On a point of order, Mr Deputy Speaker. The Minister has made a factually incorrect statement that I would not want to remain on the record without giving him the opportunity to reconsider it. I hope that he will therefore take an intervention.
The right hon. Gentleman has pointed out that he believes the Minister’s statement to be incorrect. It is up to the Minister to decide whether he wishes to give way. I do not think that he is willing to do so at this stage, but I am sure that the right hon. Gentleman will try again.
Thank you, Mr Deputy Speaker. I am sure that the opportunity to give way will arise, and I shall certainly do so in due course to those who think that there is anything to be said against our view that the Bill represents a significant localisation for local government and local communities. The return of business rates to local authorities, the capacity to set council tax without having capping limits set by the Secretary of State, and the transfer of the benefits system to local authorities are all significant measures.
I want to restate my point about the return to local authorities of the ability to set council tax discounts. If every local authority chose to exercise the changes that are being passed into their hands, that would generate for English local authorities a total of more than £400 million. There is no direct connection in the Bill, but I want to make it clear that, whatever might be said about the proposals in the Bill, that discount change will be of significant benefit to local authorities.
I shall deal with some of the points raised in the debate. The right hon. Member for Greenwich and Woolwich (Mr Raynsford) suggested that we ought to accept at least some of his amendments, simply because they were already in the Government’s plans. Well, it is because they are already in the Government’s plans that we do not need to accept them. Some of his other amendments were intended to dismantle the Bill and its provisions, but I made it clear that this is not just a localism measure but a component part of putting our finances right. At no point have we disguised the fact that localisation and deficit reduction are both involved in the proposals.
With this it will be convenient to consider Lords amendments 114 to 150, 236, 236, 251, 334 to 349, and 414 to 417.
The amendments focus on the community right to challenge, on assets of community value, and on council tax referendums. As the Minister of State, my right hon. Friend Member for Tunbridge Wells (Greg Clark), said at the beginning of our debates, the fundamental aim of the Bill is to shift power away from central Government and back to local communities. This part of the Bill enables decentralisation to be taken beyond the town hall, so that we can empower communities and enable them to play a bigger part in local life, whether their aim is to improve local services or to save treasured assets. Community rights will give communities more opportunities to do exactly that. When it is successful, it will give them a chance to compete to deliver those services themselves, using local knowledge, expertise and innovation to improve local services.
Assets of community value will hand communities the initiative so that they can identify important local assets such as the old town halls, village shops and pubs that are of value to community life. There are already many good examples across the country of communities coming together to take over local pubs, shops, libraries and community centres. I think that all of us will have seen examples—if not in our constituencies, during visits to other areas. However, there are many more cases in which communities have missed out because they were not aware that a building was up for sale, or because when they discovered that, they lacked the time to make a viable bid. The new right will make it easier for communities to save local assets that are important to them, and will give them the time that they need to prepare a bid to take them when they come up for sale.
We are also replacing central Government capping with council tax referendums. I had intended to say more about that, but I think that I covered it adequately in the last debate.
A wide range of bodies have said that the powers and opportunities that we are providing are long overdue and very welcome. The National Association for Voluntary and Community Action, the Association of Chief Executives of Voluntary Organisations, the National Council for Voluntary Organisations and Locality have all expressed the view that we are doing the right thing, and during the Bill’s passage Members on both sides of the House have expressed broad support for the principles of our reforms.
However, Members wanted us to go further in some respects, and expressed concern about the details of a number of other aspects of our proposals. As my right hon. Friend said, we have been in listening mode throughout. We have considered the points that have been made not just by Members of the House of Commons, but by peers and interested parties outside. The hon. Members for Birmingham, Erdington (Jack Dromey) and for Worsley and Eccles South (Barbara Keeley) played an important role in the debates that led to the amendments, and in the other place Lord Greaves, Lord Tope, Lord Patel of Bradford and Baroness Hamwee made helpful contributions.
Although we had some excellent debates here in Committee and on Report, we did not think it appropriate to amend the provisions until we had had a chance to consider all the responses to the consultation carefully. That consultation closed in May. Following consideration of the responses and the debates in the House of Lords, we tabled amendments on Report intended to improve the workability of the provisions in the Bill and strengthen their effectiveness.
On the right to challenge, the consultation and debates in both Houses demonstrated that there was an appetite to extend the reforms, but also that there were concerns about the prescription in the Bill. To address the former, amendment 115 makes it clear that the right could be extended to require a Minister or Government Department to consider expressions of interest. To address the latter concern, we have removed a number of delegated powers, particularly those allowing the Secretary of State to prescribe time scales associated with the right to challenge. Instead, under amendments 118 to 121 it will be for local authorities to set their own time scales, while having regard to factors to be set out in guidance.
There are also a number of minor amendments to the right to challenge. I will not detain the House by describing them in detail, but, for example, we have made it clear that the definition of community body in the provisions does not include a public or local authority, and we have ensured that if the right is extended, it would continue to apply only to services provided in England.
There has also been broad support for the principle of giving communities greater opportunities to identify assets of community value and more time to raise the funds. We have also had constructive discussions about improving the practical application of the provisions and avoiding overly detailed rules. I would particularly like to thank Lord Gardiner of Kimble, Lord Cameron of Dillington, Earl Cathcart and Lord Howard of Rising for their contributions to improving these provisions.
We have listened carefully, and amendments 122 to 126 define land of community value based on principal use for social well-being and social interests, including cultural, recreational and sporting interests. Amendments 127 to 130 make it clear that only a voluntary or community body with a local connection may nominate an asset to be listed by a local authority, which will safeguard against vexatious nominations by individuals. We have also improved the workability of these provisions by exempting certain types of relevant disposal: those where the community is not at risk of losing the asset. Amendments 140 and 144 exempt several types of relevant disposals from the moratorium in the Bill. As a result, the provisions will not cover situations such as where a village shop is to change hands as a going concern and the community will still get the benefit of a shop, nor will they capture a situation where a transfer is made between family members or through inheritance or gifts. Further exempt disposals will be set out in regulations. Most importantly, we have ensured that groups will have enough time to raise funds to buy assets; that was a key concern of community groups.
Amendments 141 to 145 specify that the interim moratorium will be six weeks, the full moratorium will be six months, and the protected period in which a further application cannot be made will be 18 months, starting from the first date. In other words, there will, in effect, be a 12-month moratorium period. We have also reduced the amount of prescription. Amendments 131, 132, 134 and 135 give local authorities greater freedom to decide how to administer and publicise lists of assets of community value in their local area. In summary, these amendments will ensure that the provisions give communities a powerful new tool to preserve assets of community value, while ensuring that we do not create unintended consequences.
These reforms were welcomed by the National Association for Voluntary and Community Action and by the Country Land and Business Association. When both those organisations claim victory, it is clear that we must be doing something right.
Finally, this group also contains a number of smaller technical amendments, which include provision for ensuring that levies made on local authorities by levying bodies are not part of the calculation on whether a council tax increase is excessive, and for ensuring that only residents, and not business voters, in the City of London are entitled to vote in a council tax referendum. I hope that that gives at least a little comfort to the hon. Member for Hayes and Harlington (John McDonnell). Overall, I hope that hon. Members will agree that these amendments significantly improve the Bill and address issues of common concern, and so will agree to them unanimously.
I beg to move, That the clause be read a Second time.
With this it will be convenient to discuss the following:
New clause 3—Disestablishment of an arm’s length management organisation—
‘Schedule [Disestablishment of an arm’s length management organisation] has effect.’.
New clause 24—Landlord notification of succession of tenancy—
‘In Schedule 2, Part 3, Ground 16, sub-paragraph (b) of the Housing Act 1985, after “date”, insert “on which the landlord was notified”’.
New clause 25—Recovery of a tenancy granted on ineligible grounds—
‘In section 167(8) of the Housing Act 1996, after “scheme”, insert “and any allocation which is not in accordance with the allocation scheme shall be void and shall not give rise to a tenancy”’.
New clause 26—Housing co-operatives—
‘(1) Schedule 14 of the Housing Act 2004 is amended as follows.
(2) In paragraph 6 insert new sub-paragraph—
“(3) This paragraph does apply to any building which is owned by a fully mutual co-operative housing association as defined by section 1(2) of the Housing Associations Act 1985, the management of which is undertaken by general meeting.”.’.
Amendment 273, in clause 123, page 108, line 11, after ‘1985)’, insert
‘or who have been owed such duties at any time within the previous five years’.
Amendment 360, in clause 124, page 110, line 37, Clause 124, leave out ‘two’ and insert ‘five’.
Amendment 270, page 110, line 39, at end insert—
‘(7A) In subsection (7AC) at end, insert—
“(d) In so far as reasonably practicable, the private rented sector offer must be within the local housing authority’s district.”’.
Amendment 269, in clause 125, page 111, line 33, at end insert—
‘(2A) Omit section 190 and replace with—
“190 Duties to persons becoming homeless intentionally or who are not in priority need.
(1) This section applies where the local housing authority is satisfied that an applicant is homeless and is eligible for assistance but are also satisfied that he became homeless intentionally.
(2) The local authority must—
(a) secure that accommodation is available for his occupation for such period as it considers will give him a reasonable opportunity of securing accommodation for his occupation, and
(b) provide him with (or secure that he is provided with) advice and assistance in any attempts he may make to secure that accommodation becomes available for his occupation.
(3) The applicant’s housing needs shall be assessed before advice and assistance is provided under subsection (2)(b).
(4) The advice and assistance provided under subsection (2)(b) must include information about the likely availability in the authority’s district of types of accommodation appropriate to the applicant’s housing needs (including, in particular, the location and sources of such types of accommodation).”.
(2B) Omit section 192.’.
Amendment 274, page 111, line 39, leave out ‘two’ and insert ‘five’.
Amendment 275, page 112, line 12, leave out ‘two’ and insert ‘five’.
Amendment 276, page 112, line 34, leave out subsection (6).
Amendment 361, in clause 126, page 113, line 15, at end insert—
‘(1A) In preparing its tenancy strategy a local authority must ensure that to the greatest extent possible, tenancies granted in its area provide security of tenure so as to support and develop stable and confident communities.’.
Amendment 363, page 114, line 19, leave out clause 128.
Amendment 13, page 114, line 36, leave out clause 130.
Amendment 271, in clause 130, page 115, line 7, at end insert—
‘(2A) Subsection (2) shall not apply to a secure tenancy if immediately before the tenancy was granted the person who became the tenant under the tenancy, or in the case of joint tenants, one or more of them was—
(a) a secure tenant of the same or another dwelling-house, or
(b) an assured tenant of a private registered provider of social housing or a registered social
landlord (otherwise than under an assured shorthold tenancy) in respect of the same or
another dwelling-house.’.
Amendment 272, page 116, line 33, leave out from beginning to end of line 30 on page 117 and insert—
‘sections 83 to 85A of the Housing Act 1985 shall apply equally to Flexible Tenancies and references to secure tenancies in those sections shall be read accordingly.’.
Amendment 362, page 116, line 33, after ‘Subject’, insert
‘to the discretion of the court, in circumstances where the tenant has made representations against the granting of possession, not to make an order if it considers that order disproportionate, and subject’.
Amendment 14, page 118, line 19, leave out clause 131.
Amendment 277, in clause 134, page 121, line 36 at end insert—
‘(c) or P is another member of the tenant’s family and has resided with the tenant
throughout the period of 12 months ending with the tenant’s death.’.
Government amendments 191 to 203.
Amendment 364, page 128, line 35, leave out clause 148.
Government amendment 204
Amendment 278, page 130, line 18 leave out clause 153.
New clause 23—Litter deposited from motor vehicles—
‘In Part IV of the Environmental Protection Act 1990 (litter etc) in section 87 (offence of leaving litter) after subsection (7) insert—
“(8) Where litter is deposited from a motor vehicle, the person in charge of the vehicle shall, for the purposes of subsection (1) above, be treated as having deposited the litter whether or not he gave any instructions for this to be done.
(9) The registered keeper of a vehicle shall, for the purposes of subsection (8) above, be deemed to be the person in charge of the vehicle unless within twenty one days of receipt of the summons for an offence prosecuted by virtue of subsection (8) above the registered keeper provides in writing to the prosecutor notification of such identifying details as are available to him of any other person he claims to have been the person in charge of the vehicle at the relevant time.
(10) For the purposes of subsection (8) above a constable or an authorised officer of a principal litter authority may by notice in writing served on him, require any person to furnish such information specified in the notice as may reasonably be required to ascertain the person in charge of the vehicle at the relevant time, in such form and within such period, being not less than fourteen days following service of the notice, as is so specified.
(11) It is an offence for a person, without reasonable excuse to fail to comply with any requirement imposed under subsection (10) above.”’.
New clause 33—Street litter notices—
‘(1) In Part 4 of the Environmental Protection Act 1990 (litter etc.) in section 93(2) after “unoccupied” insert “or where there is multiple occupancy”.
(2) In Part 4 of the Environmental Protection Act 1990 (litter etc.) in section 94(1)(a) omit “commercial or retail premises” and insert “premium other than dwellings”.
New clause 38—Protection of businesses and non-domestic users of buildings from complaints—
‘(1) The Environmental Protection Act 1990 is amended as follows.
(2) After section 80(2) insert—
2AA (1) Except that a local authority must not issue an abatement notice to a business, place of worship or other non-domestic user of land for a statutory nuisance falling within section 79(1)(g) if the following conditions are met.
(2) The first condition is that the relevant premises was already in use for the same purpose at the time when the complainant became a local resident, and that such use resulted in a similar noise, and a similar level of noise, at that time.
(3) The second condition is that use of the relevant premises complies with the planning permission for that land and other legislation in force.”.’.
New schedule 1—‘Disestablishment of an arm’s length management organisation—
1 This Schedule applies to the disestablishment of an arm’s length management organisation (ALMO) by a local authority as a result of which responsibility for the management for housing previously managed by the ALMO is transferred to the local authority.
2 (1) The Secretary of State shall not entertain an application for his or her consent to the disestablishment of an ALMO and a transfer of management to which this Schedule applies unless the authority certify either—
(a) that the requirements of paragraph 3 as to consultation have been complied with, or
(b) that the requirements of that paragraph as to consultation have been complied with except in relation to tenants expected to have vacated the dwelling-house in question before the transfer;
and the certificate shall be accompanied by a copy of the notices given by the authority in accordance with that paragraph.
(2) Where the certificate is in the latter form, the Secretary of State shall not determine the application until the authority certify as regards the tenants originally consulted—
(a) that they have vacated the dwelling-house in question, or
(b) that the requirements of paragraph 3 as to consultation have been complied with;
and a certificate under sub-sub-paragraph (b) shall be accompanied by a copy of the notices given by the authority in accordance with paragraph 3.
Requirements as to consultation
3 (1) The requirements as to consultation referred to above are as follows.
(2) The authority shall serve notice in writing on each tenant informing him or her of—
(a) such details of their proposal as the authority consider appropriate, but including the identity of the person to whom the transfer is to be made;
(b) the likely consequences of the transfer for the tenant, and
(c) the effect of the provisions of this Schedule and informing the tenant that he or she may, within such reasonable period as may be specified in the notice, make representations to the authority.
(3) The authority shall consider any representations made to them within that period and shall serve a further written notice on the tenant informing him or her—
(a) of any significant changes in their proposal, and
(b) that the tenant may within such period as is specified (which must be at least 28 days after the service of the notice) communicate to the Secretary of State his or her objection to the proposal,
and informing him or her of the effect of paragraph 4.
(4) When a notice has been served under sub-paragraph (3) the authority shall arrange a ballot of the tenants in accordance with sub-paragraph (5) to establish whether or not the tenants wish the transfer to proceed.
(5) The authority shall—
(a) make arrangements for such person as they consider appropriate to conduct the ballot in such manner as that person considers appropriate; or
(b) conduct the ballot themselves.
(6) After the ballot has been held the authority shall serve a notice on each tenant (whether or not he or she voted in the ballot) informing the tenant—
(a) of the ballot result; and
(b) if the authority intend to proceed with the transfer, that the tenant may within 28 days after the service of the notice make representations to the Secretary of State or (as the case may be) the Welsh Ministers.
Consent to be withheld if majority of tenants are opposed
4 (1) The Secretary of State shall not give his or her consent if the result of a ballot arranged under paragraph 3(4) shows that a majority of the tenants of the dwelling-houses to which the application relates who voted in the ballot do not wish the transfer to proceed; but this does not affect his or her general discretion to refuse consent on grounds relating to whether a transfer has the support of the tenants or on any other ground.
(2) In making this decision the Secretary of State may have regard to any information available to him or her; and the local authority shall give him or her such information as to the representations made to them by tenants and others; and other relevant matters, as he or she may require.’.
Government amendments 221, 222, 224 to 252, 256, 257, 259 to 262, 267 and 268.
The Bill brings forward a package of reforms to social housing. Taken together, they strengthen localism, giving greater flexibility to local authorities and to social landlords in providing the needed housing and the right basic safeguards for tenants. The provisions will allow landlords to make better use of resources, allocating existing homes more sensibly, making sure that support is better focused and providing the right basic safeguards for tenants.
The Bill’s provisions include: giving back to local authorities the freedom to determine who should qualify to go on the housing waiting list; new flexible tenancies in addition to, rather than replacing, secure and assured tenancies for council and registered social landlord tenants; flexibility to meet the homelessness duty with an offer of accommodation in the private rented sector; and, perhaps most popular of all, replacing the unpopular housing revenue account subsidy with a devolved system of self-financing.
New clause 19 relates to that, ensuring that the Secretary of State may continue to enter into agreements with local authorities to determine that specified new homes be exempt from the requirement that most of the receipts from any sale under the right to buy should be surrendered to central Government. This will help remove obstacles to local authorities investing their own resources in new homes. To be clear, new clause 19 preserves an existing relaxation in the rule that requires 75% of receipts to be paid to the Treasury in certain circumstances.
The Government are also taking the opportunity at this stage to make technical improvements with regard to flexible tenure and succession, which I would like briefly to outline. Amendments 202 and 203 exclude shared ownership leases from the landlord repairing obligation, in line with established practice and policy.
Amendments 191 to 201 are needed to rectify drafting errors in clauses 134 and 135, which deal with succession rights. They clarify the original intention that where there has not already been a succession, someone who is not a spouse or partner can succeed where there is an express term in the tenancy agreement to allow it.
The Opposition have tabled a number of amendments. Proposals for social housing reform proved to be one of the more contentious areas of the Bill in Committee, with strongly held views often reflecting points of principle. That is reflected in Opposition amendments 13 and 14 as well as in amendments 271 and 272, which would remove flexible tenure in the one case or, frankly, make it unworkable in the other. There have been some misunderstandings over points of detail, so it would be good for me to address them.
Order. I am sure that the Minister wants to answer that question briefly, but I think that any further interventions should relate directly to the new clauses and amendments.
Thank you for your guidance, Mr Deputy Speaker. I would have been tempted to talk about our housing investment programme and the impact that our affordable rents policy can have on the securing of new affordable accommodation, particularly in areas with high rental values, of which London and the south-east is an outstanding example, but as you—
Order. I think the Minister is pushing his luck. As he knows, he will be summing up the Third Reading debate as well. I think that if he sticks to the new clauses and amendments from now on, everyone will be happy.
Thank you, Mr Deputy Speaker.
The housing measures in the Bill will provide greater discretion for social housing landlords and their professional staff. They will relax the rigid rules set by central Government in the past, and together they will allow landlords to exercise greater discretion, adapt the services they offer to local needs, and manage a valuable public resource more effectively in the best interests of local people.
I recognise that flexible tenure and the proposals to deal with homelessness have caused the most concern to date. Let me repeat what I said in Committee. In the vast majority of cases in which a social landlord offers a flexible tenancy, we will expect that tenancy to be for at least five years. It will often be appropriate to provide longer—in some instances, lifetime—tenancies. If an elderly lady is offered sheltered accommodation or a bungalow, any sensible landlord will doubtless provide a lifetime tenancy. However, if that family in my constituency with three teenagers in a two-bedroom house are finally allocated a three-bedroom house, it surely makes sense to give them a 10-year tenancy, subject to renewal. After 10 years, when the children are in their twenties and have probably left home and the family’s circumstances have changed, they will have had time enough to decide whether that is the accommodation they want.
(13 years, 9 months ago)
Commons ChamberOrder. We should not get carried away. Minister, I am sure that you have heard the points—you carry on.
Thank you, Mr Deputy Speaker.
I can assure the hon. Member for Rhondda (Chris Bryant) that before we get to 2.30 pm, he will understand the Government’s view of the Bill. There will no doubt be further opportunities for Members to interrogate me about our decision and the way in which we reached it.
On a point of order, Mr Deputy Speaker. During a debate on housing in Westminster Hall yesterday morning, I used language that, on reflection, was clearly inappropriate and not parliamentary. I seek to withdraw those words and to apologise to you, to the House and to the right hon. and hon. Members concerned in that debate.
I thank the hon. Member for withdrawing his comments. He has corrected the record.