Non-Domestic Rating (Lists) (No. 2) Bill

Debate between Baroness Thornhill and Lord Bourne of Aberystwyth

Committee stage & Committee: 1st sitting (Hansard) & Committee: 1st sitting (Hansard): House of Lords
Thursday 4th February 2021 Grand Committee

[Baroness Thornhill (LD) [V]]

My Lords, I, too, am a vice-president of the Local Government Association.

I wish to speak in favour of Amendment 6, which stands in my name and that of my noble friend Lady Pinnock, and to support Amendment 1 in the name of the noble Lord, Lord Kennedy of Southwark.

I am very aware that this is a narrowly focused Bill and that it has had broad support and been welcomed. However, it is significant that, despite that, several Members of your Lordships’ House have taken the opportunity to table amendments. I believe that that shows the depth of concern around the whole issue of business rates. The amount of interest shown in both this tightly drawn Bill and the Government’s consultation for their ongoing business rates review shows how important it is for the review to be both bold and radical.

It is also significant that all the amendments seek to hold the Government’s feet to the fire with regard to the various ongoing impacts of the Bill, be they on sports clubs, the high street or local government finance—hence, Amendment 6 stipulates a timeframe of six months. This is due to the fact that the instability and uncertainty provoked by the impact of Covid-19 are exacerbating issues that were already of significant concern—and we are not out of the woods yet.

Indeed, the amendment seeks to continue to draw your Lordships’ attention to the challenging situation regarding local council finances. The latest figures from the Local Government Association show that the financial impact of Covid-19 on local authorities is an estimated £9.7 billion for 2020-21, with a further £2.8 billion of lost income from council tax and business rates. However, it must be noted that these figures were reported before the lockdown and the spread of the new strain was known. This is a significantly different set of circumstances from when the 2020-21 funding package was last evaluated, and is part of the reason for continuing concern around council finances. I am sure it is appreciated by all noble Lords just how important business rates are to the individual finances of a local authority.

One reason for the amendment is to highlight the volatility of the tax base, which is so unpredictable at present. For example, the loss of office space to residential—a topic much discussed with the Minister in this House—is a trend that is likely to continue with inevitable loss of revenue. The Valuation Office Agency is currently negotiating appeals and challenges for offices, airports and factories under a material change of circumstances appeal, due to Covid-19. A rebate of up to 25% was mooted. The reduction in income could be substantial. If a rebate were forthcoming, would subsequent losses be repaid to local government in line with the recently announced tax income guarantee? Some 75% of losses will be guaranteed for 2020-21, but nothing has been said yet about 2021-22. Of course, local government must make up the other 25%.

The amount of money that councils have had to put aside for appeals is also significant, hence local government concerns around cutting down the window of time to appeal and getting the number of appeals reduced. The more certainty that we can add to the processes the better. To date, councils have had to divert £3 billion from services to appeals. A significant amount of money is also tied up in irrecoverable losses for both business rates and council tax. With debt recovery and enforcement activities understandably limited due to the pandemic, and with limits on activities and pressures on court time, councils’ ability to recover debts and secure income as they usually would, will be restricted. These are not usual times, and more businesses are likely to fail.

I use these points to illustrate one purpose of the amendment and the volatility of this important tax base. There is much instability in the system at present, which is being masked by the current, much-needed and much-valued reliefs offered to businesses from the Government. This could change significantly when the reliefs end; it could impact on local authority incomes, but we do not know when this will be. If the amendment is not accepted, could the Government at least agree to look closely at the impact once all reliefs have been suspended? This could provide vital evidence on which sectors are most impacted as well as on local councils’ finances.

Regarding Amendment 1, it was noted by several noble Lords at Second Reading that the VOA has been formally criticised as being cumbersome and difficult to deal with, and its valuations opaque and inconsistent. This is why I endorse what has been said by the noble Lord, Lord Kennedy of Southwark, and support his amendment and additional amendments tabled by my noble friends. In short, the amendment asks the Government how the pandemic that happening now will affect the revaluation in 2023, based on values at April 2021, which will not be looked at again until 2028.

[Lord Bourne of Aberystwyth (Con) [V]]

My Lords, it is a pleasure to follow the noble Baroness, Lady Thornhill, who certainly speaks with authority in this area, not least from her time as Mayor of Watford. I speak to the first group of amendments and, as I indicated at Second Reading, I strongly support this Bill. It is welcome, it is needed, it is positive, and I hope that it passes unadorned. I thank the Association of Convenience Stores for its briefing on this subject. It too strongly welcomes this legislation.

The effect of moving the business rate revaluation to 1 April 2023 will mean, as has been noted, that valuations will be fixed as at 1 April 2021. This will prevent the base being on a very high value, or on a relatively high value, as at 2019. This Bill will, in short, ensure that the base that is used reflects the impact of the pandemic. That is welcome. It will also provide certainty to non-domestic rate payers. This is very welcome to a hard-pressed sector. However, I have some questions for my noble friend the Minister. While I am very much in favour of passing this Bill, I would welcome some further reassurance from my noble friend regarding what discussions there have been with the Valuation Office Agency and local authorities about timescales and resources.

Town and Country Planning (Fees for Applications, Deemed Applications, Requests and Site Visits) (England) (Amendment) Regulations 2019

Debate between Baroness Thornhill and Lord Bourne of Aberystwyth

Monday 15th July 2019 Grand Committee

[The Parliamentary Under-Secretary of State, Ministry of Housing, Communities and Local Government and Wales Office (Lord Bourne of Aberystwyth) (Con)]

My Lords, I beg to move that these regulations, which were laid before the House on 10 June, be considered. The regulations will remove a sunset clause in the existing 2012 fees regulations, thereby ensuring that local planning authorities can continue to charge fees for planning applications. They will also introduce a fee of £96 for prior approval applications for a larger single-storey rear extension to a house. If approved by this House, this new charge will come into effect 28 days after the regulations are made. Planning fees are an important source of income which supports local authorities to have the resources and capacity to make effective planning decisions. It is therefore vital that the fee regulations remain in force.

It is vital that we have well-resourced, efficient and effective planning departments, capable of providing a planning service that local people and applicants expect. Planning application fees provide essential income to enable local authorities to deliver this service, and to consider and determine planning applications. In January 2018, we raised planning application fees by 20%. This was the first uplift since 2012 and it has increased income for the planning system and enabled local planning authorities to improve their performance. We estimate that in England, the total income raised through planning application fees is £450 million per annum. If there were no application fee, this cost would have to be funded by the taxpayer.

I turn to the details of the draft regulations. In Regulation 2, we are removing the sunset clause of 21 November 2019 contained in the existing 2012 fees regulations: namely, the Town and Country Planning (Fees for Applications, Deemed Applications, Requests and Site Visits) (England) Regulations 2012. The sunset clause and a post-implementation review condition were included in the 2012 fees regulations to ensure that the regulations were kept under review and removed from statute if they were no longer necessary. A post-implementation review was undertaken in 2017 and the outcome report laid before Parliament in December 2017. I am pleased to confirm that the review concluded that the objectives of the regulations remain appropriate in providing for the proper consideration of planning applications; therefore, the national planning fees regime should remain in place.

To ensure that the fee regulations remain in place, it is necessary to remove the 21 November sunset clause. This will ensure that applicants continue to pay a fair and consistent fee, and that local authorities will be able to continue to charge planning application fees and have the resource and capacity to make high-quality and timely planning decisions. If the sunset clause was not removed, the fees regulations would cease to have effect after 21 November of this year. This would mean that local planning authorities would no longer be able to charge any fees for planning applications.

Regulations 3(1) and 3(2) introduce a £96 fee for applications for “prior approval” for existing permitted development rights for a larger single-storey rear extension to a house. Perhaps I may summarise the position as it will be if the regulations proceed. This permitted development right allows householders to build larger single-storey rear extensions that are between 4 metres and 8 metres for detached houses, and between 3 metres and 6 metres for all other houses. Extensions smaller than this do not require prior approval and therefore do not attract a fee. Extensions that are larger than 8 metres for detached houses and 6 metres for all other houses would require planning permission in the normal way, so would attract a full planning application fee of £206.

The prior approval process means that a developer has to seek approval from the local planning authority that specified elements of the development are acceptable before work can proceed. The matters for prior approval vary depending on the type of development, and those are set out in the relevant part of the general permitted development order. A local authority cannot consider any other matters when determining a prior approval application.

The permitted development right for a larger single-storey rear extension to a house was made permanent by way of amendments to the general permitted development order on 25 May, but the associated application for prior approval required to exercise that development right attracts no fee. Now the right is permanent, it is appropriate that we should enable local planning authorities to charge and receive a fee for the work that they undertake to process and determine the applications they receive.

A £96 fee will be an additional cost to those home owners wanting to extend their homes in that way. However, that fee is the same as the fee for other applications for prior approval, as the cost to the local authority of handling these types of application is similar—for example, demolition of a building, agricultural buildings and certain solar developments. It is not fair that this cost should continue to be subsidised by the taxpayer generally. The fee is less than the £206 fee that would be required for a full planning application to carry out these works to a house were it not for the permitted development rights. It will provide local planning authorities with resources that may otherwise have been diverted from other planning applications.

In line with existing fees for planning applications to alter or extend a home, the regulations continue to provide for existing exemptions in the 2012 fee regulations, such as when an extension provides facilities or means of access for disabled persons; those would continue in just the same way.

We continue to keep the resourcing of local authority planning departments and where fees can be charged under review. Noble Lords will be aware that we announced in the Spring Statement that the accelerated planning Green Paper, to be published later this year, will look at new approaches for local authorities to meet the costs of their planning service through possible additional fees and to deliver improved performance. In the meantime, these regulations ensure that local authorities can continue to charge planning fees, including the new prior approval fee, after 21 November, thus providing them with the resources they need to consider such applications. I commend the regulations to the Grand Committee.

[Baroness Thornhill (LD)]

I thank the Minister for that concise and informative introduction. We understand the technical purpose of the SI, and particularly appreciate the need for local authorities to be able to recoup their costs. The uplift of 20% that he mentioned was certainly welcomed, although he is probably as aware as I am that there is still a gap.

Evidence shows that more and more people extend their homes rather than move, so an increasing number of prior approvals are being sought. Therefore, the ability to charge for that will be welcomed. I know from personal experience that there is a reasonable amount of work involved, the more so in larger extensions. Those usually involve conflict with the next-door neighbour, who of course has no means of stopping the development because these are permitted developments. Despite that, councillors and officers get drawn in and it all takes time. I am curious about how the nationally set cost of £96 has been arrived at, alongside other fees. Perhaps the Minister could point me in the right direction for an explanation.

As the Minister said, councils need well-resourced planning departments to deliver the Government’s ambitious housing agenda; on that we agree. There is also a national shortage of planning officers, and the cost of living in different parts of the country differs considerably and means that councils struggle to recruit or have to pay higher salaries if they are to function. Yet these fees are nationally set, so from Land’s End to John O’Groats they are the same. Are there any plans to allow a fair and transparent scheme to give councils flexibility to set appropriate fees that might reflect local circumstances?

Permitted development rights in general are being extended, the latest being, as the Minister said, in May this year, despite some serious opposition from organisations such as the Campaign to Protect Rural England, the Town and Country Planning Association and others that have genuinely well-documented concern that in the Government’s legitimate desire to increase the number of homes, which we would absolutely agree with, issues such as quality and sustainability are being totally neglected, and that the most recent liberalisation of permitted development on the high street could be a blessing or a curse depending on local circumstances. Councils’ only recourse is to apply for an Article 4 direction to remove that automatic right. I know from personal experience of how difficult it was to get an Article 4 direction placed on our premier office headquarters area that this is neither speedy nor simple. We succeeded, but it was an expensive, tough battle. Do the Government keep records of the number of councils that apply for an Article 4 direction and how many are actually granted? The Minister mentioned other reviews; are there any plans to review the impact, good or bad, of the extended permitted development rights, particularly on quality and sustainability?

Housing: Social Rent

Debate between Baroness Thornhill and Lord Bourne of Aberystwyth

Tuesday 4th June 2019 Lords Chamber

[Lord Bourne of Aberystwyth]

My Lords, I do not have that specific figure to hand, but I will write to the noble Lord with it. As I have indicated, it is important that we build more homes for social rent, and we are intent on doing that outside London. Within London, there will be provision of affordable homes at the level of social rents; that is part of the programme and we are delivering that with the Greater London Authority.

[Baroness Thornhill (LD)]

My Lords, does the Minister agree that the Government’s own social rent policy is a key component in creating a sustainable funding model for building social housing? As this policy is due for review in 2021, will the Government take this opportunity to provide renters, housing providers and investors, including councils, with some clarity, predictability and stability in this market, which at the moment they do not feel they have?

[Lord Bourne of Aberystwyth]

My Lords, I am a little surprised that the noble Baroness said that. As I indicated, we removed the HRA borrowing cap, which was a substantial barrier to provision of housing at social rent, as was acknowledged across the board. It has been widely welcomed, not least by her own party, and will make a real difference. I am not sure what additional clarity she is referring to, but I am happy to meet her separately if it is helpful.

Housing: No-fault Evictions

Debate between Baroness Thornhill and Lord Bourne of Aberystwyth

Wednesday 15th May 2019 Lords Chamber

[Baroness Thornhill]

To ask Her Majesty’s Government what is the timetable for the recently proposed consultation to end no fault evictions and how it will differ from the consultation Overcoming the barriers to longer tenancies in the private rented sector of July 2018.

[The Parliamentary Under-Secretary of State, Ministry of Housing, Communities and Local Government and Wales Office (Lord Bourne of Aberystwyth) (Con)]

My Lords, there was no widespread support for a fixed-term tenancy model. We concluded that the best way to introduce greater security was to remove Section 21 no-fault evictions, strengthen existing Section 8 eviction grounds and reform court processes. We want to collaborate with landlords and tenants to ensure that these reforms are introduced effectively. We expect to consult on our proposals over the summer.

[Baroness Thornhill (LD)]

I thank the noble Lord for that Answer but I would be grateful for more information on the timeframe for the legislation. This is indeed welcome news for the thousands of tenants who live with insecure short-term tenancies and the fear of eviction on a daily basis, but they need the change soon. Given that there will be opposition from landlords, what measures will the Government put in place to ensure that this excellent policy will be effective and immediate and not delayed or thwarted by the threat of rent hikes or the pulling of properties from the market?

[Lord Bourne of Aberystwyth]

My Lords, I thank the noble Baroness for her welcome for the proposal. There is certainly no intention to hang about with this: we want to consult, particularly on Section 8 and what the ground should be for ending tenancies. That is an important part of this. It has been widely welcomed, including by many landlord groups, in all fairness. Responsible landlords have nothing to fear from this; it is essentially about being fair to landlords and tenants.

Local Authorities: Fair Funding Review

Debate between Baroness Thornhill and Lord Bourne of Aberystwyth

Thursday 14th March 2019 Lords Chamber

[Baroness Thornhill (LD)]

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

[The Parliamentary Under-Secretary of State, Ministry of Housing, Communities and Local Government and Wales Office (Lord Bourne of Aberystwyth) (Con)]

My Lords, we are making good progress on the development of a fair funding formula that aims to provide a simple and transparent link between local authority relative needs and resources and available funding.

[Baroness Thornhill]

I thank the Minister for that Answer, but the sooner the better, please. As this is the biggest change to local government funding in a generation, does the Minister agree that factors such as levels of deprivation are highly significant drivers of spending need in a local council’s budget? Will the Minister explain why deprivation is given no prominence in the new funding formula and how areas of greatest need, with the highest levels of deprivation, will be funded in future?

[Lord Bourne of Aberystwyth]

My Lords, the noble Baroness is right about the importance of deprivation but she is wrong to say that we have not yet issued the policy. It was out for consultation until 21 February, as she will know, and we are now considering the responses. Even in that consultation we recognise the importance of deprivation in relation to, for example, adult social services, children’s social services, fire and rescue services, and public health. The noble Baroness makes a powerful point but it is recognised and the policy is still being considered.

Help to Buy: Housebuilders’ Profits

Debate between Baroness Thornhill and Lord Bourne of Aberystwyth

Wednesday 27th February 2019 Lords Chamber

[Lord Bourne of Aberystwyth]

My Lords, the noble Lord is right: the new Help to Buy scheme, which will start in April 2021 and run for two years, will be restricted to first-time buyers. At the moment, 81% of the uptake is first-time buyers. We will look carefully across the board at who is designated under that scheme as a provider, and we will have an opportunity to review that because it is a new system. We will look at it in the round to ensure that there is quality and proper consumer reference around some of the complaints that may be made. We will look also at leaseholds, to ensure that is no longer there. In 2021, all the new entrants and refreshed members will be required to sign up to that.

[Baroness Thornhill (LD)]

My Lords, it is important to state for the public record that the figures provided by my noble friend Lord Shipley are from research done by the Times. Is the Minister aware that in 2018, the largest housebuilders declared dividends amounting to £2 billion? On hearing this, does he have any sympathy for the many council planning officers who regularly do battle with those developers who are still exploiting the Government’s viability loophole to avoid paying the community infrastructure levy and Section 106 money rightly owed to councils, thus depriving communities all over the country of millions of pounds that should be spent on roads, schools and much-needed social housing? When will the loophole finally be closed for good?

[Lord Bourne of Aberystwyth]

My Lords, the figures are right, to the extent that they stack up mathematically. I accept that the figures set out by the noble Lord, Lord Shipley, featured in the press, but they are simply an exercise in looking at the profit and then dividing it by the number of houses built, without any attempt to isolate those in the Help to Buy scheme. It is very much a back-of-a-fag-packet exercise and does not bear mathematical analysis.

I hope the noble Baroness will accept that her more detailed questions have slightly blindsided me because they are not on this specific point. However, I will write to her and ensure that a copy of the letter is placed in the Library.

Planning: Permitted Development Rights

Debate between Baroness Thornhill and Lord Bourne of Aberystwyth

Wednesday 16th January 2019 Lords Chamber

[Baroness Thornhill (LD)]

My Lords, I beg leave to ask the far less exciting Question standing in my name on the Order Paper, and remind the House of my declaration of interests.

[The Parliamentary Under-Secretary of State, Ministry of Housing, Communities and Local Government and Wales Office (Lord Bourne of Aberystwyth) (Con)]

My Lords, it is very exciting in its way. We have consulted on a package of proposals to support the high street and speed up the planning system to deliver more homes. This includes new national permitted development rights—for greater diversity on the high street and to create additional homes by extending certain buildings upwards. Decisions will be taken in due course on the introduction of any new permitted development rights, taking account of the responses received to the consultation.

[Baroness Thornhill]

I thank the Minister for that Answer, but I seek an assurance that the Government will review and evaluate the impact of the current permitted development rights—which, in my experience, have resulted in poor-quality homes in inappropriate locations and a significant loss of developer contributions for local infrastructure and social and affordable housing—before there is a further expansion, with even more development going ahead without planning permission.

[Lord Bourne of Aberystwyth]

My Lords, the noble Baroness will be aware that the consultation closed on Monday. We have had more than 400 responses. One thing that people will be able to comment on is design, which I think the noble Baroness referred to tangentially. Obviously, we will want to analyse those responses before going further, but this is about ensuring that there are more homes available and seeking to liven up the high street, which is much needed.

Local Government

Debate between Baroness Thornhill and Lord Bourne of Aberystwyth

Tuesday 27th November 2018 Lords Chamber

[Lord Bourne of Aberystwyth]

My noble friend always, understandably, makes a powerful case for local authorities. He will be aware that in the Budget we added money for adult and children’s social care. As I said, the fair funding formula is not about adding to the pot—that will, I hope, be done in the spending review next year.

[Baroness Thornhill (LD)]

My Lords, we are all aware that many councils, in particular county councils, are facing serious financial problems. Within the UK, we now have devolved Administrations, combined authorities, metro mayors and city deals, all with varying tax-raising powers offering different degrees of fiscal autonomy. Does the Minister agree that the two-tier system is now the Cinderella of local government, and is it not time for the Government seriously to consider offering all councils similar powers before it is too late?

[Lord Bourne of Aberystwyth]

Where I agree with the noble Baroness is that the system is already quite complex. Although she referred to the devolved Administrations, these particular issues will not affect Wales or Scotland—not directly anyway—nor, indeed, Northern Ireland; they are just about England. She has a point about the need for simplicity, and that runs through the review. It is aiming to be simple and transparent. That is why we are taking our time on it and why we are doing it in this way. As I said, noble Lords and others will see the results of the first stage of that consultation when we publish it next month.

Private Rented Sector Licensing Schemes

Debate between Baroness Thornhill and Lord Bourne of Aberystwyth

Tuesday 16th October 2018 Lords Chamber

[Lord Bourne of Aberystwyth]

My Lords, the scheme operated in the London Borough of Newham is very effective, as many of them are. We have studied it closely and give support to it. As I said, we are certainly not against selective licensing—we very much approve of it being used. It can be used under the 20% threshold by local authorities just proceeding with it. Where there is the 20% threshold, we will scrutinise the scheme to ensure that there has been a proper process and consultation. From memory, I think that Newham is below the 20% threshold, but it is a very good scheme.

[Baroness Thornhill (LD)]

My Lords, there is now clear evidence that licensing works. It gives councils better data on where these landlords and tenants are, more funding to do the job and additional powers. What we cannot accept is that the Government have chosen to take away those powers. Why deprive councils of the tools to do the job, given that, as has been said, the problem is growing and the sector is growing?

[Lord Bourne of Aberystwyth]

My Lords, first of all, there are two systems: the mandatory licensing system, which we extended on 1 October, and the selective system. Here, I want to correct myself: Newham is above the 20% threshold, and the scheme works very well. We are seeking to work with boroughs. A review on selective licensing is being conducted; its first meeting has just happened and it will report by May next year. We hope to learn lessons from that review and take it forward according to those lessons. However, I do not want to pre-empt that—the work has just started.

Housing: Local Plans

Debate between Baroness Thornhill and Lord Bourne of Aberystwyth

Thursday 13th September 2018 Lords Chamber

[Baroness Thornhill (LD)]

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

[The Parliamentary Under-Secretary of State, Ministry of Housing, Communities and Local Government and Wales Office (Lord Bourne of Aberystwyth) (Con)]

My Lords, the revised National Planning Policy Framework gives greater certainty to areas that are delivering developments in line with the local plan. However, where there is underdelivery, the housing delivery test will hold local authorities to account for their role in delivering the homes we need by making more land available through a buffer on land supply, or by invoking a presumption in favour of sustainable development. Additionally, locally produced action plans will enable local authorities to understand what is preventing plan delivery in their areas.

[Baroness Thornhill]

I thank the noble Lord for that interesting Answer. While the new NPPF has much to commend it, does he agree that this housing delivery test is set to become both controversial and challenging? What powers do the Government think local government has now, and what powers will it have in the future to hold the housebuilders to account for prompt completions following planning permission, as this housing delivery test demands?

[Lord Bourne of Aberystwyth]

My Lords, I thank the noble Baroness for her comments and her welcome to the National Planning Policy Framework generally. It certainly is challenging; the evidence is that local authorities are stepping up to the plate. Where they do not, there is a sanction involving a buffer on land supply. But it is in response to what we regard as most important: providing housing for the nation. Last year—the last year for which records are available—we hit the best year for 30 years. Let me correct myself: only one year in the previous 30 was better. But there is still a challenge and that is why we are doing this.

Affordable Housing: Social Homes for Rent

Debate between Baroness Thornhill and Lord Bourne of Aberystwyth

Tuesday 3rd July 2018 Lords Chamber

[Baroness Thornhill]

To ask Her Majesty's Government how many social homes for rent they estimate will be built under the affordable housing programme.

[The Parliamentary Under-Secretary of State, Ministry of Housing, Communities and Local Government and Wales Office (Lord Bourne of Aberystwyth) (Con)]

My Lords, since 2010, we have delivered over 378,000 affordable homes, including 129,000 at social rent. Last week, we announced a £1.67 billion government investment deal that will deliver an additional 23,000 affordable homes outside of London, including at least 12,500 at social rent in areas where they are needed the most. This is part of the Government’s £9 billion investment in affordable homes. The total number of homes delivered will depend on the bids received.

[Baroness Thornhill (LD)]

I thank the Minister for his Answer, and I am genuinely pleased to see any increase in social housing. However, let us take that figure of 12,500, which my own authority will be bidding for—that actually equates to 25 homes a year. I am sure the Minister is aware that delivery is actually down. The numbers sound grand until you realise that 40,000 affordable homes were delivered in 2010 but the figure was down to 5,500 in 2016-17. Last year, 12,000 homes were lost to right to buy alone. Can the Minister understand why these proposals and the figures that he outlined are loose change in response to the evidenced need? Will he reassure us that the forthcoming Green Paper will be both bold and radical in its attempt to solve what I believe is a real social crisis?

[Lord Bourne of Aberystwyth]

My Lords, I am glad that the noble Baroness welcomes the progress made. In 2016-17, the year to which she referred, we saw 217,350 new homes delivered—the highest number in all but one of the previous 30 years.

Rating (Property in Common Occupation) and Council Tax (Empty Dwellings) Bill

Debate between Baroness Thornhill and Lord Bourne of Aberystwyth

Committee: 1st sitting (Hansard): House of Lords
Tuesday 19th June 2018 Lords Chamber

[Baroness Thornhill (LD)]

My Lords, I declare my interest as a vice-president of the Local Government Association. I fully support the words of the noble Lord, Lord Kennedy. I thank the Minister for the very detailed and informative letter he sent all of us after Second Reading; in particular, his response to my comments on fiscal incentives and deterrents with regard to empty homes. I really appreciated that and took on board what he said. Perhaps he will indulge me by allowing me to hang on to the one measure that he did not elaborate on—that is, the matter of penalties.

It is probably little known that councils actually have the ability to levy a civic penalty on an owner for not informing councils that their home is empty. It is not surprising that it is little known; the maximum penalty for doing so is actually £70, so it is no surprise that it is rarely, if ever, used, and that the general public are oblivious to it. In fact, I suspect that if we talked to the general public we would find they believed that by informing the council that their home was empty they would actually pay less or no council tax, so that shows that we have a long way to go. As the average council tax, the band D monthly payment, is now around £165 a month, a penalty of £70 is nothing—it is neither a penalty nor a deterrent. So this is a small matter but I feel that the two should have been taken together. If we are going to, justifiably and rightly, hike up council tax premiums, the penalty that goes with not informing the council should send the same level of message—£70 is, frankly, derisory.

I see both these measures—the penalty and the increased premiums—as really important in motivating councils to move this up their agenda. I say this with a degree of experience in local government, particularly in district councils where this is not a priority, largely because of costs. At Second Reading we heard a lot about powers not being used because of costs, but I think that together these two things would encourage councils to publicise the need to not leave homes empty, and to make it a publicly unacceptable issue so that people would be enraged by it and want us to do something about it. If there were to be a review, would we also review penalties in this regard, as I feel that it would be a missed opportunity if we did not? I beg to move.

[Lord Bourne of Aberystwyth]

I am very grateful to the noble Lord, Lord Kennedy, and the noble Baroness, Lady Thornhill, for their contributions on this group of amendments that relate to how we seek to address the penalty point just covered by the noble Baroness and the issue of the review, which was raised by the noble Lord.

The amendments would require the Government to review the impact of the increase in the maximum permitted level of the empty homes premium. I pause briefly to say that I think I am going to organise a list of all the things that the noble Lord, Lord Kennedy, has asked us to do reviews on. I know that he very often says that we have so many things out for review and then we have a critique of that, but we have had a couple of issues today at least where he has asked for reviews. I am only teasing.

Housing: Private Rented Sector

Debate between Baroness Thornhill and Lord Bourne of Aberystwyth

Thursday 14th June 2018 Lords Chamber

[Lord Bourne of Aberystwyth]

My Lords, first, the noble Lord may not appreciate that the latest figures indicate an increase, although a modest one, in the rate of owner-occupation. On Generation Rent and the issue of longer tenancies, he is right that most of the private rented sector is not new builds, although we have 97,000 in the pipeline for the Build to Rent sector. However, in relation to longer tenancies, the noble Lord is absolutely right that the previous Secretary of State was in favour of this, as is the present one—very much so. We are pursuing that with the British Property Federation, which is the main player here and is committed to offering three-year tenancies and longer.

[Baroness Thornhill (LD)]

My Lords, the National Planning Policy Framework is due to report shortly. Will the Minister assure us that, in order to incentivise Build to Rent—I have some hope that this might provide additionality—there will not be further policy shifts which will in effect let developers off the hook when it comes to their financial contributions to councils with regard to the community infrastructure levy and Section 106 agreements? They provide important amenities and, in particular, contributions to social and affordable housing. Secondly, can he assure us that there will not be a trade-off in the quality of build against speed and the quantity of delivery?

[Lord Bourne of Aberystwyth]

My Lords, quality of build is important and is included in the NPPF; we have consulted on that and are now considering the responses, as the noble Baroness will know. There is also a commitment in the NPPF, as she will know, to people who want to rent their homes, and a particular provision on affordability.

Business Rates: Devolution

Debate between Baroness Thornhill and Lord Bourne of Aberystwyth

Wednesday 21st December 2016 Lords Chamber

[Baroness Thornhill (LD)]

I beg leave to ask the Question standing in my name on the Order Paper and draw the House’s attention to my interests as the directly elected mayor of Watford and a deputy chair of the LGA.

[The Parliamentary Under-Secretary of State, Department for Communities and Local Government and Wales Office (Lord Bourne of Aberystwyth) (Con)]

My Lords, councils have long campaigned for 100% business rates retention. We recently conducted a consultation on our proposed approach and will publish our response and our proposed way forward shortly. In the meantime, we will continue to work closely with local government to shape the reforms.

[Baroness Thornhill]

I am very pleased to hear that, because close collaboration with local government is essential if this very new and radical approach is to work. Is the Minister aware that, as part of the new regime, councils are being asked to undertake new burdens, in particular the controversial attendance allowance benefit? Will the Government consider dropping these new and additional burdens in favour of allowing us to fund existing ones, such as adult social care?

[Lord Bourne of Aberystwyth]

My Lords, the noble Baroness is right that there is discussion on attendance allowance being devolved, although no conclusion has been reached on that. We are currently considering responses on that. I do not think we have had a response from Watford in general terms on the reforms we are suggesting.