Building Homes

Lord Sikka Excerpts

Tuesday 17th December 2024 Lords Chamber

[Baroness Taylor of Stevenage (Lab)]

There are clear links between the new National Planning Policy Framework and the English devolution programme. The English Devolution White Paper, which was published yesterday, is a consultation document, and we will be taking views on it as time goes on. The noble Lord, Lord Young, is right to say that there is a proposal in that White Paper for mayors to have strategic spatial planning powers. Across those sub-regional areas—we are talking about areas with a population of around 1.5 million—they will be looking at transport, infra- structure, probably housing numbers across the whole area, and other issues that are strategic in nature.

I do not believe that this undermines in any way the status of local plans. Where there is local government reorganisation, there will be some consolidation of plans to make this work at the level of the new councils. The strength of the local plan will be retained in determining where the allocations in the strategic spatial plan will be located. I do not think the intention of spatial planning is to undermine local plans. I remember the days of regional planning; we are not going back to that, because people felt it was too big a scale. It makes a lot of sense to do this at sub-regional level. When planning an economy, infrastructure and housing growth, you start at sub-regional level and then the local plans fit in with that.

[Lord Sikka (Lab)]

My Lords, the average house price is 8.6 times the average household disposable income. Last week, the ONS said that only about 10% of the population could afford to buy a house. This means that the Government will have to find ways to drastically reduce property prices and/or drastically increase the workers’ share of GDP, which cannot be done without reducing the capital share of GDP. It would be helpful to know how the Government are going to proceed.

The second part of my question follows from a Question I asked last week. On 11 December, I drew attention to some of the resource constraints on housebuilding and asked the Minister to

“publish a detailed report showing how each of the constraints on housebuilding is to be alleviated”.—[Official Report, 11/12/24; col. 1762.]

The Minister did not directly answer that question. I am assuming that someone somewhere has done some kind of risk analysis. If so, can the Minister now assure the House that the report will be published?

[Baroness Taylor of Stevenage (Lab)]

I thank my noble friend for both his questions. We are very aware of the point he raises about the affordability of housing, which is why, in spite of a very difficult Budget round, we have put a great deal of money into enhancing the ability to deliver affordable housing and social housing—a total of around £1.3 billion, with £500 million announced in the Budget. Some of the changes we have made to the planning process—for example, to require local authorities to determine not just how many homes they need but the tenure of those homes—will help with that as well.

To identify the obstacles to housebuilding, the housing accelerator programme has, with the industry, local authorities and other stakeholders, looked at what the key barriers have been to delivering the homes we need. It is working with specific sites where building has stalled and more generally to look at the barriers and how we overcome them. We have identified capacity in the planning system as one of those barriers, which is why we have put in additional funding this year to improve the capability and capacity of planning departments. We will be working further with our colleagues in the Department for Education to improve the number of planners coming through the training system. We have made changes to the planning fee process as part of this which will increase the quantum of funding that local authorities will have available in the planning process. The new homes accelerator has looked across all those barriers.

New Homes

Lord Sikka Excerpts

Wednesday 11th December 2024 Lords Chamber

Asked by

[Lord Sikka]

To ask His Majesty’s Government what logistical and supply chain barriers they have identified to the possibility of building 1.5 million new homes by 2029.

[The Parliamentary Under-Secretary of State, Ministry of Housing, Communities and Local Government (Baroness Taylor of Stevenage) (Lab)]

To deliver 1.5 million homes over this Parliament the housebuilding sector will need skilled and competent workers, efficient planning and a reliable materials supply chain, as well as certainty for the construction industry. We started on planning immediately, and we will publish the revised national framework tomorrow. We are working with industry to provide high-quality training opportunities and create a more diverse work force to build the homes that the country needs. The industry also needs access to sufficient quality safe materials. We have set a clear direction of growth for the housing sector, so suppliers can be confident in increasing their capacity to meet the demand.

[Lord Sikka (Lab)]

I thank the Minister for her reply. A target of 1.5 million homes is commendable, but Governments do not actually build houses, local councils are disempowered, and the private sector simply does not have the capacity. The UK is the world’s largest importer of bricks—about 500 million a year—30% to 40% of cement is imported, and the construction industry says it needs another 251,000 workers to get anywhere near the housebuilding target. In addition to the publication tomorrow, can the Minister also publish a detailed report showing how each of the constraints on housebuilding is to be alleviated?

[Baroness Taylor of Stevenage (Lab)]

I thank my noble friend. He is right, to the extent that we recognise the constraints. We spent a lot of time early in government identifying what they were, working with the sector. We expect housebuilding activity to double in four years, but the supply of construction materials would need to increase by only about 20% to meet the demand, because housebuilding makes up only about 20% of the construction sector. We expect demand for construction products primarily used in housing, such as bricks, and green tech, such as PV panels and heat pumps, to increase at a high rate, and we see that as an opportunity for great British innovators to get going and improve the supply chains with us.

Social Disorder

Lord Sikka Excerpts

Wednesday 4th September 2024 Lords Chamber

Asked by

[Lord Sikka]

To ask His Majesty’s Government what assessment they have made of the possible links between social disorder in major cities, and economic and social policies.

[The Parliamentary Under-Secretary of State, Ministry of Housing, Communities and Local Government (Lord Khan of Burnley) (Lab)]

My Lords, there is no excuse for violent disorder. The thuggery of a few contrasts with the inspiring unity that we have seen in response, with communities pulling together to rebuild after the violence. However, we must not ignore the fact that this violence occurred in places with broader social and economic challenges. In response, MHCLG is leading cross-government efforts to help places recover, working in partnership with communities and local stakeholders to rebuild, renew and address the deep-seated issues.

--- Later in debate ---

[Lord Sikka (Lab)]

My Lords, I thank the Minister for his Answer. Social disorder is the outcome of despair arising from real wage cuts, poor housing, corporate profiteering, the erosion of living standards and the destruction of public services. That anger cannot be addressed by policing. Does the Minister agree that it requires a redistribution of income and wealth, direct state investment in public services, curbs on corporate profiteering, and the building of community centres, youth clubs and libraries? If so, when will we see the tangible results?

[Lord Khan of Burnley (Lab)]

Government policy plays a key role in supporting thriving and resilient communities. Under the Conservative Government, however, we saw a lack of investment in local authorities and public services. That has left our communities more vulnerable to cohesion challenges and wider economic and social deprivation challenges. The recent Khan review into social cohesion and resilience highlighted that communities with lower levels of cohesion were less resilient to the threats of extremism. The review called for a more institutionalised and coherent approach to social cohesion to address these issues. I reassure my noble friend that work is under way in my department to develop a stronger approach to support our communities and build resilience against challenges.

Homelessness

Lord Sikka Excerpts

Monday 18th December 2023 Lords Chamber

[Baroness Penn (Con)]

My Lords, the right reverend Prelate mentioned many different factors that go into this problem. One was the affordability of private rented sector accommodation, so I am sure he will welcome the fact that in the Autumn Statement we committed to increasing local housing allowance rates. Charities and other organisations do great work in this sector, and we will also continue to support them in their work.

[Lord Sikka (Lab)]

My Lords, more than 300,000 people, including 140,000 children, are homeless in England, one of the wealthiest countries on this planet. Can the Minister tell the House why the Government’s policies continue to fail to reduce the number of homeless people in England?

[Baroness Penn (Con)]

My Lords, this problem requires many different responses. I have talked about the work we are doing to prevent homelessness, for example through working with landlords, and what we are doing to increase local housing allowance rates to make the private rented sector more affordable. Ultimately, we also need to increase the supply of housing. We are doing that through building more houses. We have delivered larger numbers of houses in recent years than in many years before and are delivering the right mix of houses built for rent, for social rent and for affordable ownership, as well as houses in the private sector.

General Elections: Party-political Spending

Lord Sikka Excerpts

Wednesday 29th November 2023 Lords Chamber

[Baroness Penn (Con)]

My Lords, all political parties should seek to abide by the rules and, if they have not, they should definitely return the money that they owe.

[Lord Sikka (Lab)]

My Lords, general election spending is funded by big corporations and the rich. They do not actually donate money; they invest—they expect a return. In the interests of transparency, would the Minister consider introducing a law to require political parties to state what returns they have promised and to whom?

[Baroness Penn (Con)]

I completely reject the premise of the noble Lord’s question. We have transparency in our system so that people can see who donates to political parties. The alternative to donations to political parties is government funding of political parties and campaigning. That is not something that we on these Benches wish to see.

Housing: Modular Construction

Lord Sikka Excerpts

Thursday 8th June 2023 Lords Chamber

[Baroness Scott of Bybrook (Con)]

Skilling up in modern methods is extremely important for the whole construction industry. There are two ways that we are doing this. First, the Construction Industry Training Board levy applies to all employers engaged wholly or mainly in construction industry activities. Secondly, the Government’s apprenticeship levy funds slightly different activities, but these funds are ring-fenced to support apprenticeships across the whole construction industry, which is what we require to skill up the workforce to deliver what we want, particularly in MMC.

[Lord Sikka (Lab)]

My Lords, today, 62% of the population owns a home of any kind in the UK, compared with 71% in 2003. The main reason for that is the government-backed wage freezes. The real average wage today is lower than in 2007 and workers’ share of GDP is at a 50-year low. People simply cannot afford to buy a home. Can the Minister explain what steps the Government will take to increase workers’ share of GDP, which necessarily requires a reduction in capital’s share of GDP as well?

[Baroness Scott of Bybrook (Con)]

The question is slightly off-piste and I could be standing here for quite a long time answering it, but I will certainly ask the Treasury. The noble Lord mentions home ownership, which is really important. Since spring 2010, as I think I said yesterday, 837,000 households have been helped to purchase a home through government-backed schemes. That is the important bit. Continually putting up the living wage for people and encouraging them to be homeowners is something that this Government have done, and done well.

People of African Descent in the United Kingdom

Lord Sikka Excerpts

Monday 17th April 2023 Lords Chamber

[Baroness Scott of Bybrook (Con)]

Of course I agree with my noble friend. We are a country that is welcoming and open, and I do not believe it is racist at all.

[Lord Sikka (Lab)]

My Lords, numerous studies have shown that black African workers in the UK receive lower pay than their white counterparts for exactly the same work. Ethnicity pay gap reporting is a necessary tool for highlighting institutionalised inequities and empowering Governments and people to take action. Therefore, can the Minister explain why this Government oppose ethnicity pay gap reporting?

[Baroness Scott of Bybrook (Con)]

No one should have to worry that they are not being given the same opportunities as their colleagues at work. That is why the Government have today published guidance to employers on ethnicity pay reporting as part of the Inclusive Britain strategy.

Shared Prosperity Fund

Lord Sikka Excerpts

Thursday 24th March 2022 Lords Chamber

[Lord Greenhalgh (Con)]

We recognise that, frankly, we have too many funds and that we have to find ways of bringing those funds together to ensure that processes are around delivery and not around grant farming. That is a direction of travel that my department recognises as something we need to improve on in the forthcoming years—but it takes time.

[Lord Sikka (Lab)]

My Lords, I am glad to see that one of the objectives of the shared prosperity fund is to “boost pay”. The Minister will know that the workers’ share of GDP in the UK, in the form of wages and salaries, just before the pandemic was 48.7%, compared with 65.1% in 1976. Can he provide four or five examples of how the Government will increase the workers’ share of GDP in order to meet the shared fund objectives?

[Lord Greenhalgh (Con)]

My Lords, I like to be tested at the Dispatch Box, but I have been given a blizzard of statistics and an impossible request to give five examples. No, I cannot do that, but I am not sure it is particularly helpful. We recognise the need to see real economic development and a strong Welsh economy because, ultimately, that is what is going to make a difference to people’s lives.

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

Lord Sikka Excerpts

2nd reading
Tuesday 19th October 2021 Grand Committee

[Lord Sikka (Lab)]

My Lords, I am delighted to participate in this debate. I particularly commend the speech by the noble Lord, Lord Holmes of Richmond, and agree with almost everything that he said. I will confine my comments to the second part of the Bill, relating to insolvency. It is unlikely to achieve its aims.

The Bill assumes that the Insolvency Service will act in a timely manner, but it is hard to find much evidence to support that. Carillion collapsed in January 2018. Only on 12 January 2021 did the Insolvency Service apply for director disqualification orders against eight directors and former directors of Carillion. To date, none has been disqualified. BHS, which was mentioned earlier, entered administration on 25 April 2016 and liquidation on 2 December 2016, but it was only on 5 November 2019 that former BHS director Dominic Chappell was disqualified for 10 years. A number of executive and non-executive directors, including the BHS chairman, were severely criticised in the joint report by the House of Commons Work and Pensions Committee and the Business, Innovation and Skills Committee, but to date none has been disqualified. It is business as usual.

Of course, little people get picked on. The Bill has not really been preceded by any changes to the law relating to the formation of companies. Anyone, from anywhere in the world, can form a limited company in the UK. There is no authentication check on the identity of individuals forming the company, its directors or its shareholders. Private companies in the UK need one director only, who must be a natural person, and the BEIS website very helpfully tells people that directors do not have to live in the UK. How on earth will the Government enforce the UK legislation against directors who do not live in the UK?

Public companies need at least two directors but only one of them needs to be a natural person. The other can be a shell company located in an opaque tax haven where absolutely nothing is known about directors of companies. There are plenty of examples of that. UK-registered companies have around 7 million directors at the moment. I hope the Minister can tell the Committee how many of those are resident outside the UK or are bodies corporate registered in opaque tax havens. How many of those named are fake and do not exist? You can use any name you like.

Companies House acts mainly as a filing box and rarely performs any meaningful checks. Thousands of companies have directors whose addresses are in offshore jurisdictions and it is impossible for the UK to call foreign nationals to account for corporate offences. Can the Minister again please explain how the Insolvency Service will act against those individuals?

UK company law also permits nominee shareholdings and directorships, which enables concealment of the identity of real controllers and beneficiaries. How will the real controllers of companies be disciplined or disqualified? The Government also act in a very inconsistent manner when taking action against the filing of false information. I will give the Committee a pretty well known but real example.

Individuals connected with the mafia in Italy formed a company in the UK with the name Magnolia Fundaction UK Ltd. The company’s officers used Italian to file information at Companies House. When translated into English, the document said that the name of one of the directors was “The Chicken Thief”. He gave his occupation as “fraudster” and the address given was “The Street of the 40 Thieves in the town of Ali Baba, Italy”. Companies House dutifully accepted such documents. When the matter was raised in the House of Commons on 14 September 2017, the Minister said,

“No action has been taken”—


I think the sound of the Division Bell is the cue for me to stop. I will return to the actions of the Chicken Thief afterwards.

--- Later in debate ---

[Lord Sikka (Lab)]

To recap, I was talking about the individuals connected to the mafia who had a company in the UK called Magnolia Fundaction UK Ltd. They filed information saying that the director’s name was “The Chicken Thief”, his occupation “fraudster” and the address “Street of the 40 Thieves in the town of Ali Baba, Italy. Companies House gratefully accepted this and filed it away—that was it. When the Secretary of State was asked on 14 September 2017 what she was going to do about it, the reply was:

“No action has been taken at this time against the promoters and officers of Magnolia Fundaction UK Ltd for filing inappropriate information in Italian at Companies House.”


Nothing has changed since; it is exactly the same.

I knew the names of some well-known convicted mafia criminals and, out of curiosity, I put one of their names into the Companies House website. The person turned out to be a director of an organisation called Business Bank Italy Ltd, registered in the UK. It had a website that was inviting people to invest. I reported that matter to the shadow Chancellor at the time, Anneliese Dodds, she raised it in the other place and eventually the website vanished.

Nobody in authority at the Insolvency Service or anywhere else even bothers to see whether criminals’ names appear in the Companies House database. It is that bad, and we think that that kind of institutional framework will help us deal with misdemeanours by directors; it is not going to do that. What the Government have done is prosecute someone who demonstrated how easy it is to form a company with a false name and then announced in a newspaper that he had done it. So they went and prosecuted him—effectively, he was a whistleblower.

The proposed regime under the Bill for dissolved companies will suffer from the same problem as the current regime for live companies: the requirement that an interested party, most likely a creditor, raises concerns about the conduct of a company’s directors with the Insolvency Service. But how will the creditors know that a company is being dissolved? Directors are required to notify creditors of the proposed dissolution, and such creditors have an opportunity to object to the proposed dissolution before it takes effect, but not all such creditors may be notified. You can have pre-packs without any creditors meeting. People do not even need to be told. All kinds of things happen.

Once a company has been dissolved, there is no equivalent of a liquidator or an administrator of an insolvent company who has a duty to investigate the conduct of directors and report them to the Insolvency Service. This makes it more likely that only the particularly egregious examples of misconduct significant enough to come to the attention of the interested party will be investigated in respect of the directors of dissolved companies.

Companies can also be dissolved without any formal legal process. For example, Companies House can dissolve a company if it fails to file annual accounts. You do not need to go through any legal process; just do not file the accounts. Every year, thousands of companies do that, so many rogue directors can choose this method to dissolve companies. Such possibilities do not even appear in the Bill, as to who is going to find out and what they are going to do about it.

The Bill places considerable reliance upon insolvency practitioners but the insolvency industry has been engaged in corrupt practices for years. About 20 years ago I published a monograph—titled, appropriately, Insolvent Abuse—which documented many of the corrupt practices of the insolvency industry. Hardly anything has changed in the last 20 years. The industry is still running amok. This week the Financial Reporting Council confirmed its fine of £13 million on KPMG and £500,000 on its insolvency partner, together with costs of £2.8 million for investigation. The reason was that KPMG and its insolvency partner pushed Silentnight, which was a client of the accountancy firm, towards insolvency, so that the private equity group HIG, the client that it really wanted to cultivate, could buy the business out of administration by dumping the defined-benefit pension scheme for Silentnight’s 1,200 staff. KPMG’s partner lied to the Pensions Regulator and to the Pension Protection Fund.

KPMG has been central to numerous scandals, and its involvement in another will perhaps not surprise many in this House. However, it is still in business, and its lying partner is not facing any criminal investigation or charge. Perhaps the Minister can explain why there is one set of laws for ordinary mortals but another for accountancy firm partners, where they go in front of kangaroo courts and lie but still continue with their lives.

In case anyone thinks that was a hefty fine for the partner, usually the partnership agreement states that the firm will reimburse the partner, so his £500,000 fine will be reimbursed, while the £13 million fine for KPMG will go not to the members of the Silentnight pension scheme, who have lost some of their pension rights, but to the coffers of the Institute of Chartered Accountants in England and Wales, which authorised the cheating, lying partner. The institute will be quids in. It is akin to someone being fined for mugging and then being told, “By the way, make the cheque payable to the Institute of Muggers.” That is what we have by way of self-regulation, and it is wrong on every count.

I urge the Minister to act to ensure that the money goes to the victims of KPMG, not the ICAEW, which does not deserve it. It has already recovered the costs of the investigation. These RPBs—recognised professional bodies—must not benefit from the misconduct of their members; in fact, they should be in the dock for authorising those members. What kind of supervision do they actually carry out?

The corrupt practices of the insolvency industry are also documented in last month’s publication by the All-Party Parliamentary Group on Banking, Resolving Insolvency: Restoring Confidence in the System. It notes that insolvency practitioners

“sell their independence, and their considerable powers, in return for an appointment to an insolvency case.”

Who usually appoints them? Banks. So they are basically colluding with banks. The report says that conflicts of interest are regularly being ignored. The interests of banks are prioritised and too many innocent people have lost their homes, businesses and savings as a result. Your Lordships can see the evidence; it is in the monograph that I launched.

Many victims claim that banks and insolvency practitioners have forged their signatures in order to repossess assets. Evidence of that has appeared in national newspapers and on the BBC, but the National Crime Agency has sat on the evidence for months or even years and has done absolutely nothing. I have been told by authoritative sources that there are hundreds of such cases, but nothing is getting done. The recognised professional bodies are essentially accountancy trade associations—I am sorry; I will finish. They have no independence from their members and have a long history of sweeping things under their dust-laden carpets.

About a year ago, replying to one of my Written Questions, the Minister said that 7,962 insolvency cases had still not been resolved, and that their age was between five and nine years, while 3,642 were more than 10 years old, and 14,328 were more than 15 years old. No regulator asks why insolvency practitioners are milking insolvencies. The longest one that I know of lasted 30 years, and that related to Israel-British Bank. PricewaterhouseCoopers made it last for 34 years, and it came to an end when there was not a penny left in the business. These are real-life sharks, and they really need to be dealt with.

There was a report by Sally Masterton, codenamed “Project Lord Turnbull”, which was written in 2013 and formally published in June 2018 by the All-Party Parliamentary Group on Fair Business Banking. It referred to fraud at HBOS. There was no action by any recognised professional body, although the report made it clear that the fraud could not have been carried out without the complicity of the partners. There has been no investigation into the RPBs either. In the last 10 years, some 8,000 complaints about insolvency practitioners have been lodged with the RPBs and—guess what—only five out of 8,000 have had their licences withdrawn. Over the last seven years, only three IPs had their licences revoked. Is the Minister really content with that?

I finish with two specific requests. Can the Minister arrange two things? One is an independent public inquiry into the insolvency industry. Secondly, could he arrange for a relevant Minister to meet me and a former police and crime commissioner to see and hear the evidence about how banks, lawyers and insolvency practitioners are colluding and perpetrating devious practices that have deprived people of their homes, businesses and savings? I am sure that he does not tolerate corrupt practices and will willingly agree to these two requests.

--- Later in debate ---

[Lord Greenhalgh (Con)]

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

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

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

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

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

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

[Lord Sikka (Lab)]

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

[Lord Greenhalgh (Con)]

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

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

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

North of England: Investment

Lord Sikka Excerpts

Tuesday 23rd February 2021 Lords Chamber

[Lord Greenhalgh (Con)]

My Lords, I point out that the commitment to levelling up also includes the Midlands. Earlier this month, my right honourable friend the Housing Secretary met the Midlands Engine Business Council and numerous business leaders to work on precisely how we should drive forward the agenda to ensure growth in the Midlands as well as in the north.

[Lord Sikka (Lab) [V]]

My Lords, history shows that major industries, such as gas, water, electricity, engineering, petrochemicals, airlines, biotechnology, telecommunications, computers and medicines, were built or rejuvenated by the state because the private sector showed little appetite for the risks and investment. Does the Minister agree that direct state investment is vital to secure prosperity for the north? If not, why not?

[Lord Greenhalgh (Con)]

My Lords, we recognise the importance of direct government investment, but we must also ensure that the £4 billion of the levelling-up fund leverages in private sector investment. It is those two working in harness that provides the solution.