Levelling-up and Regeneration Bill

Lord Foster of Bath Excerpts

Consideration of Commons amendments
Monday 23rd October 2023 Lords Chamber

[Baroness D'Souza (CB)]

My Lords, I too speak to Amendments 4C and 4D in the name of the noble Baroness, Lady Lister. We are essentially discussing four non-contentious words: “throughout the life course”. The Government have gone out of their way to address most of the concerns expressed about the welfare of children, for which everyone is extremely grateful. However, it is puzzling why these four words continue to be resisted. We know that health disparities begin in pregnancy, even before birth, as the noble Baroness said, and continue until advanced old age. Surely any levelling-up Bill has to acknowledge that continuous investment at every stage will result in a healthier and more productive society. The Government argue that this is implicit in the Bill, but why not make it explicit in the Bill? I honestly fail to understand this reluctance on the part of the Government and, should the noble Baroness, Lady Lister, decide to press her Motion to a vote, I will follow her into the Lobby.

[Lord Foster of Bath (LD)]

My Lords, I shall speak briefly to Motion D, which relates to rural issues, and my concern about the absence of rural issues in the Bill. Indeed, at Second Reading I made reference to this issue and pointed out the enormous disparities between urban and rural communities. I gave a range of examples from the way in which, for instance, housing costs are higher and yet wages are lower, to that the cost of delivering services such as education, health and policing is higher, yet government funding is lower. There were many other examples. These disparities have been referred to in your Lordships’ House and the other place on many occasions over very many years. Indeed, proposals were made several years ago by the noble Lord, Lord Cameron of Dillington, and were responded to by the then Secretary of State, Liz Truss, who said:

“This Government … is committed … to ensuring the interests of rural communities and businesses are accounted for within our policies and programmes”.


More recently, I had the opportunity to chair your Lordships’ special Select Committee on the Rural Economy. Again, we made a number of proposals, in response to which the Government said:

“Without doubt, these distinct characteristics”


of rural areas

“must be recognised in policy making and the government believes that rural proofing is the best”

way of doing it.

The most recent handbook on how to carry out rural-proofing—the Government’s Rural Proofing: Practical Guidance to Consider the Outcomes of Policies in Rural Areas—makes it abundantly clear that the rural-proofing process must take place before the presentation of legislation for consideration in your Lordships’ House and the other place. Yet, looking through the Bill as it was presented to us, I saw an absence of any reference to the distinctive nature of rural communities and the differences between them and urban communities. I also saw no evidence that a rural-proofing process had been done in advance of the Bill being presented to us. So, with the support of the noble Lord, Lord Carrington, I proposed a couple of amendments.

The first said that, in developing the mission statements, the Government must have regard to the specific needs of rural communities. That has been rejected time after time at various stages in the passage of the Bill. However, as we have just heard from the Minister—I am enormously grateful to him for the meeting that we had to discuss this issue—the Government have now conceded that amendment. It is now to be included within the Motion brought forward by the Minister. Again, I am enormously grateful to him.

My second amendment proposed that evidence of rural-proofing should be presented to your Lordships’ House before the Bill is able to be enacted. That has been rejected and, as we have just heard from the Minister, it is to be rejected again. In his opening remarks, the Minister said that I need not be concerned because there is clear evidence that the Government have gone through a rural-proofing process in relation to all government legislation. I will not argue with the Minister, but I gently say to him that, when independent experts have looked at this matter—for instance, the Rural Services Network looked at the most recent government report on rural-proofing—they have made it absolutely clear that, in their view, there is no evidence of rural-proofing processes having been carried out. There are a lot of mentions of some good things that the Government are doing to support rural communities but not of a specific process having been carried out. The precise conclusion of the Rural Services Network was:

“Nowhere … is anything evidenced anywhere to show if these processes were followed”.


I will take the Minister’s word for it that he has been given total assurance that this procedure was adopted for the passage of the Bill. For that reason, I will not press and have not put down an amendment to repeat what my earlier amendment said. But it would be enormously helpful if, for the sake of those of us who are still somewhat sceptical, he could provide written evidence of the procedure having been carried out.

As I have said, I am enormously grateful that—through the amendment he has brought, repeating the one I originally proposed—we now have reference in the Bill that the specific needs of rural communities will be taken into account in drawing up the mission statements. I am enormously grateful for the work he did to ensure that this happened, so I end by once again expressing my thanks to the Minister.

[Lord Shipley (LD)]

My Lords, I will make a brief comment in response to the Minister’s Motion C in relation to Amendment 3, which I moved on Report. I want to put on the record that I understand the line that the Government have taken. It is difficult to make statutory geographical disparities. What matters is the assurance that the Minister has given on that issue. It will really matter, in respect of policy formulation to address geographical disparities, for the evidence to be constantly collected to identify what those disparities are. I accept the assurances that the Minister has given and I have no intention of pursuing the matter further. I am grateful to the Minister.

Levelling-up and Regeneration Bill

Lord Foster of Bath Excerpts

Committee stage
Wednesday 3rd May 2023 Lords Chamber

[Lord Foster of Bath (LD)]

My Lords, I will be very brief. I speak only because of the words of the noble Lord, Lord Bellingham, just now. Like him, I am very keen to see, and as a Minister had some responsibility for, the improvement of high streets. The noble Lord is quite right that on a high street these changes could take place without the significant problem to local residents that he described might happen in a more residential area.

We are very supportive of the principle of Amendment 312, but I say very gently to the Minister that if, as I suspect, she is going to suggest that there is no need for this amendment, I would encourage her to remind herself of the earlier debate on the agent of change principle. That too was apparently not necessary. Frankly, it seems that one or the other will be necessary in the circumstances that the noble Lord, Lord Bellingham, described in a residential area. We need either a separate use classification or the agent of change principle to give local residents that protection.

[Baroness Scott of Bybrook (Con)]

Amendment 312, in the name of my noble friend Lord Northbrook, seeks to prevent the movement of premises being used as shops, banks, gyms, offices et cetera within (a) and (c) to (g) of class E to be used instead as cafés or restaurants in (b).

I take this opportunity to make clear to noble Lords that vibrant and diverse high streets and town centres are vital to communities, as places where local people shop, use services and spend their leisure time.

The Government introduced the commercial business and service use class in 2020 to support our high streets and town centres, enabling them to respond quickly to changes in consumer demands. This use class includes a wide range of uses commonly found on our high streets, such as shops, banks and offices, as well as services such as creches and health centres. Movement between uses within the class does not constitute development and therefore does not require planning permission. Thus, this class provides flexibility to move between such uses and allows for a mix of such uses to reflect changing retail and business models, and to avoid premises being left empty.

We believe that restaurants and cafés are an important part of our high streets and town centres. Such uses support high street vitality, attracting people to the high street to shop and spend their leisure time, and we would not want to limit them. My noble friend’s amendment seeks to restrict the flexibility of premises within the commercial, business and service use class to be used as cafés or restaurants. However, a permitted development right cannot be used in this way to limit movement within this use class. The legislative approach of this amendment is therefore flawed and we are unable to support it.

I turn next to Amendment 312F in the name of the noble Baroness, Lady Taylor of Stevenage, which seeks to require the Secretary of State to publish a review, within 12 months of the Bill achieving Royal Assent, of all permitted development rights. Permitted development rights are a national grant of planning permission that allow certain developments, including building works and changes of use, to be carried out without an application for planning permission having to be made. Permitted development rights have been a well-established part of the planning system for many years, supporting homeowners and businesses. In recent years, new permitted development rights have been used to support housing delivery. The rights are helping deliver much-needed additional new homes, including more than 94,000 homes in the seven years to March 2022.

In response to comments about the quality of some of the homes delivered, we commissioned research into the operation of the rights, published in July 2020. We subsequently legislated to ensure that all new homes delivered under permitted development must, as a minimum, meet the nationally described space standards and have access to adequate natural light in all habitable rooms. In addition, the current consultation on the infrastructure levy seeks views on the circumstances in which it may be appropriate to apply the infrastructure levy to permitted development.

We continue to keep permitted development rights under review, so this amendment is not necessary. It would also be impractical, as it would require a disproportionate review of 155 separate permitted development rights, all within the 12 months proposed. On these grounds, we will not be able to give this amendment our support.

--- Later in debate ---

When he responds to the debate, will the Minister set out whether the Government recognise the urgency of setting up an office for risk and resilience or some other mechanism to address climate change that is regularly discussed in this House? I beg to move.

[Lord Foster of Bath (LD)]

My Lords, I am happy to support the amendments that have just been moved.

I remind the Committee that in earlier debates we spent quite a lot of time on the importance of creating an environment that is clean and healthy for people to live in—the noble Lord, Lord Best, in particular encouraged us to do that—while earlier today we heard from the noble Baroness, Lady Young of Old Scone, about the vital need to protect woodland and biodiversity more widely. The Minister responded that none of this required her amendments because, he pointed out, the planning system was there and the planners could be “proactive” in using tree preservation orders and measures regarding biodiversity powers.

That is all well and good, but with one problem: the vast majority of councils responsible for taking these proactive measures are short of planners. There is a huge shortage. Where we have an amendment that relies on there being sufficient skills, resources and capabilities to deliver all these things, we already know from the research that has been done that there is a significant shortage. Noble Lords do not have to listen to me to know that; the chief planner in the Minister’s own department has said categorically that there are not enough planners in local government in England. Joanna Averley went on to say, at the end of last year, that the department did not have the funds to provide resources for there to be more planners. My question for the Minister is: what is going to be done to increase the number of planners to carry out all the work that he keeps referring to and which will come about as a result of the Bill before us?

I want to place on record a huge tribute to the RTPI for the work it is doing to try to improve skills. It has its degree-level apprenticeship scheme, as I am sure the Minister is aware, and a number of other measures, but we are in a situation where it is now said that planners are like gold dust.

The situation is compounded by a further problem. Another amendment talks about what the role of chief planning officers should be. Again, that would be well and good if there were any chief planning officers to have a role. The truth is that we now have a situation where one-quarter of councils in England do not have a head of planning reporting directly to a chief executive. There is a real shortage, which has the knock-on implication that there tends not to be a career structure to encourage people to enter at the bottom end. The shortage of planners is exacerbated by the shortage of chief planning officers.

I want to use this amendment as an opportunity gently to ask the Minister what the Government’s plans are to resolve the resource shortage, which we do not need a review of because we already know it is there. I look forward to hearing what the Minister has to say.

[Lord Lansley (Con)]

My Lords, at this late hour I do not want to speak at any great length. I declare an interest as chair of the Cambridgeshire Development Forum. In that context, we are acutely aware of the shortage of planners in local authority planning departments, despite the efforts made, not least by Cambridge City Council and South Cambridgeshire District Council in bringing together their two planning services to try to ensure efficiency in both planning and the use of resources.

There is a shortage, so we looked at working with the RTPI’s young planners group and with Anglia Ruskin University, so that some of those degree apprenticeship placements would be in Cambridge, in addition to those in Chelmsford. That might bring more of those young planners into the Cambridge area, where we hope they will stay, working in businesses and local authorities locally.

One thing we have looked at, which is possible but not easy to do, is the development community entering into, effectively, area-wide planning performance agreements with a local planning authority. Such planning performance agreements are entered into generally in relation to individual developments and can be the subject of additional charges for things such as pre-application advice. Of course, that is purely on a cost-recovery basis. Once you begin to attribute charging and costs to individual developments, even though from the planning authority’s point of view it does not influence the outcome of any of the decision-making, there is a risk that that is what people perceive to be the case.

To try to avoid the risk of any attribution of resources to results in terms of the integrity and transparency of the planning decision-making, we and the development community want to look at the ability to assist in resourcing planning for major developments in the area, and to do so in a way independent of the individual applications and the individual developer. I hope that, when Ministers think about how we might increase resources, they will recognise this as one possible arrangement.

--- Later in debate ---

[The Lord Bishop of St Edmundsbury and Ipswich]

My Lords, I will speak—briefly again, I hope—in support of Amendments 326, 327 and 334 in the name of the noble Baroness, Lady Warwick, and Amendments 344 and 350 in the name of the noble Lord, Lord Best, which have also been supported by my right reverend colleague the Bishop of Chelmsford.

The Church of England is committed—as noble Lords have just heard—to working to increase the provision of social housing, and these amendments would greatly improve the infrastructure levy to ensure that it is working to generate a good supply of truly affordable housing.

As we have heard, in its current form the infrastructure levy risks a serious reduction in the delivery of affordable housing and homes for social rent through the planning system. Despite this concerning impact, detail on how the proposed levy would work remains very thin. There are a number of fundamental issues that need to be addressed. These amendments would be a step in the right direction to doing so.

Amendment 326 introduces a mechanism for the delivery of onsite affordable housing and an in-kind levy payment, which would allow local authorities to ensure that their local housing needs are met. Amendment 327 excepts developments that contain 100% affordable housing from liability to pay the infrastructure levy, which would allow for the provision of affordable housing to go unimpeded by any diversion of funds, and also incentivise developers to invest in affordable housing plans.

Amendments 344 and 350 in the name of the noble Lord, Lord Best, would introduce critical improvements to the infrastructure levy. Tying the application of the infrastructure levy to the level of affordable housing requirement identified in the local development plan, as Amendment 344 would do, is a necessary step to ensure that the levy truly addresses local housing needs. Linked to this, Amendment 350 would ensure that at least 75% of the levy would be used to meet such local affordable housing needs as identified by local development plans. As we have heard, there are currently 4.2 million people in need of social housing in England. It is crucial that the infrastructure levy and the accompanying changes to the planning system improve the delivery of new affordable housing.

[Lord Foster of Bath (LD)]

My Lords, I begin by congratulating the noble Baroness, Lady Taylor, on her tour de force in going through all these amendments. I have no doubt that the Minister will attempt to do exactly the same at some future point as she goes through all our deliberations, and I have no intention of attempting to match either of them. I wish merely to say how important Amendment 322 in the name of the noble Baroness, Lady Armstrong, and Amendment 323 in the names of the noble Baroness, Lady Hayman, and my noble friend Lord Shipley are, and how supportive we are of them. They seek to define “affordable housing” for the purposes of the infrastructure levy as social rent. We are also very supportive of the amendment so ably spoken to by the noble Baroness, Lady Warwick—as is illustrated by the fact that my noble friend Lady Thornhill has added her name to it—and the whole issue of affordable housing, which we have touched on so many times. It is great that she has spoken to her amendment, and we are fully supportive of it.

I raise two amendments solely to hear the Minister’s response to them, because that is what we are interested in hearing. On behalf of the noble Lord, Lord Carrington, and with his permission, I will speak to Amendment 330, which, in effect, proposes the removal of agricultural buildings from the infrastructure levy. The infrastructure levy now being proposed is not exactly but in part a replacement for the community infrastructure levy. I am sure that many noble Lords will be aware that the application of the community infrastructure levy to agricultural property was somewhat hit and miss. Frankly, nobody knew whether they were in or out; some councils did, some did not, and so on. The Minister is nodding in agreement. The problem is that we do not have the proposed secondary legislation, so we have no idea quite how agricultural buildings will apply under the proposed infrastructure levy. Of course, we recognise that many of them—such as livestock buildings, grain storages, slurry tanks and farm reservoirs—are quite large but have very little structure; however, they may be very heavily hit. Given that your Lordships have recently debated the importance of farmers and the difficult times they are going through at present, it may be a good idea to put on the record a clear determination that such properties be excluded from the infrastructure levy. That is what the noble Lord, Lord Carrington, is proposing.

The only other amendment I want to raise is Amendment 356 in the names of my noble friends Lord Teverson and Lady Bakewell. It suggests that it should be possible to retain within the new system Section 106 agreements in certain circumstances. When looking at the whole area of biodiversity-type measures, you recognise that the great advantage of Section 106 agreements is that, unlike the infrastructure levy proposals, they are directly tied to the actual land where the development takes place, rather than being a payment for improvements that may happen somewhere in the neighbourhood. The second advantage is that they are not a one-off payment, as the infrastructure levy is proposed to be; they can be payments made over a long period.

Therefore, if you are seeking to develop some sort of wildflower arrangement, some meadowland or a biodiversity scheme of one sort or another, it is recognised that those will take a very long time to develop and they are on a particular site. The benefit of this amendment is that the Section 106 agreement can be kept because it is tied directly to the specific land and can be funded over a long period to ensure that the development is successful. On behalf of my noble friend Lord Teverson, I make the case for Amendment 356.

Levelling-up and Regeneration Bill

Lord Foster of Bath Excerpts

Committee stage
Thursday 20th April 2023 Lords Chamber

Amendment 268 in the name of the noble Lord, Lord Carrington, ably spoken to by the noble Baroness, Lady Bakewell of Hardington Mandeville, seeks to bring economic development within rural areas into the scope of permission in principle in the Town and Country Planning (Permission in Principle) Order 2017. While I have huge respect for the knowledge of the noble Lord, the noble Baroness and others and know how important economic development is in rural areas, I do not think this is the way to do it. However, I will take it back and consider with officials how we can strengthen economic development in those rural areas.

[Lord Foster of Bath (LD)]

I apologise for intervening at this late hour. On that point, since the Minister has promised she is going to write to people and has just said very clearly, on the record, that she shares the importance of economic development in rural areas, and given that I asked at Second Reading for evidence that the levelling up Bill had gone through the rural-proofing process, would she be kind enough to include in that letter details of how that process was carried out in relation to this Bill, because frankly, many of us think there is very little evidence of that?

[Baroness Scott of Bybrook (Con)]

I will certainly reflect on that question and see what we can do.

I thank the noble Lord, Lord Carrington, for his amendments, and I appreciate his concerns on a matter, which is close to his heart and to the heart of the noble Baroness opposite. While I support the intentions to lend further support to our rural economy, unfortunately I cannot accept this amendment, as it will not have the intended effect, and we believe it is unnecessary.

The permission in principle consent route is an alternative way of obtaining planning permission for certain housing-led development. When a proposed development is under consideration, it separates the matter of principle away from technical details. Our national planning policy framework strongly supports policies and decisions to promote sustainable development in rural areas. In particular, it states that to support a prosperous rural economy, local plans, neighbourhood plans and decisions should enable the development and diversification of agriculture and other land-based rural businesses.

Additionally, as set out in Section 58A of the Town and Country Planning Act, any economic development coming forward through permission in principle would have to be predominantly for housing development. Provision already exists to allow local planning authorities to grant permission in principle for economic development related to residential schemes within rural areas. Section 5A of the Town and Country Planning (Permission in Principle) Order 2017 also enables local planning authorities to grant permission in principle to any non-housing development if it is associated with residential development, and where the scale of the development and the use to which it may be put is specified.

I am aware that permission in principle is often used to test the principle of housing development within rural areas, rather than applicants going through the conventional planning application route, and these are assessed with our National Planning Policy in mind. It is a valuable tool in this respect, and I hope this provides reassurances to the noble Lord and the noble Baroness, and accordingly that she will withdraw his amendment on his behalf.

I turn now to Amendment 282, tabled by the noble Baroness, Lady Taylor of Stevenage, and put forward by the noble Baroness, Lady Hayman of Ullock, on the speeding up of the planning system. There are around 400,000 planning applications every year. The Government have heard many representations that the planning application process is too slow and inaccessible for some users—notably those without the expertise, such as everyday people. It therefore requires improvement and modernisation. The powers being brought forward in Clause 116 enable the Government to apply a more consistent, streamlined and digitally enabled approach to the way in which the applications are made, making it easier for everyday people to submit a planning application. This will also make planning data more accessible. My department is already working with local authorities to tackle the very issue that this amendment raises, working collaboratively with the local authorities through the Open Digital Planning project, which aims to increase efficiencies in the development management process through creating modern development management software. Local authorities using the software that we are trialling have seen an estimated 35% time saving in the pre-validation process, when an application is first submitted, and post-validation, when the process is to reach a decision.

Before enacting these powers, we will fully engage with the local planning authorities and the sector as a whole; given that one of the core aims of this power is to streamline the process, we will of course consider the impact on speed of decision-making. While I support the intention of this amendment, the Government are unable to support its inclusion and hope that the noble Baroness will not press it.

Lastly, government Amendments 260A and 260B provide for consequential amendments to Clause 102 to make consistent the legislation with respect to an application being made directly to the Secretary of State, in relation to new Section 73B and Section 73 of the Town and Country Planning Act 1990.

Levelling-up and Regeneration Bill

Lord Foster of Bath Excerpts

Committee stage
Wednesday 22nd March 2023 Lords Chamber

Moved by

[Lord Foster of Bath]

180: Clause 78, page 88, line 9, at end insert—
“(1A) Regulations under this Chapter may require relevant planning authorities to process data in accordance with approved data standards relating to the number and nature of—(a) second homes, and(b) holiday let propertiesin the planning authority area.”Member's explanatory statement
This amendment would enable planning data regulations to provide for the collection of data to national standards about second homes and holiday lets.

[Lord Foster of Bath (LD)]

My Lords, the amendments in this group cover the issues of data and data sharing for, as well as the registration of, and safety standards in, properties available for short-term let. It is not my intention to speak on registration, with the exception of two brief comments. I will happily leave that to the noble Lord, Lord Moylan, with his great expertise as chairman of the Built Environment Committee.

My two comments are simply these. I note that the consultation on registration ended in September last year, and to date we still have not had any response from the Government. That clearly would have been very helpful to have had in time for our deliberations today. I also comment that, although I entirely accept that registering and licensing can be used interchangeably, I certainly would prefer to have licensing and a licensing regime rather than a registration regime.

I turn to my Amendments 180 and 445A, which address data issues. I believe very firmly that Clause 78 is very important and, indeed, welcome, because it requires local authorities to use data standards when they process information in connection with a planning function that are designed to ensure that planning data is comparable across local authorities and formatted in the same way so that machines can collect and process it, making it much more useful for research and innovation. It is an important and welcome clause, as is the equally welcome creation by the Government of a digital planning programme, a spatial data unit and various support systems to enable local authorities to use the data to best effect in preparing local plans and policies.

However, in earlier amendments I proposed the creation of new use classes for second homes and holiday lets. I will not repeat the case I made then to justify that— I suspect others may comment on that—but I note that there was widespread support for the establishment of new use categories in the way I described. In the hope that the Government will either accept my proposal for new use categories or collect the relevant detailed data in relation to those categories through the licensing or registration scheme, I have simply tabled Amendment 180 so that data that is collected, by whichever means, would be processed in accordance with the same national standards. This seems important because consistent and comparable data about second homes and holiday lets is, frankly, woefully lacking, as many people pointed out in our earlier discussions, not least the noble Earl, Lord Lytton. Indeed, data on holiday lets is patchy, as it is for second homes.

Building on the point that the noble Earl made at the time, I say that although some official information is available on second homes via council tax records, in those authorities that do not offer the council tax discount for second homes there is no incentive for owners to register them, so it is likely that the council tax records significantly underestimate the scale of second homes in some areas. This data deficiency makes it difficult for researchers to track developments in both classes and the effect of second homes and holiday lets on, for example, house prices and local economies, and for local authorities to enforce regulation and taxation. Hence the benefit of the new use classes, coupled with data collected and processed to national standards, as proposed in this amendment, thereby ensuring robust, comparable and usable data on second homes and holiday lets, enabling better analysis and local regulation of these types of usage and adding to the department’s valuable work to improve local spatial and planning data.

However, to maximise those benefits, the data collected must come from as many sources as possible, including not least the platforms that offer holiday lets. Frankly, it is almost impossible to enforce licensing restrictions without, for example, rental data on how many days each property is actually let. We heard in earlier debates about London’s 90-day minimum period for short-term lets, but the Mayor of London himself has said that it is near impossible for councils to enforce it due to the lack of access to booking data from platforms. Indeed, Councillor Matt Noble from Westminster City Council very recently told your Lordships’ Built Environment Committee:

“If we were to have a data-sharing agreement with the platforms, that would be incredibly useful so that we could access and identify those issues of non-compliance with the hosts.”


I absolutely accept that platforms are not keen to hand over this data unless they can be sure it is kept confidential and used only for specific purposes; hence, as proposed in Amendment 445A, the need for data-sharing agreements—something that has already been adopted across the European Union.

I accept that Clause 210(5)(i) addresses data collection but, as I read it, it does not cover data sharing, so I look forward to the Minister either correcting me or commenting on how data sharing will be covered, given the clear need for it. I point out that I raised enforcement in an earlier group and at that time the Minister did not respond. I hope she will at least agree that data-sharing agreements will help enforcement.

I turn now to Amendments 445, 445B and 457, which address aspects of safety in short-term lets. Clause 210(5(c) as it stands would allow the registration of short-term lets to be conditional upon the safety conditions being met, but that clause lacks any detail about what is going to be required.

Analysis by the Centre for Public Data shows that many Airbnb and other short-term let listings appear to lack basic safety features, such as smoke alarms and fire extinguishers. The analysis by the centre found that in 2022—last year—9% of listings, excluding tents, yurts and campsites, were described as not having smoke alarms, 44% were described as not having fire extinguishers and 41% of properties with heating were described as not having carbon monoxide detectors. Airbnb does not check that listings have fire alarms, extinguishers or carbon monoxide detectors, or even require hosts to certify that they provide them. It does not ask hosts to confirm that gas safety or electrical checks have been carried out; hence Amendment 445, which addresses electrical safety, and Amendment 445B, which addresses safety issues in relation to gas, fire and carbon monoxide.

I will illustrate the need to specify in the Bill what more detailed requirements are needed by considering the issue of electrical safety, because I referred to this at Second Reading. I said then that Electrical Safety First points out that there is an alarming situation where short-term lets are not covered by the same electrical safety regulations as traditional holiday accommodation, forms of rented accommodation or short-term lets in Scotland. There is a loophole in the law that I believe Amendment 445 would plug.

The amendment is needed because 54% of guests in short-term lets have experienced some form of electrical safety issue: 19% of guests have reported being in properties with broken sockets or light switches; 50% have reported staying in properties where there was exposed wiring; and 13% have experienced scorching or burn marks around sockets or light switches. Amendment 445 deals with the electrical installations in the property and the portable electrical appliances provided in it.

--- Later in debate ---

[Lord Foster of Bath (LD)]

My Lords, I am grateful to all noble Lords who have taken part in the debate; I have certainly learned a great deal. We had a discussion earlier about the difference between having a national scheme and a local scheme. I was tempted to say that I would refer to the speech I made two days ago.

I am particularly grateful to the noble Lord, Lord Greenhalgh, because he has demonstrated how your Lordships’ House can always find a solution to a problem. As I now read it, based on the conversations I have been having, we are collectively agreed that we will have a national registration scheme with local flexibility based on national standards. There is a great deal of sense in that.

I listened carefully to the Minister and I am grateful to her for her response to the debate but I find myself in a great deal of difficulty, as I suspect many other noble Lords do. She told us that there will be a new consultation and that we will know about that document only when we get answers to the outcome of the previous consultation. She has already indicated that that will not take place until the summer. Notwithstanding the concern of many of us that we may still be in Committee in the summer, I still think it would be helpful to have more information about what will be in that consultation before we take the Bill further.

In particular, I very much hope that, as other noble Lords have said, the consultation will clearly indicate the Government’s policy on the various issues we have been debating. For example, my noble friend Lord Stunell—or Shipley, or whichever guise he is taking on at the moment—raised the important issue of the fee-charging structure. It is important that this consultation says what the Government believe it should be and then gets a reaction to that.

I am grateful for the Minister’s response, at least in promising us that many of these issues will be covered. The problem is that we do not really know what the answers to our questions today will be. We look forward to raising these issues again at a future stage; hopefully, we will have received the consultation document by then.

I beg leave to withdraw my amendment.

Amendment 180 withdrawn.

Levelling-up and Regeneration Bill

Lord Foster of Bath Excerpts

Committee stage
Monday 20th March 2023 Lords Chamber

[Lord Young of Cookham (Con)]

My Lords, Amendment 294, in my name and that of the noble Earl, Lord Devon, would oblige the Secretary of State to make short-term rental properties a distinct use class for planning purposes. The amendment is supported by the Local Government Association, of which I am, exceptionally, not a vice-president, and is based on changes made to secondary legislation in Wales in 2022.

A common theme running through all the amendments is the promotion of the country’s housing stock as a main home, either by raising the council tax on second homes or by using the planning system to control short-term lets. The planning system is not just about whether or not a piece of land is to be developed; it is about the use to which it is then put. For example, you need planning permission to convert a block of flats into a hotel. These use classes have been used to control changes that may be undesirable, and in a few cases they have been relaxed to promote changes between uses.

The Government have clearly recognised that we have now reached the stage where some form of control is needed if we are to maintain a proper balance between those who need permanent accommodation for rent and those who are making short-term visits. Clause 210, mentioned by the noble Baroness, introduced by the Government on Report and headed “Registration of short-term rental properties”, is a very useful step which I welcome. I also welcome the statements made about it in another place by Lucy Frazer, the previous Housing Minister. It proposes a new registration scheme for short-term lets, but this will not happen for some time, as consultation on the exact design of the scheme will not start until later this year, with decisions and actions later.

A registration scheme is a good first step but we need to build on this, as proposed in my amendment, and see much stronger controls. We need to do that if the planning system is to determine local priorities. We also need to make faster progress; only then will we see a better balance of housing options which will help families and young people who simply cannot find a place to live in some rural areas but also in London. Were she still able to attend, I am sure my noble friend Lady Gardner of Parkes would be speaking strongly in favour of this amendment.

A balance is important. Short-term lets can provide a useful boost to the local economy by promoting tourism where commercial accommodation is in short supply or very expensive, and they can be a useful source of income for those who do not need their homes all the time—for example, if they are away on holiday. However, we need a balance between second and first homes. My amendment provides a means of meeting that balance.

The Government’s legislation needs to go further by introducing a new use class for short-term rental properties, which, in turn, should be a precondition for the registration of such properties. We may not need to regulate short-term lets across the board, but making them a separate use class, as proposed in the amendment, allows full planning control in places such as seaside towns and the area just mentioned by the noble Baroness, Lady Hayman, where the growth in short-term letting has become a particular issue, or here in London, where there is pressure on the rental market.

There was a 1,000% increase in homes listed for short-term lets nationally between 2015 and 2021. That is 148,000 homes that could otherwise house local families that are available on Airbnb-style lets. In Cornwall, short-term listings grew 661% in the five years to September 2021. The county has roughly 15,000 families on social housing waiting lists and the same number of properties being marketed as housing lets. The noble Earl, Lord Devon, may mention his county, where short-term lets appear to be worsening an existing housing crisis, with nearly 4,000 homes taken out of the private rented sector and 11,000 added to short-term listings since 2016.

Currently, local authorities outside London have no legal means of preventing this loss of private rented housing to short-term lets. Several cases have come to light of people in rented housing in rural areas being evicted so that the property can be let on a short-term basis. In this context, it is worth mentioning the position in London as it shows a way forward. The Greater London Council (General Powers) Act 1973 —I declare an interest as I was on the GLC at the time—discouraged short-term lets by saying that the use of residential premises for temporary sleeping accommodation for fewer than 90 consecutive nights in London was a change of use, for which planning permission was required, so London residents face a possible fine of up to £20,000 for each offence of failing to secure planning permission. That position was basically confirmed in the Deregulation Act 2015. I see some advantage in simply extending this London provision to the rest of the country.

Finally, there are issues here that go beyond my noble friend’s department. Holiday lets get mortgage interest relief; residential tenancies do not. Holiday lets have no minimum energy and safety standards, and they qualify for business rates and small business rate relief. We need a cross-government approach to get a coherent and better-balanced policy on this important matter. Of course, I hope my noble friend will feel able to accept my amendment. If she cannot go that far—and I see from her body language that that may not be possible—will she commit to consulting soon on building on Clause 210, with a view to getting that better balance between the use of scarce housing stock in areas under pressure and to helping families for whom private renting is the only option?

[Lord Foster of Bath (LD)]

My Lords, I will address the four amendments in my name and that of my noble friend Lord Shipley and comment on some of the others. We have already heard numerous examples describing why we need to address the issues around empty homes, second homes and properties available for short-term rent. As noble Lords are aware, some parts of the United Kingdom have already introduced measures to tackle some of them; for example, certification of tourist accommodation in Northern Ireland and licensing schemes for short-term lets in Scotland and Wales. Sadly, at the moment, England is being left behind.

I am pleased that at long last the Government are tackling one issue—the way in which some second home owners have gamed the system so that they pay neither council tax nor business rates—but many other problems remain. I live in east Suffolk, close to the popular seaside town of Southwold. With the recent growth in second home ownership and the rapid rise in properties available for short-term rent, of the 1,400 properties, now only 500 have full-time residents, while 500 are second homes and 400 are short-term lets; in other words, nearly two-thirds are not permanently lived in, and this has had a significant impact.

--- Later in debate ---

[The Earl of Lytton (CB)]

My Lords, I will get the guilt off my shoulders through your Lordships’ provision of the confessional: I declare an interest as co-owner of a second home in the West Country and of two short-term let properties in the same area. All, like the house I live in, which is in another part of the country, are legacies of estates that have been broken up and whittled down. Both areas have important family historical and indeed, in some cases, national historical associations.

Having declared that, I ought also to declare to the noble Lord, Lord Foster of Bath, who mentioned the Built Environment Committee, that I was, until the latter part of January, a member of that committee, and very privileged to have been so under the chairmanship of the noble Lord, Lord Moylan, who I am pleased to see in his place, and before him, the noble Baroness, Lady Neville-Rolfe. So I am familiar with the matters that were brought before us. However, I shall leave a lot of that to one side because there has been a bit of disaggregation in the groupings here. We have group 10 coming up, in which aspects of this will recur, and I find that quite difficult to deal with: I shall try to avoid getting up then and saying the same thing all over again and boring your Lordships.

While I have involvement with both normal assured shorthold tenancy properties and short-term buy to let, I certainly do not have anything to do with keeping property deliberately empty: that would be complete anathema to me, and I say so as somebody with professional training: I am a chartered surveyor and I know that all that happens with empty properties is that they deteriorate. They are much better occupied and lived in or used in some way.

I agree with the general premise that residential properties should not be deliberately kept empty for no good reason. I know that in some areas—the City of Westminster is one—there was a thought that foreign investors were buying up high-end residential accommodation and keeping it empty under the premise that perhaps it was less valuable if it had been previously occupied. It takes all sorts, but that is a particular situation. I support the noble Baroness, Lady Hayman of Ullock, in her Amendment 166 because there is a great deal of speculation about how many empty properties there are and where they are. They are not always in the places where people want or need housing and have to live and work. So, first and foremost, there is a distribution problem, along with a numbers problem. We need to sort that out, and there needs to be better data on that.

I would go further and suggest that the reasons why a property might be empty need to be understood before we set about making dramatic changes, either to the amount that is levied or to planning, although I take the point made by the noble Lord, Lord Foster, that something probably needs to be done in some of the areas that the noble Lord, Lord Shipley, referred to—the hotspots. They are not actually everywhere; they are not in every town and city; they are in defined places. Even those who particularly object to the idea of second homes and holiday homes altogether on principle recognise—and the data seems to show—that these are in quite specific areas. They are not necessarily in holiday locations at the seaside; they can be in the middle of cities and in parts of Greater London. We need to identify that.

We should not underestimate the inventiveness of those faced with a surcharge, any more than we should fail to consider the equity of a surcharge where there is a genuine reason the property is empty. The noble Baroness, Lady Hayman, referred to that and I use the example of the Ds: death, disrepair, dispute, debt, decarbonisation and, of course, redevelopment. Sorry, “redevelopment” is not a D, but noble Lords will get my drift.

Another aspect is that if there are to be additional charges, is that for the purpose of rectifying some particular, identifiable ill or mischief that is occurring, or is it just another tax? If it is just another tax and it is going into some jolly old pot, I am not particularly keen on that. There needs to be some degree of hypothecation. If there is a demonstrable case—for instance, that empty properties affect affordability in a locality or are adversely affecting incomers who might be economically active—the tax yield generated should perhaps be devoted to that or allied purposes and not put in some general pot. Presumably the case needs to be made.

I agree that ultimately, subject to some sort of national framework and means of analysis, the decision should be for the local community to put in place—and not necessarily be dictated from on high. The authorities, having made the case, must accept that the principle stood behind that is binding on them; otherwise, we risk a rather unedifying and opaque state of affairs, where the power is invoked for one reason but implemented for some entirely different objective altogether, and I would not be keen on that. We do not need a knee-jerk reaction to all that. There needs to be a consistent methodology for assessing the nature of empty second properties or short-term letting, and the detrimental effect these are having.

The noble Lord, Lord Foster, gave a graphic account of the issue, which I know from—

[Lord Foster of Bath (LD)]

Before the noble Earl moves on to another point I raised, could I ask, through him, for the Minister to perhaps confirm that even in the current legislation as proposed, it will be possible for councils to add a premium on the council tax for empty properties? It would be for the council to determine how that money is used; for example, my own local council has already a debate on this issue and proposed that the vast majority of additional money raised will go towards the building of more affordable homes in the area—to address the problem that is now being created because of the empty properties and short-term lets.

Levelling-up and Regeneration Bill

Lord Foster of Bath Excerpts

Committee stage
Monday 27th February 2023 Lords Chamber

[Lord Kennedy of Southwark (Lab Co-op)]

My Lords, when I spoke earlier, I should have referred to my interest as a vice-president of the Local Government Association. I apologise to the Committee for that.

[Lord Foster of Bath (LD)]

My Lords, before I turn to Amendment 71, I place on record a very personal—and it is not just mine—support for what the noble Baroness, Lady Bennett, said a few minutes ago about the vital importance of allowing tiers of local government to decide for themselves how they want to organise their decision-making processes. That is fundamental.

In terms of one of those tiers of local governance, we have already heard throughout the course of today’s deliberation frequent reference to the importance and the role of district councils. That is what Amendment 71 is about. I noticed that, during the deliberations on a number of groups, concern has been raised about quite how district councils are going to fit in to the new structures that are being proposed. Indeed, the noble Baroness, Lady Hayman, said—I counted it—on five separate occasions during her last contribution, “It’s all very complicated” or “It’s all incredibly complicated”. I say to her that my Amendment 71 provides a solution which brings enormous simplicity to the whole issue.

Gambling

Lord Foster of Bath Excerpts

Thursday 20th October 2016 Lords Chamber

[Lord Ashton of Hyde]

My Lords, perhaps I ought to point out to the noble Lord the position on the triennial review. The Gambling Act was introduced by the Labour Government in 2005 and in the following five years no triennial review was held by the Labour Government. The coalition Government held a triennial review in 2013, and the Conservative Government will hold a triennial review in 2016.

[Lord Foster of Bath (LD)]

My Lords, fixed-odds betting terminals blight lives, lead to crime and damage local economies. As far back as 2005, the current Prime Minister expressed her deep concern about the harm that fixed-odds betting terminals had caused, and yet so far the Government have taken no action. As we have heard, the triennial review is already way behind schedule. Can the Minister say, in particular, when the Government will respond to the appeal by Newham Council and 93 other councils which want to be able to reduce the stake on FOBTs? That response from the Government was due by the summer but we still have not had it. When will we receive it?

[Lord Ashton of Hyde]

My Lords, I do not know whether the noble Lord was listening to what I said before. The last triennial review was held in 2013 and the next one will be held in 2016. As regards Newham Council’s application under the Sustainable Communities Act, it is true that the second response—we have responded once—was due in July, so it is some months overdue. The best place to review the evidence in that appeal, which was about reducing the stakes on FOBTs—I accept that problems can be caused by those; I do not doubt that—will be in the forthcoming triennial review, which will call for evidence on these subjects.

Housing and Planning Bill

Lord Foster of Bath Excerpts

Wednesday 13th April 2016 Lords Chamber

As I have previously committed to your Lordships’ House, we will publish the data we have collected, which will help noble Lords, local authorities and any other interested parties to understand the decisions that are taken. As I confirmed earlier in the debate, we will be making the higher value regulations affirmative, which will provide this House and the other place with additional assurances about how we intend to use these powers. I beg to move.

[Lord Foster of Bath (LD)]

My Lords, Amendment 61A seeks to leave out Clause 67. However, before I speak to it, I thank the Minister for demonstrating once again her willingness to listen to the views of noble Lords on all sides of the House. I thank her for the amendments she has just brought forward. As she acknowledged, they are small amendments but will have a profound effect. However, I have continued grave concerns about many aspects of Clause 67, which is why I have brought forward this amendment.

As noble Lords are aware, under the clause councils that have high-value—or, now, higher-value—properties will be required to sell them and hand over at least some of the receipts. If they choose not to sell them, they will still have to hand over a formula-based sum of money to the Secretary of State. The money accrued from this mechanism will be used to fund replacement council homes, the right-to-buy discount for housing association properties and the brownfield regeneration fund.

This will have a huge impact on councils that did not choose to transfer their council houses to housing associations through the large-scale voluntary transfer procedure. The 165 affected councils are the ones that believe that they are best placed to manage their housing stock for the benefit of their local residents, and although in later groupings we will discuss a variety of proposals to mitigate the impact of Clause 67, we on these Benches believe that it is entirely wrong for government policy to be funded by imposing such a huge burden on a limited number of councils, and we are not alone in that view. In its report published just two months ago, the all-party CLG Committee in another place states that,

“we believe in the principle that public policy should usually be funded by central government rather than through a levy on local authorities, especially as the impact of this levy will fall only on some local authorities, yet will be applied nationally”.

That last point is important. The Minister, Brandon Lewis, made it clear when he was giving evidence to the committee that this would be a national scheme and that the income from council house sales would not be ring-fenced locally. To quote the noble Lord, Lord Best, in a different context, it is a further example of robbing Peter to pay Paul.

There are many reasons why I believe that your Lordships’ House should be extremely wary about allowing Clause 67 to remain in the Bill, and I have no doubt that they will be discussed in great detail later when we discuss amendments in other groupings. There are issues around, for example, the Government’s complete failure—a little has been given today, and I welcome that—or their significant failure to provide any detail of how the proposals will work. We do not yet have a definition of “high or higher value”, and it is interesting to note that the indicative figures that appeared before the general election have now been removed from the Conservative Party’s website. Again, that is a little bit of progress, which I welcome.

We do not know which circumstances will determine whether a high-value property is deemed vacant. We have not seen the draft regulations in relation to the method of calculating the payment that councils must make to the Secretary of State. We do not know if the calculation will take into account regional and area variations in property prices. We do not know what deductions will be permitted and what exceptions will be made. We do not know how councils in areas where suitable land is scarce are expected to build replacement homes. The Government cannot even provide any estimate of the likely income from the scheme or the amount they need to receive to fund their policies. When asked by the Commons CLG Committee how much income it was anticipated would be needed to cover right-to-buy discounts, building replacement homes and brownfield regeneration funds, the Minister, Brandon Lewis, replied:

“I am not at the moment in a position to give you those kinds of figures”.

Perhaps the noble Baroness the Minister, two months further down the track, is in a better position than her colleague to tell us how much the Government expect is needed to fulfil their policies. Further, perhaps she can explain to us something that Brandon Lewis was unable to do: how right-to-buy discounts will be funded if and when the funding source, which is the sale of high-value or higher-value local authority homes, dries up. Are we to be in a situation where the replacement houses for those which councils are forced to sell are themselves required to be put up for sale immediately after the first tenants move out?

Many questions are unanswered and will remain so before the Bill leaves your Lordships’ House. They should have been answered at a much earlier stage in our deliberations. My central contention is that there may well be a case for the sale of high-value and higher-value council homes to meet our housing shortfall, but in the words of the CLG Committee:

“Local authorities are best placed to understand their communities and know where specific pressures exist, and they must have the ability to act in the interests of their residents”.

Earlier today the Minister sent a letter, to which she has referred. It came out at 2.54 this afternoon. In it, she writes, very encouragingly:

“Reflecting this diversity and respecting the views of local people and local leaders is at the heart of Government’s drive for localism”.

Surely the best way to support the drive for localism is to drop the imposition and restrictions on local councils in Clause 67. That clause would hinder local authorities from being able to proactively manage their assets. For that reason, I believe that it should be left out of the Bill.

[Lord Porter of Spalding (Con)]

My Lords, I rise to speak to Amendment 54 and the other amendments that would add those two letters, “er”, to the word “high” in the clause. Noble Lords will already appreciate my lack of a grasp of the English language, but even I could see how dangerous those two small letters would have been in the wrong hands. I thank my noble friend the Minister for clarifying the Government’s intent to add those and where they will be applied. I ask her to confirm in her closing remarks that this will be used not as an attempt to raise additional income, but as purely a means to spread the burden across more authorities.

Had my noble friend not agreed in the letter she sent earlier and in her remarks on the manifesto commitment that councils would be allowed to retain sufficient receipts to build one-for-one replacement of the same tenure, I would probably have been speaking against these amendments. I should explain to noble Lords why I am prepared to move purely on that basis, and properly in response to the noble Lord, Lord Foster.

In councils such as mine, where we are able to retain sufficient receipts to build a council house out of the sale of a high or higher value, I would probably volunteer to sell all my council houses to anybody who would buy them on the open market, on the basis that the cost of building a replacement unit would probably be about 30% cheaper than the value received on the sale of that unit. I would be quite happy to replace my beautifully maintained 1,600 homes for 1,600 brand new homes in the immediate future, thus doubling the number of affordable homes in my district. On that basis, I earnestly thank the Minister and the Secretary of State in the other place for listening to our proper arguments and the case we made, and for responding appropriately.

--- Later in debate ---

[Baroness Williams of Trafford]

My Lords, I begin by agreeing with the noble Lord, Lord Kennedy, about the intention of government in providing housing, and about people—not usually the tenants themselves, and subsequently the owners—sometimes trying to profit from housing that is intended for an entirely different purpose. I hope the noble Baroness will recall the undertaking I gave in Committee to get a working group together to look at how such fraud can be eliminated from the system. I feel very committed to that. I also take on board her point about the detail perhaps not being ready when noble Lords might want it. I hope that noble Lords will at least give me credit for trying to do that when I can, and in as much detail as I can.

I assure noble Lords that the Government already publish a significant amount of statistical data on the composition, tenure and affordability of housing through various mechanisms such as housing surveys and data collection exercises. For example, as part of the English housing survey, we publish an annual report on households. For 2013-14, this included information about tenure in the social rented sector, the private rented sector and owner-occupation. It compared each of these tenures and looked at how the relative size of each has changed. The report also examined measures of the affordability of social rented accommodation and movements into and out of the social rented sector.

Additionally, the Government publish various housing statistics, giving up-to-date data on a range of issues such as affordable housing supply, dwelling stock estimates, net supply of housing, housebuilding and housing market data. That is very useful information which provides a comprehensive and up-to-date picture of changes in housing stock, tenure and affordability.

With that reassurance about the extensive data—

[Lord Foster of Bath]

My Lords—

[Baroness Williams of Trafford]

Is it a point of clarification?

[Lord Foster of Bath]

Yes indeed. I am grateful to the Minister for detailing all the information that is available, but can she answer the question I asked earlier in our deliberations: what is the Government’s estimate of the money they need to receive from the sale of high-value properties to cover the cost of replacement properties for the right-to-buy discount and the brownfield regeneration scheme?

[Baroness Williams of Trafford]

The noble Lord is obviously referring to a previous group of amendments. I am not sure whether he was in his place when I said that this data collection exercise is quite extensive— 60 million pieces of data. We always thought it would be a quite a lengthy process, but we will keep noble Lords up to date as and when we can.

Does the noble Lord, Lord Harris, want to add to that?

Oral Answers to Questions

Lord Foster of Bath Excerpts

Thursday 14th June 2012 Commons Chamber

[Hugh Robertson]

I have seen absolutely no evidence that that is the case. The majority of torch bearers are nominated by LOCOG, which has specifically gone out looking for community champions with the sponsors, which is where quite a lot of the controversy lies. LOCOG also wrote to the sponsors, discouraging them from allowing executives to run with the torch and encouraging them to find as many local champions as possible.

[Mr Don Foster (Bath) (LD)]

Will lottery good causes be among the beneficiaries of any underspend in the Olympic budget?

[Hugh Robertson]

I think the key thing is to deliver the underspend first; then we will work out how to spend it.

Ministerial Code (Culture Secretary)

Lord Foster of Bath Excerpts

Wednesday 13th June 2012 Commons Chamber

[Mr Don Foster (Bath) (LD)]

Several months ago, my right hon. Friend the Deputy Prime Minister made it absolutely clear, for reasons of transparency and public confidence, that if—following the appearance at Leveson by my right hon. Friend the Secretary of State for Culture, Media and Sport—questions remained to be answered, those questions should be thoroughly and adequately investigated. We believe that questions do remain to be thoroughly investigated, but let me be very clear about those questions.

The Liberal Democrats are clear that the way in which the Secretary of State handled the BSkyB bid, notwithstanding his known support for News Corporation and News International, was done absolutely by the book. Throughout, the Secretary of State, notwithstanding his own views on the matter, sought independent advice when he did not have to do so from Ofcom and the Office of Fair Trading, and he followed that advice. The one thing that has rarely been mentioned in this Chamber and outside is what decision the Secretary of State ultimately took. That decision was not in the interests of News Corporation because it denied it the level of involvement in Sky News that it then had and actually reduced its plurality position in news and current affairs. We therefore have no questions about how the Secretary of State handled that matter.

[Karl Turner (Kingston upon Hull East) (Lab)]

Given the right hon. Gentleman’s support for the Secretary of State, I wonder why he will not be supporting him in the Lobby.

[Mr Foster]

If the hon. Gentleman will allow me to elaborate, I shall answer that very question.

Nevertheless, as I said a few seconds ago, I believe, and the Deputy Prime Minister believes, that there are questions, in particular about the ministerial code, that deserve thorough, independent investigation. We believe, as does the Chairman of the Public Administration Committee, that there is an urgent need to review the current procedure. It is probably inappropriate for the Prime Minister alone to be the sole judge of whether an independent investigation should take place. We believe it ought to be possible either for the special adviser to make the decision himself, or for it to be made on the advice of a senior civil servant or the Public Administration Committee. However, this decision was taken under the current rules by the Prime Minister against the advice offered by the Deputy Prime Minister and without consultation with him. It is therefore one that neither the Deputy Prime Minister nor the Liberal Democrats can endorse.

[Greg Mulholland (Leeds North West) (LD)]

Considering that the so-called independent adviser on ministerial interests was actually a wheeze set up by a previous Prime Minister, Tony Blair, to get out of a pickle, will my right hon. Friend ask the Labour Front-Bench team whether they would reform the system, which clearly is not fit for purpose?

[Mr Foster]

I am grateful to my hon. Friend for his intervention, and I am sure that the Opposition will have an opportunity to respond to it. We are clear, however, that reforms are necessary.

[Chris Bryant]

rose—

[Mr Foster]

I shall of course give way to the hon. Gentleman, who has featured so prominently in this issue.

[Chris Bryant]

The right hon. Gentleman earlier praised the process that the Secretary of State adopted in taking forward the bid. Has he read the memo that the Culture Secretary sent to the Prime Minister before he was in charge of the bid which makes it absolutely clear that what he intended and hoped to achieve was, surprisingly, exactly the same as what he actually achieved—in other words, the best possible outcome, in law, for Sky?

[Mr Foster]

The hon. Gentleman has followed this issue assiduously, but on this occasion he has got his facts wrong. We must remember that there had been no discussion about mitigations in lieu or about reducing the BSkyB bid involvement of News Corporation—[Interruption.]

[Mr Deputy Speaker (Mr Lindsay Hoyle)]

Order. Mr Bryant, you hope to catch my eye, and I was thinking of calling you next. I am sure that you will want to share all your information with the House then, rather than wasting it on interventions.

[Mr Foster]

We and the Deputy Prime Minister are clear that questions need to be answered. It would have been better had the matter been addressed by the independent adviser, but that is not the system we currently have, which is the system that we would like to change. I want to make it clear, however, that this is not, as some have suggested, an issue of collective responsibility. There was not a collective decision on this. It is not part of the coalition agreement but was a decision taken solely by the Prime Minister, and in no way will our vote, or absence of votes tonight, preclude us from continuing to work with our coalition partners on the issues agreed in the coalition agreement and in sorting out the economic mess in which the previous Government have left us.

[Mrs Eleanor Laing (Epping Forest) (Con)]

rose—

[Mr Foster]

I give way to my hon. Friend and colleague in the coalition.

[Mrs Laing]

Is my right hon. Friend aware that if the Secretary of State for Business, Innovation and Skills had not acted irresponsibly and unprofessionally in the first place, thus losing the right to make this important decision, the Secretary of State for Culture, Olympics, Media and Sport, who was previously unprepared to take such a decision, would not have been put in this difficult position?

[Mr Foster]

The hon. Lady makes a factually correct point: if the Business Secretary had not had the responsibility removed from him, it would not have gone to my right hon. Friend the Culture Secretary.

I also want to make it absolutely clear why the Liberal Democrats are not prepared to go into the Lobby with the Labour party today. The House is well aware that this is not a decision for the House; it is a decision for the Prime Minister, and he has made his decision. This is, therefore, a political ruse by the Labour party, whose behaviour on these issues is frankly appalling. For example, paragraph 9.3 of the ministerial code states:

“Every effort should be made to avoid leaving significant announcements to the last day before a recess.”

On Tuesday 22 July 2008—the day before the recess—no fewer than 30 ministerial announcements were made, 10 of which were from the then Prime Minister. One year later, following the appalling behaviour of Mr Damian McBride, no action was taken over the Prime Minister’s responsibility for his special adviser, who was forced to resign for his behaviour. Furthermore, the Labour party misled not only the House but the country over the war in Iraq, and has spent years trying to cosy up to the Murdochs. There is no way we will join Labour Members in the Lobby today.