(5 years, 7 months ago)
Lords ChamberMy Lords, I very much agree with the noble Lord on that point: the essence of what we propose is that this is right for responsible landlords and it is right by tenants, who indeed sometimes go in fear of making complaints because of the possibility of eviction. That concerns a very small number of landlords, but this will knock that into shape to ensure we have the fairness of which I spoke.
My Lords, in theory legal aid and advice is available for eviction matters, though in practice there seem to be deserts in legal advice on this area because there are not sufficient practitioners who engage with that side of the law. Will the Minister consult the Ministry of Justice to ensure more incentives for lawyers to provide the service needed by these people in very difficult situations?
My Lords, the noble Lord speaks with great experience in this area. He will be reassured by the fact that the reform will in many cases mean that people will not need to go to law, because the law will be absolutely clear and the activity will therefore cease. Our consultation will be wide and open for people to contribute. He will also know that we are looking at other procedures for speeding up, simplifying and streamlining the process, and that should help too.
(5 years, 9 months ago)
Grand CommitteeWell, if it were consulted, why is it not listed in the Explanatory Memorandum, as far as I can see? Perhaps I have misread it—I apologise to my noble friend if I have—but I think it says that the ARB was consulted, or that officials
“have been in regular contact with ARB”.
The ARB is constantly referred to, not the RIBA. I have declared my interest, but it happens to be true that the RIBA is the body to which most architects would look for advice and to which they have given their concerns.
As this is not going to be a both-ways arrangement and because the Government do not want a no-deal exit from the European Union—although what the blazes they do want is increasingly difficult to understand, and I suspect that the negotiations would have gone much better if people had known in the first place what they wanted, because clearly not until very recently did anybody know anything about what we wanted—can the Minister give me an assurance that one of the things we will be seeking immediately in negotiations for some sort of reasonable exit—which of course would leave us in a worse position than we are in at the moment—but even if that was so, would be to make this a reciprocal arrangement and that that reciprocity would be at least as good as the present reciprocity?
That leads me to my last point, which is on the Immigration Rules. The architectural profession is remarkably badly paid. If you look at the average wage of an architect, it is remarkably low for a member of a professional body. So I am concerned, as was the noble Lord, Lord Shipley, that we should not allow the Immigration Rules to interfere with our ability to recruit from the rest of Europe. It seems to me that this is a serious double jeopardy system. Why do we have to have these rules? Surely we could have had, in these regulations, a very simple system which said that if you got a job with a British architect registered with the ARB you would be able to have that job. Why do we have to double-do it? Is there not a much more sensible way, which is merely to do exactly what we do at the moment and say publicly that we would like this to continue to be reciprocal, although we do not have the ability to make it reciprocal ourselves?
I remind my noble friend of the figures that have been quoted: it is likely that one in four of architects in the London area come from the rest of Europe, so this is no minor matter. Therefore, I hope that we can have assurances that the Government will seek, under any agreement, to have reciprocity and, secondly, that the Minister will look again at the idea that we have to insist upon going through our immigration arrangements, when we could have a perfectly simple system, like the one we have at the moment. We should look very carefully at any income limit in any case because it is likely to affect newly-qualified architects from the rest of Europe in a way that would do our profession no good. It would interfere with, and indeed endanger, the very large amount of money that Britain earns through the primacy of our architectural profession. When you are talking about what may be £2 billion, you are talking about a very serious amount of money. If we cannot recruit newly-qualified experts from the rest of Europe to a shockingly underpaid profession, that would do us a great deal of harm.
My Lords, not for the first time, Newcastle is united in this Grand Committee. I think we would both welcome the noble Lord, who has characteristically analysed the Government’s proposals in a very effective way.
This instrument will freeze the list of architectural qualifications that are recognised immediately before exit day in the event of a no-deal Brexit. As a result, an individual holding one of those qualifications will be eligible to join the UK register of architects if they have access to the profession of architect in their home state. This will allow access to the workforce of EU-qualified and EEA-qualified architects. The register of qualified architects of the UK held by the Architects Registration Board currently includes 40,650 members, 17% of whom were admitted under EU directive procedures. Given that significant number, it is astonishing that no impact assessment appears to have been prepared for this SI. The UK must of course continue to attract the best talent after Brexit and have an immigration system that responds to the needs of industry, especially in the context of the architectural sector. The London’s Architectural Sector report states that the city’s architecture industry is worth £1.7 billion and is growing at 7% every year. That figure is set against the industry’s total value nationally of £4.8 billion, a significant contribution to the economy nationally.
The SI makes little attempt to make up for the damage that the industry has faced since the referendum, which has caused an alarming amount of uncertainty for businesses in the last two and half years. Since the referendum, projects up and down the country have been postponed as this period of chaos has badly damaged the investment market. An article on Consultancy.uk referred to Global by Design, published in 2018 by the RIBA, which said that 68% of architects have already seen Brexit impact their revenue stream as they have had projects put on hold and moreover, crucially, that 74% of architects regard access to the EU single market as necessary if the industry’s international workload is to grow. Already 40% of practices have had projects in the EU cancelled since the referendum.
The regulations fail to protect the recognition of UK-qualified architects’ qualifications in the EEA in the event of a no-deal Brexit. Those architects will have to rely on the individual registration policies of the 27 member states. The Government must look to establish a new mutual recognition agreement with the EU as soon as possible in order to provide reciprocity, and a date for that would be very welcome. I will be interested to hear the Minister’s response on that issue.
The Explanatory Memorandum states:
“The applicant’s ability to establish in the UK will be dependent on Government immigration policies”.
However, the Government’s immigration Bill has stalled and a £30,000 salary requirement for skilled migrants has been suggested. How many architects from EU or EEA countries living in the UK earn more than £30,000 now? How many architects have already registered with the Government’s settled-status scheme? Being a tier 2 sponsor for those earning more than £30,000 is difficult for many architecture firms because the process is lengthy and expensive. Have the Government done any work with the sector and the RIBA to assess exactly how much it will cost and whether the sector can bear the cost? According to the RIBA, the number of EU architects registering to practise in the UK has dropped by 42% since 2016, and 60% of them here at the moment say that they would consider leaving. That would damage architecture as a service both in this country and abroad; it would clearly suffer.
Architectural qualification requirements are frozen during the review period. How long does the Minister expect that period to last? How will architects come and work in the UK with new qualifications during this period? Paragraph 2.14 of the Explanatory Memorandum states:
“After EU exit, the ARB may lose access to the Internal Market Information (IMI) system. This facilitates communication between competent authorities. As a result, this instrument places the requirement to provide written verification from their home competent authority on the applicant should ARB be unable to secure it directly from the relevant competent authority”.
What assessment have the Government carried out to determine the ease of getting this written verification? Does it differ between authorities? Paragraph 2.12 states:
“This instrument removes the registration route of General Systems, which enables EU and EEA applicants who do not meet the automatic recognition criteria to work with the ARB to map what experience they do have against the UK criteria, and gain the experience necessary”.
Will the ARB offer any additional help to get candidates to work in the UK?
Finally, what estimate have the Government made of Brexit’s impact on UK practices and individuals currently, or potentially, working in Europe? What steps, if any, are they taking to create a new system including a reciprocal system of accepted professional qualifications?
My Lords, I thank all noble Lords who responded to the SI. I will seek to deal with the various points they have made.
First, the noble Lord, Lord Shipley, rightly emphasised the importance of qualified architects from the EU 27. Of course, this measure goes a bit beyond that because it covers EEA-qualified architects from Liechtenstein, Norway and Iceland too. Switzerland is in a similar position but the EU 27 countries make up the most significant part of the regulations. I do not deny that the regulations are important for the United Kingdom—indeed, I would affirm it—because of the impact they would otherwise have on individuals practising here or seeking to do so in future, and because of the importance of this sector to the UK economy. The regulations are therefore important for those positions.
Like other noble Lords, the noble Lord referred to the general immigration position, rather than anything specific to architects as such. Reference has been made to the £30,000 threshold. I should say that as things stand, it is not the defined and final position of the Home Office. Rather, it is a recommendation of the Migration Advisory Committee so we will feed in information regarding different sectors. We are working with our professional business service colleagues in BEIS to collect information from architecture firms around the country on what the threshold should be. I agree with my noble friend about the position of architects as a profession: on the whole—with exceptions, of course—their earnings tend to be on the low side. That will certainly be a relevant factor and one we would wish to pursue.
The noble Lord went on to discuss the recognition of the general systems in a no-deal scenario. He could not understand why we were not pursuing that. I am not sure whether this was grasped, and it may be my fault, but I emphasise that we are seeking to freeze the qualifications that are recognised. This does not mean that those who go on to get those qualifications later on cannot then practise in this country. They can while this remains the legal position, so after this is passed it would not debar anyone with these qualifications from practising in the UK. Indeed, while this remains the law it seeks to facilitate that. It is not those people who already have the qualifications; it is recognising those qualifications. Anyone getting that qualification later on will certainly be able to practise in the United Kingdom. I remind noble Lords that the number of people using the general systems qualification is four or five a year. Of those who make inquiries about it, 96% do not pursue this route because it is very cumbersome and difficult, so it is viewed as better that they qualify in the way we are setting out.
(5 years, 9 months ago)
Lords ChamberMy Lords, I find that last question much easier than the others. Certainly, towns such as Berwick—one that is having elections this year would be eligible—although they are in a metro area.
On the definition of a town and whether it is anywhere that is not a city or a village, I know from visiting the cathedrals of England that not all of them are in cities, which adds to the complexity. Chelmsford is now a city, but it was not until recently; Southwell is certainly not a city, and so on. I do not think that it is as simple as the noble Lord put it in his question. I do not want to give a definition. Within mayoral combined authority areas, towns which are visibly towns and not cities will certainly be eligible.
My Lords, I refer to my interests as a councillor in Newcastle and vice-president of the Local Government Association. The north-east will receive this wonderful benison of £15 million a year for seven years across the region. It is still a trifling sum given the scale of the problems that the region faces. What role, if any, will county councils have in the process? I understand that the Minister is saying that they will not get no money, but they will surely have a role in promoting any improvements, particularly on the economic side, of the constituent district councils in those areas. What will that role be in practice? How will the Government evaluate the proposals being made? How long will the process take? Can the Minister give any assurance that the north-east in particular will benefit from significant improvements to its infrastructure, which is desperately in need of improvement? How much would he expect such a modest sum to afford when the county council in Durham has a deficit of £245 million a year?
My Lords, the noble Lord, Lord Beecham, rightly said that the region will receive £15 million a year for the seven years, or £105 million over the length of programme. For reasons that we know, it is an area that is due to benefit more than any other.
The noble Lord asked about the role of the county council in developing proposals. It will certainly be central, as will all councils. We want civic engagement, although, as he said, county councils will not necessarily be in the dominant position; however, they will certainly be there.
How proposals are evaluated will be outlined in the prospectus. I do not want to get ahead of myself by saying that money will go on infrastructure rather than on other projects, but certainly infrastructure will be eligible. We hope that the spending will be transformative, so infrastructure is important. I do not think that we can expect to sort out the bids yet. We do not know the quality of the bids; we do not know the process of the bids. These things are yet to happen.
(5 years, 9 months ago)
Lords ChamberMy Lords, I thank the noble Lord for all that he does, not only in relation to the regulation of property agents, but more generally in the area. The noble Lord has written to my honourable friend the Minister for Housing and Homelessness, and she will be replying. As I said, it is our intention that the Short Term Accommodation Association is the route forward, with the code of conduct that it is progressing, rather than that this coming under the ambit of the property agents group to which he referred.
My Lords, Airbnb lettings have increased by 187% in London since 2015, and 678% in Birmingham. Should not properties let on this basis be subject to business rates? I refer to my local government interests in the register.
My Lords, Airbnb is the market leader and is doing a good job within London, which is the only place where the 90-day limit applies. Its software ensures that you cannot go over the 90-day limit. As I understand it, to qualify as a business, you have to let for a minimum of 120 days, so that could not apply within London, but it could elsewhere, depending on the facts. I am not an expert in that area, but I do not think that it could apply in London because of that simple statistic.
(5 years, 10 months ago)
Lords ChamberMy noble friend is right: it is a good scheme that perhaps has not had the take-up we hoped for, and it might benefit from added publicity. I will take that message back because it is a good scheme and we are trying to do many things to get the housing problem under control. That is just one more, and it comes at a low cost.
What assessment have the Government made of the number of older people living in social housing while paying the bedroom tax, or who, because of rent increases, have moved into the private rented sector?
My Lords, I would be interested to know if the noble Lord has evidence of that happening. In short, we have not made that connection but if he has evidence, I would be very keen to see it and we can take it forward and share the results with the whole House.
(5 years, 10 months ago)
Grand CommitteeMy Lords, I declare an interest as a member of a local authority with a population of 280,000. I am also an honorary vice-president of the Local Government Association.
We are in the paradoxical position of passing regulations which effectively bypass the wishes of four district councils in Buckinghamshire and of the 47% of respondents to the consultation on the proposal to abolish these councils and merge them with the county council. As we have heard, they voted for two unitary authorities to be created from the four districts. Slough, which is geographically in Buckinghamshire, is already a unitary authority, and so is Milton Keynes. Their views were backed by the chair of the District Councils’ Network, who blamed the decision on what he described as “ill-conceived legislation”; namely, the Cities and Local Government Devolution Act. This includes a sunset clause expiring—curiously enough—in March, which permits the Secretary of State to fast-track changes with the consent of only one local authority; in this case, the county council.
Even the Secretary of State, who bears the uncannily appropriate name of Brokenshire, acknowledges the concern that a single unitary authority might weaken democratic engagement at the most local level. Incidentally, he said he would consult on whether this year’s local elections should be delayed to avoid councillors being elected for only one year. Can the Minister say what has been decided in respect of this matter?
The public consultation produced only a 35% response in favour of the proposals. How can the Government justify proceeding with such a slender measure of support? I understand that Chiltern and Wycombe District Councils—neither of them, I regret to say, yet Labour-controlled—wrote to the Secretary of State with notice of intention to institute a legal challenge. Joined by South Bucks, they are now seeking judicial review. Can the Minister indicate when the case is likely to be heard? Would it not be more seemly to defer any decision on the regulations until the legal proceedings are concluded?
In the debate on the draft regulations in the Third Delegated Legislation Committee, Dame Cheryl Gillan, the Member of Parliament for Chesham and Amersham, launched a blistering attack on the proposals. Among much else, she quoted the previous Under-Secretary of State, James Wharton, who, during the passage of the then Cities and Local Government Devolution Bill, stated that it was the Government’s intention to build consensus, saying:
“We are not going to impose change on areas that do not want it”.—[Official Report, Commons, 7/12/15; col.772.]
Given that four of the five authorities involved—that is all the district councils affected—oppose the proposals, how can the Government square their decision with that emphatic commitment? In addition to the unanimous view of the district councils, 70% of parish councils in the area support the proposal for two unitary authorities, as do local businesses and other stakeholders.
Dame Cheryl also drew attention to the Government’s effective imposition of the county council leader as the initial leader of the new authority, with a majority of county councillors on the executive and the potential appointment of the county chief executive as “implementation leader”. This looks uncannily like a county council takeover—a sort of Amersham Anschluss.
In his reply to the debate in the Commons, Minister Rishi Sunak said:
“It is time for a fresh start for Buckinghamshire. It is time for people to forget about what has happened in the past, leave aside the tags of district and county, and come together to work for the benefit of residents”.—[Official Report, Commons, Third Delegated Legislation Committee, 4/2/19; col. 18.]
This is all very well, but the people are being given no voice and no vote on the issue.
This is yet another example of government practice since 2010. Then, some councils were compelled to hold ballots on whether to move to elected mayors. Although many, including Newcastle, voted not to do so, the Government’s reaction over time was to require elected mayors as a condition of the establishment of combined authorities. Their contempt for local government was further exemplified by the abolition of regional offices of government—originally established by an earlier Conservative Administration—which had proved a successful way of building constructive relationships between the two tiers of government.
I trust that the Minister will not emulate his colleague in the Commons, who concluded the debate on the regulations by declaring that he was,
“confident that, before too long, we will have a happy resolution to all outstanding matters, and that the people of Buckinghamshire can look forward to a bright future”.—[Official Report, Commons, Third Delegated Legislation Committee, 4/2/19; col. 18.]
This is the utterance of a political Candide, believing that all is for the best in the best of all possible local government worlds.
My Lords, I thank all noble Lords who have participated in the debate on the proposals for unitarisation in Buckinghamshire. I remind noble Lords that a locally led proposal is the background to this—as it should be, as the noble Lord, Lord Beecham, rightly said. The provisions will run out on 31 March this year, when we will revert to the previous procedures and to legislation brought in under Tony Blair, if I am not mistaken. That would require an invitation from the Secretary of State to amend local government procedures, unless there is unanimity among local authorities, in which case it would not be necessary.
The noble Lord, Lord Stevenson, made a point about Milton Keynes. He is right that it is a dog that has not barked and was not part of the locally led proposal. I recognise that Milton Keynes is significant in that area but it was not part of the process. He also made a point about viable geography and the size of a unitary authority. I think this issue has been addressed; indeed, my honourable friend the Minister for Local Government dealt with this issue in the other place and followed it up with a letter that talked about the process. I will make sure that the relevant letter is sent to noble Lords.
Originally, we imagined a population range of between 400,000 and 600,000 people, but subsequently found that this was too high. I am not saying that no ranges are above that figure, but the norm is somewhere around the 300,000 mark I referred to. It is not a hard-and-fast rule, but it is a guiding principle. The size has an effect on the nature and the split of services; indeed, the children’s commissioner gave the view that one unitary authority would be more beneficial than two. That view was reflected in the consultation—not exclusively, I accept, but getting 100% support for proposals is always pretty unlikely in a consultation. There was certainly discontent from the authorities, all of which were not content with the status quo. We have not had representations from local parties saying that the proposals are untenable.
The choice facing my right honourable friend the Secretary of State was between progressing with one unitary authority for the four district authorities or with two. Obviously, a judgment of Solomon must be made. With respect, all the authorities are Conservative-led, so there can be no idea of this move being for political gain; that was not suggested but I want to make the point. The Minister acted in this way after looking at the viable geography and representations made, and trying to work out which proposal presented the best option for local government in the area. He thought that a single unitary authority was that best option.
I do not pretend that this will please everyone; clearly it will not. For example, it will not please the noble Lord, Lord Beecham, which I suggest will not change after I finish speaking and after the regulations have, I hope, been agreed to. As I say, we must look at the considerations I presented, the provision of services and the size of the entity. All are important but there was certainly little or no support for the status quo: 87% of people felt that the status quo was not viable, so the suggestion that this will upset everybody in the area is somewhat far-fetched. The noble Lord also mentioned the deferral of elections. They are being deferred for a year, in line with what all the authorities—district and county councils—asked for.
If I have missed any other points made by noble Lords, as I almost certainly have, I will pick up on them in a letter. Echoing the point made by the noble Lord, Lord Stevenson, noble Lords will get another bite of the cherry when the order comes forward and we look at some of its provisions in more detail. With that, I commend the regulations to the Committee.
(5 years, 10 months ago)
Grand CommitteeMy Lords, I concur with many of the points made by preceding speakers about this process and this instrument as an example of the secondary legislation on which we are having to spend so much time.
In the light of the Grenfell disaster, the subject of these regulations assumes greater importance than might otherwise have been the case. It is therefore even more unsatisfactory that no impact assessment has been published. What assurances can the Minister give that, in the absence of a deal, there will continue to be comparisons for industry and the public as to the performance and safety of products from other countries? Will the Government ensure that EU regulations are constantly kept under review and that steps will be taken to ensure that our standards keep pace with increased safety considerations applied within the EU? In the absence of an impact assessment, has there been any conclusion on the potential cost to businesses as a result of the change? The noble Lord, Lord Shipley, made that point.
What will be the process for designating standards under the new regime? Will parliamentary scrutiny of such new or amended standards take place? If so, will that happen under the “made affirmative” procedure? What form of consultation will be applied? In particular, will the British Standards Institution remain a member of the European Committee for Standardization? The Explanatory Memorandum declares:
“Existing European harmonised standards will become UK ‘designated standards’”,
and will be “identical”. Is that to be a permanent position? If not, what timescale is anticipated within which they may be reviewed or changed? What cognisance will be taken of any changes in the EU standards during that period, and by what methods?
Finally, is it to be a requirement that manufacturers must affix a UK mark to products? If so, to what extent have the Government received assurances that such a mark will suffice to satisfy buyers in the European Union or elsewhere?
My Lords, I thank noble Lords for their contributions to these undoubtedly important regulations; indeed, I do not deny that they are important. Obviously, I am not responsible for the usual channels and the timetabling of matters in the House and the Moses Room. I firmly believe that the comment made by the noble Lord, Lord Adonis, has probably been picked up elsewhere so I will leave others to deal with that matter. I apologise if he thought I was being discourteous but I do not think he asked me to give way, which is perhaps why I did not. However, I will deal with his points.
I can confirm that the regulations will not change the law, except mutatis mutandis, in that we are coming out of the EU so some of the terminology is different. The regulations seek to preserve the existing position on exit day, which is why there is no impact assessment. Bear in mind that both scrutiny committees have not commented on the lack of an impact assessment; there will be no impact because the law on exit day will remain exactly the same because of the regulations. To pick up on a point made by the noble Lord, Lord Beecham—I think I covered this in my opening speech but perhaps not at sufficient length or with sufficient clarity—any departure from existing standards will require new legislation through the “made affirmative” procedure, on which consultation will be necessary. At the moment, the normal review period for standards is a five-year cycle. I am not saying that this will always necessarily be the case, but any reason to depart from it would have to be strong.
The second general point made by noble Lords concerns the likelihood of our suddenly diverging, or diverging at all, if it is inappropriate for British industry and if there is no great clamour from the British public. It is hard to see why this would be done; indeed, it would not make sense. We should credit our legislators and builders—people with more common sense. There would be no reason to diverge just for the sake of it, particularly given the necessity of the consultation I mentioned. It is hard to see how that would become a priority in any way or something that anybody would want to do.
I take issue slightly with another theme that seemed to come through in noble Lords’ remarks: that the regulations are about safety. Essentially, they are not. They are about standardisation. We have a separate domestic safety regime, as one can see from the Hackitt review and the Grenfell disaster. This has not emanated from Europe; by and large, Europe has not been the focus of the Grenfell inquiry or the response to it, nor of the Hackitt review. This is domestic. I am not denying the importance of these regulations, but essentially they are about standardisation and supply chains so that, for example, bricks and window frames are of a standard size. They are not largely about safety, so I want to keep the focus where it properly belongs. That is the point. That is the reason for the lack of an impact assessment and, as I said, one of the committees would have picked it up if we were in breach of proper procedures. As noble Lords will know, they are very effective committees.
The noble Lord, Lord Shipley, talked about trading standards and additional burdens. He will know that there is already an existing provision that new burdens have to be properly financed. We would expect to consult on that with the LGA and interested parties. If there are new burdens to be imposed, that would be a necessary consequence.
With those comments, and with the certain knowledge this will be brought up again in the Chamber, I commend these regulations.
(5 years, 11 months ago)
Lords ChamberMy Lords, as ever, I thank my noble friend for a timely and helpful intervention. While his question related specifically to private residential buildings, I do not want to miss the opportunity of saying that in the public arena and the social sector, we have made £400 million available for remedial activity. I agree with what he says; that is part of the process the Secretary of State is engaged in. We are very aware that we need to complete this process. We want to do it with the assurance that leaseholders will not pick up the bill. That would be morally unacceptable, as we have indicated. I pay tribute to the many private companies that have come forward to say that they will sustain the financial cost of this position. We need to encourage, cajole and ensure that others do the same.
My Lords, first, I refer to my local government interests, recorded in the register. Secondly, I query the arithmetic which says that of 268 privately owned buildings, 212 have been started or completed, and 42 remain. Should that not be 56? If not, what happened to the other 14? More seriously, the Statement avers that local authorities have the power to complete the works and recover the costs from the owner. If they are unable to recover the costs from the owner, will the Government fund the work?
I thank the noble Lord for the points he has raised; I too questioned the mathematics. I will write to the noble Lord to confirm the position, but I think the other 14 are made up of hotels and other types of buildings that are not private residential buildings.
(6 years ago)
Lords ChamberMy Lords, I very much agree with the noble Lord about the importance of off-site construction. We are very much looking at encouraging that and giving it a boost in garden communities. The noble Lord will be aware of the growth in the market for modern methods of construction. We have a lot of domestic producers, which is a double win. It encourages not just more houses to be built, and fairly quickly, but also British jobs, so I very much agree with his sentiment.
My Lords, I refer to my interests as a vice-president of the Local Government Association and a member of Newcastle City Council, which in the first year I was elected built 3,000 council houses. Affordable social housing rents are defined as 80% of market rents, which are inflated. Will the Government review that unrealistic definition of what is affordable and will the Minister indicate how many of the 300,000 houses envisaged by the Government will be built by local authorities or housing associations?
My Lords, I acknowledge the distinguished service of the noble Lord—over 51 years, I believe, in Newcastle. We obviously face very different challenges from those in the years when the noble Lord was first elected. That said, I accept that these new challenges mean that we have to consider different tenures and ways of delivering. He will have noted what I said about raising the housing revenue account, which will to help bring forward a new generation of council housing in Newcastle and elsewhere. I note what he says about affordable housing, but it is a preferred measure to press ahead and tackle what is a very important challenge, which we all acknowledge.
(6 years ago)
Lords ChamberMy Lords, the Minister referred to what I said at Second Reading and he is entirely right. I welcome Amendments 3 and 4. They are hugely helpful because they give local housing authorities the flexibility they need to do their job properly, and for that reason they have our support.
My Lords, I join the noble Lord, Lord Shipley, in supporting these government amendments. It certainly is an important function for local authorities. I have to confess—and I refer to my interest as a sitting local councillor—that I am not entirely sure where the funding for this comes from. Do the Government support this financially, or is it left entirely to local authorities? In the latter event, will he look into the extent to which authorities are financing this important element of support for tenants? We certainly support both amendments.
My Lords, I thank the noble Lords, Lord Beecham and Lord Shipley, for their support. I will write to the noble Lord, Lord Beecham, but I suspect that this money comes from local authorities—although of course it finds its way from successive Governments. I suspect that this is part of their functions, but I will certainly cover that in a letter, if I may. The noble Lord never misses an opportunity to focus on an issue such as this, and I will be very pleased to respond to him.
(6 years ago)
Lords ChamberTo ask Her Majesty’s Government what assessment they have made of objections raised by the Home Builders Federation to proposals from some local authorities to set targets for accessible or adaptable new-build houses.
My Lords, we want to build more accessible homes that meet the needs of older and disabled people. Government policy provides a clear and robust framework to support the delivery of accessible housing. Building regulations already require minimum standards of accessibility for all new dwellings. The Government intend to publish new planning guidance on housing for older and disabled people before Christmas and are scoping a review of the accessibility provisions in the building regulations.
My Lords, at a time of growing concern about the support required by an increasing number of elderly people as life expectancy grows, the Home Builders Federation is objecting to councils seeking to set new targets to increase the number of homes with room for wheelchair users and that can be adaptable. Given that this is a highly profitable industry where 400,000 permissions to build are as yet unimplemented, what action will the Government take to assist local authorities to ensure, through the planning system, that sufficient housing is provided for people with homes suited to their needs?
My Lords, first I pay tribute to the people who yesterday supported the International Day of Persons with Disabilities. Many buildings in both the public and the private sectors were lit up in purple for that purpose. I agree with the general thrust of the noble Lord’s question. As I say, the Government are very clear on this. For the first time in the planning guidance within the NPPF, we have made it a responsibility to take care of the interests of older and disabled people. As I say, planning guidance in support of that will be out before Christmas. We are reviewing Part M of the building regulations, which again is a crucial issue in relation to M4(2). That is also to be published in the new year, I think.
(6 years, 1 month ago)
Lords ChamberMy Lords, I agree with the sentiments expressed so well by my noble friend. This morning I spoke to the Chief Rabbi’s office, which has described the response of British communities around the country as, “heartening and reassuring”. It is important that we stand united against this hatred. It has been heartening that other religious communities, particularly the Muslim one, have been leading crowd funding for the victims of Pittsburgh. I repeat: we will not let hatred win.
My Lords, the House will congratulate the noble Lord for tabling this Question. All noble Lords, and most of the population of this country, were horrified at the tragic loss of life and the irrational hatred which inspired it. Thankfully, this country does not have a gun culture, nor a Government who believe that the answer is to equip places of worship with weapons—in a country which has more guns than people. We welcome the support that the Government currently give to the Community Security Trust, which helps to achieve safety and security not only for the Jewish community but for the Muslim community and other minority communities. I invite the Government to consider making statutory provision for something which is now Labour Party policy and would be acceptable across our political system: an emphatic repudiation of the violence and hatred which have disfigured life in America and taken so many lives.
My Lords, I thank the noble Lord for his contribution. The Community Security Trust is specifically for the Jewish community. Other vulnerable places of worship fund their own protection, but the noble Lord is right that we look at this across the piece. We are well aware of the importance of that protection and the Government have given particular heed to it over the years. He is also right about arming people: let there be no doubt that the more arms there are, the more danger there is. This was pure evil and it needs to be called out as such.
(6 years, 5 months ago)
Lords ChamberMy Lords, I will have to write to the noble Baroness on the precise date of the last meeting of the Rough Sleeping Advisory Panel. I know that it is active in looking at these issues, but I will give the noble Baroness an update on the position and place a copy of that letter in the Library.
My Lords, does not this problem require a rather different approach? Should the planning system not be given the powers and necessary funding to ensure that the abuses which have so often been raised by the indefatigable noble Baroness and others in this Chamber can be dealt with?
My Lords, on planning, the position at the moment throughout the country, except in London, is that it is open to householders to provide short-term accommodation in their homes, so there is no particular planning issue on that point. As regards London, as I have said previously, there is an enforcement power that lies with London boroughs which has been used, probably on many occasions, to prevent issues coming to court. As the noble Lord will appreciate, there is also in leases in appropriate cases, as exemplified by cases such as Nemcova, the opportunity for landlords to enforce the provisions. If there is a wider issue in this regard, I would be very happy to engage with the noble Lord, but I am not convinced that there is.
(6 years, 5 months ago)
Lords ChamberMy Lords, I will further add to that by declaring my own interests as a vice-president of the association, and also as a serving councillor in Newcastle. I rise to present the views of these Benches in the absence of my noble friend Lord Kennedy, who is en route to Birmingham for the Local Government Association conference.
I have had some experience of dealing with, or attempting to deal with, the problems of empty houses in the ward I represent in Newcastle. It has been impossible, eventually, either to persuade the owners to do the necessary work or, in one case, to acquire the property. While I certainly support the amendments before us, and I understand that they are likely to receive a reasonably warm response from the Minister, it occurs to me that perhaps the aspect of acquiring properties is a matter that should be given further consideration. It is an alternative approach that might well result in a quicker resolution of the problem, and enable the availability of a usable home, than simply collecting money by way of an incentive, as it were, for owners to do something, which may not be all that effective. I would be grateful if the Minister would indicate whether the Government will look again at the powers of local authorities to acquire in these circumstances, and whether these need to be enhanced, particularly in terms of the timescale involved. On the ground, it would probably make a greater difference than these measures, welcome though they are as an additional arm in trying to deal with this situation, which is, at a time of housing shortage, really quite disgraceful and should not be tolerated.
My Lords, I thank noble Lords who have participated in the debate on Report. I shall, if I may, give the Government’s response and then try to pick up some of the points that have been raised by noble Lords during the debate. I am grateful, first, to the noble Lord, Lord Shipley, as the noble Baroness, Lady Pinnock, obviously is, for moving the amendment, to the noble Baroness, Lady Pinnock, and to the noble Lord, Lord Beecham, for speaking on behalf of his noble friend Lord Kennedy, who is on his way to the LGA conference.
I turn first to the amendment relating to the escalator. The noble Baroness and the noble Lord, Lord Shipley, were kind enough to say that his amendment has received government support as well as support from the Labour Benches—we have obviously involved the noble Lord, Lord Kennedy, in discussions on this, and others as well. This would mean that properties empty for between five and 10 years could face premiums of up to 200%, and homes empty for more than 10 years could be subject to 300% premiums. I stress that that is a matter of discretion for local authorities, which is written through all of this legislation. It is something that I and the Government have not been keen to depart from. It is a matter of localism—the noble Lord, Lord Stunnell, used that word several times.
I indicated in Committee that I had some sympathy with the suggestion that was brought forward and that I would reflect on it. The Government have reflected carefully on the arguments advanced by noble Lords at Second Reading and in Committee, and accept that there is a strong case for even higher premiums than those originally mentioned for homes that have been empty for an extended period of time. While we are unable to accept the amendment as it is currently drafted, I hope that noble Lords and the noble Baroness will be pleased to hear that we intend to bring forward a government amendment with the same effect at Third Reading.
Properties that have been empty for more than five years are likely to be few in number. I say to the noble Earl that this is not a revenue-raising measure: the intent is to free up properties for housing where they have been empty for a protracted period of time and to improve the amenity of a given area. It is not about raising a significant amount of revenue: I do not think that it will. It will raise some, but not a significant amount. However, such properties are often a blight on local communities and a nuisance to local residents. I accept that a strengthened incentive of a 200% or even 300% premium may prove more effective in such difficult cases, and could therefore ultimately bring benefits to the wider local community.
As I have mentioned in previous debates, we have to strike a balance in making this judgment, and ensure that no one is subject to the tripling or even quadrupling of their council tax bill without due consideration to the particular circumstances of the case. In relation to points first raised by the noble Lord, Lord Shipley, about the broader social issue of property that people buy intending to leave it empty, I accept that that concern goes well beyond this targeted piece of legislation. I do not disagree with the general thrust of what he said at all. We will no doubt want to look at that. It will rightly remain up to local authorities whether and how to implement any higher premium based on local circumstances. That is important. Local authorities will know their circumstances best and how to target the premium in whatever way they want within the general broad framework that we have set out. We must ensure that higher premiums are applied fairly, but that will be done through the mechanism of the local authority.
We will, however, take the opportunity to revise the guidance issued in 2013 on the use of the premium to ensure that the additional powers are exercised with due consideration to issues facing low-demand areas and cases of hardship. We will have the benefit of today’s and earlier debates to look at when we consider how that is best done. We will also look to ensure that home owners have sufficient notice to prepare themselves for this change. That is something that I have shared with the noble Baroness, Lady Pinnock, and the noble Lords, Lord Shipley and Lord Kennedy. We anticipate that the higher premiums would come into force in 2020 for 200% premiums—anything that had been vacant since 2015, could in 2020 attract that higher premium—and in 2021 for 300% premiums, so that anything that had been vacant since 2011 could then attract that 300% premium. We are not convinced that local authorities have reliable statistics about empty properties longer ago than 2011, but they should have them from 2011 onwards because of current policy. That is a further consideration but not the only one. We were wary about the retrospective effect of this provision and felt that we should give appropriate notice, which noble Lords will understand.
I now turn to the second amendment tabled by the noble Lord, Lord Stunell, and the noble Baroness, Lady Pinnock. As the noble Lord indicated, there was a similar amendment in Committee. This is slightly different with the insertion of the word “normally”, but that should not disguise the fact that this is still a directive to local authorities with the addition of “normally”. I hesitate to throw compliments the way of the noble Lord so I had better not call it a noble concept, but I admired the way that he sought to indicate that this amendment was different from the one in Committee. I am tempted to say “nice try”, but I am not convinced that it is different in kind.
The current system allows local authorities to take into account such considerations. Indeed, if they want to, they can go further than the noble Lord’s amendment and be more generous. There is nothing to prevent them exercising their discretion in this way, as well as for other good reasons—this is not the only good reason, although it is undoubtedly one. However, fundamentally these sorts of decisions are best made locally by those who know the challenges and demands of a given area. As already mentioned, it should remain a matter for local authorities to decide not only whether to charge a premium but the exact rate at which it should be charged.
I shall try to pick up the other points that were made. First, the noble Lord, Lord Shipley, made a point about probate. I think that property that has not yet had probate is exempted anyway, although I accept that thereafter the period would kick in, so it is a relevant point.
In relation to most of the rest of the questions raised, I am afraid that I cannot read my own writing. I have made a note that the noble Lord, Lord Beecham, made some good points but I have not put what they are—nor should that be a surprise to anybody because he always makes good points. However, we will pick up the good points that require an answer and respond in writing.
My Lords, it is an affliction that lawyers, along with doctors, bear, so I understand the point that the noble Lord is making.
To sum up, we accept that there is a strong case for a higher premium, and I thank noble Lords who worked with us on the so-called escalator. I am pleased to say that the Government intend to bring forward their own amendment at Third Reading to the same effect. On the second amendment, although the Government recognise and understand the positive sentiment behind the noble concept of reducing the premium, it is a matter that we feel is best left to local authorities, as they have that discretion. Therefore, I hope that noble Lords will agree not to press their amendments on the basis that I have outlined.
(6 years, 5 months ago)
Lords ChamberMy Lords, my noble friend makes some powerful points, and I pay tribute to what she does in this regard. First, I agree with her about the importance of people in this House exercising discretion—of course, within the bounds of free speech—about what they say. Secondly, I am aware that Tommy Robinson is in Her Majesty’s Prison Hull, and I was aware that he was hosted here recently. I was recently in Hull myself, not on prison visits but on faith visits.
My Lords, the Labour Party has been criticised—rightly, as it has now acknowledged —for failing to respond promptly to claims of anti-Semitism in its ranks. Recently, we have learned of a number of cases of Islamophobia in the Conservative Party, and today it has emerged that, four weeks ago, the Muslim Council of Britain wrote to Brandon Lewis, the party chairman, requesting an inquiry, to which it received no reply, prompting it to write again yesterday, saying:
“We cannot have an approach where you are hoping that the issue would magically go away so that (you) could avoid a bruising inquiry into anti-Muslim prejudice”.
Will the Minister—held, as he is, in the highest regard in this House—use his best endeavours to ensure that his party and the Government respond constructively to the concern expressed on behalf of our Muslim fellow citizens?
My Lords, I first thank the noble Lord for his kind words and what he said about anti-Semitism, which needs tackling in all political parties, as does Islamophobia. I fully accept that. He will probably be aware that the Prime Minister answered a question on this in PMQs today and made clear our determination to deal with the issue. I cannot give him an update on a letter that was sent yesterday—that will probably take a bit longer—but there have been suspensions and expulsions and, wherever there is evidence of Islamophobia in our party, it will be dealt with severely, often with expulsion. I hope that we can look to other political parties to do the same with respect to all religions—this is something that affects all of us. I share the noble Lord’s aspiration that this be properly dealt with.
(6 years, 8 months ago)
Lords ChamberMy Lords, on the general point about how we decide whether it is appropriate, we depend on grassroots support for a deal. There has been support, as the noble Lord has indicated in relation to his specific point about Yorkshire, for an all-Yorkshire deal. We have made a compromise proposal to the authorities and have not yet had an agreed response. We are progressing, as the noble Lord will know, with a south Yorkshire deal, after which it will be open for a broader deal which could cover the whole of Yorkshire, but we are still working on that.
My Lords, growth in the north-east at any rate depends very heavily on vast improvement to the rail connections between that region and the rest of the country, particularly the north-west. When is this going to happen? Will the Government answer a question I have repeatedly asked: if Scotland goes for abolition of air passenger duty, will that also be extended by this Government to airports in the north-east?
My Lords, on the first point, I will need to get back to the noble Lord on the specifics of the rail link. I cannot recall him asking that question previously, but I will make sure that he gets a detailed response on that. Similarly, on the airport question, I welcome the commitment we have had in relation to Carlisle, which no doubt the noble Lord would also welcome. In relation to air passenger duty, this is an ongoing discussion with the devolved Administrations, and I know that it is a live discussion in Wales as well.
(6 years, 9 months ago)
Lords ChamberCertainly, it is, but before we cause great confusion on the part of anybody tuning in now and thinking that they have tuned into Cardiff Bay, I think all noble Lords will realise the dangers of us going down that path. Suffice it to say that it is wise in the light of that not to be led down the path of discussing a federal second Chamber, although there are certainly issues worthy of broader consideration on another occasion. However, I appreciate some of the points being made.
I am pleased to note that the noble Lord, Lord Beecham, is recovering from his injury and that it is not more serious than it looks.
I am grateful to the Minister for that. I should make it quite clear that it is not damage inflicted by Brexiteers.
I am not sure that the noble Lord is absolutely certain of that, because it seemed to be a Tube driver who caused the accident. Anyway, I am pleased that it is not a serious injury.
The noble Lord talked about the particular issues in the north-east in relation to government offices and so on. Again, I think it wise to leave the matter for the new arrangements, but I take the point about the great regional interest of the north-east. It is worth mentioning in passing that there was an opportunity under the previous Labour Government which was turned down pretty heartily, but circumstances change and it does not mean that there are not regional interests that need looking after.
We have had a fascinating and wide-ranging discussion. As I have indicated, I am very sympathetic to the aim of what is being sought, but it should not be on a statutory basis. We will follow up with a ministerial Statement. The Minister for Local Government will proceed shortly to discuss this matter with Local Government Association representatives cognisant of the fact that interests in Scotland, Wales and Northern Ireland will need protecting. I understand the concerns. In light of these assurances, and with the undertaking that I will update the House on Report, I urge the noble Lord to withdraw his amendment.
(6 years, 10 months ago)
Lords ChamberMy Lords, I endorse what other noble Lords have said, particularly my noble friend on the Front Bench. I do not dissent from anything that has been said—I certainly endorse his views about the frankly ridiculously low levels of penalty for failing to comply with the requirements, given the amount of rates that will necessarily be involved in so many cases. My question is about the system more generally. There is well known to be a huge backlog of appeals across the country. That is difficult for local councils to manage because dealing with these issues requires expenditure in its own terms. What are the Government doing to speed up the process of dealing with appeals? Will they make resources available to local authorities to do that? It is an injustice to the local community if these decisions are delayed and is actually not very good for businesses anyway, because they ought to be clear what the position is. Yet for many years delays have taken place and proceedings are very costly.
I ought to remind the House of my local government interests, as a local authority member and, like several Members of this House, an honorary vice-president of the Local Government Association.
My Lords, I thank noble Lords who have participated in the debate on these Non-Domestic Rating (Alteration of Lists and Appeals) (England) (Amendment) Regulations 2018. I turn first to the noble Earl and thank him very much. We engaged on an earlier set of these regulations, on the “check, challenge, appeal” procedure. Picking up a point just touched upon by the noble Lord, Lord Beecham, the reason for that procedure was mainly to deal with the backlog of appeals, which, the noble Lord will know, was growing. I thank noble Lords for their general support for that procedure: it was felt that reform was greatly needed.
The noble Earl made two specific points. I know that he has requested a meeting with the Minister in the Commons. The Minister has indicated that he is very happy to talk further about some of these issues with the noble Earl but in the meantime I will deal with a couple of the specifics he raised. First, on the registration and verification process, which, as he said, appears in many regards to be unnecessarily wieldy, the Valuation Office Agency is working with businesses and agents to review the registration process to see what might be done to minimise any burden. I am very happy to write to the Valuation Office Agency again to ensure that that is being done—the noble Earl highlighted some areas where it clearly could be done.
The noble Earl secondly touched upon the issue of guidelines in relation to penalties and procedures: the noble Baroness, Lady Donaghy, also dealt with this. Some guidance is touched upon in paragraph 9.1 of the Explanatory Memorandum, as the noble Baroness said. I can confirm that the guidelines are being worked upon by the Valuation Office Agency, and I have ensured, in discussion with the Valuation Office Agency, that these guidelines will be issued ahead of any penalties being levied. They will be available and I will make sure that they are circulated to noble Lords who have participated in this debate and a copy is placed in the Library; that seems entirely reasonable.
The noble Earl and other noble Lords raised the definition of carelessness. This is a well-established definition in law. I refer noble Lords to many taxing statutes and other regulations where carelessness is defined. It is also true, although in fairness the issue was not raised, in relation to “knowingly” and “recklessly”. “Carelessness” would obviously require a much lower standard of proof than would be required for “knowingly” or “recklessly”, but it is a well-established principle in law.
(6 years, 11 months ago)
Lords ChamberBefore the Minister sits down, can he clarify that he will deal in writing with the point I raised about paragraph 7.1 of the Explanatory Memorandum, which talks about tackling,
“the most serious and prolific offenders”?
I am grateful to the noble Lord. I had unintentionally missed that point in summing up. As I said, we will certainly be making guidance available to local authorities in a booklet. I will give more detail on that in my letter.
(7 years ago)
Lords ChamberI am still looking forward to hearing from the noble Lord, Lord Beecham. I am sure there will be time.
I thank my noble friend very much for the welcome he has given to the pilot in Lincolnshire, and we certainly look forward to seeing how that pans out. I also thank him for the qualified welcome for the local government settlement from the Local Government Association. I have read its response and it welcomes some of what it is in the settlement. I can well understand its position. It would be most extraordinary if in any year the Local Government Association said, “That’s everything we want”, and my noble friend did not disappoint on that front.
I thank him for the welcome that he gave regarding the new homes bonus. I agree that there is a challenge in relation to adult social care—as I said, we have the summer review coming up—and I also agree that there is a challenge in relation to children’s social care. We have recognised that with additional funding but I note what he says.
I also note what he says in relation to South Holland in general, although perhaps not his request to trial full cost recovery of planning fees. We have not yet agreed to that. It is something that we are looking at, and obviously we would make sure that it went through a proper process if we did agree to it. However, I thank my noble friend for his response.
My Lords, first, I refer to my interests as a Newcastle city councillor, in which capacity this is the 51st local government settlement that I have had to engage with.
I notice that the Statement bears the heading “Check Against Delivery”. I assure the noble Lord that local government will certainly check against the delivery of the Government’s intentions as expressed in the Statement, and it will certainly hold the Government to account for the consequences of this settlement.
Perhaps I may refer in the first instance to the question of business rates. The Statement says:
“The aim is for local authorities to retain 75% of business rates from 2020-21 … From 2020-21 business rates will be redistributed according to the outcome of the new needs assessment”.
I have two questions about that. First, how far have the Government got in developing a system for equalising—or, at any rate, balancing—the distribution of business rates? Secondly, are they now looking at the position of firms such as Amazon with large out-of-town premises, paying next to nothing in business rates and, for that matter, probably diminishing the return of business rates in local authorities with this new economy that is forming? Will the Government look at the implications of that for financing local government, as well as perhaps in other respects?
There is also a distinct question about the funding of children’s social care, which is said to amount to some,
“£200 million on innovation and improvement in children’s social care”.
The present situation is that the funding is £600 million short of what is required to support the existing services. Even if this £200 million were devoted to closing part of that gap, it would still leave those services substantially underfunded. It seems to me that the Government have not taken the right step in adequately funding what is a crucial service and one which, as my noble friend pointed out, is growing and will be an ever-greater call on local government finances.
I also have a question about the slightly odd wording, if I might put it that way, on page 6 of the Statement, in which the Government announce their intention to give,
“local authorities the continued freedom to use capital receipts from the sale of their own assets. This will help fund the costs of transformation and release savings”.
But if these are capital receipts, they cannot be used for revenue purposes—can they?—which the Statement appears to imply. They can be used for capital purposes which might have marginal impact on the revenue side, but they cannot be used to contribute significantly to the revenue situation.
My noble friend referred to the shortfall in education expenditure, but there is clearly also a significant shortfall in social care, to which the Statement made no reference at all, as he pointed out. That is a serious burden on local authorities. Ultimately, and this is the other side of the problem, that will probably increase the costs for the National Health Service. If local government cannot provide social care, the call on the health service, and in particular hospitals, will grow disproportionately. The Statement makes no effort to deal with that situation.
So far, the check against delivery is not encouraging, but it remains to be seen whether, over time, the Government can improve on what has been a pretty downbeat result for local authorities and, more importantly, their citizens.
My Lords, the noble Lord referred to his 51 years in local government. We know from his contribution today that he has not lost any of his enthusiasm—like a young colt, he was anxious to intervene and make his point, and I congratulate him on that. However, it was the usual dismal litany of matters that he set out, and unlike his noble friend on the Labour side, he did not welcome some of the points in the Statement. Let me try to deal with some of the perfectly fair points that he made, some of which I will respond to, if I may, subsequent to the Statement.
On how far the fair funding review has gone, as I indicated we are opening the consultation today for response by 12 March, with the intention of bringing it in in 2021. Obviously, there is thinking on the broad general principle, but we want to see how we look at issues of deprivation and provide a fair funding formula.
The noble Lord referred to the broader question, which has been raised before, perfectly validly, of online shopping and the fact that there are some very large players such as, but not limited to, Amazon. He suggested that it is perhaps a question of rebalancing some of the ways that we raise money. I will cover that in a letter, if I may, but from memory I think that there is an international aspect to this issue that kicks in in the spring—there is reference to this issue and we are participating in that. I appreciate that that is a rather woolly reference, but I will clarify it in correspondence.
The noble Lord referred to the significant challenge, which certainly exists, in children’s social care and adult social care. We have provided already a precept of 3% from the last Statement a year ago, and we have increased flexibility this year in relation to the referendum, which helps. However, I accept that there is a significant challenge. I accept also that the noble Lord is right to say that we will be checked against delivery.
The noble Lord made a point about capital purposes, and we are both mere lawyers in this regard. However, I think that there is probably some accounting process whereby transformational investment from capital funding, which would help with the revenue side of things, is classified as capital. I suspect that that is the case, but again I will take up that somewhat technical point in correspondence.
The noble Lord is right to refer to a broader consideration of the complex—or perhaps not so complex—interrelationship between the health service and social care and the need to get that right. This has challenged Governments of all colours in the past, but I accept that there is a broader question that we need to look at.
The noble Lord will be pleased to know that, in relation to Newcastle, there is a £2.3 million increase in funding from this settlement, quite apart from the referendum uplift, and a maximum additional funding of £6 million as a result of the council tax flexibility previously announced. I am sure that that is of some comfort.
(7 years ago)
Lords ChamberMy Lords, I feel sure that what happened at Grenfell Tower could happen in relation to any building which was similarly clad. That would certainly apply to some buildings not in the public sector that, as we know, have been subject to the same review. The approach of Dame Judith Hackitt is to come forward with a uniform building standard, which I think we would all recognise as necessary. It should be a very tight standard and fire safety should be put front, back and centre of it—that is the prime lesson that we learnt from the review.
My Lords, in addition to the issue of sprinklers, to which the noble Lord, Lord Patten, referred, another issue to arise from the disaster was the lack of more than one exit from the premises. I have not read Dame Judith’s report and do not know whether she has dealt with it—she may well have done—but it would helpful if the Minister could indicate whether there is any intention to move on that front, so that there is an option for people rather than their having to rely on only one exit being safe.
Might the Government also consider insisting on a supply of small fire extinguishers—I have to confess that I have only recently acquired one myself—for the sort of event that might happen in a kitchen or with an electrical appliance? Again, it may be a matter that Dame Judith has covered; if she has not, perhaps the Minister could consider including that in any review. Some relatively modest expenditure may be involved— they are not very costly items—but it would potentially enhance safety quite considerably.
I notice that the Minister did not quite find time in his reply to deal with a number of the questions raised by my noble friend from the Front Bench. No doubt he will undertake to respond to those in writing subsequently.
Finally, I join others in expressing our deep sympathy—on behalf of the whole House, not only those who are here tonight—for what terrible strain and tragedy have done to that community. We are glad that there is all-party agreement that we have to tackle this issue substantially right across the sector and across the country. I hope that the Government will provide the necessary funding, which would be quite considerable, to deal not only with the capital side but with the beefing-up of building regulation.
(7 years ago)
Lords ChamberMy Lords, my noble friend is right about some of the particular challenges faced by London. She is also absolutely right to pay tribute to Crisis and Shelter, both of which are represented on the advisory board that we have just set up in relation to tackling the problem of rough sleeping. We have put £28 million into that and are funding three pilots in the country, as well as the £20 million rough sleeping grant that already exists.
My Lords, I have by sheer coincidence this week been approached by a young woman in my ward in Newcastle, a 22 year-old with a small child, who has been the tenant of a property for three years, paying her rent regularly and actually improving the property. She has now received notice to quit within three months from her landlord. What advice does the Minister suggest that I give to her and what action will the Government take to protect tenants in such a position from landlords taking action of this kind?
My Lords, I am not acquainted with the case that the noble Lord mentioned, but I would be very happy to have a look at it if he wants to share the details with me. We are spending an awful lot of money on homelessness prevention, which is important in this regard. We have trailblazing areas—I think from memory that Newcastle may be one of them. Certainly Gateshead is—but that might not be music to the noble Lord’s ear. I will gladly look at the case that he refers to if he would like to share it with me.
(7 years, 1 month ago)
Lords ChamberI thank the noble Lord for his question in relation to emergency planning. He will be aware that one of the terms of reference of the inquiry is the actions of the local authority and other bodies before the tragedy, so it certainly will be picked up by the inquiry. Further to that, what we obviously want to ensure, and no doubt the House will totally support this, is that all the lessons from this are learned by all local authorities and public authorities. We would wish the message to go out and we will ensure that that happens. The messages from this are to be learned by local authorities for the future, including in relation to emergency planning along with many other issues.
My Lords, I declare my local government interests as a councillor in Newcastle and as an honorary vice-president of the Local Government Association. I thank the Secretary of State and the Minister for the tone and the content of the Statement that has been made today. It is clear that there is a great deal going on, and a great deal more to be done. However, I should like to ask about the general situation in the country. What is going to happen about the installation of sprinklers up and down the country? That is a key issue. I am not expecting an immediate decision, but is there a timescale within which it is likely that a decision can be made?
In addition to that, to what extent are the Government engaging with the owners of other multi-story buildings; that is, housing associations and privately owned blocks that are not in the social housing sector? Presumably all of these blocks will need the same checks that were lamentably lacking in the case of Grenfell if we are not to see, unfortunately, some kind of repetition. It is not a matter that can be resolved quickly, but the sooner we start on it, the better. I hope that the Minister can give us some assurances in those respects.
I thank the noble Lord very much indeed for his typically generous comments about the tenor of the Government’s response to this dreadful tragedy. He asked specifically about the position on sprinklers. Perhaps I may restate something that has been said before, but it certainly bears restating: the Dame Judith Hackitt review is looking at building regulation and fire safety and it will certainly be considering this issue. I have also just looked at the terms of the inquiry and it is in there as well, so I have reassured myself that it is in place. Obviously we will await the results of these two independent inquiries. It is for them to make their recommendations and we would expect to carry them forward and regard them with appropriate seriousness.
The noble Lord also asked about the position of blocks other than those which are within local authority control; he specifically asked about housing association and privately owned blocks, and perhaps by inference other government blocks—there are some in the health sector and in education that are subject to the same principles that are being carried forward on testing and so on. That is true of housing associations as well. On private blocks, we have asked local authorities to follow up in relation to the blocks in their areas and have asked for a response from them. We will follow up on those responses in due course.
(7 years, 2 months ago)
Lords ChamberMy Lords, I thank the noble Lord, Lord Shipley, for what he said about the work carried out by the public sector. I certainly echo his thanks to people from throughout the country who have come to help at Grenfell on a voluntary basis. That shows our country at its very best.
The noble Lord asked about essential work and sprinklers. I think he raised a similar point somewhat earlier in relation to the Hackitt review. As I said then, having set up the review to look at building regulations and fire safety—it will obviously look at sprinklers, and the inquiry will doubtless want to look at that as well—I do not think we should prejudge what it will come up with. If it recommends that something essential be done, clearly, the Government will take that very seriously—I cannot imagine it being otherwise—and that would include points relating to retrofitting.
On the difference with Scotland and the devolution element, I know from a previous life that if you have devolved systems, policies may diverge, sometimes for very good reasons. Therefore, I will not tread on any toes by pontificating on something I am not clear about, except to say that these things are sometimes quite different.
My Lords, Newcastle is not the only city or place where in recent years a huge number of newly built multi-storey buildings have been constructed to house students. Do the Government have a view on requiring the builders of those buildings to ensure that they also check issues concerning cladding and sprinklers? In respect of the latter, I endorse the plea of the noble Lord, Lord Shipley. I hope the Government decide that it should be a requirement to install sprinklers. If so, I hope they will ensure that they provide appropriate finance, and that this will not simply fall on local council residents.
I thank the noble Lord, Lord Beecham, for that point about Newcastle and more generally on higher education. I can confirm that some higher education and further education blocks—on which I think we have published statistics—also fall foul of these concerns, and they are being looked at in exactly the same way. That is also true of one or two buildings in the health service. It does not extend more widely in other areas of government, at least not in England; separate considerations and reviews are going on in Scotland, Wales and Northern Ireland. I reiterate that we have set up the Hackitt review, which is looking at building regulations and fire safety, including sprinklers, for the specific reason that we want it to come up with evidence-based recommendations. We should not anticipate those, but I can confirm that, obviously, whatever it comes up with—this goes for the inquiry as well—will be taken seriously by the Government, and, no doubt, by opposition parties as well.
(7 years, 2 months ago)
Lords ChamberMy Lords, it will be soon. I am not sure that it will be tomorrow but it will be soon. I thank the noble Baroness for her customary patience and I understand the frustration that she must feel. She will know that there have been events over the past five months that have conspired to contribute to the delay, but she can rest assured that we are determined to take this forward. I think that she will be reassured very shortly and I look forward to talking with her and progressing this through the House.
My Lords, the Statement refers to the “billions of pounds of funding for new affordable homes” that has recently been announced. I take it that that refers to the £2 billion and the 20,000 or so houses that will be built. Will the Minister indicate how that money will be allocated and where we can expect to see the new houses? Further, will he indicate whether the Government are looking at the escalating levels of ground rent that are contained in some of these long leaseholds, because recently the problem of ground rents going up very substantially over a period has been frequently raised? Finally, I refer him to a matter that has arisen in Newcastle. A charity that wanted to enfranchise a long lease was apparently unable to do so because it contravened some provisions of the Charities Act. I will send him a copy of counsel’s opinion on the matter and invite him to look at it, because it seems to be anomalous. The charity in question would have been prepared to do it but apparently was not allowed to do so by law.
My Lords, I thank the noble Lord for that. He rightly identified the £2 billion of additional money that was announced on 2 October for affordable housing. We will shortly issue details of how the money will be spent. On the ground rent issue, I mentioned in relation to leasehold reform that we will be responding to the consultation very shortly and looking at banning future long leaseholds with ground rents where they are inappropriate. I am very happy to look at the Jarndyce v Jarndyce situation he referred to in Newcastle—obviously I am not acquainted with it at the moment but I will have a look at the position and would be happy to meet him to discuss it if it would be helpful.
(7 years, 3 months ago)
Lords ChamberMy Lords, the right reverend Prelate is right about the consultation. Noble Lords will appreciate that this afternoon I will say something in relation to housing need, which of course was covered in the White Paper. Meanwhile, much in the White Paper is delivered independently of the consultation. I have referred to the infrastructure but there is also the land release fund, and increased planning fees will come on stream shortly. We are analysing the responses that came in as a result of the consultation and we will come forward in response to that in due course. I thank the right reverend Prelate for the work that his cathedral does. I was there not long ago—more than two weeks ago, I should say to the noble Lord, Lord Foulkes—taking account of what was happening there and the great work that is being done.
When will the Government recognise that each notion of affordability of houses for purchase or rent bears little relation to the circumstances of vast numbers of people who require new housing?
My Lords, the noble Lord may be aware that affordability is basically 80% of market rent. He will probably be reassured by some of the things coming forward which are to be presented in the Commons and which I will be repeating. He is obviously right that it is important that we help those people who cannot afford an affordable rent. We are doing that. We are looking at bespoke deals, for example, and we are progressing that with Leeds and the West Midlands.
(7 years, 3 months ago)
Lords ChamberMy Lords, I am not sure whether that was a question or just an observation on what I said. But if the noble Lord is asking whether I will look at that report and take it seriously then, as he rightly says, it is a respected committee and of course we take its views very seriously, as indeed we do the views of noble Lords around the House.
My Lords, the Minister did not respond to my request about the funding of the VOA. It seems at the moment unlikely to have sufficient resources to carry out the job that the Government wish it to do.
My Lords, I apologise for missing that point. I am not sure whether it was made when I slipped out—it conceivably was—but it is a fair point anyway. If I may, I will write to the noble Lord about it and copy that to other noble Lords who participated in the debate.
(7 years, 5 months ago)
Lords ChamberMy Lords, I thank the noble Lord. Perhaps I may track back on to something that I should have mentioned earlier in relation to those blocks that have, after testing, been found not to be compliant. In those 75 cases, my department will nominate a specific employee to liaise about the necessary action. That is in relation to all those public sector or social housing blocks that have been identified. In relation to the private sector blocks, subject to the same sort of constraints at 18 metres and above, we have been in contact with all the private sector landlords and are recommending that they test the cladding. It is not compulsory; we are making a facility available to them without charge, but those are not part of the 600 blocks which I mentioned. I am sure that we will want to follow up on that but, as things stand, it is not compulsory. We are focusing on the social rented sector at the moment because that seems the right thing to do.
My Lords, there has been a systemic failure to deal with policy in relation to fire for some years. One reads newspaper reports, which I think the Minister has confirmed, that some action was intended in recent years after reports were received, but nothing has yet happened. Can he confirm that, as the situation is reviewed after this tragedy, it will be a cross-governmental engagement? All departments ought to be involved—one thinks, for example, of education, health and indeed justice, with prison establishments. It will need to reach out to the private sector as well. It has already been indicated that there are potential problems in private developments, which also need to be covered.
Can the Minister confirm that, so far as local authorities are concerned—and it may be that a similar principle will have to be extended to other areas, such as health—the full costs of this will be met by government? I remind him that a reduction is going ahead now in council house rents, which will help the Government’s finances by significantly reducing housing benefit. Some billions of pounds will be involved over a long period. I suggest that, if the Government are looking for a resource to fund the necessary work, that would be one way—by using the money being diverted from local authorities at the moment—to ensure that they are at least able to carry out all that is required of them.
First, I thank the noble Lord for his point on the involvement of other government departments. As I have indicated, it is absolutely right that this is wide-ranging. I also mentioned in the Statement the fact that some of the people on the ground in the Westway centre near Grenfell Tower are from DCLG; they are also from many other government departments as well. There is certainly a recognition— more than a recognition, an embracing of the fact—that this involves many other government departments. He is absolutely right to mention education, health and justice.
The most important duty of any Government is to keep people safe. We recognise that, and there will obviously need to be a discussion about the cost of this. We do not yet know what the cost will be. I suspect that the testing we have seen so far has indicated some of the more urgent instances. We cannot conclude that this is the case, but it may well be that local authorities have recognised those blocks where there is a concern and therefore submitted those samples in a timely way. We might therefore find that the 60 in one category and the 15 in another category are not representative of the rest of the 600 blocks. Let us hope and pray so; we do not know that yet. We will want to engage with local authorities once we know the sum total of what it will cost, to see how that is determined, but some local authorities—notably, Kensington and Chelsea—are perhaps not quite so short of money as others.
(7 years, 9 months ago)
Lords ChamberMy Lords, I join the Minister and the noble Lord, Lord Shipley, in paying tribute to the noble Baroness, Lady Cumberlege, for her very thoughtful and constructive—and somewhat exhaustive —approach to the deliberations on the Bill. It has been a pleasure to work with both the Ministers, but particularly, if I may say so, with the noble Lord, Lord Bourne. I make that point having discovered recently that he, like me, is a great fan of Leicester City; in my case, it is my second team. I rather hope we might be playing in the same league next season and I hope that will be the Premiership. In that event, perhaps the noble Lord would care to accompany me to a match, when naturally Newcastle will expect to beat my other team.
The substantive issue this afternoon is not the fate of either of those teams but the drawing to conclusion of the Bill. It has been a pleasure to work in such a constructive way with both Ministers, but principally, on the major part of the Bill, with the noble Lord, Lord Bourne. He has listened carefully and been very constructive in his approach. Indeed, the whole experience has been a vast improvement on the dreadful time we had with the Housing and Planning Act last year. That is no reflection at all on the noble Baroness, Lady Williams, who struggled mightily to retain her sanity and promote ours during the course of that legislation.
I have one or two questions about Amendment 1. Proposed new sub-paragraph (3)(d) says that a meeting should be held following the issuing of invitations, which are outlined in proposed new sub-paragraph (3)(c). Is that a meeting with an individual, or is it envisaged as a public meeting in which other interested parties would be involved? There might be a number of people who make submissions; there might be only one or two. Would that meeting be just with those who make the contact, or will it be on a broader basis? The definition of “persons” is slightly mysterious. It talks about,
“the qualifying body … the local planning authority”—
that is obvious—
“and ... such other persons as may be prescribed”.
Can the Minister indicate what is envisaged by that rather muffled description?
Then there is the question of the regulations. Will the regulations themselves be subject to consultation? The noble Lord, Lord Shipley, referred to consultation. Will the specific regulations in relation to this amendment be subject to consultation in the way that the Minister has described generally the consultation which will take place on other matters?
Having said that, and while I wait with anticipation to hear the Minister’s response, again I congratulate him and the noble Lord, Lord Young, on the way they have conducted this matter. I look forward to that degree of co-operation continuing over the secondary legislation that will follow. It is very important that the Bill should go forward into practice in a way that, frankly, we have not yet seen adequately with the Housing and Planning Act 2016. I hope that we can learn from that experience and carry the Bill forward in the constructive way that Members of all sides have sought to treat it.
My Lords, I thank noble Lords who have participated in the debate on these two amendments. First, I thank once again my noble friend Lady Cumberlege for the gracious way that she has approached this, and for her kind words in welcoming the amendment and the flow chart. I suspect that her kind words about the role of the officials in the flow chart will have its cost in terms of drinks and cakes; nevertheless, I thank her very much indeed for those kind comments. I can confirm to her and to other noble Lords that the regulations will be subject to the negative procedure which, given the weight of business we will have as a consequence of the EU withdrawal process, is welcome news.
I thank the noble Lord, Lord Shipley, once again for his kind words and very much agree that this is a better Bill because of the scrutiny that has come from all parts of the House. I agree that there is support for the neighbourhood planning principle from all parts of the House and it is important that we see that to safe haven. Clearly, it is not just about the Bill. I very much agree with him on the plain English guide—I know that he made that point before very forcefully. We will certainly do what we can with the website and the flow chart. I would welcome participation and views from noble Lords as to how we can improve them. I will pass on the thanks that he gave to the RICS for the practitioners’ guide. I am sure we all hope that that will be in plain English, as it is extremely important.
I turn to a point raised by the noble Lords, Lord Shipley and Lord Beecham, and my noble friend Lady Cumberlege in relation to the timing of the regulations. Clearly, as the consultation ends on 2 May, I cannot anticipate how many responses we will have in relation to this matter. I hope that it will be quite a lot. We intend to move quickly and not to delay things, but we need to make sure that the system works well. I hope your Lordships will understand that we would want some time to take account of those views. In relation to the very fair point made by the noble Lord, Lord Beecham, about continuing the process of consultation and getting it right by discussing it with others, I would anticipate discussing the shape of what we are going to do with my noble friend and with the noble Lords, Lord Beecham, Lord Shipley and Lord Kennedy, and others, but that would not be to slow the process down. We have to get the balance right there, but I would be very happy to do that.
I thank the noble Lord, Lord Beecham, for his generous invitation to St James’. An invitation from me would be to the King Power Stadium, if we are indeed in the same league next year. As he may know, I am in Newcastle on Friday of this week and when I said that I am visiting the two cathedrals, many people told me that there are actually three cathedrals—the third being St James’. I do not think I have time for it on this occasion, but I look forward very much to locking horns over football for once, rather than over politics. I am sure that would be a game we would both enjoy.
In relation to the points made by the noble Lord, Lord Beecham, about who is included under new sub-paragraph (3)(d) in Amendment 1, we want to make sure that there is an open, fair and transparent procedure. In relation to meetings, therefore, I do not think we would want to stipulate that a group should be of a particular size. It would not be just individuals, but if somebody wanted to come along from the neighbourhood group with a fair number of people, we would be looking to that. We are not prescribing anything; it is important that it is an open and transparent process. In relation to other bodies that may be prescribed, I think that other amenity groups might have an interest in the area—I will write to the noble Lord if I am wrong on this—and it could conceivably be the National Trust, if it had property there. I anticipate it would be that sort of thing.
I have dealt with the noble Lord’s point in relation to the consultation on the regulations, which will, as I say, have the negative procedure. I thank again those noble Lords who have participated in the debate on these amendments.
My Lords, I support the amendment and I hope the Government will react sympathetically to the objectives that noble Lords outlined. We certainly are at one with them. I speak from my experience in Newcastle. It is important that the Government should see the logic of the case that is made in the amendment, and I hope they will treat it accordingly.
My Lords, I thank noble Lords who have participated in the debate on Amendment 3 in relation to office-to-residential conversion. I particularly thank my noble friend Lord True and the noble Lord, Lord Tope, for bringing before us again the issue of permitted development rights for change of use. This enables me to set out in more detail the proposal that I put before noble Lords on Report in a very sketchy form, and to which I promised to return. At the time, I spoke about the potential benefit of allowing greater flexibility over whether the permitted development right for the change of use from office to residential should apply to those areas that are delivering the homes that their communities need. I am sure noble Lords will agree that it is in everybody’s interest to ensure that we do not put future housing delivery at risk. In fairness, that point was made by the noble Lord, Lord Tope.
The housing White Paper sets out compelling evidence of why it is crucial that we fix our broken housing market—one of the greatest barriers to progress in Britain today. Noble Lords will know that in the year to March 2016, over 12,800 homes came from the change of use from offices to residential alone. However, as I said on Report, I recognise that while the national picture is positive in terms of the contribution of permitted development rights to housing delivery, in some places there have been concerns about the local impact.
We can all agree that some authorities are high performers in delivering new housing. I am therefore pleased to confirm our future approach to Article 4 directions to remove the permitted development right for the change of use from office to residential where the local planning authority is delivering 100% or more of its housing requirement. As we have set out in our recent housing White Paper, we will introduce a new housing delivery test which will measure an area’s local housing delivery against its housing requirement. It is proposed that the housing delivery test will be measured as an average over a three-year rolling period and data will be published alongside the net additions statistics in November each year. We propose that housing delivery will be assessed against an up-to-date local plan, London Plan or statutory spatial development strategy—or in their absence, published household projections—and that the first housing delivery data will be published in November this year. This will indicate to local authorities whether this additional Article 4 flexibility would apply to directions they brought forward after this date.
We are committing today that, following the publication of the housing delivery data, where an authority is meeting 100% of its housing delivery requirement and can continue to do so after removal of the right, and where it is able to demonstrate that it is necessary to remove the right to protect the amenity and well-being of a particular area—that might address the point that the noble Lord, Lord Tope, raised; there is still that continuing obligation although it may conceivably be a larger area than at present, but there is not the necessity to satisfy that test—the Secretary of State will not seek to limit a direction applying to that area.
When considering whether to bring forward an Article 4 direction regarding office-to-residential conversion, the local planning authority must demonstrate that it can continue to meet its housing requirement when the right is removed. This provides an important safeguard to ensure that local areas will continue to deliver the homes that communities need. For instance, we know that in the year to March 2016, the homes delivered under the right made a significant contribution to housing delivery in some areas.
Importantly, the Article 4 direction must continue to meet the test set out in the National Planning Policy Framework. As I say, the local planning authority must still provide robust evidence to demonstrate that removing the permitted development right is necessary to protect the amenity and well-being of the area where the right is to be removed. This could include impact from the loss of office space. I hope that is helpful to the noble Lord and to other noble Lords who have participated in the debate on the Bill. Where these tests are met, we would look more generously at the area across which the direction would apply and not seek to limit the direction. Of course, housing delivery changes over time. Therefore, local planning authorities should review their housing delivery annually and, if it falls below 100% in subsequent years, we would expect them to review the direction and cancel or modify it as necessary. The local authority may then be able to bring forward a further direction at a later date on the back of improved delivery where it had dipped below the housing delivery test.
This approach reflects the intent of the noble Lords’ amendment. It allows areas that are meeting their housing requirements local flexibility in having a greater say over where the right will apply as long as they can demonstrate that removal of the right is necessary and that they will continue to meet their housing need. It enables local planning authorities to determine such cases in accordance with their local plan, any neighbourhood plan and other material considerations. At the same time, it provides safeguards should housing delivery decline. Moreover, it does so within the existing Article 4 processes, with which local planning authorities are familiar.
(7 years, 9 months ago)
Lords ChamberMy Lords, my noble friend is right about the importance of the 1908 Act and subsequently the 1925 Act, and the Government subsequently tightened the statutory duties on local authorities in the 2014 guidance which ensures that existing plot holders are protected if a local authority wishes to dispose of the allotments. That protection is in place.
My Lords, while allotments make a valuable contribution, public parks play an even larger part in promoting health and well-being. Last October, the Heritage Lottery Fund warned that local council cuts were endangering the condition and health of public parks, and last month the CLG committee warned of cuts of up to 97%, with some parks facing a return to the neglect suffered in the 1980s and 1990s. What are the Government doing to mitigate this threat to amenity and public health?
My Lords, as always, the noble Lord is absolutely right about the importance of green spaces, which, as he will know, are well protected in the housing White Paper, which is open for consultation until 2 May. I have no doubt that the noble Lord will respond to it.
(7 years, 9 months ago)
Lords ChamberMy Lords, I endorse my noble friend’s approach to this matter. He has referred to the very different views of the department in relation to local opinion in this case. When we were discussing the previous order, the Minister in the other place said that the consultation was effectively inadequate, unreliable and unrepresentative. On this occasion, he, or at least his department, have had the grace to acknowledge that the “vast majority”—to use the phrase reported in the Secondary Legislation Scrutiny Committee’s report, published yesterday—opposed the mayoral element in the order. Nevertheless, the Government obviously intend to go ahead, given that we are discussing the matter today, with creating a mayoral authority.
The Government are assuming the posture of Henry Ford. Noble Lords will recall that one could have any colour of car as long as it was black; here, people can have any local deal as long as it is mayoral. That is not a choice. Frankly, it is little short of political blackmail. If you do not take this structure, you are not going to get the support. That is not the normal way that Governments of any political colour have operated. It is deplorable that the clear view on that aspect of the deal by the “vast majority” of residents in this area, as the Government acknowledge, is going to be overridden. The Government say, “You have a choice”, but that is not a choice. It is putting the authority and its people in a completely unacceptable, invidious position. The Government should be ashamed of requiring that condition to be met, given the scale of need that the noble Baroness, in particular, mentioned in relation to this area.
Clearly, the order will go through; but the Government ought not to be adopting that stance in relation to this issue.
My Lords, I thank the noble Lords who have participated in this debate on the Tees Valley combined authority order. Notwithstanding the final comments of the noble Lord, Lord Beecham, I thank them for their general support—there was certainly support from the noble Lord, Lord Kennedy, from the Labour Front Bench.
I shall try to address the points that have been raised. First, I had read the comment of my noble friend Lord Eccles that this is not really a valley. I should know that myself because as a child I lived for some time in Hartlepool—indeed, my brother was born there—so I empathise with that. Nevertheless, I am tied by following the title of the document.
It is perfectly true that Darlington, Stockton and Hartlepool are not contiguous. I note what my noble friend Lord Eccles said about whether Durham should look north or south. Of course, we have had the experience of parts of County Durham—certainly South Shields and Gateshead—not wanting to be part of the deal for Newcastle or Tyneside, and that runs contrary to the assertion that this is being imposed by a wicked Government. They had every right to walk away from it, and I keep coming back to that point. The noble Lord, Lord Beecham, shakes his head but it is not mandatory for local authorities to have these arrangements. If they do not want them, they do not have them.
There are presumably advantages in them because we have had a welcome for the order from the noble Lord, Lord Kennedy. In general, he thinks that this is a good thing and he is supporting it—with caveats, which I understand is the role of the Opposition. However, if a local authority does not think it is a good idea, it has every ability to walk away from it. That is what some have done and it is their right to do so. I understand that, but this proposal was in the manifesto and nobody should have been taken by surprise by the Government’s support for the elected mayoral system.
I turn to the contribution of the noble Baroness, Lady Pinnock, and thank her very much for her generally supportive approach. I think that this arrangement will operate in Tees Valley a little as it does in London, where it has operated in relation to the Olympic park, for example. It is about the strategy there. In the case of Teesside, presumably it will involve things such as the siting of businesses, help for business and transport links, whereas, as the noble Baroness indicated, more detailed and less strategic matters will be decided elsewhere.
I thank the noble Lord, Lord Kennedy, in all seriousness for his generally supportive comments, particularly in relation to the North York Moors National Park Authority. We have had discussions there and think that those concerned are very content with the arrangements. I agree with the noble Lord about the need to involve all levels of government. That is certainly what happened when the steel task force was set up—I remember going to its meetings. The task force was very productive across parties and different levels of government in seeking to do the best for the Redcar steel plant and, indeed, for steel more widely, where other issues were also involved.
I take the noble Lord’s point about the consultation. It is not ideal that it should happen over the summer, although, rather counterintuitively, I think I am right in saying—I will correct it in correspondence if I am wrong—that the best-responded-to consultation was the Cambridgeshire and Peterborough one, which took place at the same time. Nevertheless, I take the point that has been made: it is not an ideal time.
I say in all seriousness to the noble Lord, Lord Beecham, that some valid points were made but very often the Opposition’s response is to be against the policy, which I can well understand, and they seem to be against the policy for elected mayors. As I said, I shall be happy to pick up in correspondence any points that I have missed.
I make it clear that the difference between us is that, if there is to be a mayoral system, it should have the support of the local electorate. That is the only difference between us.
I am relieved that it is the only difference, but it is a difference as to how that is expressed. We believe that it is expressed through the support of elected members of the combined authorities. The noble Lord does not agree. I think I am right in saying that certainly a majority of these authorities would be those with a Labour majority. If these authorities did not want that, they would have every right to say so and not to be part of the system.
I regret having to say this but the noble Lord seems to overlook the fact that when eight referendums were held several years ago, they were held on the instructions of the Government. The local councils were not invited to say whether they wanted an elected mayor and to have some sort of consultation, as with the process here. They were instructed to have a referendum. That principle was adopted before. Now it has been abandoned because most of those referendums, from the Government’s perspective, went the wrong way. It is not the noble Lord’s fault because he was not in the Government at the time. The noble Lord, Lord Young, might have to accept some of the responsibility, collectively. But this is a different case.
This is indeed a different case because they were single authorities. These are combined authorities and the expression of the democratic view is given by combined authorities. It is a policy difference. The noble Lord does not like that policy, but it is the Government’s policy.
(7 years, 9 months ago)
Lords ChamberMy Lords, as my noble friend will be aware, we discussed business rates yesterday and we are looking at the position of businesses that have had steep increases. Many hotels around the country have not had steep increases and, indeed, some will have experienced a fall in business rates. In answer to the general point, we also need to be aware that many consumers benefit from this. This is very popular, as is evidenced by the fact that it throws up some concerns. We have to consider the matter in a balanced way.
What steps does the Inland Revenue take to collect tax from the owners of properties that are let out on this basis, including capital gains tax, where a property is disposed of after such use?
(7 years, 9 months ago)
Lords ChamberMy Lords, I join other noble Lords in thanking the Minister and, indeed, in congratulating him on these substantive changes, which are ultimately, I suppose, a concession to the powerful arguments advanced, in particular by the noble and learned Lord, Lord Judge, and by the noble Lord, Lord Pannick, and other Members across the House.
It would have been good to see a similar approach from Ministers when we discussed the Housing and Planning Bill at great length last year. It is not a personal criticism of them; the Minister at that time, the noble Baroness, was not allowed to move in the direction in which Ministers on this Bill have been able to move, which I very much welcome.
For clarification, may I assume that my Amendments 71 and 75 are effectively covered by the welcome amendments that the Government have brought forward? That is right, and that is a repetition in the case of the previous amendments. However, I am not entirely clear about Amendment 67 in my name, which requires the Secretary of State to consult the Welsh Ministers before making regulations under Section 38. That proposal was dismissed on the previous occasion, although it had been a matter of strong concern to the Delegated Powers and Regulatory Reform Committee, to which the Government’s official response was extremely negative. I do not know whether the Minister can offer any assurance that, whether or not is contained in the amendment, the Government will consult Welsh Ministers. There was rather a general statement that this happens automatically. The purpose of including it in the Bill was to make sure that more than just custom and practice would apply in this case. It would therefore be helpful if the Minister indicated whether the government amendments cover my amendment or, in the event that they do not, whether he will again confirm explicitly that there will be consultation with Welsh Ministers before making regulations under Section 38. It would be preferable to include that in the Bill but, at the very least, a ministerial assurance would carry some weight. In those circumstances, if that were the position, I would withdraw my amendment.
My Lords, perhaps I may respond, particularly to the points raised by the noble Lord, Lord Beecham, in relation to Wales. I will pick them up at the end of this part of the review of other noble Lords’ amendments. I once again thank those who have participated in the debate, including my noble friend Lady Cumberlege, who set out a horrifying “Yes Minister” position. I am sure that one or two officials in our department will be listening but it is not regarded there as a training manual—although it possibly is the case in other departments. However, I give fair warning to anybody who thinks it is that it is not. The point was well made.
I am grateful for the welcome given by the noble Lord, Lord Pannick, to the position exhibited in the government amendments, as well as by the noble Lords, Lord Beecham and Lord Shipley. It was certainly the subject of my fruitful discussion with the noble and learned Lord, Lord Judge, who was instrumental in putting a strong case.
I confirm to the noble Lord, Lord Shipley, that the wording is the usual wording. I hope he is reassured by that.
(7 years, 10 months ago)
Lords ChamberWe do not want the county council network deciding on arbitration.
My Lords, I am still recovering from the shock of the support of the noble Lord, Lord Lansley, for anything I have said in this Chamber, particularly on this occasion. However, I am grateful for his support.
I am not sure where the Minister is leading us on situations where county councils are involved or invited to become involved, because it is not clear what happens if they decline.
My Lords, it is very clear. The option is available at the moment for the Secretary of State to take direct control. That is the only other alternative to getting a more local solution. That is why this has been included.
That is an option of what might be called undemocratic centralism, which is not to be relished.
The Minister made a correction regarding education, which I said was not included in the national policy framework. He is right to say that it is found in paragraph 72. As it describes providing healthy communities, I assumed that it was to do with health matters but clearly it extends beyond them. However, I still believe that the noble Lord, Lord Lansley, and I were right in suggesting that these matters should be referred to in the local plan. I cannot see any difficult in doing that. I regret that the Minister does not seem to be persuaded of the validity of that argument. However, in the circumstances, I beg leave to withdraw the amendment.
(7 years, 10 months ago)
Grand CommitteeMy Lords, I am grateful to my noble friend. I want to make just one point raised by my honourable friend Roberta Blackman-Woods when the matter was discussed in the Delegated Legislation Committee yesterday. She referred to the remark of the Minister in the Commons that the statutory instrument would amend primary legislation. As she pointed out, during the Bill’s passage there was a promise that a lot more detail on how the procedure would operate in practice would be brought forward in secondary legislation. This is not, by any means, the most substantive set of provisions in relation to what the 2016 Act brought into being—or, at least, forecast would be brought into being. Yesterday she asked whether and when the Minister would expect more information on how permission in principle will operate in practice.
We now have a housing White Paper. Does that mean that the secondary legislation under the previous Act will be held up until there is legislation following the housing White Paper? Are these two things connected, or will the Government proceed with the regulations implementing the provisions in last year’s Act? It all seems somewhat confused. This is a result of the very laborious process that many across the House warned last year was unsatisfactory: that we were being asked to pass legislation without seeing or being consulted on any draft regulations. I hope, therefore, that the Minister can indicate whether this specific issue—how permission in practice is going to work—will be the subject of regulations under the existing legislation, and when we might expect to see them.
My Lords, I thank noble Lords who have participated in the debate on these regulations and I will try to address the points they made in the order in which they were raised.
First, on the point made by the noble Lord, Lord Shipley, the definition of “housing-led development” is that the main purpose of the development is housing: that is central. I have much sympathy with the second issue raised by the noble Lord. As officials in my department know, I fight against acronyms and abbreviations every day, because they confuse me—and, I suspect, a lot of other people—so I will go away to reflect on that and look at our website to see how we make this more accessible for people than it is now or is generally the case. I have some sympathy with that point.
Turning to the contribution from the noble Lord, Lord Jones, I thank him, as always, for his courtesy. His point, I think, related to Regulation 5 and the hazardous substances authority. What we are doing here is tightening the restrictions. I know from how this operates in Wales, which I think is essentially the same as in England, that currently if planning permission is granted for a site, the hazardous substances authority, in designating how it can be used—for the storage of oil or whatever—has to consider whether there is planning permission in the vicinity. I am not sure of the precise definition of “in the vicinity”, but I will write to the noble Lord about that, as I suspect that there is a statutory definition of it. The authority has to take account of that and that restricts it, for very understandable reasons. This regulation extends that to permission in principle, in addition to the existing planning permission.
I therefore thank the noble Lord for his considerate and, if I may say so, balanced response—which brings me to the noble Lord, Lord Kennedy, who I thank for his qualified welcome and excellent impression of Eeyore during the first couple of minutes of his introduction. I know the noble Lord, and suspect that some of that was tongue in cheek. I will, however, address some of the points he raised about the regulations, starting with Regulation 2. This regulation is rooted in the community; a local decision is being made. This does not in any way run counter to the localism agenda. The choice about where to grant permission in principle is a local one. The local planning authority would make the decision in accordance with its own local plan and in line with the National Planning Policy Framework. That is a rigorous process, and I do not see anything unlocal, as it were, that runs against localism in that.
The noble Lord asked about Regulation 3, which amends the 1990 Act, and what it ensures. It ensures that in addition to current planning applications permissions, which are put on the register, permission in principle is put on the register as well. This extends transparency. Without this, it would not go on the register. I am sure the noble Lord welcomes that provision, possibly in a rather muted way.
Regulation 4 amends the Planning (Hazardous Substances) Act. I think it was the noble Lord who asked about “vicinity”, and I will ensure that that is covered in a letter to noble Lords who have participated in the debate, as I am not quite sure of the definition. I think there is a fairly tight statutory definition.
The noble Lord then raised an interesting point on Regulation 5, which amends the Commons Act 2006. This is not a new procedure. There are trigger events at the moment—I think they operated under the last Labour Government as well—that, for understandable reasons which I would certainly support, put a halt to registering something as a commons when planning permission has been given for it. I do not think that that is unreasonable, as you have given planning permission. If the planning permission lapses or is withdrawn, the land is available once again for commons registration. That seems to me to be entirely sensible. It is a pause, and the same applies here. This extends the process to permission in principle—dare I say, mutatis mutandis? That operates on both sides, that one. The noble Lord, Lord Beecham, raised points on this issue and I will have to write to him on those. As he said, the issue was raised in the Commons, and he makes a very fair point about making clear what we are going to do in this area. I will write to him on that issue and copy noble Lords in. I thank noble Lords who have in general given a welcome to these regulations.
(7 years, 10 months ago)
Grand CommitteeMy Lords, in moving Amendment 129A which stands in my name, I wish to speak also to the proposition that Clause 38 should stand part of the Bill. Both these provisions stem again from the report of the Delegated Powers and Regulatory Reform Committee. My amendment refers specifically to a requirement for the Secretary of State to consult Welsh Assembly Ministers—the noble Lord might be included for this purpose—before making regulations under Clause 38, or Section 38 as it will be when the Bill is enacted. The committee refers to the wording of Clause 38, which confers power on the Secretary of State to make such provision as he,
“considers appropriate in consequence of any provision”,
in the Bill. That is a very wide-ranging power. It includes, as the committee points out, Acts of Parliament of course, but also measures or Acts of the National Assembly of Wales. A justification of a kind is provided in the accompanying memorandum, which the committee quotes as concluding that,
“it is considered prudent for the Bill to contain a power to deal with these in secondary legislation”.
But as the committee points out,
“the Bill makes no provision for any procedure in the Assembly when the power is used to amend primary or secondary legislation enacted by the Assembly or Welsh Ministers … there is not even a duty to consult Welsh Ministers when amending Welsh legislation”.
That is an extraordinary position to have got into. The committee goes on to point out:
“Clause 2 of the Wales Bill provides that the UK Parliament will not normally legislate with regard to devolved matters without the consent of the Assembly”.
However, that appears to be feasible under this Bill as it presently stands. As the committee notes:
“The Constitution Committee have raised similar concerns”,
and it therefore considers that the power should be amended to impose,
“an obligation to consult Welsh Ministers”.
That is what my Amendment 129A does.
There is a proposal to remove the whole of Clause 38—
With respect to the noble Lord, Lord Beecham, that is in a different group.
I beg your pardon—it is grouped with this on the paper I have here. I will not make that point now but will deal with it when we get to that group. I beg to move Amendment 129A.
My Lords, I speak in support of the noble Lord, Lord Beecham, on Amendment 129A. I also speak, as a member of the Delegated Powers and Regulatory Reform Committee, to express our surprise that there was no provision even for consultation, with the Welsh Assembly, when proposed changes to an Act or secondary legislation are made. As I understand it, if it is an Act, there would normally be a legislative consent Motion; if it is secondary legislation, a consent Motion. That was the original provision, and I assume it is still the same. The noble Lord, Lord Bourne, fortunately, is an expert in this field.
I can only assume that this is an accidental omission, as I cannot see any policy in it. It seems to me ludicrous that a Secretary of State could, with a stroke of the pen, without any consent in Wales and without any consultation, simply amend the Act. I shall speak further on the clause stand part debate in a moment.
My Lords, the noble Lord knows as well as I do the difference between convention and provision in statute. If everything that had been discussed in Committee on the Bill will put in statute, it would be a much longer and more complex piece of legislation. This is about finding the appropriate place to deal with it. As I said, I am happy to share the correspondence and discuss it further, but I do not think it should appear in the Bill.
I obviously cannot proceed to a vote on the amendment, but the Minister seems to ignore the explicit statement of the Delegated Powers Committee that,
“the power conferred by clause 38 of this Bill is inappropriate to the extent that it allows the Secretary of State to amend Assembly legislation without at least an obligation to consult Welsh Ministers”.
If that is the practice, I agree with the noble Lord, Lord Thomas, that it should be codified and expressed in the Bill. What is the problem?
My Lords, with respect, it is asking not for that but for an obligation to consult, and I have said that that is a reasonable request. It is effectively what is happening under the Wales legislation. I have said that we anticipate doing exactly the same, mutatis mutandis, under the Bill, so that, via the Presiding Officer, we are consulting.
I am sorry, I have made the position clear. I am not sure what point the noble Lord is seeking to make. I am happy to discuss this further. I invite the noble Lord, Lord Beecham, to withdraw the amendment on that basis, but I do not think I can go further than that at the moment.
My Lords, there is a certain irony in a Henry VIII clause applying to Wales, given that the Tudor monarchy was based on Welsh lineage. I am also reminded of the lines of TS Eliot in The Hollow Men:
“This is the way the world ends
Not with a bang but a whimper”.
The Bill is ending in the reverse order. We have had a generally mild and constructive discussion for the past four days in Committee, but we end with something of a bang, because if the Government stick to their position, what is being perpetrated in the clause will lead to significant disagreement.
It is particularly important that the Government should listen to advice from the noble and learned Lord, Lord Judge. Others of us have our own views—we perhaps have a political approach, even those of us who are lawyers of a senior vintage, if I may put it that way. To hear the noble and learned Lord’s critique must surely give the Government pause for thought. It is simply unacceptable to insist on a procedure that leaves so much power in the hands of the Government effectively to ignore the obligations which ought to apply in relation to the Welsh Assembly, in this case, but in general to the operation of secondary legislation. In the few years that I have been here, that has time and again been shown to be defective as a mechanism for sustaining proper parliamentary consideration at the appropriate time of important measures with significant implications for various aspects of public policy.
I hope that the Minister will take this back and respond constructively, or secure permission to do so, to the views of this Committee and those of the Delegated Powers and Regulatory Reform Committee and, it appears—for I had not noticed its report—to take the views of the Constitution Committee into account. Obviously, he cannot give us any firm commitments tonight but I hope that, after consulting his colleagues, he will be able to satisfy the House by indicating that. Otherwise, it will undoubtedly have to go to Report and, if necessary, a vote at Report. I hope that we can avoid that because, on the whole, the Bill has proceeded in a fairly consensual way. Most of us have endeavoured to work with the grain of the Government’s policy. It would be a shame if that were in contrast with a rigid decision to stick with very unsatisfactory drafting right at the end of the Bill.
My Lords, first, I thank the noble Lord, Lord Beecham, very much for his constructive approach and say that it is certainly not my intention not to engage on this between Committee and Report. I think that I indicated that on the previous amendment, which he so eloquently moved. I am very happy to engage with noble Lords.
I would like to say one or two things in response to the debate, and I thank the noble and learned Lord, Lord Judge, who has been totally consistent on this issue and obviously speaks from great experience. Contrary to what my noble friend Lord True thought there is a history to this, not just from going back as far as Henry VIII. Successive Governments have indulged in this. I appreciate that that does not make it right, but I have done a little research with my team. The Housing and Regeneration Act 2008, the Local Democracy, Economic Development and Construction Act 2009 and the Greater London Authority Act 1999, just in this area, have powers wider than those in the Bill. My noble friend Lady Cumberlege referred to how important the Localism Act is; I quite agree but there are wider powers in that Act, which was passed under the coalition Government. I appreciate that that does not make it right, but I want to establish the point that a certain degree of consistency would be welcome on these issues.
That said, I am very happy to engage positively in looking at how we move forward on this matter. I very much echo what the noble Lord, Lord Beecham, said about the way that the Committee has proceeded in a consensual way for the most part. We have not always agreed on issues but we have certainly disagreed agreeably as we have gone through the Bill. I am certainly happy to engage with noble Lords between now and Report in looking at this matter.
We have to keep this in perspective. However, if noble Lords can provide examples of where this provision has been misused in relation to any of that legislation, which, as I say, goes back a considerable way, or examples of where any Government have used it improperly, that would strengthen the case for looking at it further. This measure also does not give the Secretary of State the power that has been suggested; it is subject to an affirmative resolution, which means that it has to be presented to both Houses with a full explanation and carried by both Houses. That said, I understand the points that have been made during the debate. I thank those who have participated: the noble Lord, Lord Thomas of Gresford, my noble friend Lord True and the noble Lords, Lord Stunell and Lord Shipley, as well as my noble friend Lady Cumberlege and the noble and learned Lord, Lord Judge, who put their names to this measure. I also thank the noble Lord, Lord Beecham. Given the assurance I have just provided, I ask noble Lords not to press this measure.
(7 years, 10 months ago)
Lords ChamberMy noble friend makes a valid point on the point I just made, and that is exactly what we are seeking to do. However, across the board we are going for a mixture of tenure. It is important that it is properly regulated; most landlords are perfectly honourable, obey the rules and are quite fair. We want mixed tenure and we are putting fresh emphasis on leaseholds, so that people realise what they are getting, rather than finding, when they thought they had purchased their own house, that they have a long lease with unreasonable terms.
My Lords, I refer to my local government interests. I have not read the White Paper in detail but I have certainly looked through it, and I can see no reference to two matters which I have raised on more than one occasion in your Lordships’ House. The first relates to the rent increase imposed on local authorities of 1%, which will cost, as I have mentioned before, £590 million, and which would otherwise have been invested in housing stock in Newcastle, either in existing or new properties. That will translate into billions of pounds nationally, yet it is not mentioned in the report. The other issue is to do with private tenancies. Is there any intention to promote and facilitate more selective licensing schemes to deal with landlords who are simply failing their tenants, not looking after properties, and all too often exploiting their tenants?
My Lords, the noble Lord is right that the issue of rent increases on local authorities is not covered by the White Paper. On the position of landlords who act unreasonably, he will be aware that we are bringing in, under previous legislation, the register of rogue landlords, which is due to happen later this year—perhaps he was referring to that point. That is mentioned in the White Paper and it is already scheduled to happen. However, in addition we are, as I have indicated, looking at where landlords are acting unreasonably and holding a consultation on that issue within the White Paper.
(7 years, 10 months ago)
Grand CommitteeMy Lords, I entirely sympathise with the objectives of the noble Baroness. However, I found the amendments as drafted not workable. Subsection (3) of the new clause proposed by Amendment 49 calls for a liability for a “significant additional charge” but it does not give any method of calculating that or saying how it might be achieved. On Report, an amendment inviting the Government to create such a structure subject to secondary legislation that in this case would probably be acceptable might be a way forward. In terms of subsection (4), I should have thought that if there is a retrospective planning application, it would have to be made public and subject to consultation in the ordinary ways. This subsection may be unnecessary. If subsection (3) were changed to convey a power to regulate for such a retrospective permission, that would be a way forward. Perhaps the Minister already has that in mind. The objective is right but we have yet to find quite the right wording.
My Lords, I thank my noble friend Lady Gardner of Parkes, who speaks with great authority on these areas and here with personal experience. I also thank the noble Lord, Lord Beecham, for his contribution. How we deal with unauthorised development is an important issue that concerns many people. The Government are clear that unauthorised development is unacceptable and unfair to the vast majority of people who abide by the rules. However, the retrospective planning application process is there primarily to give those who have made a genuine mistake the opportunity to rectify the situation. There are, of course, such people. It also gives local planning authorities the flexibility to invite a retrospective application where they consider that it is the appropriate course of action.
It is important to note that retrospective planning applications must be determined in exactly the same way as any other application, that is, in accordance with the development plan unless material considerations indicate otherwise. The noble Lord, Lord Beecham is therefore right in relation to subsection (4) of the new clause proposed by Amendment 49. That for which it provides would be the case anyway.
There is no guarantee that planning permission will be granted just because the development already exists. The noble Baroness cited the haystack example and there are many more in which houses have been built that occasionally people find quite acceptable, but which because they did not have planning permission and because of what planning policy indicated, have had to be demolished. Therefore, those who undertake unauthorised development put their development, their investment and perhaps their professional reputation at risk. The sale of properties built or adapted without the necessary permissions may also present considerable difficulties.
Local planning authorities can impose planning conditions on the retrospective grant of planning permission to mitigate the impact of the development. Where unauthorised development proves to be unacceptable, local planning authorities have at their disposal a wide range of enforcement powers with strong penalties for non-compliance. I note that where an enforcement notice is served, as does happen on occasion, and the person appeals on the ground that planning permission ought to be granted, they are deemed to have made an application for planning permission and must pay a fee. That fee is twice the fee that would have been payable in respect of a planning application to the relevant authority seeking permission for the matters stated in the enforcement notice as constituting a breach of planning control. I appreciate that that is only where an enforcement notice is served, but in that situation there is already a double charge. This recognises the additional work involved for the planning department in dealing with both an appeal and an application.
The effect of my noble friend’s amendment would be to make retrospective planning applications compulsory for all breaches of planning control under the Town and Country Planning Act 1990. This would be difficult to enforce and could lead to unnecessary delays where a local planning authority is clear that such an application would be refused and enforcement action taken. Clearly it would be not be helpful to delay effective enforcement action by local planning authorities where it is evident that the unauthorised development is totally unacceptable. That could well be the case in some situations.
My noble friend’s amendment would also introduce a penalty fee in addition to charges in respect of the costs over and above the double charge I have referred to which is incurred by the local planning authority in carrying out its functions connected with a retrospective planning application. This would unfairly penalise those who have made a genuine error and discourage the submission of such an application for proper consideration by the local planning authority. It is a matter which I know previous Governments have considered and to some extent grappled with, but in the interests of fairness have not decided to take forward. I appreciate that this is an important issue and I thank my noble friend for airing it and giving the Government some time to consider it, but for the reasons I have outlined, I would ask her respectfully to withdraw the amendment on this occasion.
My Lords, we on this side support the amendment. It is particularly welcome that there is a proper reference to obtaining affirmative approval for any regulations that are required. It is important to address the issue of land that is difficult to develop. My noble friend has just reminded me of the very successful redevelopment at Greenwich, which was a pretty bleak landscape. It required significant investment but it has paid off very well. We certainly need to encourage development there. It does not necessarily have to be private building development for sale. Local authorities and social housing can also be very involved in the process. Indeed, we want to see mixed communities of that kind, but this is not inconsistent with the amendments.
We need to facilitate development here, partly, as has been said, to avoid putting undue pressure on green space—whether it is green belt or not—but also because if they are not developed these sites bring down the quality of life in the surrounding community, of whatever nature that might be. So there is a triple benefit: first, for those moving into the accommodation; secondly, for the surrounding community; and, thirdly, because you are not building on areas that ought to be left as open space for the enjoyment of the community as a whole. We are very supportive of the amendment.
My Lords, I thank noble Lords who have participated in this debate on Amendments 49A and 49B, particularly the noble Baronesses, Lady Bakewell and Lady Pinnock. The amendments cover two important areas.
On the new clause inserted by Amendment 49A, I agree with the noble Baroness that there should be transparency around land assets held by public bodies. Public bodies must be accountable for the assets they hold, and where land assets are no longer required to support the functions of the body, they should be released so that they can be put to good use, including the provision of much-needed new homes. I can reassure noble Lords that the proposed new clause is not required. A great deal of work is already under way to ensure that this transparency exists, and it may help the Committee if I briefly outline the measures that are either in place or being put in place.
First, information on government land assets is already made available through the Cabinet Office electronic property information mapping service, e-PIMS—that trips off the tongue. This feeds the Government Property Finder website, where anyone can search to obtain a list of government land assets locally, regionally and nationally. Where land is made surplus for development, the e-PIMS system also makes this clear.
Secondly, for land owned by local authorities, the Local Government Transparency Code 2015 requires local authorities subject to that code to publish, on an annual basis, details of all land and building assets, including undeveloped land. In 2016 we consulted on updating the transparency code. We proposed that in addition to the existing data on land and property assets published by local authorities, they should also publish, on e-PIMS, the extent of the land in hectares for each piece of land; whether that land is surplus to requirements; whether there are current or future plans to release the land for housing development; if there are plans to release the land for housing development, what the current planning status is; if there are plans to release the land for housing development, how many homes can be accommodated, and, for properties of 10,000 square feet or larger, the floor area of that property, the number of floors and the number of car parking spaces it has. We are carefully considering the responses we received and will be responding to the consultation in due course.
Thirdly, nearly three-quarters of local authorities in England are now part of the Cabinet Office and Local Government Association’s One Public Estate programme. This is expected to grow to 95% in 2018. The One Public Estate programme brings together public bodies across a local area seeking to unlock the value in land and property assets for better local services, efficiencies and local growth. In doing so, land that is made surplus can then be released. A condition of membership of the One Public Estate programme is that local authorities and their public sector partners must upload their land asset data to the e-PIMS system. Work is already under way to bring central and local land data together in the e-PIMS system. This will make land asset data across the public sector readily available to anyone in a single place, rather than having registers held by individual authorities. I hope that this reassures noble Lords that the Government are committed to ensuring transparency in the use of land assets and appropriate release across the public sector, and that they have a clear plan to make that happen.
Amendment 49B, in relation to brownfield land, is in the name of the noble Baroness, Lady Pinnock, and was spoken to by my noble friend Lady Cumberlege and the noble Lord, Lord Beecham. He cited the example of Greenwich. A development corporation is involved across the river as well—I am sure that the London Borough of Lewisham will have something to say on that, but I will move swiftly on.
I think we all agree that previously developed land, more commonly known as brownfield land, has an important role to play in delivering much-needed new homes. The Government remain committed to ensuring that 90% of suitable brownfield sites have planning permission for housing by 2020. That is our stated policy, but I appreciate that the noble Baroness is looking for more concrete action, and I will be moving on to that.
The Government already have a strong policy framework in place to encourage the reuse of brownfield land. We are also developing further policy measures in regulations, which will help unlock housing being built on suitable brownfield sites and maximise the number of dwellings built on brownfield land. It is an appropriate mechanism, as noble Lords have mentioned, in order not to have to build on the green belt, which of course we do not want to do and is not anticipated. That is why building on brownfield land is so important.
Paragraph 111 of the National Planning Policy Framework asks local authorities to encourage the reuse of brownfield land if it is not of “high environmental value”, and planning guidance reinforces the expectation that local plan policies should reflect the desirability of reusing brownfield land. Furthermore, in December 2015 our consultation on national planning policy sought views on proposals to create a presumption that brownfield land is used unless there are clear reasons why not. This consultation also set out proposals to make more efficient use of land by encouraging higher densities around commuter hubs and to encourage more starter home-led development on brownfield land. We intend to set out our response to these proposals in the imminent housing White Paper.
Our proposed changes to planning policy sit alongside other proposals to bring brownfield land back into use. The list is not exhaustive. We intend to bring regulations into force this spring requiring local planning authorities to publish and maintain brownfield registers, which was part of the Housing and Planning Act 2016. I hasten to say that I do not have personal and direct experience of the legislation, but I believe that that happened through the Act. These regulations will also enable local authorities to grant permission in principle to suitable sites on their registers. We are also committed to widening permitted development to help give new life to thousands of underused buildings, as well as accelerating the disposal of surplus public sector brownfield land for new homes.
I fully recognise that some brownfield sites have more constraints than others, and that will probably be particularly the case where land values are not so high. Greenwich had its challenges but of course the land values were greater there. Some sites may also require additional costs to bring them back into acceptable use. A number of financial measures are in place to bring such sites back into use; for example, £0.4 million has been made available to local authorities during 2016-17 to help with the costs of dealing with urgent remediation cases and, if possible, ongoing remediation projects. We have created a £3 billion home building fund to provide loans for small and medium-sized building firms, custom builders and offsite construction. Some £2 billion of that fund will be long-term funding available to developers to deliver infrastructure to support a strong future pipeline of housing supply and will help unlock between 160,000 and 200,000 homes.
We expect at least half of this £2 billion to be used to support brownfield sites, including land remediation. I am very happy if the noble Baroness wants to engage further with officials on that particular point.
Furthermore, where brownfield sites suffer from contamination, land remediation relief, offered by Her Majesty’s Revenue & Customs for remediating contaminated land, provides relief from corporation tax, comprising a deduction of 100%, plus an additional generous deduction of 50%, for qualifying expenditure incurred by companies in cleaning up land acquired from a third party in a contaminated state. That is also significant. However, we must remember that not all brownfield land is suitable for housing development, and not all our housing needs will be met by building on brownfield land alone. As I have indicated, the Government have a clear plan and vision, but I am very happy to make officials available to explain the detail should noble Lords require more information.
To conclude, the Government are already taking action to support development on brownfield land. I assure the noble Baroness, Lady Pinnock, and other noble Lords that the Government will continue to seek prioritisation of brownfield land for development. That is central to what the Government are seeking to do in relation to housing. Without giving too much away about the housing White Paper, this aim will be reflected in that. I hope noble Lords will forgive the somewhat lengthy explanations I have given in relation to these two amendments, but they are both important. I hope that, with the assurances I have given, the noble Baroness will feel able to withdraw her amendment.
My Lords, I thank the noble Lord, Lord Beecham, for moving Amendment 56, and the noble Baroness, Lady Parminter, for her contribution. I am afraid I will probably have to let the noble Lord down on this occasion. I am not convinced of the need for this.
First, as has been noted, Section 171 of the Housing and Planning Act 2016 includes a requirement for the Secretary of State to,
“carry out a review of planning legislation, government planning policy and local planning policies concerning sustainable drainage in relation to the development of land in England”.
My department had already commenced work on the review prior to this section of the Housing and Planning Act coming into force by order on 1 October last year. The objective of that review is to examine the extent to which planning policy has been successful in encouraging the take-up of such drainage systems in new developments. My officials are working closely with colleagues at the Department for Environment, Food and Rural Affairs and the Environment Agency to gather evidence to inform the review. The first stage of the review—to survey local plan policies related to sustainable drainage systems—has been completed. We are now working towards the next stage of the review—to collect evidence on how sustainable drainage systems are deployed in practice.
Stakeholder involvement is a critical element throughout the review. We have been engaging with a broad range of stakeholders through two dedicated groups set up specifically to support the review. The first is a high-level project steering group comprising members of the DCLG, Defra and the Environment Agency, the Climate Change Committee, the Adaptation Sub-Committee’s secretariat, the Association of Directors of Environment, Economy, Planning and Transport, and the Local Authority SuDS Officer Organisation. A second-tier engagement group, comprising key SUDS-related stakeholders, will function largely as a sounding board of expert advice to be drawn on as the review progresses. This comprises members from organisations including the Institution of Civil Engineers; Water UK; the Wildfowl and Wetlands Trust and the Chartered Institution of Water and Environmental Management. Membership comprises representatives from local planning authorities, professional and statutory bodies, environmental non-governmental organisations, house- builders and other agencies.
We remain committed to working constructively with the Adaptation Sub-Committee of the Committee on Climate Change—an independent, statutory body established under the Climate Change Act 2008—so that the review informs their progress update on the national adaptation plan, due in the summer of 2017. Whenever I hear the mention of sandbags I always think of the organisation which the noble Baroness, Lady Worthington, led so well. She did considerable work on climate change through that particular organisation.
In addition to this review, the National Flood Resilience Review, published in September last year, assessed the resilience of key local infrastructure, such as energy, water, transport and communications, and identified ways to protect it better. The flood resilience review includes an action plan that the water, telecoms and electricity utilities will develop and implement, with long-term plans—where not in place already—for improving permanently the resilience of service provision to significant local communities from the flooding defined by the Environment Agency’s extreme flood outlines. Both of these reviews, when considered together, address the role of planning relating to sustainable drainage and the resilience of local infrastructure in response to a flood incident.
It is in that context that a requirement for a third review is unlikely to add anything new. I am happy to discuss this further with the noble Lord, but I do think it is unnecessary and I respectfully ask him to withdraw this amendment.
I will withdraw the amendment, but I would like to ask for a little clarification. Is the review concerned with new or existing development? Drainage issues are something many of us can see in our neighbourhoods. Front gardens are concreted over for car parking purposes and other things, with adverse consequences for drainage. Is that sort of issue part of the review which the Government are conducting?
My Lords, I think the noble Lord is asking about the first of the reviews—either the one on the Housing and Planning Act 2016 or the National Flood Resilience Review. In any event, I think the former of those—in connection with sustainable drainage—will certainly encompass that. I will double check that and be in touch with the noble Lord on that point. The second of the reviews is already complete. It was published in September last year, but I will ensure that he gets a link on that particular review if it is helpful.
(7 years, 10 months ago)
Grand CommitteeMy Lords, these amendments are broadly welcome—I think. The devil will be in what the regulations say, of course, but if they are not as benevolent as the Minister is suggesting, we will have a row then. Otherwise I think they are all right.
My Lords, I am grateful to the Minister for enlightening me, if not other members of the Committee, as to the otherwise completely incomprehensible terms of Amendments 21 and 22. Not having been given a crystal ball to look into, I could not really understand what they were about, but he has partially explained them, for which I am grateful.
However, on Amendment 23, we are again in the business of secondary legislation. I do not know whether the Government have yet consulted at all on the regulations and whether there is any chance of seeing any draft regulations before Report, but it would be interesting to know whether they had embarked on a consultation with the Local Government Association, for example, about the contents of any such regulations. Again, it looks like the Government imposing a particular way of proceeding on local government, possibly without any real exchange of views about how that might best be achieved. As we know, other Committees in your Lordships’ House have expressed great concern about the increasing reliance on secondary legislation that all too often emerges without any real evidence of effective consultation about what it should contain.
I thank noble Lords for their participation in this debate. I thank the noble Lord, Lord Greaves, for his almost wholesale welcome, and I hope to avoid the punch-up—
My Lords, I thank the noble Lord, Lord Beecham, for his amendment, and other noble Lords who participated in the debate, including the noble Lords, Lord Shipley and Lord Kennedy. The amendment reflects the importance of planning at the local level to address local issues. I was particularly interested to hear from the noble Lord, Lord Shipley, about the all-party parliamentary group covering betting, the experience of Newham and the local action that it has taken on fixed-odds betting terminals in betting shops.
It may be helpful, first, to remind noble Lords of the important planning changes we made in April 2015 specifically to allow local planning authorities to consider the merits of any application for such uses, and to provide the community with an opportunity to comment. Prior to April 2015, the use classes order grouped betting shops and payday loan shops with other financial or professional services in the A2 use class. This meant that any financial or professional service could change use to a betting shop or payday loan shop without a planning application. Now they would need such an application. Additionally, under permitted development rights, new betting shops or payday loan shops could be opened in any property used as a restaurant, café, pub or other drinking establishment, or hot food takeaway. These changes could be made without local authority consideration.
Responding to concerns raised at that time about the clustering of such uses on the high street, the Government made changes to the Town and Country Planning (Use Classes) Order. We took betting shops and payday loan shops out of Class A2 and made them sui generis, or a class of their own. This change was made precisely so that a planning application would be required for any additional such shop. This would allow for local consideration of any issues that might arise due to the change to such a use in that area. Local planning authorities, therefore, already have the ability to manage any additional clustering through their local plan policies. It is not for national government to set out how many betting shops or payday loan shops there should be, and where they should be.
Where a local planning authority is concerned about the clustering of such uses, it should ensure that it has an up-to-date plan with robust policies in place. We know, as has been demonstrated, that some local authorities are already putting in place detailed policies in respect of betting shops and payday loan shops that reflect their individual local circumstances, and setting out the position in respect of the numbers and location of those shops.
The National Planning Policy Framework provides local planning authorities with the policy framework to plan for a mix of uses, promoting the viability and vitality of their town centres. Such policies should be based on sound local evidence and tested at examination. Policies contained in the local planning authority’s development plan must be taken into account when determining any application for a new betting shop or payday loan shop, unless any material considerations indicate otherwise.
Noble Lords will be pleased to know that, as he committed to do in the other place, Gavin Barwell, the Minister for Housing and Planning, met yesterday with the Minister for Sport, Tourism and Heritage, who has responsibility for gambling. They were able to discuss the issues emerging from the review of gaming machines and social responsibility measures undertaken by the Department for Culture, Media and Sport. As noble Lords would expect, there was a positive discussion to consider how we can continue to work together effectively to take forward any proposals arising from the review, which I understand is likely to report later in the spring. I have not as yet had the opportunity to have a detailed discussion with my honourable friend in the other place. If there is any additional information, once again I will include it in the write-round. There is, therefore, an agenda that will continue to have our attention, recognising the concerns that are widely expressed, and of course this goes much wider than planning.
Although we consider that local planning authorities have the tools they need, we will continue to work closely with the Department for Culture, Media and Sport. However, it is not for national government to set out in guidance how many betting shops or payday loan shops there should be in an area. The tools are already with local authorities. These are local issues that should be dealt with through local planning policies. Therefore, I ask the noble Lord to withdraw his amendment.
I am slightly disappointed with the Minister’s reply. The Government are not slow to offer guidance about a range of issues when it suits them, but on this occasion they seem to be something of a shrinking violet. If the Government are concerned about this, I do not understand why they will not take the opportunity to push for change—which is all they would be doing—by offering guidance. They would not be instructing local authorities as to how many such shops there should be; they would be offering guidance in a way that guidance is offered across a range of issues.
If the Government are taking this problem seriously—I am prepared to concede that that may well be the case—I encourage the Minister, in consultation with his colleagues, to recognise that this Bill provides a way of highlighting the issue and advising and supporting local authorities in dealing with what is a growing social problem. Otherwise, ultimately we may have to resort to primary legislation, but goodness knows when that might be. This could make a contribution at an earlier stage, and, after all, I do not think that the Government would be entering into a hugely complicated issue if they were to accept the amendment. However, in today’s circumstances, I am prepared to beg leave to withdraw it but I may wish to return to this on Report.
I did not want to say that this was not an issue—that certainly was not my intention. I wanted to say that we have engaged with the Department for Culture, Media and Sport. I await a detailed discussion with my honourable friend as to how that meeting went, because I think that there are broader issues. If there are specific planning issues where I think we can make a difference, I shall be very keen to look at those, but I think that the tools are already there for local authorities and perhaps we need to get that message across. However, it is a specific subset of a planning class. They already have the powers and we certainly do not want this to be an imposition. I am not suggesting that the noble Lord was saying that; indeed, he was saying the opposite—that it was directing them.
I shall be very happy to report back further on how the discussions went, perhaps involving the noble Lord’s ally, although I have some doubts about the security of an alliance where you cannot remember the name of your ally.
If I had an ally at all, it would be the right reverend Prelate the Bishop of Bristol.
My Lords, I apologise to the noble Lord for missing the first part of his speech moving the amendment. Like other noble Lords, I strongly sympathise with the objectives but I am not sure that the amendment as drawn is viable. The noble Duke, the Duke of Somerset, has identified one or two issues with it, notably what is meant by “area”. We are not necessarily talking about a small area or even a city. There are now unitary authorities—for example, Durham and Northumberland in my part of the world—that are geographically large counties. For them, 50 homes is neither here nor there.
The objective that the noble Lord seeks to pursue is absolutely the right one, but the noble Baroness’s amendment is a better way of dealing with matters. She is looking amazed. I am always happy to congratulate the Liberal Democrats on getting something right; it usually happens in leap years, but not always. I think she has identified a better way of approaching the matter than the noble Lord, but what is important is that the noble Lord has raised the issue, which is something that has been in people’s minds for a long time.
I hope that this is an opportunity for the Minister to indicate what, if anything, the Government are considering doing to deal with what is something of a scandal. We apparently have something like 500,000 or 600,000 permissions not acted upon, at a time of huge shortage. The Government want to increase housing numbers, and there must be ways in which developers can be persuaded to get on with it or lose their permission. That could take a variety of forms, and the noble Baroness’s suggestion may more workable than the noble Lord’s. However, the main thing is that the Government should accept there is a problem and agree to do something about it in one form or another, in a way that will help to incentivise the implementation of planning permission and effectively remove the risk of permission being outstanding for long periods with nothing happening on the ground where it is most needed. I am looking forward to a sympathetic reply from the Minister on the issue, without his necessarily committing to either of the two projects.
My Lords, I thank noble Lords who have participated in this part of the debate, and in particular the noble Baroness, Lady Pinnock, for so ably speaking to an amendment at short notice. I wish the noble Baroness, Lady Bakewell, well and I am sorry to hear about her indisposition. As the noble Lord, Lord Cameron, said at Second Reading and reiterated here today, there is one thing on which we are all agreed: the fact that we need more houses. I thank him very much for stressing that this was a probing amendment; I appreciate that point.
Before us are two amendments that take separate approaches to achieving essentially the same important objective of ensuring that once planning permission is granted, the development of the site should be taken forward as quickly as possible. That is absolutely right. Of course there may be circumstances that affect it, but I appreciate that it can be taken care of in legislation. This is what local authorities and the communities that they represent expect. I therefore thank noble Lords and the noble Baroness for putting forward the amendments in this group, which allows us to have an important discussion on the question of developers making good on their permissions.
Amendment 25, tabled by the noble Lord, Lord Cameron, would give local authorities the right to refuse to determine a planning application if a developer already had a live permission in that local authority’s area for 50 homes or more. The amendment targets an issue that the Government are determined to address: the gap between permissions granted and the number of new housing units that are completed. I agree with the noble Lord, Lord Beecham, that the amendment as drafted is not quite what is needed; to be fair the noble Lord, Lord Cameron, said so too. It is a question of degree—the number of 50, for example, and some of the definitions that would be needed.
We have already taken important steps to tackle delays in the delivery of housing development once planning permission is granted. For example, a key point of concern and delay for many developers is the time taken to comply with planning conditions that can be discharged at a later stage in development, something that this legislation of course seeks to address. Issues with infrastructure can also delay or prevent housing development going ahead. To help tackle this problem, we have already launched the £3 billion Home Building Fund and a separate £2.3 billion Housing Infrastructure Fund. The Home Building Fund will provide loans to small and medium-sized enterprise builders, custom builders and off-site construction, and will unlock large sites throughout England. The Housing Infrastructure Fund will provide investment funding to local authorities to help support the development of necessary site infrastructure, such as water, energy and internet, to deliver up to 100,000 new homes.
(7 years, 10 months ago)
Grand CommitteeWith respect to the noble Lord, I am not sure we are. The noble Lord has been around the planning block a few times and he will know that occasionally planning decisions have national significance. Not least for that reason, we need to retain the power of the Secretary of State to recover appeals in limited circumstances.
Perhaps I may raise a slightly different point. The noble Lord has given a sympathetic response to the question of resources, but looking at subsection (3) of the proposed new clause set out in Amendment 1, there is an issue which I do not think he has addressed in his reply. It relates to the case where,
“it is deemed necessary to override a neighbourhood plan”.
The amendment then calls for specific action. It says that,
“the Secretary of State must … have regard to the policies of the neighbourhood development plan”,
and,
“policies on employment opportunities … and … inform the local community of the number of houses and types of housing required”.
That is not an onerous request. It may be that the noble Baroness would be satisfied with an assurance that that would be the Government’s policy rather than necessarily writing it into legislation, but, with respect, the Minister should deal with those points. He may consider that a letter would do. One way or another, it is rather a different point from some of those that have already been aired. The Government could be clear about it at a pretty early stage.
My Lords, I thank all noble Lords who have participated in the debate on these amendments. I turn first to Amendment 12 tabled in the names of the noble Lords, Lord Kennedy and Lord Beecham. I understand the desire to ensure that adequate funding is available for local planning authorities.
I hope that I can reassure the noble Lord, Lord Beecham, that the Government’s rigorous new burdens doctrine ensures that local planning authorities receive the relevant resources to meet their statutory obligations under the neighbourhood planning process. Since 2012, more than £13 million has been paid out by the department to enable local planning authorities to meet their neighbourhood planning responsibilities. Some 104 different local planning authorities have submitted claims for the current financial year, and under the current arrangements where applicable, these authorities could have claimed £5,000 for each of the first five neighbourhood areas and the first five neighbourhood forums that they designate. For those authorities where a referendum date was set, they could also claim a further £20,000 to cover the costs of an examination for each referendum.
Evidence compiled by my department in August 2015 found that the current funding arrangements adequately cover the neighbourhood planning costs for the majority of local planning authorities. I appreciate that that is almost 18 months ago but I would be happy to share this evidence with noble Lords and I will ensure that it is sent on to those who have participated in the debate. We continue to review the level of funding available to local planning authorities and I can confirm that funding will continue to be available for the next financial year. Further details will be announced shortly, ahead of the next financial year.
I now turn to Amendment 26 tabled by my noble friend Lady Cumberlege. I share her desire to support neighbourhood planning, and that is why we currently allocate a proportion of community infrastructure levy receipts to those areas with an adopted neighbourhood plan, as she correctly acknowledged. It is a local choice, as the noble Lord, Lord Greaves, pointed out, for areas to introduce the levy based on economic viability and infrastructure need, and of course that will vary from area to area. Take-up has increased by 144% since April 2015. The current number of authorities which have adopted the community infrastructure levy is 132, and a further 86 have taken substantive steps towards it, which totals 64% of local authorities. However, I emphasise that this is a local choice. There are clear benefits in many cases and it may be that we need to look at publicising those more widely, but of course it is not for everyone.
It is also important that local areas have a choice over how the money raised by the levy is spent. The 25% neighbourhood share already allocated for communities with neighbourhood plans provides a real opportunity for those areas to have a say over how the levy is spent in their area. Communities can also influence how the levy is used across their local authority through participating in the development of the local plan and the charging schedules which set out the local authority’s infrastructure priorities.
I thank the noble Baroness, Lady Scott, for her contribution more widely in relation to the community infrastructure levy and I am happy to agree to the meeting she has suggested in order to understand and consider some of the detailed concerns. That would be beneficial to me as well.
I turn now to the issue of how best to continue to incentivise communities, and I understand the wishes of my noble friend Lady Cumberlege in this area. The Prime Minister has made clear that this is a particular priority for the Government. An independent review of the community infrastructure levy has recently reported to my department. The review group considered a wide range of issues including the take-up of the levy and the use of the neighbourhood share. We are currently reviewing its recommendations and once again I will provide further information on exactly where we stand on that.
With the reassurance that the Government are already considering the recommendations and the need perhaps to publicise the benefits of the community infrastructure levy more widely by giving evidence of how communities can benefit from the development of their area, and continuing to review the level of funding available to local planning authorities—the White Paper will have something to say on that as well—I would ask the noble Lord, Lord Beecham, to withdraw his amendment.
My Lords, I am grateful to the Minister for his constructive response. I was rather taken with his notion that the Government have a rigorous policy towards meeting new burdens. I would have thought “rigor mortis” might be a more appropriate description of their performance in that area but he is clearly well intentioned and we hope to see some evidence of that as the legislation goes forward.
Significantly, the figures he quoted on the community infrastructure levy were quite alarming in many ways. From what he said, authorities are not necessarily taking full advantage of what is currently available. Has the Minister considered talking to the Local Government Association about that? This matter should be taken forward in that way. I will certainly ensure that the points he made today are heard. I hope that process can be tackled. It is for the noble Baroness to comment more specifically on that subject since she raised it but there seems to be an issue here. One way or another, the system does not seem to be working adequately, yet apparently the goodwill is there on the government side to ensure it does. Perhaps after the event we could look at ways to promote the use of what should be a helpful instrument for both local authorities and the communities they represent.
My Lords, I think we now know why the figure of 40% appears in the amendment.
In all seriousness, clearly we would all want to see higher turnouts, but regrettably much of our national life turns on low turnouts. In May 2016 the overall turnout in English local elections was 33.8%—the noble Lord, Lord Kennedy, bucked the trend. The average turnout for neighbourhood planning referendums is 32%. The principles of neighbourhood plan and neighbourhood development order referendums are consistent with all referendums and elections in our country. People are given the right to vote but are not obliged to do so. With this in mind, we cannot support the 40% threshold. The Electoral Commission’s data show that the overall turnout in English local elections since 2007 has exceeded 40% in only three years.
As the Minister for Housing and Planning, Gavin Barwell, highlighted in the other place when a similar amendment was tabled in Committee, of the approximately 240 neighbourhood planning referendums that had been held at that point, around 170 had had a turnout of less than 40%. The amendment would drive a coach and horses through the legislation and could jeopardise the whole neighbourhood planning process and the hard work of so many people and communities to produce neighbourhood plans, which the Government support. With this clarification, I hope the noble Lord will withdraw his amendment.
My Lords, it is interesting to be identified by the Liberal Democrats as having a low polling achievement, when at the general election, was it 8% or 9% that the party of the noble Lord, Lord Shipley, managed to achieve? However, to my mind the issue was not so much about a particular figure as about trying to ensure that there is significant involvement of local people in making a decision.
I did not know the statistics that the Minister referred to and I am grateful to him for answering my question about that. Those figures suggest that there is in many places a reasonably high demand—30% or so, whatever it might be, is a good response to something such as this. But the object ought to be to encourage as much as possible a turnout on these decisions. I am not wedded to the 40% figure. Perhaps a different approach might be to provide financial and other support to promote referendums, without necessarily imposing a limit, but to work with local authorities— again, perhaps with the LGA—to develop a scheme to maximise the involvement of local people in a system which is supposed to engage them in evolving policy which will affect their communities. Perhaps it could be looked at afresh from that perspective without identifying a particular figure, which I accept is very much an arbitrary one. But we are all concerned to see public engagement increasing as much as possible. There may be ways to do that.
In the circumstances, of course I beg leave to withdraw the amendment, and I hope that the turnout in the next elections in Newcastle will be somewhat higher.
(7 years, 10 months ago)
Lords ChamberI apologise to the House—I beg leave to ask the Question standing in my name on the Order Paper.
My Lords, I thank the noble Lord for the brief insight into the supplementary that he is about to ask, although unfortunately it was perhaps a little too brief. The inference in the Question on the Order Paper is absolutely right. The Private Member’s Bill introduced by my honourable friend Bob Blackman in the other place is of great importance. In addition, the Government are determined to help the most vulnerable in society and we are investing over £550 million up to 2020 to tackle homelessness and rough sleeping.
My Lords, as I was saying before I was properly corrected, rough sleeping has doubled since 2010, and the use of temporary accommodation by local councils has increased by 40%. The Government’s support for the Homelessness Reduction Bill is welcome, but their £61 million funding over three years leaves a gap of £79 million according to the Local Government Association. Is not the reality that the causes of homelessness are not being tackled? When will the Government take action to facilitate the building of affordable housing to rent and to tackle the problems caused by an unregulated private rented sector in which high rents and a lack of security of tenure have led to the present crisis?
My Lords, the question of homelessness and rough sleeping is a complex one. The noble Lord is right that the number of rough sleepers has gone up in the past six years—that is absolutely true—but the number of homeless people has halved since 2003, and more than halved since its peak. As I said, during this Parliament we have committed £550 million to tackling rough sleeping and homelessness over the next four years.
(7 years, 11 months ago)
Lords ChamberMy Lords, no Question Time is complete without a question on allotments. I know my noble friend feels very strongly about this. Unfortunately, I am blindsided on the particular impact of this issue on allotments, but I will ensure that she has a detailed response and I shall copy it to the Library.
My Lords, will the Government review the contracts with organisations such as G4S relating to the housing of asylum seekers and refugees? Under the Labour Government, those contracts required more than simply housing; they required an element of support for the tenants of those organisations. That changed under the coalition Government, and that is now imposing considerable pressures on local authorities and communities because there is not that visible support which formerly existed under previous contracts.
My Lords, the noble Lord raises an important issue in relation to asylum seekers and housing and services for them. I have experienced this in going around the country and visiting particular communities. I will write to the noble Lord, if I may, on the particular point about G4S, and again I will ensure that that is copied to the Library.
(7 years, 11 months ago)
Lords ChamberMy Lords, first, I pay tribute to the work that the noble Baroness does on this matter. With her background in Shelter, she certainly knows what she is talking about. It is important that we have detailed consultation. I am sure that she will be pleased to hear that officials were in Scotland yesterday to learn lessons from there. I have sympathy with a wide-ranging ban on fees, although we have to be careful to ensure that we get it right through the consultation. For example, if somebody loses their key, it is legitimate that they should pay the letting agent for getting a new one. But I agree with the general thrust of what she says.
My Lords, will the Minister look at some other issues affecting the private rented sector: soaring rents, a rising tide of evictions, and a great lack of security because tenancies can be terminated legally after a very short period? Is that not a matter that the Government should address?
(7 years, 11 months ago)
Lords ChamberMy Lords, as I have indicated, most businesses will see a fall in their business rates. Those subject to increases will find that of course they will be phased in over time, to take just one area which my noble friend touched upon. That will pay for those seeing a reduction, which will also be phased in over time, as is required by law under the Local Government Finance Act 1988.
My Lords, given that local government will be increasingly dependent on business rates, instead of being funded through rate revenue support grant, what steps will the Government take to mitigate the effect of the differences of yield in business rates between authorities with high-yielding properties—for example, in London and elsewhere—as opposed to those with low rates in the north-east, for example, or in other parts of the country?
My Lords, the noble Lord is quite right that there needs to be a mechanism to correct that. He is probably aware that we have introduced a Local Government Finance Bill in the other place, where no doubt such matters will be discussed at greater length.
(8 years ago)
Lords ChamberMy Lords, the draft order which we are considering, if approved and made, will provide Greater Manchester with new, devolved powers on: planning, land acquisition and housing; transport; education and skills; and cultural events and entertainment. It also provides for constitutional and funding arrangements.
The Government have, of course, already made significant progress in delivering their manifesto commitment to implement the historic devolution deal with Greater Manchester. Since the first devolution deal with Greater Manchester was agreed in November 2014 we have passed the Cities and Local Government Devolution Act 2016, which provides new powers for the Secretary of State, by order, to devolve to a combined authority a Secretary of State function and confer on a combined authority any function of a public authority. The 2016 Act also enables there to be strengthened accountability and governance for combined authorities, through enhanced overview and scrutiny arrangements and through new powers to establish, by order, the position of elected mayor.
In March 2015 we legislated to enable Greater Manchester to appoint an interim mayor, who is helping to provide additional leadership capacity and prepare for the further devolution of powers. Noble Lords will recall that in March this year we passed legislation to establish the position of elected mayor for Greater Manchester. The mayor will be elected in May 2017 and will also take on the role of the police and crime commissioner, with the separate elected position of PCC being abolished.
In the order we are considering today, we are for the first time conferring significant new powers on Greater Manchester. Some of these new functions are to be undertaken by the mayor individually and others will be undertaken jointly by the members of the combined authority. This is the first time that we are using the powers Parliament gave us in the Cities and Local Government Devolution Act 2016 to devolve Secretary of State and other public authority functions, and it will not be the last such order. More draft orders are already being developed to confer powers on Greater Manchester for planning, transport, policing and other issues. Implementation of the four devolution agreements made with Greater Manchester is truly under way.
For Greater Manchester, these agreements are a natural continuation of the devolution journey. Councils in Greater Manchester have been working closely together for decades, and through the combined authority established in 2011, Greater Manchester authorities have been working together formally on the interconnected issues of transport, economic development and regeneration. It was with Greater Manchester that the Government made the first devolution agreement in November 2014. The four deals now agreed between the Government and Greater Manchester mean that it will receive: a devolved transport budget and transport powers to help provide a more modern, better-connected network; new planning and housing powers, with a £300 million housing investment fund to provide up to 15,000 new homes over 10 years; new functions over skills and education, funding, incentives and support to get up to 50,000 people back into work; and an infrastructure fund of £30 million a year for 30 years.
Noble Lords will want to know that the statutory origin of the draft order before us today is in the governance review and scheme prepared by Greater Manchester in accordance with the requirement in the Local Democracy, Economic Development and Construction Act 2009. Greater Manchester published this scheme in March this year and, as provided for by the 2009 Act, the combined authority consulted on proposals in the scheme.
The combined authority ran the consultation from March 2016 to May 2016, in conjunction with the 10 local authorities. The consultation was primarily conducted digitally, including promotion through social media. In addition, of course, respondents were able to provide responses on paper, and posters and consultation leaflets were available in prime locations across Greater Manchester. As statute also requires, the combined authority provided to the Secretary of State in June a summary of the responses to the consultation.
Before laying this draft order before Parliament, the Secretary of State has considered the statutory requirements in the 2009 Act. The Secretary of State considers that conferring these functions on the Greater Manchester Combined Authority would be likely to lead to an improvement in the exercise of the statutory functions, and, in considering it appropriate to confer local authority powers on the combined authority and to make constitutional changes, the Secretary of State has had regard to the impact on local government and communities, as he is required to do. Also as required by statute, the 10 constituent councils and the combined authority have consented to the making of this order. As required by the 2016 Act, we have, in parallel with this order, laid a report before Parliament which sets out the details of the public authority powers we are conferring on Greater Manchester through this order. Noble Lords may recall that the requirement for this report was one of the additions that this House made to the 2016 Act during its passage.
This draft order now gives effect to many of the proposals in Greater Manchester’s March scheme. If approved and made, it will place a duty on the mayor to prepare a Greater Manchester spatial development strategy, enabling an integrated approach to spatial planning in the same way as in London. Councils will continue to prepare local plans and will remain responsible for local planning decisions. It will confer land acquisition, disposal and housing powers, including a compulsory purchase power for the mayor—the same powers as those held by the Homes and Communities Agency and councils. No powers are being taken away from councils. These powers will enable Greater Manchester to take a strategic approach to driving development and regeneration and stimulating economic growth, support effective use of the £300 million devolved budget and deliver up to 15,000 new homes.
The order will build on Greater Manchester’s current transport function, recognising that efficient transport is fundamental to securing economic, social and environmental objectives. The order provides powers on road safety promotion, road improvement and maintenance and for the mayor to pay grants to bus operators ahead of bus franchising as envisaged in the Bus Services Bill. It will confer new powers to reshape and restructure skills provision and support Greater Manchester to support young people to participate in education and training and to tackle its most important labour market challenge, which is youth unemployment. It will promote cultural events and entertainment and provide for constitutional and funding arrangements.
In conclusion, the Government are making great progress in implementing devolution to Greater Manchester. The draft order we are considering today is a further significant milestone that will contribute to greater prosperity in Greater Manchester and will open the door to a more balanced economy and economic success across Greater Manchester, the northern powerhouse and the country. I commend this draft order to the House.
My Lords, the Minister is right to say that the Government are devolving significant new powers to Greater Manchester and perhaps to some other authorities as the process rolls forward. However, what they are not doing is accompanying the devolution of powers with anything like sufficient additional resources. The 10 local authorities in Greater Manchester will receive £30 million a year for 30 years for infrastructure projects. That is £900 million over 30 years. At the moment, these councils have suffered a loss of £1.7 billion a year in respect of their budgets. That is likely to rise to £2 billion a year across the Greater Manchester area by 2020. Far from meeting the needs of these authorities, £900 million over 30 years is really a flea bite in comparison with what those councils are having to contend with in terms of providing services.
(8 years ago)
Lords ChamberMy Lords, these regulations provide the mechanism to introduce the transitional relief scheme for the business rates revaluation that takes effect in April 2017. This will help almost 600,000 businesses with £3.6 billion of relief over the next five years.
Business rates are a property tax where the amount paid depends upon the rateable value of the property. That rateable value broadly represents the annual rental value and is assessed independently of Ministers by the Valuation Office Agency. To maintain fairness in the system, those rateable values are updated for changes in the property market at regular revaluations. The next revaluation takes effect from 1 April 2017.
We estimate that more than seven out of 10 ratepayers will see their rates bill either fall or stay the same at the 2017 revaluation, and eight out of nine regions will see bills fall overall. However, for those facing increases we are putting in place a transitional relief scheme, which the regulations we are discussing today implement. They will be used by local government to establish whether ratepayers should receive transitional relief limiting the annual increase to their bills. They will also be used to establish whether ratepayers should contribute to the cost of that relief by capping the annual reduction in their bill due to the revaluation.
By necessity, the regulations are complex. They deal with the various cases on how to calculate the bill where a property changes through a split, merger, extension or renovation of a property. My department produced a detailed Explanatory Memorandum to accompany the regulations which explains how each provision works. I do not propose to cover all these rules, but the main principles are important and worth explaining.
The transitional relief scheme we adopted provides the same level of relief for small and medium businesses as was provided at the previous revaluation in 2010. In particular, no small property will see more than a 5% increase next year before inflation due to the revaluation. This benefits 500,000 small businesses. Overall, the transitional relief scheme is worth £3.6 billion over the five years of the scheme. Some of the biggest increases are being faced by large businesses in London, so the scheme targets over £1 billion of support to London alone.
We are required by law to ensure that the transitional relief scheme is self-financing. To satisfy this legal requirement, we have to meet the cost of the relief from other ratepayers. The scheme we have adopted targets that funding on those ratepayers who benefit the most from the revaluation by capping annual reductions in bills. This is the same approach as has been adopted since 1990. It means that those benefiting the most from the revaluation contribute to the cost of the transitional relief, while still seeing their bills fall.
The scheme has been developed by my department using actual data on the revaluation provided by the Valuation Office Agency. We consulted on our preferred scheme in September and received support from, among others, the Federation of Small Businesses, the Association of Convenience Stores and the British Beer & Pub Association. The regulations have been shared and discussed in draft with local authorities and their software providers. They are very similar to previous transitional relief schemes and the transitional relief will be applied automatically to rate bills from 1 April 2017.
Finally, I assure the House that the revaluation and the transitional relief scheme will not affect local authority incomes. As many will know, since 2013 the Government have allowed local authorities to retain 50% of the business rates they collect, and by the end of this Parliament we will increase that to 100%. When we introduced the 50% rates retention scheme, we signalled that following a revaluation we would make adjustments to the rates retention scheme to ensure that, as far as is practicable, the business rates kept by local authorities were unaffected by the revaluation. This commitment will ensure that the growth incentive created by the rates retention scheme and the delivery of public services will not be weakened by any losses of income from the 2017 revaluation or the operation of the transitional relief scheme. Last week, my department published the draft local government finance settlement, which included the adjustments necessary to deliver on this commitment. I commend the regulations to the House.
My Lords, it is no doubt timely to review the valuation of properties for the purposes of business rates. My recollection is that it is now 25 years since the valuation for council tax purposes was applied. Consequently, we still have the same number of bands and the same financial layout that was established all that time ago. If it is timely to revalue properties for the purposes of business rates, why is it not timely to review the basis of council tax and change the valuations there—and, indeed, possibly the number of bands?
(8 years ago)
Lords ChamberMy Lords, the noble Baroness is right that there is discussion on attendance allowance being devolved, although no conclusion has been reached on that. We are currently considering responses on that. I do not think we have had a response from Watford in general terms on the reforms we are suggesting.
My Lords, will the Government, in the course of changing the new system, allow local authorities to vary the business rate, or will the level of business rates still be determined at national level and merely the receipts be localised? Further, what steps will the Government take to redress the imbalances that will arise from some areas having significantly higher potential yield from business rates than others?
My Lords, as I indicated, we are consulting on this and we will discuss it with local government as the reforms come forward. On the general point on redistribution, that has to be an element of this. The noble Lord is quite right that some local authorities will be in receipt of far more in business rates than others. We will need a corrective mechanism to deal with that.
(8 years ago)
Lords ChamberMy Lords, homelessness often goes hand in hand with food poverty. Do the Government have any estimate of the number of people who, this Christmas, will be dependent on food banks? I declare an interest as I represent a ward in Newcastle that has the busiest food bank in the country.
My Lords, I will have to write to the noble Lord with the specifics on the food bank figures. I recognise the importance of food banks throughout the country and pay tribute to what volunteers do, both in giving to food banks and in ensuring that food gets to the people who need it.
(8 years ago)
Lords ChamberMy Lords, the Government are qualifying themselves for nomination for the Nobel prize for complacency in how they are addressing the problems facing local authorities. Since 2010, when Salome, in the perhaps unlikely form of Eric Pickles, offered up local government as a prize to central government, which led to the largest share of cuts in any area of government expenditure going to local government, councils have struggled manfully to maintain services. I refer to my interest as a member of Newcastle City Council and a vice-president of the LGA. In Newcastle, we are heading, by 2020, for a £291 million a year cut from what was being provided in 2010. That is a remarkably high figure. It amounts to about £1,000 per head of the population per year. How are councils supposed to maintain services?
The Government’s complacency is reflected in the remarkable assertion that added certainty will provide “increased stability”—the stability of the graveyard for councils—and that,
“By 2020, we will see local councillors deciding how to fund local services using local money”.
But of course, there are inadequate amounts of public money. This will apparently be, “true localism in action”. It is more likely to be inaction in local government, because councils will not have the capacity to deliver the services that their people need.
The Government go on in this Statement, unilluminating as it is, to talk about how the,
“extra flexibility to raise funding … will add just £1 a month to the average council tax bill”.
Councils have not been able to increase council taxes beyond a very limited amount over recent years, so if it is being permitted now to raise council tax by this modest amount, why has that not been available beyond the 2% limit imposed on local authorities in previous years?
The Statement is worse than that in a way because it goes on to say that councils will be able,
“to support people who need care in their area”,
and show,
“how it improves adult social care services”.
It is not a question of improving adult social care services; it is a question of trying to maintain adult social care services against rising costs and, increasingly, rising demands for which no provision is being made.
It is remarkable that the new homes bonus is relied on to transfer one part of local government money to another area. That rather eliminates the whole point, one would have thought, of the new homes bonus, which was supposed to encourage housebuilding, which the Government may have noticed is desperately in need of increasing.
Local councils and, more importantly, their residents are facing an unprecedented decline in services. It is certainly true that some people are not aware of the damage being done because they do not have intimate family knowledge of it. That is why some of the polling suggests that people regard the service as okay. Unless people happen to know members of the family denied services—not able to use a library that used to exist—or do not have children in a school that is under great pressure, they do not get the true picture. The Government are clearly colluding in an attempt to conceal the true picture of what is happening in communities up and down the country.
I have one final point to make in relation to business rates, because this will apparently be the great answer. We do not know how the business rates system will work. We do not know how it will reflect the different yields that will occur in different parts of the country and what method of redistribution will be applied. We do not know, for that matter, how the appeals system will work against the new valuations, which have been controversial in various parts of the country and which may complicate the picture significantly. This finance settlement is unsatisfactory. It is entirely the responsibility of the Government to see that there is a fair distribution directed at meeting needs, and this Statement does nothing to do that.
My Lords, I thank the noble Lord, Lord Beecham, for what was perhaps more a diatribe than a series of questions, but I will try to extract some points that were made in what seemed to me an excessively gloomy speech, although with the noble Lord’s characteristic lightness of touch.
First, it is worth pointing out that 97% of councils, across the political divide, have signed up to the four-year deal. The settlement that we have reached recognises that there has to be a balance of interests—of council tax payers and looking at the problems of the age, specifically the very serious problem of adult social care. The noble Lord said, incorrectly—I think I am quoting him correctly because I wrote it down—that no provision was being made for adult social care. That is patently not the case.
I think that is what the noble Lord said. I wrote it down. In fairness, he then went on to cite the use of the £240 million funds, so perhaps a careful reading of what was said will indicate that one of us is wrong. However, I think he did say that no provision was being made for adult social care. We have allocated £240 million in the next financial year, from savings from the new homes bonus, which is specifically to address what I acknowledge is a serious issue. That, together with the precept and the ability to reprofile the increase in the precept of 3% and 3% then 0%, recognises £900 million additional spending in the next two years. That is a significant amount for what is, admittedly, a serious issue.
I will home in on an area that the noble Lord quite fairly raised in relation to the business rate retention. As noble Lords are probably aware, there will be legislation on this in the new year. It will be introduced into the Commons first and will come subsequently to your Lordships’ House, so there will be more detail about how that will operate well ahead of it coming to us.
(8 years ago)
Lords Chamber
To ask Her Majesty’s Government, further to the announcement in the Autumn Statement that they will invest £1.4 billion to deliver 40,000 affordable homes, how many affordable houses to rent they expect local authorities to build by 2020.
My Lords, our expanded affordable homes programme, with a total capital budget of £7.1 billion between 2016 and 2021, including the additional investment of £1.4 billion announced last week, will now fund a wider range of affordable housing, including affordable rent, rent to buy and shared ownership. Local authorities will be able to bid into this.
My Lords, I declare my interest as a Newcastle city councillor and an honorary vice-president of the Local Government Association. Could the Minister please explain the arithmetic underlying the Government’s claim that the £1.4 billion announced in the Statement will build 40,000 affordable homes, given that this appears to represent a cost of only £35,000 a home? Will he confirm the estimate of the chair of the Local Government Association, his noble friend Lord Porter, that the enforced reduction of council rents by 1% yearly until 2020 will cost councils £2.6 billion, which could have built, according to its estimate, 19,000 homes, while housing associations will suffer a loss of income of £2.7 billion, with a similar impact on their capacity to build affordable homes?
My Lords, as the Mayor of London, Sadiq Khan, said, this is,
“the largest sum of money ever secured by City Hall to deliver affordable housing”,
and no doubt he would have been more effusive if it had not been for political considerations. This is the largest affordable housing programme for 40 years, and social housing can bid into it too, as the noble Lord appreciates. This is all part of the programme of ensuring that we have 400,000 affordable homes in this Parliament.
(8 years, 1 month ago)
Lords ChamberMy Lords, what resulted in the change was considering how people, particularly in London, would be penalised on the levels we are looking at. The Government should not be criticised for examining the situation in front of them and reconsidering a policy, which is what we have done. As I say, the provision will remain on a voluntary basis because there are people on very high incomes who should pay more for the housing they occupy.
My Lords, while the Government are in the mood to reconsider things, will they look again at the requirement under the Act for councils to let tenancies for periods of between two to five years only? I understand that councils will have the discretion to decide whether to apply the pay-to-stay provision. Why cannot that same discretion be applied to the length of tenure for which they are enabled to house their tenants?
My Lords, it is important that we get the balance right on housing by ensuring that we have people in social housing for an appropriate time, in order to ensure that as many people as possible are housed. Of course the Government take account of all these things. As the noble Lord will know, we are looking at restricting local authority lifetime tenancies, and 20 local authorities across the country are looking at how we proceed with this. But he will appreciate that the aim of the Government, and the commitment of the Prime Minister, is to build as many houses as possible because this is the basic problem facing the country. Some of those houses will be on an owner-occupied basis and some will be for affordable rent.
(8 years, 2 months ago)
Lords ChamberMy Lords, the noble Baroness is right to address concern that this is interactive with the health area. This is something we touched on in a debate earlier this week. The consultation that will open shortly in relation to the cap and the way that we ensure that the additional costs are taken care of will be transparent and collaborative. It will be a very open process, so I ask noble Lords to ensure that they, as well as outside organisations, participate in it so that we get this right and are able to protect the sector and the variations that exist between different local authorities.
My Lords, what discussions have taken place between the noble Lord’s department and the Department of Health about the impact on social care budgets that is now being felt throughout the country? Clearly, the work of social services and adult care is closely related to the conditions under which the residents of sheltered housing live.
My Lords, the noble Lord is right to say that there is interaction with the Department of Health. We discuss this with it, as we do with the Department for Work and Pensions. There is interaction across a lot of areas and, as we found earlier in the week when we debated this, this of course has great impact on the health and well-being of tenants, as well as in education and many other areas. We have to take this in the round and have a holistic approach.
(8 years, 2 months ago)
Lords ChamberMy Lords, the noble Lord has given distinguished service to the north-east and I agree with him about the importance of the devolution deal for the north-east. As I understand it, the blockage is not about the mayor but elsewhere, but we remain very much of the view that to get the most powers you need the best accountability, and that is delivered by directly elected mayors.
My Lords, regrettable though the failure to reach a devolution deal covering the seven members of the North East Combined Authority is, do the Government realise the significance of its member councils’ financial concerns? The offer of an investment of £30 million a year for 30 years between seven councils—£900 million in total—must be seen in the context of annual budget cuts amounting to some £1.5 billion a year, coupled with huge uncertainty about the working of the business rates system on which councils will have to rely as revenue support grant ends. Is not the best way to revive the devolution concept for the Government to recognise that devolving responsibility without the power conferred by adequate funding undermines their proclaimed objectives?
My Lords, other areas—Greater Manchester, Liverpool City Region, Tees Valley—have come to an agreement and are pursuing the need for an elected mayor. It is regrettable that the north-east is not doing so, but we do not impose these things—they are to be bottom-up—but I appeal to the north-east to come together so that we can proceed with this deal, perhaps in 2018.
(8 years, 3 months ago)
Lords ChamberMy Lords, the regulations set a latest-by referendum date in the final stages of the neighbourhood planning process. I beg to move that they be approved and come into force on 1 October.
Neighbourhood planning gives communities direct power to develop a shared vision for their neighbourhood and to shape the development and growth of their local area. For the first time, community groups can produce plans that have real statutory weight in the planning system. So far more than 1,900 communities across England, representing nearly 10 million people, have started the process of neighbourhood planning. More than 200 plans have passed a public referendum and are now in force. These plans are now the starting point for planning decisions.
We are fully committed to strengthening neighbourhood planning. The introduction of the neighbourhood planning Bill shortly will further empower local communities to get the homes and infrastructure that local communities need delivered as quickly and effectively as possible. But we need to ensure that the neighbourhood planning process is as simple and expeditious as possible so that communities see the benefits of their plan without unnecessary delays. Neighbourhood planning can take, on average, two to three years. Slow decision-making by local planning authorities can be particularly frustrating for communities and can discourage them from taking up neighbourhood planning. That is why we introduced a number of measures in the Housing and Planning Act 2016 that could speed up neighbourhood planning by an average of 17 weeks.
Complementing the new powers in the Housing and Planning Act is a power in Schedule 4B to the Town and Country Planning Act 1990 for the Secretary of State to make regulations prescribing a date by which the referendum must be held or before which it cannot be held. Holding a referendum is a key step required to bring a neighbourhood plan or order into force once it has been through public consultation stages and an independent examination. Where the neighbourhood area has been designated as a business area, there is an additional referendum for the businesses in the area. On average, referendums have been held within eight weeks of a local planning authority’s decision to submit a neighbourhood plan or order. However, while some authorities have called a referendum within six weeks, others have set a referendum date more than 17 weeks after their decision to do so, and some have been far later even than that. This is why we consider that it would be beneficial for new regulations to set out a clear expectation regarding the time period for holding a referendum.
In February, we consulted on proposals for these regulations as part of a wider package of measures. A summary of the responses to the consultation has been prepared and is available on the department’s website, along with the Government’s response. The proposal received considerable support, and a small number of technical amendments were made as a result of the consultation to ensure that the regulations could be implemented effectively. The details of the regulations have been agreed with the Electoral Commission and the Association of Electoral Administrators.
The regulations, if approved, will be an important safeguard to ensure that a minority of local authorities do not cause delays to the neighbourhood planning process. The regulations would require local planning authorities to hold a referendum on a neighbourhood plan within 56 working days of their decision that a referendum should be held, or 84 working days in certain more complex cases. The cases where the 84-working-day limit would apply are where there is also a business referendum; where the neighbourhood planning area falls within more than one local planning authority area; or where the local planning authority is not the principal authority responsible for arranging the referendum, as with mayoral development corporations or national park authorities.
There are three exceptions to the 56 or 84-working-day time limit. First, they are where a neighbourhood planning referendum can take place on the same day as, or be taken together with, another poll due to be held within three months of the end of the 56 or 84-working-day period described above; where there are unresolved legal challenges to the decision to hold a referendum; or where a local planning authority and the neighbourhood group agree that the referendum need not be held by that date. Those exceptions provide necessary flexibility to allow for local circumstances to be taken into account.
Neighbourhood planning has been hugely successful in making planning more accessible to local people. It empowers significant numbers of communities to take an active role in determining the future of their areas, and it is a principle that we can all agree on. This Government are committed to speeding up and simplifying the process so that even more communities benefit. It is important that we set time limits for key local planning authority decisions in the neighbourhood planning process to speed up and simplify the system in a sensible and pragmatic way, and I believe that that is what the regulations will do. I therefore commend the draft regulations to the House.
My Lords, the proposals that the Government embody in these regulations are of course accepted. I declare my relevant local authority interests, which are referred to in the register.
There are a number of questions I would like to put to the Minister. He told us that 190 communities have started the process, that being the figure contained in the background documents which are available in the Printed Paper Office, and that 200 communities have proceeded to implement—or at least to agree—a plan under this procedure. However, that is 200 out of 1,900 in three years. Can the Minister say how many of those communities abandoned their projects or had them rejected in that time? What is the average time for concluding the process? The Minister referred to a reduction of some 17 weeks which will flow from this provision: 17 weeks compared to what as the average time so far? Moreover, the documents reveal that 89% of those who voted—presumably of these 200—voted in favour of the plan as drawn. The question is: 89% of what? What was the actual turnout relative to the potential turnout in these votes? There might well have been 89% voting in favour, but that could have been 89 people out of 100 who took the trouble to vote in a community of some thousands. It is simply not clear. I would be grateful if the noble Lord enlightened us. I do not suppose that he has the information immediately to hand, so I would be grateful if he wrote to me and placed the answers in the Library subsequently.
One of the problems for local authorities is that the planning service is under huge strain. Often, local authorities are reducing the number of planning officers because of the financial constraints on them. The Government, in paragraph 39 of their response to the consultation, indicated that they would enter into,
“updated arrangements for funding local planning authorities”.
Perhaps the noble Lord can enlighten us as to what progress has been made in that respect. As I understand from the documents, the Government do not accept that this process was a new burden, although any local authority would surely have thought it was, in the sense that it is a new responsibility which has been created, however welcome it may be. What funding is to be made available and what estimate has the department made of its impact on the number of officers who would be enabled to carry out this work, which would be in addition to the current work of planning departments, which are already considerably overstrained?
If we are looking at timescales, what are the Government doing about the hundreds of thousands of planning permissions granted for development upon which no action has been taken? We have here a measure which prescribes a very limited timescale, understandably in many ways, because in the most part we are not talking about large projects. However, what is sauce for the local government goose does not appear to be on the menu for the developer gander because long-standing planning permissions are simply lying on the table. At a time when everybody acknowledges the need for hundreds of thousands of new houses to be built, it seems extraordinary that the Government are prepared to impose a pretty rigid—I concede it is not entirely rigid—timescale for the processing of these plans, but no timescale at all on the implementation of planning permissions granted, in many cases, some years ago. Will the Government look again at the question of imposing a timescale for planning permission for significant developments to be implemented, rather than simply leaving it to the developer—who is presumably hanging on to the land in the hope that ultimately prices will rise and greater profits will accrue—when there are many, many people looking for new homes to buy or rent? The principle here, which is a fair one, is to make progress on community plans, but can we also see some progress on the carrying out of development in accordance with permissions already granted?
(8 years, 5 months ago)
Lords ChamberMy Lords, the 1 million figure is of course made up of a range of sources. Some 400,000 will be affordable houses while 200,000 will be starter homes, and it is right that there should be a mix of types of housing. That is something the Government are absolutely pledged to.
My Lords, I refer to my interests as a member of Newcastle City Council, in which the imposed reduction of 1% in council rents will lead to a reduction of £28 million by 2020, which would otherwise be invested in new housing and the existing housing stock, and of £593 million over 30 years, while £2.6 billion will be lost nationally to such investment by 2020. What assessment have the Government made of the impact on the new building of social housing, council housing and the improvement of the existing stock as a result of that decision to force rents to be reduced?
My Lords, as I have indicated, we are watching very closely what the position is regarding new build. We are committed to a range of sources, including affordable houses for rent as well as houses to buy. We should take account of the fact that, I suspect, most if not all of us own our own houses, so there is a concentration on helping people to buy their homes. However, we are not blind to the need to encourage the affordable housing for rent sector as well.
(10 years ago)
Lords ChamberI am sure that we all wish him a very happy and well earned retirement, and look forward to hearing his speech today.
I turn to the Bills before us today. Together, these Bills introduce the latest radical reform of pensions. These ground-breaking pension changes were the centrepiece of the Queen’s Speech, and are about encouraging new forms of pension saving, such as shared-risk schemes and the provision of collective benefits to give greater security in retirement, and giving people freedom and choice in how and when they access their pension savings. The time is right to make these changes to private pensions legislation. The new state pension will provide a simplified foundation for those in retirement, making it easier for people to know what pension they will receive from the state. It will provide a platform on which individuals can build their own private pension savings according to their wants and needs in retirement.
The excellent early results of automatic enrolment mean that millions more savers have joined workplace pension schemes. This Government have also taken forward other changes so that the future private pension landscape delivers high-quality, value-for-money pensions for members. For example, regulations are being brought forward so that, subject to parliamentary approval, from April 2015 there will be a charge cap in the default funds of qualifying schemes—schemes used for automatic enrolment—and new requirements for independent governance committees and trustees to report on costs and charges.
The market is therefore growing, and employers and the pension industry are already thinking about future pension provision. These Bills further encourage a flourishing private pensions market that provides greater choice for business on the pensions offered and for individuals on how they access their pension savings. Taking no further action is simply not an option. Despite government action, the Department for Work and Pensions estimates that there are 11.9 million people below state pension age who are not saving enough to provide adequately for their retirement.
I turn to the Taxation of Pensions Bill. My noble friend Lord Newby is the pilot of this legislative craft, but let me say a few words by way of introduction. The Taxation of Pensions Bill contains measures to make the tax system fairer by ensuring people have more choice about how they access their savings, to prevent this new flexibility being exploited by individuals to gain unintended tax advantages and to ensure the taxation of pension savings on death remains fair and appropriate under the new system. The Bill will mean that, from April 2015, individuals from the age of 55 will be able to access their money purchase pension savings flexibly if they wish, subject to their marginal rate of income tax, rather than the current 55% tax charge. In addition to the Government’s consultation after the Budget, we also published draft legislation for technical consultation in August.
I will talk about these changes in a little more detail, starting with measures to ensure people have more choice about how to access their savings. This Bill is about ensuring that people have greater choice at the point of retirement. The current system restricts choice at the point of retirement. Those with the smallest and largest amounts of pension savings have flexibility, but those with a moderate amount of savings have very limited options. The measures in this Bill will change that by extending this flexibility, such that it applies regardless of the size of the pension pot, thereby ending the effective compulsion to annuitise.
The Bill also introduces a new method to allow people to access their pension flexibly. The “uncrystallised funds pension lump sum”, or UFPLS—the clumsiest acronym I have ever seen in my life—is a new option. This will give individuals the flexibility to take one or more lump sums from their pension fund, with 25% of each payment tax free and 75% taxed at their marginal rate, without having to enter into draw-down or take all of their tax-free lump sum in one go. The Bill also increases choice by introducing changes to encourage innovation in the retirement income market, allowing providers scope to make annuities much more flexible products in line with consumer needs.
I am grateful to the noble Lord for giving way. Could he tell us how much and for how long the Treasury will gain from the changes in the Taxation of Pensions Bill as people draw down or take their pensions early?
The noble Lord is right if he is inferring that there is a tax saving. Estimates have been made, but of course we cannot be certain of them. I have the estimates and I will ensure that I send them to the noble Lord—I do not have them to hand —but suffice it to say that this is not the thrust of the legislation. I think we will see that it is perfect in terms of providing what pensioners want, it gives a boost to the pensions industry and it probably saves the Exchequer money, although these are only estimates. However, that is not the main intention. As I say, it is to give consumers and members, after consultation, a very fair deal.
The Bill also contains measures to ensure that the new system cannot be exploited by individuals to achieve unintended tax advantages. If the Government were to put in place no protections, an individual over the age of 55 could divert their salary each year into their pension, take it out immediately and receive 25% of it tax free, thus avoiding income tax and national insurance contributions on their employment income. This is not the intention of the reforms. However, in the context of automatic enrolment, it is also important that any solution preserves the incentive for those aged over 55 to save after accessing their pension flexibly.
As a result of extensive consultation, the Government decided that introducing a £10,000 money purchase annual allowance for those who have accessed their pension flexibly strikes the right balance. On the one hand it allows people the flexibility to withdraw or contribute to their pension as they choose from the age of 55, while on the other it ensures that individuals do not use the new flexibilities, which are intended to provide people with greater access to their retirement savings, to avoid paying tax on their current earnings. It will also avoid unnecessary complexity for both consumers and pension providers when the new system comes into places in April 2015. As stated in the Government’s response to the consultation, we will be closely monitoring behaviour under the new system and will work closely with industry to ensure that it remains fair and proportionate.
I turn now to the changes made by this Bill to the taxation of pensions at death. As set out in the original consultation document which the Government published alongside the Budget, it is likely that the 55% tax charge which currently applies to pensions on death would apply to more people under the new system. If it were retained, it could provide an incentive for individuals to remove their savings from their pension in order to avoid the 55% tax charge. Consequently, the Government have amended the Bill to ensure that taxation of pensions at death remains fair and appropriate under the new system. The changes to the Bill will allow individuals who die with pension funds remaining to pass them on to anyone they choose. These funds can be paid tax free if the individual dies before the age of 75. If the individual dies having reached the age of 75 and the funds are paid out as a pension, they will be taxed at the beneficiary’s marginal rate, or at 45% if they are paid out as a lump sum. The aim of these changes is to ensure that individuals who have made sacrifices to save over the course of their lives can pass on their pension savings without worrying about those funds bearing excessive tax charges when they die. They will also preserve the incentive for individuals to keep money in their pension without fear of their beneficiaries being hit by a 55% tax charge.
Additionally, the Chancellor announced in the Autumn Statement that these changes will extend to annuities. Death benefit payments from joint life and guaranteed-term annuities will also be tax free when the policyholder dies under the age of 75, and such death benefits will be able to be paid to any beneficiary. This will also apply when an individual uses uncrystallised or draw-down funds to buy a dependant’s annuity. These changes will be legislated for in due course, although not through this Bill. The Taxation of Pensions Bill will therefore increase choice for the 320,000 people retiring each year.
The Taxation of Pensions Bill deals with the tax changes and the Pension Schemes Bill, which I will turn to shortly, deals with changes to enable the flexibilities to work as the Government intend. There are differences in the definitions of money purchase benefit in tax legislation and in pensions legislation which we have had to address. Tax legislation provides a definition of money purchase which in essence covers all forms of accrual that result in a cash amount. The pensions legislation definition is narrower, as it focuses only on those forms of benefit in which a deficit cannot arise. This is to ensure that the correct funding and member protection regime applies. In order to ensure that the provisions of both Bills work correctly together, the Pension Schemes Bill contains a new definition of “flexible benefit” which fits within the pensions legislation context and captures the forms of benefit to which the tax flexibilities apply. We also define the term “safeguarded benefits”, which are, in the main, forms of benefit to which the flexibilities do not apply but to which other provisions do. I will explain the context in which the term is used shortly.
I turn now to the Pension Schemes Bill. This Bill will make the changes required to pension legislation as a result of the freedom and choice created by the Taxation of Pensions Bill. This will include a legislative framework for a guidance service providing individuals who benefit from the new pension flexibilities with access to free, impartial guidance so that they are clear on the range of options available to them at retirement. The Bill places a duty on the FCA to ensure that the providers it regulates make people aware of their right to guidance and signpost them to this service, and the Department for Work and Pensions will ensure that the equivalent duty is placed on pension schemes regulated by the Pensions Regulator.
It is important to note that there is a fundamental distinction between advice and guidance. Providing advice on investments, including pensions, is an activity regulated by the FCA. A financial adviser will usually make a full assessment of a consumer’s circumstances and make a specific recommendation, and may sometimes sell a product, based on what is most suitable for that person. The guidance service will not aim to replicate this. Instead, it will provide tailored information to consumers regarding the options available to them but, unlike financial advice, it will not recommend specific products or providers. The guidance is designed as a first step for consumers, to support their decision-making and to empower them to make their own choices. Having had the guidance, it is expected that many people may wish to go on to seek financial advice to help them with their decision, and the guidance will help them to access the service they need.
The Government will continue to allow members of private sector schemes offering safeguarded benefits—that is, benefits other than money purchase or cash balance benefits—the freedom to transfer to other types of scheme. However, in the vast majority of cases where a member has safeguarded benefits, it will continue to be in the best interests of the individual to remain in their scheme. Therefore, two additional safeguards will be introduced to protect individuals and schemes. First, there will be a new requirement for individuals transferring safeguarded benefits out of a scheme to take advice from a financial adviser before a transfer can be accepted. Secondly, there will be new guidance for trustees of schemes on using their existing powers to delay transfer payments and taking account of scheme funding levels when deciding transfer values.
We will also ensure that the taxpayer and Exchequer are protected. First, transfers will not, other than in very limited circumstances, be allowed from unfunded public service defined benefit schemes into schemes from which flexible benefits can be obtained. Secondly, for funded public service schemes, Ministers will have a power to reduce cash equivalent transfer values in circumstances where there is a risk to the taxpayer.
The Pension Schemes Bill also makes other changes to the transfer requirements allowing individuals to access pension savings. We will do this by extending the current transfer rights for those with flexible benefits up to and beyond their schemes’ normal retirement age, and applying statutory transfer rights at benefit category—rather than scheme—level.
We will also make three technical changes to existing pensions legislation. The first will allow pension schemes to offer the new flexibilities to their members and will ensure that these flexibilities operate as intended in relation to those with cash balance benefits. The second will allow members to take one or more lump sums from their money purchase funds after the minimum age is reached. The third will prevent the conversion or replacement of non-money purchase benefits with money purchase benefits when a scheme winds up or during a Pension Protection Fund assessment period.
As the flexibilities will come into force on 6 April next year, we are making the relevant regulatory changes that are necessary to deliver these significant reforms by that date. The Department for Work and Pensions and the Treasury are co-ordinating a structured engagement with the industry on the drafting of regulations to ensure that final decisions are informed by stakeholder views.
With these changes, the Taxation of Pensions Bill and the Pension Schemes Bill together give the individual greater choice and flexibility in how they access their pension savings. The Pension Schemes Bill also introduces legislation to enable greater risk sharing between the employer and the saver—and, indeed, third parties—and risk pooling between savers, thus encouraging greater innovation in the private pensions market.
I now turn to the measures that grant pension providers greater flexibility in the sort of pension schemes they offer. The Queen’s Speech announced a radical reshaping of pensions legislation to ensure that it remains relevant for future generations. The Pension Schemes Bill reflects, recognises and encourages innovation in response to demand. It does this by creating a clear space for shared risk or defined ambition—as they are sometimes called—pensions and enables the provision of collective benefits in the United Kingdom. Those are two quite separate concepts.
With increased participation in saving, the Government are keen to support greater innovation in the products offered to savers, based on employer and member demand. Consumer trust in the pensions industry is relatively low, and although we can protect beneficiaries against risks of high charges or poor governance, our research shows us time and again that many individuals want more stability and more certainty. They want to know something about what their savings will give them and some protection from the worst of the vagaries of the market.
Many employers have found the increasing costs of longevity—welcome though it is—and investment risk too heavy to bear in traditional final salary defined benefits schemes, but if defined contribution schemes are the only alternative, outcomes for members and savers will be less certain and more volatile than for earlier generations, making it much harder for future generations of savers to plan for later life.
Although some forms of risk sharing can already happen, the current legislation is based on a binary structure, leading to a tendency for schemes to polarise into schemes in which either the member or the employer is bearing all the risks. While both of those types of pension can be the right product for many, we do not think it is right that the only future for pensions that our legislation explicitly recognises or encourages is either where the individual member or the employer takes on the full financial risk of such long-term savings.
Therefore, the Pension Schemes Bill introduces three categories of pension scheme and enables a new type of collective benefit along with requirements to ensure that there is appropriate regulation in relation to such benefits. The scheme categories are based on the type of promise that the scheme provides to savers during the saving phase about the benefits that will be available to them at retirement. The Bill includes new definitions of defined benefits, where the member receives a full benefit and the employer takes the risk, defined contributions, where the member takes the risk, and shared risk, or defined ambition, the third category of pension scheme.
The shared risk, or defined ambition, definition describes a middle ground between the defined benefits and defined contributions definitions. It creates a distinctive space to encourage innovation in pension design that provides for more certainty for individuals than defined contributions schemes, in which there is no promise during the savings phase, by sharing risks between employers, employees and third parties.
The new scheme categories will apply to existing occupational and personal pension schemes. They do not make any additional requirements about benefit design and do not change any current legislative requirements, such as occupational scheme funding or member protections.
The definitions work at scheme level, rather than the benefit level, so the wider legislative requirements that apply to certain benefit types still apply, regardless of the scheme category. That includes, for example the new Budget flexibilities, and the collective benefit requirements, to which I shall come shortly. The definitions are formulated very specifically and, along with the regulation-making powers, they ensure that current and new scheme designs will fall into the correct categories to reflect the member experience of certainty during the savings period.
The Bill also provides for a new definition of collective benefits. These are different from shared risk schemes, although shared risk schemes may include collective benefits. The collective benefit definition enables a new form of risk pooling among scheme members that can provide greater stability in outcome for members—partly by virtue of scale. Collective pension schemes are a key part of some other countries’ pension systems—for example, the Netherlands and some of the provinces of Canada—and they are recognised internationally as being of high quality. As we aspire to develop a pension system that is rated among the world’s best—we hope the best—it is only right that the United Kingdom should also have pension schemes offering these types of benefits. We also have the advantage of providing protections at the outset which address issues that have arisen in relation to these types of schemes overseas. The regulation-making powers are key to the success of collectives, ensuring appropriate safeguards can be applied and developed in discussion with industry, employers, and members’ representatives. The Bill enables collective benefits to be part of a defined contributions scheme or a shared risk scheme. The intent is that members of schemes offering collective benefits would be able to access their collective benefits flexibly, either directly or by transferring to a money purchase scheme.
The Bill makes changes to existing legislation in order to reflect the new scheme categories and collective benefits. It also provides for additional governance protections for these new types of pensions, reflecting the new types of decisions that are being made on behalf of members. We also intend to use regulation-making powers in other legislation in respect of governance and disclosure as appropriate. We have engaged extensively with stakeholders across the pensions industry and found there is appetite for legislation that allows for greater risk sharing and risk pooling. There are employers that would welcome the greater flexibility to create pension schemes that suit the needs of their workforce. Pension providers want the flexibility to design and offer pensions that provide greater certainty and more options for sharing risk, and individuals value greater certainty than that provided by defined contributions pension schemes and the greater stability that collective benefits may provide. All these are considerable advantages.
I turn to the other changes to private pensions legislation made by the Pension Schemes Bill. These are relatively minor in terms of the main thrust of the legislation. The Bill contains two clauses from the Ministry of Justice concerning judicial pensions. One corrects the Judicial Pensions and Retirement Act 1993, regarding the funding of pensions shared on divorce, to ensure that the Act works for cases where pension sharing is activated after a person has left judicial office. The second allows a pension scheme to be established for fee-paid judges, as required by relatively recent case law. It is aimed at old and transitional cases. Pensions for fee-paid judges will in the future be governed by a new scheme under the recent public service pensions legislation.
In addition, the Bill contains a minor and technical measure on the Remploy pension scheme. The legislation will allow the Department for Work and Pensions to fund the Remploy pension scheme directly rather than via the company, should this be required in the future.
Furthermore, the Bill contains an amendment to extend a regulation-making power in the Pension Schemes Act, relating to survivors’ benefits in the case of certain gender-change cases, to Scotland. Finally, the Pension Schemes Bill contains a provision the effect of which will be to permit schemes to increase the maximum age at which a pension credit, following a pension share on divorce, must be put into payment if the highest normal pension age for benefits payable under the scheme is higher than 65.
These are very radical reforms that build on this Government’s previous changes to improve pensions in the United Kingdom. Giving people greater choice is at the heart of these reforms—greater choice for business on the pensions they offer and greater choice for individuals on how they can access their pension savings. These are important changes to allow the private pensions market to flourish too. I commend these Bills to the House. I beg to move.
My Lords, it is important to look at this in context. In opening, I say to the noble Lord, Lord McKenzie, that we have to be careful when we talk about volunteers. There are millions of volunteers in this country who do fantastic work, and we should not categorise them as “mere volunteers”. They do fantastic service for this nation. I recognise that councillors’ work is of a special nature, but we should not detract in any way from the marvellous work done by volunteers up and down all the nations of the United Kingdom.
The nature of councillors’ work is different from that of those people who have, historically, been protected by the Local Government Pension Scheme. I think we would all recognise that the first aim of the Local Government Pension Scheme should be to provide a decent, a good, pension for those who work for our local authorities. Historically, going back to the beginning of the century, councillors were not provided with a pension. It was introduced in the aftermath of 9/11, either on that day or on the next day. That is not to say that it was wrong, but it was perhaps not given the consideration that it should have had. This reverts to the historical position of recognising that councillors are somewhat different. They do—let us recognise it—fantastic service: unstinting, unsung, underappreciated and very often totally unappreciated. However, it is also worth saying—and, to be fair, the noble Lord, Lord McKenzie, said this—that it is only a small minority of councillors, I think about 16%, who are signed up to this scheme. Again, we need to get that into perspective.
I also do not recognise the comments made by the noble Baroness in relation to the cost of the mayor and so on providing for their own pensions. I do not see that there is a tax-funded consequence of that, at least not in the same terms as the scheme that applies at the moment. Perhaps I misunderstood that, but I could not see the consequence there. If I have misunderstood, perhaps that will be elucidated later and, if so, I apologise for that.
The second point that is worth making is that there will be a saving in the scheme, and we have to recognise that resources are scarce. I am not sure whether the party opposite is committed to bringing this scheme back in; I have not heard that said. It is one thing to decry this and say it is a bad thing, but I have not heard any commitment to bring it back in. Perhaps there is such a commitment and perhaps that can be clarified, because there is a saving and all parties recognise that there is a deficit that has somehow to be dealt with. Every saving, no matter how small, contributes to dealing with that deficit. It is very easy to say that we approve of measures to tackle the deficit, but the party opposite often falls into the trap of saying it approves of measures to tackle the deficit and when anything specific is brought up to save money, it is always against them. We need to do that and put this into perspective.
My last word is to say again that we are in great danger of castigating volunteers up and down this country who do terrific work without any allowances or pension arrangements. We need to get that on the record.
My Lords, I should perhaps declare an interest as vice-president of the Local Government Association and a serving councillor on Newcastle City Council, albeit one who has not been involved in any way with this provision of local authority member pensions.
I begin by extending congratulations to the noble Baroness, Lady Williams of Trafford, who as far as I am concerned is making her first appearance on the Front Bench on a DCLG matter. I may have missed her on a previous occasion, but in any case it is a pleasure to congratulate her on that, and on not having to answer this debate or accept responsibility for this particularly malign set of proposals.
These proposals were launched initially by Brandon Lewis MP, the Under-Secretary of State at the Department of Communities and Local Government, in October 2012. I think that his main claim to fame is that, on an organisation called Phoenix radio, he hosted a talk show called the “Eric and Brandon Show”, which I suppose had a fairly minimal audience in the Brentwood area, where Mr Lewis was at that time the leader of the council. Subsequently, he has of course become an MP elsewhere, while his colleague, who is now the Secretary of State, is the Member of Parliament for the same constituency. Quite whether that broadcast had the impact of the Nick Clegg broadcasts on London radio, I hesitate to think.
However, Mr Lewis must certainly be given the credit for a certain amount of ingenuity. He wrote a letter on 13 March 2014 to Conservatives MPs in England—not that there are many outside England—to explain and defend what the Government were doing. In that letter he said, as we of course understand, that,
“councillors do not receive a salary; rather, they receive allowances to compensate for their out-of-pocket expenses”.
That is an interesting formulation because the actual wording of the Government’s document about this was rather different. The wording in paragraph 1.20 of that document said:
“Councillors are volunteers, elected to their local council to represent their local community. Councillors are not paid a salary or wages, but they are entitled to allowances and expenses to cover their out-of-pocket costs of carrying out their public duties”.
Now, expenses are clearly designed to cover out-of-pocket costs but allowances are not the same thing. Mr Lewis has elided the two concepts in his letter, and quite deliberately so. In addition, he said that,
“following changes made by the Labour Government, allowances have slowly become a form of salary, a situation worsened by the state-funded pensions”,
as if the entire cost was paid by the taxpayer. Of course it is not, as it is a contributory scheme.
However, even that is not quite the full story because paragraph 1.9 of the Government’s document says:
“The provision allowing for councillors’ pensions in England is contained in Section 18(3A) of the Local Government and Housing Act 1989”—
when to the best of my recollection there was not a Labour Government in office—
“and the Local Authority (Members’ Allowances) (England) Regulations 2003 made under the powers contained in that section”.
We have one former Secretary of State present from a Conservative Government, although I do not think that the noble Lord was the Secretary of State at the time. But it was a Conservative Government who facilitated or indeed established the concept of making this scheme a possibility. Of course, Mr Lewis carefully avoids that reference but he then says:
“This blurs the distinction between council officers and councillors”.
In whose eyes, it has to be asked, is there a blurring of the distinction? Citizens can distinguish perfectly well between councillors and officers. What is the nature of this blurring that is alleged to be taking place?
I have been a councillor for what might seem an interminable time, particularly to some of my constituents, but I am not alone in having a long period of service. I anticipate that we will hear from other noble Lords today who have had very distinguished local government careers, such as the noble Lords, Lord True, Lord Shipley and Lord Tope, as well as my noble friend and the noble Baroness, Lady Jones, who have already spoken. Looking around the Chamber, it is possible that there will be others such as the noble Lord, Lord Palmer of Childs Hill, and my noble friend Lord Harris—and there is of course the noble Baroness, Lady Eaton. How could I forget her? Of the five noble Lords I anticipated would speak, between us we have served 165 years, 43 of those as leaders of our respective councils. It was not until the late 1980s that I was in receipt of a special responsibility allowance as leader of my council. I did not take the full amount until the last three years of my tenure. I was senior partner at a firm of solicitors and I felt, in the circumstances obtaining in the early 1990s, that I should claim the full £7,000 a year, which was the allowance paid by my authority at that time. We are not talking in general about very large sums.
Among my successors was the noble Lord, Lord Shipley, who, no doubt, will tell us about his own experience. My recollection is that he also would have received a modest allowance as leader of the council when he served his term. The present leader of Newcastle City Council—with a budget which, as a result of government cuts, is alas declining from the £260 million a year it had originally reached—receives an allowance of £16,500 and a basic allowance of £8,500. The specialist allowance has been frozen and the standard allowance for members in Newcastle has been cut. That is likely to be the situation in many local authorities in this country. When I was leader of the city council, I was in receipt of a combined allowance that was significantly less than was paid to my secretary. Exactly the same position will apply to all my successors, including the noble Lord, Lord Shipley, and the current leader; and it may well apply in a number of other authorities.
However, there is another matter that Mr Lewis carefully avoided mentioning in his letter to his political colleagues, which is at paragraph 1.11 of the Government’s document. It says:
“Councillors are eligible for allowances to be pensionable if the local independent remuneration panel made a recommendation to that effect”.
In other words, this is not something dreamed up and decided upon by a local authority: it has to follow a recommendation of the independent remuneration panel. Why does Mr Lewis not refer to that? The answer is perfectly obvious: it would demolish the case he is making, which effectively is that greedy local authority members are determining for themselves whether they should be part of this scheme. It is a shabby and disgraceful way to mislead his colleagues, let alone members of the public.
I recall very well that in my early years as a councillor, before I became leader, I had a very good colleague who felt he had to give up his time at the council, because it was going to affect his own pension at work. Clearly, there are many members up and down the country who feel that they cannot continue. Turnover of members is a significant factor, particularly in London. London colleagues may agree, or may not be able to confirm that. There is a particularly high turnover of people who are in employment because it is very difficult to discharge one’s duties as an elected member—at any level, but particularly at a level which carries significant responsibilities—and be in gainful employment. We do not want to see local councils composed of the unemployed, the retired or the rich. A council composed in that fashion is not an adequate way of serving the public. We want people who are actually in a job, working in the community and bringing that experience and influence to bear upon the workings of their council. If their employment or their prospects of pension provision are going to be imperilled as a result of public service, that will diminish the pool of those willing and able to serve the public.
These proposals are another example of the Government’s—or more particularly, to be fair, the Secretary of State’s—aversion to local authority members. He has a rather Malvolian response to the criticism that he has brought upon himself over the past few years by his repeated attacks on local authorities and members generally. I recall that wonderful phrase in “Twelfth Night” when Malvolio, villainously cross-gartered—I cannot see the Secretary of State as cross-gartered, while “villainous” is an adjective that might be applied to other aspects but perhaps not his gartering —says in frustration and rage as a result of his treatment:
“I’ll be revenged on the whole pack of you”.
This recommendation certainly seems to carry that sentiment into government policy, and it is deplorable.