Non-Domestic Rating (Multipliers and Private Schools) Bill

Lord Jamieson Excerpts

Committee stage
Thursday 27th February 2025 Grand Committee

[Lord Khan of Burnley (Lab)]

I thank the noble Lord for making that point. He also talked about delays, which I will pick up in a later group when we talk about implementation; I have not forgotten about the important points he raises. On the point he just made, the Budget analysis takes into account the 2026 revaluation, so that point is covered by the Treasury in its work in the build-up to the Budget.

[Lord Jamieson (Con)]

I did not quite understand that point. The Minister is saying that the revaluation has already been taken into account in the figures that the Treasury is coming forward with. Does that mean he can share the revaluation with us?

[Lord Khan of Burnley (Lab)]

My Lords, let me clarify this for the noble Lord. As I said repeatedly on day one in Committee, the Treasury will publish an analysis when it sets its multipliers at the Budget, but the work that is going on in providing that analysis will consider all the issues, in particular the issue the noble Lord raised about the 2026 revaluation.

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[Lord Jamieson (Con)]

My Lords, Amendment 47 addresses the issue that, despite the Government’s claim that they would reform the business rates system, the Bill does not offer that. We heard concerns from several noble Lords on the previous day in Committee that this is not a Bill that will support the high street and level the playing field, as promised in the Labour manifesto. My concern is that businesses will face substantially higher costs. These proposals are supposed to support the high street, with a so-called Amazon tax, yet this is clearly not the case. It is a blunt instrument that will substantially increase taxes on all properties with a rateable value above £500,000. As such, it risks harming the very businesses it is purportedly designed to help, such as anchor stores and other retail, hospitality and leisure facilities fundamental to the high street.

There is a second concern that we have already raised: the cliff-edge nature of these proposals. I, like the noble Lord, Lord Fox, have done some very basic analysis of this. For example, a retail, hospitality or leisure business with a rateable value of just under £500,000 would today pay rates of around £175,000, assuming a 0.2 discount and a multiplier of 0.55, whereas if it were to make a small investment and tip over that threshold, it would pay £320,000. Like the noble Lord, Lord Fox, I allow for a little approximation in those numbers. There are plenty of examples of this. For instance, locally to me in Bedfordshire, Luton Hoo, which is currently looking at some investment, has a rateable value of £490,000. Will that investment go ahead, knowing the additional costs? Even more locally—as Members are aware, I am a councillor and I declare my interest as a councillor in Central Bedfordshire—near my own ward, a garden centre in Toddington faces the same issue. Again, I am aware that it is looking at some investments.

We have also touched on the impact of future revaluations. The Minister has been keen to point out that this will impact fewer than 1% of properties and only 3,100 retail outlets. He said that he wants to be clear and transparent, so can he tell us how many additional properties will be above the £500,000 threshold after the next revaluation? I note that the noble Lord, Lord Fox, refers specifically to the idea of a commercial landowner levy as a proposed tax reform to replace the business rates system. I support the sentiment of requiring government to consider genuine reform, rather than the lack of change that the Bill provides. I do not agree with the specific reform proposed by the noble Lord, but I acknowledge the need to adapt the system to ensure that online businesses that operate from out-of-town warehouses pay a fair, proportionate share of business rates. Given that the Bill has been brought forth, it seems reasonable to assume that the Government have delayed any plans they had to reform the system, which will damage businesses up and down the high street. They promised lower business rates but are reducing the relief offered to retail, hospitality and leisure businesses, sending an incoherent message to our high streets. I look forward to the Minister’s response.

[Lord Khan of Burnley (Lab)]

My Lords, Amendment 47 seeks to require the Chancellor to undertake a review of the measures in the Bill, once passed, on broader non-domestic rating policy and to set out what potential changes may be required and/or what alternative approaches to non-domestic rating have been considered. The Government are committed to creating a fairer business rates system that protects the high street, supports investment and is fit for the 21st century. The Government commenced that journey at the 2024 Budget, when we announced our intention to permanently—I say that again: permanently—introduce lower rates for qualifying retail, hospitality and leisure properties from 2026-27, as well as a higher rate on properties with rateable value of £500,000 and above to ensure that the permanent tax cut is sustainably funded.

At the Budget, the Government also published the Transforming Business Rates discussion paper, setting out priority areas for business rates reform and inviting stakeholders to have a conversation with the Government on this matter over the course of this Parliament. The areas of interest for further reform as set out in the paper include: incentivising investment and growth, considering the frequency of revaluations and ensuring that the system is transformed to make it fit for the modern 21st century economy. The paper also focuses on tackling avoidance and evasion; for example, through the Government’s intention to publish a consultation on adopting a general anti-avoidance rule for business rates in England.

I am delighted to say that those conversations with stakeholders on priority areas for reform have commenced and are ongoing. I thank all those stakeholders who have been in contact to offer their valuable insights and experience of non-domestic rating. Furthermore, on 17 February, the Government published the Business Rates: Forward Look policy note, which provides an update on key milestones for the Government’s overall business rates reform agenda. As set out in that note, we are reflecting on engagement undertaken so far and the views expressed as part of that process. It also sets out that we anticipate further stakeholder engagement on specific reform options ahead of the Autumn Budget, when final decisions will be set out.

I am aware that there is support from Liberal Democrat noble Lords and Members of Parliament for the replacement of business rates with a commercial landowner levy. What is important to the Government is that we have a tax that works. It is not the first time that this House has heard suggestions for a tax on land values or a levy on landowners: it was as common a debate in the last century as in this one. What all those debates show is great uncertainty and a lack of evidence of the benefits: any benefits to the high street would be far from certain. We are clear on the need for reform but, to minimise disruption for businesses, the Government will make improvements to the existing system over the course of this Parliament.

Before I conclude, let me address the points that the noble Lords, Lord Fox and Lord Jamieson, raised on investment. They will understand that I am unable to comment on specific examples of live non-domestic rating bills but, as part of the Transforming Business Rates discussion paper, we will look at the effectiveness of the improvement relief scheme, which helps businesses that invest in their property. I look forward to our engagement, post Committee, in more detailed conversations. For the reasons set out, I am unable to accept the amendment. I agree that the system is broken and we are trying to fix it. It cannot go on year after year on an ad hoc basis. We need certainty and sustainability so that people can have a clear and fair system. As we said in our manifesto, we will continue to support leisure, hospitality and retail, and those above £500,000 rateable value—fewer than 1% of properties—will contribute to make sure that our system is fair and balanced.

I hope I have provided reassurance as to the seriousness with which the Government are approaching our stated task of reforming the business rates system, and I ask the noble Lord to withdraw the amendment.

Private Rented Sector: Affordable Rents

Lord Jamieson Excerpts

Thursday 27th February 2025 Lords Chamber

[Lord Jamieson (Con)]

My Lords, as my noble friend Lord Young of Cookham said, when supply goes down and demand goes up, prices increase. What assessment have the Government made of reports that landlords are leaving the rental market at the highest rate ever? Many are citing rental reforms as their reason for leaving.

[Baroness Taylor of Stevenage (Lab)]

If I am honest with the noble Lord, I think the pressures on housing come from 14 years of not taking the housing market seriously. We have carefully assessed what the impact of the Renters’ Rights Bill might be, and we do not believe that it will have a significant impact on the supply of private rented housing in the market. Supply has been consistent for several years, and we want to maintain that and to make sure that the Renters’ Rights Bill delivers the right balance of support for both landlords and tenants. There are many really good landlords, and we want to give them the help and support they need through the Bill, as well as supporting our tenants.

Non-Domestic Rating (Multipliers and Private Schools) Bill

Lord Jamieson Excerpts

Committee stage
Monday 24th February 2025 Grand Committee

Moved by

[Lord Jamieson]

3: Clause 1, page 2, line 5, at end insert—
“(1A) Regulations under subsection (1)(a) must provide discretion for billing authorities with regard to the application of the higher multiplier.” Member's explanatory statement
This amendment seeks to introduce an element of discretion for billing authorities in the application of the higher multiplier.

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[Baroness Scott of Bybrook (Con)]

It is not me.

[Lord Jamieson (Con)]

May I deputise? Before I do, I declare my interest as a councillor in Central Bedfordshire. In moving Amendment 3, I shall speak to Amendments 18, 37 and 43 in the name of my noble friend Lady Scott, and in favour of Amendment 32 in the name of the noble Lord, Lord Thurlow.

Amendment 3 seeks to introduce discretion for billing authorities in the application of the higher multiplier. The other amendments in the name of my noble friend Lady Scott—Amendments 18, 37 and 43—question whether the Treasury is the right authority to define these hereditaments. The purpose of these amendments is to seek the Government’s reaction to the proposal that local authorities should have a role in deciding which businesses pay the newer, higher multiplier. Local authorities are in a unique position to comprehensively understand the challenges and circumstances faced by their local businesses, which a centralised body certainly is not.

For all its strengths, we know that His Majesty’s Treasury does not have the local knowledge and in-depth understanding of the needs of individual high streets to make informed decisions on business rates that work in the best interests of the local areas. Local authorities are on the ground and are intimately familiar with the economic, social and cultural landscape of their high streets and areas. From my own experience in Central Bedfordshire, I know the positive impact that a well-run local authority can deliver for its high streets. We are interested to hear how the Government seek to empower councils in these areas. We have heard a great deal from the party opposite about the value of devolution; this is a good example of where the Government should put these sentiments into action. The amendments in the name of my noble friend Lady Scott look to empower local authorities to tailor policy to best suit their local area’s specific needs.

Fundamentally, policy is about not only implementing rules but creating a framework that works in practice. Therefore, it is essential, even if the Government are unable to accept the amendments in this group, that local authorities are consulted properly before the Bill is passed. Can the Minister set out the consultation process undertaken to date and confirm for the Committee the further steps that his department will take to consult local authority leaders on these changes? Can he also update the Committee on how this change to our business rates system will interact with the Government’s wider plans to reorganise local authorities? We know that the environments in which businesses operate vary dramatically throughout the UK. However, this issue is neglected in the drafting of this legislation.

It is concerning that the broad applications of the definitions of hereditaments, which will be determined by the Treasury, will not address these regional disparities and enable a focus on what works locally. When created by the Treasury, definitions are designed with an overarching and national perspective and may risk creating unintended consequences for local businesses. They do not account for the nuances of local businesses, which are well understood by local authorities, so we must be cautious about adopting a one-size-fits-all approach when introducing legislation that will undoubtedly have significant implications for local businesses. The Government risk implementing blanket definitions that are disconnected from the realities faced locally.

Finally, I turn to Amendment 32 in the name of the noble Lord, Lord Thurlow, which seeks to remove the power of the Treasury to define a retail, hospitality and leisure property; this addresses the fact that it is local authorities who decide what constitutes a retail, hospitality and leisure relief property, in line with the government guidance. In tabling this amendment, the noble Lord appears to have many of the same concerns as those expressed in my noble friend Lady Scott’s amendments. I look forward to hearing his speech. We did not discuss this matter before Committee so I was pleased to see on the Marshalled List that I have a friend on this issue on the Cross Benches; I thank and offer my support to the noble Lord, Lord Thurlow, and hope that we can work together constructively after Committee.

To conclude, I hope that all noble Lords will listen carefully to the concerns raised in this group of amendments. I look to the Minister to engage proactively with the issues addressed in this amendment. I beg to move.

[Lord Thurlow (CB)]

My Lords, the noble Lord, Lord Jamieson, has taken the words out of my mouth. I support much of what he has said.

The starting place for my comments on this group is that the Bill seems to reverse the attempts to regionalise power from the centre; it would take the ability to define these hereditaments back to central government. As the noble Lord, Lord Jamieson, said clearly, the definition of RHL properties needs local expertise. There are regional disparities, to which he referred; it is terribly important to understand that. Regional disparities are huge. This measure is a generic product, but it is subject to huge regional variations. One size does not fit all hereditaments. That is an important starting place. It is no accident that the government guidelines allow local authorities to define RHL in accordance with the existing government guidance. That is very sensible. They are the people on the ground. They understand the give and take, as well as the commercial flows, involved.

A large supermarket on a high street may be the only anchor present in that town, being vital to the health of the high street, probably with a car park or a bus stop, and the only source of sufficient turnover of pedestrians to justify its presence in the high street at all. It has to be understood that, if these anchors pack up and leave, high streets really do suffer. There is a terrible price to pay for letting them go and anything that imperils their presence has to be terribly carefully decided, which is why it is a local issue, not a central government one. I strongly urge the Government to allow local authorities to continue to make these decisions.

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[Lord Jamieson (Con)]

My Lords, I thank all noble Lords who contributed to our debate on this group of amendments, which deals with the role of billing authorities and the definition of hereditaments.

During the debate, I listened closely to the noble Lord, Lord Thurlow, whom I thank for his support in raising yet again the impact on anchor stores on the high street, which is quite fundamental. I fully support the sentiment of Amendment 32 in his name. It seems plainly obvious that we are closely aligned; I hope that we can work collaboratively before and during Report and that the Minister will both listen to this argument carefully and see what can be done to improve the Bill’s provisions on the definition of hereditaments.

I thank the noble Earl, Lord Lytton, for his support for discretion. The noble Baroness, Lady Pinnock, was concerned that it may mean somewhat less funding for councils in the north of England. That is absolutely not the intention; I would be delighted to look at this matter further and have a conversation outside this Room.

The Minister made a couple of points about certainty. All businesses like certainty but they also want equity. Our concern is about equity and what is reasonable and fair. I was slightly puzzled by what the Minister said—I would be grateful if we could have a conversation on it later—about this idea of “centrally set but locally implemented”. That does not feel like local discretion; it feels like local implementation. I would be keen if he could speak more on that point.

Finally, local authorities have the ability for some local discretion. However, my understanding is that that would be funded locally, which is not particularly desirable.

[Lord Khan of Burnley (Lab)]

I think the noble Lord is saying “Let’s have some conversations to follow this up”. As I have said to all here, I am happy to sit down with any noble Lord or noble Baroness to discuss any point, in particular post Committee, before we get to Report. I would absolutely welcome a conversation with the noble Lord.

[Lord Jamieson (Con)]

I thank the Minister.

We must steer away from blanket definitions issued centrally by the Treasury, which does not have the thorough oversight of local businesses in all parts of the UK. Local authorities have a particular understanding of the business landscape in their areas, so while the definition of hereditaments introduced by the Treasury may work in some places, it will not work everywhere or be appropriate to others. This can be avoided if local authorities are issued with a power to determine a hereditament or other type of property.

As the noble Lord, Lord Thurlow, rightly pointed out in his Amendment 32, local authorities already determine what constitutes a retail, hospitality and leisure relief property. We must therefore ask why the drafting of this legislation provides complete power to the Treasury to define a retail property or a hereditament. Would it not be more suitable for local authorities to define property types? I would argue that, with their first-hand local knowledge, local authorities are best placed to define terms in a way that reflects the realities and suits the needs of their local areas.

Unsurprisingly, many questions have been raised in the debate on this group of amendments, so I look forward to the Minister—I thank him for his willingness to engage with us—providing more clarity on the matters discussed. I hope we will engage positively on the amendments in the name of my noble friend Lady Scott. With that, I beg leave to withdraw the amendment.

Amendment 3 withdrawn.

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There are ways of targeting so that we exclude properties that I presume we do not want to target; perhaps some do, but we on this side certainly do not. We do not want hospitals to have an additional bill to pay when they are already struggling to make ends meet. All this will do is extend waiting lists. If hospitals are having to pay even more for their business rates, folk will wait longer for their essential hip replacements. The Minister said that this measure was going to be fair and sustainable but I bet that, if you asked a hospital trust board whether this will be fair and sustainable, it would say no. I need to hear from the Minister why this Government want to impose—albeit as an unintended consequence of this rough and ready Bill—further costs on our NHS hospitals when we know that they are already struggling financially. I beg to move.

[Lord Jamieson (Con)]

I thank the noble Baroness, Lady Pinnock, for moving this amendment and outlining the unintended consequences of this Bill. The proposal to exempt healthcare from the higher multiplier is an issue that has sparked considerable debate in the wider community.

The amendments in this group propose two key changes: to exempt healthcare from the higher multiplier; and to expand the definition of healthcare to include hospitals and medical and dental schools. These changes seek to address the concern that critical services in the healthcare sector could be disproportionately affected by the Bill’s provisions. These amendments address very real concerns that services could be disproportionately affected through this legislation, revealing further unintended consequences of this Government’s Bill.

Amendment 6 is particularly important as it seeks to remove healthcare from the higher multiplier, directly responding to concerns raised by hospitals and other healthcare providers that are already under significant financial strain. Exempting healthcare from this additional tax burden could protect vital services, ensuring that they can continue delivering essential care without being further impacted by this Bill’s provisions. The National Pharmacy Association has warned that pharmacies across the country are at risk and may be forced to cut hours because of the Government’s triple whammy of increased business costs this April. It cannot be right that access to healthcare is threatened by the Government’s appalling tax policies. Will the Minister give the Committee a commitment today that the Government will change course on their tax policies if it is proven that access to healthcare will be reduced as a result of their policy?

Amendments 20 and 23 seek to clarify and broaden the definition of healthcare, ensuring that medical and dental schools are included in these protections. Given the importance of these institutions in training future healthcare professionals, it is worth considering whether their exclusion from such protections could affect the quality and sustainability of the healthcare workforce—particularly at a time when the sector is facing increasing demand. I would be grateful if the Minister took this opportunity to outline exactly how the Government will safeguard the future of our healthcare workforce in the light of these concerns.

Finally, Amendment 39 repeats the proposal to exempt healthcare from the higher multiplier, reinforcing the argument that this sector should not bear the weight of a tax system that may further stretch its already-limited resources.

I would like to touch on the cliff-edge nature of the £500,000 threshold; this has been mentioned in previous debates by the noble Earl, Lord Lytton, and my noble friend Lady Scott. A local health facility might want to add one consulting room. If that pushes it over the £500,000 threshold, it may no longer be affordable. We need to think carefully about the cliff-edge nature of this measure; I would be grateful if the Minister could provide some additional thought on it and come back to us.

In conclusion, these amendments ask important questions about the impact of this Bill on healthcare sectors. Although the Bill seeks reform, we must ensure that essential services are not disproportionately affected by the higher multiplier or excluded from necessary protections. The noble Baroness, Lady Pinnock, has brought forward a compelling case for the need to reconsider the treatment of healthcare in the Bill. I would be grateful if the Minister took this opportunity to clarify how the Government plan to address these concerns and ensure that vital healthcare services are not unduly burdened; I look forward to his response.

[Lord Khan of Burnley (Lab)]

My Lords, these amendments seek to change the Bill to remove healthcare hereditaments from the higher multiplier. In the previous debate on the amendments in group 4, just a few moments ago, I explained why the Government have taken a sector-agnostic approach to the higher multiplier and not excluded any sector or type of property. Of course, the same considerations apply here. This Government fully support the healthcare sector, but it would not be fair to exclude some and not others. To sustainably fund the lower multipliers, we must ensure that we can raise money from higher multipliers; the only fair way to do this is to apply it to all hereditaments at £500,000 and above.

As I said in the debate on the previous group, it is important to look at the facts. The Valuation Office Agency’s statistics show that, of the 16,780 properties caught by the £500,000 threshold, based on the current rating list, only 350 are in the health subsector. Of these, 290 are NHS hospitals and only 30 are doctors’ surgeries or health centres. These numbers are rounded to the nearest 10 and we do not have separate data on medical or dental schools. The impact on this sector is therefore limited and, where it applies, much of it falls on the NHS. The Autumn Budget fixed the spending envelope for phase 2 of the spending review, which will deliver new mission-led, technology-enabled and reform-driven budgets for departments. We will consider the full range of priorities and pressures facing departments in the round, including any impact of the higher multiplier, when setting these budgets.

On the questions about the Bill creating more cliff edges in the system, the new higher-rate multiplier will apply to properties above £500,000, which will fund and support the high street in a sustainable way. However, the discussion paper published at the Autumn Budget highlights that some stakeholders have argued that cliff edges in the system may disincentivise expansion. It committed to explore options for reform. The Government have recently completed an initial stage of engagement to understand stakeholder views and areas of interest for reform, and we are open to receiving written representations in response to the priority areas for reform. That is open until 31 March 2025.

On the specific question about examples of properties that the noble Baroness mentioned, it would be inappropriate for me to discuss the rate bills of specific ratepayers, especially as one of them is a domestic property. To conclude, set in the context of these facts and assurances of how we will approach the issue in the spending review, I hope the noble Baroness is able to withdraw her amendment.

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That element is missing in our debate: town centres provide vital places for people to go and meet other people. Those of us fortunate enough to come to this place meet a lot of people, but some people are lonely. The one place where they can get out to meet folk is in their local village or town centre. That is why it is vital that Amendment 51 is accepted by the Minister as a simple application of the NPPF to the Bill, to safeguard the whole health of a town centre because of its inherent value to not just businesses but the community they serve. I beg to move.

[Lord Jamieson (Con)]

My Lords, I will speak to the amendments in this group in the name of the noble Baroness, Lady Pinnock, all of which address the lack of detail provided by the Government on their intentions with this Bill.

Amendments 16, 34 and 42 probe what types of hereditaments will be included in the definition of retail, hospitality and leisure. I am inclined to assume that the definition will remain the same as that which we used to define the requirements for the retail, hospitality and leisure relief scheme, and these are indeed the criteria listed in the noble Baroness’s amendments.

These may be unnecessary amendments, given that eligibility for retail, hospitality and leisure relief is already set out in the Government’s guidance for the scheme. However, we discussed our concerns about the power of the Treasury to define this in an earlier group. Crucially, businesses that are already worried about this Government’s plans need certainty and to be able to plan for the future. The Minister said that they need certainty; would not putting a clear definition in the Bill be a good way of delivering that? I will listen with interest to the Minister’s response, as we are likely to return to this part of the Bill on Report.

Amendment 51 seeks to probe the intended application of the Bill in relation to the National Planning Policy Framework. I certainly understand the noble Baroness’s confusion because, in the Labour manifesto, the Government promised reform of the business rates system and explained that such reform would include a larger burden on online businesses that operate from out-of-town distribution warehouses. Contrary to those statements, the Bill will actually have negative consequences on the high street. The noble Baroness is right to question whether the Government intended the higher multiplier to affect the high street in the way it will or whether, despite knowing what the impact would be, they chose to proceed anyway. I look forward to the Minister’s response and hope that there will be further clarity from him on the application of the Bill.

[Lord de Clifford (CB)]

I rise quickly to support Amendments 16, 34 and 42 tabled by the noble Baroness, Lady Pinnock, and to reiterate my point about clarity for businesses. Businesses want to plan two or three years ahead but cannot. We have a limbo at the moment for about 18 months to two years, and this Bill leaves us in that position. I ask the Minister to go back to the Government and ask for some clarification—that is, some sorts of figures so that businesses can plan for the future.

Solar Panels

Lord Jamieson Excerpts

Wednesday 12th February 2025 Lords Chamber

[Baroness Taylor of Stevenage (Lab)]

The noble Baroness raises a very important question for all the growth that we are predicting for our country. My colleagues in the Department for Energy Security and Net Zero are working very closely with the national grid to improve grid capacity; it will be essential to have that going forward. We need to make sure that that is the case, both to drive the growth that we want to see, because energy is vital to that, and to keep our energy security for the country the way we want it as we grow the economy.

[Lord Jamieson (Con)]

My Lords, there is currently a potential conflict between the Government’s desire to ensure all rental homes have a minimum EPC energy efficiency rating of C and planning restrictions for buildings that are either listed or in a conservation zone. This is forcing many housing associations to look at selling many affected but much-needed affordable homes. What will the Government do to address this issue?

[Baroness Taylor of Stevenage (Lab)]

We have had issues around energy efficiency improvements to heritage and listed buildings. It is important to get the balance here right, though. Of course, we want to drive energy efficiency and we will be working with all the conservation associations, including Historic England, to look at what more we can do to drive energy efficiency as effectively as possible while still preserving the very important heritage aspects of the buildings in this country.

Permitted Development Rights (Extension) Bill [HL]

Lord Jamieson Excerpts

2nd reading
Friday 7th February 2025 Lords Chamber

[Lord Jamieson (Con)]

I thank my noble friend Lord Lucas for bringing the Bill to the House today. I declare my interests in the register, particularly that I am a councillor in Central Bedfordshire.

There is a housing crisis in this country, particularly in London and the south-east. For example, we see huge numbers of homelessness, particularly in London, with nearly 70,000 families in temporary accommodation, of whom nearly half are placed out of borough. Although the last Government successfully built some 2.5 million homes between 2010 and 2024 and a million in the last Parliament, it is noticeable that London has consistently failed to deliver on its housing targets over recent years. Depending on which housing target is looked at, since 2016 London’s delivery shortfall is between 100,000 and 400,000 homes. Had these homes been delivered, we would most likely have seen a material improvement in the housing crisis in London and the south-east, with fewer families in temporary accommodation and lower rents and improved economic growth.

Getting more housing built will come not from a single silver-bullet solution but rather a series of incremental steps. Increasing densification and enabling householders to expand existing properties, particularly in urban areas, could make a meaningful contribution to this, with the added benefits of densification, which my noble friend Lord Lucas mentioned, and the 15-minute city, which my noble friend Lady Coffey mentioned. Building in urban areas will avoid the use of greenfield and the loss of farmland. It has the benefit of using existing infrastructure—particularly, again, in London, where there is capacity in both the school and transport systems—and home owners needing extra space could do so without the disruption and difficulty of moving, enabling growing families to remain in their homes and communities.

I believe that there is a role for making modest extensions that do not interfere unduly with neighbouring properties and that are easier to get through the planning system. Also, as we seek to improve the energy efficiency of our homes, we could simplify the process for solar, heat pumps and charging points. Like my noble friend Lady Coffey, I raise the conflict between the requirement for energy efficiency for housing from housing associations, and potentially for rental homes, and the planning restrictions on listed properties and those in conservation zones, for instance.

However, we must also consider the potential serious impact on neighbours. It is easy to imagine how a six-metre extension to a terraced home could materially impact its neighbours. I also need to be consistent with my previous work in this area. As a councillor, I worked with colleagues in local government, when householder permitted development was previously extended, to ensure that a light-touch prior approval regime was set up so that this did not unduly impact neighbours. I continue to support this for some of the larger householder permitted developments.

We also need to look at the building control regime. If we are to make the planning process easier, we become more reliant on building control to enforce quality development. Building control does not cover all aspects —the classic cases being spaces for bins and parking—so there will need to be a review of building control.

I believe that there is scope to look at householder permitted development, particularly in urban areas, as a step to addressing the UK’s housing crisis, but this must be balanced with the impact on neighbours and the wider community. The Bill makes some helpful proposals to deliver more accommodation in our much-pressed housing market, but it will need further work on the details to avoid unintended consequences.

Renters’ Rights Bill

Lord Jamieson Excerpts

Tuesday 4th February 2025 Lords Chamber

[Lord Jamieson (Con)]

My Lords, I declare my interest as set out in the register, particularly being a councillor in Central Bedfordshire. As a fellow north-easterner, I congratulate the noble Lord, Lord Wilson of Sedgefield, on his excellent maiden speech, and also on his mother’s impending 100th birthday. I also congratulate the noble Baroness, Lady Brown of Silvertown, on her passionate maiden speech. I share her concerns for children. I also thank the Minister for the time that she has given noble Lords to explain the Bill. I thank the many groups and people who have written to us and sent us submissions on the Bill.

We all want everyone to have a safe, secure and affordable home. The question is whether this Bill will deliver this or whether it risks undermining a key housing sector to the detriment of landlords and tenants alike. The Minister has argued that the Government have no choice but to introduce this Bill to reform the private rented sector. However, this assertion does not hold up under scrutiny.

While the Renters (Reform) Bill was originally conceived by the previous Conservative Government to address long-standing issues in the private rented sector, in its current form the Bill risks doing more harm than good. Comparing this Bill with its predecessor, the Renters (Reform) Bill in 2023-24, we see some striking differences. The changes proposed by the current Government threaten to destabilise the private rented sector. This is a sector that has seen remarkable growth in recent years, now housing nearly 19% of all households —some 4.6 million people.

Rather than providing the stability renters need, this Bill risks exacerbating the very problems it seeks to resolve. According to Scotland's Housing Network, 16% of landlords are scaling back their supply, and 12% are considering leaving the sector altogether. Scotland shows that the overregulation proposed here has pushed landlords out of the market, reducing housing supply and leaving renters in a worse position, with the highest rent increases in the UK. While these reforms are meant to protect tenants, they threaten to leave them with fewer choices and higher costs.

The Renters’ Rights Bill has been said by many in this Chamber—including the noble Lords, Lord Best, Lord Thurlow and Lord Truscott—to risk introducing a series of provisions that are set to significantly disrupt the private rented sector. It is a well-established fact that private landlords, when faced with increased regulation, often choose to exit the market. This is not just speculation: research from the National Residential Landlords Association in 2023 revealed that one in four landlords were considering selling at least one of their properties due to increased regulation, with many citing the Renters (Reform) Bill as a major factor. According to the English Private Landlord Survey 2024, 31% of landlords planned to decrease the number of properties or sell them altogether, compared to 16% in 2018.

Get Living, a significant player in the build-to-rent sector, has expressed serious concerns about how these changes could undermine long-term investment in rental homes. Savills, Hamptons, Zoopla and others warn that the provisions in the Bill could exacerbate the housing crisis. This is a concerning trend that will directly impact housing availability. As more landlords leave the market, there will be fewer rental homes, and it will be tenants who feel the effects of this most acutely. Moreover, by reducing investment in the rental sector, these reforms could also undermine the Government’s targets for housebuilding.

The previous Conservative Government worked hard to increase housing stock, delivering 2.5 million homes between 2010 and 2024, with 1 million of these delivered during the last Parliament. If the proposed changes in this Bill push landlords out of the market, it will risk reversing the progress on housing delivery.

Further data from Oxford Economics paints a grim picture: only one in eight renters can afford to purchase a home in their area. For many, the private rented sector is the only viable option, but these new regulations are forcing landlords to sell their properties, tightening an already overstretched market. Will the Minister explain why this Bill seems to accelerate the exodus of landlords from the market? What steps do the Government intend to take to reverse this damaging trend?

An issue that has been raised by many noble Lords is Section 21 and its impact on the courts system. I was particularly struck by the words of the noble and learned Lord, Lord Etherton, and the noble Earl, Lord Kinnoull. The previous Conservative Government were clear in their approach: any abolition of Section 21 would come only after significant reform of HM Courts & Tribunals Service. This would have ensured that the court system was ready and able to process cases efficiently and fairly. Unfortunately, the Bill abandons that commitment, rushing forward with the abolition of Section 21 without first addressing the ongoing strain in our courts.

Our court system is already under immense strain. Landlords are facing significant delays when seeking possession of a property, and these delays would only worsen with the proposed changes to Section 21. The First-tier Tribunal is already overwhelmed with challenges related to rent increases; currently, it can take up to 10 weeks for the tribunal to make a decision. Introducing additional cases to this already overburdened system risks further delays, which would ultimately harm both tenants and landlords alike.

Moreover, the legislation includes provisions enabling tenants to challenge rent increases more easily. While the right to challenge unjust rent hikes is important, the process outlined in the Bill could overwhelm our already stretched court system. As highlighted by my noble friends Lady Eaton and Lord Northbrook, a system that allows all rent increases to be appealed with no downside risks flooding the court system. How will the First-tier Tribunal manage the added burden of rent appeals, when it is already struggling with its current case load?

The abolition of Section 21 repossessions means that responsible landlords will be forced to rely on the courts to process legitimate possession cases. However, as the Housing Minister himself admitted in the Bill Committee in the other place, the UK court system is “on its knees”. While the Minister correctly argues that “court readiness” is essential to the successful operation of the new system, which I assume refers to the abolition of Section 21 and the resulting shift in the equilibrium of the renters’ market, His Majesty’s Government have yet to clarify what “court readiness” truly means in practical terms. What resources will be allocated to ensure that the courts are properly equipped for these reforms? The Law Society has rightly warned that

“without investment in housing legal aid and the courts, the Bill will not achieve its aims”.

Student lets have been raised by many noble Lords. The Bill exempts purpose-built student accommodation from the requirement to end fixed-term tenancies, a provision that we agree with. However, this exemption will not apply to other forms of student accommodation, such as private rental properties where second- and third-year undergraduate students typically reside. This Government have abandoned our commitment to sufficiently carve out student accommodation, where it is essential that both landlords and tenants have the certainty of fixed-term contracts to plan for subsequent years. What about master’s and PhD students, who often require longer-term accommodation, typically in smaller, privately rented properties? According to data from accommodationforstudents.com, one- and two-bedroom properties make up one-third of all student housing. The provisions for purpose-built student accommodation should be extended to include all student properties, ensuring the smooth operation of the entire student housing market and protecting the annual cycle of student rentals.

In conclusion, the need for more homes in the private rented sector is urgent. Savills estimates that, by 2031, we will need as many as 1 million additional homes for private rent to keep up with rising demand. How, then, can we afford to risk policies that may drive landlords out of the market and make this shortage even worse? As the noble Earl, Lord Lytton, said, how do we strike the right balance between protecting tenants and maintaining a healthy rental market that supports investment and meets the needs of renters across the country? It is crucial that the Government listen to the voices of landlords, housing experts and tenants who have raised concerns about the impact of the Bill, and we intend to table amendments that address some of the most pressing concerns. Ultimately, we must ensure that the policies we put in place strengthen, not weaken, the system that provides homes for renters, while also supporting landlords, who are crucial to meeting the nation’s housing needs. The future of our rental market depends on striking that balance.

Council Tax

Lord Jamieson Excerpts

Monday 3rd February 2025 Lords Chamber

[Baroness Taylor of Stevenage (Lab)]

The social care precept was introduced by the previous Government. There is an increase in demand for social care in our demographic, and that has to be funded. The Government continue to keep under review how adult social care is paid for. At the moment, it is paid for by an additional precept on council tax for those who need social care. It is very important that we continue to support people in our communities who need it, and I am sure the noble Baroness would want us to continue to do that.

[Lord Jamieson (Con)]

My Lords, under the Liberal Democrat administration, Windsor and Maidenhead Council’s financial discipline has collapsed. The council is now seeking to impose a 25% council tax hike on residents. Does the Minister agree that local residents are paying the price of Liberal Democrat councillors failing to maintain financial discipline?

[Baroness Taylor of Stevenage (Lab)]

When I hear the party opposite criticising Labour and Liberal Democrat local councils, whose main financial problem was the economic mismanagement of the previous Government, they ought to have another think about who they are attacking.

Non-Domestic Rating (Multipliers and Private Schools) Bill

Lord Jamieson Excerpts

2nd reading
Wednesday 29th January 2025 Lords Chamber

[Lord Jamieson (Con)]

My Lords, I also pass on my condolences to the noble Lord, Lord Khan of Burnley, and his family.

While I understand the strategy of switching the burden from bricks and mortar retailers to internet retailers to support our high streets, I think this is far too blunt an instrument. I agree with my noble friend Lady Scott of Bybrook that increasing NNDR on large businesses risks damaging some of our key high street retailers, particularly anchor stores, high street cinemas and leisure, that help drive footfall. However, I would like to speak about the wider impact on growth of these measures.

This morning, the Chancellor talked about the Oxford- Cambridge arc as Europe’s Silicon Valley. I declare my interest as a councillor and former leader in central Bedfordshire, which is at the centre of that arc. I agree with the Chancellor about the potential of the arc to support economic growth and improve jobs, but this needs to be nurtured and not taxed. In central Bedfordshire, we have many world-class businesses, such as Lockheed Martin, Millbrook Proving Ground, MBDA, Nissan and Cranfield University—not to mention the potential of Universal Studios coming to our area. All of them will see significant increases in their NNDR.

As a councillor, I worked hard to support the growth of these and other businesses, yet in the past few weeks, talking to local businesses, they have made clear to me the headwinds that they are facing from national insurance increases, employment rights and changes to minimum wages, which have led them to review some of their growth plans. A potential 20% increase in NNDR risks being yet another nail in the coffin of growth, not only in central Bedfordshire—I use that as an example—but across the country.

One of the many attractions of Bedfordshire for international companies and their international staff is the excellent Bedford Harpur Trust schools, notably as they provide the international baccalaureate. Yet, here again, we see the impact of government policies of charging VAT and increases in national insurance and, now, NNDR—to that I will add the pension issues raised by my noble friends—making this option much less attractive for those businesses and their employees.

We have also previously raised the important role private schools provide for those with SEND. Just this morning, I had a council leader raise with me the issue of a parent who had sent their child to a private school and now, with the additional cost of VAT, they are seeking an EHCP so that that burden will now fall on the local council to pay the fees. Again, adding NNDR will only exacerbate this trend.

Finally, I want to touch on the hospitality and leisure sector, which will lose its discounts this year. While many small businesses will benefit from the proposed NNDR changes, larger local businesses such as Center Parcs and Woburn tell me that they will face the double whammy on NNDR, in addition to the impact of national insurance, extension of worker rights and minimum wage increases—yet more headwinds to growth. This is a Government who are focused on growth yet they seem to think more about taxing growth.

As I said earlier, this is too blunt an instrument. There is no clarity on the business rate multipliers and two little information on the impact. I ask the Minister whether the Government will commit that there will be no net negative impact on council finances from these measures and what the impact of the measures will be on high street businesses, businesses in general, jobs and economic growth.

Devon and Torbay Combined County Authority Regulations 2024

Lord Jamieson Excerpts

Monday 27th January 2025 Grand Committee

[Lord Taylor of Holbeach (Con)]

My Lords, I have spoken on many subjects in Grand Committee in this Room, and this is the first time that I have spoken on local government. In fact, there is a much better qualified inhabitant of Lincolnshire to speak on this subject—the noble Lord, Lord Porter of Spalding—but he must be away because I phoned him up at the weekend to check whether he was able to do this. However, I feel I should speak on this order because local government is, to my mind, perhaps the most important institution that affects people’s day-to-day lives. Governments talk about the big issues, but delivery of much of the Government’s policy is through local authorities, and it is very important that we get the balance of this right.

I speak as somebody who lives in an area of the countryside that is part of a small market town. I was born in Holbeach and I live in Holbeach—I live in the house that I was brought up in—so I have not moved very far, and the world has sort of moved around me, if noble Lords see what I mean. But I can see the change in local government from even when I was a boy in Holland County Council. Lincolnshire was divided into three parts, with the city, and it seemed to work because there was local interaction between citizens and the local authority. I am not talking about the councillors, but the staff of those councils were responsive to people making contact with them and telling them that there was a pothole in the road. Sure enough, somebody would come along and fix it. It was much more immediate.

There is an interesting thing in Peterborough station. An electrical board has been out of action since Christmas. The central heating in the waiting room has been out of action since that time, and there is a door that was working well before Christmas but is now closed. Fortunately, the door that was not working well before Christmas is now open. When I mention this to people, they all say, “Oh, well, it’s been reported”. How often that happens in life. If we can make local authorities really responsive to people’s convenience, we will do so much better.

I am speaking on this because Lincolnshire is a big county, and I am looking ahead at what will happen when we devolve government powers to the mayor and the mayoral authority, which is very good indeed—at least there is a bit of local knowledge there to help local government to apportion resources. But I represent a particular part that is quite removed from the Humberside end of the county. We are still very much one county. I was president of the Lincolnshire Agricultural Society and am proud to belong to it. I am proud to be a Lincolnshire horticulturalist and farmer, along with so many people in that most productive corner of the country.

I am also pleased to hear that the Humberside authorities are thinking of uniting together as a district of their own. If we are going to have three units in Lincolnshire, we will have to look at the numbers because, at the moment, I am told that 500,000 is the sort of population figure that the Government are thinking of. I hope the Government will be elastic in this area, if only to make sure that there is some sort of general practical application of boundaries to the new district authorities.

I mentioned the noble Lord, Lord Porter of Spalding. He was instrumental in setting up the confederation of East Lindsey, Boston and South Holland, where he and I come from. They have shared senior staff members of councils, co-ordinated activity and shared specialisms. We all know that a lot of the service in local government is quite specialised; if you are going to get good people, you have to pay reasonable salaries, and they are best shared if that can be done.

I hope that any new arrangement for Lincolnshire will have the north, including the Humberside, the west, including the city of Lincoln, the east and the North Sea coast, which will carry the electricity. We were talking briefly about energy beforehand, though I came in halfway through; we know that the power links to the North Sea come ashore in Lincolnshire, to be distributed through the eastern part of the county. It is also the home of the food valley, which stretches from Grimsby right down to Peterborough, the A1 and the road system that is the artery of the eastern part of the county. There is seafood transported from Grimsby and there is the production and distribution of the country’s vegetables and flowers—bulbs, to mention my own interest. We also have centres in the eastern part of the county, so getting communications right and enabling them through a combined vision of what the area represents economically is most important.

The Government are avowedly keen on growth. I support them in that venture. I hope that they set up a local government structure that encourages growth, where soil types and economic potential recommend themselves. In my view, that is how the authorities might develop in future. Surprising to say, I support this measure, as it is a good development. Local government can be reformed, but I hope that it will be in a way that brings it closer rather than further away, as much of the trend was before the last Government introduced the Act.

[Lord Jamieson (Con)]

My Lords, I am a Central Bedfordshire councillor and therefore have some interest in this, although not in these particular SIs. I echo the comments of the noble Lord, Lord Taylor, about the importance of local government. Most residents see local government services on a daily basis, not central government services. I also echo his comments and those of the noble Lord, Lord Lucas, about the unique nature of all our local areas and, therefore, how much better it is for them to be run locally, in so far as is possible, rather than centrally. In that spirit, these regulations build on the work of the previous Conservative Government; we support this important devolutionary shift, but it is also important to go further.

However, before that, I want to assess some of the proposed changes. First, on the Devon and Torbay Combined County Authority Regulations—I shall say “combined authority” for brevity—that deal was signed in January 2024 by the previous Conservative Government, Devon County Council and Torbay Council to provide powers and funding to the new combined authority to

“improve the economic, social and environmental well-being”

of people in the community, as well as to devolve further powers locally and provide wider flexibility for local action.

The Greater Lincolnshire Combined County Authority, formed by Lincolnshire County Council, North Lincolnshire Council and North East Lincolnshire Council, will have authority over transport, housing and regeneration functions in the region. It will be tasked with transport planning, local transport services and highways maintenance, with a mayor due to be elected in May 2025.

I turn to the Hull and East Yorkshire Combined Authority, which comprises Hull City Council and the East Riding of Yorkshire Council and, again, will be overseen by a directly elected mayor. The mayor will govern and drive strategic development across the region, including in areas such as transport, housing and regeneration. Additionally, the mayor will have the authority to levy taxes, such as a precept or business rate supplement, to fund those projects.

Local Government: Funding

Lord Jamieson Excerpts

Monday 27th January 2025 Lords Chamber

[Baroness Taylor of Stevenage (Lab)]

As the noble Earl said, arts and leisure services took an absolute bashing as local government funding was successively cut over recent years. The purpose of devolution is to put control for that back into local hands and to make sure that more of the money spent in Westminster gets spent in the local areas to protect the services that people really care about and feel are important to them. I hope that will include those key leisure, arts and cultural services that make life around this country so rich and wonderful.

[Lord Jamieson (Con)]

My Lords, I associate these Benches with the noble Baroness’s comments earlier.

I refer to my interests as a central Bedfordshire councillor. A recent survey published by Southwark Council revealed that 61% of councils have already cancelled, paused or delayed housebuilding projects and more than one-third have cut back on repairs and maintenance of council homes due to pressures on their housing budgets. In light of this and given the Government’s ambitions for housebuilding, will the Minister tell the House how this Government will support councils to build?

[Baroness Taylor of Stevenage (Lab)]

I have to say that it is very difficult to take lessons from the Benches opposite about local government funding, particularly in relation to council house building. The noble Lord will be well aware of the steps we have already taken to increase overall funding for local government but also that we have taken big steps to alter right to buy so that local authorities can keep 100% of the receipts they get from right-to-buy properties. We are changing the position on new properties built by local councils so they do not have to sell them at less than they built them for. We are fixing the foundations of a very broken system that we inherited from 14 years of the noble Lord’s Government.