Local Government Finance (England)

Baroness Laing of Elderslie Excerpts

Wednesday 9th February 2022 Commons Chamber

[Mr Kevan Jones]

I do not disagree with the Secretary of State. County Durham is a wonderful county. It has some great towns and, more importantly, great people. But why did Bishop Auckland get that money as opposed to any of the other towns in County Durham? Well, it has a Conservative Member of Parliament. I doubt that it will be getting much funding in the future, following the recent antics of the hon. Member for Bishop Auckland (Dehenna Davison), with her criticism and plotting against the Prime Minister. She will be on the naughty step for a while, and will not get any future funding. The important thing is that this must be clear. I also question the bidding process. The problem with the process, as my right hon. Friend has said, is that it takes a lot of time and effort to take this through. Officer time is taken up, and councils are limited in the amount of officer time that they have. Then they have to go into some beauty parade, which is clearly rigged by the Government. The real issue in terms of levelling up is this—

[Madam Deputy Speaker (Dame Eleanor Laing)]

Order. I did not want to jump in as a kneejerk reaction, but I have been considering what the right hon. Gentleman has just said. He has made a very serious criticism of a Member of this House. I just want to check whether he has given notice to the hon. Lady that he intended to criticise her on the Floor of the House?

[Mr Kevan Jones]

I am not aware how I criticised the hon. Lady, Madam Deputy Speaker. If you could illuminate and tell me how I did, I would be quite happy. I would not necessarily want to criticise her.

[Madam Deputy Speaker]

The right hon. Gentleman most certainly made reference to another Member. My interpretation was that he was criticising her, but the point is that he made specific reference to her. I just want to check that he gave her notice of his intention to do so.

[Mr Kevan Jones]

I am sorry, but I do not know where in Standing Orders it says that you have to give notice. If a Member is criticising someone or raising a point, I agree with you, Madam Deputy Speaker, but when a Member is referring to a Member, which is what I did there—

[Madam Deputy Speaker]

The right hon. Gentleman can try to argue with the Chair for as long as he wishes. I am concerned about keeping good order in this Chamber, and my interpretation of what the right hon. Gentleman said was that it was a serious criticism of the hon. Lady. Perhaps the most subtle thing for him to do is to undertake to tell her that he criticised her on the Floor of the House and apologise for not having given her notice of his intention to do so.

[Mr Kevan Jones]

I have to say, Madam Deputy Speaker, I am not known for my subtlety. I am not sorry. I do not quite understand the point. The point I made was in reference to what has been in the newspapers. I was not criticising the hon. Lady. Frankly, if she is working against the Prime Minister, I would congratulate more than anything, not criticise her. I do not think that it was a criticism—

[Madam Deputy Speaker]

We do not need any more of this. I have said what I have said. It is not for the right hon. Gentleman to argue with me. Will he please now continue with his speech?

[Mr Kevan Jones]

I will, and I will take this up further, Madam Deputy Speaker.

May I now come back to the main points? We are talking about some really serious things, and I am sorry that we have been diverted. As my hon. Friend the Member for Sheffield South East said, if levelling up means anything, it means building up those communities. It is not necessarily about bricks and mortar, but about trying to pull the fabric together.

County Durham has high levels of deprivation, with people more likely to need social care and intervention by the health service at a lower age—in their 50s—than in most places. There are huge demands on adult social care. One thing that makes me very angry is the fact that in the last 10 years, life expectancy in County Durham has actually been falling. The idea that there is a part of this wealthy country where our citizens’ life expectancy is falling is deeply disturbing and wrong.

This brings me to the issue of public health. I give full credit to Amanda Healy, the director of public health in County Durham, and her officers, who have worked tirelessly, and I agree with my hon. Friend the Member for Sheffield South East that if we had given test and trace to them, they would have made a damn sight better job of it than the billions that were wasted nationally. We now have a situation where we have a cut in the public health grant. The last time the Government were consulting on the public health grant, County Durham was going to lose 40% of its funding. The problem is that if we really want to tackle the inequalities, we have to do it in terms of public health. It is no good trying to shy away from that.

We now have a situation whereby, as part of the levelling-up agenda, everything seems to be tied to changing the local government arrangements. County Durham has been offered a county deal. I do not understand why the Government are looking at changing the local government structures of an area—[Interruption.] I am sorry, Madam Deputy Speaker. You are interrupting what I am saying. I can’t hear myself think.

[Madam Deputy Speaker (Dame Eleanor Laing)]

Order. I hope that the right hon. Gentleman will simply withdraw what he has just said.

[Mr Jones]

I will, but it is just irritating, Madam Deputy Speaker.

[Madam Deputy Speaker]

I am sure that it has irritated the right hon. Gentleman, and I am sure that he has never irritated anyone himself. Irritation is something that is allowed in this Chamber; indeed, it is endemic.

[Mr Jones]

I am glad it is, Madam Deputy Speaker.

Turning to the devolution deal, one of the bare minimums that we have looked for is a replacement for the money that we would have received from the European Regional Development Fund. The Government gave a clear pledge that, once we left Europe, that money would be matched, but it is quite clear from looking at the Treasury Red Book that it will not be. That money is important in County Durham because it allows us to fund programmes such as DurhamWorks, which works with young people who want to get into work. It has been a tremendous success, but its funding ends in 2023 and there is no more after that, so it is important that at a bare minimum we get the equivalent of that funding. However, if we have to bid for it, the bidding process will take up the time and effort of our officers, and there is also the question of the transparency of the process.

I will turn now to the White Paper, which I have read. I actually like the Secretary of State; he is a thinker. It was certainly a loss when he was demoted from the post of Justice Secretary, because he had some great ideas around how to reform the justice sector. I plead with him to take some of the ideas in the White Paper, ensure that we have the funding review that has been put alongside it, and stop this nonsense of tying resources to a requirement for devolution or to messing and tinkering around with the governing structures locally. He must then ensure that that system tackles these issues and puts back what is needed in the formula, which is a needs-based assessment.

As I have said, County Durham has more than 900 children in care. That is not cheap and it has led, as my hon. Friend the Member for Sheffield South East said, to adult social care and looked-after children gobbling up nearly 70% of the budget. That is not sustainable over the long term for doing the other things that my right hon. Friend the Member for Knowsley mentioned, when he talked about ensuring that everything else that people expect—parks, services and basic communities—is there.

There is an opportunity here, and one thing we can say about the Secretary of State is that he is a thinker and he wants to drive change. I think he was out of the Chamber when I said that the main themes in the White Paper are correct. It is about not getting bogged down in the detail of governance, deals and devolution that does not actually mean devolution; it is just about trying to get the funding in place.

I have been a leader in local government and also a Minister, and I think that if the Secretary of State looks at some of the innovation taking place in local government, he will see that the quality of some of the officers in local government is fantastic—there are some great people there doing some great things. What we have to do is free up their time, give them credit when they are doing things and support those politicians who are actually there. Let us get away from the idea that mayors are the answer to everything or that these people do not have the responsibility. This issue affected our Government as much as it has affected his. The Treasury just does not trust these people, but frankly it should, because in local government we have some great innovators. We have people who will tackle the real issue, which, as I say, is not just about bricks and mortar; it is about making the real change that happens at a local level.

I wish the Secretary of State well in his ambitions. I hope he has a good fight with the Treasury, to ensure that he gets the resources so that if we are going to make real change at the local level, we will actually make a real difference. We have political differences in this place, but we do actually want what most people want, which is the best for their local community.

--- Later in debate ---

[Hon. Members]

More!

[Madam Deputy Speaker (Dame Eleanor Laing)]

No, no more.

Question put and agreed to.

Resolved,

That the Local Government Finance Report (England) 2022–23 (HC 1080), which was laid before this House on 7 February, be approved.

Resolved,

That the Referendums relating to Council Tax Increases (Principles) (England) Report 2022–23 (HC 1081), which was laid before this House on 7 February, be approved.—(Steve Double.)

[Madam Deputy Speaker (Dame Eleanor Laing)]

We now come to motion No. 4—[Interruption.] No, no, we have finished that one. Arguments can now be continued behind the Chair, which is perfectly reasonable, but not here.

Holocaust Memorial Day

Baroness Laing of Elderslie Excerpts

Thursday 27th January 2022 Commons Chamber

[Sir Peter Bottomley (Worthing West) (Con)]

On a point of order, Madam Deputy Speaker. It may or may not be known to the House—it is known to the Government—that permission has been given to appeal the planning approval for the memorial in Victoria Tower Gardens. I think we need to be careful about how we speak about it. I did not want to interrupt the exceptionally good speech of my right hon. Friend the Member for Newark (Robert Jenrick) on a very important subject.

[Madam Deputy Speaker (Dame Eleanor Laing)]

I thank the hon. Gentleman for his point of order, which of course is not a point for the Chair, but which might well be important as a point of information for hon. Members participating in the debate. I suppose that, to some extent, planning appeals are sub judice and we must be careful about what we say here in the Chamber.

[Several hon. Members rose—]

[Madam Deputy Speaker]

Order. Although a great many colleagues wish to participate in today’s important debate, I hope that we can manage without a time limit. If everybody, having regard for others’ rights as well as their own, takes eight to nine minutes or less, everyone will be able to get in without a time limit. I do hope that this is one debate in which the Chair can rely on colleagues to think of others, not only of themselves.

--- Later in debate ---

[Charlotte Nichols (Warrington North) (Lab)]

I rise to speak today to commemorate Holocaust Memorial Day, which, on the anniversary of the liberation of Auschwitz-Birkenau, commemorates the 6 million Jews murdered during the holocaust, alongside the millions killed under Nazi persecution of other groups, including Roma and Sinti people, Slavic people, LGBT and disabled people and political and religious minorities. On this day, we also remember the subsequent genocides in Rwanda, Cambodia, Dafur and Bosnia.

As the holocaust fades from living memory, I want to put on record my gratitude to all of the survivors whose testimonies are at the heart of holocaust education, but which come at huge personal cost. It is impossible to comprehend the abjectness of the horrors that they experienced, the trauma that follows them through their lives, or the sacrifice that bearing witness entails. Marceline Loridan-Ivens said:

“If you only knew, all of you, how the camp remains permanently within us. It remains in all our minds, and will until we die”

Similarly, Shlomo Venezia, said:

“Everything takes me back to the camp. Whatever I do, whatever I see, my mind keeps harking back to the same place. It’s as if the “work” I was forced to do there had never really left my head…Nobody ever really gets out of the Crematorium”.

Those who survived the camps were greeted with

“incredulity, indifference, and even hostility”

upon their return to their communities. Although the allies won the war against Nazism in Europe, antisemitism has never been defeated, and fascism grew rapidly in the UK in the post-war years, contrary to the narrative of triumph over Hitler.

Jewish soldiers such as Morris Beckman and Jules Kanopinski returned to London to find fascists staging outdoor rallies in the east end,

“shouting out the same antagonism and the same filth as before the war, and now even worse—they were saying the gas chambers weren’t enough”.

The anti-fascist 43 Group that they and their comrades established, and the later 62 Group, would be breaking up, on average, 15 fascist meetings a week and engaging in regular physical confrontation with fascists, including in the battle for Ridley Road, which was memorialised this year in a BBC drama. The irony is not lost on me that, in the very week that Ridley Road was released, my synagogue in Manchester, where much of it was filmed, had our Friday night service gate-crashed by the far right. It may be a historical drama, but the hatred in it is very much contemporary.

I have sat in synagogue while fellow Jews have been slaughtered elsewhere in the world for practising their faith, as I am, and so to proclaim our faith proudly, to stand as proud Jews, is itself an act of defiance. As the partisan vow declares, “Mir veln zey iberlebn”, which means, we will outlive them. From generation to generation, the Jewish spirit endures.

In Kveller, Rachel Stomel writes:

“In the context of Jewish law, remembrance is not a reflexive, passive process directed inwards. Our sages teach us that the way we fulfil the Torah’s commandment to remember the Sabbath—'Zachor et Yom HaShabbat le’kodsho’ (remember the sabbath day to keep it holy)—is by active declaration in the performance of the kiddush, the Shabbat blessing over wine. We are commanded to remember the Amelikites brutal massacre of our people—'Zachor et Asher asah lecha Amalek’ (remember what the Amalek did to you)—through intentional, public, verbal affirmation, and by ridding the world of the evil that they represent. Neither of these Torah commandments can be fulfilled by quiet contemplation, memorialisation must manifest through specific action.”

The theme for this year’s Holocaust Memorial Day is “One Day,” both as a call to action for that one day when we have eradicated the hatred that leads to genocide and because one day, as a snapshot of what happened, can be helpful in seeking to understand and process the enormity of the holocaust. The brutality and the hopelessness of the concentration camps and the lengths to which the Nazis went to extinguish any faint glimmers of hope are summed up in this quote from the survivor Shlomo Venezia, who was forced to work in the Sonderkommando at Auschwitz, emptying the gas chambers of bodies, including those of family members, processing their hair and teeth, and loading them into the ovens for cremation. He said:

“One day, while I was presenting my testimony at a school, a young girl asked me if anyone had ever emerged from the gas chamber alive. Her schoolmates laughed at her, as if she hadn’t understood a thing. How could anyone survive in those conditions, when the deadly gas used had been carefully developed to kill everyone? It’s impossible. In spite of everything, however absurd her question may seem, it was quite relevant, since it did indeed happen.

Few people ever saw and can relate this episode, and yet it is true. One day when everyone had started working normally after the arrival of a transport, one of the men involved in removing the bodies from the gas chamber heard a strange noise. It wasn’t so unusual to hear strange noises, since sometimes the victims’ bodies continued to emit gas. But this time he claimed the noise was different. We stopped and pricked up our ears, but nobody could hear anything. We told ourselves that he’d surely been hearing voices. A few minutes later, he again stopped and told us that this time he was certain he’d heard a death rattle. And when we listened closely, we, too, could hear the same noise. It was a sort of wailing. To begin with, the sounds were spaced out, then they came more frequently until they became a continuous crying that we all identified as the crying of a newborn baby. The man who had heard it first went to see where exactly the noise was coming from. Stepping over the bodies, he found the source of those little wailings. It was a baby girl, barely two months old, still clinging to her mother’s breast and vainly trying to suckle. She was crying because she could feel that the milk had stopped flowing. He took the baby and brought it out of the gas chamber. We knew it would be impossible to keep her with us. Impossible to hide her or get her accepted by the Germans. And indeed, as soon as the guard saw the baby, he didn’t seem at all displeased at having a little baby to kill. He fired a shot and that little girl who had miraculously survived the gas was dead. Nobody could survive. Everybody had to die, including us: it was just a matter of time.”

Elie Wiesel speaks of watching Jewish babies thrown alive into the vast ditches where bodies were burned, confirmed by Telford Taylor at the Nuremberg trials. Lily Ebert testifies of witnessing babies torn from their mothers’ arms and dashed against walls. I have seen the piles of teeth, hair and shoes that represent a tiny fraction of those who passed through Auschwitz-Birkenau, and how small those chambers were, with up to 1,200 people piled into a tiny space so that no poison gas would be wasted. This was not, as we might imagine, a quick process, with it taking up to 12 minutes to be poisoned to death, crushed in among hundreds of panicking people, desperately trying to cling to life, trying to break or claw their way out. Seven hundred Jews were murdered in the gas chambers on the very day before they were set to be liberated and many more died by disease or by suicide in the months following liberation. There are some things that a human just cannot endure.

These survivors witnessed day in, day out what no human being should ever be condemned to see: the very depths of man’s cruelty and inhumanity towards his fellow man laid bare. The Hasidic mystic, the Baal Shem Tov, said:

“If a man has beheld evil, he may know that it was shown to him in order that he learn his own guilt and repent; for what is shown to him is also within him.”

If man can sink to these depths once, to industrialise the brutalisation and murder of their fellow humans, they can and will do so again. Indeed, “never again” rings hollow with the genocides that have taken place since the holocaust, and our failure as a nation to learn the lessons of the past as this Government turn away refugees from other parts of the world knowing full well the fate of the refugees from the holocaust denied safe passage to Britain and the US, and returned to their deaths.

We allow a minority in public life to degrade and debase the memory of the holocaust—to make inappropriate comparisons with modern day events as though there can be any parallel drawn, rhetorical or otherwise, between, for example, those who choose not to be vaccinated, or a particularly poor performance in the football, and the experience of the victims of Nazi persecution. We still see the cancer of antisemitism in our communities, with the threat of hate crime in person and online a daily reality that we should not have to live alongside.

Today we honour the victims, the survivors, the heroes and the martyrs of the holocaust. We cannot change the past, but by bearing witness we can change the course of the future. Ira Goldfarb said of his father, the survivor Aron Goldfarb, that

“throughout my father’s life, survival adopted a new meaning. Survival to my father was carrying the nightmares of his childhood and choosing to find joy, humor, and compassion in life every single day. Survival was seeing the worst of humanity and still offering his last piece of bread to someone who needed it more, still building lifelong friendships, and being a devoted husband and father.”

It is hard not to be moved by photos of a beaming Lily Ebert celebrating her 98th birthday in lockdown with thousands of cards sent by well-wishers, or welcoming the birth of her 35th great-grandchild. I can think of few people more deserving of happiness. May we draw strength from their strength, and courage from their courage, as we build a more decent, respectful and inclusive society where all of us can live in peace, harmony and security.

[Madam Deputy Speaker (Dame Eleanor Laing)]

The whole House appreciates the hon. Lady’s courage in delivering such a powerful and moving speech, which I hope will be taken note of widely.

Leasehold Reform (Ground Rent) Bill [Lords]

Baroness Laing of Elderslie Excerpts

Report stage & 3rd reading
Monday 24th January 2022 Commons Chamber

[Mike Amesbury (Weaver Vale) (Lab)]

I beg to move, That the clause be read a Second time.

[Madam Deputy Speaker (Dame Eleanor Laing)]

With this it will be convenient to discuss the following:

Amendment 1, in clause 2, page 3, line 16, at end insert—

“Retirement developments where some leasehold residential flats have already been sold prior to commencement but others remain unsold

(12) A lease is an excepted lease if it is a lease of a retirement home in a development, where—

(a) other residential flats within the development have sold and completed on a long leasehold before the relevant commencement day under section 26(4) but it is a flat within the development which remains unsold, and

(b) the development commenced prior to 6th July 2021.”

This amendment seeks to avoid retirement developments where properties are on the market, but not fully sold by the time the Act comes into force for retirement properties, needing to have two lease types within one building, some paying ground rents and others funding the development of communal areas by another method.

[Mike Amesbury]

Let me begin by thanking all colleagues who have helped this short but important Bill through its stages so far, including our friends in the other place. In particular, I thank those who joined the Minister and me in scrutinising the Bill in Committee. Let me also begin with an apology to the Minister. I told him on the occasion of our final meeting in the Committee that that would be my last outing in respect of housing, having handed over the portfolio to my capable hon. Friend the Member for Greenwich and Woolwich (Matthew Pennycook), who is sitting behind me. I was wrong to say that, and I am very pleased that I was wrong. I stand here today ready to continue to raise an issue which matters hugely to me, to many of my constituents, and to leaseholders across the country—and, indeed, to the Minister himself.

Although the Bill is short, many important issues in it have already been covered extensively, first by our colleagues in the other place and then by Members here, in Committee. I do not wish to repeat too much of what has already been said, but the two new clauses tabled for Report are an opportunity for Members on both sides of the House to raise again two important aspects of the Bill.

New clause 1 would require the Government to produce draft legislation within 30 days to reduce ground rents to a peppercorn in existing long residential leases. The antiquated feudal system of leasehold is unjust for the many and not just the new. People in England and Wales have been trapped in that relic from the past for far too long. I urge the Minister to set them free, level up their life chances and support the new clause.

New clause 1 proposes that the narrow scope of the Bill be simply widened to improve the lives of leaseholders—the 4.5 million people trapped in this feudal system. Some 1.4 million of them are in houses, many in the north, the north-west and Wales, and may be experiencing high ground rents on top of other exploitative terms built into their leasehold contracts.

Building Safety Bill

Baroness Laing of Elderslie Excerpts

Report stage
Wednesday 19th January 2022 Commons Chamber

[The Minister for Housing (Christopher Pincher)]

I beg to move, That the clause be read a Second time.

[Madam Deputy Speaker (Dame Eleanor Laing)]

With this it will be convenient to discuss the following:

Government new clause 21—Amendment of the Government of Wales Act 2006.

Government new clause 22—Architects: Appeals Committee.

New clause 3—Remediation costs and Building Works Agency—

“(1) The remediation costs condition applies where a landlord has carried out any fire safety works to an applicable building in consequence of any provision, duty or guidance arising from—

(a) the Housing Act 2004;

(b) the Regulatory Reform (Fire Safety Order) 2005;

(c) the Building Safety Act 2021;

(d) any direction, recommendation or suggestion of any public authority or regulatory body;

(e) such other circumstances or enactment as the Secretary of State may prescribe by regulations or in accordance with subsection (9), below.

(2) If the remediation costs condition is met, then the costs incurred by the landlord in connection with those matters may not be the subject of a demand for payment of service charges, administration charges or any other charge permitted or authorised by any provision of any long lease.

(3) Any demand for payment which contravenes this section shall be of no force or effect and will have no validity in law.

(4) Any covenant or agreement, whether contained in a lease or in an agreement collateral to such a lease, is void in so far as it purports to authorise any forfeiture or impose on the tenant any penalty, disability or obligation in the event of the tenant refusing, failing or declining to make a payment to which this section applies.

(5) The remediation costs condition applies to demands for payment before the landlord incurs the costs in the same way as it applies to demands for payment made after the costs have been incurred.

(6) The remediation costs condition does not apply where the landlord is a company in which the majority of the shares are held by leaseholders or where the landlord is an RTM company.

(7) Within six months of the day on which this section comes into force, the Secretary of State must create an agency referred to as the Building Works Agency.

(8) The purpose of the Building Works Agency shall be to administer a programme of cladding remediation and other building safety works, including—

(a) overseeing an audit of cladding, insulation and other building safety issues in buildings over two storeys;

(b) prioritising audited buildings for remediation based on risk;

(c) determining the granting or refusal of grant funding for cladding remediation work;

(d) monitoring progress of remediation work and enforce remediation work where appropriate;

(e) determining buildings to be safe once remediation work has been completed;

(f) seeking to recover costs of remediation where appropriate from responsible parties; and

(g) providing support, information and advice for owners of buildings during the remediation process.

(9) The Building Works Agency shall also have power to recommend that the Secretary of State exercises his power under clause (1)(e) in such terms and to such extent that it sees fit. If such a recommendation is made, the Secretary of State must, within 28 days, either—

(a) accept it and exercise the power under clause 1(e) within 28 days of acceptance; or

(b) reject it and, within 28 days of rejection, lay before Parliament a report setting out the reasons for rejection.

(10) In this section—

(a) ‘fire safety works’ means any work or service carried out for the purpose of eradicating or mitigating (whether permanently or temporarily) any risk associated with the spread of fire, the structural integrity of the building or the ability of people to evacuate the building;

(b) ‘applicable building’ means a building subject to one or more long leases on the day on which section comes into force;

(c) ‘service charge’ has the meaning given by s.18, Landlord and Tenant Act 1985;

(d) ‘administration charge’ has the meaning given by Schedule 11, Commonhold and Leasehold Reform Act 2002;

(e) ‘long lease’ has the meaning given by sections 76 and 77 of the Commonhold and Leasehold Reform Act 2002;

(f) ‘RTM company’ has the meaning given by section 113 of the Commonhold and Leasehold Reform Act 2002.

(11) This section comes into force on the day on which this Act is passed.”

New clause 4—Building Safety remediation and works: zero-rating for Value Added Tax purposes—

“(1) The Value Added Tax Act 1994 is amended as follows.

(2) In section 35(1A)(b) at the end leave out ‘and’.

(3) In subsection 35(1A)(c) leave out the final full stop and insert ‘, and’.

(4) After subsection 35(1A)(c) insert—

‘(d) building safety remediation or building safety works of the type described in item 4A of the table in paragraph 1 of Group 5 of Schedule 8 to this Act.’

(5) After subsection 35(2) insert—

‘(2A) For the purposes of subsection (2), the Commissioners shall make regulations providing for a period of not less than 6 months to be open for claims for repayment of VAT in relation to supplies under subsection 35(1A)(d) where the date of supply is between 14 June 2017 and 31 July 2022.’

(6) In the table at paragraph 1 of Group 5 of Schedule 8, after existing item 4 insert new item 4A—

‘The supply in the course of—

(a) remediation of any defect in any external wall of any building containing two or more residential dwellings; or

(b) remediation of any defect in any attachment to any external wall of any building containing two or more residential dwellings; or

(c) the installation of a new or upgraded communal fire alarm system, other than to replace a communal system which has reached the end of its working life, or a communal system which has broken down as a result of failure to make reasonable repairs over time; or

(d) remediation of any internal or external defect other than a defect described in paragraphs (a), (b) or (c); or

(e) any building safety works carried out by an accountable person under section 86 of the Building Safety Act 2021

of any services related to the remediation.’

(7) In the table at paragraph 1 of Group 5 of Schedule 8, in item 4 replace ‘item 2 or 3’ with ‘item 2, 3 or 4A’.

(8) After note 24 insert a new note as follows—

‘(25) For the purposes of item 4A in the table above—

“defect” means anything posing any risk to the spread of fire, the structural integrity of the building or the ability of people to evacuate the building, including but not limited to any risk identified in guidance issued under Article 50 of the Regulatory Reform (Fire Safety) Order 2005 (S.I. 2005/1541) or any risk identified in regulations made under section 59 of the Building Safety Act 2021;

“external wall” has the same meaning as in Article 6 of the Regulatory Reform (Fire Safety) Order 2005 (S.I. 2005/1541);

“remediation” means any step taken to eradicate or to mitigate a defect, including employment of any person temporarily or permanently to assist in evacuation of any part of a building, and whether or not the defect in question existed at the date any dwelling in the building was first occupied. Remediation does not include anything required in consequence of omitting to effect reasonable repairs or maintenance to all or any part of the building over time, or anything which is the responsibility of the occupant of a dwelling in the building.’

(9) This section comes into force on 1 August 2022.”

This new clause allows recovery of VAT on building safety remedial works paid since 14 June 2017 and makes future supplies of materials, goods and services for building safety remediation projects zero-rated for Value Added Tax.

New clause 5—Fire safety defects and defective dwellings—

“(1) The Housing Act 1985 is amended as follows.

(2) In section 528(1)(a) leave out the final ‘, and’ and insert ‘, or’.

(3) After section 528(1)(a) insert—

‘(aa) buildings in the proposed class are defective as a result of their external walls or any attachment to the external walls, whether as a result of the design or construction of the external walls or the attachment in question; or

(ab) buildings in the proposed class are defective as a result of anything which in the opinion of the Secretary of State poses a building safety risk or the ability of anyone to evacuate the building, whether or not the building is a higher-risk building, and’

(4) In section 528(1)(b) for ‘paragraph (a)’ substitute ‘paragraphs (a), (aa) or (ab)’.

(5) In section 528(1)(b) at the end insert ‘, or in the opinion of the Secretary of State is materially difficult to mortgage, insure or sell compared to non-defective dwellings.’

(6) After section 528(4) insert—

‘(4A) A designation may identify any part of a building or class of buildings, any design feature, any material used in the construction of that building, any error in workmanship or installation or anything missing from that building, whether or not it should have been included when the building was constructed.

(4B) A designation may be made if the defect requires the employment of any person, whether on a permanent or temporary basis, specifically to assist with the evacuation of that building or part of that building.’

(7) After section 528(6) insert—

‘(7) In this section—

“building safety risk” has the same meaning as in section 59 of the Building Safety Act 2021.

“external wall” has the same meaning as in Article 6 of the Regulatory Reform (Fire Safety) Order 2005 (S.I. 2005/1541).

“higher-risk building” has the same meaning as in section 62 of the Building Safety Act 2021.’

(8) In section 559(1)(a) omit the final ‘, and’ and replace it with ‘, or’.

(9) After section 559(1)(a) insert—

‘(aa) buildings in the proposed class are defective as a result of their external walls or any attachment to the external walls, whether as a result of the design or construction of the external walls or the attachment in question; or

(ab) buildings in the proposed class are defective as a result of anything which in the opinion of the local housing authority poses a building safety risk or the ability of anyone to evacuate the building, whether or not the building is a higher-risk building, and’

(10) In section 559(1)(b) for ‘paragraph (a)’ substitute ‘paragraphs (a), (aa) or (ab)’.

(11) In section 559(1)(b) at end insert—

‘or in the opinion of the local housing authority materially difficult to mortgage, insure or sell compared to non-defective dwellings.’

(12) After section 559(4) insert—

‘(4A) A designation may identify any part of a building or class of buildings, any design feature, any material used in the construction of that building, any error in workmanship or installation or anything missing from that building, whether or not it should have been included when the building was constructed.

(4B) A designation may be made if the defect requires the employment of any person, whether on a permanent or temporary basis, specifically to assist with the evacuation of that building or part of that building.’

(13) After section 559(6) insert—

‘(7) In this section—

“building safety risk” has the same meaning as in section 59 of the Building Safety Act 2021;

“external wall” has the same meaning as in Article 6 of the Regulatory Reform (Fire Safety) Order 2005 (S.I. 2005/1541);

“higher-risk building” has the same meaning as in section 62 of the Building Safety Act 2021.’

(14) This section comes into force on the day this Act is passed.”

This new clause is suggested before clause 126. This new clause amends Part XVI of the Housing Act 1985 (originally enacted as the Housing Defects Act 1984) to empower the government and local authorities to designate dwellings with cladding and fire safety defects as defective and to provide grant support for remediation.

New clause 6—Duty on the Secretary of State to report on designations under Part XVI of the Housing Act 1985—

“(1) Within the period of six months beginning with the day on which this section comes into force, the Secretary of State must—

(a) consider the financial impact on leaseholders in England and Wales of building safety advice given by his department since 14 June 2017; and

(b) in conjunction with the Treasury and the Prudential Regulation Authority, consider the impact of building safety advice given by his department since 14 June 2017 on the supply of mortgage finance for leasehold flats in England and Wales; and

(c) publish a report setting out his determination, in light of the factors identified in paragraphs (a) and (b), as to whether designations under section 528 or section 559 of the Housing Act 1985 would improve conditions for leaseholders, or would improve the supply of mortgage finance for leasehold flats in England and Wales.

(2) If the Secretary of State’s report under subsection (1) concludes that designations under section 528 or section 559 of the Housing Act 1985 would improve financial conditions for leaseholders in England and Wales, or would improve the supply of mortgage finance for leasehold flats in England and Wales, then at the same time as publishing his report he must—

(a) make arrangements to provide all necessary funding;

(b) make the appropriate designations under section 528 of the Housing Act 1985; and

(c) advise local housing authorities to make appropriate designations under section 559 of the Housing Act 1985.

(3) Before making any regulations bringing into force any section in Part 4 of this Act, the Secretary of State must make arrangements for—

(a) a motion to the effect that the House of Commons has approved the report prepared under subsection (1), to be moved in the House of Commons by a minister of the Crown; and

(b) a motion to the effect that the House of Lords to take note of the report prepared under subsection (1), to be moved in the House of Lords by a minister of the Crown.

(4) The motions required under subsections (3)(a) and (3)(b) must be moved in the relevant House by a Minister of the Crown within the period of five calendar days beginning with the end of the day on which the report under subsection (1) is published.

(5) If the motion tabled in the House of Commons is rejected or amended, the Secretary of State must, within 30 calendar days, publish a further report under subsection (1) and make arrangements for further approval equivalent to those under subsection (2).

(6) The Secretary of State shall make a further report under subsection (1) at least every 90 calendar days beginning with the day of any rejection or amendment by the House of Commons under subsection (5) until otherwise indicated by a resolution of the House of Commons.

(7) In this section—

‘leaseholder’ means the registered legal owner of a long lease; and

‘leasehold flat’ means a flat owned by a leaseholder; and

‘long lease’ has the same meaning as in section 76 of the Commonhold and Leasehold Reform Act 2002.

(8) This section comes into force on the day this Act is passed.”

This new clause is suggested before clause 126. It places a time-limited duty on the Secretary of State to consider making designations under Part XVI of the Housing Act 1985 to provide funding for cladding and fire safety remediation and for Parliament to approve the plans for doing so.

New clause 7—Building Safety Indemnity Scheme—

“(1) There shall be a body called the ‘Building Safety Indemnity Scheme’ (referred to in this Act as ‘the Scheme’).

(2) The purpose of the Scheme shall be to collect money from levies and to disburse the money raised from those levies in the form of grants to leaseholders to pay all or any part of the following types of costs—

(a) remediation of any defect in any external wall of any building containing two or more residential units; or

(b) remediation of any defect in any attachment to any external wall of any building containing two or more residential units; or

(c) remediation of any internal or external defect other than a defect described in paragraphs (a) or (b); or

(d) any building safety works carried out by an accountable person under section 86; or

(e) any other cost of a type specified by the Secretary of State in regulations made under this section.

(3) The Scheme may disburse money for the benefit of leaseholders in any type of building, whether or not a higher-risk building and whether or not the building was first occupied before the coming into force of this Act.

(4) The levy imposed by the Scheme shall be determined by reference to each of the following—

(a) the Scheme’s best estimate of the reasonably likely total cost of grants to cover any type of cost described in subsection (2);

(b) the Scheme’s best estimate of the costs of raising and administering the levy; and

(c) the Scheme’s best estimate of the costs of processing applications for grants to leaseholders and disbursing funds to leaseholders from monies raised by the levy.

(5) Members of the Scheme subject to levies shall include the following—

(a) any person seeking building control approval;

(b) any prescribed insurer providing buildings insurance to buildings containing two or more residential units, whether or not the buildings are higher-risk buildings;

(c) any prescribed supplier of construction products subject to regulations made under Schedule 9 to this Act;

(d) any prescribed lender providing mortgage finance in the United Kingdom, whether or not secured over residential units in higher-risk buildings; and

(e) any other person whom the Secretary of State considers appropriate.

(6) The Scheme is to consult with levy paying members before determining the amount and duration of any levy.

(7) The Scheme must provide a process by which leaseholders, or persons acting on behalf of leaseholders, can apply for grants for the types of costs specified in subsection (2).

(8) The Scheme must provide an appeals process for the Scheme’s decisions regarding—

(a) the determination of the amount of any levy; or

(b) the determination of any grant application.

(9) A building control authority may not give building control approval to anyone unless—

(a) the person seeking building control approval is a registered member of the Scheme, or that person becomes a registered member of the Scheme before the building control approval is given; and

(b) the person seeking building control approval pays all levies made on that person by the Scheme before the building control approval is given.

(10) The Secretary of State must provide that any regulations made under Schedule 9 to this Act provide, as a condition of approval of any regulated construction product, that any prescribed supplier of such a product—

(a) is a registered member of the Scheme, or that prescribed supplier becomes a registered member of the Scheme; and

(b) that the prescribed supplier pays all levies made on that person by the Scheme.

(11) Any liability to pay a levy under this section does not affect the liability of the same person to pay an additional levy under section 57 of this Act.

(12) Within a period of 12 months beginning with the coming into force of this section, the Secretary of State must make regulations providing for—

(a) the appointment of a board to oversee the Scheme;

(b) the staffing of the Scheme;

(c) the creation and maintenance of a public register of members of the Scheme;

(d) the preparation of the best estimates described in subsection (4);

(e) the amount, manner and timing of payment of the levies on members of the Scheme under this section;

(f) the process of joining the Scheme;

(g) the process of leaseholders applying to the Scheme for grants towards any of the types of costs specified in subsection (2);

(h) the process for handling any appeals against decisions of the Scheme on any levy or any grant;

(i) the Scheme to make an annual report to Parliament; and

(j) any other matters consequential to the Scheme’s operation.

(13) Regulations made under this section are to be made by statutory instrument.

(14) A statutory instrument under this section may not be made unless a draft of the instrument has been laid before and approved by a resolution of each House of Parliament.

(15) In this section—

‘building’ has the same meaning as in section 29;

‘building control approval’ has the same meaning as in paragraph (1B)(2) of Schedule 1 to the Building Act 1984;

‘building control authority’ has the same meaning as in section 121A of the Building Act 1984;

‘defect’ means anything posing any risk to the spread of fire, the structural integrity of the building or the ability of people to evacuate the building, including but not limited to any risk identified in guidance issued under Article 50 of the Regulatory Reform (Fire Safety) Order 2005 (S.I. 2005/1541) or any risk identified in regulations made under section 59;

‘external wall’ has the same meaning as in Article 6 of the Regulatory Reform (Fire Safety) Order 2005 (S.I. 2005/1541);

‘higher-risk building’ has the same meaning as in section 59;

‘prescribed’ means prescribed by regulations made by the Secretary of State;

‘remediation’ means any step taken to eradicate or to mitigate a defect, including employment of any person to temporarily assist in evacuation of any part of a building, and whether or not the defect in question existed at the date any residential unit in the building was first occupied. Remediation does not include anything required in consequence of omitting to effect reasonable repairs or maintenance to all or any part of the building over time, or anything which is the responsibility of an occupant of a residential unit within the building;

‘residential unit’ has the same meaning as in section 29.

(16) This section shall come into force on the day this Act is passed.”

This new clause is suggested after clause 126, requiring the government to establish a comprehensive fund, equivalent to the Motor Insurers’ Bureau, to provide grants to remediate cladding and fire safety defects of all descriptions, paid for by levies on developers, building insurers and mortgage lenders.

New clause 8—Implied terms in residential building and residential renovation contracts—

“(1) Every residential building contract is to be taken to contain terms that—

(a) the residential unit is fit for the purpose of ordinary residential occupation and is likely to remain so for a reasonable period if kept in appropriate repair;

(b) the residential unit in question is constructed in all material respects as described or stated on the approved plans;

(c) the residential unit is not subject to any building safety risk;

(d) the materials incorporated in the residential unit are as described in any approved plans;

(e) the materials incorporated in the residential unit are of satisfactory quality;

(f) the design of the residential unit is of a reasonable standard;

(g) the design of the residential unit is prepared with reasonable care and skill;

(h) all works in connection with the construction of the residential unit are executed with reasonable care and skill; and

(i) the residential unit complies in all material respects with all applicable statutory requirements and with all applicable building regulations in force as at the date of completion.

(2) Every residential renovation contract is to be taken to contain terms that any renovation works—

(a) do not render the unit unfit for the purpose of ordinary residential occupation;

(b) do not create any building safety risk;

(c) do not involve the incorporation of materials in the residential unit which are not as described in any approved plans;

(d) do not involve the incorporation of materials in the residential unit which are not of satisfactory quality;

(e) are executed with reasonable care and skill; and

(f) do not render the residential unit materially non-compliant with any applicable statutory requirement or with any applicable requirement of building regulations in force as at the date of completion.

(3) For the purposes of subsections (1) and (2), where the residential unit forms part of a building consisting of two or more residential units, the internal and external common parts of that building necessary for the reasonable occupation of any of the residential units are also to be taken to be subject to the same terms.

(4) A residential unit is fit for the ordinary purpose of residential occupation if it would be regarded as such by a reasonable person and taking into account—

(a) the ordinary costs of repair and maintenance of that residential unit by reference to that unit’s location and specific characteristics;

(b) any marketing materials provided before the sale of the residential unit in question; and

(c) whether that unit was marketed, designed or intended to be occupied by any particular class of persons, whether by age, by gender or by physical or mental disability.

(5) For the purposes of this section—

(a) a matter is material if it would be considered material if known or discovered by a reasonable purchaser of that residential unit before completing a purchase of that residential unit on ordinary commercial terms;

(b) a design is of a reasonable standard if a designer of average competence would have produced the same or a similar design;

(c) a material is of satisfactory quality if it would meet the requirements for satisfactory quality of goods under section 9 of the Consumer Rights Act 2015; and

(d) a material is as described if it would meet the requirements for description of goods under section 11 of the Consumer Rights Act 2015.

(6) The terms taken to be included in any residential building contract or residential renovation contract are enforceable by any owner of the residential unit provided or renovated under the contract in question.

(7) A term of a residential building contract or a residential renovation contract is not binding on the owner of a residential unit provided or renovated pursuant to that contract if it would exclude or restrict any liability in relation to the terms implied by this section.

(8) The reference in subsection (7) to excluding or restricting a liability also includes preventing an obligation or duty arising or limiting its extent.

(9) An agreement in writing to submit present or future differences to arbitration is not to be regarded as excluding or restricting any liability for the purposes of this section.

(10) In this section—

‘approved plans’ means any document submitted as part of obtaining building control approval;

‘building control approval’ has the same meaning as in paragraph (1B) of Schedule 1 to the Building Act 1984;

‘building safety risk’ has the same meaning as in section 59, whether or not the residential unit is in a higher-risk building;

‘higher-risk building’ has the same meaning as in section 62;

‘owner’ means the registered legal owner of the residential unit from time to time, including any trustee holding a beneficial interest on behalf of a third party and any transferee or assignee of the original owner;

‘residential unit’ has the same meaning as in section 29;

‘residential building contract’ means a contract made in the course of business involving work on or in connection with the construction of a residential unit (whether the dwelling is provided by the erection or by the conversion or enlargement of an existing building);

‘residential renovation contract’ means a contract made in the course of business involving work on an existing residential unit, except where it is expected that, on completion of the work, it will have ceased to be a residential unit or will otherwise have ceased to exist.”

This new clause, proposed to be inserted after clause 128 strengthens consumer rights for future buyers by implying terms that houses and flats are built, and are renovated, to reasonable standards of quality and compliant in all material respects with the law and with building regulations.

New clause 9—Implied terms: limitation—

“(1) The Limitation Act 1980 is amended as follows.

(2) After section 5 insert—

‘5A Time limit for actions related to breach of implied terms in residential building contracts and residential renovation contracts

An action in respect of the breach of the term implied into a residential building contract or a residential renovation contract by section (Implied terms in residential building and residential renovation contracts) of the Building Safety Act 2021 may not be brought after the expiration of 25 years from the date on which the cause of action accrued.’”

This new clause provides for a 25 year limitation period for breaches of the terms implied by the amendment proposed above.

New clause 10—Implied terms: mandatory insurance—

“(1) No member of the new homes ombudsman scheme created by this Act may offer for sale or sell any residential unit unless —

(a) every potential purchaser is provided on request with an accurate written summary of the terms of a prescribed policy applying to the residential unit when completed; and

(b) in accordance with any relevant regulation made under this section, or under section 131, or under section 132, the person offering for sale or the seller of the residential unit arranges a valid prescribed policy and provides a copy of a valid prescribed policy given to the purchaser of the residential unit on the day of the transfer to the purchaser of legal title in the residential unit.

(2) Any person in the course of business providing a residential unit under a residential building contract or renovations to a residential unit under a residential renovation contract must obtain a valid prescribed policy.

(3) No term of any residential building contract or residential renovation contract is enforceable unless a valid prescribed policy is in force in respect of such a contract.

(4) Within a period of six months beginning on the day this section comes into force, the Secretary of State must make regulations prescribing insurance terms for the purposes for this section, including—

(a) the creditworthiness of any insurer or warranty scheme under this section;

(b) the name of any warranty scheme which in the opinion of the Secretary of State achieves the purposes of this section;

(c) the minimum terms of any insurance or warranty under this section;

(d) that any policy or warranty scheme also provides reasonably adequate cover for any claim under sections 1 and 2A of the Defective Premises Act 1972 and section 38 of the Building Act 1984;

(e) a policy term or a warranty term of not less than the limitation period for making claims under any term implied into a residential building contract or residential renovation contract by this Act; and

(f) to bring into force section [Implied terms in residential building and residential renovation contracts] and section [Implied terms: limitation].

(5) Regulations made under this section are to be made by statutory instrument.

(6) A statutory instrument under this section may not be made unless a draft of the instrument has been laid before and approved by a resolution of each House of Parliament.

(7) In this section—

‘new homes ombudsman scheme’ means the scheme established under section 129;

‘prescribed’ means prescribed in regulations made by the Secretary of State, whether under this section, or under section 131, or under section 132;

‘residential building contract’ has the same meaning as in section [Implied terms in residential building and residential renovation contracts];

‘residential renovation contract’ has the same meaning as in section [Implied terms in residential building and residential renovation contracts]; and

‘residential unit’ has the same meaning as in section 29.

(8) This section shall come into force on the day this Act is passed.”

This new clause provides that members of the New Homes Ombudsman Scheme may not sell any new flat or house unless they provide insurance for 25-years to cover breach of implied terms as to quality.

New clause 11—Limitation Period for claims under section 38 of the Building Act 1984—

“(1) Section 38 of the Building Act 1984 is amended as follows.

(2) In section 38(4) after ‘includes’ insert ‘economic loss,’.

(3) After section 38(4) insert—

‘(5) No right of action for damages for economic loss under this section shall accrue until any person to whom the duty is owed has actual knowledge of breach that duty.

(6) Notwithstanding anything in subsection (5) or any regulations made under this section, an action for damages for economic loss under this section shall not be brought after the expiration of twenty-five years from the date the breach of duty occurred.

(7) For the purposes of subsection (6), where there is more than one actionable breach of duty causing economic loss and the breaches in question occurred on different dates, then time runs only from the date of the last such breach.

(8) Any right of action under this section other than a right of action for damages for economic loss shall be subject to section 11 and section 14A of the Limitation Act 1980.’

(4) This section shall come into force at the end of the period of two months beginning on the day on which this Act is passed.”

This new clause proposed for the Building Act 1984 enables claims for recovery of monetary damages (economic loss) and provides that the time limit for claims start when a resident becomes aware of a breach, subject to a 25-year longstop date.

New clause 12—Abolition of the rule preventing recovery of economic loss in certain actions relating to damage or defects in buildings—

“(1) In any prescribed statutory action for damages, there is no bar to recovering economic loss.

(2) In any action for damages for negligence in relation to the construction or renovation of any residential unit, other than an action for damages to which section 11 or section 14A of the Limitation Act 1980 applies, there is no bar to recovering economic loss.

(3) This section shall apply to any right of action accruing on or after the day this section comes into force.

(4) For the purposes of this section —

‘prescribed statutory action for damages’ means any action for damages for breach of section 1 or section 2A of the Defective Premises Act 1972.

‘residential unit’ means any dwelling or other unit of residential accommodation, including any internal or external common parts of any building necessary for the occupation of that residential unit.

(5) This section shall come into force at the end of the period of two months beginning on the day on which this Act is passed.”

This new clause abolishes the rule preventing the recovery of economic loss from developers and other professionals in claims for negligence and in claims under the Defective Premises Act 1972.

New clause 13—Leaseholder Costs Protection—

“(1) This section applies to a relevant building where a landlord has carried out any fire safety works to a building in consequence of any provision, duty or guidance arising from—

(a) the Housing Act 2004;

(b) the Regulatory Reform (Fire Safety Order) 2005;

(c) this Act;

(d) any direction, recommendation or suggestion of any public authority or regulatory body; and

(e) such other circumstances or enactment as the Secretary of State may prescribe by regulations.

(2) If any of the conditions in subsection (1) are met, then the costs incurred by the landlord in connection with those matters may not be the subject of a demand for payment of service charges, administration charges or any other charge permitted or authorised by any provision of any long lease.

(3) Any demand for payment which contravenes this section shall be of no force or effect and will have no validity in law.

(4) Any covenant or agreement, whether contained in a lease or in an agreement collateral to such a lease, is void insofar as it purports to authorise any forfeiture or impose on the tenant any penalty, disability or obligation in the event of the tenant refusing, failing or declining to make a payment to which this section applies.

(5) This section applies to demands for payment before the landlord incurs the costs in the same way as it applies to demands for payment made after the costs have been incurred.

(6) This section does not apply where the landlord is a company in which the majority of the shares are held by leaseholders or where the landlord is an RTM company.

(7) For the purposes of this section, a relevant building is any building containing one or more residential dwellings let on a long lease.

(8) In this section—

‘administration charge’ has the meaning given by Schedule 11 to the Commonhold and Leasehold Reform Act 2002; ‘fire safety works’ means any work or service carried out for the purpose of eradicating or mitigating (whether permanently or temporarily) any risk associated with the spread of fire, the structural integrity of the building or the ability of people to evacuate the building;

‘long lease’ has the meaning given by sections 76 and 77 of the Commonhold and Leasehold Reform Act 2002;

‘residential dwelling’ means any dwelling or other unit of residential accommodation, including any internal or external common parts of any building necessary for the occupation of that residential unit;

‘service charge’ has the meaning given by section 18 of the Landlord and Tenant Act 1985;

‘RTM company’ has the meaning given by section 113 of the Commonhold and Leasehold Reform Act 2002.

(9) This section comes into force on the day on which this Act is passed.”

This new clause prevents the costs of any fire safety or building safety remedial works being passed on to leaseholders.

Amendment 2, in clause 126, page 133, line 17, at end insert—

“(d) In respect of remediation works completed before the coming into force of this section, apply for any refund of VAT due under section 35(1A)(d) of the Value Added Tax Act 1994 and credit the whole amount of any such refund received to leaseholders pro-rata in accordance with the terms of the lease.”

This amendment is consequential on NC4. Where works have already been carried out, this new subclause requires the landlord to obtain any retrospective VAT refund and to credit the whole amount of that VAT refund to leaseholders.

Amendment 5, in clause 127, page 135, line 29, leave out

“at the time the work is completed”

and insert

“when any person to whom the duty under this section is owed has actual knowledge of breach of that duty.”

This amendment provides that time to make a claim in respect of building renovations under section 2A of the Defective Premises Act 1972 only runs from the date a resident has knowledge of the breach, subject to a 25-year longstop.

Amendment 6, in clause 127, page 135, line 33, at end insert—

“(9) Notwithstanding anything in subsection (8), an action for damages for breach of the duty in this section, insofar as that action relates only to the original work in question, shall not be brought after the expiration of twenty-five years from the date the work in question is completed.”

This amendment provides that time to make a claim in respect of building renovations under section 2A of the Defective Premises Act 1972 only runs from the date a resident has knowledge of the breach, subject to a 25-year longstop.

Amendment 4, in clause 128, page 136, line 1, leave out “15 years” insert “25 years”.

This amendment proposes a longer period for claims under the Defective Premises Act 1972 and the Building Act 1984 considering the recent history of cladding and fire safety related defects and retrospective guidance issued by the government.

Government amendment 41.

Amendment 7, in clause 128, page 136, line 11, at end insert—

“(2A) In section 1(5) of the Defective Premises Act 1972 for ‘time when the dwelling was completed’ substitute ‘time when any person to whom the duty under this section is owed has actual knowledge of breach of that duty’.

(2B) After section 1(5) of the Defective Premises Act 1972 insert—

(6) Notwithstanding anything in subsection (5), an action for damages for breach of the duty in this section, insofar as that action relates only to the original construction of the building in question, shall not be brought after the expiration of twenty-five years from the time the dwelling is completed.’”

This amendment provides that time to bring a claim for damages under section 1 of the Defective Premises Act 1972 only runs from the date a resident has knowledge of a breach, subject to a 25-year longstop in relation to claims related to failures during the original construction.

Government amendment 42.

Amendment 8, in clause 128, page 136, line 19, leave out subsection (5).

The Human Rights Act 1998 already protects defendants’ rights in relation to retrospectively extended limitation periods. Removing subsection (5) removes the material risk a court may construe clause 128 in a way that means it has no practical benefit and will lead to years of costly litigation for leaseholders.

Amendment 9, in clause 128, page 136, leave out line 27 and line 28.

This amendment is consequential to Amendment 8 because the defined term “Convention Rights” is no longer required.

Government amendment 43.

Amendment 10, in clause 128, page 136, line 29, leave out “90 days” and insert “2 years”.

This amendment allows a period of up to 2 years, instead of 90 days, to obtain the necessary expert evidence required to issue viable claims under the Defective Premises Act 1972.

Government amendments 44 to 55.

Amendment 3, in clause 132, page 139, line 17, at end insert—

“(f) require members of the scheme under paragraph (a) to obtain policies of insurance that meet the requirements of section (Implied terms: mandatory insurance).”

Government amendments 56 to 58.

Government new schedule 2—Amendments in connection with the new homes ombudsman scheme.

Government amendment 71 and 72.

Government amendment 59.

Government amendment 62.

Government amendments 65 to 69.

[Christopher Pincher]

It is a great pleasure to report to the House, to move the Government’s new clauses and to be able listen to the important debate that we will have on the Bill’s remaining stages. Over the past few months, the Bill has been subject to scrutiny and debate not only in Committee but through ongoing debate in this House, in the other place and, indeed, throughout the country.

Only last week, my right hon. Friend the Secretary of State for Levelling Up, Housing and Communities updated the House on our progress in addressing the ongoing issues and protecting leaseholders. We have brought the Bill forward on Report because we are clear that it needs to move forward, but we are conscious that further work needs to be done to it and look forward to working with parties from across the House and with interested parties to ensure that it is further improved in the other place.

--- Later in debate ---

[Several hon. Members rose—]

[Madam Deputy Speaker (Dame Eleanor Laing)]

Order. I remind the House that today’s proceedings are divided into three. This is the first group of amendments, new clauses and new schedules that relates to part 5 of the Bill. There will then be another stage on Report that will allow Members to speak to amendments on the other parts of the Bill. After that, there will be Third Reading. Members should not make general speeches about how they feel about the Bill at this point; this part of the proceedings very specifically relates to part 5.

As all the Back-Bench amendments to part 5 have been tabled by Mr Stephen McPartland, I will call him to speak first. At this point, I am not putting on a time limit, because I hope that we will manage without one, but we have less than an hour left for this part of the Bill, so I hope that Members will bear that in mind.

[Stephen McPartland]

In the interest of helping with time, I assure you, Madam Deputy Speaker, that after what the Minister said and the conversations that we have had in the past few days and overnight, we will not be pressing any of our amendments, which are probing amendments, to a vote at the end of the debate. That will hopefully help the next debate.

Like you, Madam Deputy Speaker, I saw many hon. Members on both sides of the House stand to signal that they wish to speak. I will try to keep my remarks as brief as possible so that some of them get more than their normal three minutes on this issue. They are all watching eagerly, so I will do my best.

I start by recording my thanks to the Minister, the Secretary of State and the Prime Minister. The Prime Minister’s intervention has been key in getting us to where we are on leaseholders. He has personally got involved and tried to ensure that we can support them. It is a subject that is close to his heart. To be frank, without his personal intervention and support, we would not have got to where we are, which is a good place for leaseholders.

Millions of leaseholders up and down the country are watching this debate and they are terrified about what is happening to them. They have had the fear of bankruptcy hanging over them for several years. We have been running this campaign for the past 18 months. In fairness to the Government and the Minister, we now have over £9 billion of Government support put forward with other funds on top, so it would be churlish of us, with the very technical amendments I am going to speak to shortly, to try to hold the Government to these specific issues. The Minister, the Secretary of State and the Prime Minister himself have made it clear that they are very keen to work with us and cross-party to improve the Bill in the Lords and when it comes back to this House, and for that I put on record my thanks.

--- Later in debate ---

[Several hon. Members rose—]

[Madam Deputy Speaker (Dame Eleanor Laing)]

We have less than three quarters of an hour left, so I will have to impose an initial time limit of four minutes on Back-Bench speeches.

[Bob Blackman]

It is a pleasure to follow the hon. Member for Sheffield South East (Mr Betts), the Chairman of the Select Committee. He and I have spent many happy hours poring over this draft Bill, in the first place, and, going forward, different reports.

Essentially, there are four separate categories on remediation that fit within the Building Safety Bill. The first, as everyone agrees without question, is, for tall buildings of seven storeys and above, removing the cladding and making the building safe. The second is the buildings of six storeys and below for which the Government came up with the forced loan scheme. I am delighted to see the death of that scheme. I could never see how it was going to work, so that is good news. The other two categories are the tall buildings with fire safety defects and the buildings of six storeys and below with fire safety defects. We can all agree that the one set of people who should not have to pay for remedying this are the leaseholders, because they never designed them and they never knew anything about them before they moved in. However, this scandal still goes on. Only last week, a planning application was presented to the planning committee at Tower Hamlets for a building of 52 storeys with only one staircase as a route to escape. The building industry does not show any signs of correcting what has been done, so we have to correct it.

I take my right hon. Friend the Minister’s remarks seriously. I look forward to the amendments that are going to be moved in the other place that I hope we can then debate here. However, these are very complex areas and there are immense questions to be answered. I well remember that when we debated the Bill that became the Fire Safety Act 2021, we were told that protecting leaseholders should not be done then but we should wait for the Building Safety Bill—and here we are, right now. The crunch issue is that leaseholders up and down the country have received enormous bills. Some have made arrangements to pay; some have even paid them. They are told, “Tough—you’ve paid and you won’t be compensated as a result.” If we had moved the amendments to the Fire Safety Act, we would have protected those leaseholders, but we failed to do so.

As I have said to the Secretary of State, I welcome his commitment to resolve this issue, but I trust that when we come to the amendments on remediation, we will do two things. The first is that we will retrospectively put a date on what happens. It will not be acceptable to wait until this Bill becomes law and facilitate the unscrupulous individuals who may bill the leaseholders between now and then, which would be outrageous.

The other issue that is terribly important in this whole process is that at some stage, with regard to all the buildings that we are talking about, someone signed off on their being in accordance with regulations. Insurance covers that particular aspect, so here is an alternative solution. Given that insurance companies insured the people who signed these buildings off, and they were clearly not in accordance with the regulations at the time, let us make claims against the insurance companies that still exist and could be made to pay for this remediation. That would be a much better solution than either the taxpayer paying or robbing the leaseholders. It would at least give us some protection.

I welcome the Government amendments, and I welcome the conversion that has taken place in the Department to what the Select Committee said in the first place. We are making progress. We are almost there. We have only a little a little way to go before every single one of our recommendations has been endorsed. We look forward to that happening, and indeed to having a Bill of which we can all be proud, which protects leaseholders and protects the industry for the future.

Building Safety Bill

Baroness Laing of Elderslie Excerpts

2nd reading
Wednesday 21st July 2021 Commons Chamber

Second Reading

[Madam Deputy Speaker (Dame Eleanor Laing)]

Before I call the Secretary of State to move the Second Reading motion, the House will not be surprised to hear that there will be an initial time limit on Back-Bench speeches of four minutes, which is likely to reduce later in the day. I say that so that Members can cut out the middle pages of their speeches. I call Secretary of State Robert Jenrick.

--- Later in debate ---

[Lucy Powell (Manchester Central) (Lab/Co-op)]

On a point of order, Madam Deputy Speaker—

[Madam Deputy Speaker (Dame Eleanor Laing)]

Order. We suddenly have a flurry of activity. Interventions: hold for a moment. Secretary of State: pause for a moment. I call the shadow Secretary of State, Lucy Powell, to make her point of order.

[Lucy Powell]

On a point of order, Madam Deputy Speaker. I just wondered if I could get your advice. Is it normal practice that, moments before an important debate with dozens of Members down to speak, the Minister lays a ministerial statement about the matter before us that is not yet online so none of us is able to see it, therefore avoiding any scrutiny of the said ministerial statement? Is that in order, Madam Deputy Speaker?

[Madam Deputy Speaker]

I am sure that it is in order, and that is the question that the hon. Lady is asking me as the Chair. It is in order for the Minister to lay a written statement when he decides it is the right time to do that, but if there is a question of information that the hon. Lady is suggesting ought to be before the House in order to inform Members about the Bill that is before us now, I cannot make a judgment because I do not know what is in that statement. However, if the Secretary of State would care to answer that point, it might help the House.

[Sir Mike Penning (Hemel Hempstead) (Con)]

Further to that point of order, Madam Deputy Speaker. All the documents that are relevant to this debate on Second Reading of the Bill are on the Table except the written ministerial statement that the Secretary of State has just referred to. For some of us who have been in the Chamber for some hours now, I am sorry, Secretary of State, but that is not acceptable.

[Madam Deputy Speaker]

The right hon. Gentleman is not speaking to the Secretary of State; he is speaking to me. I cannot see what is on the Table, and the Clerk is not telling me that the right hon. Gentleman is wrong. Let us just clear up this matter.

[Stephen Doughty]

Further to that point of order, Madam Deputy Speaker. I have just been out to the Table Office and they have no copy of the statement. There is a notice of a statement coming entitled “Housing Update”, but it is yet to be provided to them or online, so Members are unable to get hold of the important information the Secretary of State has just referred to.

[Madam Deputy Speaker]

I thank the hon. Gentleman for that point of order. Would the Secretary of State care to clarify the matter?

[Robert Jenrick]

I would be delighted to, Madam Deputy Speaker. A written ministerial statement will be laid shortly, which is market-sensitive. It is difficult to suggest that there is no scrutiny, because I am here before the House to explain that statement in the context of the wider debate. [Interruption.] If the hon. Member for Manchester Central (Lucy Powell) will give me a few moments, I will be very happy to set out, in the remarks I am about to make, exactly what we have agreed with lenders and the position we have come to.

--- Later in debate ---

[Several hon. Members rose—]

[Madam Deputy Speaker]

Order. The Secretary of State has explained that the reason for the specific timing of the laying of the statement is that it is market-sensitive. If the Secretary of State says it is market-sensitive then I accept that it is market-sensitive. I trust that it will be available very shortly?

[Robert Jenrick]

indicated assent.

[Madam Deputy Speaker]

Very shortly. I am quite sure that we will be able to facilitate Members holding the Secretary of State to account for the contents of that written statement when it becomes available, because he is here in the Chamber. I trust that it will become available before the Secretary of State concludes his opening remarks.

[Robert Jenrick]

Absolutely. Thank you, Madam Deputy Speaker. I chose to make the statement directly to the House of Commons and I will come on in a moment to set out the contents of it. The written ministerial statement merely summarises that.

In the actions we have taken and those we take today, we have always prioritised public safety. As I said earlier, the Bill before us will create a strong regulatory regime for all new high-rise buildings. However, it is also important that we put the risk of a fire, and in particular the risk of a fatal fire, into context. It is very low for all buildings of all heights. Dwelling fires have reduced by more than a quarter over the last decade and are now at an all-time low. It is right that we address safety issues where they exist and are a threat to life, but we must do so in a proportionate way guided by expert advice. That is why, through the Bill, we are drawing a very clear line at 18 metres for the enhanced regulatory regime. That is on the advice of building and fire experts that those are the buildings that pose the greatest safety risks in the event of fire spread or structural failure, albeit even there the risk should not be overstated given the low occurrence of fires and the even lower occurrence of fatalities. We are also including hospitals and care homes that meet the height threshold during their design and construction.

--- Later in debate ---

[Stephen Doughty]

On a point of order, Madam Deputy Speaker. I regret to have to raise this matter as a point of order, but the written statement that the Secretary of State has laid makes no clarification about whether this approach applies to England only, to England and Wales, or indeed to the whole UK. Given that it is UK-wide and market-sensitive—there are many leaseholders who will be concerned in all parts of the UK—and given that it applies to UK-wide lenders, with significant financial implications, how can I get an answer from the Secretary of State for the leaseholders who will be watching this debate in other parts of the United Kingdom? It would be very helpful if the Secretary of State could just confirm that point or if he would take a simple intervention to clarify it.

[Madam Deputy Speaker (Dame Eleanor Laing)]

I thank the hon. Gentleman for what I consider to be properly a point of order. The Secretary of State has most courteously explained to the House that the statement that is now forthcoming is market sensitive. I have had a chance to glance at it and I understand that it is indeed market sensitive, so I can understand, and I think the whole House will now understand, why the Secretary of State issued it at the point that he did.

I have to say to the House that there seems to have been some delay in the Vote Office and in the workings of the House, and for that, on behalf of the House authorities, I apologise to Members and to the Secretary of State. I thank the Opposition Whips for giving me a copy, since nobody else did—

[Sir Peter Bottomley]

rose—

[Madam Deputy Speaker]

I am still finishing my response to the point of order, Sir Peter.

I think there are some points in the statement that the Secretary of State will wish to clarify. I am not putting a time constraint on him, as I normally would, for finishing his Second Reading speech, because in addition to that speech it would be appropriate for him to take two or three questions on his written statement.

[Sir Peter Bottomley]

Further to that point of order, Madam Deputy Speaker. The written statement has the number HCWS228; an online search brings up one with a similar number from January 2015. Could the House authorities see whether they can get the statement online so that those Members who are participating virtually also have the chance to read it?

[Madam Deputy Speaker]

I thank the hon. Gentleman for that point of order and I reiterate it. I wonder whether the House authorities have done that—I do not know but I ask them to do so immediately.

[Robert Jenrick]

Thank you, Madam Deputy Speaker—

--- Later in debate ---

[Several hon. Members rose—]

[Madam Deputy Speaker (Dame Eleanor Laing)]

Before I call the shadow Secretary of State, and further to the point of order from the hon. Member for Worthing West (Sir Peter Bottomley), the written ministerial statement is now available on the House papers app, and it will very shortly be available on the Parliament website. I hope that means Members who are participating virtually will be able to access it. Again, I apologise on behalf of the House authorities for the shambles after the statement was put in the Vote Office, because it was not then distributed properly here in the Chamber. We cannot blame the Secretary of State for that, as I appreciate the timing was because of market sensitivity.

As I requested that the Secretary of State stay at the Dispatch Box rather longer in order to take points specifically on the statement, he has, of course, made a much longer speech than one would have anticipated and, therefore, the time limit for Back-Bench speeches will be not four minutes but three minutes. I hope Members feel that many of them have already had a chance to ask pertinent questions of the Secretary of State.

Building Safety

Baroness Laing of Elderslie Excerpts

Tuesday 29th June 2021 Commons Chamber

[Luke Hall]

I hope the hon. Gentleman will forgive me, but I must get through the many points that have been raised. I want to try to answer as many as I can and leave time for the Chairman of the Select Committee to sum up. If I get through all the questions, I will certainly give way.

We are trying to take a safety-led approach. We have prioritised high-rise buildings of 18 metres and above, a point that was raised a number of times today. We have put in place a funding package of more than £5 billion for the building safety programme. That is the largest ever Government investment in building safety and it has been designed particularly to accelerate the pace of work on remediating the highest-risk and most expensive defects related to unsafe cladding such as ACM cladding and high-pressure laminates, first filling in where developers or building owners have been unable or simply unwilling to pay. Despite many of the challenges of the past months, we have made significant progress. Over 95% of high-rise buildings with unsafe ACM cladding identified by the beginning of last year have now been remediated or works are on site right now getting on with the job. Some 15,000 homes are now clear of unsafe ACM cladding, with the work finished.

Support goes well beyond ACM cladding removal. Where there are buildings that have other unsafe cladding systems, we are taking measures to protect residents’ safety and their exposure to disproportionate costs. Our building safety fund will remove unsafe non-ACM cladding on high-rise buildings, get that cladding replaced, and get it done as fast as possible. Over 1,000 decisions have been made. Despite many building owners failing to provide the basic information required, we have already allocated over £400 million, with 685 buildings now proceeding with a full application. With the announcement in February of an additional £3.5 billion of funding being made available, we will soon be able to extend that support to even more affected households. The public funding does not absolve the industry from taking responsibility for failures that led to unsafe cladding materials being put on these buildings in the first place. We expect responsible organisations to live up to their obligations. Where they have not, we have supported, and will continue to support, enforcement actions to compel them to do so.

We are also determined to ensure that these high-rise buildings are somewhere decent, safe and secure, and can be bought with a mortgage sold without unnecessary red tape and insured at a fair price. The lending and insurance industries continue to be risk-averse when it comes to high-rise residential buildings. That is why we are working to inject a more proportionate approach into the market, and that is bearing fruit. The majority of lenders—about 80% of the mortgage market—now take a less risk-averse approach to the assessment of high-rise buildings.

I am pleased that the guidance from the Royal Institute of Chartered Surveyors means that nearly half a million flat owners will no longer need to go through the onerous process of requesting an EWS1 form. Recent data from one of the major lenders suggests that an EWS1 already exists for 50% of mortgage applications where one has been requested, and we are working to ensure that this picture continues to improve. Lenders are also reporting that fewer flats require an EWS1, and of that those that do, many do not need expensive remediation work to be carried out. This will make a huge difference to house owners and potential buyers as well.

For buildings that might need further investigations, we are making that easier by providing nearly £700,000 of funding to train up to 2,000 surveyors, working with the British Standards Institution to set standards and develop a bespoke insurance model to ensure that surveyors can continue to pick up this work. We recognise that access to affordable building insurance for high-rise buildings is an issue, and we are working with the industry to support market solutions. Some have already decided to step into the market for new customers, and of course we want others to follow.

The hon. Member for Edinburgh North and Leith (Deidre Brock) raised the issue of building industry contributions. We have been clear that building owners and the industry should make buildings safe without passing costs on to leaseholders. Owners should consider all routes to meet costs, protecting leaseholders where they can—for example, through warranties and recovering costs from contractors for incorrect or poor-quality work. We have seen many responsible developers and building owners doing this. Taylor Wimpey has set aside £165 million, Barratts £82 million, Persimmon £75 million, and Bellway £130 million. But where companies have not lived up to their responsibilities, it would be unfair for taxpayers, many of whom are not homeowners themselves, to foot the bill. That is why we have announced a new developer levy and a new tax ensuring that the industry makes a fair contribution to the cost of remediating historical safety defects. That will target developers seeking permission to build higher-rise buildings in England under the new regime that we are introducing through the building safety Bill, and we have already set out to consult on a new tax that would be levied on the largest housing developers.

I note the suggestion by my hon. Friend the Member for Kensington (Felicity Buchan) of a tax on building products. I thank her for that and I am happy to discuss it with her further. A number of hon. Members mentioned the building safety Bill, and the hon. Member for Sheffield South East (Mr Betts) asked when it will be published. I know he hears the word “imminent” many times, but this truly is imminent, and I can assure him of that.

We must ensure, as we look to the future, that nobody is put at risk by unsafe homes again. We must put in place proactive mechanisms for managing fire and structural safety risks, as well as ensuring that residents and leaseholders are kept safe and feel empowered to tackle safety defects and shoddy workmanship. That is what the building safety Bill aims to deliver through the biggest improvement to building safety for a generation. It will ensure greater accountability and responsibility for fire and structural safety issues throughout the life cycle of buildings.

Building on the Fire Safety Act 2021, the building safety Bill will establish a new building safety regulator to swiftly hold to account anybody who does not follow the rules. It will ensure that products used in the construction of buildings are bound by rigorous safety standards, and it will give residents a stronger voice in the system through the creation of a statutory residents panel, which will empower residents to influence and contribute to the work of the building safety regulator. Additionally, a new building safety charge will give leaseholders greater transparency about the costs incurred in maintaining a safe building in the new building safety regime, and the new homes ombudsman will improve redress for new build homebuyers, avoiding the need to pursue costly redress through the courts.

It is right that we have prioritised action on high-rise buildings, but where the risk to multiple households is greater when fire spreads, we are also acting decisively to remediate lower-rise residential buildings of between 11 metres and 18 metres. My hon. Friend the Member for Kensington again raised this issue, among many others. We are establishing a finance scheme to ensure that that cladding can be remediated where that is needed. It means leaseholders will never have to pay more than £50 a month. We are working now to develop the details of the scheme to ensure that it protects leaseholders, prioritises affordability and accelerates remediation. We will provide more detail on the scheme as soon as we are able to, and we are working hard to make progress now.

The right hon. Member for East Ham (Stephen Timms) talked about waking watch. We absolutely recognise that some leaseholders have been unjustly left picking up the bill for interim safety measures. That is why the Secretary of State announced a £30 million waking watch scheme. This is paying for the installation of alarms in between 300 and 460 buildings, benefiting over 26,500 leaseholders, who are expected to save over £137,000 a month.

The hon. Member for Cardiff South and Penarth (Stephen Doughty) talked about engagement with the Welsh Government. The letter he sent on 23 June raised a number of issues, and I will absolutely make sure that it is responded to.

My hon. Friends the Members for Stoke-on-Trent South (Jack Brereton) and for Stoke-on-Trent Central (Jo Gideon) talked about the need to invest in Stoke-on-Trent to make sure that regeneration opens up brownfield developments in the city. They took this opportunity to outline the components of their levelling-up fund bid. I absolutely note that and their enthusiasm for the success of the bid, and I thank them for it.

Despite the challenges of the pandemic, we have made progress. We have accelerated support to drive forward the remediation of unsafe cladding systems. Over 95% of high-rise buildings identified at the beginning of last year as having unsafe ACM cladding are now having it removed—the works are under way there. We have strong Government support to protect leaseholders from unaffordable costs. We want to be fair to taxpayers, while reassuring lenders that remediation costs will not become unmanageable. This will be a complete overhaul of the regulatory framework for fire and structural safety, led by a once-in-a-generation change to the building safety framework, with sanctions to tackle irresponsible behaviour to ensure people are safe and feel safe in their own homes. We will continue to work tirelessly to bring in the lasting change we need so that everyone in our country lives somewhere that is decent, safe and secure.

[Madam Deputy Speaker (Dame Eleanor Laing)]

The House may wish to know that England have beaten Germany 2-0.

[Hon. Members]

Hear, hear!

Planning Decisions: Local Involvement

Baroness Laing of Elderslie Excerpts

Monday 21st June 2021 Commons Chamber

[Several hon. Members rose—]

[Madam Deputy Speaker (Dame Eleanor Laing)]

Order. It will be obvious to the House that a great many people wish to speak in this debate and the next debate this afternoon, so we will have to begin with a time limit of three minutes, which will be immediately imposed.

Employment Rights

Baroness Laing of Elderslie Excerpts

Tuesday 8th June 2021 Commons Chamber

[Paul Scully]

I thank my hon. Friend—[Interruption.]

[Madam Deputy Speaker (Dame Eleanor Laing)]

Order. We will not have shouting.

--- Later in debate ---

[Paul Scully]

I am grateful for my hon. Friend’s work in this area. I am looking forward to meeting him and his colleagues to discuss it further, to get his knowledge and the experience of his constituent, who has been put in an incredibly tough and invidious position. As I say, we will review the whistleblowing framework once we have had sufficient time to build the necessary evidence, which will include that conversation. We are considering the scope and timing of the review.

[Madam Deputy Speaker (Dame Eleanor Laing)]

It would be helpful if we could go a little faster, because the House has a lot of business before it over the rest of the day.

[Charlotte Nichols (Warrington North) (Lab) [V]]

Polling for the GMB union found that 76% of the public want fire and rehire to be banned, including 71% of Conservative voters. If only unscrupulous employers use fire-and-rehire tactics, as the Minister said in a previous answer, a non-legislative solution will do absolutely nothing. How much more consensus is needed before the Minister acts to ban fire and rehire, rather than warm words that do nothing to protect workers in his constituency or mine?

Post Office Update

Baroness Laing of Elderslie Excerpts

Wednesday 19th May 2021 Commons Chamber

[Seema Malhotra (Feltham and Heston) (Lab/Co-op)]

I thank the Minister for advance sight of his statement. My hon. Friend the Member for Newcastle upon Tyne Central (Chi Onwurah) is not able to attend today but, like me, she welcomes today’s statement, including the much belated conversion of the inquiry to a statutory footing and the extension of its scope, although we believe that it does not yet go far enough.

This is indeed the largest legal miscarriage of justice in our history. It is estimated that there have been 900 false prosecutions in total—each one its own story of persecution, of fear, of despair, of families destroyed, of reputations smashed, of lives lost and of innocent people bankrupted and imprisoned. I thank and congratulate everybody who has campaigned over so many years—for more than a decade—to reveal the truth, including the Justice for Subpostmasters Alliance and the Communication Workers Union. I also congratulate right hon. and hon. Members across the House who have fought for justice for their constituents; I mention in particular my right hon. Friend the Member for North Durham (Mr Jones), who has worked tirelessly on the issue.

The campaign for justice has been long fought, and there is still a long way to go. The Minister’s announcement is a step in the right direction. The Labour party and the Justice for Subpostmasters Alliance have always said that the inquiry must be statutory, but less than a month ago in this Chamber, four days after the Court of Appeal’s decision, the Minister rejected calls for a statutory inquiry on the grounds that it would take

“three, four or five years”—[Official Report, 27 April 2021; Vol. 693, c. 254.]

Can he tell us what has happened to change his mind?

The horrific miscarriage of justice did not happen overnight. For a decade, we have known that there were serious problems with the Horizon system, but the Post Office denied all wrongdoing, pursuing the victims and imposing huge lawyers’ fees on the claimants. Even after the High Court ruling vindicated postmasters in 2019, the Government refused to act. The next step has been delayed and victims’ lives have been disrupted by this Government.

It is important to remember that having a statutory inquiry is not, of itself, justice. There remain a number of urgent questions for the Minister that he did not answer a few weeks ago. The Government are the Post Office’s only shareholder, yet time and again, the Post Office was allowed to abuse its power over postmasters. That was the finding of the Court, and it is a really important point. Will the Minister acknowledge the Government’s failure of oversight and due diligence with regard to public money? Will he apologise to the victims and their families today? The postmasters were criminalised for a culture that assumed technology is infallible and workers dishonest. How will the Minister change that, and what are the implications for the management of human teams relying on AI or computer algorithms?

We welcome any new powers for Sir Wyn and the review. It was reported—and this seemed to be in the statement—that Sir Wyn will have the power to summon witnesses to give testimony under oath and to force the Post Office to hand over documents. Can the Minister confirm that, and will that power apply to any other entity or organisation from which evidence is sought? While the terms of reference have been updated, they do not seem to reflect the issues raised by my hon. Friend the Member for Newcastle upon Tyne Central previously. For example, compensation still appears to be out of scope of the inquiry—why? Who has been consulted on the revised terms of reference?

Fujitsu was the one that provided faulty software. An independent investigator, Second Sight, drew attention to that as far back as 2013, yet the Government do not appear to be doing anything to hold Fujitsu to account. Instead, the Horizon software has been renewed, rewarding Fujitsu with a new £42 million contract. Will ongoing Government contracts with Fujitsu be reviewed? Paula Vennells led the Post Office during this time and was honoured with a CBE, along with a long list of others. Is it right that she and others continue to be honoured?

The Minister has referred to a “full and final settlement” for some postmasters with the Post Office. However, he will know that of the £58 million settlement approved in the High Court case, only £12 million will go to the victims, with the rest taken up in legal fees. Does the Minister agree that they should be considered for appropriate compensation?

The JFSA and Labour want there to be a public consultation to guarantee that the inquiry will deliver for all the victims and provide conclusive answers. The Post Office is a Government-owned company that has been found to be at fault. It is vital that the Government act to improve the corporate structure of the Post Office, to prevent this kind of thing from ever happening again. It should never have been allowed to develop into this scandal, but all we can do now is ensure that we get to the truth, that those wrongly convicted get justice and that lessons are learnt.

Securing this statutory inquiry is a big victory for sub-postmasters, trade unions and justice, but despite the Government’s U-turn, this is only the start. The Government have failed to live up to their responsibility to prevent this scandal from occurring, and they have, until today, stood in the way of justice. I urge the Minister to apologise, to own the Government’s mistakes and to start work to ensure that justice is served and that a scandal of this magnitude can never happen again.

[Madam Deputy Speaker (Dame Eleanor Laing)]

I did not want to interrupt the hon. Lady, but Mr Speaker would be annoyed with me if I did not point out that she has taken a minute longer than she ought to have had, and that is a minute that will not be taken later today by some other Member who wishes to speak.

[Paul Scully]

I send my best wishes to the hon. Member for Newcastle upon Tyne Central (Chi Onwurah); I understand why she cannot be here. I appreciate the response from the hon. Member for Feltham and Heston (Seema Malhotra), and I will try to answer some of her questions.

The hon. Lady talked about Ministers’ role in this. Clearly, the role of our Department, Government and Ministers will be included in the inquiry. We do want to learn the lessons, and that will be the case, but as we have seen from the judgment, the Post Office consistently maintained that Horizon was robust and was misguided in its approach to the issue, leading to the decision to prosecute these postmasters. We pressed management on issues regarding complaints brought by postmasters about Horizon and received repeated assurances that the system was reliable. As I say, the inquiry will look into that.

In terms of the Government’s response, we clearly recognise the impact that convictions have had on individual postmasters and their families. That is why the Prime Minister and I met with a small group of them last month, to hear directly from them. They had some incredibly tragic and terrible stories, and I can understand why they find it difficult to trust anybody in this regard after many, many years of difficulty and the impossible situation that they and their families have been in.

On Horizon itself, the Post Office is looking into that. It cannot, unfortunately, just switch off a system and change midstream, but clearly it will be looking to work on the successor CRM—customer relationship management —system. Yes, the terms of reference and the statutory footing allow Sir Wyn to compel people to give evidence and documents, and there are sanctions on them if they should fail to do so, under the Inquiries Act 2005. One of the reasons for that, as we move to the second stage and, I hope, engage more sub-postmasters to give their stories, is that we want to give them the confidence that people will be giving their evidence. I must say that, to date still, everybody involved in this whom Sir Wyn has asked to do so has given their full undertaking and worked on it. Nobody has resiled from the inquiry, but it is important that we do this.

On the terms of reference in relation to compensation, an inquiry, whether statutory or not, cannot determine liability in itself—that still has to be done through the courts—but sub-postmasters clearly can raise, and I would fully expect them to raise, the issue of the losses and difficulties as they outline the difficulties they have had. On Fujitsu, as I have said, clearly the Post Office will be looking at what it does in further compensation, and that will include Fujitsu. There are criminal investigations going ahead, so that is outside the scope of the inquiry, but the GLO—group litigation order—settlement was a full and final settlement. The Government did not have a part in the litigation. It is not part of the inquiry itself, but none the less, this is one part—an important part, but one part—of making sure that we get to the bottom of this and get sufficient justice for the postmasters so badly affected.

Affordable and Safe Housing for All

Baroness Laing of Elderslie Excerpts

Tuesday 18th May 2021 Commons Chamber

[Matt Western (Warwick and Leamington) (Lab)]

Last Monday, a mere 80 hours after polling stations had closed, a leaflet fell on our doormat. Even though consent is already in place for 4,000 homes, which is more than necessary, it was the start of a consultation, a new local plan for Warwick and Leamington and the wider area. So many constituents in Bishop’s Tachbrook, Barford, Budbrooke, Hampton Magna and Hatton in my constituency will be rightly alarmed by what is being proposed, because it will be underpinned by the new planning Bill, which is nothing short of a developers’ charter.

Let us be honest: the Queen’s Speech did not present a realistic plan to fix the housing crisis. After all, we have seen an absolute reduction of 200,000 social rent homes since 2010. Where were the proposals to build more council housing and the 150,000 social rent homes that are needed and have been called for by Shelter and by Opposition Members? Since 2010, Warwick District Council in my constituency has built only 21 council homes. Where was the security for private renters? The Government promised better protection, but the renters reform Bill has been kicked into the long grass. Where was the ambition to invest in existing council housing stock or to address some of the considerable inequalities that have been exposed in the past year?

What pains me so greatly is that in this year of COP26, the Government lack ambition to build zero-carbon homes. We are five years on from 2016, the date by which the last Labour Government promised to introduce them. Five lost years, 1 million zero-carbon homes that would have been delivered by a Labour Government—just imagine.

I will leave for another day topics such as higher education, but in the few seconds that remain, let me highlight a few other major issues in the Queen’s Speech—a Queen’s Speech with barely a full sentence on social care, perhaps the greatest challenge of our times along with climate change, which received little more. That point brings me to the need for a network of 2 million electric vehicle charging points, as highlighted by the National Infrastructure Commission and Sir John Armitt. Today, we have just 23,000 public EV charging points.

The Queen’s Speech failed to recognise that commuting has changed forever. Instead, it favours iron rails over fibre-optic cables. It promises freeports, the emperor’s new clothes. It promises, or claims, a jobs miracle, but it is a jobs mirage—low-paid, insecure work, zero-hours contracts, a gig economy. Finally, there is voter ID and the suppression of public protests. No wonder Her Majesty looked so ill at ease delivering her Gracious Speech.

[Madam Deputy Speaker (Dame Eleanor Laing)]

I will just caution the hon. Gentleman that in this Chamber we do not mention Her Majesty’s opinions on any political matter at all. I appreciate that the hon. Gentleman was being careful in the way he said that remark, so I will not reprimand him any further, but just for the advice of new Members who might not have listened to a Queen’s Speech debate before, nobody has any idea whether Her Majesty likes any policy or not.