Levelling-up and Regeneration Bill

Lord Young of Cookham Excerpts

Committee stage
Wednesday 15th March 2023 Lords Chamber

I am not suggesting that all of these can or should be used here in the UK, but they are examples of what can be done when there is real political will to unleash the opportunities for local areas’ social, economic and environmental potential and to reduce regional inequalities. This can be achieved only when pinned to real fiscal devolution. It will be interesting to hear the Minister’s reply on the Government’s thinking on this issue, not just on spending decentralisation and structural changes. I beg to move.

[Lord Young of Cookham (Con)]

My Lords, I want to make a brief contribution to this debate, because it goes to the heart of the discussion about whether we believe in decentralisation and about the role of local government in a decentralised country.

The levelling up White Paper says:

“We’ll usher in a revolution in local democracy.”


Later on, it states that local leaders in other countries have

“much greater revenue-raising powers”,

a point that the noble Lord, Lord Scriven, has just made. As I said at Second Reading, there is nothing about greater revenue-raising powers in the Bill, and the probing amendment that we have just heard moved puts that right by initiating a broader discussion.

I welcome some of the announcements in the Budget about devolving more powers to mayoral authorities and allowing local authorities to retain more of the business rates, but devolving greater ability to spend central government money and keeping more of their own money is not actually the move towards a more self-sufficient, independent and confident local government that many of us would like to see.

I take this opportunity to briefly restate a suggestion that I made in January. Over the next 10 years, some £25 billion in fuel duty will disappear as we all buy electric vehicles, and the revenue foregone will be met by road pricing, now made possible by in-car technology —a transition that successive Governments have ducked but, I suspect, will not be able to duck much longer. However, that revenue from road pricing should not go to the Treasury or central government; it should complement the existing revenue from parking and congestion charges, where it would logically sit, and go to the larger units of local government which we have been debating today. That would give local government greater autonomy and a sounder basis for local taxation than the increasingly discredited and out-of-date council tax.

There are other ways of raising local revenue, and the noble Lord, Lord Scriven, touched on a few. However, in replying to this debate, I wonder whether my noble friend can show just a little bit of ankle on the Government’s thinking—whether they are really interested in empowering genuine local democracy by giving the sort of powers implied in this amendment.

[Lord Jackson of Peterborough (Con)]

My Lords, I wish to speak briefly to this very good and interesting probing amendment from the noble Lord, Lord Scriven, and it is a pleasure to follow my noble friend Lord Young, who I know has great expertise in local government. We represented different parts of the London Borough of Ealing in different capacities over many years.

The noble Lord, Lord Scriven, has not compared apples with apples but apples with pears. We are a unitary state—we are not a federal state like Australia, Canada, Germany, Italy or France, where they have regional government and a culture of accretion of power to the local level. Therefore, we have to have some central sanction and control of the disbursal of funds. So I do not think that the noble Lord is necessarily comparing the situation that we are in wholly accurately.

However, the noble Lord makes a very astute point about the hoarding of power, particularly financial power, by the Treasury. Any Minister will tell you that, over the years, the Treasury has not wanted to give power away and has wanted to bring in power. The noble Lord is absolutely right that far too much of the funding of core local services is in effect subject to the begging-bowl approach, as enunciated by Andy Street, the executive mayor of the West Midlands.

The problem with the situation that we now have—the disparity of local councils being responsible to their electorate for decisions, in effect, taken centrally—is that central government of whatever party is in power gets the income in and can make those judgments based on its manifesto, but it is local councillors and officers who are accountable and often take the brickbats for failures. For instance, many people have argued for many years about residential real estate investment trusts leveraging private sector money to provide new, good-quality housing for young people in particular. The Treasury has never really advanced that properly, and local government could be very much involved in it. Social care is another area. All Governments should look at tax breaks for providing extra care facilities—in terms of nutrition, housing, exercise and so on—for old people from the age of 60 all the way through to death, as many countries have across the world. That is an example of a central government policy that could also help local government.

I have great sympathy for the amendment from the noble Lord, Lord Scriven. I hope there is further debate on it. It cannot be right that we cannot follow other modern liberal democracies such as the United States where local authorities and mayors have the capacity, for instance, to raise funds for the issuance of bonds, local infrastructure and capital projects. We have very restrictive financial and legal rules in this country that prevent us doing the same. On that basis, we have begun a good debate and I look to my noble friends on the Front Bench to run with it and, as my noble friend Lord Young of Cookham said, show some ankle, as it is long overdue.

Levelling-up and Regeneration Bill

Lord Young of Cookham Excerpts

Committee stage
Wednesday 22nd February 2023 Lords Chamber

[Lord Kennedy of Southwark (Lab Co-op)]

My Lords, first, I declare an interest as a leaseholder. Secondly, these are issues that I have raised repeatedly in the House over many years, and I want to put on the record my thanks to Liam Spender, Katie Kendrick and all the Leasehold Knowledge Partnership for their great work on the campaigns here. These broader issues began to get real attention in the House, and in the country, following the tragic fire at Grenfell Tower on the 14 June 2017, which will be six years ago this June. From that, there was resultant attention on building safety. Then, we have had the building safety work done by Dame Judith Hackitt, and we of course wait for the results of the second phase of the Grenfell Tower Inquiry.

After that, attention began to focus on the problems of leasehold as a tenure in itself. These problems have been rumbling away for many years. I first of all say that there are many good freeholders and managing agents—there is no question about that. But, as usual, it is the rogues that are the problem, and we have rogue freeholders and rogue managing agents. In some cases, they are connected, but that is the problem. They see leaseholders as an easy cash cow and that is what we want to address. I hope that we would all agree that this form of tenure has had its day, and that the sooner it is abolished and confined to the history books, the better.

I know that my constant raising of this issue in the House can be a bit irritating for the Government, but for me it is the only way of getting any action. Whatever else I do or do not do, I am quite good at being irritating when I need to be. We need to raise these issues to get some real action. Over many years, I have raised issues and have engaged with the noble Lords, Lord Bourne of Aberystwyth and Lord Greenhalgh, who is in his place, and the noble Baroness, Lady Scott of Bybrook. Generally, I have received loads of support. Everyone agrees with me: “We’ve got to sort the problem out. Absolutely right, Roy, it is on the Government’s priority list; we’re gonna deal with it”, but we do not actually get much action. We sit here time and time again.

With my Amendments 42 and 43, I hope that we can get some clarity from the noble Earl, Lord Howe, and from the Government, on what we are going to do in the next Session of Parliament. I am also a bit confused; maybe it is me, but I am. We keep being told that this is going to come in the King’s Speech—“Don’t worry about it, Roy, it’s all coming”—but then we are not quite clear about what actually is coming down the track. The Government are not being clear. Is it a Bill to reform leasehold tenure of residential housing, or is it a Bill to abolish this feudal system of residential housing? I do not think that it can be both; it is either/or. We need some clarity.

I will give an example of why I think there is confusion. In a recent article in the Sunday Times, which covered the issues arising from Grenfell, Mr Michael Gove, the right honourable Member for Surrey Heath in the other place, said that he intended to abolish the feudal system for residential housing—wonderful news. On the same Sunday, he also appeared on Sophy Ridge’s programme on Sky News. He could not have been clearer. He made it crystal clear that he intended to abolish leasehold housing before the next general election. He said:

“In crude terms, if you buy a flat, that should be yours.”


He went on to say that leasehold is an unfair form of property ownership.

“You shouldn’t be on the hook for charges that managing agents and others can land you with which are gouging.”


I watched that again today in my office. I agree with all of it. I was really pleased to watch the programme, and it was great to read the article in the paper. But then there was his Statement in the House of Commons, in which he did not quite say that. He talked about reforming leasehold as a tenure in the next Parliament—not abolishing it. The Statement was great and there were some really good things in it, but it was not saying the same thing. I hope to get absolute clarity: is it abolition or reform? At the moment, people are saying different things to different audiences. That is not right. We need to know what the issue is. It is great that a lot has been said about reform, but we must get this right.

I apologise that I could not be in the House this week when my Question was asked. My noble friend Lady Taylor of Stevenage asked it for me. The Minister could not have been clearer that the intention was to abolish leasehold housing. She answered the Question in about 20 words. Again, this is not what is being heard elsewhere. We need to be absolutely clear as to the intention.

My amendments in this group are intended to help the Government. Amendment 42 sets out what the Government should do within 90 days of laying a statement of levelling-up missions. It focuses on all the issues around the reform that we want, such as tribunal judgments and insurance and forfeiture. There have been scandals about insurance payments. This amendment deals with those. I hope that the Government can accept it, or at least be in discussion with us about what can happen before the next stage of the Bill.

My Amendment 43 talks about abolition. We have two choices. Let us know what it is and let us get it sorted.

I hope that the Government can accept these amendments. If they are not prepared to do so, we have a series of Private Members’ Bills on the green sheets which refer to all these issues. There is the Leasehold Reform (Reasonableness of Service Charges) Bill, the Leasehold Reform (Disclosure and Insurance Commissions) Bill, the Leasehold Reform (Tribunal Judgments and Legal Costs) Bill and the Leasehold Reform (Forfeiture) Bill. The Government could easily adopt these Private Members’ Bills and agree their stated intention without problem. I am sure that they would have the full support of the House. My amendments seek clarity from the Government: is it reform or abolition? Which do they want to do? We do not want to trundle along into the next Session without being clear. Everyone will just become upset and confused. I am sure that the Minister will respond well to this debate. Can he be absolutely clear as to what is going to happen to this Bill in the next Session? We can all then work to make sure that it is delivered. I beg to move.

[Lord Young of Cookham (Con)]

My Lords, I have added my name to the probing amendment from the noble Lord, Lord Kennedy, which he has moved modestly from the Back Benches and which presses the Government on their approach to leasehold reform. This issue was raised on Monday, as the noble Lord has just said.

I will concentrate on proposed new subsection (4) in the amendment. This requires something which I have asked for on many occasions, namely, draft legislation in advance of a Bill. We now know that the next Session of Parliament will not start until the autumn, whereas I believe that the department had been planning to introduce the Bill shortly after the State Opening in May. This Bill was originally planned for the current Session, so gestation should by now be well advanced and a draft Bill should be oven ready.

There are two consequences that flow from the postponement of the next Session. First, the next—and last—Session of this Parliament may be shorter, with less capacity to pass Bills. Bills that might have got a provisional slot in the longer Session originally planned, may drop out if the Session is shorter. This is the equivalent of legislative musical chairs when the music stops. Secondly, there is now time to publish the Bill in draft, to iron out any wrinkles and so accelerate and simplify its passage. I am sure that my noble friend is in favour of this. This would also avoid the risk of getting caught in an early Dissolution next year. I must say that I did not follow the argument deployed on Monday that publishing in draft would “slow the process down”. I would argue that the contrary is the case.

My noble friend may not recently have read the Cabinet Office Guide to Making Legislation, updated last year, which says:

“The Government is committed to publishing more of its bills in draft before they are formally introduced to Parliament, and to submitting them to a parliamentary committee for parliamentary pre-legislative scrutiny where possible.”


It goes on to say:

“While publication in draft does not guarantee a place in the following year's programme, it is a factor that the PBL Committee”—


the Parliamentary Business and Legislation Committee—“will look on favourably”. The reasons are amplified:

“There are a number of reasons why publication in draft for pre-legislative scrutiny is desirable. It allows thorough consultation while the bill is in a more easily amendable form and makes it easier to ensure that both potential parliamentary objections and stakeholder views are elicited. This can assist the passage of the bill when it is introduced to parliament at a later stage and increases scrutiny of government legislation.”


Finally, on timing, the guidance says:

“Draft bills should be published in time to give the committee carrying out scrutiny at least three to four months (excluding parliamentary recess) to carry out its work and still report in time for the department to make any necessary changes before the bill is introduced.”


So we have plenty of time.

Against this recently stated government policy of publishing Bills in draft, the Government have under- performed. They have published one draft Bill for the current Session—the draft mental health Bill—compared with an average of 5.6 Bills per Session for the previous 17 Sessions. It published only two Bills in each of the preceding two years.

The House will excuse my lack of modesty when I say that, in 2012-13, when I was Leader of the House in another place, we published 13 Bills in draft. Here we have not just an opportunity to get this Bill right, but to improve on the less than impressive record on draft legislation. Indeed, not publishing the Bill in draft is contrary to government policy, as I have just explained.

I turn briefly to the substance of the proposed new clause. On 6 December 2022, my noble friend Lady Scott held a round-table meeting on leasehold reform, which was attended by officials and a number of noble Lords. I am very grateful to my noble friend for holding that meeting. We were asked what our expectations of future legislation were. I handed over a very long shopping list. It included existing commitments, such as on collective enfranchisement, but also many of the items in the amendment from the noble Lord, Lord Kennedy, such as banning forfeiture and additional measures of consumer protection.

Can my noble friend confirm that the Bill will enact all the commitments that the Government have made in this area—both in their manifesto and subsequently? Can he confirm what the Secretary of State has said that it is the Government’s intention to abolish the outdated feudal leasehold system? In other words, after a given date, will it be illegal to sell a property on leasehold, so all sales will have to be on commonhold?

We need clarity soon, and a draft Bill would give that. Leaseholders thinking of extending their leases need to know whether to wait and take advantage of any new rules on costs of extension, or to play for safety, extend now and then possibly regret it. The same applies to collective enfranchisement. There is an element of blight on the market until such time as the Government can shed light on their proposals.

I hope that my noble friend will reconsider the decision not to publish a draft Bill and show as much ankle as he is able this evening on the Government’s proposals for this Bill.

--- Later in debate ---

[Earl Howe (Con)]

My Lords, as we have heard loud and clear from the noble Lord, Lord Kennedy, in his introduction to this group, Amendments 42 and 43 relate to leasehold reform in the context of the levelling- up housing mission. They provide me with a good opportunity to bring the Committee up to date on the Government’s plans for reform in this policy area, and the action that we are taking now. However, I should first declare my interest as set out in the register as the beneficial owner of a freehold property that is subject to a long lease.

At the end of January, my right honourable friend the Secretary of State for Levelling Up set out his intention in Parliament to bring, as he put it, the “outdated and feudal” leasehold system to an end. The Government wish to extend the benefits of freehold ownership to more home owners, and that is why we have committed to end the sale of new leasehold houses and to reinvigorate commonhold so that it can finally be a genuine alternative to leasehold. It is why we have limited the charging of ground rent, as my noble friend mentioned, in most new residential leases, which takes away the incentive to build leasehold. It is why we will make it easier for leaseholders to purchase the freehold of their building and take control of their building management by enhancing enfranchisement and the right to manage.

Leasehold and commonhold reform will support the mission to level up home ownership and promote true home ownership for all by fundamentally correcting the power imbalance at the heart of the leasehold system and putting the power into the rightful hands of home owners. The Government’s reform package is advancing this agenda by building on the Leasehold Reform (Ground Rent) Act, which aims to make home ownership fairer and more transparent for thousands of future leaseholders by preventing landlords under new residential long leases requiring a leaseholder to pay a financial ground rent.

Furthermore, thousands of existing leaseholders have already seen a reduction in their inflated ground rent costs as part of the ongoing Competition and Markets Authority investigation into potential mis-selling and unfair terms in the leasehold sector. The Government are encouraging developers of all sizes to come to the negotiating table if they have not already.

The noble Lord, Lord Thurlow, referred to insurance. There are several issues around insurance, as I am sure he is aware. One of them is that leaseholders are often unable to gain visibility of the costs that make up their premiums, and nor do they have useful routes to challenge these. We will act by arming leaseholders with more information and will ensure that leaseholders are not subject to unjustified legal costs and can claim their legal costs back from their landlord.

The Government are committed to delivering the second phase of their major two-part leasehold reform within this Parliament. I am afraid the noble Lord, Lord Kennedy, will have to wait for the detail of the Bill but, as he has pressed me on the question of reform or abolition, I can do no better than refer him again to my right honourable friend’s words. He made clear his intention to bring the system of leasehold to an end.

As part of these reforms, the Government remain committed to better protecting and empowering leaseholders, first, by giving them more information on what their costs cover, as I have alluded to, and, secondly, by ensuring they are not subject to any unjustified legal costs and can claim their own legal costs from their landlord.

My noble friend Lord Young of Cookham sought to press me on pre-legislative scrutiny. At this stage I can simply say that the Government welcome the work and engagement of noble Lords and other parliamentarians to date on leasehold and commonhold reform. We will of course consider how best to involve Peers, Select Committees, Members of Parliament and wider stakeholders in the development of any future legislation.

[Lord Young of Cookham (Con)]

Would the best way to achieve the ambition my noble friend has just set out not be to publish the draft Bill?

[Earl Howe (Con)]

My Lords, we fully understand the desire for urgency in this area. The Minister, my noble friend Lady Scott, has made this clear at this Dispatch Box previously. As I hope my noble friend Lord Young knows, her department is working very hard indeed on this policy area.

Levelling-up and Regeneration Bill

Lord Young of Cookham Excerpts

Committee stage
Monday 20th February 2023 Lords Chamber

[Baroness Willis of Summertown (CB)]

My Lords I will speak to Amendment 28 in my name and thank the noble Baronesses, Lady Parminter and Lady Jones of Whitchurch, for adding their names to it. This amendment has one simple purpose: to include in the Bill a mission on access to a healthy environment.

I will provide a few statistics to illustrate perfectly why this is necessary. A report by Public Health England in 2020 found that

“the most affluent 20% of wards in England have five times the amount of parks or general green space compared with the most deprived 10% of wards”.

Similarly, a report published by the community charity Groundwork in 2021 found that fewer than half of those with a household income of less than £15,000 reported green space within five minutes’ walk of their home, compared to two-thirds of those whose income was more than £35,000.

A 2020 Ramblers survey found that just 39% of people from ethnic minority backgrounds reported living within five minutes of a local park, field or canal path, compared to the national average of 57%—a really big gap. These and many other studies and similar reports suggest that in England we have massive inequality of access to healthy green and blue environments near to cities.

Why does this inequality in access to healthy environments in cities matter? It matters because there is an ever-increasing body of research from medical practitioners, psychiatrists and other public health authorities across the world that, even when taking into account socioeconomic factors, areas with more blue and green spaces are associated with higher health and mental well-being outcomes. These include things that cost thousands, if not millions, of pounds each year to deal with through the National Health Service, such as reduced levels of obesity, anxiety and stress-related illnesses, and lower incidences of respiratory and cardiovascular diseases.

There is more: green and blue spaces have been shown to play an important role in social cohesion, bringing communities together and reducing loneliness. They have also been shown to improve cognitive performance, especially in schoolchildren. To go back to many of the debates on the Environment Act, green spaces in cities are known to significantly reduce pollution and the effects of overheating and flooding.

If we have inequality in access to healthy environments, we have inequality in all of the benefits that these green and blue spaces provide in cities, and associated with this are really serious economic implications. For example, in a study last year, Natural England estimated that the National Health Service could save well over £2 billion a year through reduced demand if everyone in England had good access to green space. Indeed, the importance of access to green and blue space has been recognised globally. We signed up to that commitment in the United Nations Convention on Biological Diversity in December 2022. The target we signed up to is to:

“Significantly increase … access to … green and blue spaces in … densely populated areas”.


Why should this mission be included in the Bill? Why can it not be delivered, as is being suggested, via other legislation such as the Environment Act and associated policies such as net biodiversity gain and the Government’s new target in their environmental improvement plan? Indeed, this target is

“to ensure that anyone can reach green or blue space within 15 minutes from their front door.”

As I hope I have made clear, access to blue and green space is far broader than just a matter for Defra and ensuring that we protect nature in cities. It is about ensuring that, via spatial planning processes, these healthy environments are in the right places for the right people, so that they can then gain the multiple benefits that many of us already have from access to these blue and green spaces. Some of these spaces, of course, may be delivered by net biodiversity gain and the environmental improvement plan, but neither of these have specific mechanisms closely aligned to the planning process which would enable targeted delivery in the areas most in need—in particular, starting with areas with the lowest incomes and the highest percentages of ethnic minorities.

If the Levelling-up and Regeneration Bill is really to deliver and reduce inequalities in England, and to achieve its missions and targets in health, well-being and even education, this is exactly the right place to include an additional mission for equality of access to high-quality blue and green space. By including this in the Bill, planners, local councils and others involved in infrastructure and planning decisions will have to properly take into consideration access to blue and green space and all the benefits that we get with that.

In summary, my amendment has the core objective of reducing inequality in access to a healthy environment by maximising the number of people who live within 15 minutes’ walk of a high-quality natural green or blue space.

[Lord Young of Cookham (Con)]

My Lords, I add a brief contribution from these Benches to the excellent speeches that have been made on Amendments 4 and 8. I say to the noble Baroness, Lady Willis, that there will be an opportunity later in the Bill to develop her arguments when we come to the amendments in the names of the noble Lord, Lord Crisp, and others about a healthy environment.

I listened to what the noble Baroness, Lady Lister, said on the first group and again on the group we are now debating, and there is a powerful case for addressing child poverty—indeed, all forms of poverty—if one is to genuinely level up. Can I say something which I hope will be helpful to the Government? I think there is a way through. If one looks at the levelling-up missions on page xvii of the executive summary of the White Paper, one will see the mission to:

“Boost productivity, pay, jobs and living standards by growing the private sector”.


It seems that if one developed that section of the mission on improving living standards and focused it directly in the way that has been suggested in Amendments 4 and 8 on children living in poverty—or, indeed, all those living in poverty—one could address the arguments that have been made.

Capital Projects: Spending Decisions

Lord Young of Cookham Excerpts

Monday 20th February 2023 Lords Chamber

[Baroness Scott of Bybrook (Con)]

No, I do not agree. I think that a £9.9 billion investment into levelling up shows a Government who are putting their money where their mouth is. They are delivering levelling up across the country and will do so in future. They have already done so with the future high streets fund, the towns fund, the UK shared prosperity fund—which is about to come out—and even small funds such as the community renewal fund. These are all delivering things for people in this country.

[Lord Young of Cookham (Con)]

My Lords, on the issue of capital spending, three local authorities have made disastrous capital investments and are now having to raise their council tax by more than the cap in order to rebuild their balances. Should not they have been obliged to hold a local referendum to explain their imprudence to the local electorate, rather than blaming the Government for the increase?

[Baroness Scott of Bybrook (Con)]

I think my noble friend is speaking about the significant failures in Thurrock, Croydon and Slough. These authorities have asked the Government for flexibility to increase their council tax by an additional amount. Given the exceptional financial difficulties which, I have to say, were driven by poor decision-making in the past, the Government felt that we should not oppose their request. It is important that the councils remain working to deliver services, but I assure the House that we are working with them, challenging them, and have people in there to make sure that they improve and recover.

Leasehold Charges

Lord Young of Cookham Excerpts

Monday 20th February 2023 Lords Chamber

[Baroness Scott of Bybrook (Con)]

The Government would absolutely agree with that. My right honourable friend the Secretary of State set out in the Commons his intention to bring the outdated and feudal leasehold system to an end.

[Lord Young of Cookham (Con)]

My Lords, last month I asked my noble friend if she would publish the promised leasehold reform Bill in draft. She said she would love to, if only to stop the question being repeatedly asked; but she then declined. We now know that the next Session is not going to start until the autumn. Is there not now adequate time to publish the Bill in draft and knock it into shape before the last Session of this Parliament, which may be foreshortened?

[Baroness Scott of Bybrook (Con)]

I thank my noble friend, who perhaps knows more than I do about when that Bill will come to the other place and then to this House. Seriously, publishing a draft at this stage would slow the process down and I do not think any of us wants to do that. But I do welcome the engagement we are already regularly having on leasehold and commonhold reform. I am very happy to work continually with MPs, noble Lords and wider stakeholders until the Bill comes to the House.

Building Safety

Lord Young of Cookham Excerpts

Thursday 2nd February 2023 Lords Chamber

[Lord Young of Cookham (Con)]

My Lords, I join others in warmly welcoming the Statement made earlier this week. As has been said, it marks an important milestone on the road to justice for the thousands of leaseholders whose lives have been on hold, as the noble Baroness, Lady Brinton, said. I welcome what my noble friend has just said in updating us on the progress being made in making these blocks safer.

But, may I press my noble friend on two sentences in the Statement? The first is:

“Leaseholders should know that the law is on their side.”


The second is:

“When we were told that leaseholders must pay, we … protected”


them. However, there are two groups of leaseholders for whom, sadly, that is not the case, and who are not given protection under the Bill. The first is leaseholders who have enfranchised, following government encouragement, and become freeholders. When I raised this nearly a year ago in Committee, the words of my noble friend’s predecessor, my noble friend Lord Greenhalgh, gave me some assurance:

“They are effectively leaseholders that have enfranchised as opposed to freeholders.”—[Official Report, 28/2/22; col. GC 262.]


Sadly, after my amendment was rejected, they are effectively freeholders, and they do not have the protection extended to other leaseholders in the Bill.

The second category was touched on by the noble Baroness, Lady Brinton: leaseholders in buildings under 11 metres, who are not covered by the Bill either, but they are confronted by the same problems as leaseholders in tall buildings. They are getting high service charges, they are living in buildings with defective cladding or other fire safety defects, and they are exposed to these costs. In both cases, I was promised consultation to remedy what I regard as a manifest injustice. Can my noble friend update me on the outcome of those consultations?

[Baroness Scott of Bybrook (Con)]

I thank my noble friend for reminding me that I have not spoken about buildings under 11 metres. I know the noble Baroness, Lady Pinnock, would never forgive me if I did not answer that question. I will start, though, with enfranchised leaseholders, which I do remember in the context of the Bill. The Government have published a call for evidence on leaseholders in buildings over 11 metres or five storeys, which closed on 14 November last year. We are analysing those responses and considering the feedback prior to finalising the policy. However, enfranchised leaseholders living in buildings covered by the developer remediation contract will be protected from the cost of remedying life-critical fire safety defects arising from buildings’ design and/or construction. Furthermore, leaseholders in buildings over 11 metres are protected from the costs of remediating unsafe cladding, even where the developer has not signed the contract, which is important. Costs may be met through the building safety fund or the new medium-rise fund. I think we are doing what my noble friend wants, although it might be a bit slower than he would have preferred.

On buildings under 11 metres, which I know have been a concern for many noble Lords in these debates, the Government are committed to understanding the full scale and nature of historical building safety issues facing leaseholders in these buildings. As such, we welcome further information. The department set up a dedicated inbox for leaseholders and managing agents of these buildings to contact the department about their specific buildings. We will work with them on that. We stress that the responsibility for the costs of fixing historical building safety defects should still rest with the building owners. They should not pass these costs on to the leaseholders but seek to recover costs from those responsible for building the unsafe buildings in the first place.

I would like to emphasise that the risk to life from historical fire safety defects is much lower in buildings under 11 metres. That is no excuse, but it is rare for these buildings to require building safety-related remediation works. The Government’s assessment therefore remains that extending the protection to buildings under 11 metres is probably neither needed nor proportionate, but we will work with leaseholders and agents of these buildings if they have specific issues.

Local Councils: 2023-24 Budgets

Lord Young of Cookham Excerpts

Wednesday 25th January 2023 Lords Chamber

[Baroness Scott of Bybrook (Con)]

My Lords, local authorities across this country are doing some very creative things to make their money go further. They are working closely with others in their local areas to deliver the services that their residents deserve. I think that this will go on. Through the levelling-up Bill that has come here, we will see different ways in which local government can join together to make itself far more financially viable.

[Lord Young of Cookham (Con)]

My Lords, allowing local authority expenditure to increase by 9.2% in cash terms seems reasonable to me against the background of the current economic challenges. However, if, pursuant to my noble friend the Minister’s reply, a local authority thinks that that is wrong for its area, it is free to spend more if it can persuade the local electorate to vote for that in a referendum. Is that not a more democratic way of approaching local government finance than the crude rate-capping that we had before?

[Baroness Scott of Bybrook (Con)]

I absolutely agree with my noble friend, not only on that point but that councils can look to a referendum. It is important that, if they look for a referendum, they say what they are going to spend the money on so that local people have a choice.

Levelling Up: Funding Allocation

Lord Young of Cookham Excerpts

Monday 23rd January 2023 Lords Chamber

[Baroness Scott of Bybrook (Con)]

My Lords, we absolutely still agree with the whole project of levelling up. I just need to say that, of all the bids, the north-west—this will please the noble Lord opposite—had the highest number of successful projects and was second in funding per capita; Wales was top and the north-east was third. I suggest that that is putting the money where it is required.

[Lord Young of Cookham (Con)]

My Lords, I quite understand why the Government wanted to kick-start the levelling-up policy with these centrally allocated grants, but looking ahead, and given the commitment in the levelling-up White Paper to usher in a revolution in local democracy, should not these funds in future be added to the block grant given to the increasingly large local authorities set up under the Bill and then local people could decide what their priorities are, with local councillors accountable to their local electorate?

[Baroness Scott of Bybrook (Con)]

My Lords, competitive funding can be a very effective tool for protecting value for taxpayers’ money. Competitions such as the levelling-up fund can also support fair and transparent awards of funds and drive innovation, but I understand my noble friend’s concerns and the Government have committed, within the levelling-up White Paper, to reducing the complexities of local government funding.

Levelling-up and Regeneration Bill

Lord Young of Cookham Excerpts

2nd reading
Tuesday 17th January 2023 Lords Chamber

[Lord Young of Cookham (Con)]

My Lords, some five hours ago the first Government Back-Bench speaker was my noble friend Lord Bourne, which begins with “B”. I am the last Government Back-Bench speaker, and my name begins with “Y”. Can I make a plea for some alphabetical levelling up next time?

In the time available I will make two points, one specific and one general. The specific one, which I raised yesterday, relates to the Government’s proposal to make local housing targets discretionary and not mandatory. For nine years on and off I had ministerial responsibility for housing and planning, most of them under the benign but watchful eye of my noble friend Lord Heseltine, whose contribution was the outstanding feature of today’s high-quality debate. Based on that experience, you will never get the homes the country needs if you rely on the good will of local government. It was not local government that made the commitment to 300,000 houses; it was us—the Government. Local government, with its local electorate, will never deliver that target. Look at all the foot-dragging with local plans. It will opt out of the tough decisions unless there is a target.

However, now the Government are proposing to abandon the one lever that they have to deliver that commitment. Assuring people that new homes will be well designed will not take the trick. The objections will come when land is zoned for development, long before any designs are in the public domain. Therefore, I hope that noble Lords will change the Bill back to what the Government originally proposed before they backed down in the other place. If not, they run real risks at the next election, not just for not hitting the 300,000 target—we understand about Covid—but for not taking seriously an issue rising steadily up the political agenda, not least the need for more affordable housing, as mentioned by so many noble Lords in this debate.

On a happier note, my general point is that I welcome the motivation behind the Bill. A country with stark inequalities between communities will be an unstable one, and there are strong political, economic and social arguments for levelling up and giving equal opportunities to everyone regardless of where they live.

The first sentence of last year’s White Paper stated that:

“From day one, the defining mission of this government has been to level up this country”.


However, turning that mission into tangible policies is difficult. I and the noble Lord, Lord Hunt of Kings Heath, discovered this on your Lordships’ committee when we heard that levelling up meant different things to different people, if indeed it meant anything at all. I have knocked on more doors than anyone else in this Chamber.

[Noble Lords]

Oh!

[Lord Young of Cookham (Con)]

All right—I have knocked on nearly as many doors as all the noble Lords in this Chamber. I have never met anyone who said, “George, what I really want is to be levelled up.” They want better schools, shorter waiting lists, crucially with priorities differing from place to place. My noble friend Lord Lucas wants a sixth-form college in Eastbourne, while the noble Lord, Lord Hunt, wants better rail services in the West Midlands. I believe the Government can achieve their objective through a different route: by giving local authorities much more autonomy to reflect those varying priorities than what is proposed, and by making this a much more decentralised country.

This Bill was never meant to be called the levelling up Bill. At the beginning of this Parliament we were promised a White Paper on devolution. That commitment was abandoned in May 2021, when we were told that a new levelling up White Paper would be published later, which would supersede it. The White Paper said:

“We’ll usher in a revolution in local democracy.”


It later made the point that local leaders in other countries have

“much greater revenue-raising powers.”

But there is absolutely nothing about that in the Bill. Devolving greater ability to spend central government money with strings attached is not a revolution in local democracy; it is a step change in local administration.

Let me make a radical suggestion to decentralise and to turbocharge levelling up by empowering local democracy. Over the next 10 years, revenue from fuel duty, some £25 billion, will disappear as we buy electric vehicles. The revenue foregone will be met by road pricing, now made possible by in-car technology—a transition that the Government will no longer be able to duck. However, that revenue should not go to central government but should complement the existing revenue from parking and congestion charges and go to the larger units of local government encouraged by the Bill. This would give local government greater autonomy and a sounder basis of local taxation than the increasingly discredited and out of date council tax, which raises the same amount from a mansion in Belgrave Square as a terraced house in Oakham, in Leicestershire. I would expect this proposal to be welcomed by my noble friend the Minister, as I came across a statement released by the County Councils Network calling for

“Full fiscal devolution to counties to create an extra £26bn in GVA”,


signed by the leader of Wiltshire Council, my noble friend Lady Scott.

In conclusion, rather than rigidly following the targets in 12 centrally derived missions, I honestly believe that more people will believe that they have been levelled up if we go down this route of local democratic empowerment.

Housebuilding: Government Targets

Lord Young of Cookham Excerpts

Monday 16th January 2023 Lords Chamber

Asked by

[Lord Young of Cookham]

To ask His Majesty’s Government whether it remains their policy to build 300,000 homes a year.

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

The Government remain committed to continuing to work towards our ambition of delivering 300,000 homes a year, as set out in the 2019 Conservative manifesto. We are making good progress. Annual housing supply is up 10% compared with the previous year, with more than 232,000 net additional homes delivered in 2021-22. This is the third-highest yearly rate for the last 30 years.

[Lord Young of Cookham (Con)]

I am grateful to my noble friend for that renewed commitment, but does she recall the 2019 White Paper Fixing Our Broken Housing Market, which listed a number of reasons why we might not hit that target? The first one said that

“some local authorities can duck potentially difficult decisions, because they are free to come up with their own methodology for calculating ‘objectively assessed need’.”

Does my noble friend understand that asking local authorities to make the housing target discretionary rather than mandatory makes it less likely that we will hit the 300,000 target, because you cannot rely on the good will of local authorities to meet a national mandate?

[Baroness Scott of Bybrook (Con)]

My Lords, we remain committed to a plan-led system. National planning policy expects local planning authorities, through their plans, to make sufficient provision for housing and to identify the sites to deliver much-needed homes to meet local needs. To get enough homes built in places where people and communities need them, a crucial first step is to plan for the right number of homes. That is why we remain committed to the 300,000 homes target and to retaining a clear starting point for calculating local housing needs. We are currently consulting on changes to the planning policy that will support how we plan to deliver the homes our communities need.