(1 day, 23 hours ago)
Grand CommitteeMy Lords, I would like briefly to contribute in the hope that I can be helpful to the Minister at this point. There is a list of areas of competence in Clause 2. The noble Lord, Lord Jamieson, told us that this was a probing amendment. By implication, I think that that means some thought can now go into the list of areas of competence.
I just want to add one new thing. I was a board member of a regional development agency, One North East, for a number of years. There is a difference between the list of areas of competence that we had and this list. Let me explain. We had a rural role and a role in culture and sport, particularly capital investment. We had a clear role in tourism and in energy. We had no role in public safety, health, well-being and public service reforms, or community engagement and empowerment, and we did not directly address issues of poverty, although we did indirectly by the nature of what the RDA was trying to do. I wonder if the Minister might take on board all that has been said and look at those areas of competence. I hope that they are not seen to be a final list. In my view, they are not a final list but a very good basis for discussion. I hope that the Government will be willing to do that before Report.
My Lords, I thank all noble Lords for their amendments on the areas of competence and for what has been a useful and helpful discussion on the subject. Many of the amendments in the group seek to probe the list of mayoral competences and I understand why noble Lords would want to do that, but I want to be clear that the areas of competence are deliberately broad to enable a wide range of activities to fall within the scope of strategic authorities. They are intended as a framework that mayors can adapt as their local areas determine where they should place the emphasis.
Amendment 8, tabled by the noble Lord, Lord Lansley, seeks to create a distinct area of competence of “community engagement and empowerment”. It is important that all tiers of local government work to deliver for their communities, as we all know. Strategic authorities, like any other tier of government, will be empowered to engage with those who live and work in their areas. Those already in place do so effectively.
Indeed, many existing combined and combined county authorities already use their powers to engage with their communities to ensure that their work meets local needs. For example, West Yorkshire Combined Authority has an established region-wide engagement platform, known as Your Voice, to strengthen dialogue with local communities. Through this initiative, alongside wider public engagement activity, the authority is gathering views to inform decisions on how its devolved funding is allocated.
The York & North Yorkshire Combined Authority has invested £1.9 million to support community building projects across the region. Funding has been given to buildings which play an important role for communities, such as the village halls in—I always hesitate to use the Yorkshire pronunciations, so forgive me if I get this wrong —Great Ouseburn and Kettlewell.
The areas of competence have been framed to enable a wide range of activity to fall within scope, including community engagement and empowerment. In this sense, it will be embedded within and throughout all the existing areas of competence. These competences are deliberately flexible. I take the point made by the noble Lord, Lord Lansley, about any power in the Bill, but we intend for it to be a framework; I will reflect on that point and come back to him.
The noble Lord, Lord Mawson, made a point about action and impact, as opposed to the broader framework. I refer him to the Pride in Place funding that does exactly as he was describing; it is £20 million of funding for each of 250 neighbourhoods. This is a long-term project, over 10 years, to make sure that each place is able to shape the things that are important to it. I refer the noble Lord to that important project, which shows how we are working with communities—not to them—to move forward the kinds of projects that he was talking about.
Amendment 9, tabled by the noble Baroness, Lady Bennett, seeks to create distinct areas of competence for
“reducing poverty and socio-economic inequality”,
and food security. She will not be surprised to hear that I share her objective of addressing poverty, socioeconomic inequality and food insecurity. The Government remain firmly committed to tackling these issues by addressing all the factors that underpin these challenges that we see in communities.
The areas of competence already enable strategic authorities to tackle poverty and socioeconomic inequality in a cross-cutting manner, via skills and employment support, economic development, investing in transport, tackling health inequalities and in many other ways. The same is true for food security. In Greater Manchester, the combined authority is taking concerted action to tackle food inequality and poverty through initiatives such as No Child Should Go Hungry, which has provided thousands of emergency food cards to residents. At a strategic level, mayors will take account of all the needs of their areas, and locally relevant information, such as the land use framework that colleagues in Defra are producing.
Amendment 3, tabled by the noble Lord, Lord Ravensdale, seeks to add energy to the existing transport and local infrastructure area of competence. The noble Lord and I have spoken about this Government’s energy plans and I have written to him today. With his permission, in a moment, I will quote briefly from that letter because I think it would be helpful for noble Lords to have a bit more detail. On the role that we intend strategic authorities to play in this space, while I am sympathetic to the noble Lord’s amendment, I do not believe at this stage it is necessary. As noble Lords will know, the themes of the areas of competence are, as I have said, deliberately broad in scope and include thematic policy areas such as local infrastructure and environment and climate change. Energy cuts across all these, as well as other areas of competence. Importantly, strategic authorities can, and will be able to, address their local communities’ energy needs through the areas of competence. Indeed, many are already doing so.
On future strategies, the Government are undertaking a number of pieces of work reviewing the benefits of local energy planning for meeting national goals, several of which will lay out our approach for local renewable energy. The forthcoming local power plan will be owned jointly by Great British Energy and the Department for Energy Security and Net Zero. That will outline our shared vision for the local and community energy sector. We are continuing to develop the local power plan with Great British Energy and updates will be provided soon. Similarly, the warm homes plan will cover housing retrofit and heat network zoning and will be published shortly. There will be more details in that plan on heat network zoning. The secondary legislation, rather than this Bill, will provide the necessary framework to empower local authorities to act as heat network zone co-ordinators under the Energy Act 2023. That is just a bit more information on those areas. For example, the Liverpool City Region is working to establish Mersey Tidal Power, with the aim of delivering Europe’s largest tidal power project by 2030, capable of powering up to 1 million homes. In the west of England, the combined authority has implemented its local energy scheme, which is funding community-led renewable projects.
Amendment 4, tabled by the noble Lord, Lord Freyberg, seeks to add tourism to the existing economic development and regeneration areas of competence. The Bill already makes provision for strategic authorities to support the tourism industry. Clause 41 extends local powers to strategic authorities to encourage and promote visitors. Combined authorities and combined county authorities can use these powers to promote tourism and host events attracting visitors to boost local businesses such as hotels and shops. Many existing combined authorities and county authorities are already making use of these powers. For instance, the West Midlands Combined Authority is investing £120 million into an economy, trade and tourism programme, supporting over 250 businesses and 10 major sporting and cultural events. This example demonstrates that prescribing an extensive list of industries and sectors within the area of competence is not required. The areas of competence will empower mayors and strategic authorities to determine their own priorities in the application of their powers, and many are already doing so to address local issues such as tourism.
Amendment 2, tabled by the noble Baroness, Lady Scott, would remove transport and local infra- structure from the areas of competence for strategic authorities. I note from the noble Baroness’s explanatory statement that her intention in tabling this amendment is to probe how the power to borrow will work for mayoral strategic authorities. I think the noble Lord, Lord Jamieson, was probing this during his speech. All existing mayoral strategic authorities already have the power to borrow for all their functions, including transport. Clause 12 will confer the power to all future mayoral strategic authorities. Strategic authorities have full discretion over the exercise of borrowing powers and allocation of resources, subject to obtaining the requisite support from their constituent members via the budget voting process.
Like the rest of local government, strategic authorities must also operate within the prudential framework— I think all noble Lords here would expect that. This framework comprises statutory duties and codes intended to ensure that all borrowing and investment is prudent, affordable and sustainable. It provides robust mechanisms for oversight and accountability. In practice, this amendment would remove transport and local infrastructure from the areas of competence for strategic authorities. That is clearly contrary to the aims of the Bill.
We have set out clearly in the Bill—with the competences, for example—where we see strategic responsibilities lying and where local council leaders will be responsible for the services they deliver. As we go through the local government reorganisation process, we will have unitary authorities across the country delivering those services. What we do not want to do is muddy the waters by saying that there will be some areas that have different strategic powers from others. That is why we have set out the competences in the Bill.
It is not about what you deliver at local level because the strategic competences allow that to be flexible across different geographies and demographics. It is about ensuring that the strategic level is delivered by the combined authority and local services are delivered by the local authority. I do not think it would be helpful to muddy those waters by having the picture be different across the country.
My Lords, the Minister asked whether I was satisfied by her responses; I am actually more worried now than when I started. I agree entirely with what the noble Lord, Lord Jamieson, has just said.
I will give an example of where the Government are heading for great difficulty. Let us take the area of competence for transport and local infrastructure. “Local” is not defined—I think my noble friend Lord Wallace of Saltaire will come back on the issue of definition at a later stage. I understand that strategic transport and major capital infrastructure, such as on a new railway line, is a strategic matter for a strategic authority, but I hope that transport and local infrastructure does not mean that every traffic-calming scheme in every residential road of a local authority has to be signed off by the mayor. I am keen for the Minister to be clear about what these terms mean because the Bill is not clear.
I jokingly referred to the powers I am proposing being revolutionary. They are very different, but they are an attempt to get everyone to understand that if you have a devolution Bill and think it is about devolution, it has to be devolution from the strategic authority where the mayor and the authority think their powers could go to local government. That debate has to be had. It is not, as the Minister said, about ending up with a patchwork of powers. Of course there will be differences in local areas. That is a positive, not a negative thing. Let us not call it a “patchwork” because that means that Whitehall and Ministers want to run 56 million people in England. In the end, having a standard system that everybody must fit into will not work. It will be a cause of great difficulty.
I am encouraged by some of the things that the noble Baroness, Lady Scott, said—that there are correct things in it, there are principles and it is well intended. The test of successful devolution is a willingness to devolve power from yourself rather than demanding it to yourself. The test is for the strategic authority to say, “We think the powers we have in this area could well be carried out by a local authority, so let’s talk about it”, and say to the local authority, “You in turn must decide whether you need to undertake these powers directly or can devolve them to others, including town and parish councils”. I do not believe that the Government will ever succeed with community empowerment plans unless they empower communities. This Bill is not doing that.
Paragraph 16 of the Explanatory Notes to the Bill says:
“The Bill will introduce a requirement on all local authorities in England to establish effective neighbourhood governance, to move decision making closer to residents, empowering ward councillors to address the issues most important to their communities at a local level”.
What it does not say is that that would not include the planning process or a whole set of services that local people might want to have some say in. The Government cannot make statements like that without then delivering the means to increase community empowerment. I will not give up on my Amendment 13. True devolutionists must follow their desire to give power to others to use in a country of 56 million people. For the moment, I beg leave to withdraw the amendment.
My Lords, I am very happy with the amendments spoken to so far, so I will not repeat what has been said. Amendment 28 in the name of my noble friend Lady Pinnock relates to whether the Secretary of State determines local boundaries and whether decisions on local authority boundaries within a combined authority area are a matter for central or local government. In the spirit of this Bill, which is about devolution, I can see no reason why central government has to be involved. It ought to be a matter for local councils to decide on. Perhaps the Minister might explain why my noble friend Lady Pinnock has got this wrong; it seems to me that she has got this right.
There were a lot of amendments in this group, but we whipped through it very quickly, so I thank noble Lords. The amendments in the group tabled by the noble Baroness, Lady Scott, seek collectively to remove the Secretary of State’s new powers to direct the creation or expansion of a combined authority or combined county authority or to provide for a mayor. The Government have been clear that devolution can deliver growth, unlock investment and deliver the change the public want to see, led by local leaders who know their areas best. That is why we want to see more parts of England benefit from devolution.
As I have said, I have been involved in local government for a very long time. We have tinkered around with this issue for a very long time indeed, and it is time we provided some certainty and stability. Our engagement to date with councils across England has demonstrated the appetite for devolution within local government. I have spoken to many of them and visited many areas that do not currently have those devolution arrangements.
Devolution, of course, should be locally led wherever possible, and the Government remain committed to working in partnership with local government to deliver that vision. At the same time, we have been clear that we cannot accept proposals that would block other areas accessing devolution—that would be very difficult for those areas—or risk creating devolution islands. The backstop mechanism in the Bill will allow the Government to establish strategic authorities in areas where local leaders have not been able to agree on how to access devolved powers. That will ensure that all of England can benefit from devolution and nowhere is left behind.
(4 months ago)
Lords ChamberMy Lords, having listened very carefully to the debate so far, I think the next best step would be to hear from the Minister, but I want to express some support for Amendment 362 in the name of the noble Lord, Lord Lansley, and Amendment 195A in the name of the noble Baroness, Lady Scott. I hope the Minister will provide clarity on those when she replies.
On 3 April, guidance was issued by the Government to clarify the legislation, scrutiny and governance of mayoral development corporations in combined authorities and combined county authorities. I am pleased that steps have been taken to incorporate the recommendations of the Tees Valley Review, published over 18 months ago, to clarify the regulations for the Tees Valley Combined Authority and the South Tees Development Corporation. It is important to ensure that there is absolute clarity about oversight, reserved matters, consent and stranded liabilities, and I welcome the Government’s firm intention to do so.
However, it has puzzled me that the words “risk” and “risk management” do not appear in the guidance published in April. There is also nothing about capacity building; that point was raised a moment ago by the noble Baroness, Lady Scott. It is very important that development corporations have the capacity to fulfil the expectations of the Government.
There is an issue, which we may come to in the next group of amendments, about where the development corporations will get their income from. I look forward to that discussion. I am concerned about how the mayoral development corporations will be structured to ensure that full risk analysis takes place on the decision-making for what will be major capital infrastructure investment. Overview and scrutiny are overview and scrutiny: scrutiny is scrutiny of a decision, and overview is overview of how decisions are being made. Risk and risk analysis come at the start of a decision to invest money, so this is not just about overview and scrutiny; it is about preventing risky investments.
When the Minister replies, will she explain who is going to pick up the bill if risk is not properly considered at the right point in the decision-making process? At the moment, I suspect that the bill will be carried by council tax payers in the area concerned and I would like that point to be clarified, because I do not think that a system based on the council tax payer being the body of last resort to make up a loss would be appropriate. I very much hope to hear the Minister’s views on those matters.
My Lords, I will start with the notice from the noble Baroness, Lady Scott, opposing Clause 93 standing part. I welcome the opportunity to explain the intentions behind this clause. Clause 93 clarifies and extends areas for development and the remit of development corporation models. It includes changes to legislation that would extend the remit of mayoral development corporations, so that they can deliver regeneration and new town development rather than just regeneration. It also allows that separate parcels of land can be designated as one new town area, overseen by one new town development corporation.
The current framework is outdated and not fit for purpose. Each development corporation model was developed to address a specific circumstance at the time of its introduction. This poses a significant risk to the effective delivery of the development corporations. For example, mayoral development corporations can be used only for regeneration projects, as the model was developed initially for London but then widened out to areas outside London, including rural areas. The English Devolution and Community Empowerment Bill will enable strategic authorities to create more mayoral development corporations, so it is even more important to ensure that the legislation is fit for purpose.
Amendment 195A aims to remove the power permitting new town development corporations
“to do anything necessary or expedient for the purposes or incidental purposes of the new town”.
I reassure the noble Baroness that this is not a new addition to the new town development corporation framework. This provision is already written into primary legislation underpinning new town development corporations, as well as urban development corporation models. The changes to the infrastructure provision include listing specific functions and bringing them in line with mayoral development corporations, with the addition of heat pumps, which have been added to the list of infrastructure that can be delivered by all models.
As development corporations are used to respond to the specific needs of developments or regeneration schemes, it is important that the legislation offers this level of flexibility so that they can be tailored accordingly. We all want to see large-scale developments and infrastructure projects that will support housing and economic growth, but they need to be supported by the right infrastructure without compromising existing provisions. It would be a step backwards if we were to take the power away from new town development corporations and instead provide only a list of infrastructure, as some developments may require new technologies. Decisions to establish development corporations and the powers each will have will be made via regulations. Their oversight will be carefully designed and subject to statutory consultation.
Amendments 351ZA and 362, tabled by the noble Lord, Lord Lansley, would standardise and extend powers in respect of mayoral development corporations to mayors of all strategic authorities outside London. I welcome his proposal. It is vital that we empower local leaders to transform underused sites to create thriving communities tailored to local needs. For this purpose, mayoral development corporations should be part of every mayor’s toolkit. However, we believe these amendments are unnecessary. The changes the noble Lord is proposing are already being made through the English Devolution and Community Empowerment Bill introduced on 10 July 2025. Given its scope, that Bill is the most appropriate vehicle for these changes. I take the noble Lord’s point about delay, but I am not under the impression that there is going to be any grass growing under the feet of the English Devolution and Community Empowerment Bill. I think that is going to get moved on at pace and I hope that it will be appropriate for the changes that we are talking about.
Can the Minister explain who the funder of last resort is when a loss is delivered by a mayoral development corporation? Is it the council tax payer for the geographical area of the development corporation, the combined authority or the Government? To put it another way, who makes up, pays for, a loss if a development corporation makes one?
Of course, we all hope there will not be a loss, but we must always have provision in place for that. I know that there is ongoing discussion with Sir Michael Lyons and others in the taskforce about how the financial details and programme work, so it is probably best if I reply to noble Lords in writing on that issue.
In relation to the points about capacity, which were very well made, again, discussions are going on with Sir Michael Lyons about how we make all this happen. We have already allocated £46 million to planning, but we will continue to have those discussions with the taskforce about what the delivery mechanisms are to be. That said, I hope that the noble Lord has had some reassurance and that he will agree not to press his amendments.
(6 months ago)
Lords ChamberMy Lords, I thank the noble Lord, Lord Shipley, for his amendments on licensing schemes. On Amendment 107, we share the noble Lord’s desire to improve housing conditions, and we have always been clear that all renters deserve safe, secure and good-quality homes. That is why we are introducing a decent homes standard and Awaab’s law to drive reform and improve conditions across the sector. I acknowledge the work that the noble Baroness, Lady Scott, did on Awaab’s law when we were on different sides of the House. As discussed in Committee, we think this is the right approach so that all renters and local authorities are able to challenge and address poor-quality homes, not just those in selective licensing areas.
On Amendment 108, we believe that licensing schemes are crucial in helping local authorities tackle specific issues and improve standards. We also think that local authorities are best placed to make decisions regarding the use of these enforcement tools in their local areas. That is why, at the end of last year, we removed the requirement to obtain Secretary of State approval to introduce larger selective licensing schemes. However, we know that licensing schemes also place additional responsibilities on landlords. Local authorities must therefore keep schemes under review so that they remain proportionate and targeted at delivering the intended outcomes.
As discussed in Committee, a maximum duration of five years for schemes achieves the right balance. It gives local authorities time to assess the effectiveness of schemes while providing landlords with assurance that they will not be subject to increased regulation for extended periods. Where issues in the private rented sector persist after a scheme has ended, a local authority may introduce a new scheme to take further action, provided that the statutory criteria are still met. I therefore ask the noble Lord, Lord Shipley, to withdraw his amendment.
My Lords, I am grateful to the Minister and the noble Baroness, Lady Scott of Bybrook, for their comments. We clearly have a difference of opinion about the importance of selective licensing and the future operation of the decent homes standard. The Government have accepted the importance of selective licensing schemes because, in December, they removed the requirement for Secretary of State approval, as the Minister just said.
I am reluctant to press Amendments 107 and 108 to a Division because, clearly, the House will vote against them, and I think that would not be helpful in the current situation. Both Front Benches of the two largest parties in this Chamber have indicated their opposition to them, so any Division that I moved would be lost.
It is important for me to withdraw the amendment because two pieces of work are going on in the House of Commons on this matter. One is the consultation on the decent homes standard that the Government are undertaking, which the Minister referred to a moment ago. Also, the Housing, Communities and Local Government Committee is taking evidence on housing conditions generally in England. It will be important for the government consultation and the Housing, Communities and Local Government Committee to take the evidence from our debate on these amendments to see the concerns that I and professional bodies have been expressing about the importance of selective licensing in driving up housing standards in the private rented sector, as well as in the public sector more generally.
In the hope that there will be sufficient good will around the Chamber to allow this debate to be referred to the bodies now undertaking consultation, I beg leave to withdraw Amendment 107.
(6 months, 2 weeks ago)
Lords ChamberMy Lords, I am once again grateful to the noble Lord, Lord Shipley, for raising these points, as well as to Citizens Advice for discussing them directly with our department, and to the noble Baroness, Lady Scott, for her comments. Although I have great sympathy with the intention of Amendments 68 to 71, Clause 27 already ensures that deposits will be protected at the time of the possession hearing, which we think is a more proportionate approach.
Landlords have until the court hearing to comply with deposit protection rules. This ensures that landlords can still gain possession when it is reasonable, while ensuring that the tenant’s deposit is protected before the tenancy ends. I also note that this approach is far stronger than current restrictions, which prevent only the use of Section 21, and not Section 8, if the deposit is not protected.
However, I believe the noble Lord’s approach goes too far. Most notably, if a landlord had failed to protect a deposit within 30 days of receiving it, they would be permanently prevented from serving notice for possession on any ground except anti-social behaviour. Let me be clear: such a landlord should have complied with the law—of course they should—but there are other, more proportionate, mechanisms available to enforce that compliance, including an ability for a court to award tenants up to three times the amount of the deposit if it was not protected properly.
In conclusion, the Bill balances tenant protection with the need for legitimate possession cases to proceed. I therefore ask the noble Lord to withdraw his amendment.
My Lords, I am grateful for the Minister’s reply but it has extended the doubts that I have had about this, because it is still not clear to me why the Bill is weakening the current safeguards.
It is not clear why a valid defence cannot be assured for a tenant who has to go to court when the court case may not be necessary—in other words, they do not know whether the landlord has managed a tenancy deposit scheme correctly on their behalf. Citizens Advice has produced a strong case here, and it is not clear why the current safeguards are not being continued. I am advised that the tenancy deposit protection scheme will be significantly weakened if it remains the case in the Bill that landlords will not need to protect tenants’ deposits prior to serving notice. That is a departure from the current position. If that is required to happen in future, it will simply encourage wasted court time.
I shall withdraw the amendment and not move the other three, but I hope that the Minister and the Government will look very carefully at this issue because otherwise, I fear that tenants will not be properly protected by the tenancy deposit scheme. I beg leave to withdraw the amendment.
(8 months, 1 week ago)
Lords ChamberI thank the noble Lords, Lord Shipley and Lord Young of Cookham, for their amendments relating to selective licensing, and I particularly thank the noble Lord, Lord Shipley, for moving the amendments from the noble Lord, Lord Young, in his absence. I thank the noble Lord, Lord Jamieson, for his comments.
Amendment 253, moved by the noble Lord, Lord Shipley, seeks to allow local authorities to use selective licence conditions to improve housing conditions. We acknowledge and share the noble Lord’s intentions to improve housing conditions. We believe that all renters deserve to live in safe, secure and quality homes. With the introduction of a decent homes standard and the application of Awaab’s law through this Bill, the Government will reform and improve conditions across the sector. We think it is important that these measures benefit all renters and local authorities in tackling poor-quality homes, regardless of whether they are in selective licensing areas.
Amendment 254, also in the name of the noble Lord, Lord Shipley, seeks to allow local authorities to increase the maximum duration of selective and additional HMO licensing schemes from five to 10 years. As many noble Lords will be aware, the Government recently removed the requirement to obtain Secretary of State approval to introduce larger selective licensing schemes. We think it is right that local authorities have greater autonomy to implement schemes provided that they meet the statutory criteria. However, we also recognise licensing schemes do, as noble Lords have said, place additional burdens on landlords. It is therefore important that local authorities monitor any schemes to make sure that they are proportionate and are continuing to achieve their aims. A maximum scheme duration of five years strikes the right balance in giving local authorities time to make this assessment, while also ensuring that landlords are not by default subject to increased regulation for prolonged periods. I therefore ask the noble Lord, Lord Shipley, to withdraw his amendments.
I turn now to the amendments in the name of the noble Lord, Lord Young of Cookham. Amendment 267 seeks to streamline the selective licensing application process and cap the total fee that local authorities can charge for licensing similar properties in a block under single ownership. The Government recognise that selective licensing imposes a burden on landlords. The financial and administrative cost can be particularly significant for large portfolio landlords, such as those operating in the build-to-rent sector.
Local authorities already have discretion to streamline licence applications and fees for landlords whose properties meet the requirements for block licences. Where appropriate and consistent with the aims of their licensing schemes, we would encourage local authorities to make greater use of block licences. This reduces the burden on large portfolio landlords and can better reflect efficiencies for local authorities in licensing such properties, for example, the ability to inspect multiple properties in a block during a single visit.
It is right that licensing schemes continue to be determined locally and that local authorities have the flexibility to decide the best application process and fees to support delivery of schemes. Placing a cap on application fees could cause issues due to regional differences in costs between local authorities and potentially undermine the success of some schemes.
Amendment 268 seeks to allow the transfer of selective licences in circumstances where the licence needs to be passed to an employee of the same corporate body. As noble Lords will be aware, under Section 91 of the Housing Act 2004, licences currently cannot be transferred, as the noble Lord, Lord Shipley, explained. A new licence application is needed where a change to a licence-holder is required after a licence has been issued. A crucial part of the application process is ensuring compliance with the fit and proper person test. This is designed to ensure that prospective licence-holders do not pose a risk to the welfare of tenants. I am sure it is not the intention of the noble Lord, Lord Young, but accepting this amendment might mean circumventing those important checks for any new licence-holders within the same organisation.
I accept that it may seem excessive for a local authority to require a full licence application to be submitted where a licence needs to be transferred due to changes in staff in cases where there are no other changes to the management or use of the property. We would encourage local authorities to take a proportionate approach in these cases, for example, by requiring only details of the new licence-holder to be provided in the application and charging a fee that covers only the essential parts of the application process, for example, the fit and proper person test.
Amendment 269 seeks to allow a local authority to grant a temporary exemption from selective licensing to an applicant where it has determined that it requires more time to process the relevant licence application. I recognise the issues this amendment attempts to address. Where a local authority has received multiple licence applications from the same applicant, it needs sufficient time to review them. As a result, applicants may receive a decision after the period they deem reasonable. I totally agree with the noble Lord, Lord Jamieson, about digitisation of this process and making the whole process more efficient.
Local authorities are already required to determine all licence applications within a reasonable time. We would encourage them to set out clearly their expected processing timelines when inviting applications. When planning a licensing scheme, local authorities should also carefully consider the level of resources needed to process applications to avoid large backlogs being created.
However, regardless of any challenges a local authority may face in processing licence applications, landlords with licensable properties should apply for licences. This ensures that they are protected from enforcement action being taken against them for having control of or managing an unlicensed property. With this in mind, I ask the noble Lord, Lord Young, not to press his amendments.
My Lords, I thank the Minister for her very full explanation. I think the best course of action would be to review in Hansard what she has said and look at ways in which we might progress some of these issues by the time we reach Report in a few weeks’ time. For the moment, I beg leave to withdraw Amendment 253.
(8 months, 1 week ago)
Lords ChamberMy Lords, I thank the noble Lord, Lord Shipley, for his amendments, which relate to tenants ending an assured tenancy and joint tenancies. In doing so, I thank him for raising the very important issues brought to him by Citizens Advice, which has been in touch with the department as well. I thank Citizens Advice and all the other stakeholders for engaging with our officials on these issues. I thank the noble Baronesses, Lady Coffey and Lady Scott, for their comments too.
Where a joint tenant has served a notice to quit, Amendment 171 would require any agreement to a notice period of less than two months to be with not just the landlord, as the Bill requires, but with all other joint tenants as well. Although I genuinely think there is merit to this approach, I am cognisant of the potential impacts on tenants who do not wish to inform their co-tenants that they are leaving. There may be a number of reasons why that might be the case. We would need to give very careful consideration to any change in this direction, to make sure we understand any impacts that it might have. We are currently working through that.
Amendment 172 would allow a tenant to provide only one month’s notice to end an assured tenancy if the landlord had already provided a notice of their intention to seek possession using ground 1 or ground 1A. The Government understand that tenants may find new properties to let within the four-month notice period the landlord has given them, and that market pressures would mean that, ideally, they could go when they need to. However, it is right and fair that tenants provide landlords with the usual two months’ notice so that landlords have sufficient notice, as they may need to change or alter their plans as a result. We think that this strikes a fair balance. Tenants will benefit from slightly longer notice periods, and it is right that landlords can plan for the ending of the tenancy too. Nothing prevents the agreement of a shorter notice period. We expect that, in many cases, landlords will gladly facilitate a quicker end to the tenancy to allow them to sell or move in more quickly.
The noble Baroness, Lady Scott, raised a number of questions around subletting. I will come back to her on those points.
Amendment 174 would require joint tenants to notify each other when serving a notice to quit an assured tenancy, and landlords to inform all joint tenants that such a notice has been served and to provide a copy of the notice. The Bill does not require joint tenants to inform each other when ending an assured tenancy. I understand the point that there is an inherent risk that tenants may not find out until late in the notice period that their tenancy is ending. However, at the moment, the Government are concerned about the potential impact—for example, on domestic abuse victims—of being required to inform the perpetrator that they are ending a tenancy, possibly in order to flee. On the balance of risks, we believe the needs of domestic abuse victims must be allowed to prevail, although I recognise it is a difficult decision and we are giving it further consideration.
Finally, Amendment 175 would require all joint tenants to agree to withdrawing a notice to quit. This amendment is unnecessary, as it has already been established in law that all joint tenants must agree to positively sustain the tenancy. It is very unlikely that a court would determine that a single tenant could unilaterally withdraw a notice to quit, because there is not the positive consent of all tenants. For those reasons, I ask the noble Lord not to press his amendments.
My Lords, these are essentially probing amendments and I am glad that the Minister and her department have had discussions with Citizens Advice. I understand some of the points that she has made. To take up the point mentioned by the noble Baroness, Lady Coffey, I think the aim is to avoid unintended consequences in a new Bill such as this. So it is important that all these issues are thought through and examined so that the best answer can be found. I hope it might be possible, between now and Report, for some of the issues that the Minister has raised to be looked at in detail. I shall look carefully at her response in Hansard to see whether there are ways in which some of the problems that have been identified, and some of the responses with perhaps unintended consequences that the Minister has identified, might find a solution. With that, I beg leave to withdraw the amendment.
(8 months, 4 weeks ago)
Lords ChamberThe costs are included in the issues that Birmingham is facing overall. We are working with the council on options to address those costs. The commissioners in Birmingham have been working very hard to do that. The additional £131 million funding we put into Birmingham this year will help to address some of the deficit it has faced recently. In fact, we included in our funding for Birmingham a new one-off recovery grant of £39.3 million, which shows our commitment to correcting unfairness in the funding system. We also put in place an in-principle agreement to exceptional financial support totalling £1.24 billion across the country. We are helping Birmingham with its financial issues, but they are of long standing. The overall funding formula we have been looking at as we go into the spending review across the country does not deliver funding in a way that delivers the best funding settlement to where the most need is. That is something we will have to address going forward.
My Lords, concern has been expressed about this situation arising again following local government reorganisation. When we discussed this matter in the Chamber previously, I suggested that one way of preventing it happening again was to revive the Audit Commission, which has not existed now for just over 10 years. I think it would help, and I am not sure whether Ministers have taken on board seriously the suggestion that an improved audit system is necessary in local government.
The noble Lord will know, because I have stated this before in this Chamber, how much I agree with him about the problems that not having an effective audit system in place in local government has caused. We need to reinstate a sound audit that the public can rely on to know that their money is being spent locally in a way that is accountable and transparent; that is an important part of the process. At the moment we are at the White Paper stage of bringing forward the English devolution Bill, and when we get the Bill it will contain information about how the audit system is going to be progressed.
(9 months, 2 weeks ago)
Lords ChamberMy Lords, I certainly agree that the people of Birmingham are at the heart of this issue. They are first in our thoughts. I agree that urgent action is necessary. That is why I spoke with the leader of Birmingham City Council today to see whether there was anything further we could do to support them. He believes that the way to resolve this is to get around the table as quickly as possible, and that is just what he aims to do.
On the noble Lord’s comments on how the situation arose in the first place, there had been serious financial and governance failings. Birmingham City Council issued a Section 114 notice, which effectively says that the council does not have control of its finances, in September 2023. It did so due to accepting a £760 million liability that arose from those equal pay claims, along with in-year budget deficits that arose from the Oracle IT system. It has been working through a very intense programme of activity to put those issues right. It has not been easy for the leadership of Birmingham City Council; nobody goes into local government to cut services or make things less easy for their residents. It has been doing that with the commissioners, who are working very well with the council and have produced a frank and honest report. There is a copy in the Library if any noble Lord wants to look at it. I agree that preserving public health is vital. That is why the director of public health in Birmingham and the UK Health Security Agency regularly review what is going on there, to make sure that everything is done that can be to ensure that the public health situation does not deteriorate any further.
My Lords, the Minister has referred to serious financial failings in Birmingham, and the Statement admits that:
“Practices in the waste service have been the source of one of the largest equal pay crises in modern UK history, resulting in costs of over £1 billion to the residents of Birmingham. This situation simply cannot continue”.
Does the Minister agree that this situation might not have arisen had it not been for the abolition, just over a decade ago, of the Audit Commission, which had a role in delivering best value as well as formal audit responsibilities? Taking Birmingham as an example, might the Government consider whether that decision was wise and whether something needs to be done to improve long-term audit of local authorities in England?
(11 months, 2 weeks ago)
Lords ChamberIf there were to be a revaluation, there would be winners and losers. This is one of those issues where whatever we did would cause further problems in the system. It is a widely understood tax and there are high levels of collection. However, the Government are taking part in the fair funding review—we have issued a consultation on that—to make sure we level up the playing field for local authority funding, so that areas which need the money most get the most money.
My Lords, council tax is a regressive tax and for the past 10 years, Governments have been loading part of the increasing cost of adult social care on to council tax. Poorer households are therefore having to pay more in council tax than they otherwise would. The Government are going to spend the next three years coming up with a plan for adult social care. Is that delay fair on poorer households?
(1 year, 1 month ago)
Lords ChamberI am grateful to the noble Lord, Lord Lansley, for that question, because in a housing crisis where we have so many people in need of affordable homes, it has been such a shame that Section 106 homes that could have been funded were unable to be picked up because of the lack of capacity within affordable housing providers.
The Government have been very aware of the problems affecting the sale of Section 106 affordable housing. Alongside the National Planning Policy Framework, Homes England also launched a new clearing service to help unblock the delivery of these homes. This is a great role for Homes England to fulfil. The Government are now calling on all developers with uncontracted Section 106 affordable homes to proactively and pragmatically engage with this new service. We hope that this will be able to unlock some of the stalled Section 106 affordable homes which we know are there, waiting for those families who are desperate for housing. I hope that this service will take things forward.
My Lords, this Statement is about building the homes we need, but it talks about housing targets, not targets for homes, particularly homes for families to live in. What is the Government’s view on office conversions, potentially of poor quality, masquerading as homes when they are not and are simply contributing to a 370,000 a year housing target? What steps will the Government take to ensure that homes are of sufficient quality to merit the term “homes”, as opposed simply to being part of the achievement of a housing target?
I thank the noble Lord for his question. We have an Oral Question on exactly the same topic tomorrow, when I am sure I will be able to give a fuller answer.
The noble Lord is quite right. As I come from a new town, I recognise the benefit of not just designing the homes but planning the areas where they are to be situated. They should, of course, be sustainable, healthy and have all the infrastructure that everybody needs. The Government are committed to taking steps to ensure that we not only build more homes but that they are high quality, well designed and sustainable. That is why we have made changes to the NPPF to make clear the importance of achieving well-designed places, and how this can be achieved holistically through local design policies, design codes and guidance. We will be pushing this forward further in the new year.
(1 year, 1 month ago)
Lords ChamberMy Lords, I am not going to apologise for the housing ambitions of this Government. We were left with a housing crisis, which we have set about tackling. The previous Government failed to do so for 14 years. We want to see young people able to achieve home ownership, to make sure all homes are safe and well maintained, and to create a new generation of social housing and new towns. We believe that everyone deserves a safe, secure, affordable home—do they not?
My Lords, the Minister talked of mayors’ strategic planning role, but who actually makes decisions on targets—the local planning authority, the mayor, the department or the Treasury?
My Lords, we have done an extensive consultation on the National Planning Policy Framework. We reintroduced government housing targets, because we want to deliver 1.5 million homes over this Parliament. We are going to do that with the aggregate of targets from local plans, so we will consult local mayors as they develop their role in strategic plan making.
(1 year, 3 months ago)
Lords ChamberMy Lords, the Question relates primarily to new social homes, but it was reported at the end of September that around 70,000 council and housing association homes are now lying empty. Can the Government say something about what is planned for those 70,000 dwellings?
My Lords, there are multiple reasons why properties may be empty, but it is important that we bring as many homes as possible into use. Councils are being given greater powers to charge additional council tax for empty properties, and I know that they will be looking very carefully at the stock of housing to make sure that it is brought into use as quickly as possible. We are also looking at things such as compulsory purchase order powers and so on. Councils already have those but it is very important that we give councils as many tools in their armoury as possible to prevent houses falling into dereliction or simply being left empty because they have been bought as investments and are not let out or used.