the intention is to probe why this clause operates retrospectively. It is not entirely clear from the drafting what the amendment wants to achieve; the intention appears to be to enable an assured tenancy to be granted pursuant to the term in a superior lease in the same circumstances and on the same terms as would have been possible before the changes made by the Bill. It is possible that the intention is even to go as far as allowing a fixed-term tenancy or an AST to be granted. If so, the amendment would very likely not achieve that.
The policy intent behind Clause 3 is important: to protect landlords with superior leases from being unable to sublet in future, or even being placed in breach of their superior leases, as a result of the reforms. It is important enough to merit interfering in existing contracts. The Government recognise that any legislation with retrospective effect needs to be carefully considered. In the case of this Bill, we will apply the new tenancy system to all private tenancies at the same time, including those entered into before commencement. This will prevent a lengthy system of two-tier tenancy, ensuring that tenants can enjoy better rights at the same time and that Section 21 is not available in relation to private tenancies. Landlords will continue to have access to strengthened grounds for possession to end tenancies when they need to.
I turn specifically to Amendments 16, 17 and 18. As I have just set out, Clause 3 has been subsumed into new Part 2 of Schedule 6. However, the intended outcome behind Clause 3 will still be delivered, so I will address the substance behind the amendments tabled by the noble Lord, Lord Jackson, as this will still be relevant even if the clause structure and numbering are somewhat altered.
The purpose of Clause 3 is to enable landlords with superior leases to continue to sublet after the reforms have come into force. Existing superior leases may require landlords who sublet to do so on an assured shorthold or a tenancy with a fixed term. These are types of tenancy that this Bill will abolish, so landlords will not be able to comply with such requirements in future.
Clause 3 therefore ensures that the intermediate landlord will not be in breach of the terms of their superior lease and can continue to sublet under the new system by issuing new-style assured tenancies. This is critical to ensuring that landlords with existing superior leases are not unduly impacted by the reforms and left in breach, and must therefore apply retrospectively to existing leases in order to operate as intended. Indeed, this preserves the effect of existing agreements and ensures that the reforms do not interfere in previously agreed arrangements—the opposite of what the noble Lord, Lord Jackson, was suggesting. Without these provisions, some landlords would be left in breach of their own superior lease, and the future supply of private rented properties could be severely affected.
I do not think that these amendments will improve how Clause 3 will operate in the proposed new structure, and therefore I respectfully ask the noble Lord, Lord Jackson, to withdraw the amendment.
I thank the Minister for those comments. I, too, remember when we sparred on regional television many years ago. We did it in English—not Latin, unfortunately, or even in Russian.
On a serious point, I hear from the Minister that she is cognisant of the need for a balance between the rights and obligations, and duties and responsibilities, of tenants and landlords. I was struck by the comments of my noble friend Lord Marlesford about litigation and the capacity of the courts to deal with some of these issues which may arise from aspects of retroactivity in this legislation. The noble Lord, Lord Cromwell, also made a very good point, which the Minister will hopefully take on board, that we need a proper schedule ahead of time where the Government outline where these changes will be made, in order for representative organisations, such as the NRLA and others, to communicate that. I also hope the Government take the opportunity to consult properly with small landlords and other representative bodies.
Naturally, because of the wide-ranging nature of these changes, we will no doubt have to return to this issue from the Front Bench and across the House on Report, but with the spirit of co-operation and the helpful response from the Minister, I am happy to withdraw my amendment.
(1 year, 7 months ago)
Lords ChamberThe noble Baroness makes a very good point. I pay tribute to my colleagues in local government, who do an amazing job of continuing to deliver some non-statutory services in spite of the incredible financial pressures they have been under. For example, we still managed to keep a theatre open in my area. That happens all across the country, so all credit to local government for the work it does on this. The noble Baroness mentioned constant rounds of bidding for pots of funding. We think that is wasteful and unnecessary. It just sets authorities up against one another in competing for pots of funding. We will do our very best to get rid of that approach. As we develop the spending review proposals, we will build what local authorities need for the future into core funding.
My Lords, because the Minister is a very experienced and knowledgeable former local authority leader, she will know, in all fairness, that Covid, inflation, energy costs and demographic change were also issues that the previous Government had to face. Her Government will have to face some of them as well. On the specific pots of money to be bid for, I ask her to alight on the issue of planners. Is there any possibility that the Government might look to provide bespoke funding to enable local authorities to recruit and retain planners so that they can build the houses that are necessary, particularly for young working people, and that they can take forward very important regeneration projects in their local areas?
I thank the noble Lord for his kind comments. I do understand that a few issues arose in recent years, but an awful lot of money seemed to be wasted during Covid that might have been better spent delivering local services. On funding for planning, we announced alongside the NPPF announcement that additional funding is available to support local authorities’ capacity for planners. We recognise that, with an absolutely key mission on growth, the planning capacity in local authorities needs to be strengthened. Our colleagues in the Department for Education are working on skills and repurposing the apprenticeship levy into a skills and growth levy, and there is some direct funding support for local authorities. We hope that will attract around 300 new planners. I know you cannot go and pick them off trees, but that will help to support the planning that will need to be done to support the growth we need in our country.
(3 years, 4 months ago)
Lords ChamberThe noble Baroness is making a very good point, but she will no doubt agree with me that sometimes things go wrong— for instance in the recent experiences in Slough and Thurrock —with inappropriate spending or error. In the absence of the Audit Commission, which I remind noble Lords on the Liberal Democrat Benches was abolished under the coalition Government, surely there must be some sanction at central government for inappropriate expenditure. It may be just incompetence, and not even at a criminal level. In the absence of an equivalent to the National Audit Office for local government, there must be ways for Ministers to exercise discretion on financial issues in local government on behalf of taxpayers.
I do not disagree that audit is required. We debated that earlier on the Bill. The authorities mentioned are Conservative authorities, as in Northampton, where my good friends in Corby lost their council because of the actions of a council of another political persuasion. That is a political point, which I probably should not make here.
A proper consideration of the role of further fiscal powers, with full engagement of local government— I am not suggesting that this is done to us because it would go against all the principles that we are talking about—could provide the basis for an empowered, innovative and dynamic shift for CCAs and their constituent members, sitting alongside the completion of the fair funding review, which has been outstanding for years now and which we have discussed previously.