Non-Domestic Rating (Rates Retention and Levy and Safety Net) (Amendment) and (Levy Account Basis of Distribution) Regulations 2019

Debate between Lord Shipley and Lord Beecham

Monday 18th March 2019 Lords Chamber

[Lord Shipley (LD)]

The Minister will be grateful for paragraph 8.1 in the Explanatory Memorandum, which states:

“This instrument does not relate to withdrawal from the European Union”.


It is the first statutory instrument today that does not have that status. However, as the Minister said, it is technical but important.

I remind the House that I am a vice-president of the Local Government Association.

I understand that this statutory instrument has to be brought forward every year to enable the rolling 75% business rates retention pilots to take place, which are now being extended to new areas for 2019-20. In that respect the SI is fine. As the Minister stated, it also allows for the new authorities being created out of reorganisation, such as Dorset, to levy business rates. Obviously that is essential. It allows for the return to councils of money which had previously been levied by central government through the business rates account. The total sum amounts to £180 million, which means that the Government will make themselves popular with those receiving it.

Although this is a technical SI, we should reflect that the basis of business rates is under question and under stress, not least because of the pressures on the retail sector. No doubt we shall have opportunities in the future to discuss that issue in greater depth. However, as the Minister said, this is a technical but important statutory instrument and it has our support.

[Lord Beecham (Lab)]

My Lords, I declare my local government interests as vice-president of the LGA and as a councillor in Newcastle.

The noble Lord, Lord Shipley, referred to the present situation in respect of business rates. There is a bland assumption by the Government that there is a uniform approach to what can be raised locally, either by domestic rates or business rates, but that is not the position. The amounts that can be generated vary considerably between authorities and the Government have paid little attention to that disparity, in terms of either council tax or business rates.

The Government are making much of the £180 million they are going to restore to authorities. That is £100 million less than the loss that Newcastle City Council alone has sustained in grants from central government since 2010. It is a pitifully small amount and will make little difference to the efforts of local councils—of all political characters—to maintain local services. This is not a substantial change in favour of local government and the Government have to look again at the wider issues of funding a sector of the economy which has been substantially underfunded for the last eight years.

Construction Products (Amendment etc.) (EU Exit) Regulations 2019

Debate between Lord Shipley and Lord Beecham

Wednesday 13th February 2019 Grand Committee

[Lord Shipley (LD)]

My Lords, I sympathise with the view of the noble Lord, Lord Adonis, about the volume of statutory instruments that we have to consider, the lack of time to consider them and, thereby, the lack of time to do justice to them. I shall, nevertheless, comment on the statutory instrument. The noble Lord, Lord Adonis, has raised a number of crucial issues on the possibility of divergence to which we need to be alert.

As the Minister said, the statutory instrument is to come into force only if there is a no-deal outcome on 29 March. It aims to preserve the current outcomes—that is, properly licensed and tested construction products, tradeable without barriers across all 28 EU countries, as far as possible. However, the only one it can actually guarantee, it does: that any approved EU kitemarked products will continue to be recognised as compliant under UK law.

It gives the Secretary of State the power to set new UK standards for products in future, either those that are purely UK-tested or by simply adopting future EU standards. Given that up to a quarter of all components and materials used in construction are imported from the EU, it is clearly hugely in the interests of the UK industry to maintain common standards, and it is unlikely that it would ever welcome a divergence from whatever was the current EU standard. In practice, any UK manufacturer wanting a test certificate for a new product would want it to comply with the EU version of the testing and carry a kitemark, so that it was accepted across the EU and the UK thereafter, whereas there is no automatic right for our tests to be accepted across the Channel, limiting our export potential. Inevitably, the Government will have to set up a UK system, but in real life nobody will want to use it. It is therefore wrong to say that there is no impact and so no need for an impact assessment, although that is the conclusion the Government seem to have reached.

It is not that there are deficiencies in the drafting of the statutory instrument; it is yet another shocking example of the complete waste of time that all this work on no deal is producing—for the Government, for Parliament and for the industry. If, by any chance, there was no deal, the additional cost of setting up a system parallel to the EU which practically no one would ever volunteer to use is certainly not a minor matter. I hope that when he responds, the Minister will comment on that and, I hope, express his agreement with that conclusion.

I raise one further issue, which relates to the responsibility for enforcement before and after. It will lie with trading standards, mostly decimated by funding cuts. What estimate have the Government made of the increased workload for trading standards as a consequence of the introduction of the proposed new regime?

[Lord Beecham (Lab)]

My Lords, I concur with many of the points made by preceding speakers about this process and this instrument as an example of the secondary legislation on which we are having to spend so much time.

In the light of the Grenfell disaster, the subject of these regulations assumes greater importance than might otherwise have been the case. It is therefore even more unsatisfactory that no impact assessment has been published. What assurances can the Minister give that, in the absence of a deal, there will continue to be comparisons for industry and the public as to the performance and safety of products from other countries? Will the Government ensure that EU regulations are constantly kept under review and that steps will be taken to ensure that our standards keep pace with increased safety considerations applied within the EU? In the absence of an impact assessment, has there been any conclusion on the potential cost to businesses as a result of the change? The noble Lord, Lord Shipley, made that point.

What will be the process for designating standards under the new regime? Will parliamentary scrutiny of such new or amended standards take place? If so, will that happen under the “made affirmative” procedure? What form of consultation will be applied? In particular, will the British Standards Institution remain a member of the European Committee for Standardization? The Explanatory Memorandum declares:

“Existing European harmonised standards will become UK ‘designated standards’”,


and will be “identical”. Is that to be a permanent position? If not, what timescale is anticipated within which they may be reviewed or changed? What cognisance will be taken of any changes in the EU standards during that period, and by what methods?

Finally, is it to be a requirement that manufacturers must affix a UK mark to products? If so, to what extent have the Government received assurances that such a mark will suffice to satisfy buyers in the European Union or elsewhere?

Tenant Fees Bill

Debate between Lord Shipley and Lord Beecham

Report stage (Hansard): House of Lords
Tuesday 11th December 2018 Lords Chamber

[Lord Shipley]

My Lords, the Minister referred to what I said at Second Reading and he is entirely right. I welcome Amendments 3 and 4. They are hugely helpful because they give local housing authorities the flexibility they need to do their job properly, and for that reason they have our support.

[Lord Beecham (Lab)]

My Lords, I join the noble Lord, Lord Shipley, in supporting these government amendments. It certainly is an important function for local authorities. I have to confess—and I refer to my interest as a sitting local councillor—that I am not entirely sure where the funding for this comes from. Do the Government support this financially, or is it left entirely to local authorities? In the latter event, will he look into the extent to which authorities are financing this important element of support for tenants? We certainly support both amendments.

Newcastle Upon Tyne, North Tyneside and Northumberland Combined Authority (Establishment and Functions) Order 2018

Debate between Lord Shipley and Lord Beecham

Tuesday 30th October 2018 Grand Committee

[Lord Beecham (Lab)]

My Lords, I refer to my interest as an elected councillor in Newcastle, and one who will be seeking re-election next May. Next Sunday will be the 14th anniversary of the referendum on the proposal at that time to create an elected regional authority for the north-east. Forty-eight per cent of the electorate cast their votes and, I am sorry to say, resoundingly rejected the idea by 77% to 23%. Disappointing as it was to those of us who saw in the concept a real opportunity to create a body capable of promoting the interests of the region as a whole, the result was not a great surprise. Local rivalries have never been confined to the football pitch.

In the mid-1960s, at a time when local radio was being promoted by the BBC, the then leader of Gateshead Council declared that nobody in Gateshead could possibly be interested in anything broadcast from Newcastle. In the mid-1990s I wrote a paper advocating the establishment of a north of England councils’ association, incorporating the counties of Northumberland, Durham, Cumbria and Tyne and Wear—the latter of which has since vanished—and their constituent city and district councils. Knowing that if such a proposition was seen to have emanated from Newcastle its prospects of success would have been negligible, I passed it to the then leader of Northumberland County Council, who circulated it without attributing its source. The association was accordingly established with Hugh Little of Cumbria as its first chairman. When Cumbria departed, it became the North East Assembly and when Tees Valley in turn departed, it became the Association of North East Councils.

It is unfortunate that the four councils south of the Tyne have so far declined to join the new combined authority—I should add that part of Northumberland is south of the river but will be within the boundaries of the new authority. I can understand some of their concerns. The new structure will be led by an elected mayor, a requirement imposed by the Government on all new combined authorities. Newcastle itself voted 62% to 38% against having an elected mayor when it was compelled to hold a referendum—for just the city itself—in 2012. This time, people are being denied a voice completely on that issue.

Moreover, the much-vaunted investment by the Government of £600 million over 30 years, which is all of £20 million a year shared between three councils, is frankly pitiful. Newcastle alone is facing cumulative cuts which, by next year, will amount to £280 million annually, and there is no suggestion from the Government that there will be any benefits flowing our way under any changes in the local government finance system. The same would apply to the neighbouring authorities.

There are, however, some promised changes which are welcome. These include local control of the budget for adult education, with enhanced powers to promote development, and a joint committee to manage public transport. Can the Minister say whether the latter will include a role in relation to rail transport, including the east coast line? Can he give any assurances about the future of the region’s airports? If, as has from time to time been suggested, the Scottish Government abolishes air passenger duty, will the region’s airports, and in particular Newcastle Airport, be able to follow suit?

On the housing front, I understand that the current chairman of Homes England is to chair a housing land board. Can the Minister explain how this will work in relation to the role of the councils in the provision of social housing? Will it be possible for the councils to provide more social housing for rent? Who will determine the size and nature of local housing provision and the provision of the necessary services for residents?

There are ambitious claims for job creation and new housing, with apparently 9,500 people to be helped into employment and 10,000 houses to be built. Can the Minister indicate over what period these goals are expected to be achieved? How many of the 10,000 homes will be provided respectively by local authorities, social housing providers and for sale?

Transport is an important issue for the whole region. It is to be hoped that both the new combined authority and the four councils which will remain from the existing authority will continue to work together through the joint transport committee.

The Metro, which serves Newcastle, North and South Tyneside, Gateshead and Sunderland, is a critical service covering all the authorities in the currently established set-up. There is clearly a potential to expand the service, not least to the west end of Newcastle, one of whose wards I represent. Will the department invest in this important area? It is a modest task in the light of the vast amounts being spent on Crossrail and HS2.

Will the Minister’s department put pressure on the Department for Transport to tackle the dreadful performance of the laughably misnamed TransPennine Express in the service between the north-east and the north-west, a more important project in the eyes of many of us than HS2?

The region is one of 10 bidding for funding from the £1.7 billion transforming cities fund. Six mayoral authorities have already shared £840 million. Given the problems facing the north-east, which are threatening to worsen after Brexit, it is vital that we secure investment of this kind. I understand we are looking for funding in the range of £50 million to £100 million. I hope the Minister will support our bid from the region.

There are some issues which cross the boundaries between the new combined authority and the four south of Tyne authorities. Two further education colleges, on either end, in effect, of the Tyne tunnel, are now combined. One will be in each of the two combined authorities hereafter and I am not clear what the implications of that will be. I do not know whether the noble Lord is in a position today to respond to that. He may need to consult the Department for Education. However, there will be services which cross the river, as it were, which will not apparently be affected directly by the new authority structure and there will have to be arrangements to deal with that.

It is similar in the National Health Service. We have, for example, a Newcastle and Gateshead clinical commissioning group which also crosses the boundary of what will be the two combined authorities. Is it envisaged that any change will be made in the NHS area, given the changing boundaries within local government and the important connection between local authorities’ social care provision and the NHS?

The justice system is another area which merits consideration, especially the probation service, which hopefully is to be restored as a single service in the light of the systemic failings of the split between probation and Chris Grayling’s community rehabilitation companies. Will the combined authority have oversight of both the custodial and probation services in its area and, indeed, of the court system, where court closures are having a serious impact on the working of the courts? It may well be that at least oversight of these areas could well be placed within the province of the new combined authority.

Many of us are hoping that, whatever doubts we may have about aspects of the changes in bodies in the order, they will help the region to address the serious problems it faces, constantly exemplified for me by the presence in the council ward that I have represented for the past 51 years of the busiest food bank in the country. I look forward to the evolution of a North East Combined Authority with the determination and resources to help transform the life chances of our citizens. I endorse the conclusion of the Secondary Legislation Scrutiny Committee’s report:

“It will be important that all involved keep under review the success of cooperation between the new mayoral Combined Authority and the other councils, against the objective identified by DCLG in 2014 of promoting more effectively economic growth and prosperity for the area concerned; and that the Government should be ready to adapt arrangements in the light of experience”.


We are in a period of change. There is real potential for improvements to be made, but it will not be enough simply to rely on that reorganisation, not least in relation to the necessary funding to address the very serious economic and social problems that the area faces. This is a step forward. There is still a long way to go to transform the life chances of people living in the north-east, and in particular in the area covered by these changes.

[Lord Shipley (LD)]

My Lords, it is always a pleasure to follow the noble Lord, Lord Beecham, in a debate. He reminded us of the history of devolution and of some of the current problems in public investment and governance across the wider north-east. I agree with him that this proposal is a step forward. He used the word “unfortunate” to describe the fact that the four councils south of the Tyne have refused to take part. I think I might have used a stronger word, but for the moment “unfortunate” will do. Indeed the Secondary Legislation Scrutiny Committee said:

“Progress towards establishing a mayoral Combined Authority in this part of the North East has not been straightforward”.


Let us all agree with that. I have been very critical of this and of the failure of local councils across the wider combined authority area to speak with one voice. As the Secondary Legislation Scrutiny Committee reminded us, key business stakeholders appear to view the latest proposal as a second-best option. It is the only option on the table. It is a second-best option, but the final sentence in the Secondary Legislation Scrutiny Committee’s comment is,

“the Government should be ready to adapt arrangements in the light of experience”.

I very much hope that the Minister will be willing to confirm that that is exactly what the Government plan to do.

I support this proposal because I believe that the north of the Tyne should not be left behind because of the approach taken south of the Tyne. Indeed, there are powerful combined authorities elsewhere across the north of England that have mayors. They give focus to strategic planning and to the delivery of growth, jobs, higher education and skills standards. For that reason this proposal should be supported. It is a very great pity that the area to the south of the River Tyne decided not to take part.

The Minister referred to the transport arrangements. It is true that the current structure will remain in place. There will be a statutory joint authority to bring all the councils and passenger transport executives together on key issues. The seven local authorities are said to be confident that these arrangements will work. Well, they need to work. There will have to be an agreed clarity of purpose for the whole subregion, because this could come unstuck when a critical decision has to be made.

Rating (Property in Common Occupation) and Council Tax (Empty Dwellings) Bill

Debate between Lord Shipley and Lord Beecham

Report stage (Hansard): House of Lords
Wednesday 4th July 2018 Lords Chamber

[Lord Shipley]

My Lords, I was reminded by the noble Earl, Lord Lytton, and my noble friend Lady Pinnock that I did not declare when I spoke earlier that I am a vice-president of the LGA. For the completeness of the record, I do so now.

[Lord Beecham (Lab)]

My Lords, I will further add to that by declaring my own interests as a vice-president of the association, and also as a serving councillor in Newcastle. I rise to present the views of these Benches in the absence of my noble friend Lord Kennedy, who is en route to Birmingham for the Local Government Association conference.

I have had some experience of dealing with, or attempting to deal with, the problems of empty houses in the ward I represent in Newcastle. It has been impossible, eventually, either to persuade the owners to do the necessary work or, in one case, to acquire the property. While I certainly support the amendments before us, and I understand that they are likely to receive a reasonably warm response from the Minister, it occurs to me that perhaps the aspect of acquiring properties is a matter that should be given further consideration. It is an alternative approach that might well result in a quicker resolution of the problem, and enable the availability of a usable home, than simply collecting money by way of an incentive, as it were, for owners to do something, which may not be all that effective. I would be grateful if the Minister would indicate whether the Government will look again at the powers of local authorities to acquire in these circumstances, and whether these need to be enhanced, particularly in terms of the timescale involved. On the ground, it would probably make a greater difference than these measures, welcome though they are as an additional arm in trying to deal with this situation, which is, at a time of housing shortage, really quite disgraceful and should not be tolerated.

Regulation of Social Housing (Influence of Local Authorities) (England) Regulations 2017

Debate between Lord Shipley and Lord Beecham

Tuesday 7th November 2017 Lords Chamber

[Lord Shipley (LD)]

My Lords, first, I remind the House that I am a vice-president of the Local Government Association. I thank the Minister for his explanation of this draft instrument. He referred to the Green Paper. I think that I recall his words correctly when I say that the consultation that the Minister for Housing has been undertaking is helping to frame that Green Paper. Perhaps, in summing up, the Minister will tell us when the paper will be published.

I concur with what the noble Lord, Lord Kennedy of Southwark, said about the need to build more homes, and in particular more social homes. Specifically, these regulations will not improve the accountability of housing associations, as he said—but, on the other hand, as the Minister has confirmed, only around 100 are affected directly. It is, however, a weakness in these regulations that no formal consultation was carried out with tenants. That has been identified by the Secondary Legislation Scrutiny Committee in its response to the statutory instrument. The problem is that tenants used to be council tenants, and they voted for a stock transfer in the expectation that the council would have a significant role. That role is now being reduced to 24%. As a consequence of that governance change, it would have been right to have consulted with tenants.

As the Minister explained, the regulation is being introduced to meet the decision of the Office for National Statistics to reclassify private-registered providers as public bodies, partly because of the powers of the Homes and Communities Agency and partly because of the residual role of local authorities. However, as the noble Lord, Lord Kennedy, pointed out, none of this builds new homes. It is, essentially, a governance issue. What is missing from the draft statutory instrument is any explanation as to why debt from building council housing should be treated as public sector debt anyway. This governance problem would disappear if the Treasury were prepared to define all local authority borrowing as off balance sheet.

The Prime Minister announced at the Conservative Party conference that on social housing it was her,

“mission to solve this problem”.

The Prime Minister will do so only if local authorities are freed up to borrow and that borrowing is treated, as it is in other countries, not as part of public sector net debt. That is a British measure only. In other EU countries, public corporations are excluded from the general government gross debt figure—the main international measure of debt—in which council housing is classified not as part of government but as a public corporation. An exemption in the UK specifically for council and social housing from the current British measure would comply with international measures of debt. If the Government undertook that change, it would enable more homes to be built and, in particular, more social homes. Therefore, I want to ask the Minister very specifically: why do Treasury rules not reflect international conventions on how debt is counted? If we change the convention, which we are perfectly entitled to do, it would enable those extra social homes to be built.

[Lord Beecham (Lab)]

My Lords, I endorse wholeheartedly the observations of the noble Lord, Lord Shipley, my erstwhile sparring partner in Newcastle City Council. He is absolutely right to draw attention to the anomalous position in which public expenditure on housing is treated. It is not, after all, a matter of creating debt; it is a matter of creating assets. Admittedly, the value of those assets is somewhat eroded by the right-to-buy at a ridiculous discount provisions, but nevertheless it is real. I do not see why the Government should refrain from adopting the noble Lord’s advice and getting this off the balance sheet completely.

On the mechanics of the operation, there is a curious figure of 24%. I do not know quite how you calculate 24% on, say, a board of 15—do you go up one or down one?—because it is a difficult figure and not quite a quarter. No doubt there is some obscure legal justification for having it at marginally less than 25%. I invite the Minister to say that associations should not be precluded from having in attendance at the meeting and participating in the meeting, but without a vote, more representatives of the local authority.

I repeat that they should not have the right to vote, but should have the right on behalf of the residents of the authority of which they are a member to ask questions, raise issues and perhaps make suggestions. Again, I repeat that they would not have the right to vote. Would that not be a sensible way of strengthening the local authority’s role in relation to the issue?