Residential Leasehold for Flats

Lord Kennedy of Southwark Excerpts

Thursday 30th November 2023 Lords Chamber

Tabled by

[Lord Kennedy of Southwark]

To ask His Majesty’s Government what plans they have to abolish residential leasehold for flats.

[Baroness Taylor of Stevenage (Lab)]

My Lords, on behalf of my noble friend Lord Kennedy and with his permission, I beg leave to ask the Question standing in his name on the Order Paper.

Levelling Up: Project Delivery

Lord Kennedy of Southwark Excerpts

Thursday 23rd November 2023 Lords Chamber

Asked by

[Lord Kennedy of Southwark]

To ask His Majesty’s Government, following the publication of the National Audit Office report Levelling up funding to local government on 17 November, what action they are planning to take to improve the delivery of projects approved under their levelling-up agenda.

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

My Lords, I beg leave to ask the Question standing in my name on the Order Paper and refer the House to my relevant interest as a vice-president of the Local Government Association.

[The Parliamentary Under-Secretary of State, Department for Levelling Up, Housing & Communities (Baroness Penn) (Con)]

My Lords, the department has implemented several measures to support local authorities in their delivery of levelling-up projects. These include committing over £65 million for capacity support to unblock delivery issues and giving authorities greater flexibility over spending decisions. The National Audit Office report covers the progress of projects up to March 2023, and in the eight months since then the department has paid out over £1.5 billion of further funding to local authorities.

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

I thank the noble Baroness for her comments. The report from the National Audit Office makes shocking reading: it tells of money allocated but not spent, contracts not signed and projects not delivered. Can the Minister explain to the House how a flagship programme of the Government is in such a mess?

[Baroness Penn (Con)]

My Lords, the report itself highlights a number of issues that have delayed some of the delivery, including rising costs and inflation and other outside factors. That is why we are working with local authorities to address those issues. As I say, in the eight months since the report, the department has paid over £1.5 billion of further funding out to local places. We have already seen several projects completed or near completion, which are making a difference to the lives of people in those communities.

Leasehold Properties: Managing Agents

Lord Kennedy of Southwark Excerpts

Monday 17th July 2023 Lords Chamber

Asked by

[Lord Kennedy of Southwark]

To ask His Majesty’s Government what plans they have to regulate managing agents who manage leasehold properties on behalf of freeholders while being paid by leaseholders.

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

My Lords, in begging leave to ask the Question standing in my name on the Order Paper, I refer the House to the register of interests and the fact that I am a leaseholder.

[The Parliamentary Under-Secretary of State, Department for Levelling Up, Housing & Communities (Baroness Scott of Bybrook) (Con)]

My Lords, we are committed to raising standards and professionalism within the property management sector. Managing agents in England and Wales must belong to one of the two government-approved redress schemes. Leaseholders can also apply to the First-tier Tribunal to appoint a manager where there is significant management failure. We will continue to work with the industry on improving best practice, including in relation to the codes of practice. Announcements will be set out in the usual way.

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

I thank the Minister for that response. There is a desperate need for a regulator with real teeth to ensure that managing agents treat leaseholders fairly and are open about their charges; that there is a proper redress scheme in place, with real powers to take remedial action against those who rip people off; and that, in the worst cases, they can be removed from the industry. Does the Minister agree with me that that is the way forward?

[Baroness Scott of Bybrook (Con)]

I agree with the noble Lord. That is exactly what we are doing. The commitment includes raising professionalism and standards among property agents. As I am sure the noble Lord knows, the noble Baroness, Lady Hayter, and RICS, which she is working with, will meet the Housing Minister to discuss a code of practice for property agents. I thank the noble Baroness for all the work she is doing on this, and I welcome her excellent stewardship of the independent steering group as we strive to promote best practice among property agents in future.

Levelling-up and Regeneration Bill

Lord Kennedy of Southwark Excerpts

Committee stage
Wednesday 24th May 2023 Grand Committee

[Lord Stunell (LD)]

My Lords, I support the amendments in this group. We had a clear and compelling case put to us by the right reverend Prelate the Bishop of Bristol. I thank her very much for that. She was very ably supported by the noble Lord, Lord Best, who emphasised what, to me, is the really significant part of the value that would come from the passage of these amendments.

Clearly, the heritage angle, which is one that the noble Lord, Lord Cormack, dwelt on effectively, is important. However, in the context of the levelling-up Bill, I say to Ministers that the social and community impact of investment by parish councils in their local facilities is a key part of ensuring that we have some levelling up. Perhaps principally in rural and suburban areas, but throughout the country, it is absolutely normal—I would say commonplace—for church buildings and buildings for those of other faiths to be used by the local community for a wide range of community functions, such as recreational functions, learning and educational functions, and food banks, as mentioned by the noble Lord, Lord Best. I should perhaps have said by way of introduction that I am a member of the Methodist Church. Quite close to me is a Baptist church, and a significant part of its building is used as a very busy food bank; that is by no means an unusual situation.

The Minister’s letter expressed the view that this was a small issue which affected only quite a specific, niche situation. I put it to her that there are thousands of buildings which at the moment are excluded from help by parish councils and which perform valuable community functions, and where that exclusion is pointless and disabling for the development of those facilities and that community. I hope that her approach to this is gradually changing. I hope that her most recent letter gives a little glimmer of hope that perhaps she recognises the force of the arguments being deployed today, which were set out so clearly by the right reverend Prelate.

I very much hope that the Minister will offer a commitment to re-examine this before we get to Report, and, if she is able, to persuade her ministerial colleagues to table an amendment on Report that we can all enthusiastically endorse. If not, and if the right reverend Prelate the Bishop of Bristol is minded to do so, I will certainly support her in an amendment of her own on Report.

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

My Lords, I have made only one intervention in Committee, which was on my pet subject: leasehold. I will not do that today. First, I will get on the record a number of interests. I am a vice-president of the Local Government Association, the chair of a housing association in Kent, and a director of MHS Homes, as set out in the register.

I offer my full support to the right reverend Prelate in her amendments. This is one of these debates where all sides of the Committee are happy to come together. They can see the sense of the amendments and, as the noble Lord pointed out, they are easy amendments for the government to agree. There is no cost to the Government and they are passive—no one has to do anything at all. However, the amendments would allow people to do something if they want, which is the good thing about them.

I hope that, as the noble Lord, Lord Stunell, said, we will get a positive response from the Minister—at least a commitment to meet people, go back and talk to officials, and bring back a government amendment that deals with this issue and provides for clarity. That is what these amendments are all about: providing clarity on an unclear issue. I know that the Government would want to ensure that things are clear.

I should say that I was brought up a Catholic. I grew up in Elephant and Castle in south London. I would probably describe myself as a lapsed Catholic, but I was brought up as a Catholic and come from a large, Irish Catholic family. My two younger brothers and my sister regularly attended the youth club at St Paul’s, in Lorrimore Square, run by the Reverend Shaw—a wonderful man who retired a few years ago. He set up the youth club and a mental health drop-in centre. When he retired, I had become a local councillor. We went to his retirement do and you could not move in the place. There was a complete cross-section of the community—people of different faiths and of no faith. Everyone there knew what this man had done in that parish church in the Walworth area of south London. He had done everything. If you were a young person growing up in that part of south London, there was not really much else to do. This parish church had become the centre of the community. Why can it not be that if a local authority wants to support such a place, they can do so? It seems ridiculous that they cannot.

As we have said, this is about having clarity about what councils can and cannot do if they want to support different things. My experience as a councillor was many years ago, but I am conscious of the work that churches do now, as the right reverend Prelate set out herself. People in many different situations are going through difficult times and churches host different groups and organisations—people can go in just to have a cup of tea and be warm. Such places are really important in communities and, sometimes, all that is now there is the local parish church and the church hall.

I really hope that the Minister is convinced by what she has heard today. There have been many good arguments made around the Room. As the noble Lord, Lord Best, said, these amendments on their own would not do anything at all, but they would enable things to be done. I hope the noble Baroness will support them. I will leave it there.

[The Parliamentary Under-Secretary of State, Department for Levelling Up, Housing & Communities (Baroness Scott of Bybrook) (Con)]

My Lords, first, I thank the right reverend prelate the Bishop of Bristol, my noble friend Lord Cormack and the noble Lords, Lord Best and Lord Scriven, for raising these amendments. They highlight the confusion around the prohibition in the Local Government Act 1894 and therefore attempt to clarify the basis on which local authorities are able to provide support to churches and other places of worship.

Amendments 485, 505, 510 and 512 aim to do this by removing some of the wording from that Act. Amendment 504GJJ, which has been withdrawn from the Marshalled List, would have aimed to do that by providing that the powers in the 1894 Act could be used to provide support to places of worship to ensure that, where they are used to offer support and services that are of benefit to the wider community, the facilities could be maintained and operated safely and effectively by, for example, helping meet the costs of maintenance and repairs. However, the Government do not consider that these amendments would be effective in achieving these aims.

The intention of the Local Government Act 1894 was to provide a clear separation between the newly created civil parishes and what are now parochial church councils. However, the Government do not consider that it includes any general or specific provision that prohibits parish councils from funding the maintenance and upkeep of churches and other religious buildings. Parish councils have other powers that enable their contribution towards the upkeep of these buildings, if it were deemed to be within their local communities’ interest to do so. However, I understand the confusion and I thank the noble Lords who have raised these amendments. We have heard their concerns that the law may be ambiguous, and I know this is of great concern to parishes and noble Lords. I can assure them that we in the department are considering this issue carefully and will reflect on the comments made during this debate.

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

My Lords, that was, I think, half a good answer. It was not perfect, by any means.

[Lord Cormack (Con)]

It was promising.

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

Yes, it was promising. It is good that the department will look at this matter, but I hope that, as part of that reflection on the matter, the department will get the right reverend Prelate the Bishop of Bristol in and speak to her and other people. It is one thing that we are all saying that it is fine, but if the department gets legal advice that it is not fine, no one will do anything, will they? That is the basic problem we have here: there is legal advice saying this is not fine. Then people will be nervous, saying “If I do this, I will be going beyond my powers”. That will cause all sorts of problems. If there is ambiguity here but all of us agree that what has been suggested is a good thing, I really do not understand why we cannot clear up the ambiguity. I hope that we can address that. If we all agree that it is good, then let us make it absolutely crystal clear and not leave it so that we have problems with legal opinions that are different from what the Government are saying.

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Moved by

[Lord Kennedy of Southwark]

498: After Clause 214, insert the following new Clause—
“Social mobility(1) Within one year of this Act being passed, a Minister of the Crown must publish a strategy for increasing social mobility which includes an assessment, in respect of each local authority, of—(a) the number of pupils previously in receipt of free school meals now attending university,(b) available careers guidance, and(c) access to apprenticeships.(2) The strategy must consider the impact of this Act on social mobility.”Member's explanatory statement
This means a Minister must publish a strategy for increasing social mobility.

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

My Lords, Amendment 498 is in the name of my noble friend Lady Taylor of Stevenage, who has to leave early, as she has told the Grand Committee.

In a world of increasing inequality, helping improve social mobility is hugely important, as I am sure we all agree. Everyone, irrespective of their background, should be able to achieve their full potential. However, the UK has one of the poorest rates of social mobility in the developed world, which should be a concern for us all. This means that people born into low-income families, regardless of their talent or hard work, do not have the same access to opportunities as those born into more privileged circumstances. In other words, your social background still impacts on your opportunities in life.

By the age of three, poorer children are estimated to be, on average, nine months behind children from wealthier backgrounds. By 16, children receiving free school meals achieve 1.7 grades lower at GCSE. Just 7% of children in the UK attend independent schools, but 30% of all A* grades at A-level are achieved by these children. Some 32% of Members of Parliament, 51% of top medics, 54% of FTSE 100 chief executives, 54% of top journalists and 70% of High Court judges went to an independent school, compared to 7% of the population. Those figures tell us something. The transition to a green economy will also bring challenges for social mobility.

Amendment 499 in the name of my noble friend Lady Hayman of Ullock seeks to probe the disparities in cost of living between rural and urban areas. Roughly 19 million people live in England’s rural communities, some 17% of the population. Since the 1990s, Governments of all persuasions have taken the view that urban and rural areas are sufficiently different to merit different treatment in terms of public policy. However, there is a growing disconnect between urban and rural areas, with a sense of rural communities coming off second best in many areas of national decision-making and resource allocation. The last 13 years saw an austerity cuts programme to public expenditure, which exacerbated this feeling, to the point that many rural, small-town and village dwellers feel left behind and left out of national life, along with the consideration of their needs.

The decline in the provision of services, public or private, is prominent among those concerns. Some 20 years back, most small towns and villages would have had a choice of pubs, a post office, a police station, access to a doctor’s surgery, a primary school, a bank and maybe a range of shops. Most would have been on a bus route with a reasonably regular connection to large population centres, providing wider access to the facilities and services that cities and towns provide. Of course, with those connections come opportunity, aspiration and well-being. However, in many parts of Britain, especially England, those assumptions no longer hold. As I said, I grew up in central London, but I now live in West Sussex, and what surprised me was the infrequency of bus services—it is shockingly bad. If you live in a small town or village, how do you get into the bigger population centres?

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[Baroness Bloomfield of Hinton Waldrist (Con)]

My Lords, Amendment 498 in the name of the noble Baroness, Lady Taylor of Stevenage, seeks for the Government to publish a social mobility strategy. The issues raised in this debate are all indeed important and vital if we are to deliver social justice. However, they provided the rationale for the levelling up project itself, and the levelling up White Paper provides a clear plan to level up every corner of the UK, underpinned by 12 ambitious missions over 10 years and tracked by an annual report.

I also reassure noble Lords that the Office for Students has launched the equality of opportunity risk register, which will set national priorities for tackling inequalities in higher education, including geographical inequalities. It was heartening to see the recent climb up the international league tables for literacy rates in younger children in the UK, which is a hugely encouraging sign.

We are committed to ensuring that more people from disadvantaged backgrounds enter apprenticeships—a great driver of social mobility—and we are increasing the apprenticeships care leavers’ bursary to £3,000 from this August. We are also providing additional funding to support social mobility generally in apprenticeships, which includes £1,000 payments to employers and training providers who take on apprentices aged under 19 or apprentices with a learning difficulty or disability, as well as a £1,000 bursary payment to apprentices who were previously in care, as mentioned.

The Government are also investing over £18.8 million in 2023-24 to support the rollout of a network of careers hubs across the country, to help drive improvements in careers education. Schools and colleges in the most disadvantaged quartile are reporting the strongest progress.

Numerous measures in the LURB will improve outcomes and reflect better the interests of rural communities across the country. Rural communities will benefit from opportunities for increased democracy, measures designed to improve housing affordability, and improved infrastructure. The new infrastructure levy will be designed to deliver as much, if not more, affordable housing.

That really related to the next amendment, Amendment 499, in the name of the noble Baroness, Lady Hayman of Ullock. The framework set out in the Bill provides ample opportunity to scrutinise the substance of the missions against a range of government policies, including levelling up in rural areas.

As the noble Lord, Lord Foster, outlined so passionately, we know that some cost pressures, including transport and energy, can be even greater in rural areas than in urban areas. That is why the Government have, for example, offered rural energy support through alternative fuel payments and extended the subsidy scheme for buses to protect vital bus routes, helping with the cost of living and enabling people to get to where they need to affordably and conveniently. The recovery grant scheme comes in addition to government investment of £3 billion promised for bus services by 2025.

The Government are already committed to delivering an annual report on rural proofing. The White Paper trailed the publication of the second annual report, Delivering for Rural England, which was published in September 2022. It set out specific considerations for levelling up in rural areas and how government departments seek to address these through targeted approaches, where needed, as well as broader measures to strengthen the rural economy, develop rural infrastructure, deliver rural services and ensure good management of the natural environment. It also announced the launch of the £110 million rural England prosperity fund so that local authorities can support rural businesses and community infrastructure.

Amendment 504GC, in the name of the noble Baroness, Lady Blower, considers the extremely important issue of adult literacy. I should declare that I have a very personal interest in this whole area, having taught literacy in Huntercombe young offender institution for a while. The levelling up skills mission sets out an ambition for 200,000 more people to complete high-quality skills training in England each year by 2030. As part of this, we are fully funding study for adults in England who do not have essential literacy up to level 2. We have a strategy. Approximately 60% of the adult education budget is devolved to nine mayoral combined authorities and delegated to the Mayor of London, acting through the Greater London Authority. These authorities are responsible for the allocation of the adult education budget in their local areas and are best placed to understand local needs.

In the light of these efforts and commitments, I hope that the noble Baroness, Lady Taylor of Stevenage, is reassured and that her noble friend feels able to withdraw the amendment.

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

My Lords, I thank the Minister for that response. However, while listening to the response, it was easy to think, “Well, everything’s great, isn’t it? Nothing is going wrong; there are no problems”, when in fact the house is on fire. Everybody can buy into levelling up, but you then have to actually do some levelling up. It is very frustrating—we cannot equip people with the skills they need to read, to write, to get the job, to make their lives better. It frustrates me that what the Minister said suggests that there is not really a problem here and it will all be fine. We have to invest in people. That is so much of what is wrong here.

We mentioned transport services. If you cannot get on the bus to get the job, you will not get the job. I know that I am a Londoner and sound like one, but I did live in the Midlands for 20 years—in rural Leicestershire, in rural Nottinghamshire, in Nottingham and in Coventry—so I know a bit about living outside London. If you cannot connect areas of deprivation with areas of prosperity, you will not make any progress.

What worries me is that levelling up will go like the big society—do we remember that one? It disappeared after a couple of years; it was quietly pushed away. It was the big thing and all over the Tory manifesto in 2010, then it just vanished without a trace. After about two years there was never any mention of it, except by the Opposition. I worry that this Bill will become an Act but, when we look back in three, four or five years’ time, we will ask how much has really been enacted. After lots of consultation and lots of discussion, how much will have been enacted and how many regulations will have been laid?

I will leave it there and withdraw the amendment. This is such a big area that has cross-party support. We need to see more action, and things are not quite as rosy as the Minister said.

Amendment 498 withdrawn.

Levelling-up and Regeneration Bill

Lord Kennedy of Southwark Excerpts

Committee stage
Monday 22nd May 2023 Lords Chamber

The powers in this Bill streamline and simplify current requirements, which would be applied to all EIA regulations. I am aware that DLUHC is currently consulting on those proposals, including with the devolved Administrations, for new regulations to be considered next year. If the water resources EIA is on the list that we have been given for revocation in the REUL Bill, how does that work with the revision of environmental impact assessments in this Bill? I beg to move.

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

My Lords, I am conscious of the time, the fact that we have now been debating amendments for many hours and that colleagues on all sides of the Committee are tired. I think we should wrap up the business for the day.

[Baroness Williams of Trafford (Con)]

My noble friend the Minister needs to respond but, while he does so, perhaps the noble Lord, Lord Kennedy, the noble Lord, Lord Stunell, and I could have a usual channels chat.

Residential Leasehold

Lord Kennedy of Southwark Excerpts

Wednesday 17th May 2023 Lords Chamber

Asked by

[Lord Kennedy of Southwark]

To ask His Majesty’s Government what action, if any, they are taking to abolish residential leasehold before the end of this Parliament.

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

My Lords, in begging leave to ask this Question, I refer to my interests in the register and declare that I am a leaseholder.

[The Parliamentary Under-Secretary of State, Department for Levelling Up, Housing & Communities (Baroness Scott of Bybrook) (Con)]

My Lords, while I cannot set out precise details of a future Bill at this stage, the Government have been clear about our commitment to addressing the historic imbalance in the leasehold system and to extending the benefits of freehold ownership to more home owners. We will bring forward further reforms later in this Parliament.

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

My Lords, that is just not good enough. It is extremely disappointing but, sadly, par for the course. Promises and pledges have been made, and promises and pledges have been broken. Over the last year—on 20 June, 14 July, 20 July, 17 October, 12 January, 20 February, 22 February, 23 March and, most recently, 2 May—I have raised these issues and been told that the Government intend to bring

“the outdated and feudal system of leasehold to an end.”—[Official Report, 20/2/2023; col. 1444.]

We now hear from the media that that is not going to happen in this Parliament. That is just not good enough. Will the Minister take the opportunity here today to apologise to all the people trapped in the leasehold nightmare who have been let down by these broken promises, and explain to the House why we should believe these latest promises and pledges?

[Baroness Scott of Bybrook (Con)]

My Lords, as I have said before, property law is fiendishly complex. It is absolutely right that the Government take the time needed to make sure that the reforms are right. As I have said before, the Government will bring reforms to the leasehold system in this Parliament, but I cannot pre-empt the King’s Speech by confirming at this time what will or will not be in future legislation.

Leasehold Enfranchisement

Lord Kennedy of Southwark Excerpts

Tuesday 2nd May 2023 Lords Chamber

Asked by

[Lord Kennedy of Southwark]

To ask His Majesty’s Government what plans they have to make leasehold enfranchisement a simpler, more viable option for residential leaseholders.

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

My Lords, I beg leave to ask the Question standing in my name on the Order Paper. I declare my interests as set out in the register and the fact that I am a leaseholder.

[The Parliamentary Under-Secretary of State, Department for Levelling Up, Housing & Communities (Baroness Scott of Bybrook) (Con)]

My Lords, we are committed to making enfranchisement simpler and cheaper for leaseholders. We will abolish marriage value, cap the treatment of ground rents in the enfranchisement calculation and prescribe rates to be used, saving some leaseholders thousands of pounds. An online calculator will also be introduced to make it simpler for leaseholders to find out how much it will cost them to enfranchise. We are due to bring forward further leaseholder reforms later in this Parliament.

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

My Lords, there is a specific problem with any lease extension granted in blocks of flats after 14 February 2022, as they are not protected by the Building Safety Act 2022. When will that be put right? Secondly, the Minister will have seen the interview her predecessor—the noble Lord, Lord Greenhalgh—gave to the Leasehold Knowledge Partnership on 14 April, which raised grave doubts about the promised leasehold reform Bill being in the King’s Speech. Does she understand the concern and worry that has caused leaseholders, and will she bring those worries and concerns to the attention of the Secretary of State?

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[Baroness Scott of Bybrook (Con)]

We have had this question before, but I can tell my noble friend that we are trying to get the Bill here. We have a short period of time, it is a complex Bill and—I am going to be totally honest with noble Lords—it will not get here for pre-legislative scrutiny, but we will get it in shortly.

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

My Lords, can I just be absolutely clear? Are we definitely going to get this Bill in the next Session of Parliament, without a doubt?

[Baroness Scott of Bybrook (Con)]

Does the noble Lord want me to repeat it? I shall not waste time—but, yes.

Levelling-up and Regeneration Bill

Lord Kennedy of Southwark Excerpts

Committee stage
Monday 24th April 2023 Lords Chamber

[Lord Stunell (LD)]

My Lords, I give three-quarters support—I was going to say half-hearted support—to what the noble Lord, Lord Moylan, has moved by way of his amendment. The nationally significant infrastructure projects programme was quite a radical change when it was introduced. It was seen as a way of what one might call railroading—except that would perhaps be unfortunate given some of the projects—or delivering national projects which would be perpetually trapped in the local planning system should they go by the conventional route.

It is something of a planning bulldozer, and I absolutely share the concern of the noble Lord, Lord Moylan, about the expansion of Heathrow; we are on the same page as far as that goes. It is equally clear that, if a project such as Heathrow was ever to go forward, it would not survive the local planning processes, so the existence of a nationally significant infrastructure project mechanism for delivery is certainly well justified in the legislation. The question is: what happens when a project begins to fade from the priority list of the Government or, for that matter, that of investors in a private project? The noble Lord has produced two examples, known very well to him from his personal work experience and career, which illustrate the point.

I say to the Minister that surely there should be some process of project review in central government. The Built Environment Select Committee—I was a member until January—considered that in some detail, in looking at some evidence that we received in relation to reports. The committee took evidence from various parties. Who is actually in charge of the oversight of whether projects will proceed, are proceeding or are making progress? The committee was not convinced at that time that the Government had a viable and clear process for deciding that a project was or was not a priority, what that priority might be or what its consequences might be. The idea that there is a national pipeline, with projects neatly lined up going in at one end and coming out completed at the other, is fanciful. However, that is the way that the thinking, and often the public expression, about having a national infrastructure plan is expressed.

I am with the noble Lord, Lord Moylan, and this amendment, but I see it much more as being about hearing from the Government that they have a review process, that the review process is capable of taking a hard decisions, and that, when it takes a hard decision, it makes it operational on the ground so that we do not have huge areas, such as those around Heathrow, that are blighted. Indeed, on the peninsula on the Thames estuary, to which the noble Lord, Lord Moylan referred, progress is going in no direction. In the presence of a Section 35 designation, nobody else can go there either. It is essentially a dead development area, which I would have thought the Government would be anxious to avoid.

I am keen to hear what the Minister believes the mechanism is and whether, in the judgment of the Government, it is effective. If it is effective, it should be quite easy to answer the question put by the noble Lord, Lord Moylan, on how long it will be before the Ebbsfleet peninsula is de-designated. I suspect that it would be difficult for the Minister to de-designate Heathrow at the Dispatch Box today for a variety of reasons, but I hope that it is clear the direction from which I am coming, and that the Minister in replying can give us some satisfaction on this before we proceed further.

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

I will come in very briefly. I certainly see the point of the amendment tabled by the noble Lord, Lord Moylan, and of the three-year review. I am not convinced that yearly after that is necessarily the right way to go; it could be a longer period between the reviews. However, I see the point he is making, and the problems it causes if things do not happen in an area.

I will leave it there, other than to say that I have always been a backer of Heathrow expansion. I want to put that on record because we have had a couple of people opposed to it. I think it would be good for the economy and that we should get on with it.

[Baroness Hayman of Ullock (Lab)]

My Lords, I thank the noble Lord, Lord Moylan, for his amendment and for enabling a short debate on NSIPs, because I think it is pretty important.

I ought to say that, before I was elected to the other place, my job was to work on various national infrastructure projects, or NSIPs—when I started working on them, they were not called that, of course, but that all changed—mainly around energy and water. I remember vividly when the new regime came in, back in 2008, under the Planning Act. At the time, it was a big change but very welcome because, as people have said, projects just got stuck all the time. As well as establishing statutory timescales and a streamlined DCO process, it brought more attention to the importance of public consultation. This helps local communities to understand why a project is happening near them and can unpick some of the problems and help move projects on.

It is worth pointing out that, since the NSIP system came into force in 2010, 113 transport, energy and wastewater projects have been considered, which shows a huge difference from the system we had before. It has sped up the planning process between submitting an application and the DCO being granted. We know that in the national infrastructure strategy in 2020 the Government committed to the NSIP reform programme, which aimed to speed up timescales by up to 50% for projects entering the system from the end of this year. It is really good to see this included in the levelling-up Bill, because projects can still get horribly stuck.

One that springs to mind from personal perspective is Hinkley Point C. I think that I started working with National Grid on the connections into Hinkley Point C in 2007, and one of my jobs was to do the timeline for the project. Every six months I would add another year or two on—and so it continues. It is getting there, but it is many years behind, and the trouble is that you then have an enormous amount of extra cost. Anything that can be done to support that fast-track consenting that the Bill suggests—faster post-consent changes—is really to be supported.

Levelling-up and Regeneration Bill

Lord Kennedy of Southwark Excerpts

Committee stage
Tuesday 18th April 2023 Lords Chamber

[Lord Lansley (Con)]

I was hoping that where this occurs, the Secretary of State—not just the Secretary of State for Levelling-Up, of course, but all Secretaries of State—would consult the regulators about whether and how they can accommodate this and, if necessary, use the power here to make regulations that might impact on, for example, water, electricity or transport legislation.

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

My Lords, I thought it was a very interesting amendment, and it reminded me of when I was a very young councillor, a very long time ago now, on Southwark Council, and we were attempting to finish off the development of Burgess Park. We had all sorts of problems with the statutory undertakers of various facilities in the area in terms of getting them to do their work. I see the point he is making. We had the devil’s own job to get the various organisations to co-operate with the council. We needed to improve the park, and we were having all sorts of problems with BT, the water companies and everybody else. We really struggled. Development of the park was held up because we were not getting that co-operation. Comparatively, that is quite small scale, but it is the same sort of thing. We wanted to build a better amenity for the community, but it was held up because of less than helpful work from some of the statutory undertakers in the area.

The amendment has merit, and I hope we will get a reasonable response from the Minister. I was obviously sorry I was not in earlier, because I heard that leasehold came up. I am very disappointed that I did not get in on that. I will not miss my chance on that when it comes up again. The amendment raises an important point. I see lots of development going on in London, and the role of the regulator with the statutory undertakers is important.

[Baroness Hayman of Ullock (Lab)]

My Lords, as I just said when I asked for that clarification, this is a really interesting amendment. One reason I am particularly interested in it is that, not only before being elected to the other place was I a local councillor for some time, but my job was working on major infrastructure development—in my case, particularly in the energy and water industries. So I see this from both sides. There are a number of issues around investment intention and delivery, how developers work with local authorities, how they work with the regulator and how, often, it can be not as straightforward as you would expect to deliver a major infrastructure project in industries such as electricity and water, for example.

One of the reasons I asked about the role of the regulator and how that would work is that an issue we found when developing new projects—for the national grid, for example—was that if you are going to spend a lot of money on large investment projects, you need it to be signed off by the regulator, which needs to agree the need case for that particular investment. The problem is that the need case can change. A project that I was working on stopped and started over and over again for about 10 years because the national grid would apply to the regulator, Ofgem, which would say, “Yes, you need X amount of supply, go ahead and build that pipeline, get your substation sorted”, and so on. We would do all the community consultation and work with the local authority, then 12 months later the national grid would put its financials and the need case to the regulator, which would say, “Well, now this has happened, you don’t need it any more”, and everything would be put on ice.

One of the issues around planning for major infrastructure is how you stop the huge waste of money with all the stopping and starting of projects. I know that this amendment does not particularly look at that, and I know that we will come to NSIPs later in the discussion, but this amendment gives us an opportunity to start considering how we make the development of infrastructure much more efficient and how we make developers, local authorities and their investment intentions work together in a much more constructive fashion during the planning phase.

I welcome the fact that this amendment has been tabled, because these areas are not discussed enough unless you have been involved in this and seen the tripping points and how money is wasted. We talk a lot about how, if a utility provider has to spend money to do something, the money goes on bills, but if things were dealt with more efficiently in the first place, including by the regulator and in the relationship with local authorities, maybe we would save money instead.

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

I just want to make one final point—I am going down memory lane now. When I was a very young councillor, one of my first roles was as chair of Southwark Council’s highways committee. There were various issues to deal with, such as the work of the statutory undertakers. I found it very frustrating. The council would resurface a road, and along came the water board to dig the whole road up and put the new water infrastructure in. That was a very small thing, but even so, you would spend all this money, and it all went to ruin.

The Horne report, as I think it was called, came out in the 1980s. It tried to deal with this matter, and legislation followed to try to achieve better co-ordination. That was at a very local level, whereas the noble Lord, Lord Lansley, was talking about bigger stuff. But at all levels, different bodies have different responsibilities and should co-ordinate the work they do where they can in order to bring things together.

I look forward to the Minister’s response.

[Baroness Scott of Bybrook (Con)]

This has been a very interesting debate. I remember when I was a council leader how frustrating it was when utilities dug up my lovely roads the week after and did not tell me they were doing it. However, things have probably changed slightly since we were in those positions.

I thought it might be interesting to reflect on what Clause 93, which is where this comes from, and which introduces a requirement to assist in plan making, actually says. The Explanatory Notes state:

“The clause is intended to support more effective gathering of the information required for authorities producing”


a range of plans, including local plans. It achieves this through placing

“a requirement on specific bodies”

with public functions

“to assist in the plan-making process, if requested by a plan-making authority”.

This could consist, for example, of providing information to the relevant authority, or assisting in identifying appropriate locations for infrastructure. That is important, because that is the first push by government to require these companies to work with us.

Amendment 239A addresses legislating for subsequent regulations regarding the link between infrastructure providers who become aware of significant implications for their services as a result of plan-making activities, and a requirement to inform the relevant regulator in order to make provision for any necessary investment. I applaud my noble friend Lord Lansley for raising this issue, as it is an important aspect of joining up the planning system and the provision of suitable infrastructure. However, we believe the amendment is not necessary—wait for it—because the relevant regulations could already consider matters such as notifying regulatory bodies of infrastructure providers. Those regulations will, of course, follow after the passage of the Bill.

Regarding the amendment’s provision for meeting the reasonable requirements identified in a plan, we must be careful in drawing up such regulations that provisions do not cut across or duplicate the provisions of the other multiple legal and regulatory frameworks that govern the operation of the kind of infrastructure providers that my noble friend has in mind. Therefore, while I have a good deal of sympathy with the general point raised, the Government cannot accept the proposed amendment, but will want to be mindful of these considerations while drafting any relevant regulations. I hope that, with that explanation, my noble friend will withdraw the amendment.

Leasehold Reform

Lord Kennedy of Southwark Excerpts

Thursday 23rd March 2023 Lords Chamber

Asked by

[Lord Kennedy of Southwark]

To ask His Majesty’s Government when they intend to introduce legislation to end the residential leasehold system.

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

My Lords, in begging leave to ask the Question standing in my name on the Order Paper, I refer the House to my registered interests and the fact that I am a leaseholder.

[The Parliamentary Under-Secretary of State, Department for Levelling Up, Housing & Communities (Baroness Scott of Bybrook) (Con)]

My right honourable friend the Secretary of State set out in the Commons his intention to bring the outdated and feudal leasehold system to an end. The Government wish to extend the benefits of freehold ownership to more home owners. That is why we have committed to end the sale of new leasehold houses and to reinvigorate commonhold so that it can finally be a genuine alternative to leasehold. We will bring forward further reforms later in this Parliament.

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

My Lords, I thank the Minister for her response. The residential leasehold system is not fit for purpose. The Government need to make significant progress in this Parliament, as they promised. We are running out of time, and the purpose of my Question today is to seek absolute clarity. Will the Bill we are going to get in the next Session of Parliament abolish residential leasehold as a tenure? The answer is either yes or no.

[Baroness Scott of Bybrook (Con)]

Leasehold—the noble Lord is not getting a yes or no—is increasingly seen as an outdated form of home ownership and, as I said, the Secretary of State has set out his intention to bring this outdated and feudal tenure to an end. I cannot set out the precise details of the future plan at this stage. However, the Government are committed to creating a fair and just housing system that works for everyone, and we are taking forward a comprehensive programme of reform to end unfair practices in the home ownership market by reinvigorating commonhold, which will also give developers and buyers of flats a genuine alternative to leasehold.

--- Later in debate ---

[Baroness Scott of Bybrook (Con)]

I will write to the noble Lord with all the details of those conversations. They are being had, but I will give him more information when I write.

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

My Lords, can I just draw the Minister’s attention to some of the excellent Private Members’ Bills, including my own, which seek to address some of the issues that the Minister herself wants to address?

[Baroness Scott of Bybrook (Con)]

I certainly hope that we get our Bill in before the noble Lord’s.