Council Tax and Second Homes

Jim Shannon Excerpts

Tuesday 26th June 2018 Commons Chamber

[Derek Thomas]

As the rules stand, if a property is advertised for let for a certain number of weeks a year, it can be registered as a business and exempted from council tax and business rates. It is not necessarily required for people to be in the building during that time, as long as it is advertised as available for let. My hon. Friend is right, but I do not want to complicate the issue further. Simply saying that council tax is applicable to every house built for residential purposes would reduce many of the headaches that people might have at the moment.

The other additional benefit of applying council tax to every property is that communities like Steve and Mousehole. [Laughter.] I say “Steve” because of your point earlier. Sorry, not your point, Mr Speaker—although it was a good point you made—but the point made by my hon. Friend the Member for St Austell and Newquay (Steve Double).

The other additional benefit of applying council tax to every property is that communities like St Ives and Mousehole, which have a large number of holiday lets, could benefit from simplified and inclusive waste collection. Currently, because of the concern that the users of second homes in places like St Ives are abusing the system and using the bins provided for genuine local residents who pay council tax, Cornwall Council has removed some of the bins and is refusing to collect some of the rubbish.

Recycling, refuse and how we look after waste is a big issue in St Ives, and I have a big meeting on Friday to identify the issues. The local community will put forward a plan and I will work with Cornwall Council to deliver it. I have been working on the situation for three years, and bins that were available for residents who pay council tax have been taken away because it was deemed that they were being abused by people who own holiday lets and local restaurateurs, which has caused real hardship for elderly people. In parts of St Ives, and in other parts of my constituency where holiday lets are numerous, the people who are left are often older people who are less mobile, and they are having real difficulties in getting rid of their rubbish.

[Jim Shannon (Strangford) (DUP)]

I can well understand the hon. Gentleman’s concern, but doubling the tax on people’s second homes will impact on the attraction of second homes in such areas. Does he agree that much more thought is needed before implementing the draconian step of doubling council tax? That could be the death knell for the holiday industry in one area while opening up interest in other areas that do not introduce such a tax, like my constituency of Strangford.

[Derek Thomas]

I clarify that I am talking about second homes that are not available for let. There are properties where I live that are owned by people who might live not far from here in Westminster and who go to Cornwall for a few weeks a year as a holiday. That is absolutely fine, and they choose to contribute a great deal to the local community, but what I am proposing is that the Government look at giving the council powers to increase tax if it so chooses, if doing so would be beneficial to the area and if it would deliver homes for local families. If local authorities believe such a power would have no benefit to their area, they would hopefully choose not to apply it.

[Jim Shannon]

What I am saying is that there will be differences of opinion on those who buy second homes for their own use and who do not rent them out. Does the hon. Gentleman feel that one council could implement the tax while other councils do not? How will that work?

[Derek Thomas]

That is a fair point, because we would be dispersing the problem. I completely accept that point, and it is not something I have considered a great deal. In my constituency and across Cornwall, we are fairly sea-locked, so there would not be great competition from neighbouring counties. There is a particular issue for us in Cornwall, because once the houses are gone, they are gone and it is not easy to get a property nearby. The hon. Gentleman makes a fair point that needs thinking through properly.

At the moment, I am primarily asking the Government to consider applying council tax to every residential property. If every property paid council tax, every property would be entitled to the local authority’s refuse collection service. That would reduce the need to have several different companies providing the same service in a community such as St Ives, where the roads are tricky to navigate in the middle of winter, let alone in summer, when lot of tourists are around. As I said, I am holding a meeting in St Ives later this week to try to get to the bottom of this problem and to make sensible proposals for reducing the waste we have and dealing with the waste we produce. If we can apply council tax across the board and if properties—

Tenant Fees Bill

Jim Shannon Excerpts

2nd reading: House of Commons
Monday 21st May 2018 Commons Chamber

[Dr Paul Williams (Stockton South) (Lab)]

It is a pleasure to follow the hon. Member for Walsall North (Eddie Hughes). Like him, I refer the House to my entry in the Register of Members’ Financial Interests, as my partner and I rent out properties, although we are also private sector tenants.

I wish to congratulate the Government on introducing this Bill. I was proud to be elected last year on a manifesto to increase rights for tenants, although any Bill should protect the role of good and ethical landlords too. Unfortunately, rogue letting agents have for too many years been allowed to profit from insecure tenancies, with some charging renewal fees every six months. Nearly all charge administration and referencing fees, and huge deposits, which are completely out of reach for low-income families.

I support the broad aims of this Bill, but I would like to draw the Government’s attention to one aspect that continues to leave tenants vulnerable to unfair fees. I have particular concern with schedule 1(4), which reserves the right for landlords and letting agents to charge tenants who are forced to default on their tenancy agreements. I believe people who rent through the private sector could be better supported by this part of the Bill. I understand that some agents and landlords currently charge a full month’s rent for tenants to be granted an early release, then every month’s rent and utilities while a new tenant is found. There are genuine instances where tenants are forced to end tenancy agreements, which they entered into in good faith, through absolutely no fault of their own: for someone living in the private rented sector who is made redundant from their job, benefits might not cover the rent, and any delays in receiving benefits will leave them in rent arrears. Someone might have had a family bereavement and might need to move to another part of the country or of the world. Someone might have a mental health crisis and need to be admitted to hospital. Someone might be off work with a serious injury and not receive sick pay, or they might need to flee domestic violence. Many letting agents and landlords are unforgiving in such circumstances and trap tenants in situations that they need to escape.

[Jim Shannon (Strangford) (DUP)]

The hon. Gentleman is outlining extreme circumstances for tenants who rent properties. Does he agree that those people probably need legal advice, but do not have access to it when they need it most? Does he feel that the Government should look into legal advice for people who rent accommodation, then find themselves in difficulty?

[Dr Williams]

I would certainly like the Government to look at what advice and support is offered to people who find themselves in extremis.

Landlords’ loss of earnings do not compare to the trauma faced by tenants in a situation in which they just cannot pay the rent. Some such situations call for compassion. Let us remember that landlords have the right to increase their tenants’ rents as much as they want and can evict a tenant with two months’ notice without loss of earnings, but a tenant cannot leave a tenancy early in extremis. Why should landlords have the flexibility when the tenants do not? Surely, the Government must think more about the protection for tenants in such situations.

Many more children now live in the private rented sector than 10 or 20 years ago. With growing child poverty, any potential for charging households fees beyond the monthly rent and security deposit can be an absolutely debilitating blow to families on the breadline. I urge the Government to look at the Mind report, “Brick by brick: A review of mental health and housing”, which makes for particularly concerning reading. Published in November last year, it finds that the instability of the private rented sector is bad for children’s social, emotional and mental health. As a GP, I see the effect of that instability every week. Some 28% of all children in the north-east live in poverty, and more than two thirds of them are from working households in which one or two parents work full time. Nearly half of working-age people in poverty spend more than one third of their income on housing costs.

There is a strong case for the Government to strengthen the Bill further. Unaffordable housing affects a family’s ability to pay for essentials. From school uniforms to energy bills, to healthy and nutritious meals, families should not have to sacrifice the basics to keep a roof over their head. A healthy and stable home can support healthier children too. I urge the Minister to go away and look closely at schedule 1(4) and to protect people who have to default on tenancy agreements through no fault of their own. Let us think of someone who has lost their job, had a family bereavement or mental health crisis, is off work without sick pay or is fleeing domestic violence; the Bill should grant to tenants in such circumstances more financial protection from any charges from letting agents or landlords. I urge the Government to look into these issues more carefully.

Fire Safety Cladding: Heysmoor Heights

Jim Shannon Excerpts

Wednesday 16th May 2018 Commons Chamber

[Mrs Louise Ellman (Liverpool, Riverside) (Lab/Co-op)]

Today, following the campaigning of MPs across the country, the Prime Minister made a commitment to fund replacement cladding for some of the properties at risk following the Grenfell Tower catastrophe in June 2017. Her welcome statement refers to properties owned by councils and housing associations, but it leaves residents in privately owned tower blocks, such as those in Heysmoor Heights, Liverpool, out in the cold. They face bills of £18,000 to keep safe following the horrendous failings exposed by the Grenfell catastrophe.

After Grenfell, Heysmoor Heights was inspected by Merseyside fire and rescue authority—with commendable speed. It was found to have dangerous ACM— aluminium composite material—cladding. Fire marshals were put in place, and all lethal cladding has now been removed and is being replaced.

Heysmoor Heights is a 16-storey block comprising 98 flats, 63 of which are owned by Grainger plc. Grainger has funded the costs of fire safety measures for its flats, but it is unclear whether those costs will be reflected in higher rents or service charges in the future. The private leaseholders face major problems and anxiety. Theirs are modest properties, with a value of between £80,000 and £100,000, yet they are required to pay £18,000. How can hard-pressed residents find £18,000? Is the value of their flats affected by what is happening? Will more work be required, thus requiring more funding? It is unjust for residents to be facing demands to foot the bill to keep them safe because the regulatory system failed.

[Jim Shannon (Strangford) (DUP)]

First, I congratulate the hon. Lady in raising an issue that is gripping the House this week. Does she agree that every social housing provider, local authority and landlord who is paid from the public purse has a duty of care and must ensure that buildings are up to the highest safety standard; and that where that is not the case, they must carry out the work necessary to bring the building up to that standard? That should be their responsibility.

[Mrs Ellman]

I agree with the hon. Gentleman; he makes an important point. Who should pay? Who is responsible for putting the situation right? The position is obscure and complex. The original development company, FM Heysmoor Heights Ltd, was dissolved in August 2014. It went into administration in 2010 after building renovation works were completed.

The current freeholder is an anonymous beneficial owner: Abacus Land 4 Ltd, an offshore company based in Guernsey. It is part of the Long Harbour Ground Rent Fund, which is thought to be worth £1.6 billion. HomeGround is responsible for the day-to-day management of the company. It has appointed the Residential Management Group—RMG—to manage the block.

RMG tells me that an insurance claim—taken out in 2008 by the now defunct FM Heysmoor Heights Ltd—is currently being pursued with Lloyd’s against the original build guarantee. That could see an insurance warranty meet some or all of the costs incurred, but we do not know if this will happen.

RMG first raised the claim on 18 October 2017, but no decision has yet been reached. The claim has now been submitted to the formal complaints process via the Lloyd’s underwriter. When will there be a response? Will it be adequate? There are no answers in sight to those important questions.

The public inquiry into the Grenfell disaster is not due to start until next week. Indeed, there is still dispute about how it will proceed. A separate investigation into building regulations—the Hackitt inquiry—is due to report soon, and I understand that there may be a statement on that tomorrow.

Those investigations involve complex issues, including safety assessments, warranties, installations, certification and regulation. They could include questions of criminality. Years could pass before legal culpability in relation to any individual property is established but, in the meantime, my constituents face bills of £18,000. Payment by instalments is being offered in some cases, and sums of around £2,000 are being added to the quarterly service charge for some individual residents. That is an enormous amount to find. The situation is highly stressful, and payment by instalments does not reduce the size of the bill, which remains £18,000.

I have campaigned strongly on this issue on behalf of my constituents, as have other hon. Members on behalf of theirs. I first raised the matter with the then Secretary of State in October 2017. His response, dated 11 December 2017, stated:

“Where costs do not naturally fall on the freeholder, landlord or those acting on their behalf I urge those with responsibility to follow the lead of the social sector and private companies already doing the right thing and not attempt to pass the costs to leaseholders”.

I have continued to pursue that important matter in the House and I have made further representations to the Minister.

The Minister told me this week in a letter, and in an answer to a written parliamentary question, that

“the morally right thing for building owners to do is to take responsibility for meeting the cost of remediation and interim safety measures without charging leaseholders”,

and that

“building owners should do all they can to protect leaseholders from paying these bills. This could mean funding it themselves or funding it through warranties or legal action”.

The residents of Heysmoor Heights cannot wait for long and potentially protracted negotiations with the insurance company to be resolved. There is no guarantee that a satisfactory solution will be reached.

A letter I received today from HomeGround confirms that, should the insurance route fail, costs will be recovered through increased service charges. That is simply not good enough.

The Minister tells me that he will speak to the agent of the freeholder at Heysmoor Heights. Will he attempt to establish the identity of the owner—or owners—of the offshore Abacus Land 4 Ltd, an anonymous beneficial company?

There has been a further recent development. Barratt Developments, owners of Citiscape in Croydon, have now agreed to pay the costs of cladding removal and fire safety measures for their residents. The Minister’s letter to me states:

“I am aware of some private sector building owners who are not charging leaseholders and, as you know, the previous Secretary of State urged others to follow suit”.

I call for the same treatment for the residents of Heysmoor Heights. What is good enough for the people of Croydon is good enough for the people of Liverpool.

Let us remember what all this is about: 71% of people at Grenfell Tower lost their lives because of grotesque failings in fire safety. Inquiries are yet to establish precise liability and culpability. The catastrophe at Grenfell exposed the danger in other high-rise buildings, including at Heysmoor Heights, yet it is the residents who are being asked to foot the bill to protect their safety in a situation they did not create.

Today, the Prime Minister bowed to the inevitable and agreed to refund the cost of replacement cladding for councils and housing associations. The campaigns throughout the country have been successful, but residents have been put through too much stress for too long. What about the situation for the private residents—the leaseholders—at Heysmoor Heights? The Prime Minister did not give any answer to their calls for help. They must not be abandoned. I call on the Government to act to ensure that residents do not foot this bill—it is a question of justice.

Secure Tenancies (Victims of Domestic Abuse) Bill

Jim Shannon Excerpts

3rd reading: House of Commons & Report stage: House of Commons
Tuesday 8th May 2018 Commons Chamber

[Jim Shannon (Strangford) (DUP)]

Can the Minister confirm that in areas where rental accommodation is extremely expensive, there is help for those who need discretionary payments in order to make the weekly rental payments? Is this something she is able to do?

[Mrs Wheeler]

I do not know whether the hon. Gentleman is specifically referring to Northern Ireland or anywhere else—

[Jim Shannon]

In Northern Ireland, we have a discretionary payment that sometimes enables provision to be made where rents are higher. Is the system similar on the UK mainland?

[Mrs Wheeler]

Again, I stress that this Bill is England-only, but there are such opportunities. There is a local housing rate and then there are discretionary housing payments that can be made above that.

I come to amendment 3, the final amendment. I fully understand the motivation behind this amendment, which would extend the Bill to housing association landlords—this was the point made by the hon. Member for Bath (Wera Hobhouse), I believe. However, as I said in Committee, we have some fundamental concerns about this amendment. First and foremost, local authorities and housing associations are very different entities. Housing associations are private, not-for-profit organisations which make a significant contribution to affordable housing supply. I am sure Members will agree that we all want to see more affordable homes built. It is therefore vital that housing associations remain in the private sector, so that they can borrow funding free of public sector spending guidelines, to build the affordable housing we so greatly need. For that reason, we must avoid imposing any unnecessary control that might risk reversing—

Magor with Undy Walkway Station

Jim Shannon Excerpts

Monday 30th April 2018 Commons Chamber

[Jessica Morden]

That is very true, and I will expand on that point later.

Rail travel in our area is growing and growing, and we need the infrastructure to cope with that. Young people in particular need to be able to access work opportunities, not only in Newport and Cardiff, but in Bristol and also further afield. Those are two of the reasons why the campaign for this new station has so much public support.

I pay tribute to the Magor Action Group on Rail, a volunteer group that has campaigned with great energy over the past six years for a new railway station. From small beginnings, it has worked tirelessly and professionally —my constituency is blessed with a number of former railway workers and enthusiasts—to develop this idea that has caught the imagination of the local community and businesses, which the group has kept involved every step of the way. The group has won support for its campaign by organising many productive meetings with the Department for Transport, the Welsh Government, Network Rail, Railfuture, Sustrans, the Future Generations Commissioner for Wales and Transport for Wales. It has also secured the wholehearted support of the local authority, Monmouthshire County Council, and that of elected representatives of all political persuasions—not just myself, but Newport East Assembly Member John Griffiths, regional Assembly Members of different parties, the Magor with Undy Community Council and ward county councillors representing the area of Severnside as a whole.

[Jim Shannon (Strangford) (DUP)]

The hon. Lady has outlined the importance of a reliable, working public transport system. Statistics show that 55% of rural households are within 8 km of a hospital, but does she agree that if they are without access to a network of reliable, timely public transport, the Government must look into funding better public transport links such as the one to which she refers to ensure that the general public can access such facilities?

[Jessica Morden]

I thank the hon. Gentleman for that intervention. It is very true that we have to connect our rural communities in a better way, and I will say a bit more about that later.

Monmouthshire County Council says:

“The return of railway travel for Magor with Undy after many years will be welcomed by the community and offer many benefits. It will bring employment, retail, healthcare, education and leisure opportunities closer for residents and reduce traffic growth on congested local roads. It will significantly reduce the emission of greenhouse gases from transport and promote sustainable integrated travel.”

Indeed, one of the unique assets of the future station is that it would be one of the first community adopted walkway—rather than parkway—stations. It would be based in a central location within a 10 to 15 minute walk or cycle ride for all residents of Magor and Undy. That would tie in closely with the Welsh Government’s Active Travel (Wales) Act 2013, which encourages a cultural shift that leads people to get out of their cars where possible. It is estimated that a new station in Magor would have the potential to reduce traffic on the nearby busy B4245 by as many as 60,000 vehicles a year. The walkway concept also allows room for a multi-modal, integrated approach to public transport, linking in with local bus services.

Sustrans, the charity that encourages walking and cycling, is particularly supportive of the walkway station concept. Gwyn Smith, the network development manager for south Wales, says:

“Magor has a good network of paths that can easily lead to the proposed station site giving excellent opportunities for active travel. The scheme is well supported by the local community and the evidence we have seen is that it will be well used and is technically more feasible than other options. Recent transport modelling Sustrans carried out in south east Wales area also demonstrates that journey times from this area (using Severn Tunnel Junction and Caldicot stations) to Newport and Cardiff are significantly shorter than by car, making using the train the preferred option for many.”

Sophie Howe, the Future Generations Commissioner for Wales, has also voiced her support for the project, which she highlights will contribute to all seven of the national wellbeing goals outlined in the Well-being of Future Generations (Wales) Act 2015. She says:

“One of the goals of the Act calls on public bodies to contribute to a Wales of cohesive communities and this campaign has already highlighted what a positive asset this can be for the 6,500 people who live in this village in promoting, for example, local businesses, tourism and tackling loneliness and isolation. Additionally, I believe this station will contribute to creating a more resilient Wales. It’s believed that 11,000 vehicles a day use the B4245 and such a station could significantly decrease the CO2 emissions from these journeys and reduce traffic growth on congested local roads.”

Windrush

Jim Shannon Excerpts

Monday 30th April 2018 Commons Chamber

[Sajid Javid]

I very much agree with my hon. Friend. He once again points out the important distinction that must not be lost between legal migration and illegal migration.

[Jim Shannon (Strangford) (DUP)]

I thank the Home Secretary for his response to the urgent question and wish him well in his new position. What steps will he be taking to reassure migrants from other parts of the Commonwealth, and will he proactively make staff and time available to assist those people with any problems that they are experiencing?

[Sajid Javid]

The hon. Gentleman makes a good point about other members of the Commonwealth, to which I referred briefly a moment ago. I want to ensure that we are looking at this carefully to see whether we need to take further steps where people are affected. The hon. Gentleman will know about the taskforce that we set up for the Windrush generation. I will not hesitate in taking any further steps that would help.

Street Homelessness

Jim Shannon Excerpts

Tuesday 24th April 2018 Westminster Hall

[Jim Shannon (Strangford) (DUP)]

There has been a 32% increase in homelessness in Northern Ireland. Does the hon. Gentleman agree that, contrary to popular belief, homelessness is not restricted to people who sleep rough? It encompasses a much wider range of individuals in a variety of circumstances—particularly those with mental health issues.

[John Mc Nally]

I absolutely agree. I will come on later to describe some things I have already managed to do this year. I will first make other Members aware of what the Scottish Government are doing in relation to our own homelessness problems, and I will end my speech by taking the opportunity to mention two initiatives I recently had the honour of being asked to visit, to witness the innovative work being undertaken there to reduce homelessness in a very practical manner.

In Scotland, the SNP Government are taking action to end rough sleeping for good. Scotland has some of the strongest rights for homeless people in the world. A major change was made in the Homelessness etc. (Scotland) Act 2003: from 31 January December 2012, the priority needs criteria were abolished. This was described by Shelter as providing

“the best homelessness law in Europe”.

That is praise indeed. It was also described as very ambitious, and required 10 years of preparation between receiving Royal Assent in 2003 and coming into force at the end of 2012.

Everyone found to be homeless in Scotland is entitled to housing. Most people are provided with settled, permanent accommodation. Last winter—I hope it is now finished—the Scottish Government increased the capacity and capability of homelessness services in three Scottish cities, to meet the challenge of the harsh winter. As part of that strategy, the SNP Scottish Government set up the homelessness and rough sleeping action group to bring forward recommendations on how to eradicate rough sleeping, and also announced £150,000 of funding to extend some projects that had already been assisted in the winter.

Another great example of the Scottish Government’s commitment is the creation of the ending homelessness together fund of £50 million over five years from this year. Importantly, this focus on prevention has already contributed toward a significant fall in homelessness applications—a 38% reduction when compared with the number of applications between April and September 2007 and April and September 2017.

New recommendations to ensure the eradication of rough sleeping have been set out by the Scottish Government’s homelessness and rough sleeping action group. Some of the measures include a national system of rehousing, involving integrated support from frontline outreach services and, importantly, our own local authorities. For example, that includes moving to a Housing First model for those with the most complex needs, whereby people move straight into a permanent, settled home, rather than temporary accommodation. The Scottish Government invested £320,000 to support additional capacity for night shelters and extra staff, to help more people into accommodation over the winter. More money—some £150,000—will be committed this summer to continue some services going forward.

Jon Sparkes, chair of the homelessness and rough sleeping action group and chief executive officer of Crisis, said he was very pleased that the Scottish Government have

“given in principle support to all of the recommendations on ending rough sleeping from the Homelessness & Rough Sleeping Action Group”.

That group has to be praised for the manner in which it has dedicated itself to bringing the right recommendations that will have the biggest impact on the way people sleeping rough can access and receive services. The new recommendations have also been welcomed by Annette Finnan and John Mills of the Association of Local Authority Chief Housing Officers, who said:

“ALACHO members will welcome these new recommendations, they reflect much of the good work that is already going on in local councils across Scotland.”

That is praise indeed, and it is a good example of how Government and partners can work together.

As has been mentioned by many MPs when discussing Tory policy, welfare cuts are causing major hardship and housing insecurity for far too many people.

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

Jim Shannon Excerpts

2nd reading: House of Commons & Programme motion: House of Commons & Ways and Means resolution: House of Commons
Monday 23rd April 2018 Commons Chamber

[Dominic Raab]

The progress that has been made in my hon. Friend’s constituency is hugely welcome. If we look at the behavioural change across the board as a result of previous measures, we can see that 90% of councils have taken up the powers to apply the premium and that all but three of those councils are charging it at the maximum level of 50%. This has resulted in a 9% fall in the number of properties subject to a premium in those areas using the premium every year since the power was introduced.

[Jim Shannon (Strangford) (DUP)]

In Northern Ireland, measures have been taken in relation to accommodation above shops that is not being used for commercial purposes. The Minister has referred to rates relief for shops, and there is also a way of doing that in relation to the space above the shops in order to provide accommodation. Has he given any consideration to that possibility?

Cable Standards: Fire Safety

Jim Shannon Excerpts

Monday 26th March 2018 Commons Chamber

[Mr George Howarth (Knowsley) (Lab)]

I will try to live up to your splendid introduction, Mr Speaker.

Last year’s Grenfell Tower tragedy was, without doubt, one of the most shocking and disturbing building safety failures in living memory. As we know, the likely cause was a shocking failure of our building control regulations, and as a result, the Government established an independent review of building regulations led by Dame Judith Hackitt. A long-overdue national debate about buildings and safety has been taking place alongside the review. In her interim report, Dame Judith rightly stated that Britain’s building regulations are “not fit for purpose”.

I would like to place on record my thanks to the Safer Structures campaign, Electrical Safety First, the Association of British Insurers, the Fire Brigades Union and the Merseyside fire and rescue service for providing me with a briefing for the debate.

The focus for Grenfell Tower is on the specification and installation of the cladding used on the building. This debate concerns the need to eradicate substandard cabling from the market, because there is an overwhelming argument that our existing regulation is too weak and, as a consequence, exposes structures and those who live and work in them to unacceptable levels of risk.

[Jim Shannon (Strangford) (DUP)]

I congratulate the right hon. Gentleman on securing this salient debate. Does he agree that, with electrical fires being the cause of 20,000 fires in United Kingdom homes per year, we have a duty to ensure that people are able to check their cabling and understand how to do so to ensure that it is safe, for not only the people themselves but the councils, which have responsibility?

[Mr Howarth]

I am grateful to the hon. Gentleman for his intervention, and I will be giving some statistics that exemplify what he just said.

According to the Approved Cables Initiative, more than 27% of all electrical fires are attributable to faulty wire and cables, and there are serious concerns about the risks in our built environment that need to be urgently addressed.

A related concern is that current regulation is not being sufficiently well enforced. For example, in October 2017 the BBC published evidence from an investigation it carried out which exposed the fact that a now-defunct Turkish cable manufacturer, Atlas Kablo, has sold 11 million metres of cable to the UK that pose a deeply concerning fire risk. The Health and Safety Executive, which labours under severe resource restrictions, decided against a compulsory recall of all 11 million metres of that cable. Consequently, as far as I am able to ascertain, so far only 7 million metres has actually been recovered. That poses a real fire safety threat in cases where that cable is still being used.

Interviewed by the BBC, Sam Gluck, the technical manager at the electrical fire consultants Tower Electrical Fire & Safety, said that this approach had

“planted a bomb in the system”.

Mr Gluck added that

“if it overheats, it will ignite anything that touches it. If it’s against a plasterboard wall that will ignite”.

Dr Maurizio Bragagni, chief executive of Tratos—it has a factory in my constituency—and a founder of the Safer Structures campaign, added that

“it could be in any shopping centre, any venue, any building”.

Even where cable regulation is properly enforced, the standards are too weak. By way of background—the Minister will be aware of this—on 1 July 2017, the European Union introduced the construction products regulation. As a result, all cables sold in the EU now have to adhere to common standards, which should result in safer, more consistent building regulations and much improved public safety. The EU, however, has not been prescriptive in specifying which classification of cable performance should be used for buildings and infrastructure in each country. Instead, it is the responsibility of each EU member state’s regulator to decide this, and in the UK, this is the Ministry of Housing, Communities and Local Government.

At present, the Department has not specified which class of cable should be used for buildings, and instead requires all electrical installations in buildings to comply with British standard 7671—a minimum requirement equivalent to European class E. This means that flames can spread through a cable to 3 to 4 metres in under five minutes, and the fire will continue to propagate at the same rate, while at Euro class C, for example, the fire growth rate is limited to below 2 metres. On the range of Euro classes A to F, the A standard is virtually fireproof. Adoption of a higher standard at Euro class A, B1, B2 or C would lead to much greater resistance for permitted cables. In short, it would mean much improved levels of fire safety.

The official statistics on domestic fires make for sober reading. In 2016-17, 14,821 primary fires were caused by electrical distribution, space heating appliances and other electrical appliances. These three categories resulted in 44 fatalities and 1,353 non-fatal casualties. Another cause for concern is the electrical safety of white goods such as dishwashers, tumble dryers and fridge freezers, which are a major cause of electrical fires. In 2016, 1,873 fires were caused by domestic electrical white goods.

As you will recall, Mr Speaker, on 1 November 2017 there was an excellent Westminster Hall debate on the subject of product safety and fire risk in residential premises, led by my hon. Friend the Member for Poplar and Limehouse (Jim Fitzpatrick). I will not go over that ground again, other than to say that this is a serious problem and it needs to be addressed urgently.

Analysis by the Fire Brigades Union indicates that the number of fires and fire deaths is increasing. In the year ending September 2017, there were 346 fire-related fatalities compared with 253 in the previous year, which is a 37% increase—and it was even up by 9% if the tragic deaths at Grenfell Tower are not included. An improvement in standards must, by definition, lead to reduced fire deaths, less property damage and lower demands on already overstretched fire and rescue services. We should bear in mind that, since 2010, more than 11,000 firefighter jobs have been cut across the UK, and that represents one in five frontline firefighter jobs.

There are, as I have highlighted, genuine concerns about buildings such as Grenfell Tower and fire safety. I also have serious concerns about the growing private rented sector, which is far too lightly regulated. Electrical Safety First recommended that properties in the private rented sector should be subject to mandatory five-year checks and the fitting of residual current devices. This would enable substandard cabling to be identified, rather than, as at present, leaving it undetected until it causes serious property damage, injury or even death.

The post-Brexit landscape for regulation and compliance must, at the minimum, maintain the current protections afforded to consumers. There should be no deregulation of the product safety standards currently implemented. Following our exit, the UK should continue working closely with European friends to ensure that products entering the UK market are safe, and dangerous products are intercepted and reported.

One further point I want to make before I move to a conclusion concerns regional variations. Merseyside had 53% of its fires recorded as being electrical in origin, which is below the national average. During the same time, Manchester had 61%, and Norfolk, the Isle of Wight and Cornwall had in excess of 70%, of dwelling fires recorded as electrical. Of the 628 incidents defined as electrical fires on Merseyside, 133 were deemed to be “structural/fixtures/fittings”, and cables would fall into that category.

To conclude, I ask the Minister to consider the following questions. First, Dame Judith Hackitt’s review of building regulations must inevitably go through all the evidence thoroughly, and I accept that that will take time. However, in the case of cabling, would the Minister consider introducing immediate measures to properly regulate cable standards along the lines I referred to? The evidence is already there.

Secondly, will the Minister consider providing the resources to enable the Health and Safety Executive to identify the remaining 4 million metres of Atlas Kablo cable so that it can be recalled? Thirdly, will she undertake to see what further action can be taken on white goods to more fully identify the risks and any action that could be taken to eradicate those risks?

Fourthly, will the Minister carry out a review of the regions most prone to electrical fires to identify the common characteristics and what more can be done to deal with the problem? Finally, following our exit from the EU, will she commit to ensuring that there is no deregulation of cable standards in the UK?

I hope the Minister will accept that this is a very serious issue and that it is in need of urgent attention from her Department. I hope she will inject some energy into the work the Government need to do to combat it.

[The Parliamentary Under-Secretary of State for Housing, Communities and Local Government (Mrs Heather Wheeler)]

I am grateful to the right hon. Member for Knowsley (Mr Howarth) for raising the important issue of cable standards and fire safety. He has spoken about the Safer Structures campaign. Ministerial officials met representatives from the campaign last week to discuss issues around cable fire safety, and I hope that dialogue can continue.

Any debate about fire safety is of course overshadowed by the terrible events at Grenfell Tower last June. We must ensure that an event such as that cannot happen again. The public inquiry is looking at the circumstances of the fire, and we have commissioned an independent review of building regulations and fire safety to ensure that we have a regulatory system that is fit for purpose to deliver safe buildings.

When considering the fire safety of cables, there are three main aspects. The first is cables continuing to provide power to life safety systems in the event of fire. This is known as fire resistance of cables. Secondly, is the way in which cables burn, including how much smoke they produce. This is different to fire resistance and is known as reaction to fire. The third aspect is cables collapsing in a fire and preventing people from evacuating the building or hampering emergency services. I will set out how each of these aspects is controlled within the current system.

The right hon. Gentleman referred to European legislation. He was referring to the construction products regulation, which governs how construction products are placed on the European market, including those in the UK. The regulation works by requiring that products covered by a European harmonised standard must have a declaration of performance against key characteristics and must be CE marked. The European standard for cables, EN 50575, came into effect, as he said, in July 2017. This means that all electrical cabling should be tested for their reaction to fire and assigned to a performance class, which should be set out in the declaration of performance. It is up to member states, exactly as the right hon. Gentleman said, to determine whether they wish to set a minimum performance class through, for example, their building regulations. I would like to set out the ways in which our current regulatory system controls the safety of electrical cables in buildings.

The Government set standards for fire safety in buildings through part B of the regulations and approved document B. Approved document B contains guidance for the minimum fire resistance of electrical cables to ensure that life safety systems, such as fire alarms and emergency lighting, can operate during a fire. Also in approved document B are standards that attempt to prevent the spread of fire within a building—for example, in concealed voids where there may be large concentrations of electrical cables. Guidance states that physical barriers should be present to prevent fire and smoke spread within the void and throughout the building.

There are further standards for cables in electrical safety standards. The building regulation part P and the electricity at work regulations set requirements for electrical safety of work in homes and workplaces respectively. In both cases, the approved way to comply is to follow the British standard BS 7671, commonly known as the IET wiring regulations. BS 7671 is a long-standing and well-respected document, which sets a high standard for the electrical safety of installations, as the right hon. Gentleman said. Providing good-quality electrical work, in compliance with BS 7671, is the best way to reduce the risk of electrical fires starting in the first place. An example of BS 7671 improving standards is in requiring fire resistant supports for cables to prevent the cables collapsing in the event of a fire. This has been in the standard since 2015.

The BS 7671 standard also sets requirements for the reaction to fire from cables, equivalent to class E in EN 50575 under the construction products regulation. I am aware that BS 7671 is due to be revised in July 2018 and my officials have been working closely with the technical committees responsible for its contents. It is my understanding that the approach to reaction to fire is not due to change in the new edition, although there will be some further clarification on fire resistance supports for cables and a new reference to the requirements of the construction products regulation. I will be asking my officials to review the 18th edition of BS 7671 when it is published in July, and considering how we might reference the updated standard in our approved documents in future.

I understand that parts of the electrical cable industry think that the standard for fire reaction of cables should be higher. I am aware that there are differences of opinion on this matter within the industry technical committees and between different cable manufacturers in the UK. Some parts of the industry favour setting cable performance in response to the risk, which is how the existing system works, while others are asking the Government to set a blanket standard for all cables. I mentioned earlier that we have commissioned an independent review of building regulations and fire safety, as the right hon. Gentleman said, which is being led by Dame Judith Hackitt. Dame Judith’s interim report was published in December. In it, she identified product testing and quality assurance as one of the key areas she will focus on as she drafts her final report.

[Jim Shannon]

How can the Minister encourage electrical contractors to adhere to the new conditions to ensure that cables are sound and homes are safe?

[Mrs Wheeler]

I thank the hon. Gentleman for his second contribution tonight—the usual high standards for Strangford. The important thing is that BS 7671 in its 18th iteration will have that at its heart, because what we all want is safe cabling for the future for all our sakes.

I mentioned the independent review of building regulations. Dame Judith’s interim report was published in December. She is looking at identifying product testing and quality assurance as one of the key areas that she will focus on as she drafts her final report. I believe that that will answer the fifth question—I think—from the right hon. Member for Knowsley.

Dame Judith is due to produce a final report in the spring, after which the Government will consider her recommendations, including any specific recommendations concerning product testing and safety. I am happy to tell the right hon. Gentleman that as part of our consideration of Dame Judith’s recommendations, we will review the evidence of risk associated with electrical cabling to consider how we should respond. If he or other hon. Members have evidence that it would be useful for us to consider, please send it in to the Ministry.

In conclusion, a system of regulation is in place that controls the fire safety of cables. We do this through a number of regulations that work together to consider the fire performance of cables in the context of the building and to manage the risk appropriately. However, we recognise the importance of the issues that were raised by the right hon. Gentleman and the Safer Structures campaign. We await the recommendations of Dame Judith Hackitt’s review.

Local Infrastructure (East Midlands)

Jim Shannon Excerpts

Tuesday 20th March 2018 Westminster Hall

[Lee Rowley (North East Derbyshire) (Con)]

I beg to move,

That this House has considered investment in local infrastructure to secure new homes in the East Midlands.

It is a pleasure to serve under your chairmanship, Sir Roger. I welcome the opportunity to debate this important topic, particularly from a regional perspective, with Members from all parties who have joined us. I welcome the hon. Member for Chesterfield (Toby Perkins), my constituency neighbour, and the hon. Member for Nottingham North (Alex Norris). I welcome everybody on the Government side, from my right hon. Friend the Member for Derbyshire Dales (Sir Patrick McLoughlin) to my hon. Friends the Members for Charnwood (Edward Argar) and for Northampton South (Andrew Lewer), as well as everybody else who is not from the east midlands but who has come to listen to this important debate none the less.

We all know that the United Kingdom faces a huge house building challenge over the coming years. With a growing population and strong economic growth over the last two decades, the number of houses built in this country has lagged behind the number needed to ensure that people have access to affordable homes to rent or buy to live in. The ability and aspiration to own a home, or the ability to rent a decent one, are a cornerstone of our democracy. It is usually the largest purchase that we ever make, and it roots us in our communities, gives us control over the place in which we live and allows us over time to accrue the capital that gives us the freedom to do as we wish in our lives.

Despite having cautioned against it in a previous debate, I will refer to polling to make my argument. Polling consistently shows that, given a free choice, 80% to 90% of people would ideally like to own a house if they could. Interestingly, that desire has only increased over time. According to Ipsos MORI’s long-term tracker, those born before the wars were slightly less likely to aspire to own a home than those in subsequent generations.

However, the aspiration to own a home does not always equate to the ability to do so. Home ownership rates have been falling for a number of years; according to the labour force survey, just under two thirds of people were homeowners at the end of 2016, compared with nearly 70% 10 years earlier. Although home ownership rates have been higher in the east midlands than in the country as a whole, they have also drifted down slightly over the past 10 years, from just over 70% to just under it.

Although that headline movement is challenging enough, the actual distribution of that ownership has also shifted significantly over the past 10 years between different groups of people in our country, particularly by age. One of the most concerning trends is the reduction in home ownership for people my age and below. The likelihood of owning a home for those aged between 18 and 34 has fallen from more than half in 2006 to just over a third.

Capitalism works only when someone has the ability to accrue capital. For too many people at the moment, particularly those in the younger generation, their aspiration to accrue capital is not matched by their ability to do so. We all know that we have a problem; it has been debated many times in this place. Although the roots of all problems are usually more complicated than they look, there is a general acceptance that the issue here can be diagnosed: demand remains, but supply has fallen behind. As the Secretary of State stated in his housing White Paper earlier this year:

“This country doesn’t have enough homes. That’s not a personal opinion or a political calculation. It’s a simple statement of fact.”

The population is growing—by some estimates, more than 210,000 households are created every single year—yet the number of new houses being built has not kept up with that demand in any meaningful way for a number of years. In fact, until last year it was more than a decade since that number was hit. To find a time when we consistently exceeded that volume of 210,000 homes, we have to go much further back. Last year we had a breakthrough, with 217,000 new homes built as part of the Government’s target of achieving 1 million new homes by 2020. I welcome that, but we know that we have a significant amount of work to do to rebuild and to realise the home ownership aspirations of so many of our constituents.

[Jim Shannon (Strangford) (DUP)]

I thank the hon. Gentleman for securing the debate. The specific topic does not relate to my constituency, but the general issue resonates with me. Does he agree that not only does investment provide affordable homes for families in desperate need, but the actual construction of the homes, which perhaps we do not focus on, provides jobs and an influx of spending power into the local economy? There are two wins: houses for people who need them, and jobs that boost the economy.

[Lee Rowley]

I completely agree. House building is important for home ownership and for helping people to rent and put down roots, but also for the economic growth and the jobs that come with house building in the first place.

There is a general consensus that increased house building is needed, both to house our growing population but also, I hope, to fulfil the home ownership aspirations I have talked about.