Oral Answers to Questions

Debate between Kevin Hollinrake and Theresa Villiers

Thursday 25th January 2024 Commons Chamber

[Kevin Hollinrake]

That would make perfect sense. We read the Ofcom report into the review of universal service obligations with interest. Our clear position is that we will retain a six-day service for our citizens and businesses, but those views will be taken into account.

[Theresa Villiers (Chipping Barnet) (Con)]

T8. The Secretary of State has often stated her support for post-Brexit regulatory reform and divergence, and did so again in answer to an earlier question. Is she in a position to deny reports in The Daily Telegraph today that the Government have pledged to introduce a requirement that all future regulatory change will be screened to ensure that extra barriers in the Irish sea are not created? That could be a significant impediment to divergence from EU laws.

Oral Answers to Questions

Debate between Kevin Hollinrake and Theresa Villiers

Thursday 14th September 2023 Commons Chamber

[Theresa Villiers (Chipping Barnet) (Con)]

5. What recent progress she has made on regulatory reform.

[The Parliamentary Under-Secretary of State for Business and Trade (Kevin Hollinrake)]

My Department is making it easier to do business every single day. Our smarter regulation programme—which includes implementation of the reforms recommended in the report by the taskforce on innovation, growth and regulatory reform, co-authored by my right hon. Friend the Member for Chipping Barnet (Theresa Villiers)—is reducing regulatory burdens for business and reducing costs for consumers. We have announced reforms to employment law, wine regulation and product safety regulations, and further reforms will be announced soon.

[Theresa Villiers]

I thank the Minister for his answer, but can we have more urgency across Departments on regulatory reform? Using our Brexit freedoms to modernise our regulation is a key way to grow the economy and raise living standards, so can we see more progress on reforming regulation in areas such as personal data, clinical trials, agri-tech and satellites?

[Kevin Hollinrake]

My right hon. Friend the Member for Chipping Barnet is absolutely right to push us on this issue. We are working across Government to implement reforms. So far, we have delivered 10 of the 69 recommendations identified in the TIGRR report, in areas such as offshore wind and reforms to the Medicines and Healthcare products Regulatory Agency. Delivery of a further 49 is ongoing, in high-profile areas such as artificial intelligence reform, easing clinical trials, pensions, the ability to invest in venture capital, the General Data Protection Regulation and the seed enterprise investment scheme, all of which is saving businesses billions of pounds. My right hon. Friend the Secretary of State will shortly write to my right hon. Friend the Member for Chipping Barnet to confirm all those points.

--- Later in debate ---

[Kevin Hollinrake]

The hon. Member raises an important point. There is certainly, as part of the administration process, an obligation on the administrators to look at the circumstances that led to the demise of that company and report to the Insolvency Service. I am sure that she, like I, will be very interested in the outcome of that investigation.

[Theresa Villiers (Chipping Barnet) (Con)]

As chair of the all-party parliamentary group for events, can I highlight the huge benefits the sector brings us in promoting trade, exports and inward investment? Will the Department do more to promote the UK worldwide as a great place to bring international events, business meetings and conferences?

Leasehold Reform (Ground Rent) Bill [Lords]

Debate between Kevin Hollinrake and Theresa Villiers

2nd reading
Monday 29th November 2021 Commons Chamber

[Theresa Villiers (Chipping Barnet) (Con)]

I refer to my declaration in the Register of Members’ Financial Interests, which includes an investment property that is a flat held on leasehold.

I join other Members in strongly condemning the abusive practices that have prompted this legislation, including the sale of new leasehold houses where there is no justification, and spiralling ground rents that double every few years. All the rip-off practices about which we have heard in the Chamber this evening are simply not acceptable. I, like others, very much welcome the investigation initiated by the Competition and Markets Authority into some of the major developers in relation to unfair contract terms and what looks like mis-selling.

It is clearly right to legislate to stop sharp practices in the leasehold sector. It is also correct not to apply the ban on ground rents to existing leases, as that would retrospectively impact on long-standing investments, many of which are held by pension funds that support millions of people in their retirement. Instead, the Government will be helping existing leaseholders by making it easier to enfranchise or buy themselves out of ground rent obligations, and through their second-stage reforms.

As the Bill proceeds through Parliament, we need—as I said in my intervention earlier—to consider the retirement homes sector, where, as we have heard, ground rents are often being used to generate the capital to fund communal areas and shared facilities. Including retirement homes in the ban could affect future investment in this type of much-needed housing. As my right hon. Friend the Member for New Forest West (Sir Desmond Swayne) said, there is a case for considering a technical change to the Bill so that at least the retirement homes built but not sold prior to the commencement of the Act in 2023 are covered by the current rules, rather than the new ones.

A second potential alteration that should be looked at carefully is whether to allow the continued use of ground rents for some large, complex apartment blocks. This matter has been raised with me by a constituent who is worried that the exit of professional freeholders from the market, which is the expected consequence of abolishing ground rents, will leave leaseholders moving into such buildings with extensive financial and legal responsibilities. These complexities are intensified if there is mixed residential and business use.

The Housing, Communities and Local Government Committee acknowledged this issue in its 2019 report and advocated at least a temporary exemption for large, mixed-use buildings. If this carve-out were made, there would need to be a robust code of conduct to ensure that the remaining freeholders acted fairly. Violation of such a code should be subject to enforcement mechanisms. Having spoken to my constituent and his colleagues in the professional property sector, I think we need seriously to consider whether some leaseholders in some new blocks might want to have the option of leaving stewardship of their block to a professional freeholder.

[Kevin Hollinrake]

My right hon. Friend is making an important point. Would the code of conduct to which she refers—for those kinds of complex developments—include a cap on ground rents of, say, £100 or 0.1% of the value, whichever was lower, to ensure that the ground rent was always affordable?

[Theresa Villiers]

We would certainly need a cap, and the sort of levels that my hon. Friend mentions sound reasonable to me.

Let me turn to how this legislation will interact with new building safety laws. New building safety legislation will impose stringent responsibilities on freeholders, whether they are professionals or just flat owners who are banded together to manage their building. Frankly, not all leaseholders will want to take on such liabilities, yet this Bill will mean that for new flats, residents—whether they want this or not—will be jointly responsible for the safety, maintenance and upkeep of the apartment buildings in which they live, regardless of the size or complexity of those buildings. As my hon. Friend the Member for Thirsk and Malton (Kevin Hollinrake) highlighted in his earlier intervention, worrying research in a 2019 report commissioned by the Royal Institution of Chartered Surveyors and Built Environment Forum Scotland indicates that the removal of professional freeholders in Scotland has contributed to buildings falling into disrepair. A key problem that has been identified is that difficulties in securing a majority agreement among leaseholders and getting all flat owners to fund the repair works needed can significantly slow down remedial work, and that pushes up costs.