Building Safety

Felicity Buchan Excerpts

Monday 10th January 2022 Commons Chamber

[Michael Gove]

I am very grateful to the hon. Lady for her points. We certainly will work with the devolved Governments. Of course, the residential property developer tax, like all UK-wide taxes, is distributed appropriately in line with the Barnett formula and other requirements, but we will certainly work with devolved Governments. I should say that I am very grateful to the Scottish Government, the Welsh Government and the Northern Ireland Executive for the work they have already done on this issue. We all have much to learn from one another.

[Felicity Buchan (Kensington) (Con)]

I welcome the direction of travel in the statement, specifically that leaseholders will not have to pay for cladding remediation. I am also glad that building product makers are now coming within the scope of Government, not only property developers. I have been personally shocked by some of the revelations coming from the Grenfell inquiry and I think that potentially we need to address the building products sector. May I stress to my right hon. Friend that speed and delivery here is critical? It is now four and a half years since the tragedy in my constituency. What is important is not only having a good plan, but executing it quickly and efficiently.

[Michael Gove]

My hon. Friend is absolutely right and I am very conscious of the need for speed. I quite agree. If we look at the behaviour of some of the cladding firms, the behaviour of people who work for Kingspan and Arconic, and the evidence presented to the Grenfell inquiry, we see that it is truly dreadful. The individuals concerned must take responsibility. She represents a constituency in which there are many, many people who are effectively trapped because of the failure of the property market to effectively address all these problems. In the interests of her constituents and so many more, and in particular in the interests of the Grenfell community and its fight for justice, I am very conscious of the need to move as fast as we possibly can.

Building Safety Bill

Felicity Buchan Excerpts

2nd reading
Wednesday 21st July 2021 Commons Chamber

[Felicity Buchan (Kensington) (Con)]

I welcome the Bill. It will be very important in transforming our regime of building safety and in putting residents and high rises at the forefront of that regime. Building safety is incredibly important to me. The tragedy of Grenfell Tower happened in my constituency, and London is home to 55% of all high rises and intermediate buildings, many of which lie in central London.

I hope the Bill will also change the culture of the building industry and the building products industry. I have been shocked by some of the revelations coming out of the Grenfell inquiry: how the system was gamed and how it was pushed to the nth degree. We need to change that culture; residents and safety must come first.

I warmly welcome many parts of this Bill, including the building products regulator and the ability of that regulator to take building products off the market and to prosecute those who try to sell products that do not meet the mark. I also welcome the fact that the time period to sue for defective premises will go from six years to 15 years, and the announcement that we heard this afternoon on EWS1 forms will be critical.

Clearly, there are details on which we need confirmation. RICS guidance will be important. It will be important to have confirmation that the consolidated advice note will be withdrawn, and we also need clarity as to what will happen to EWS1 forms that have already been issued. Will they stay or will they not? Potentially, this is a very significant development for leaseholders.

There are issues on which we need to work across the House. We need to agree the scope of the measures. Yes, they currently apply to buildings above 18 metres, but the Bill has the capacity to increase that scope, so we need to focus on that. Very importantly, we need a taskforce within the Ministry of Housing, Communities and Local Government that will look at buildings case by case, because there are so many buildings that are throwing up very unique circumstances that we need to deal with. One is Collier House in my constituency.

Building Safety

Felicity Buchan Excerpts

Tuesday 29th June 2021 Commons Chamber

[Felicity Buchan (Kensington) (Con)]

It is a pleasure to follow the Chair of the Select Committee, who is always thoughtful and well informed.

The building safety Bill will be a landmark piece of legislation. I would like to see it introduced as quickly as possible, post summer recess. It will transform the regulatory system for buildings and put the safety of residents in high-rises at the heart of the regime. It will make it clear who is accountable for the safety of buildings, all the way through their life, from design to construction and occupation. I would also like it to drive a change in the culture of the building industry, because I have been shocked by some of the revelations that have come out of the Grenfell inquiry, particularly about the conduct of the building products industry.

Given that this is an estimates debate, I want to welcome the funding that the Government have made available. Of the £5.1 billion, if we add the £3.5 billion announced in February to the £1.6 billion that had already been announced, and if we also include the subsidised loans scheme, the tax on property developers and the levy on high-rises, it looks to me like a package of £5 billion to £10 billion, and it could well be in the mid to upper end of that range. However, it is clear that there are still an awful lot of outstanding issues that we need to resolve with a sense of urgency.

First, leaseholders in intermediate-height buildings of 11 to 18 metres need clarity on the financing scheme, and they need it as soon as possible, because uncertainty is not good. I understand that the loan will go with the building, as opposed to the leaseholder, but sometimes the freeholds of these buildings are not worth a lot, so if the loan exceeds the value of the freehold, how will that work?

I have tremendous sympathy for the plight of leaseholders who are facing extenuating circumstances and who are in this position—let us never forget—through no fault of their own. Every time I talk to a constituent about a new building, it exposes another complex set of problems, so I beseech the Minister to get dedicated teams at the Ministry of Housing, Communities and Local Government drilling down into the detail, building by building, and trying to resolve some of these very difficult and complex issues.

I also ask that there is some discretion. To give a quick example, there is a building in my constituency where the leaseholders paid for the remediation of ACM cladding in the expectation that the building’s owner would then apply to the fund. They have now been told that the building’s owner does not want to do that, but they find that they cannot apply to the fund because they are a third party. I would love to see discretion in that situation.

[Dr Julian Lewis (New Forest East) (Con)]

My hon. Friend is making an outstanding case, and she clearly knows this subject from every angle. Does she agree that no matter how much money the Government allocate to this issue, unless it is combined with a resolution or rule that prevents leaseholders from being charged straight away, there is little chance of leaseholders escaping the unfair financial punishments that she described so eloquently?

[Felicity Buchan]

What I would like to see is a rigorous approach, building by building, so that we can come to solutions, because there is no question but that we need a sense of urgency and that the situation is taking a huge toll on leaseholders.

I am conscious of the time, so I will make a few other points. I am very conscious that we need to hire and train way more professionals—building assessors and fire assessors—who can get on with the work. Insurance is another huge issue. I have talked to constituents who have seen their insurance bills triple or go up fourfold. We have the template of a solution with Flood Re and the solution that we got to flood insurance. Let us be creative and see whether we can do something similar with high-rise buildings and fire risk. It is incumbent on the industry to take a balanced and sensible approach, however; in reality we will not be able to nullify every single risk. I have called previously in the Chamber for the Government to consider a tax on the building products industry in the same way as they have done on the property development sector, and I make that appeal again.

In summary, I welcome what the Government have done, but there is so much still to be done. It needs to be done with a sense of urgency, and we need to resolve these issues for buildings and leaseholders once and for all.

Greensill Capital

Felicity Buchan Excerpts

Tuesday 13th April 2021 Commons Chamber

[Paul Scully]

I associate myself with the hon. Member’s words about the Duke of Edinburgh and, of course, our colleague Cheryl Gillan, both of whom will be sorely missed.

The Chancellor wrote to the hon. Member last week with a comprehensive response to her questions regarding engagement between Greensill and HM Treasury. The Prime Minister has asked Nigel Boardman to conduct a review to look into the decisions taken around the development and use of supply chain finance and the associated schemes in Government—especially the role of Lex Greensill and Greensill Capital—and to set out any findings as necessary. The Government recognise the interest in the matter. It is right that we now let that review happen.

In the interests of transparency, the Chancellor has provided all the messages that were sent from him to David Cameron on this matter; they relate exclusively to Greensill’s proposals for the covid corporate financing facility. The Chancellor is right to push officials, as we all have, to explore all ways of capital getting to businesses—large and small. That is what all Members of this House were asking and demanding the Government to do at that particular point. It is important to remember that the Chancellor rejected the idea that he should rewrite the CCFF to include any banks.

The reason the Chancellor is not here is that the question is about the CLBILS. I suggest to the hon. Lady that she asks her question in a different forum or that she asks a different question, because the coronavirus large business interruption loan scheme, to which this question pertains, is administered by the British Business Bank. The Secretary of State for Business, Energy and Industrial Strategy is the sole shareholder in the bank. As such, the responsibility for the delivery of the scheme sits with BEIS. The accreditation process for any of the covid loan schemes is run independently by the British Business Bank; neither BEIS nor HM Treasury had a role or were involved in the CLBILS accreditation decision for Greensill.

There were two other non-bank lenders accredited under the CLBILS, with over 75 accredited for the CBILS. It was an important feature of the covid loan schemes that there was a diversity of lenders to ensure a broad range of choice for borrowers, enabling them to access the finance they needed to survive and recover from the pandemic. Greensill was not accredited to provide supply chain finance through the CLBILS. It was only accredited to provide invoice finance, term loans and revolving credit facilities.

[Felicity Buchan (Kensington) (Con)]

Will my hon. Friend confirm that in all dealings with Greensill, the Department for Business, Energy and Industrial Strategy, the Chancellor, his Ministers and his officials always followed all appropriate codes of conduct?

[Paul Scully]

Indeed; all the decisions were taken independently, and that included rejecting Greensill from being able to access the higher level of loan facility, the only request for which came from the shadow Secretary of State for Defence, the right hon. Member for Wentworth and Dearne (John Healey).

Building Safety

Felicity Buchan Excerpts

Wednesday 10th February 2021 Commons Chamber

[Robert Jenrick]

I am grateful to the hon. Lady for welcoming much of the substance of today’s announcement. I draw her back to my earlier remarks: to the best of my knowledge, the Scottish Government have made no use at all of the funding that they have been provided with through the existing building safety fund. Important questions now need to be answered by her Government in Scotland as to what is actually happening there. What are they doing to support leaseholders? How are they making those buildings safe?

With respect to the financing scheme that we are bringing forward in England, it will be a matter for the Scottish Government—or, indeed, the Welsh or Northern Irish Administrations—to decide whether they wish to create a similar scheme. We have set an upper limit of £50 a month, which provides a great deal of comfort to leaseholders that they will never need to pay more than that per month. That is about the equivalent of the average service charge for a purpose-built block of flats. I appreciate that it is a cost that no one would wish to bear, but it is a reasonable one in balancing the interests of the taxpayer with providing support and protection to the leaseholder. We will bring forward further details on how that scheme works as quickly as we can.

It is important also to say that the arrangement that we will be creating is not a loan to an individual; it is a financing scheme with buildings. The loans do not sit with the individual and will not affect their credit rating. These are loans on a long tenure that will remain with the building, ensuring that the leaseholders themselves can move on with their lives.

[Felicity Buchan (Kensington) (Con)]

I thank the Secretary of State for working so closely with me on cladding issues over the past 15 months. I have been calling for a substantial and comprehensive package for cladding remediation, so I warmly welcome this announcement, which, importantly, allows funds to be deployed very quickly and does not require taskforces or legislation. I have called for a package of £5 billion to £10 billion; I quickly tried to tot up all the numbers as the Secretary of State went through the details, and I think this funding could be approaching certainly the middle if not the upper end of that range. Will he confirm that and assure me that money will be deployed as quickly as possible?

[Robert Jenrick]

I praise my hon. Friend, who has been a fantastic Member of Parliament for Kensington since she was elected and has raised with me this and other issues arising out of the Grenfell tragedy almost every week—in fact, we meet every week to discuss these issues.

My hon. Friend is right to say that this is a very substantial intervention. We have already made £1.6 billion available, and we estimate that it will require another £3.5 billion to complete the remediation of unsafe cladding on buildings over 18 metres and to make good on the promise we have made today to leaseholders. In addition to that, we will bring forward the financing scheme, the details of which, as I said, will be published shortly, but it is a very generous scheme and there is a significant cost to the taxpayer in ensuring that the £50 cap gives that added level of protection and reassurance to leaseholders.

The total intervention that we are making today is, as my hon. Friend says, one of many, many billions of pounds. That is a difficult judgment, which the Prime Minister and the Chancellor have made with me, but we believe this is a fair and generous settlement to help everybody to move forwards.

Unsafe Cladding: Protecting Tenants and Leaseholders

Felicity Buchan Excerpts

Monday 1st February 2021 Commons Chamber

[Felicity Buchan (Kensington) (Con) [V]]

I pay tribute to my constituents—the Grenfell bereaved, the survivors and the wider community. I was shocked by several of the recommendations that came out of the Grenfell inquiry in November and December, especially those relating to building products, their testing and their marketing. It is clear that there have been regulatory and corporate failures. I welcome the fact that the Secretary of State has announced a new regulator for construction products and will start a review of the testing process.

I think the whole House would agree that we need a comprehensive and speedy solution to the leaseholder situation. Leaseholders are in this dilemma through no fault of their own, and as colleagues have said, in many cases they are sitting on unsaleable properties that are potentially dangerous. I welcome the fact that the Government made available £1.6 billion for cladding remediation, and I am glad to hear in particular of the progress on ACM cladding remediation. However, I suspect that £1.6 billion will not be enough. Today, I call on the Government to put together a substantial and comprehensive package such that we can remove all dangerous cladding on high-risk buildings. I agree with colleagues that we must ensure that freeholders, insurance companies, warrantee holders and developers pay their fair share, but I do think the Government need to put together a comprehensive package.

I was delighted that the Secretary of State and the Chancellor took time last week to hear me make the case for more Government money. I am glad to hear the Minister at the Dispatch Box say we will make important announcements in the short term. It is now three and a half years since the Grenfell tragedy in my constituency. We need to make urgent progress, so I look forward to hearing the Government’s announcements over the next few weeks.

Council Tax: Government’s Proposed Increase

Felicity Buchan Excerpts

Monday 25th January 2021 Commons Chamber

[Steve Reed (Croydon North) (Lab/Co-op)]

I beg to move,

That this House calls on the Prime Minister to drop the Government’s plans to force local councils to increase council tax in the middle of a pandemic by providing councils with funding to meet the Government’s promise to do whatever is necessary to support councils in the fight against covid-19.

Right at the heart of the local government funding settlement, there lurks a rather nasty little surprise. What the Chancellor and the Secretary of State for Housing, Communities and Local Government trumpeted as an increase in funding for councils was nothing of the sort. Instead of the promised “end to austerity”, we got a Conservative council tax bombshell.

The Government made a choice to clobber hard-pressed families with a 5% council tax rise, after the Government’s mistakes led our country into the worst recession of any major economy. There are two big problems with that: it is economically illiterate to push up taxes while the economy is in crisis; and it is dishonest to trumpet the end of austerity when most councils will still be forced to cut services even after they impose the Conservative tax hike, because the rising costs of social care outstrip any increase in revenue, and the Government have done nothing about that crisis.

[Felicity Buchan (Kensington) (Con)]

Will the hon. Gentleman please explain, if he does not think that councils should be increasing taxes, why the Mayor of London is proposing to increase his precept by 10%?

[Steve Reed]

It was actually the Secretary of State for Transport who told the Mayor of London that he had to increase council tax. [Interruption.] Oh yes, it was. The reason there is a funding gap in London is that Londoners have done the right thing and followed the Government advice to keep covid-safe by keeping off public transport as much as they can. Transport for London’s revenues have therefore collapsed, but the Government have refused to provide the financial support to cover that problem. I imagine the Government thought they were punishing the Mayor of London ahead of the London mayoral elections; what they have actually done is punish Londoners, and that is wrong.

The Government’s message to council tax payers is: “Pay more but get less under the Conservatives.” Last March, as the country went into lockdown, the Secretary of State made a commitment to fund councils to do what was necessary to get communities through the crisis. He was right to say that—I give him credit for doing so—but just two months later, he broke that promise.

The Conservative-led Local Government Association estimates that councils face a £2.5 billion funding gap as a result of the lost income and additional costs of supporting communities through these unprecedented circumstances over the past year. The Government’s planned council tax increase will raise just under £2 billion next year. If the Government had not broken their promise on funding, councils would already have that amount available to them. Of course, the Government threw away £10 billion on crony contracts for companies with links to senior Conservative politicians. Just a proportion of that money would have plugged councils’ funding gap entirely.

The Government’s failure over the past year has left Britain with the worst recession of any major economy and one of the highest death rates in the world. Now, with their inflation-busting tax hikes, the Government are making hard-working families pay the price for Conservative failure, and the timing really could not be worse. The Tory tax hike will land on people’s door mats in the same month that over 2 million people come off the furlough scheme. Many of those people are worried sick about their future job security. Millions more are worried about their income falling. This is no time to clobber them with a tax hike.

Provisional Local Government Finance Settlement

Felicity Buchan Excerpts

Thursday 17th December 2020 Commons Chamber

[Felicity Buchan (Kensington) (Con)]

I thank my right hon. Friend for all the support that my council has received during coronavirus. One issue that my council faces is that we raise an awful lot in business rates, given the high property values in Kensington. We get very little of that back, yet our high streets are really suffering because of the crippling level of business rates. Does he agree that we need a fundamental review of business rates?

[Robert Jenrick]

I join my hon. Friend in praising her local council, and in particular the excellent local council leader she is lucky to have, Elizabeth Campbell, whom it has been my pleasure to work with this year on many different issues.

My hon. Friend is right to say that business rates are a challenge. Of course, this year the Chancellor has provided a business rates holiday, which so many businesses on our local high streets have benefited from. It will be for him to decide whether or in what form that should continue into the next financial year, and no doubt he will bring forward further details on that next year. There will be a fundamental review of the future of business rates, and I am sure she will contribute to that in due course.

Planning for the Future

Felicity Buchan Excerpts

Tuesday 15th December 2020 Westminster Hall

[Felicity Buchan (Kensington) (Con)]

Thank you, Sir Charles. I congratulate the hon. Member for Richmond Park (Sarah Olney) on securing the debate. I think all Members present agree that we need more homes, and more affordable homes. Picking up the point made by my hon. Friend the Member for Warrington South (Andy Carter), however, we need the right types of homes in the right places.

I congratulate the Minister on building 250,000 homes, which is an excellent achievement, and I would like to contrast that with what is happening in my city, London, where we are failing to build enough homes. The Mayor of London was given just under £5 billion to build 116,000 new homes, but we have started only 52,000, which is disgraceful. My borough and many other London boroughs need more homes.

[Wera Hobhouse]

Is the problem about providing not affordable homes but social homes for rent? In Bath, the average house price is almost £500,000, and an affordable home would cost 20% less. It will never be affordable for anybody to rent, let alone to buy. What is actually “affordable” in her words?

[Felicity Buchan]

I agree with the hon. Lady that we need more socially rented homes. As my right hon. Friend the Member for East Hampshire (Damian Hinds) said, we need a wide range of tenures across the spectrum. In my local authority, we are building 600 new homes this year. Of that, half—300—will be socially rented.

Let me indulge myself for a moment and talk about my borough, because it is slightly unique. We are the densest residential borough in the entire country. We were fully built out by 1900, and we already have a high skyline. We have just approved a 29-storey tower. Others have been approved, such as Newcombe House, which has 18 storeys. We have a huge physical constraint on our ability to build more houses in our borough. Some 73% of my borough is a conservation area, which we are delighted about. In fact, we think more of it should be a conservation area, but it brings constraints.

I want to limit my remarks to the White Paper, as opposed to the algorithm, because I have talked about the algorithm in the main Chamber. By the way, under the algorithm the housing target in my borough goes up sevenfold, relative to the December 2019 London plan, which has not gone through yet. 

Let me focus on the White Paper. I think that local engagement in planning and local democracy are absolutely critical. I have spent one year in this place, and the more time I spend here, the more I believe in local democracy, since local authorities are closest to the people.

The current plan in the White Paper is that there will be local engagement in the plan for a growth zone, but it is up front, and once the plan is formulated there is no need for specific planning permission. I am very concerned about that. Although I have great residents associations and the Kensington Society, which work very hard and will submit input at that stage, the vast majority of people comment only when they know about a specific development on their doorstep. My constituents and residents will be up in arms if they find out that 18 months ago a plan was approved that they were not aware of and certainly did not give any feedback on, and now they simply have to suffer the consequences.

[Dr Mullan]

Particularly in transient populations, which we see a lot in London, people who move into an area long after the consultation took place will have no opportunity to comment even if they were inclined to.

[Felicity Buchan]

That is an exceptionally good point. The other point I want to make about local plans being decided up front, with no subsequent planning permission, is that they cover a period of three years, and we all know how volatile the housing market has been over the course of the past three years. What was planned a few years ago at one of the two brownfield sites in my constituency—the Earl’s Court exhibition site—is definitely not what is being considered today. It is very important that we do not have one plan that stays in place for three years.

The other point that I want to make is also about localism. We should not have a standard national plan that every local authority adopts. We need the ability to adapt each plan to the local authority. I will give hon. Members an example from my local authority. We have fought very hard on basements, and we now allow only one additional basement. On my street a few years ago, a house went down three additional basements underneath lower ground floor level. Goodness—the terrace could fall down, but never mind. It is very important that local authorities can tailor things to their individual communities. There are good things in the White Paper. The move to digital first must be recommended, as must the move to beauty in design—although one person’s beauty can be another person’s something else.

[Ms Nusrat Ghani in the Chair]

[Anthony Mangnall]

Nightmare.

[Felicity Buchan]

Yes.

I welcome those proposals, but can we review the White Paper? I have fed into the consultation, but we need much more focus on local decision making.

The Future of the High Street

Felicity Buchan Excerpts

Thursday 10th December 2020 Commons Chamber

[Felicity Buchan (Kensington) (Con)]

The need to rejuvenate our high streets is an issue that I am sure unites this House across party and across regions, whether we represent small towns or a major metropolis. I also think there is probably a fair amount of consensus about how to do that. I will talk briefly about my vision for high streets and about business rates and the VAT RES.

The reality, as many colleagues have said, is that the high street is changing and there are many shops that, sadly, will not be viable going forward, so we need to recreate the concept of the high street. That will mean more leisure, more hospitality and, indeed, even more housing. The high street needs to become a destination and an experience, rather than simply a shopping event.

Turning to business rates, I believe we need fundamental reform—indeed, I believe we need a significant reduction in business rates. If we look back to 1990, business rates and corporation tax were both at 35%. Corporation tax is now at 19%, but business rates are at 51%. There is no rationale for that discrepancy. If we think about it, business rates are a fixed cost; they have nothing to do with the profitability of a business. I strongly recommend that the Treasury review business rates, and I think doing so would be in the Treasury’s long-term interests, because we need to preserve jobs on our high street. As the Chancellor says, it is all about “jobs, jobs, jobs”.



In my own constituency, we are particularly affected by business rates. The one tiny borough of Kensington and Chelsea and the neighbouring borough of Westminster make up 10% of the entire country’s business rates, just because our property values are so high. However, the cash flows in our shops are basically the same as the cash flows in shops all around the country, so we need that review. I have only 20 seconds left, so I just want to say that I strongly urge the Government to review the VAT retail export scheme. At a time when we are global Britain looking out, we need to be attracting international visitors to our high streets, our hotels and our restaurants. Our high streets have hope, but they need our support.