Lord Young of Cookham Portrait Lord Young of Cookham (Con)
- Hansard - -

My Lords, it is a pleasure to follow the noble Lord, Lord Best. I agree with everything he said about the regulation of property agents and, were he minded to table an amendment to the Bill, I would like to add my name. I thank my noble friend for her readiness to consult colleagues throughout the passage of the Bill: I am sure this will facilitate its speedy work.

My speech is in two halves, the first focusing on the Bill and the second dealing with unfinished business with the Building Safety Act. The Government are well ahead in the first half but heading for a score draw by the end. I warmly welcome the Bill, building as it does on previous pieces of legislation, all progressively empowering leaseholders and moving away from a feudal system of tenure that exists nowhere else in the world. I will just touch on the more controversial measures on ground rents and marriage value. Having attended a meeting, with other noble Lords, with freeholders, it is absolutely certain that this is going to be challenged in the courts. I take comfort from what is on the face of the Bill, namely that my noble friend asserts that the Bill is compatible with the ECHR.

The consultation on ground rents closed on 17 January and the Cabinet Office guidance says Governments should

“publish responses within 12 weeks or provide an explanation as to why this is not possible”.

That runs out on 10 April, so will we have a response before Committee, hopefully rebutting rumours in last week’s Sunday Times? If the Bill becomes an Act, and a leaseholder declines to pay the historic rent demanded by a freeholder, citing this Bill, and is taken to court, as seems likely, will the Government stand behind that leaseholder and bear the costs?

On marriage value, many properties in London, from where most of the freehold objections have come, have been on 99-year leases for centuries. Each time the lease expired, the freeholder had all the marriage value—financial polygamy if ever I saw it.

There is one area where we are going make progress: I was relieved to hear what my noble friend said about forfeiture. A tenant can lose possession of a £500,000 flat for a debt of £351, with the landlord keeping the entire difference between the value of the property and the debt. Will my noble friend go a little further than she did in her opening speech and commit to a government amendment to abolish forfeiture and replace it with a more balanced response?

I share the disappointment of other noble Lords at the absence of progress on commonhold. In 2019, the House of Commons Select Committee, with a Conservative majority, urged the Government to ensure that

“commonhold becomes the primary model of ownership of flats in England and Wales”.

The noble Baroness, Lady Taylor, quoted Michael Gove’s statement, which is worth repeating:

“I don’t believe leasehold is fair in any way. It is an outdated feudal system that needs to go. And we need to move to a better system and to liberate people from it”.


But in the Bill, there is no progress whatever on these flats.

Turning to the Building Safety Act, I welcome the measures the Government have introduced to alleviate the problems of those living in flats requiring remediation following the tragedy of the Grenfell fire, but there is a significant gap, best illustrated by quoting the commitments the Government made at the outset. In his Statement in the other place on 10 January 2022, the Secretary of State said:

“We will take action to end the scandal and protect leaseholders”.


Later, he clarified what he meant:

“First, we will make sure that we provide leaseholders with statutory protection—that is what we aim to do and we will work with colleagues across the House to ensure that that statutory protection extends to all the work required to make buildings safe”.—[Official Report, Commons, 10/1/22; cols. 285-91.]


Note that that commitment extends to all building work, not just cladding, and there was no qualification of the word “leaseholders”.

This broad commitment was confirmed by a letter written to all noble Lords by my noble friend’s predecessor, my noble friend Lord Greenhalgh, on 20 January 2022. He wrote:

“The Secretary of State recently announced that leaseholders living in their homes should be protected from the costs of remediating historic building safety defects”—


not just cladding. However, the position now is that not all buildings are covered; not all building safety defects are covered; and, crucially, not all leaseholders are protected. In particular, it remains perverse that, while we debate a Bill to facilitate enfranchisement, the Government have deliberately chosen not to give protection to those that have enfranchised, while leaseholders who have not enfranchised continue to enjoy a better deal.

The two principal exclusions from the commitment given by the Secretary of State are leaseholders who live in buildings less than 11 metres tall; and other non-qualifying leaseholders, a category that does not exist in Wales, where remediation funding is available for all buildings and all leaseholders are protected. On buildings under 11 metres, the Government’s position seems to be that residents should be able to leave the building in the case of fire without expensive remediation. This position is at odds with that of the London Fire Brigade. This is its statement:

“With regards to the remediation of buildings, we strongly assert that all buildings with serious fire safety defects should be remediated regardless of height”.


Many of these flats are unsaleable and unmortgageable, the owners cannot afford to pay for remediation and, in the view of the fire brigade, they are unsafe. The department’s case-by-case approach is moving at a glacial pace, with no clear outcome even for cases that are audited by the department and deemed to require remediation.

Also excluded are leaseholders who own three or more residential properties. The perverse consequence of this is that you can own a manor in the Cotswolds, plus a villa in Italy on Lake Garda and a luxury penthouse in central London worth £1.5 million and qualify for protection. Yet if you and your partner own a small, terraced house and three small £100,000 buy-to-let apartments as part of your pension planning, only one of which has non-cladding fire safety defects, you will face bankruptcy. If we are to have exclusions, they should be value-based, not quantity-based.

Then there is the position of joint ownership. In many cases, landlords exceed the threshold of more than three UK properties only because they jointly own properties with their partner. I welcome the Government’s rather belated decision to consult on this. They issued a document last week, with consultation due to end next week. That is a very short time for consultation, but if it means that a fit-for-purpose amendment can be introduced in this Bill, then that could excuse it.

The LUHC Committee in the other place, with a government majority, rightly noted last year:

“Leaseholders are no more to blame for non-cladding defects than they are for faulty cladding on homes they bought in good faith. Buy-to-let landlords are no more to blame than other leaseholders for historic building safety defects, and landing them with potentially unaffordable bills will only slow down or prevent works to make buildings safe”.


That, of course, affects everybody in the block. At the moment, there are 4,092 buildings over 11 metres with unsafe cladding, but over half of those—2,077—have no remediation plans in place.

In short, the Building Safety Act created a two-tier system where leaseholders deemed qualifying will benefit from the protections, whereas those arbitrarily deemed non-qualifying have been left to fend for themselves, exposed to uncapped costs for non-cladding remediation. Those people took all available precautions when they bought and are in no way responsible for the defects that now need remediation. Without a truly comprehensive solution for all buildings of all heights and tenures, unfairness and uncertainty are set to perpetuate, not least because there is no deadline for remediation. My amendments to this Bill will seek to rectify those injustices and I hope the Government will listen.

Building Safety

Lord Young of Cookham Excerpts
Wednesday 27th March 2024

(1 day, 18 hours ago)

Lords Chamber
Read Full debate Read Hansard Text Read Debate Ministerial Extracts
Lord Young of Cookham Portrait Lord Young of Cookham (Con)
- Hansard - -

My Lords, I am grateful to my noble friend for the additional information, but can I press her a little further on the key issue raised by the two noble Baronesses: the pace of remediation? I welcome the action taken last year by the Government to compel 50 major developers to sign the developer remediation contract, but it does not have a timescale. One large London-centric developer, Galliard, says that its remediation plan could take another eight years. That will be 15 years after the Grenfell tragedy. Does my noble friend think that is acceptable? Related to that, under the contract, developers are obliged to report their target dates for each building to my noble friend’s department in their quarterly returns data. So far, the department has not published that data, meaning that leaseholders are unaware of what progress is being made. Can she consider publishing that data, which the department has, so that people know the pace agreed by the developer and her department?

Baroness Swinburne Portrait Baroness Swinburne (Con)
- Hansard - - - Excerpts

I thank my noble friend for that question. To start with the second question first, yes, I shall take that back to the department. Given that transparency is a tool that we are using, it would make sense to make that communication transparent. I shall report back to my noble friend on progress on that.

On whether I personally think that developers taking eight years to fix this is acceptable, absolutely not. These are people’s homes; they need to feel safe. The reason why that new money has become available for regulators is to ensure that enforcement action can happen and to increase the pace of the change that is required, ensuring that remediation takes place as soon as possible. Therefore, I suggest that, if there are specific instances, noble Lords should speak to the department so that we can make sure that pressure is put on.

Housing: Young People

Lord Young of Cookham Excerpts
Thursday 14th March 2024

(2 weeks ago)

Lords Chamber
Read Full debate Read Hansard Text Read Debate Ministerial Extracts
Moved by
Lord Young of Cookham Portrait Lord Young of Cookham
- Hansard - -

That this House takes note of the housing needs of young people.

Lord Young of Cookham Portrait Lord Young of Cookham (Con)
- Hansard - -

My Lords, I am grateful to the usual channels in my party for selecting this debate, as my contributions on this subject have sometimes caused distress. I am also grateful to those who have put their names down to speak on a subject whose salience is rising up the political agenda, and I look forward to an informed and constructive debate.

I want to outline what steps might be taken in the next Parliament to improve housing outcomes for everyone, but particularly for young people. They have been one of the principal casualties of the housing market, which the Government themselves admitted in their White Paper seven years ago was broken and which is now, at best, convalescing. The foreword to that White Paper said:

“Soaring prices and rising rents caused by a shortage of the right homes in the right places has slammed the door of the housing market in the face of a whole generation”.


In 1989, more than half of those aged 25 to 34 had a home of their own; now that figure is about a quarter. The most common form of living for those of that age is with their parents. Shelter tells me 45% of renters aged 16 to 24 spend half or more of their income on rent. Many would spend far less with a mortgage on the same property, but the high rent means that they cannot afford a deposit—and, not always mentioned, they are now getting much less space within each flat.

There are wider political consequences from this. That generation of young people have parents and grandparents who share their concern—and may indeed be sharing their home—and will be looking for solutions when they vote later this year.

I was lucky enough to have done nine years as Housing Minister, in four Parliaments, under seven Secretaries of State—counting the noble Lord, Lord Heseltine, twice—and with four Permanent Secretaries, confounding the usual “Yes Minister” caricature of transient politicians and permanent civil servants. I draw on that experience in my contribution to this debate, recognising that I got many things wrong.

The first job of the Prime Minister after the election is to make it clear that the Housing Minister will be there, barring accidents, for the whole of that Parliament. That was not unusual. In my first nine years in the other place, there were two Housing Ministers, each lasting the whole Parliament, and both were highly effective. Since 2010, there have been 16. It is important to understand why this is a serious mistake.

An effective Housing Minister who will drive through the radical changes that are needed must build a strong personal relationship with the key players: the National Housing Federation, Homes England, the LGA, the Chartered Institute of Housing, the Town and Country Planning Association, the Home Builders Federation, and many others, including the think tanks. You cannot subcontract the building of those relationships to civil servants. That takes time.

Those relationships will be crucial in getting a picture of the challenge, but also later on when one needs to draw on trust and good will to get reform through. You need to know which go-ahead directors of housing are making the weather, which housing associations have some interesting solutions, and which group of talents is turning around a difficult-to-let estate. There are some really good people in housing today.

More than that, you need to understand the complexities of public expenditure—you need to know your AME from your DEL—and you need to watch the Treasury like a hawk. That requires an understanding of Treasury theology as well as economics. If the Housing Minister is ever in doubt about what to do, he should consult the person who knows more about housing and has done more for housing than anyone else: the noble Lord, Lord Best. To make my point about continuity: who has been the most successful Cabinet Minister in this Parliament? Ben Wallace—he was there for four years.

The key word in the White Paper I mentioned, Fixing Our Broken Housing Market, was “market”. A market is where buyers and sellers meet and where supply matches demand. A good market would make it easier for people to move, promote mobility and make it easier to buy and sell. The group that would benefit most from this extra mobility are those waiting for their first home.

There are 3.6 million homes with two or more spare bedrooms. Many older people want to trade down or to rightsize, freeing up their homes for young families. Professor Mayhew estimated that we need 50,000 homes for older people who want to rightsize, but we are only producing 8,000. An older person rightsizing triggers a chain of movements, promoting labour mobility and making better use of the stock we have. The planning system should be more proactive in securing the right mix of new builds. The best way to help younger buyers is to help older buyers.

Stamp duty is an important impediment to the market—£15 billion of friction—and then there is the hassle of house purchase. Last year, I sold my car. I took a photo, uploaded the details on a website and had an acceptable offer within hours. Later that day, a flat-bed truck arrived and, as the car was driven up the ramps, the money arrived in my bank account. What comparable progress has been made using modern technology to simplify house purchases? None, since I bought my first home 60 years ago.

Many young people have to rent, but private landlords are leaving the market, due to high interest rates, fears about impending legislation, a less attractive tax regime and new energy efficiency standards. The NRLA says that private landlords are more than twice as likely to sell properties than they are to purchase them, exerting upward pressure on rents. We should say to private landlords that, if they sell to their tenant, no capital gains tax or stamp duty will be payable—not a right to buy but an incentive to sell. That would have a dramatic effect on home ownership for young people, almost certainly lowering their housing costs and enabling them to move up the ladder.

I support the Renters (Reform) Bill—by the way, what has happened to it?—but it will reduce supply. The Bill should have been accompanied by measures to increase supply and put the private rented market on a more sustainable basis. Other countries have a different model, which we should progressively adopt. In Europe, long-term institutional finance provides secure, well-managed rented accommodation; in this country, it provides 2% of the rented stock. We need to progressively reduce the overdependence on the private landlord, who can release capital only by selling, and get the pension funds and insurance industry to invest in what, historically, would have been a better investment than equities. The next Minister needs to get those institutions in the room with the Treasury and unlock the barriers to that investment.

I mentioned selling to the tenant, but what about the deposit? I read in the Times that there is £2.5 trillion tied up in housing equity. That is £2,500 billion, money will eventually end up with children and grandchildren, but not when they need it. I understand all the caveats about equity release and the need to take advice, but the product today avoids any negative equity on death and can reduce inheritance tax. People are cautious about it because of the unknown care costs. Many more would take that option, and help young people buy, if the next Government implement the recommendations of the Dilnot commission in 2011 and cap care costs. Again, focusing on the older generation helps the younger ones.

Many young people will not be in the fortunate position of having that help and will need access to social housing, adding to the 1.2 million people on the waiting list. My party needs to overcome its residual resistance to social housing. The old norms that trade unionists and council tenants voted Labour while home owners and professional people voted Tory have been blown out of the water by Brexit and the 2019 election. In 1953, 250,000 council houses were built and my party won the next two elections. What regime encouraged the local authorities, now going bankrupt, to invest in speculative shopping centres and office blocks when they could have been building houses?

A new Administration should look at the role of social housing for young people. Forty years ago, a young couple could put their name on the waiting list and be reasonably confident that, in due course, they would get to the top. Today, if that young couple are sharing with in-laws or living in rented accommodation, they are not likely to have that ability.

Social housing is focused, rightly, on priority groups: those threatened with homelessness—increasingly under Section 21—threatened with domestic violence, in poor health or living in very poor conditions. Then there is additional pressure from those from Ukraine, and as the Home Office stops using hotels for asylum seekers. Access to social housing has become an accident and emergency service. This raises the sensitive question of life tenancies. If a family face a crisis and then, thanks to social housing and the support that goes with it, rebuild their lives and other options become affordable, should they make way for another family who face the crisis that they once faced? I am not suggesting making them homeless again, but perhaps some nudges.

This is relevant because, the last time I looked, a young couple on the waiting list is eight times more likely to be rehoused through a re-let than through a new build. Increasing the flow through social housing will help them. There is a role for an expanded tenant incentive scheme to help families move on, securing a re-let for those on the waiting list at a fraction of the cost of new build and far quicker.

We need to build more new homes of all tenures to meet demand from first-time buyers. Veterans of the LUR Bill will know my views about planning, confirmed by last month’s CMA report, which referred to a

“complex and unpredictable planning system”

with “under resourced” planning departments. There is no need to increase public expenditure to unblock the system—just allow planning departments to recruit the staff they need and cover their costs with application fees.

Then my party has to confront the nimbys within our ranks. Yes, we may lose a few votes to the ever-opportunistic Lib Dems if unpopular development goes ahead, but we will lose far more if we do not have a coherent housing policy. We should recognise that the green belt is not sacrosanct and should reinstate local authority targets. You cannot rely on the good will of local government to provide the homes we need.

I do not have time to mention all the relevant factors: the tension between second homes and first homes, skill shortages in the building sector, the dominance of large builders, slow buildout rates and getting the balance right in social housing between new build on the one hand and maintenance of existing stock on the other. I hope other noble Lords will fill the gaps. Nor have I mentioned the many good things this Government have done, a deficiency that I know my noble friend, whose commitment to good housing I applaud, will remedy.

Finally, the next Minister will need what I call a following wind—public opinion. In 1966 “Cathy Come Home” did for homeless young families what “Mr Bates vs The Post Office” has done for sub-postmasters. It mobilised public opinion, drove housing up the agenda so that political parties had to respond, and gave birth to Shelter.

My most formidable opponents—Des Wilson and Sheila McKechnie of Shelter—were also my greatest allies. Their tireless, well-targeted and well-informed campaigning was deeply uncomfortable, but it strengthened my bargaining position with the Treasury and more broadly within the Government. We will need that following wind to open the door that was slammed in the face of a whole generation. I beg to move.

--- Later in debate ---
Lord Young of Cookham Portrait Lord Young of Cookham (Con)
- Hansard - -

My Lords, I am grateful to all those who have taken part in this debate. It could go on until 6.26 pm, but the House will be relieved to hear that I plan to speak for just a couple of minutes.

The noble Baroness, Lady Donaghy, quite rightly mentioned Lord McKenzie of Luton, who shadowed me when I was on the Front Bench and asked the most difficult questions with the utmost courtesy. We all miss him. She rightly pointed out the illogicality of current ratable values and the HMO loophole, which does need to be looked at.

I am grateful to the noble Baroness, Lady Thornhill, for her comments, particularly on the need to arrest the drift from long-term lets to short-term lets. There are a number of provisions in the pipeline, and I know she will be keeping a close eye on that.

My noble friend Lord Lilley raised the issue of demand. He was right to do so if one is talking about the housing market, where supply and demand are relevant. Where I think I agree with the noble Lord, Lord Best, is that one needs to raise housing in immigration debates as well as raising immigration in housing debates. I know he and I will both pursue that.

The noble Lord, Lord Best, was also right to mention the disenchantment of young people at the current housing position: it is feeding into disenchantment with politics as well as disenchantment with housing. I am grateful, as always, to the noble Lord, Lord Best. I thought the point he made about the public expenditure benefit of home ownership because it reduces the housing benefit costs of older people was a valid one. I hope the Treasury can feed that into its computer when it looks at future expenditure plans. The noble Lord also rightly mentioned the Letwin review, which had a whole lot of worthwhile policies which I think should be pursued.

We welcome my noble friend Lord Attlee to housing debates, with his robust common sense. We learned that the planning system was a conspiracy to keep the rich rich, but I agree with him on what he said about some of the complexities of the planning system.

I am very grateful to the noble Baroness, Lady Valentine, who focused on temporary accommodation and its huge cost to local authorities; and on the disruption to the families who are caught up in the moves, including the disruption to education. She was right to mention housing benefit. I think she was the only person in the debate to mention housing benefit, which is highly relevant to any debate on housing. She also reminded us of the good people who are doing heroic work in voluntary organisations on the front line.

I am grateful to my noble friend Lord Jackson. On nutrient neutrality, I was slightly surprised after the defeat in your Lordships’ House that the policy was not overturned in the other place, but my days of party management are now way behind me, so I will not go too much into that.

I am grateful to the noble Lord, Lord Shipley, for endorsing the need for the planning departments to have the resources that they need, the need to have up-to-date plans and, of course, the need to increase supply.

The noble Baroness, Lady Taylor, reminded us of Housing First and what we could do when we really had to and how we got everybody who was sleeping rough off the streets. That was a fantastic response by local authorities and voluntary organisations. She agreed with me on the need to reinstate local authority targets.

Finally, I am very grateful to my patient noble friend the Minister, who provided an important balance to our debate by setting on the record the Government’s many achievements. She dealt, as helpfully as she was able to do within the confines of her brief, with all the issues that were raised.

In conclusion, this debate has been a rich quarry for material for party manifestos. I beg to move.

Motion agreed.

Housebuilding

Lord Young of Cookham Excerpts
Wednesday 28th February 2024

(4 weeks, 1 day ago)

Lords Chamber
Read Full debate Read Hansard Text Read Debate Ministerial Extracts
Asked by
Lord Young of Cookham Portrait Lord Young of Cookham
- Hansard - -

To ask His Majesty’s Government what is their response to the final report of the Competition and Markets Authority’s housebuilding market study, published on 26 February.

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

We welcome the CMA’s final report, following its full market study into housebuilding. In 2022, the Secretary of State wrote to the CMA, supporting the suggestion of a full market study, the first since 2008. The Government will now take away and carefully consider these findings and recommendations, and formally respond within 90 days. The CMA’s recommendations can help industry, the Government and regulators to make sure that the market is operating effectively, and working well for consumers.

Lord Young of Cookham Portrait Lord Young of Cookham (Con)
- Hansard - -

I appreciate that the report was published only two days ago, but it was published after the Government made significant changes to housing and planning policy. On those changes, the CMA report is very clear. It says that “significant interventions” and “further actions” are required by government if we are to address what it describes as the “complex and unpredictable” planning system, with its underresourced planning departments. The report also makes it clear that local authorities should have clear housing targets if we are to meet the demand in housing that we have just heard about. Will the Government be looking very sympathetically at these recommendations?

Baroness Scott of Bybrook Portrait Baroness Scott of Bybrook (Con)
- Hansard - - - Excerpts

As I have said, we will carefully consider all the recommendations and findings from the report. Our National Planning Policy Framework means that councils must have local plans in place to deliver more homes in the right places and of the right type that are required in that particular community. As part of the recent consultation on changes to the National Planning Policy Framework, we have committed to review our approach to assessing housing need, once the new housing projections data based on the 2021 census is released next year.

Housing: Section 21 Evictions

Lord Young of Cookham Excerpts
Tuesday 20th February 2024

(1 month, 1 week ago)

Lords Chamber
Read Full debate Read Hansard Text Read Debate Ministerial Extracts
Baroness Penn Portrait Baroness Penn (Con)
- Hansard - - - Excerpts

My Lords, we have always set out our intention, in the White Paper that preceded the Bill and in the guidance that goes alongside the Bill, that we will need to give six months’ notice for implementing Section 21 for new tenancies. That is to give time for a number of things to happen. The noble Baroness is right that we need to allow time for the courts to prepare for this, to allow evictions, court rules, forms and administrative systems to be updated. It is also to allow for secondary legislation that flows from the primary legislation to be laid, and for guidance to be put in place. But we are working hard, and we have already provided upfront money to the court system to kick-start that process, so that we can move towards implementation as soon as possible.

Lord Young of Cookham Portrait Lord Young of Cookham (Con)
- Hansard - -

Could the Minister clarify that? On the Laura Kuenssberg programme, Michael Gove said that Section 21 would be “outlawed” before the general election. Does that mean that, by the time of the general election, a landlord will not be able to serve a Section 21 notice on a tenant?

Baroness Penn Portrait Baroness Penn (Con)
- Hansard - - - Excerpts

My Lords, I looked very carefully at what my right honourable friend said, and he said that we will have outlawed it by the next general election—we will have passed the Bill and put money into the courts to ensure that we can enforce it. We are already putting money into the courts—£1.2 million this year.

Leasehold: Property Management Companies

Lord Young of Cookham Excerpts
Monday 19th February 2024

(1 month, 1 week ago)

Lords Chamber
Read Full debate Read Hansard Text Read Debate Ministerial Extracts
Baroness Penn Portrait Baroness Penn (Con)
- Hansard - - - Excerpts

I am afraid I have to disagree with the noble Lord’s assessment of the Bill. I can set out a number of ways in which the Bill will improve the position of leaseholders regarding service charges. It will require greater transparency of service charges, so that leaseholders receive key information regularly; we will rebalance the legal costs regime, giving leaseholders greater confidence to challenge their service charges; it will replace the buildings insurance commissions system for managing agents, so that transparent admission fees are in place; and it will increase the non-residential limit from 25% to 50% for buying the freehold or exercising the right to manage, giving leaseholders greater rights in respect of taking over the freehold of their property or managing it themselves.

Lord Young of Cookham Portrait Lord Young of Cookham (Con)
- Hansard - -

My Lords, my noble friend will know that the law of forfeiture allows a managing agent to take possession of a flat worth, say, £500,000 if there is a debt of more than £350 outstanding. In those circumstances, the freeholder pockets the difference between the value of the flat and the debt. Surely the leasehold Bill should put a stop to that.

Local Authorities: Financial Difficulties

Lord Young of Cookham Excerpts
Wednesday 14th February 2024

(1 month, 1 week ago)

Lords Chamber
Read Full debate Read Hansard Text Read Debate Ministerial Extracts
Baroness Scott of Bybrook Portrait Baroness Scott of Bybrook (Con)
- Hansard - - - Excerpts

My Lords, for many years we have had a cap on council tax increases. It remains at 2.99% for the general fund, with 2% extra for councils that want more money for social care funding. However, the department is establishing an expert panel to advise local government and the department on local government financial sustainability into the future. The panel will include the LGA and the Office for Local Government, and we look forward to its findings.

Lord Young of Cookham Portrait Lord Young of Cookham (Con)
- Hansard - -

My Lords, the local authorities that have so far gone bankrupt and applied for Section 114 have, by and large, been the authors of their own misfortune. Is my noble friend the Minister aware that many well-run upper-tier authorities—controlled by all parties—are now running out of road? Will not whoever wins the next election have to undertake a major review of local government finance? The current regime of overreliance on government grants, rate capping and an out-of-date council tax is simply unsustainable.

Local Authority Finances

Lord Young of Cookham Excerpts
Tuesday 6th February 2024

(1 month, 3 weeks ago)

Lords Chamber
Read Full debate Read Hansard Text Read Debate Ministerial Extracts
Baroness Penn Portrait Baroness Penn (Con)
- Hansard - - - Excerpts

My Lords, we recognise the pressures that local government is facing. That is why we have announced such a substantive increase into the funding for councils this year. We recognise that the voluntary sector is often an important delivery partner for local authorities in the work that they do. They will benefit from the settlement that we have announced. My department also works carefully with, for example, the Department for Culture, Media and Sport, which leads on the voluntary sector, to ensure that we understand the impact on the voluntary sector and the interplay with local government.

Lord Young of Cookham Portrait Lord Young of Cookham (Con)
- Hansard - -

My Lords, local authorities are no longer run by Derek Hatton, Ken Livingstone and Ted Knight, the bogeymen of 40 years ago, but the legislation which they provoked is still with us—rate capping. As a result, many well-run upper-tier local authorities struggle to provide good-quality adult and children’s services despite the increase and are looking at Section 114 notices. Against a background of devolution and promotion of local accountability, has the time not come to review the rate-capping policy?

Baroness Penn Portrait Baroness Penn (Con)
- Hansard - - - Excerpts

My Lords, we are committed to broader reform of local government finance, but we have said, in recognition of the disruption and uncertainty caused by the pandemic, that this will be something for the next Parliament. We have also set out ambitious proposals when it comes to devolution of greater powers and greater financial decision-making to local government. That starts with the trail-blazer authorities in Greater Manchester and the West Midlands but will be on offer more widely across the country.

Housing: Accessibility Standards

Lord Young of Cookham Excerpts
Monday 5th February 2024

(1 month, 3 weeks ago)

Lords Chamber
Read Full debate Read Hansard Text Read Debate Ministerial Extracts
Lord Young of Cookham Portrait Lord Young of Cookham (Con)
- Hansard - -

My Lords, further to the question of the noble Lord, Lord Best, I too welcome the decision to make these new accessibility standards mandatory, but the M4(2) standards have been around since 2015 and the building industry is already familiar with them. Surely, any consultation should be quite quick and the regulations should come into effect during the lifetime of this Parliament.

Baroness Penn Portrait Baroness Penn (Con)
- Hansard - - - Excerpts

My noble friend makes a good case. As he will know, the Government have already consulted on the principle of this. A technical consultation would be needed to take forward the mandating of the standard.

Temporary Accommodation Costs

Lord Young of Cookham Excerpts
Wednesday 31st January 2024

(1 month, 3 weeks ago)

Lords Chamber
Read Full debate Read Hansard Text Read Debate Ministerial Extracts
Baroness Scott of Bybrook Portrait Baroness Scott of Bybrook (Con)
- Hansard - - - Excerpts

I think I have already answered most of that. We have increased the amount of money going to the base budgets of local authorities across the country this year. We are giving money to prevent homelessness—which is as important as dealing with the issue. As I have said, we are giving money to councils so that they can build better properties and access better temporary accommodation. We are doing all we can in what has been quite a difficult economic climate. However, we are coming out of it, things are beginning to look better, and houses are being built.

Lord Young of Cookham Portrait Lord Young of Cookham (Con)
- Hansard - -

My Lords, my noble friend will not be surprised to hear that I think we should be building a lot more houses. In the meantime, should we not consider amending the Renters (Reform) Bill, now in another place, to increase substantially the amount of long-term institutional investment in private renting and relieve some of the pressures on the market that we have been hearing about?

Baroness Scott of Bybrook Portrait Baroness Scott of Bybrook (Con)
- Hansard - - - Excerpts

My noble friend is absolutely right. The Government will support institutional investment in the private sector as well as in the social rented sector, provided, of course, that they stick to the rules and we can regulate them. That includes Build to Rent homes, which can boost supply and drive up standards. We are offering support through the £1.5 billion levelling up home building fund being delivered through Homes England to provide loans, equity investment and joint ventures to encourage such institutional investment companies and to support new Build to Rent developments. I think they will be a growing part of the market.