Council Tax: Second Homes

Lord Greenhalgh Excerpts

Thursday 4th November 2021 Lords Chamber

[The Minister of State, Home Office and Department for Levelling Up, Housing & Communities (Lord Greenhalgh) (Con)]

I recognise the noble Baroness’s interest in this issue. The Government have confirmed that we will legislate to require that holiday rentals meet an actual letting threshold before being assessed for business rates. This will ensure that only genuine holiday businesses can access the rate relief for small businesses. We will set out further details shortly in the Government’s consultation response.

[Baroness Thornhill (LD)]

Minister, this at last is a Cornish/Cumbrian Lib Dem campaign success—I can see the leaflets now. Can he explain why it has taken so long and say when we will get a timetable and conclusions of the 2018 consultation that was never actually published? Does he agree that salt has been rubbed into the wound, given that unscrupulous second-home owners have also received £104 million from Cornwall’s Covid aid pot, thus reducing the amount available to legitimate businesses?

[Lord Greenhalgh (Con)]

My Lords, I should have registered my residential and commercial property interests, although I have not tried to use this loophole. The Government announced in March that we will legislate, and we have been working very closely with the Treasury and the Valuation Office Agency to finalise the details of how and when this will be implemented. This of course takes time and we will publish our consultation response shortly.

[Lord Campbell-Savours (Lab) [V]]

My Lords, the proliferation of holiday lets in lakeland towns such as Ambleside, Windermere and Keswick is decimating the residential market for locals, particularly the young. The switch from council tax to a reduced business rate system will only aggravate the problem by further incentivising holiday letting. Is not the answer to this wider problem of drift to holiday letting to cap the number of holiday lets through the use of a combination of licensing and planning rules? Something has to be done.

[Lord Greenhalgh (Con)]

My Lords, the Government support the sharing economy, but the noble Lord will be pleased to know that we recognise the concerns about the uneven regulatory requirements in it. In the Tourism Recovery Plan, published in June 2021, we committed to consult on the introduction of a tourist accommodation registration scheme in England.

[Lord Shipley (LD)]

My Lords, the Minister referred to a consultation, but does he accept that every residential property should pay council tax and parish precepts, whether it is a main home, a second home or a holiday let, as a contribution to local services?

[Lord Greenhalgh (Con)]

I point out that 96% of second homes pay council tax in full, even though they may use local services only on an occasional basis. We believe that, in the sharing economy, where people run businesses and meet the threshold, it is reasonable for them not to pay council tax and to be subject to the business rates regime. No local authority has lost out, because they are covered by various grants in the business rates retention scheme.

[Baroness Blake of Leeds (Lab)]

My Lords, I refer to my interest as a vice-president of the LGA. Last year, the Chancellor announced a major reduction in stamp duty, which also covered buyers of buy-to-let properties, holiday homes and other second homes. Can the Minister confirm how much the tax cut for second home owners cost the public purse in total?

[Lord Greenhalgh (Con)]

My understanding is that we have introduced a stamp duty surcharge of some three percentage points on top of the standard rate for those who purchase additional properties. That covers all second home owners, so they are not getting off lightly when they are buying their homes, and the Treasury is doing very well out of that regime.

[Baroness Harris of Richmond (LD) [V]]

My Lords, I declare my interest as a second home owner. Can the Minister tell me what impact he thinks this will have on communities where second homes are prevalent?

[Lord Greenhalgh (Con)]

My Lords, it is a hard one to answer; in some areas where tourism is incredibly important it is a great boost to the economy, and in others it can result in the hollowing out of a particular area. I cannot give a simple response to that question.

[Lord Bassam of Brighton (Lab)]

My Lords, the Question of the noble Baroness, Lady Thornhill, touches on one aspect of the housing crisis facing many living in tourist areas, but particularly coastal communities. As we found during the 2018 Select Committee inquiry on seaside towns, many local residents face a combination of low pay, high rents or unaffordable mortgages, and being squeezed out of the housing market by holiday lets. What plans do the Government have to find a workable solution to the interplay of these connected problems that does not penalise families struggling to make ends meet and trying to find a decent job?

[Lord Greenhalgh (Con)]

My Lords, there are a number of schemes. I have mentioned the £11.5 billion affordable homes programme; there is also the first homes scheme, which has a minimum discount of 30% but which, with local councils, can be increased to 40% or 50%, so that new homes are offered first to people who live locally. Those kinds of initiatives will help local people get on the housing ladder, which is what the vast majority of people want.

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

My Lords, I refer the House to my entries in the register. Holiday lets, as we know, can be much more lucrative than tenancies, with landlords frequently able to bring in the income they would get over the course of a whole year from tenants in just the summer months. Small business rate relief also means that they can pay very little tax. Should the Government not do more in this area, perhaps with a larger levy, to encourage landlords to rent to tenants instead and help deal with the housing crisis that we spend so much time talking about in this House?

[Lord Greenhalgh (Con)]

My Lords, we are approaching this by ensuring that people do not game the system. It is perfectly proper, if you have a business, to be subject to the business rates regime. We have not yet finalised what that threshold will be. We are also consulting on whether there is a need for registration of these homes, as I have mentioned.

Gypsies and Travellers

Lord Greenhalgh Excerpts

Thursday 4th November 2021 Lords Chamber

[The Lord Bishop of London]

To ask Her Majesty’s Government what assessment they have made of the availability of places for nomadic Gypsies and Travellers to legally and safely stop; and what plans they have to address any identified shortage of places.

[The Minister of State, Home Office and Department for Levelling Up, Housing & Communities (Lord Greenhalgh) (Con)]

The Government do not undertake an assessment on the availability of places for nomadic Gypsies and Travellers to stop. It is the responsibility of local planning authorities to make their own assessment of need for both permanent and transit site provision and to identify land to meet this need in their local plan. Authorities are best placed to make decisions about the number and locations of sites locally.

[The Lord Bishop of London]

I thank the Minister for his Answer. He may be aware that, in areas such as Leeds and Durham, a model of negotiated stopping has been piloted. This is where there an agreement between Traveller communities, local authorities and other agencies that allows temporary stopping on sites, having discussed the duration of their stay and, sometimes, a contribution towards costs. Will Her Majesty’s Government consider implementing a negotiated stopping programme across the country to enable this community to retain their cultural identity? If so, what department will be responsible?

--- Later in debate ---

[Lord Greenhalgh (Con)]

The right reverend Prelate should know that, when I was Communities Minister, I was someone who encouraged the use of negotiated stopping throughout the Covid-19 pandemic by writing to local authorities. Having negotiated stopping sites avoids the need for enforcement of unauthorised encampments through the courts and we think it is a great way forward. But it is also a matter for local authorities, and we will continue to encourage them to use this.

[Baroness Whitaker (Lab)]

My Lords, the Labour Government enacted legislation that obliged local authorities to assess the housing need of Gypsies and Travellers. Successive Governments have prayed this in aid as an improvement. The noble Lord the Minister will be aware that very few local authorities comply. What steps will Her Majesty’s Government take to monitor and enforce this legislation, which is of course the prerequisite for providing enough sites?

[Lord Greenhalgh (Con)]

My Lords, the Government expect local planning authorities to assess the need for Traveller sites in their area and to plan accordingly. We are not looking to introduce a statutory duty, as currently operates in Ireland; we do not see that as a necessary step.

[Baroness Greengross (CB)]

My Lords, what steps will the Government take to work with local authorities to increase the number of sites for Gypsies and Travellers? Statistics from the charity Friends, Family and Travellers show that only eight local authorities out of 68 in the south-east of England have identified a five-year supply of specific, deliverable sites for Gypsies and Travellers. What steps will the Government take to improve this situation?

[Lord Greenhalgh (Con)]

My Lords, we will continue to encourage all local authorities to access funding for both permanent and temporary sites through the affordable homes programme of some £11.5 billion. I reiterate that it is the responsibility of local planning authorities to make an assessment of need for both permanent and transit sites and to identify sites in their local plan. Of course, these local plans are independently assessed by an inspector.

[Baroness Blake of Leeds (Lab)]

My Lords, earlier this year, reports emerged that Pontins had used a blacklist of common Irish surnames allegedly to attempt to prevent Traveller families staying at its holiday parks. What recent assessment have the Government made of levels of similar discrimination against Gypsies and Travellers? Can the Minister say what steps are being taken to end this?

[Lord Greenhalgh (Con)]

My Lords, we have previously discussed this in the House and it is an absolutely disgraceful example of discrimination. No one should be discriminated against because of their race and ethnicity, and we have invested in a programme of some £150,000 to tackle discrimination. We will continue to challenge companies such as Pontins, and I think the media did a fair job of ensuring that this does not happen again.

[Baroness Bakewell of Hardington Mandeville (LD)]

My Lords, if every local authority provided permanent and transit sites serviced with water, sanitation and waste disposal, families would have somewhere to bring up their children, get them into school and look after their elderly. There is no fear that they will overwhelm social services, as they always look after their elderly themselves. Why do the Government not help them to do this by enforcing the responsibility of local authorities to provide sites?

[Lord Greenhalgh (Con)]

My Lords, I answered that question in my answer to a previous supplementary: there are no plans to bring in statutory provision, because the previous introduction of a statutory duty simply did not work. We will continue to encourage local authorities to fulfil their duties under their local plans.

[The Lord Speaker (Lord McFall of Alcluith)]

The noble Baroness, Lady Blower, is not present, so I call the noble Lord, Lord Mann.

[Lord Mann (Non-Afl)]

Would it not be helpful to have a national website that identifies temporary sites? Indeed, would it not be quite possible for local authorities to be able to live-time the number of vacancies on those sites so that everyone can see what is available and where?

[Lord Greenhalgh (Con)]

My Lords, that is a really helpful suggestion that I will take back to officials in my department. The statistics on this are positive, in that we have seen an increase in the number of sites in the last 10 years but, obviously, knowing where those vacancies are would be very helpful indeed.

[Lord Dubs (Lab)]

My Lords, am I to understand that the Government’s policy is simply to say, “Nothing to do with us, leave it all to local authorities”? Is not the difficulty that if one local authority moves ahead of the others, the demand in that area will increase, and adjacent local authorities will not share the responsibility? Surely we need a proper national approach of co-operation between the Government and local authorities to move forward.

[Lord Greenhalgh (Con)]

My Lords, I think that is what we have. We are working with local authorities and encouraging them to assess their local need. We have seen, through this policy, an increase in site provision and we feel that responsibility rests in local government. As someone who spent 20 years in local government, I do not think everything should be directed from Whitehall.

[Baroness Brinton (LD) [V]]

My Lords, the Minister has just said that there has been an increase in authorised encampment pitches. The reality is that there has been an overall 8.4% decrease of pitches on local authority Traveller sites over the last decade. There has been an increase in unauthorised encampment sites not run by local authorities. It seems extraordinary, at a time when this Government propose to criminalise Gypsy and Traveller families who cannot find authorised encampment pitches, that they are not doing more than “encourage” local authorities to fulfil their duties. Please will the Government reconsider that and ensure that local authorities provide enough sites for the community?

[Lord Greenhalgh (Con)]

My Lords, I can provide only the statistics that I have been given, which are that since 2010 there has been an increase of 1,291 new affordable permanent pitches, and in the January 2020 Traveller caravan count there were 354 transit pitches, of which 138 were vacant transit pitches. We recognise the need to increase supply, which is why we are providing the affordable homes grant that local authorities can bid into. I also point out that there is a very high bar for criminality—members of the community committing actual harm—before criminal proceedings begin.

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

My Lords, I refer the House to my interests as set out in the register. Does the noble Lord accept that the lack of places for Gypsy, Traveller and Roma communities is a huge problem? This is a community that is expected to abide by the law, as we all are, but it also needs to be protected by the law. Its members need to be treated with respect, to be free from discrimination and to be able to live their lives peacefully. What are the Government doing to support that? So far, all he has said is that it is a matter for the council.

[Lord Greenhalgh (Con)]

I have also said that there is a high bar for criminality, that no one should be discriminated against because of their race or ethnicity, that we are investing in measures to reduce hate crime and that we recognise that the Government play a part, particularly in funding. That is why there is funding available in the affordable homes grant, and I am sure there will be further announcements of funding that will increase the supply of authorised permanent sites and transit provision. We will continue to encourage negotiated stopping as another way of dealing with these issues.

[Baroness Ritchie of Downpatrick (Lab)]

My Lords, in order to copper-fasten additional sites, what determined steps will the Government take to ring-fence funding for local authorities to build Gypsy and Traveller sites as part of the levelling-up agenda and to respect human rights provisions?

[Lord Greenhalgh (Con)]

My Lords, I am not a great fan of ring-fencing: that is not always the way to achieve something. We have £11.5 billion in total for a programme of affordable housing, but that can also be bid for to build these additional sites. We continue to think that the right way is for councils to assess against local need and make their bids accordingly.

Net Zero: Social Market Foundation Report

Lord Greenhalgh Excerpts

Monday 1st November 2021 Lords Chamber

[The Minister of State, Home Office and Department for Levelling Up, Housing & Communities (Lord Greenhalgh) (Con)]

My Lords, the Government welcome the report and its conclusions. The net-zero transition will bring many challenges at the local level, but it will also create vital opportunities to level up. The Government are already doing many of the things that the report recommends. The net-zero strategy sets out our approach to maximising the opportunities that exist and how local and devolved administrations can contribute and benefit from the transition.

[Baroness Scott of Needham Market (LD)]

The report highlights some of the challenges that will be faced by rural areas in the transition to net zero. Does the Minister accept that solutions tailored to urban areas may very well not be appropriate in the countryside? Can he consider the recommendation that there should be a bespoke net-zero approach to rural areas to ensure that they do not get left behind?

[Lord Greenhalgh (Con)]

My Lords, the Government are absolutely committed to rural areas not being left behind and take the point that they are essentially very different from urban areas. However, we do not consider that we should have a separate rural strategy but consider it to be part of all our activities.

[Baroness Warwick of Undercliffe (Lab)]

My Lords, I declare my interest as chair of the National Housing Federation. I know from talking to housing associations over the last few months how determined and ambitious they are to make homes greener and warmer for residents and to tackle climate change, but it cannot be done alone. They are already planning to invest £70 billion in future-proofing, but our new estimates, produced by Savills, show that it will cost an extra £36 billion to reach full decarbonisation by 2050. I welcome the additional £800 million announced last week, together with the heat and buildings strategy—a great step forward—but neither addresses the long-term funding gap to 2050. Can the Government work with the sector to bridge this gap and to achieve the country’s net-zero ambitions?

[Lord Greenhalgh (Con)]

My Lords, we recognise that there are considerable challenges in decarbonising our homes. I made a commitment that we will work together to help housing associations address those challenges.

[Lord Flight (Con)]

My Lords, by how much is it estimated that the cost of energy will increase for identified UK user groups as the result of achieving net zero?

[Lord Greenhalgh (Con)]

Price and bill impact will depend on electricity market developments and consumption patterns. Policies that improve energy efficiency of homes will reduce bills and benefit fuel-poor households. My noble friend will be pleased to know that we expect wholesale prices under a renewable-based electricity system to be lower than our current one, which is based on fossil fuels.

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

My Lords, I refer the House to my interests, as set out in the register. I will follow up on the Question of the noble Baroness, Lady Scott of Needham Market. Rural areas, communities and local authorities face a range of problems, such as a reliance on private cars, a lack of charging points and distance from the decarbonisation of industrial clusters. Does the noble Lord agree that the specific, unique issues of the countryside need addressing to ensure that no one is left behind? If he does—he said that the Government do not plan to have a separate strategy—what is he doing to meet this challenge?

[Lord Greenhalgh (Con)]

The Government are providing many mechanisms to support rural areas. I point to the community energy projects, through the rural community energy fund, which is a £10 million fund to support community-run projects in England that benefit the transition to net zero. Net zero is half the story; adaptation to the consequences of climate change is equally important, and the Government are committing £2.8 billion in a six-year capital investment plan to reduce flood and coastal erosion risk.

[Baroness Tyler of Enfield (LD)]

My Lords, local authorities are critical to achieving the Government’s net-zero target, but will struggle to do so without sufficient resources. Some 95% of local authorities have said that funding is a barrier to them tackling climate change. The Climate Change Committee recommended increased resourcing for local government as a priority. Can the Minister say whether and when the Government intend to give local authorities new capital-raising and revenue-raising powers to support the transition to net zero, as recommended in the SMF report?

[Lord Greenhalgh (Con)]

My Lords, I point out that the Government have committed £1.2 billion for local action on climate change. There are currently no plans to devolve additional tax-raising powers, but the Treasury will keep this under review.

[Lord Berkeley (Lab)]

My Lords, this follows the questions of my noble friend Lord Kennedy and the noble Baroness, Lady Scott of Needham Market, on the report that is the subject of this Question. Does the Minister agree that there is an enormous difference in the levelling-up agenda because there are problems in the north, particularly the north-east, where 90% of new-build houses are still heated by gas? Where is the policy to convert this to something more meaningful and at lower cost, whether electricity or hydrogen, and what are the Government doing about it? This will be a serious problem. London seems all right, but the rest of the country is going to suffer serious extra costs as a result.

[Lord Greenhalgh (Con)]

My Lords, it is right that it is easier for London to hit the target of net zero by 2050, given its starting point. But levelling up is about improving living standards and unleashing enterprise and growth across all parts of the UK, and spreading opportunity. It is important to see how the £4.8 billion levelling-up fund is allocated to deal with the noble Lord’s point, but we also need to leverage private sector funding. Our estimates are that the fund will leverage substantial private sector income to achieve the green revolution that we all want.

[The Lord Speaker (Lord McFall of Alcluith)]

My Lords, all supplementary questions have been asked and we now move to the next Question.

Buildings: Cladding

Lord Greenhalgh Excerpts

Thursday 28th October 2021 Lords Chamber

[Baroness Pinnock (LD)]

My Lords, I beg leave to ask the Question standing in my name on the Order Paper. In doing so, I draw attention to my relevant interests in the register.

[The Minister of State, Home Office and Department for Levelling Up, Housing & Communities (Lord Greenhalgh) (Con)]

We have provided £5.1 billion to remediate cladding in high-rise residential buildings, targeting funding at buildings we know to be at greatest risk of fire spread.

[Baroness Pinnock (LD)]

Despite the Minister trying to blind us again with statistics, the hard fact is that thousands of leaseholders are living in limbo, suffering anxiety and in despair. Some are even being held to ransom; they are being asked to sign a commitment to pay many tens of thousands of pounds for the remediation of building safety defects that are exposed when cladding is removed. No cladding work is done until they sign that bit of paper. Leaseholders are being held to ransom; they cannot move and they cannot get anything done. Surely the Minister will agree with me that this cannot be right. What is he going to do about it?

[Lord Greenhalgh (Con)]

My Lords, I mentioned only one statistic; I do not think that one statistic or one figure—£5.1 billion—is blinding anybody. I point to the progress: despite a pandemic, the ACM funding of some £600 million has seen around 16,500 homes being fully remediated. That is an increase of 4,700 since the end of last year. The new building safety fund, topped up so that the total remediation amounts to £5 billion, is estimated to cover around 65,000 homes in high-rise blocks. So there are many tens of thousands of leaseholders who are benefiting from government funding.

[The Lord Bishop of Bristol]

Can the Minister update the House on the progress of the capped low-interest scheme for buildings with defective cladding under 18 metres? Can he clarify whether a pilot scheme will, as previously hoped, be functional by the end of the year?

[Lord Greenhalgh (Con)]

My Lords, we have not made any further announcements about the details of the way we want to support leaseholders in medium-rise blocks. The new Secretary of State is looking very closely at how we can best protect leaseholders in these buildings from unaffordable costs. In the vast number of buildings, there is no need for wholesale, expensive remediation, as the recent expert committee, led by Dame Judith Hackitt, pointed out.

[Lord Newby (LD)]

My Lords, last week the Minister said that details of the residential property developer tax would be announced yesterday, and that the figure he had given—the receipt of £2 billion over 10 years—was the absolute minimum. Yesterday, the Chancellor announced a rate of tax, but I am unaware that he gave an estimate of how much money would be raised. Could the Minister say what the Government’s current estimate is of the amount that that tax will raise? Secondly, the Chancellor said yesterday that the tax will be used to fund the £5.1 billion of which the Minister is so proud. Is it really the case that this tax will not benefit a single additional leaseholder?

[Lord Greenhalgh (Con)]

My Lords, we recognise the need to get those who contributed greatly to the crisis that we find ourselves in to make a contribution. This is just one of the ways we are doing this. It was announced that the residential property developer tax would be levied on developers with profits over £25 million, at a rate of 4%. The estimates from the Treasury are that that will bring in at least £2 billion. That is the commitment over 10 years. We also have the gateway 2 levy, which will raise funding as well. This will also contribute towards the situation that leaseholders find themselves in.

[Lord Thurlow (CB)]

The principal difficulty with this cladding issue is cost. Why do the Government not take the most obvious step, and pursue the French company that manufactured the faulty cladding in the first place? It is a company that seems to be burying its head in the sands of Paris.

[Lord Greenhalgh (Con)]

My Lords, there is no doubt that a number of groups, beyond developers, have contributed to the cladding crisis, not least the construction product manufacturers—the noble Lord mentioned the French manufacturer—and many other professionals who did not build these building to the standard of building regulations at the time. We are looking, with fresh eyes, at how we can hold them to account.

[Baroness Blake of Leeds (Lab)]

My Lords, I refer to my interest as laid down in the register. We have, on a daily basis, yet more distressing personal experience from the fallout of the cladding scandal—I am sure all of us would agree. We have heard quite a lot about numbers today but, if I could go back, the Government’s announcement of £5.1 billion in yesterday’s Budget to deal with the cladding scandal was simply a re-announcing of policy, as the Minister suggested. An additional £2 billion is estimated to come from the developer tax, but would the Minister agree that this is only a drop in the ocean, given the estimates I have heard that this could cost up to £50 billion? Why are the Government not doing more to insist that innocent leaseholders should not be left with the bill?

[Lord Greenhalgh (Con)]

The Government are looking carefully at the prevalence of buildings that require substantial remediation of cladding which causes the spread of fire, but the £5.1 billion is not the only measure that the Government are taking. It should be noted that the Building Safety Bill introduces new measures that will legally require building owners to prove that they have tried all routes to cover costs. If this does not happen, leaseholders will be able to challenge these costs in the courts. We are also extending the Defective Premises Act from six years to 15 years retrospectively. These are all measures designed to help protect leaseholders.

[Lord Goddard of Stockport (LD)]

Minister, the £5 billion is welcome, to rectify this terrible problem, but the actual bill is £15 billion. I think that, when Ministers announce money, they should announce the full picture. The Minister states that the Building Safety Bill will address the protection of leaseholders from paying costs to make their buildings safe, but the Bill fails to do that—it does not say that that will happen. In the light of the Budget yesterday, is the Minister in favour of another museum in Liverpool for The Beatles, is he in favour of cheaper champagne for all, or is he in favour of safer homes for everybody? I think I know which side of the argument this side of the House sits on.

[Lord Greenhalgh (Con)]

I thank the noble Lord for his colourful question. Of course we want to do all we can to support leaseholders. That is why we are taking the measures that I have already outlined.

[The Lord Speaker (Lord McFall of Alcluith)]

The noble Baroness, Lady Jones of Moulsecoomb, is not present. That concludes Oral Questions for today.

Land Use Framework

Lord Greenhalgh Excerpts

Thursday 28th October 2021 Lords Chamber

[The Minister of State, Home Office and Department for Levelling Up, Housing & Communities (Lord Greenhalgh) (Con)]

I thank noble Lords for their contributions to this debate. I did not realise that the first thing I would need to address is how to pronounce the acronym for my department. To my knowledge, it is not known as the department for “LUHC”; we tend to call it “DLUHC”. Some other people have called it the “DLHC”, but I think “DLUHC” is winning the day at the moment.

I thank the noble Lady, Baroness Young of Old Scone, for moving the Motion on this topic. I have listened with great interest to the various points raised and will address them in turn. I also pay tribute to the noble Baroness for her continued scrutiny through her roles in the Food, Farming and Countryside Commission, the Woodland Trust, the House of Lords Environment and Climate Change Committee and the Rural Economy Committee. She is certainly keeping herself extremely busy.

I thank the noble Baroness for her valuable work in ensuring that planning is considered alongside other infrastructure, landscape and agricultural land processes. There can be no doubt that these are all important considerations when making decisions on land use. The Government agree that a strategic approach to planning—alongside infrastructure, environmental, landscape and agriculture considerations—is absolutely essential. That is why we have a National Planning Policy Framework, which provides a streamlined, cohesive framework within which locally prepared plans for housing and other development can be produced. It must be taken into account by local authorities in preparing their development plans and it is a material consideration in planning decisions.

The framework supports a flexible approach that can be tailored to the specific nature and extent of the strategic issues facing each local area. It is complemented by a number of other measures right across government that set out planning, infrastructure, landscape and agricultural processes. This includes the Nationally Significant Infrastructure Projects regime, which applies to major infrastructure. It ensures that the environmental benefits or disbenefits, and the views of local communities and local authorities that may be affected, are taken fully into account by the Secretary of State, who makes decisions on whether to grant development consent.

I also know how important it is to local communities that new housing development is supported by the provision of infrastructure that benefits both new and existing residents. Contributions from developers play an important part in delivering the infrastructure that new homes and local economies require. My colleagues in Transport have set out a number of important measures to support the delivery of important transport infrastructure. England’s long-term National Bus Strategy, Bus Back Better, sets out a bold vision for bus services across the country, and the transport decarbonisation plan is the biggest piece of work we have ever done to tackle greenhouse gas emissions from transport.

We are confident that our planning system can and will enable multifunctional land use for the benefit of the environment, without needing to completely tear up the rule book and use a framework for all land uses.

I wholeheartedly agree with the statements made by my noble friend Lord Goldsmith when this topic arose in your Lordships’ House in September. It is critical that we take a long view on our natural wealth and ecosystems as part of our strategic approach. I echo his message that the Government are already taking a strategic approach to land use, particularly when it comes to environmental aims.

Again, I thank your Lordships for your contributions today and will now endeavour to respond to the points raised. I start by saying what a tremendous maiden speech my noble friend Lord Harlech gave. He will certainly grace this House for many years to come—far longer than I will, for sure—and will make some powerful contributions. I appreciated his comments about the importance of digital connectivity in rural settings.

The noble Lord, Lord Whitty, mentioned that today a memorial service for the Earl of Selborne is taking place. I got to know him when I was leader of Hammersmith and Fulham Council and I asked him whether he would be able to conduct a commission for me. I know what a champion of the environment he was, in particular pushing the case for sustainable urban drainage as an alternative solution to grey infra- structure. He is a great loss to this House and someone I admired greatly.

The noble Baroness, Lady Young of Old Scone, spoke about the current mechanisms we have in place to integrate decisions across all land uses. What we are hearing is a call for integration, and we are working with other departments. DLUHC is working with Defra and BEIS to ensure that our environmental goals are achieved in an integrated and efficient way. Trade-offs are being carefully managed and the Government are focused on achieving multifunctional land use.

I say in response to the noble Baroness, Lady Jones of Whitchurch—this point was also made by the noble Lord, Lord Whitty—that I simply do not agree that the balance has tipped entirely so that powers are solely in the hands of developers. As someone who spent six years as a council leader looking to grow my borough, I simply do not accept that. We have recently reaffirmed that local authorities remain very much in the driving seat in designating, protecting and enhancing land use and protecting the green belt to prevent urban sprawl and encroachment on to greenfield and around towns and cities.

The noble Baroness, Lady Young, also raised the question of how local nature recovery strategies relate to the planning system and decisions on agricultural land. Our approach to spatial prioritisation is intended to integrate with the local nature recovery strategies. Doing so will create policy coherence for land managers on the ground, as well as enabling environmental land management schemes’ funding streams from schemes that reward farmers and land managers for producing environmental benefits to dovetail with other funding streams such as biodiversity net gain.

A number of noble Lords—among them, the noble Lord, Lord Whitty, and the noble Baronesses, Lady Young of Old Scone, Lady Boycott, Lady Bakewell of Hardington Mandeville and Lady Bennett of Manor Castle—called for a new land use framework or a new land use strategy. In fact, the noble Baroness, Lady Bennett, offered to send over a draft strategy from the recent Green Party conference. I am sure our officials will be happy to take a closer look at that. Indeed, my noble friend Lord Deben called for another ministry, for land use. I am sure we will have to work out the acronym before we create another ministry, but that is a central thing that all the speakers were calling for.

The Government are already doing much to ensure a strategic approach to land use across England. They are also reviewing what more might be needed following the excellent food strategy report led by Henry Dimbleby. We have made a commitment to answer the recommendations within six months, so your Lordships will have to wait a while for a full response.

The noble Lord, Lord Carrington, and my noble friend Lord Deben mentioned that ELMS will not be available until 2024, and that we will not know what is in it until then. It is fair to say that part of ELMS will be rolled out before 2024. We have been conducting tests since 2018, which will continue throughout the transition period. We plan to start a phased rollout of the local nature recovery scheme from 2023, so by 2024 we will have fully introduced our three new environmental land management schemes.

[Lord Deben (Con)]

My Lords, this does not seem to me to have anything to do with the timetable of farmers. Farmers have to plant and then, when the harvest comes, plant again. This means that they will have no certainty about what to do when one system is phased out and the other is only half in. That is what the EFRA committee said and that is what we are trying to drive home to the Government: it is a question of the harvest, which the Government cannot change—that is the way the world works.

[Lord Greenhalgh (Con)]

I recognise that, as we phase out the old system and bring in the new, we need to work on proper communication, so that our farmers have that framework. I am sure my colleagues in Defra will continue to ensure that there is a clear direction of travel. I take my noble friend’s point.

The noble Baroness, Lady Boycott, raised the need for a guide to how ELMS are being rolled out. We published the agricultural transition plan in November 2020, and a progress update in June 2021, setting out a timeline for how ELMS are being rolled out; we will be publishing more information later this year. I hope that also addresses my noble friend’s overarching point.

The noble Baronesses, Lady Boycott and Lady Jones of Whitchurch, and the noble Lord, Lord Carrington, raised the importance of having sufficient land for food. Indeed, the noble Baroness, Lady Boycott, raised the question of how food is produced. I know she is an absolute expert on this, as the former chair of the London Food Board when we both served the then mayor in City Hall. The Government agree that there is an urgent need to protect the natural assets that are essential to food production in this country. Under our new environmental land management schemes, farmers, foresters and other land managers will be paid for delivering environmental public goods. ELMS will support farmers to increase productivity and enable the more efficient use of land. The farming investment fund and the farming innovation programme will support investment in equipment, technology and infrastructure.

The noble Baronesses, Lady Thornhill and Lady Jones of Whitchurch, and the noble Lord, Lord Whitty, all pressed for a further update on planning reforms. It is clear that our planning system needs modernisation, to be one that embraces digital technology, benefits communities and creates places that we are proud of. I know that some aspects of the proposals have attracted great debate, so it is unsurprising that we are taking some time to review the reforms and listen to voices from across the sector. We will announce the next steps in due course. However, we are clear that the reforms must address the priorities of this Government: levelling up, delivering infrastructure, supporting communities and delivering the homes that we need in the places where we need them.

I point out to the noble Baroness, Lady Thornhill, that I think you can achieve more homes without necessarily having to build a future battery of high rises. It is quite obvious that we can learn from the Victorians, who used their pattern books and developed high-density homes—particularly mansion blocks, such as the one where I grew up as a child, in Fulham. They often had between 750 and 900 habitable rooms per hectare. They are not that tall but they are dense, and provide decent accommodation for many families. Housing typology does not always mean that you have to revert to the high-rise.

In response to the noble Baroness, Lady Bakewell of Hardington Mandeville, there have been a number of housing secretaries, but I would point out that the current one, Chris Pincher, has been in office longer than I have. He had been there for a month before I was appointed a Minister in the February reshuffle of 2020, so we have already gone a good 18 months with some continuity. I am sure he will continue to serve for some time to come, so we have continuity in place.

I assure the noble Baroness that the Government already take a strategic approach to land use that covers urban and rural development. However, as the processes that I have outlined today cut right across multiple policy areas, it is only right that they remain separate and that we keep localism at the heart of our approach.

I thank the noble Baroness, Lady Young of Old Scone, once again for the topic of the debate. As someone who grew up in a city environment, I have certainly learned a lot about agricultural land-use planning. I thank noble Lords for all their expert contributions, and I look forward to continuing to work with this House on such important matters.

Public Services

Lord Greenhalgh Excerpts

Tuesday 26th October 2021 Lords Chamber

[Lord Wallace of Saltaire]

To ask Her Majesty’s Government what plans they have to review (1) the comparative costs, and (2) the effectiveness, of the provision of public services in England by (a) local authorities, and (b) private contractors.

[The Minister of State, Home Office and Department for Levelling Up, Housing & Communities (Lord Greenhalgh) (Con)]

Local authorities are required to support continuous improvement through the delivery of their functions under the Local Government Act 1999. They decide how to run services. Services can be outsourced, or delivered jointly with another authority, provided that quality and value for money are maintained. As public bodies, they are subject to the Public Contracts Regulations 2015. Central government provides funding, improvement support and overall oversight. There are no current plans for a central review.

[Lord Wallace of Saltaire (LD)]

My Lords, this Question was prompted by the Government’s choice on test and trace to turn to multinational companies and expensive consultancy firms instead of making use of the expertise of local government and local public health officers. But it applies more widely: after 50 years of outsourcing, and having acquired experience on outsourcing local transport, probation services and others, will the Government not consider that the time has come to conduct an independent inquiry—or would they prefer an inquiry to be undertaken by an ad hoc Lords committee, for example?

[Lord Greenhalgh (Con)]

I think the specific question relates to test and trace; I am sure that is part of the review of our response to the pandemic. But as a former local authority leader, I agree with the noble Lord’s comments about the experience that local government has in the competitive tendering of services.

[Baroness Pinnock (LD)]

My Lords, given my local government interest, I know it is not how services are provided but if services can be provided. For example, social care—a service provided by both public and private organisations—requires an extra £2 billion a year. Does the Minister agree with the Conservative County Councils Network, which says that council tax will need to rise by 8% each year so that basic social care needs can be met?

[Lord Greenhalgh (Con)]

My Lords, it is for every council to decide what level of council tax it needs to set. Obviously, there is a latitude to increase council tax by up to 2% to help support the additional social care costs, but the Government have set out their plan to increase funding to social care, as the noble Baroness knows.

[Lord Young of Cookham (Con)]

My Lords, many of us who remember the days when local authority direct labour organisations had a monopoly on public services such as refuse collection welcomed the decision in the 1980s to open these services to competition—a decision that has not been reversed since. Given all the pressure on local authorities today, is now the right time to encourage them to invest manpower and capital to re-enter this market?

[Lord Greenhalgh (Con)]

I agree with my noble friend. There has been a tremendous success in the competitive tendering of services that has driven down cost and increased value for money for the taxpayer, and also seen an improvement in the delivery of local services. It is not surprising that £64 billion is now paid out by local government to private companies to deliver those services. Although local authorities have the powers to trade and charge, they should think very carefully before they decide to move back to the situation before the introduction of competitive tendering.

[Baroness Chakrabarti (Lab)]

Does the Minister think there are any features of some services that make them completely unsuitable for outsourcing? I am thinking of life and death matters such as firefighting or test and trace; extremely vulnerable service users in prisons or secure academies; or natural monopolies such as polluting water companies.

[Lord Greenhalgh (Con)]

As the Fire Minister, I certainly recognise the importance of the delivery of the vast majority of our fire and rescue services through people who are currently employed by local government. As a former council leader, I know there is a whole host of statutory areas where you would seek to deliver services through people who are directly employed. But increasingly there are areas where you can drive down costs through competitive tendering. That also gives in-house services the opportunity to compete with the market to see whether they can deliver those services more effectively. Competition does drive down costs and increases the quality of the services provided.

[The Lord Speaker (Lord McFall of Alcluith)]

The noble Lord, Lord Flight, is not present, so I call the noble Baroness, Lady Blake of Leeds.

--- Later in debate ---

[Baroness Blake of Leeds (Lab)]

My Lords, could I point to a case in Shropshire? The Conservative-run council has spent £1,000 a day on a pothole consultant. Does the Minister believe that this private contractor represents value for money?

[Lord Greenhalgh (Con)]

I am not going to get into the use of consultants by a particular council, irrespective of the administration currently in control. A number of councils, both Conservative and Labour, have been subject to Secretary of State interventions because they have failed to fulfil their best-value duties. I point to the most recent intervention in Liverpool City Council, where, sadly, we have had to step in.

[Baroness Bennett of Manor Castle (GP)]

My Lords, I declare my positions as a vice-president of the LGA and the NALC. Would the Minister agree that, in this age of shocks, when resilience is becoming more and more of a crucial issue—we addressed this in the last Question, on HGV drivers—eventually, if things go wrong and companies collapse, like Carillion, or fail to deliver services, as happened with the green homes grant, the Government have to step in and are always the final service of last resort? Surely we should stop pumping public money into private hands—taking all those risks of collapse that we have seen so often with private companies—cut out those extra costs and simply allow local governments to deliver services for local people?

[Lord Greenhalgh (Con)]

My Lords, it will not surprise you that I do not agree with that. Some £64 billion-worth of money is being spent by local government on the delivery of very efficient services through the private sector, but you have to be very careful about how you engage. There are plenty of examples where local authorities have not used competitive tendering but have chosen to enter into partnerships, which have had tragic consequences in the last year because of the pandemic. So I encourage local authorities to be judicious, fulfil the guidelines that are supplied around procurement, go through sensitive competitive tendering and check the creditworthiness of those whom they choose to bring on board.

[Viscount Hanworth (Lab)]

Many of the firms to which the functions of local authorities have been outsourced are motivated by considerations other than public service: the profit motive is dominant. I am aware of one firm, to which the traffic and parking services have been outsourced, that has been issuing spurious penalty charge notices for traffic offences. Their operatives are working under an incentive scheme. Their supposition is that many people will automatically pay the penalties, fearing that, if they do not, the charges will be doubled and they may be taken to court. Do the Government have any desire or means to address such abuses?

[Lord Greenhalgh (Con)]

My Lords, revenue from parking is ring-fenced, and most local authorities would never incentivise any staff who are doing this to start to fine—

[Lord Cormack (Con)]

If you believe that, you will believe anything.

--- Later in debate ---

[Lord Greenhalgh (Con)]

As someone who spent 16 years in local government, I certainly know that we ensured that we never incentivised our staff in relation to the volume of tickets and the revenue that they could collect. It is important to increase productivity and to have sensible oversight of these matters.

[Baroness Uddin (Non-Afl)]

My Lords, on what the Minister just said, as a former councillor I know that such incentives do apply in some local councils. In any case, in any likely future review of government strategic effectiveness in the allocated cost of public services, will the Minister consider ring-fencing relevant funds for some specific services, such as those for domestic violence, social care for people living with disabilities and mental health conditions, and drug services for young people? Secondly, with regard to the private sector, will the Minister ensure that all contractors are fully cognisant of, and compliant with, our ambitious equality standards, including on their senior management and boards?

[Lord Greenhalgh (Con)]

My Lords, a significant amount of the councils’ budget is already ring-fenced, including adult social care. It is for local councils to determine how they spend their resources to ensure that they meet local needs. The core spending power in the most recent local government settlement increased from £49 billion to £51.3 billion in this financial year. The ring-fencing of budgets can have the deleterious effect of forcing councils to do something that is not necessarily in the immediate interests of their local residents.

[The Lord Speaker (Lord McFall of Alcluith)]

My Lords, all supplementary questions have been asked, and we now move to the next Question.

Rural Poverty

Lord Greenhalgh Excerpts

Monday 25th October 2021 Lords Chamber

[The Lord Bishop of St Albans]

To ask Her Majesty’s Government, further to the report by the Rural Services Network Towards the UK Shared Prosperity Fund, published in June, what plans they have accurately to reflect in-work rural poverty in future funding allocation mechanisms.

[The Minister of State, Home Office and Department for Levelling Up, Housing & Communities (Lord Greenhalgh) (Con)]

The UK shared prosperity fund will help us to level up and create opportunity across the United Kingdom in the places most in need and for people who face labour market barriers. The Government are working closely with local areas, including rural communities, to assess how the UK shared prosperity fund can best target places in need.

[The Lord Bishop of St Albans]

I thank the Minister for his reply. Recent research by CPRE suggested that just 40% of young people living in rural areas expected to remain there in the next five years. They cited affordable housing, connectivity, rural transport and rural employment as the factors driving them out. If Her Majesty’s Government are to deliver on the levelling-up agenda between urban, rural and suburban, is it not time for them to deliver on the rural strategy promised in the response to the Select Committee report Time for a Strategy for the Rural Economy?

[Lord Greenhalgh (Con)]

My Lords, the Government are committed to addressing the issues that the right reverend Prelate raises. For instance, the levelling-up fund of some £4.8 billion will focus specifically on the issues around transport connectivity, regeneration and ensuring that we see economic recovery, whereas the shared prosperity fund will deal with the issues around unemployment, skills, productivity and other labour market barriers.

[Baroness Blake of Leeds (Lab)]

My Lords, we hear on a daily basis about the impact of the rising cost of living but not so often about the very real problem of rural poverty. Levels of poverty in rural communities are worsened by the high cost of living that people in these areas are often faced with. Last year the Guardian reported that people in isolated rural areas spent an average of £71 a week on food compared with £61 a week in cities, and I am sure those figures have worsened. Could the Minister please inform us what assessment the Government have made of the impact of the increasing cost of living on people in rural towns, villages and hamlets, especially with the added increase in the cost of fuel?

[Lord Greenhalgh (Con)]

My Lords, we recognise the impact of the escalating cost of living, but we have set out a very clear plan around how to tackle that in both rural and urban areas. More details around how the money will be spent will be given in the forthcoming spending review announcement later this week.

[Baroness Bakewell of Hardington Mandeville (LD)]

My Lords, the report referred to by the right reverend Prelate does not accurately reflect the impact on young people of living in a rural area. While in full-time education they have their friends around them, but at the weekends and in school holidays the picture is different. Those living in low-income families may not have access to a car, and there is no bus service that goes anywhere near them. Why are young people not a major consideration in the Government’s levelling-up agenda?

[Lord Greenhalgh (Con)]

I do not recognise that young people are being missed out of the levelling-up agenda. We have to recognise that, in terms of capital investment in infrastructure including transport, this is the largest commitment that we have seen for a considerable period of time. Specifically, the levelling-up fund will look at improving transport connectivity as part of the way that the fund has been designed.

[Baroness McIntosh of Pickering (Con)]

Will my noble friend join me in congratulating the North Yorkshire Rural Commission on its excellent work? Will he and the Government address the issue of those aspects of rural poverty for those in work on zero-hours contracts who are struggling to make ends meet and have to rely on food banks to eat and on benefits to heat their homes?

[Lord Greenhalgh (Con)]

I thank my noble friend for her insight into the local challenges faced by rural areas. That is very helpful as we consider our approach to targeting the upcoming UK shared prosperity fund. That fund will help to level up and create opportunity right across the United Kingdom in places most in need and for people who face labour market barriers. We will set out more detail, as I have mentioned before, in the upcoming spending review.

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

My Lords, I refer the House to my interests as set out in the register. First, has the Minister actually read the report referred to in the Question? Secondly, addressing in-work poverty is a subject that should concern us all. Taking that point, does the Minister accept that more rural locations have had their needs obscured and been disadvantaged by recent funding rounds, and would benefit from a fairer distribution of national funds?

[Lord Greenhalgh (Con)]

I have to declare to the noble Lord that we have a phenomenal army of policy officials who have dissected the guts out of that report. I am happy to acknowledge that I have read a summary from my officials rather than the report itself.

I would point out that of the two funds that we have been talking about, the UK shared prosperity fund, which has been piloted through the community renewal fund, targets rural areas in design—to the extent that 29% of those have a higher index of local resilience and are therefore being focused on and being captured, compared with a lower percentage of 22% for urban areas—so we are seeing a great focus on dealing with rural poverty, while of course the levelling-up fund is designed with the different outcomes in mind.

[Lord Holmes of Richmond (Con)]

My Lords, what are the Government planning to do to increase the extent and pace of the rollout of broadband and 5G to rural areas, and in terms of its reliability and capacity once the service is in? Does my noble friend agree that connectivity is critical for rural areas’ economic, social, psychological and community well-being?

[Lord Greenhalgh (Con)]

I thank my noble friend for raising the important issue of digital connectivity. The Government have made it a priority to address nationwide gigabit connectivity as soon as possible. We are working with the industry to target a minimum of 85% gigabit-capable coverage by 2025 and to get to as close to 100% as possible. The Government’s £5 billion Project Gigabit is supporting the rollout of gigabit-capable broadband in hard-to-reach uncommercial areas. Obviously, more details may be outlined in the spending review.

Prime Minister: Meeting with First Ministers

Lord Greenhalgh Excerpts

Wednesday 20th October 2021 Lords Chamber

[Lord McConnell of Glenscorrodale]

To ask Her Majesty’s Government when the Prime Minister will next meet the First Ministers of the United Kingdom’s devolved Governments, and what they will discuss.

[The Minister of State, Home Office and Department for Levelling Up, Housing & Communities (Lord Greenhalgh) (Con)]

The Prime Minister met the First Ministers on Monday to discuss the next steps of Covid recovery and the upcoming COP 26 summit. He expects to meet them again early next year.

[Lord McConnell of Glenscorrodale (Lab)]

My Lords, next Wednesday the Chancellor will present his annual Budget to Parliament. I understand that that Budget was not on the agenda, despite some economic references in the items discussed on Monday at the meeting with the First Ministers. After 22 years of the devolution settlement, which has since expanded the tax-raising and tax-varying powers of the Scottish Government and others, surely it is time for Budgets to be prepared in the United Kingdom on a slightly different basis, with some consultation and engagement in advance with all levels of government, including the devolved Governments.

[Lord Greenhalgh (Con)]

I know that the intergovernmental review is specifically looking at arrangements for the development of Budgets. I point out that there have been a number of meetings between the UK Government and the devolved Governments in the run-up to the spending review.

[Baroness Hayter of Kentish Town (Lab)]

My Lords, DIT Ministers are refusing to engage with the devolved Governments on trade negotiations, other than on very specific devolved competences. However, major trade deals, especially those dealing with sectors such as agriculture, food processing, energy or manufacturing, can have a major impact on devolved territories, so will the Government undertake to involve the devolved Governments fully on any issues impacting on their economies in trade deals and not simply on areas of devolved competences?

[Lord Greenhalgh (Con)]

My Lords, the model of international engagement is also something that the intergovernmental review is looking to iron out so that there is effective engagement. Engagement on international matters has now been embedded in the inter-ministerial group for trade and EU issues as well as in the inter-ministerial standing committee.

[Lord Bruce of Bennachie (LD)]

My Lords, in engagement with the devolved authorities, the Government must respect the devolution settlement and the devolved authorities need to recognise that we have a Government of the whole United Kingdom. Is it possible to do that with equal respect to both parties?

[Lord Greenhalgh (Con)]

Absolutely, there needs to be equal respect. That is why there has been a major review of how we ensure effective working between the devolved Governments and the United Kingdom Government. It has taken some time to conclude.

[Baroness Eaton (Con)]

Will my noble friend the Minister inform the House of what progress the intergovernmental relations review has made since the March progress update and why it has taken so long to conclude the review?

[Lord Greenhalgh (Con)]

My noble friend is right that it is not a fast process, but we are now in a position to conclude. Developing a package that best reflects each devolved Government’s views can be the result only of detailed joint analysis by the UK Government and the devolved Governments.

[Lord Campbell of Pittenweem (LD)]

My Lords, will the Minister undertake to remind the Prime Minister to remind in turn the First Minister of Scotland of the vital contribution to the Scottish economy of United Kingdom defence expenditure, in particular the submarine base at Faslane, the Type 26 frigates now being built on the Clyde and now the Type 31 frigates being built at Rosyth?

[Lord Greenhalgh (Con)]

I will undertake to do that. Of course, the Prime Minister is now also the Minister for the Union, and I am sure that he, as well as my right honourable friend who is now the Minister for Intergovernmental Relations, will use every opportunity to remind the First Minister of that important defence contribution.

[Lord Davies of Gower (Con)]

During the Covid pandemic, the Welsh Labour Government at Cardiff Bay have received substantial additional funding—indeed, billions—through the Barnett formula and other funding. Does the Minister agree that, when they next meet, a discussion of the reluctance on the part of the Welsh Government to spend that money in support of the ailing Welsh national health system and of Welsh businesses would be very appropriate, as well as an additional discussion as to why they are reluctant to hold an inquiry into their performance in dealing with the pandemic in Wales?

[Lord Greenhalgh (Con)]

My Lords, it is important to recognise that through the Barnett formula a considerable amount of money has been made available to all the devolved Governments—some £28.1 billion. We are happy to continue to engage in a productive way with the Welsh First Minister and others on how best to recover.

[Baroness Stuart of Edgbaston (CB)]

My Lords, when the Prime Minister next meets the First Ministers in the new year, I hope it will be a convivial and friendly gathering. I hope that all in the room will reflect on how they responded to Covid and to some of the backlogs in education and health, and that each part will find that they have done some things better and others worse. Could we encourage them to compare their experiences and learn from each other so that the whole of the United Kingdom will benefit from some of the divergences of the four units?

[Lord Greenhalgh (Con)]

My Lords, that is absolutely an opportunity to learn. The pandemic will probably have been the most memorable event in my lifetime, as someone who was born well after the Second World War, and it is important that we learn the lessons from divergence and different approaches so that we are better prepared for the next time, should this ever happen again.

[Baroness Blake of Leeds (Lab)]

My Lords, I would like to extend the debate to the devolved entities in England. Earlier this year, PoliticsHome reported that some metro mayors are growing increasingly frustrated with the Government’s favouritism towards certain mayors by way of, for example, meetings with the Prime Minister or the Chancellor and access to officials. What steps have the Government taken to increase engagement with all metro mayors regardless of their party affiliation?

[Lord Greenhalgh (Con)]

My Lords, I am certainly aware of a number of meetings that have taken place— I have had numerous meetings with the Mayor of Manchester and the Mayor of the West Midlands, and many with the Mayor of London. Of course, we recognise the importance of effective engagement. It is through effective engagement with our mayors that we can support each other so that we recover from this pandemic.

[Lord Dodds of Duncairn (DUP)]

My Lords, one area for profitable discussion would be how we can ensure that all countries and regions of the United Kingdom can benefit from growing economic prosperity. As part of that discussion, would it not be useful to discuss how we can prevent Northern Ireland being placed at a severe competitive disadvantage compared with the other countries in the UK by the provisions relating to state aid in the Northern Ireland protocol, something that does not get much coverage but which is vital? Can we ensure that the Government’s proposals in their Command Paper in July are implemented as quickly as possible? That would help to redress this problem.

[Lord Greenhalgh (Con)]

My Lords, the noble Lord is obviously more expert than me on the specifics, but it is important that the state aid rules apply fairly and equally across all our four nations.

[Lord Harries of Pentregarth (CB)]

My Lords, given the somewhat frayed cords that hold the nations of the United Kingdom together, are the Ministers of the devolved Governments satisfied that they have a fair voice in drawing up the agenda of these meetings? Are the issues that they want to discuss being discussed?

[Lord Greenhalgh (Con)]

The noble and right reverend Lord should understand that there is a three-tiered form of engagement: there are portfolio-level meetings, cross-cutting issues and then the Prime Minister meeting with First Ministers and the Deputy First Minister. The sheer volume of meetings indicates that there are plenty of fora to ensure that we deal with the issues at the appropriate level of engagement, whether at the bottom tier or in meetings with the Prime Minister.

[Lord Foulkes of Cumnock (Lab Co-op)]

My Lords, I would like to suggest something for the agenda for the next meeting. Could the Minister ask the Prime Minister—nicely—to put on the agenda ways of ensuring that money allocated by the Treasury for devolved areas is spent properly on those areas, not improperly on reserved areas?

[Lord Greenhalgh (Con)]

There is a clear political point there, but also a practical point. We must spend money for its intended purposes, which is why we have bodies such as the National Audit Office to ensure that taxpayers’ money is properly spent. We need to look into how we can have a similar regime for devolved Governments.

[The Lord Speaker (Lord McFall of Alcluith)]

My Lords, all supplementary questions have now been asked.

Regulation of Property Agents Working Group

Lord Greenhalgh Excerpts

Wednesday 20th October 2021 Lords Chamber

[Baroness Hayter of Kentish Town]

To ask Her Majesty’s Government what plans they have to implement the recommendations of the final report of the Regulation of Property Agents Working Group, published on 18 July 2019.

[The Minister of State, Home Office and Department for Levelling Up, Housing & Communities (Lord Greenhalgh) (Con)]

My Lords, I declare my residential commercial property interests as set out in the register. The Government are committed to promoting fairness and transparency for home owners and renters and making sure that consumers are protected from abuse and poor service. This commitment includes raising professionalism and standards among property agents. The Government are considering the recommendations from the independent working group of the noble Lord, Lord Best, on property agents and we welcome the work by the noble Baroness and the industry itself to improve best practice across the sector.

[Baroness Hayter of Kentish Town (Lab)]

I thank the Minister for that. As he suggests, we now have cross-industry and consumer agreement on codes of practice for all residential agents covering letting sale and block management. The whole industry and its users want to see the report by the noble Lord, Lord Best, implemented and the regulator set up. Therefore, in addition to the words of comfort that the Minister has given us, can he go one further and give us a commitment to implement that report for the sake of all people who rent their houses?

[Lord Greenhalgh (Con)]

My Lords, I am not able to go any further but I know that the final code is ready, and that is a springboard to action. I am looking forward to engaging with the noble Baroness in due course.

[Lord Flight (Con)]

I congratulate the noble Lord, Lord Best, and his working group on a most thorough report. In its 56 pages, it makes recommendations on a model for an independent property agent regulator, for a single mandatory and legally enforceable code of practice for property agents, and on clarifying processes and charges for leaseholders. Do the Government have any material criticisms of the report to date?

[Lord Greenhalgh (Con)]

My noble friend should note that the Government welcome the final report of the independent Regulation of Property Agents Working Group, chaired by the noble Lord, Lord Best. The Government have been clear about the need to raise professionalism and standards among property agents, which is why we tasked a group of experts from across industry, led by our highly experienced chair, to advise on the best way to secure this objective. The working group’s report and recommendations are an important development towards ensuring that all consumers are treated fairly and all agents work to the same high standards.

[Lord Best (CB)]

My Lords, as noble Lords have mentioned, I chaired the Government’s working group on regulation of property agents. I am very grateful to the noble Baroness, Lady Hayter, for her sterling ongoing work on this issue. Bearing in mind that the leading industry bodies for estate, lettings and managing agents were all on our working group, as well as consumer experts; our recommendations for a regulator of property agents were unanimous and favourably received by Ministers; the cost of a regulator would fall on the industry rather than on the Government; and I delivered our report over two years ago, may I press the Minister to confirm that there will at least be news of the necessary legislation within six months?

[Lord Greenhalgh (Con)]

I take this opportunity to pay tribute to the work undertaken by the noble Lord on the wide-ranging recommendations contained in the final report from his working group. I am grateful to him and to all those who contributed. However, he will appreciate that this is a complex area with many interdependencies. Having paused work on it at the height of the Covid-19 pandemic, we continue to consider the recommendations in the noble Lord’s report.

[The Lord Speaker (Lord McFall of Alcluith)]

The noble Lord, Lord Adonis, is not here.

[Lord Palmer of Childs Hill (LD)]

My Lords, I declare my interest as chair of the advisory board of the Property Redress Scheme. The noble Lord, Lord Best, put it very clearly: this report was two years ago, and still nothing concrete has happened. Some things can be done quite simply. The first recommendation is the appointment of a new independent regulator to lead matters in this instance. May I specifically ask the Minister when he expects such a regulator to be appointed?

[Lord Greenhalgh (Con)]

The noble Lord will know that the creation of a new regulatory regime requires a legislative underpinning. We are considering how to move forward on this and other areas and will come back to this House in due course.

[Baroness Blake of Leeds (Lab)]

My Lords, I pay tribute to the work of my noble friend Lady Hayter, all the working-group members and the progress made towards adoption of the codes of practice as outlined. I add my support to the calls for the Government to implement the report at speed. Last year, a court ruled that letting agents are no longer able to advertise properties as unavailable to those in receipt of universal credit. What steps have the Government taken since to prevent this discrimination? Does the Minister agree that implementing the codes of practice would prevent such discrimination in future?

--- Later in debate ---

[Lord Greenhalgh (Con)]

My Lords, we recognise that having an overarching code of practice will be an important step in addressing these issues around discrimination. That is why we are looking forward to receiving the draft code compiled from the hard work done by the noble Baroness, Lady Hayter, and others. We will come back in due course on how we take that forward.

[Baroness Pinnock (LD)]

My Lords, leaseholders in cladding-scandal-ridden flats have seen a meteoric rise in their service charges. Emily in Leeds has seen hers rise from £400 per year to nearly £3,000 per year. The Minister has said this afternoon that he is committed to leaseholder fairness. Regulation is urgently needed to save these leaseholders from bankruptcy. When—not if—will the Government introduce regulation?

[Lord Greenhalgh (Con)]

My Lords, as the noble Baroness knows, the Building Safety Bill is currently going through the other place. We strongly believe that all fees and charges should be justifiable, transparent and communicated effectively. By law, variable service charges, and pollution and administration charges, must all be reasonable, and, where costs relate to work or services, those must be of a reasonable standard. There are already significant legal protections in place.

Rating (Coronavirus) and Directors Disqualification (Dissolved Companies) Bill

Lord Greenhalgh Excerpts

2nd reading
Tuesday 19th October 2021 Grand Committee

Moved by

[Lord Greenhalgh]

That the Grand Committee do consider the Rating (Coronavirus) and Directors Disqualification (Dissolved Companies) Bill before Second Reading.

[The Parliamentary Under-Secretary of State, Department for Business, Energy and Industrial Strategy (Lord Callanan) (Con)]

My Lords, this is a Bill with two distinct and important measures. The first is a measure to change the valuation assumptions that are applied when making business rate determinations in the light of Covid-19. The second measure provides for the investigation and disqualification of the former directors of dissolved companies.

Let me start with the business rates measure. Clause 1 of this Bill is about how the impacts of Covid-19 should be accounted for in rateable values, the key component of business rates liabilities. This clause will ensure that the coronavirus and its effects will not be considered as a material change of circumstance for the purposes of assessing rateable values. This measure is needed to respond to the unprecedented volume of appeals received by the Valuation Office Agency since the start of the pandemic. It will provide local authorities with certainty and security against a potentially crippling financial blow. It will ensure that the law operates in the way it was designed to do, by using general revaluations of non-domestic properties to reflect the impacts of major economic events in rateable values. As noble Lords will recall from when we debated and approved the Non-Domestic Rating (Lists) (No.2) Bill, a matter which I am sure is at the forefront of all noble Lords’ imaginations, the next revaluation in England has been moved to 2023 based on the market at 1 April 2021 so that the system can better reflect the impact of the pandemic.

The pandemic has of course hit businesses hard, and the Government have responded with unprecedented support. To take business rates alone, over this financial year and the last one, we are providing £16 billion of business rates relief for retail, hospitality, leisure and nursery properties. We are introducing a further £1.5 billion of relief in recognition of the complex ways in which Covid-19 has impacted the economy and supply chains. Local government has also needed government support. Business rates provide a stable source of income for local authorities to plan the financing and delivery of local public services. The events that necessitated this measure threatened that stability and certainty in a profound way.

The Local Government Finance Act 1988 provided the source of our valuation and local business taxation systems. Ensuring that this system operates as it was designed to do is a vital part of the Government’s rationale. Business rates bills are calculated by multiplying the rateable value of the property by the multiplier or tax rate, then applying various reliefs. The rateable value of a property is, broadly speaking, its annual rental value at a set valuation date. These rateable values are updated at regular revaluations undertaken by the Valuation Office Agency, which provides a consistent tax base for all businesses and a stable income stream for all local authorities.

Of course, ratepayers can challenge rateable values outside of general revaluations for a number of reasons, such as to correct a factual error or to reflect what is called a material change of circumstances, or MCC. If not satisfied with the outcome of the challenge, the ratepayer may appeal the VOA’s decision to the valuation tribunal.

The MCC system was not designed to reflect changes in economic factors, market conditions or the general level of rents. The 1988 Act was not designed with Covid-19 in mind, and the MCC system has never been used in response to an event with such economy-wide impacts as Covid-19. Moreover, the Government are clear that relying on the MCC system to help businesses that need further support in light of the pandemic would be misguided. It would mean significant amounts of taxpayer support going to businesses with properties such as offices, many of which have been able to operate normally throughout the pandemic, of course. It would also mean resolving such disputes through the courts. This could take many years and would create additional uncertainty for ratepayers and local councils.

Instead, the Bill will clarify the law such that coronavirus, and the restrictions put in place in response to it, cannot be used as the basis for making a successful MCC challenge or appeal. It will ensure that changes to the physical state of the property can continue to be reflected in rateable values as and when they occur, irrespective of whether this is as a result of coronavirus, but that the general impact of the pandemic on the property market will not be reflected until the next revaluation in 2023. This approach will provide much-needed certainty to councils and ratepayers alike.

We have of course worked closely with the devolved Administrations on these and other matters over the last 18 months. Following a request from the Welsh Government and amendments tabled on Report in the other place, the Bill will extend to Wales as well as England. Scotland has begun its own legislative process, which mirrors our approach.

The Government welcomed the support of Labour Members in the other place. The Public Accounts Committee also recorded its approval for the Government’s approach, as did the local government witnesses in Committee. These endorsements speak to the fundamental soundness of the policy rationale behind the business rates measures in the Bill.

The second part of this Bill addresses the problem of potential abuse of the process whereby companies are struck off the register and dissolved. I am proud to pay tribute to the resilience and determination of the many thousands of British company directors who have steered their companies through challenges from lockdowns, social distancing, and other restrictions on trading, all of which were necessary to limit the spread of Covid-19 and to keep our country safe. The responsible and effective stewardship of companies has helped to save countless jobs and livelihoods and will continue to provide an invaluable contribution to the economy as it recovers from the effects of the pandemic.

Unfortunately, there will always be those few individuals who do not comply with their duties as directors, and who do not act in the best interests of the company, its employees, or its creditors. It is important that that majority of honest and diligent directors, and the wider public, are protected from the potentially very damaging actions of those few bad apples. Directors who behave recklessly or irresponsibly can expect to have to answer for their conduct and may face proceedings to disqualify them from acting in the management of a company. Evidence to support disqualification action comes from investigation of companies and the conduct of their directors, and I would like to explain a little of how this process works in practice.

For insolvent companies, conduct is investigated through powers in the Insolvency Act 1986 and the Company Directors Disqualification Act 1986. Insolvency officeholders submit returns to the Secretary of State, reporting on the conduct of the directors in question. These are vetted, and where misconduct is suspected, it is assessed on the basis of public interest; for example, how much harm there has been to creditors and the wider public. Further investigation may be undertaken through examining company records and seeking information from third parties, including creditors, and directors themselves will also be asked to provide information and given opportunities to explain their actions. Where evidence of misconduct is found, a period of disqualification may then be sought. Investigations may also occur in live companies, using powers in the Companies Act 1985.

This Bill extends the circumstances in which the Secretary of State may investigate the conduct of directors to where the company has been dissolved without being subject to insolvency proceedings. It will extend the deterrent effect of the disqualification regime to those directors who abuse the company dissolution process. The Government consulted on this measure in 2018, when it was welcomed by stakeholders. Implementation is now particularly important to help reduce the risk of the fraudulent avoidance of repayment of government-backed loans made to businesses to support them during the pandemic.

It is an unfortunate fact of life that people who abuse the system will seek to take advantage wherever they can, so counterfraud checks were built into the lending process for bounce-back loans. For example, as a condition of the guarantee agreement, lenders were required to undertake appropriate anti-fraud and anti-money laundering checks before loans were made, and if they did not, they would not be able to call on the Government’s guarantee in the event of a borrower’s default. The new power to investigate and disqualify former directors of dissolved companies will back up those anti-fraud measures by deterring wrongful avoidance of repayment, and so help to ensure that public funds are protected. It will also pave the way to seek compensation from disqualified directors guilty of misconduct that has caused loss to others, including in relation to bounce-back loans.

Noble Lords may also be interested to hear about other actions taken by my department to minimise the risk of companies fraudulently avoiding repayment of their bounce-back loans. In March 2021, the department entered a blanket objection to any company with an unpaid bounce-back loan being struck off the register. This has prevented almost 51,000 companies, with total unpaid loans of over £1.7 billion, being dissolved. This action has ensured that lenders can continue to make recoveries on loans due to be repaid and will ensure that the public purse is protected. I commend this Bill to the Committee.

--- Later in debate ---

[The Minister of State, Home Office and Department for Levelling Up, Housing & Communities (Lord Greenhalgh) (Con)]

My Lords, it is a pleasure to close what has been an engaging and informed debate. I thank noble Lords for their contributions both in the Room and in discussions outside—although I have to say that 10 officials were present for a drop-in session and no one turned up. I am very happy to have engagement on this, but it has sometimes been difficult. This is a short Bill, but the measures contained in it are important issues of public policy and I am grateful for all perspectives.

It is hugely important that the integrity and clarity of the valuation system that underpins business rates are maintained. That is why we are taking forward this important measure to clarify that coronavirus and its impacts should not be considered grounds for a material change of circumstance appeal. The alternative would be to allow the pandemic to have a hugely distorting effect on the rating system, casting local government financial planning into jeopardy. I say in response to the noble Baroness, Lady Pinnock, that these would have been considerable sums. Places such as Westminster obviously have a huge business rate base that is then allocated more widely. Clogging up the appeals courts for years to come is not the way forward and would have set a dangerous precedent for the future.

I am grateful for noble Lords’ support for the director disqualification measure in the Bill, which brings the conduct of former directors of dissolved companies into scope for investigation and potential disqualification proceedings. The United Kingdom has a world-class insolvency regime, and a strong enforcement framework is vital to that. Additionally, this measure will be an important tool for helping to combat bounce-back loan fraud and for deterring others from acting in breach of their duties as company directors.

Before I address the many points in this debate, which forms the largest part of my speech, I put on record that I have commercial property interests and am a company director—I should have raised that right at the start of my speech. Like the noble Earl, Lord Lytton, I did not claim from any of the schemes that we have been discussing today to mitigate against the payment of business rates.

In response to the noble Baroness, Lady Pinnock, I have to say that the purpose of the Bill is to restore the law to its intended practice and so no ratepayer will face seeing their bill increase as a result of the Bill. There will therefore be no material impact on the ratepayer.

The noble Earl, Lord Lytton, is a master of understanding procedure in the House, but I have been assured that this debate taking place in Grand Committee before Second Reading was agreed between the usual channels to prevent a very late sitting on Monday 18 October. In response to my noble friend Lord Holmes of Richmond, the Second Reading will take place tomorrow but without further formal debate.

The noble Baronesses, Lady Blake of Leeds and Lady Blower, raised the issue of how the £1.5 billion would be split and the approach to that. It will be allocated to local authorities based on the stock of properties in the area whose sectors have been affected by Covid-19 and which have not been eligible for existing support linked to business rates. Local authorities will then use their knowledge of local businesses and the local economy to make awards. The noble Baronesses, Lady Blower and Lady Pinnock, raised the issue of the additional administrative burdens. This will of course fall within the new burdens doctrine so that any administrative costs to local government will be covered.

Many noble Lords, including the noble Baronesses, Lady Blake and Lady Pinnock, the noble Earl, Lord Lytton, and my noble friends Lord Bourne and Lord Cormack, asked whether £1.5 billion is enough. This new £1.5 billion relief comes on top of an unprecedented £16 billion of relief over two years provided by the Government for the ratepayers most affected by the pandemic. This new scheme will be targeted at sectors that have been affected by Covid-19 but are not eligible for support linked to business rates. The new £1.5 billion of relief will enable local authorities to provide a meaningful level of support to those who have not been eligible for support linked to business rates.

My noble friend Lord Cormack and others raised the issue of the legislation’s retrospection. The Government are intervening because we want to ensure that the law regarding valuation operates correctly while providing significant relief to ensure that support is provided to businesses most in need. Allowing rateable values to fall for market and economy-wide matters such as the Covid-19 measures would be out of line with the principles of rating, where such matters are reflected at general revaluations. It is right that we ensure that the law continues to follow these principles.

My noble friend Lord Cormack and the noble Baronesses, Lady Blower and Lady Blake, all wanted to know when the guidance for local authorities on the operation of the relief scheme will be published. I recognise that it is important because it will help local authorities make decisions over the design of the relief scheme. We will publish the final local authority guidance as soon as the Bill receives Royal Assent. I want to let Members know that we are engaging very closely with the Local Government Association, the Institute of Revenues, Rating and Valuation and, obviously, CIPFA, in ensuring that we get this right.

My noble friend Lord Bourne and the noble Earl, Lord Lytton, all raised the issue of airports. It is a core principle of the business rates system that market-wide economic changes affecting property values, such as the pandemic, can and should only be considered at revaluation. The drop in demand for airports in light of the pandemic is therefore exactly the sort of economic change which should not be reflected between revaluations. The next revaluation in 2023 will be based on the market on 1 April 2021 and therefore will better reflect the impact of the pandemic.

My noble friend Lord Bourne noted that the measure is itself not enough for bounce-back loan recovery. The Government have been clear that bounce-back loan facilities are loans and not grants and have worked closely with lenders to develop industry-wide principles for the collection and recovery of bounce-back loans. This includes the recovery approach that lenders should take in the event that a borrower defaults and there is a claim on the guarantee with net proceeds being returned to Her Majesty’s Government.

[Lord Bourne of Aberystwyth (Con)]

That is not the specific point I was concerned about. With respect to the Minister, I quite appreciate that it is right to go after the bounce-back loans. My concern was that it did not extend to other creditors who are owed money and that there is a focus just on the bounce-back loans, whereas there is obviously a large field of creditors who have no redress if that is the only concern that the Government have.

[Lord Greenhalgh (Con)]

Beyond bounce-back loans, the Government are working closely with lenders to develop industry-wide principles so that we can learn from this and apply those in areas beyond bounce-back loans. However, I will write to my noble friend on that specific point.

The noble Baroness, Lady Blake of Leeds, and my noble friend Lord Bourne asked about the funding for the Insolvency Service. The Insolvency Service’s resources are not limitless. However, all cases are carefully reviewed and assessed to determine the degree of harm caused to the public and to business, with the most serious cases prioritised.

The noble Baroness, Lady Pinnock, mentioned compensation orders and my noble friend Lord Bourne asked about the steps to get directors to reimburse. I want to clarify that compensation orders may be sought for a creditor or creditors, a class of creditors, or as a general contribution to the assets of the company. These are the rules for insolvent company director cases now and we are seeking to extend the same rules to dissolved company directors. The amount and to whom the compensation is to be paid is specified in the order or undertaking. The provision in the Bill extends this to former directors of dissolved companies, although it is unlikely that the court would order a contribution to the assets of the company in such cases.

I will not have to write to my noble friend Lord Bourne, because I have found the relevant note—I hope that noble Lords appreciate that this is not my ministerial area and I am having to pick this up as I go along. My noble friend asked whether the new measure would deal with all fraud and not just the bounce-back loans, and it will. It will, for example, deter directors from the practise of phoenixing, where the debts of one company are dumped using dissolution and a new company starts up doing the same thing. It sets that precedent to deal with the specific example of phoenixing.

In response to my noble friend Lord Holmes on the wider reform of insolvency, the Government recognise the important work that insolvency practitioners do and are currently reviewing the regulatory framework that governs them to ensure that the best possible outcomes are achieved for creditors. As part of this, the Government issued a call for evidence in 2019 to seek the views of stakeholders on the impact of the regulatory objectives introduced for the insolvency profession in 2015. The Government will respond in due course.

There was a tremendous speech from the noble Lord, Lord Sikka, from which I learned an awful lot. He raised issues related to company and insolvency law. Obviously, a number of them go beyond the scope of this four-clause Bill, but we keep the wider company and insolvency law frameworks under constant review and will bring forward amendments to the House as and when needed. However, the noble Lord will know that the Government are considering wider reforms to the register of companies, and that work is ongoing. Unfortunately, it is above my pay grade to be able to approve an independent inquiry such as he called for, but I am sure he can engage with colleagues at BEIS and take forward some of those points, and I know that the team here is very aware of his concerns.

[Lord Sikka (Lab)]

Will the Minister be gracious enough to arrange for me and a former police and crime commissioner to see the relevant Minister so that the evidence that has been accumulated, showing corrupt practices by insolvency practitioners together with banks and lawyers, can be shown?

[Lord Greenhalgh (Con)]

I think that by “a former police and crime commissioner” the noble Lord is referring to me, as a former Deputy Mayor of London for Policing and Crime. Where there is criminality, there are plenty of ways for the noble Lord to put forward his evidence. If he is having difficulty in presenting it to the Government, I shall do all I can to ensure that he gets to the right person. At the moment, this is beyond my direct area, but I am happy to engage and help him in any way possible.

I want to address a point raised by the noble Lord, Lord Alton of Liverpool, who could not be here today, but I know will be following the debate with interest, particularly after the contribution from the noble Lord, Lord Sikka. He wished to convey to me the plight of the English language teaching sector, an important sector that has suffered terribly throughout the pandemic. The Government are carefully looking at the different sectors as we design the new £1.5 billion relief scheme for businesses that have not been eligible for existing support linked to business rates. We will confirm the eligibility of sectors in due course when we publish guidance in the proper way, but certainly the English language teaching sector is one of those that we are looking at very carefully. Ultimately, decisions on individual awards of relief will be a matter for local authorities.

I thank all noble Lords for their participation and engagement. My noble friend Lord Callanan and I look forward to working with noble Lords on future stages of the Bill and, hopefully, seeing it swiftly through its remaining stages, given the support that we have seen. I beg to move.

Motion agreed.