Leasehold and Freehold Reform Bill

Debate between Lord Khan of Burnley and Baroness Pinnock

Committee stage
Wednesday 24th April 2024 Lords Chamber

[Baroness Pinnock (LD)]

I thank the noble Earl for that intervention, because he is right in many cases. I am not a lawyer, but I know that the 1925 property Act made a huge change away from the old system, which was feudal at that point, and modernised property legislation. This Bill may do the same. In some instances, as we have heard this afternoon, it will have big consequences—for freeholders, in the context of this set of amendments. I accept that maybe there ought to have been—as we heard on Monday from the noble Lord, Lord Young of Cookham—a draft Bill on commonhold. Maybe it requires an in-depth, cross-House, cross-party committee to get into the detail, rather than the 300 or so pages of the Bill that we have in front of us, in order to get to grips with the consequences of what is being proposed.

I go back to the principle, and the principle has to be right. We are trying to rebalance the rights between freehold and leasehold. There is frequent talk on the Conservative Benches that the basis of Conservative philosophy is a property-owning democracy, but leaseholders will not be full participants in that until these changes are made. So it will be interesting to hear what the Minister has to say with regard to this very challenging debate.

[Lord Khan of Burnley (Lab)]

My Lords, this has been a more wide-ranging debate than was anticipated at the beginning of the group. The noble Lords, Lord Howard and Lord Moylan, made some interesting points in introducing their amendments, and it is for the Minister to clarify and address her noble friends’ concerns. All three amendments in this group attempt to make changes to Schedule 4, which is where the market- value element of the premium for any enfranchisement claim is determined.

I listened to the noble Baroness, Lady Fox of Buckley, in relation to the European Convention on Human Rights. Although we have differing views on that, it is interesting how legislation and the regard for international law are debated in different debates in this House—without pinpointing any noble Lord in particular.

The noble Baroness, Lady Deech, laid out and stipulated the complexity of the issue as a teacher in property law, while the noble Lord, Lord Thurlow, as a student of property law, made some interesting points about complexity and about working and bringing change in a fair manner.

In conclusion, I ask the Minister what consideration the Government have given to the principles of grandfathering for leases of various lengths and other conditions when developing the Bill? For example, in the instance of a lease of a very short length, when the Bill becomes law, what are the ramifications of the Bill as it is written? Do the Government think that some shorter leases are going to be treated in a way that may be fairer on wider principle but do not seem appropriate, given the shorter lengths? If so, did they consider any mitigation?

I finish by referring to my noble friend Lord Truscott, who advocated in a diligent manner the ending of marriage value and talked about the wider unfairness in leasehold properties. I look forward to the Minister’s response.

--- Later in debate ---

[Baroness Pinnock (LD)]

My Lords, for me, this is a very technical set of amendments, but they are very important. As we have heard, this issue can have significant implications.

I always go back to first principles. One of the aims of the Bill is to make enfranchisement cheaper than it is currently, and so more readily available. However, as we have heard, that will entirely depend on the deferment rate and how it is set. My understanding was that the current deferment rate was set by the Court of Appeal in 2007, as the noble Lord, Lord Young of Cookham, said. The debate is around whether it is right for that to continue; whether another process should be used, such as that proposed by the noble Lord, Lord Borwick, in his amendment about using the bank rate as a base for setting a deferment rate; or whether, as in the Bill, the responsibility is passed to the Secretary of State to determine the deferment rate. I have to agree with the noble Lords, Lord Moylan and Lord Young of Cookham, that the latter does not seem right.

When I was investigating the deferment rate issue, I noticed that Homehold Services Ltd gave evidence to the Commons Public Bill Committee that was very telling. It criticised the fact that the “applicable deferment rate” was referenced throughout the Bill

“without specifying what this will be”.

It provided an example of what effect a change in the deferment rate could have on the cost of enfranchisement. It said:

“A lease extension … on a £200k flat with 80 years unexpired and no ground rent would be c. £4,000”.


That is the example given by Homehold Services Ltd; as it is one of the experts, I thought it might be right. It continues:

“If the deferment rate was reduced from 5% to 4%, the premium would increase to c. £8,500. At 3.5% it would be … £12,000”.


Those small changes in percentages have very high consequences for the leaseholders. This is important—that is what the evidence told me when I read it.

The argument from Homehold Services Ltd was that the deferment rate must be set no lower than that set by the appeal judgment in 2007. Otherwise, the consequence is that the rate can escalate considerably, as the noble Lord, Lord Moylan, pointed out. The cost of enfranchisement would increase, removing the ability of many leaseholders to continue with the process—contrary to one of the objectives of the Bill. Can the Minister say what consideration the Government have given to the deferment rate?

The noble Lord, Lord Young of Cookham, said that the Chancellor’s department has had a consultation on this and come up with some figures. Why are those not being adopted in this instance to set the rate in the Bill? As we have heard, it is very important to know exactly what the deferment rate will be. I do not believe that it is satisfactory to leave the applicable deferment rate to be set by a statutory instrument some time in the future. Surely, if the Government’s intentions are as they are set out in the Bill—to make it cheaper for leaseholders to enfranchise—one of the key rates must be this one. Therefore, I would have thought that we would want to see it set during the course of this Bill, rather than wait for a statutory instrument.

I have a lot of sympathy with the arguments that have been made by the mover of the amendment and others about the need for certainty here, rather than a principle and uncertainty as to the exact figure at which the deferment rate will be set.

[Lord Khan of Burnley (Lab)]

My Lords, I will speak to Amendment 42 in the name of my noble friend Lady Taylor of Stevenage, which was well supported by my noble friend Lord Truscott in his earlier remarks.

Deferment rates are a phenomenally complex area to understand, and the standard valuation method in Schedule 4 is extremely technical. The Law Commission set out options. It did not make recommendations, but the Government have chosen to allow the Secretary of State to prescribe the applicable deferment rate. I thank the noble Lord, Lord Borwick, for his contribution and for seeking to make the process for setting the deferment rate more efficient and asking for more clarity and certainty.

Our amendment is clear and would ensure that, when determining the applicable deferment rate,

“the Secretary of State must have regard to the desirability of encouraging leaseholders to acquire their freehold at the lowest possible cost”.

We understand that the 2007 Cadogan v Sportelli judgment, which has broadly set deferment rates, was made in the context of 0.5% interest rates. If the Government are minded to remain of the view that the Secretary of State should fix the deferment rates, how best should they do that? Although it may work in London, what would need to be taken into account for other parts of the country? Is there a need to set multiple rates for different parts of the country to deal with the variations?

--- Later in debate ---

[Baroness Pinnock (LD)]

My Lords, I congratulate the noble Lords, Lord Young of Cookham and Lord Berkeley, on exposing and exploring the exceptions to the general rule in the legislation and its application. If we live in a democracy, the rule of law should apply to everyone without heed or hindrance, so I am grateful to both noble Lords for bringing this to the attention of the House. I hope that when the Minister responds she will be able to confirm that the Bill will apply to the Crown Estate and the Duchy of Cornwall, because it ought to.

[Lord Khan of Burnley (Lab)]

My Lords, I rise briefly to thank the noble Lord, Lord Young of Cookham, and my noble friend Lord Berkeley for providing the detail, with diligence and eloquence, in calling for what the noble Lord, Lord Young, called a level and equitable playing field for all leaseholders in that situation, particularly in relation to Crown land. I want to press the Minister on getting information from the Government about to what extent Crown and Duchy of Cornwall land would be affected by the amendments, and on providing clarification on the important and pertinent points that both noble Lords raised.

Local Government (Structural Changes) (Supplementary Provision and Amendment) Order 2023

Debate between Lord Khan of Burnley and Baroness Pinnock

Monday 23rd January 2023 Grand Committee

[Baroness Pinnock (LD)]

My Lords, I start by reminding the Committee of my interests in the register: I am a vice-president of the Local Government Association and a serving councillor on Kirklees Council. I thank the Minister for her opening remarks explaining this statutory instrument. As she explained, these are consequential changes from the creation of the new unitary local authorities of Somerset, North Yorkshire, Cumberland, and Westmorland and Furness.

The key issues that I want to ask a few questions about relate to pension funds and housing capital finance. Of course, the changes proposed have to be made to ensure an equitable division of liabilities for pension funds and capital finance debt. My questions relate to the way in which these decisions are being made. Will they be transparent? Are the external auditors of the existing local authorities involved and, if not, why not? External auditors can often make independent assessments, particularly of pension liabilities, and are able to advise councils. I think that their advice would be helpful.

I have a further question on the creation of the two local authorities in Cumbria and the manner in which the transfer of their pension funds will be agreed. The Minister explained that it has been agreed that Westmorland and Furness council will administer pension funds on behalf of the two new councils. According to the Explanatory Memorandum, this council will determine the proportions of transferred pension fund assets and liabilities. My understanding is that Westmorland and Furness must take advice from the other new unitary council, Cumberland, but I would like more information about that, because nothing creates more of an argument between councils than questions of who has to take on liabilities.

The two councils may be able to make an amicable agreement, but what if they are not able to do so? The Explanatory Memorandum says,

“In coming to a fair determination on these matters, the Order provides that Westmorland and Furness must take advice from an actuary”—


that is good—

“and consult Cumberland Council.”

If I were a member of Cumberland council, I would want a bit more than being consulted. I would want to be sure that there was proper agreement between the two councils and not just consultation.

Can the Minister say whether there is an opportunity in this process for, in this instance, Cumberland council to appeal to the Government if there is no agreement on the way in which pension fund liabilities are divided between the two authorities? As the Minister is aware, pension fund values can fluctuate significantly across even a few years, and liabilities can suddenly become very large if there is a new actuarial assessment, so budgetary provision for pension funds can make a significant call on a councils’ funding arrangements. This is why I am raising these points, and I hope the Minister can give me reassurance on them.

There is a similar argument in relation to how the debt finance from housing capital funds is to be passed on from, in this case, the existing district councils to the new unitary council and across all four of these new councils. The Explanatory Memorandum is not clear that debt allocations will be in relation to previous activity, rather than there being a simple pro rata division, which would not be fair on some of the council tax payers. For example, there will be councils—I know of one in Somerset—that no longer have any housing capital finance debt. Will they be asked to pick up a share of other district councils’ debt? If so, is that fair? Those are my questions. I am sure that the civil servants will have looked into this and will be able to give me an answer, but I would like it on record.

With those comments and questions, I look forward to the noble Baroness giving me an answer. If she cannot, I am quite happy to have a written response.

[Lord Khan of Burnley (Lab)]

My Lords, I declare my interest as a serving councillor in one of the finest counties in the country, Lancashire, contrary to what the noble Baroness, Lady Pinnock, might think. I apologise: I have a cough, so bear with me. I blame all of the departmental SIs that they keep bringing out; they affect my throat pretty badly.

The Minister spoke in depth about this technical legislation, which takes minor steps to help to create new councils in Cumbria, North Yorkshire and Somerset. The instrument includes provision in relation to ceremonial matters, the transfer of pensions, exit payments, fisheries and conservation—technical and important areas. It is a pleasure to follow the noble Baroness, Lady Pinnock, who has a wealth of experience. She asked many of the questions that I wanted to ask, but I have a few more. Although we will not oppose this, we on these Benches want to see what happens in the Commons—I am trying to work it out, but I think it has not been there yet. When does the Minister foresee this happening?

This has been debated at some length, as the Minister mentioned, so I will not go through the arguments again, but I will add some probing questions of my own to those of the noble Baroness. Will the Government bring forward any further legislation to enable the establishment of these new councils? Have the Government consulted trade unions on the provisions relating to pensions and exit payments? On the noble Baroness’s point about the independent auditors, what is the specific nature of the consultation that the Minister had with them? Did they speak about any concerns or pitfalls?

Have the Government done further research on previous experience of this anywhere in the country, or is this the first of a set of new councils? These councils are very different, geographically and culturally. Councillors in local district councils will tell you that we all have our own identities, ways of working and cultures, so I want to see the feedback that we received from those councils.

Lastly, what will happen in terms of reviews and monitoring to keep an eye on this? In the current economic climate, the markets are all over the show, given the famous Budget a few months ago. What is the plan B, particularly for pension funds, which were mentioned, if things deteriorate?

Building Safety (Leaseholder Protections) (Information etc.) (England) Regulations 2022

Debate between Lord Khan of Burnley and Baroness Pinnock

Tuesday 19th July 2022 Lords Chamber

[Baroness Pinnock (LD)]

My Lords, it is always a pleasure to follow the forensic approach of the noble Lord, Lord Young, to the details of any piece of legislation but particularly this statutory instrument. It is important, as he pointed out. At this point, I again remind Members of my interests as a councillor and a vice-president of the Local Government Association.

The principle of this SI is positive news for leaseholders. As we have heard, in blocks of five or more storeys or above 11 metres, the news is good. I want to ask the Minister something, although I appreciate that she may not be able to answer all our questions; perhaps she could just write and confirm. Can she confirm that the very different funding packages, which are outlined partly in the Explanatory Memorandum and in more detail in the impact assessment, will fund all the work that is going to be required? The impact assessment makes it clear that the Government have no idea of the extent of the non-cladding remediation work that will have to be done. That is not a surprise because, until you take the cladding off, it is not clear what needs to be done. It would be good to know that all that work is covered by the various funding packages that have been put together. I am pleased to see that the measures include protecting leaseholders from having their service charges raised to fund some of the remediation costs. So there is positive news in this SI but, as the noble Lord, Lord Young, has said, there are questions that remain.

I will continue to raise questions about those leaseholders and tenants in blocks of four storeys or fewer, or under 11 metres. They may still have flammable cladding or fire safety defects in their blocks. What assurance can the Government give us, because they are excluded from this SI, that they will be able to sell their properties at a fair price even if no work is done, because that is what the Government are anticipating? The risks are low, and no work will be needed; therefore, they will still be able to have a fair price for their properties. We have never seen a risk assessment for those who live in properties below 11 metres in terms of fire safety. Again, it would be good to see that. We have been told the risk is lower, but how low is it? What is the risk?

The second big thing is the timeliness of this remediation work. My Twitter feed is full of concerns from leaseholders as cladding is removed, plastic sheeting is put round and then no work is done for six months. That is not acceptable. It has been five years since the dreadful Grenfell tragedy exposed all these construction failures. Leaseholders and tenants have been living in a state of anxiety and concern since then through no fault of their own, as I and many others have constantly said.

The impact assessment published alongside the SI makes it clear that there can be no assessment of the value of fire safety remediation to be done as there is no adequate data. What then can the Minister say to leaseholders and tenants about how quickly the Government anticipate the work being concluded? If the Minister is able to provide regular updates of remediation work, that would be very welcome.

Finally, there have been some reports of some developers challenging the extent of their liability. What assurance can the Minister provide on the deals with the 45 developers referenced in the impact assessment? If the developers take that to court, are the Government fully assured that they will lose? Otherwise, the whole funding package for remediation work will fall apart. I hope that the Minister, who has been put in this impossible position, can perhaps write and let us have some answers to those questions.

[Lord Khan of Burnley (Lab)]

My Lords, the Building Safety Act made provisions for the remediation of certain defects to buildings following the Grenfell tragedy and, in certain circumstances, gave protections to leaseholders from the costs. The regulations before the House make provisions for how leaseholders can secure those protections. Labour welcomes these regulations and, throughout the passage of the Act, called for leaseholders to be better protected from the costs of fixing historic defects to their homes.

I must say to the Minister that just as the noble Lord, Lord Young of Cookham, the noble Baroness, Lady Pinnock, and the Joint Committee have raised concerns, we are concerned about the rushed nature of these regulations today. It spells chaos, but when you have had 60 Ministers resign, including the Minister for this department, I understand what is going on here.

We want to ask the Minister to be more clear about how the scheme will operate. Given that many leaseholders are still living in buildings with extensive defects, this should include urgent information on when it will be fully operational. There are also still technical questions remaining over how retrospective protections will come into force, especially given that the Cabinet Office guidance makes it clear that you cannot implement retrospective law unless the Attorney-General and Solicitor-General have both approved it.

As leaseholders continue to suffer without any real guidance or information, Ministers must act with great urgency to give people security in their homes and ensure that there are no further delays. We on these Benches support this measure today. However, we have concerns about the rushed nature of bringing it through. What continuing conversations and consultations will the Minister have with the Joint Committee to ensure that its concerns are addressed?

Local Authority and Combined Authority Elections (Nomination of Candidates) (Amendment) (England) Regulations 2022

Debate between Lord Khan of Burnley and Baroness Pinnock

Tuesday 28th June 2022 Grand Committee

[Baroness Pinnock (LD)]

My Lords, I repeat the interests that I stated in the discussion of the previous statutory instrument as a councillor and a vice-president of the Local Government Association. I welcome the addition to the disqualification criteria of anyone who is on the sex offender register. I note what the Minister said, which is also in the document, that, although we are discussing the consent to nomination for mayoral candidates, this has been laid as a negative instrument to include councillors at all levels, including in London. I welcome this.

The Sexual Offences Act was passed in 2003 so why has it taken nigh on 20 years to get what would for everybody be an obvious disqualification criterion included on the consent of candidates form? What has it taken 20 years? I was lobbied by a sitting councillor in the north of England about a parish councillor who was put on the sex offender register. There was no way of disqualifying them. I remember sending Written Questions to the appropriate Minister at the time seeking some action on behalf of the Government to rectify this error because, whatever we think about the situation, people will not stand if they are on the sex offender register. If they have already been elected, they will not be disqualified if the criterion does not exist. That is what happened in this case. If you are elected to public office, you have authority and access to institutions that are not necessarily available to others. If you are on the sex offender register, that brings an additional risk to members of the public. Why has it taken 20 years when my little network of folk knows of an example where a disqualification should have occurred but could not occur because of this lack of action by the Government?

I have a second question, which I know the Minister will be happy to answer. We have this SI for council and mayoral elections, including for combined authority mayors, but what about Members of Parliament? Why is there not an SI that changes the consent to nomination candidates’ form for Members of Parliament? They have even greater status and access to institutions than a councillor or a mayor. Why is that not here? I gently reference the fact that, currently, a number of Members of Parliament are being investigated about complaints of sexual harassment or offences. That would seem to me to indicate that we—those of all parties and none—have got to be more aware of the folk that we ask to stand for public office. Here is a way, by including this criteria in a parliamentary candidates’ consent to nomination, to provide that bar and give protection to the public.

I clearly support what is here today but I have questions for the Minister. I think that he is now trying to find answers to them; I look forward to those.

[Lord Khan of Burnley (Lab)]

My Lords, I again refer your Lordships to my entry in the register, stipulating that I am a local councillor in Burnley Borough Council.

This instrument will update the candidate consent to nomination forms to reflect the very welcome changes introduced by the Local Government (Disqualification) Act 2022, to which the Minister referred. An overwhelming majority of local councillors, mayors and mayoral candidates serve their communities to the best of their ability in the spirit of public service and public duty. I have done so for 15 years as a local councillor. I know that the Minister served as a council leader, as did the noble Baroness, Lady Pinnock.

However, when individuals fall short of the standards we expect from elected representatives we must ensure that action can be taken to remove them from office and, importantly, prevent them standing in the first place. Labour supported the associated Private Member’s Bill, with my honourable friend the shadow Minister, Jess Phillips MP, stating that

“it is important that this change is made in relation to all representatives, but with a special focus on those who act as corporate parents.”—[Official Report, Commons, Local Government (Disqualification) Bill Committee, 1/12/21; col. 4.]

It is great to have some cross-party agreement on what is quite a sensible thing to do. It is vital that we uphold the best standards in public life at all levels of government. I echo my noble friend Lord Jones’s comments. He spoke about the extra effort and hard work that has gone on behind the scenes to get this here.

I shall finish by asking the Minister a few questions, in the spirit of previous speakers. Are any further instruments necessary to implement provisions of the Local Government (Disqualification) Act 2022? Finally, can he confirm whether these measures will be in force for any upcoming local authority by-elections? I look forward to his response.

Local Government (Exclusion of Non-commercial Considerations) (England) Order 2022

Debate between Lord Khan of Burnley and Baroness Pinnock

Tuesday 28th June 2022 Grand Committee

[Baroness Pinnock (LD)]

My Lords, I draw attention to my relevant interests as a councillor on Kirklees Council and as a vice-president of the Local Government Association. I support the terms of this statutory instrument, which, as the Minister said, is a reaction to the heinous acts of what has become a murderous Russian regime that is directing its unrelenting firepower on the citizens of Ukraine. As a result, it is incumbent on us to do whatever small act we can to reduce links that might enhance businesses based in Russia or Belarus.

Following on from the questions asked by the noble Lord, Lord Jones, does the Minister know, or can he find out for us, the total value of local government business currently placed with Russian or Belarusian businesses? If he does not have that information, will he write to us and perhaps put the information in the Library? People would widely welcome that information, I think.

When I saw this SI, I thought it demonstrated how overcentralised we have become that we must have secondary legislation to enable local government to make decisions about where it places its contracts. What the Minister said—that there was pressure from local council leaders on the Government to enable this action to take place so that local authorities did not open themselves to legal challenge—proves my point. It spoke to me. For goodness’ sake, precious government time has had to be spent on drawing this measure up so that councils can make the sane and sensible decision to stop making new contracts with Belarus and Russia. We need to change that. Perhaps we will get another SI from the Minister in future just to release councils from this burden of insensibility, but clearly I totally agree with what is contained in this order.

[Lord Khan of Burnley (Lab)]

My Lords, first, I refer noble Lords to the register, which details that I am still a local councillor in the finest borough in the country, Burnley Borough Council. I thank the Minister for his speech outlining the sensible and pragmatic proposal before us, which responds to the sector and ensures that we show our solidarity at not only the national government but the local government level across the United Kingdom.

I am pleased to say that we on these Benches strongly support this statutory instrument. We support the Secretary of State and the Government giving local authorities the flexibility to make the decisions that are right for their localities. It is the right thing to do. We have continuously called on the UK Government to move faster and harder on economic and diplomatic sanctions against Putin’s barbarous regime. Too often we have lagged behind the EU and the US, while some promised measures have yet to be implemented. Ministers need urgently to introduce a new US-style law to act against those who act as proxies for sanctioned individuals and organisations. Supporting this statutory instrument further demonstrates that our support for Ukraine at all levels of government remains undiminished. The UK and our allies have shown remarkable strength and unity in response to President Putin’s invasion of Ukraine. We will not be party to funding his war machine. Noble Lords have spoken with great solidarity in relation to the situation in Ukraine and supporting the order.

Having listened to noble Lords—in particular my noble friend Lord Jones, who, like the noble Baroness, Lady Pinnock, asked some excellent questions—I want to ask the Minister a few questions of my own in the same spirit. How has the department engaged with local authorities to make them aware of these new powers? Will the Minister encourage local authorities to exercise these powers? If so, how? What assessment has the department made of the level of contracts in the public sector with Russia and Belarus?

I just want to pick up on the point made by the noble Baroness, Lady Pinnock, about highlighting the challenge of overcentralisation. Like the Minister and the department for levelling up, we must look to ensure that, rather than responding after pressure from local authorities, we lead from the front so that local authorities are not put in difficult positions. I look forward to the Minister’s response.

Building Safety Bill

Debate between Lord Khan of Burnley and Baroness Pinnock

Committee stage
Wednesday 2nd March 2022 Grand Committee

[Baroness Pinnock (LD)]

My Lords, it was the safety failure of cladding on Grenfell Tower that resulted in 72 people tragically losing their lives. Subsequent investigations showed that construction products that failed flammability tests were used. Obviously, the safety of the construction products used is critical if we are to achieve a much improved building safety standard.

The safety of construction products in the Bill is dealt with only in Schedule 11. Ten pages of detail set out the regulatory regime around product safety. Amendment 112 in my name would add a new clause to the Bill to ensure that product safety is an integral and important part of the legislation.

The purpose of Schedule 11 is to enable the Secretary of State to make relevant regulations to control the safety of construction products. The key word used throughout is that the Government or the Secretary of State “may” by regulations do something. I suggest that the key word should be “must”. For example, Schedule 11 states that products “may” be prohibited if they are not safe. Can the Minister clarify the reasoning for not using prescriptive language?

On standards and technical assessments of products, the wording used is that construction products regulations “may” make provision for standards and technical assessments. Given the learning from the tragedy at Grenfell, I would expect product standards to meet safety standards clearly established by regulation. The schedule establishes the notion of creating a list of “safety-critical products” covered by safety-critical standards which “may”, or presumably may not, be detailed in a timely way. The regulations also make provision for enforcement—or, at least, they “may” make provision—of the safety and standards regime.

The Hackitt report, my favourite document on all this, has a whole chapter on construction product safety and some very clear recommendations, one of which states:

“A clearer, more transparent and more effective specification and testing regime of construction products must”—


I emphasise “must”—

“be developed. This should include products as they are put together as part of a system.”

That is one of the issues that I raised at Second Reading and on other amendments in Committee. It is important that a product is not only proven to be safe but proven to be safe in conjunction with other materials. That was part of the failure exposed by the Grenfell fire.

Dame Judith Hackitt states clearly in her report that that is essential. Her report recommends:

“Manufacturers must retest products that are critical to the safety of”


higher-risk buildings. The report also seeks to ban assessments in lieu of tests—that is, the desktop studies that were part of the failure at Grenfell—and allow them only in

“a very limited number of cases”.

The Government have set out to reflect in the Building Safety Bill all the recommendations in Dame Judith Hackitt’s report. Unfortunately, Schedule 11 does not do that. It certainly does not do it with the clarity of language or insistence on actions contained in that report.

Amendment 112 is an attempt to draw the attention of the Committee to the fundamental importance of ensuring the safety of, and safe use of, construction products. The amendment seeks to address the want of timeliness in the schedule by insisting on the early publication of regulations on testing and certification. Proposed new subsection (2) seeks to provide for all the recommendations in the Hackitt report to be included in the Bill. I hope that, in her response, the Minister will accept the importance of tightening the proposed regulations on construction products and, given that nearly five years have passed since the Grenfell fire, will accept that no further time should be lost in making buildings safe by ensuring that construction products are safe.

I just want to comment on the other amendments in this group. I give my full support to Amendment 111 in the name of my noble friend Lord Foster, who has made the case for the vital importance of the safety of electrical appliances and for continuing to check them. Too many fires—high-risk fires—have occurred because some electrical appliances are not safe or do not continue to be safe.

I also fully support Amendment 117 in the name of the noble Baroness, Lady Finlay. I give the example of my own council—Kirklees Council—which provided free carbon monoxide monitors for every household. This followed the tragic death of a young child whose family was living in a terraced house where carbon monoxide leaked through from the adjacent house, which was not being properly maintained, if I may put it like that. Really sadly, the child died. As a consequence, the council—with the full support of everybody—produced free carbon monoxide monitors for every household. They are life-saving, and we will obviously fully support the amendment in the name of the noble Baroness. With those comments, I look forward to the Minister’s response.

[Lord Khan of Burnley (Lab)]

My Lords, I will speak to all the amendments in this group in the names of the noble Lord, Lord Foster of Bath, and the noble Baronesses, Lady Pinnock and Lady Finlay of Llandaff.

I turn first to Amendment 112 in the name of the noble Baroness, Lady Pinnock. She presented the case very clearly and eloquently; the headline from her contribution was that the amendment seeks to satisfy the Grenfell review and the Hackitt review. Testing and certification are important for product safety. Ultimately, they will save lives and ensure safer homes.

Amendment 117 is in the name of the noble Baroness, Lady Finlay, who made a very clear and economical argument on safety and why this amendment should be welcomed by the Government and all of us—was it £2 for the developers and owners of buildings to ensure the safety of their residents? The noble Baroness, Lady Pinnock, mentioned the very sad example of the young child in her constituency. We can save people’s lives by welcoming and adopting this amendment.

Building Safety Bill

Debate between Lord Khan of Burnley and Baroness Pinnock

Committee stage
Monday 28th February 2022 Grand Committee

[Baroness Pinnock (LD)]

My Lords, this is such an eminently sensible amendment, in the names of the noble Lord, Lord Best, and the noble Baroness, Lady Neville-Rolfe, that I think that the Minister will struggle to counter the arguments that have been made. What we are asking in this amendment is to avoid a situation involving resident management groups, or leaseholder-controlled companies, where the stringent expectations required to fulfil the duties under the Bill are put on the volunteers.

I already have concerns about the accountable person and how that role will fit in with those of the managing agent and building safety manager. We are beginning to create a fairly bureaucratic approach to safeguarding leaseholders and tenants, which has the risk of not fulfilling the simplicity and clarity that the Hackitt report required of new building safety measures.

I just think that the arguments cannot be countered. I look forward to what the Minister has to say, but this is such an eminently sensible proposal that I hope that the Government will find ways of bringing forward their own amendment on Report to fulfil the aims of this amendment.

[Lord Khan of Burnley (Lab)]

My Lords, I rise briefly to speak to Amendment 45, in the name of the noble Lord, Lord Best, and well supported by the noble Baroness, Lady Neville-Rolfe. I reiterate that this amendment is about looking at leaseholder-owned or leaseholder-controlled companies appointing an external professional to discharge the functions of the accountable person or principal accountable person. The amendment also talks about costs and maybe looking at service charges.

I want to ask this of the Minister. On these Benches we have a big concern about the actual level of service charges at the moment. These charges are already quite high and they are passed on to leaseholders and tenants. Have the Government looked at the aspect of service-charge pricing and whether leaseholders will be able to bear the cost of having this expertise, as detailed in the amendment? We absolutely recognise the importance of the amendment and we are supportive of it. We are equally concerned about using service charges in order to fund these kinds of important, necessary steps. The impact on leaseholders and tenants is a big concern.

On what was discussed previously in Committee, I will add something in relation to professional expertise and skills, and having the opportunity to pass on these responsibilities to somebody who can take care of this important role, focusing on the function of the accountable person or principal accountable person. I will not talk about this at length, but it calls for a debate about the current situation and whether the Government are fulfilling the needs of leaseholders and tenants. I will finish by saying that there is a big concern about service charges overall, about pricing and about how this will have an impact subsequently on leaseholders.

Building Safety Bill

Debate between Lord Khan of Burnley and Baroness Pinnock

Committee stage
Monday 21st February 2022 Grand Committee

[Baroness Pinnock (LD)]

My Lords, I will just say how important these amendments are. Although they are brief and innocuous on the surface, they are fundamental to building safety. In the Grenfell Tower inquiry, it became clear that the window replacement was not as satisfactory as one would hope and that the gaps between the window frames and structure of the building were filled with a flammable material. That is why the second amendment in the name of my noble friend Lord Stunell is so important.

That is just one example. Electrical safety is also critical. Self-certification is all very well, but having oversight, as the Hackitt report points to, helps to create clarity and accountability and to ensure that there is proper documentation. I hope that the Minister will be able to put our minds at rest but, if not, it is certainly one of the areas that we will want to pursue at the next stage of this debate.

[Lord Khan of Burnley (Lab)]

My Lords, I speak very briefly to Amendments 5 and 10 in the names of the noble Lord, Lord Stunell, and the noble Baroness, Lady Pinnock. I thank the noble Lord for presenting his amendments in such an eloquent manner and just want to reiterate the case for clarity from government on these important amendments, which we on these Benches agree with.

These amendments are asking for the whole of the works to be considered under one building control authority. It is important to recognise the case that is made here, which is that, under the doctrine of self-certification, there is a big gap. By supporting these amendments, I hope that the Minister can address the concerns of the noble Lord, Lord Stunell. The noble Baroness, Lady Pinnock, provided a good example and emphasised the Hackitt report’s references to accountability and making things clearer.

I echo the concerns of the noble Baroness, Lady Brinton, about who is responsible. This amendment would put the whole of the works under one regulatory authority, and situations in which remediation works could lead to other building safety effects would be addressed clearly. This would be better overall for home owners and for the safety of citizens. I look forward to hearing from the Minister.