Building Safety
Michael Gove Excerpts(1 year, 8 months ago)
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The Secretary of State for Levelling Up, Housing and Communities (Michael Gove)
With your permission, Madam Deputy Speaker, I would like to update the House on the progress the Government have made in securing commitments from developers to remediate properties with building safety defects. Last year, the major house builders signed a pledge to fix all the medium or high-rise buildings that they had built or refurbished that were unsafe. The developers also promised to reimburse the taxpayer for work already undertaken at Government expense.
This Parliament has always been clear that those with ultimate responsibility for those buildings should bear the cost of remediation. Innocent leaseholders, who are neither responsible for safety defects nor equipped with the resources to fix the problem, should not be on the hook. Those who are responsible must pay. We have worked with developers to draw up a contract that gives direct effect to the pledge that they made. I was and remain grateful to those developers who have been so keen to live up to those obligations, and I am particularly grateful to Stewart Baseley of the Home Builders Federation for his skilful work in supporting the commitments made.
We published the legal contract on 30 January this year, and I gave an initial cohort of developers six weeks to confirm that they accepted the list of buildings for which they take responsibility and then to sign the contract. That deadline expired yesterday. I can confirm that 39 developers have signed the contract. We have published a list of those developers on gov.uk and hard copies of the list have been shared with the Vote Office. By signing the contracts, those developers have committed to fixing at least 1,100 buildings. They will invest more than £2 billion in that work—money saved for the taxpayer and invested in giving leaseholders a brighter future. I thank those developers for their hard work and co-operation in helping us to right the wrongs of the past. They are making significant financial commitments and I am grateful to them.
Leaseholders who have been waiting for work to be done to make their building safe will quite rightly want that work to start without delay. I know that those responsible developers who have signed the contract understand that expectation and will be in touch with leaseholders to set out the programme of expected works as soon as possible. I take the opportunity once again to apologise to those leaseholders and others who have waited so long for this work to be done. While there is still much to do, I hope today shows that their campaigning and that of so many hon. Members has not been in vain. While the overwhelming majority of major developers have signed, some regrettably have not. Parliament has made clear what that means, and so have I. Those companies will be out of the house building business in England entirely unless and until they change their course. Next week I will publish key features of our new responsible actors scheme, a means of ensuring that only those committed to building safety will be allowed to build in future.
Those developers who have been invited to sign the remediation contract, but who have not agreed to live up to their responsibilities, will not be eligible to join the responsible actors scheme. They will not be able to commence new developments in England or receive building control approval for work already under way. The House should note that the companies invited to sign the remediation contract who have not yet lived up to their responsibilities are Abbey Developments, Avant, Ballymore, Dandara, Emerson Group (Jones Homes), Galliard Homes, Inland Homes, Lendlease, London Square, Rydon Homes and Telford Homes.
While my officials remain in discussions with several who are making progress towards signing, I am concerned that some companies do not appreciate the grave nature of the responsibility they bear. I hope the directors of those firms will now exercise the same level of responsibility as the leaders of the building industry. The reluctance so far of some companies to sign up only underlines the need for the responsible actors scheme. It will ensure that there are consequences for developers who wish to be, at the moment, neither answerable nor accountable.
I will take other steps to ensure that companies live up to their responsibilities. I will be writing to major investors in those firms to explain the commercial implications of their directors’ current decisions. I will write to local authorities and building inspectors to explain that those developers’ projects may not be started or signed off. I will notify public bodies to be prepared to reopen tender award processes or rerun competitions. House buyers will want to know what that means for them, and we will formally set out the risks involved in purchasing homes from companies that have chosen to ignore the prospect of prohibitions.
I accept that the course of action that I have set out today is a significant intervention in the market for any Government, but the magnitude of the crisis that we faced and the depth of the suffering for all those affected clearly justified a radical approach. To their credit, the leaders of the development industry have willingly accepted the need for action. The vast majority of developers, as we should all appreciate, have made undertakings to the British public to put right the wrongs of the past. I am glad we can now work together with leaders in the industry on making sure that we deliver more safe, affordable, decent homes for the country.
As those developers have rightly argued, we in Government will also do more to pursue freeholders who have yet to live up to their responsibilities and construction product manufacturers, who also bear heavy responsibility for unsafe buildings. I will have more to say on that in the days and weeks to come. For the many thousands of people whose lives have been blighted by the failure properly to address building safety in the past, today’s update brings us one more step closer to at last resolving the issue, and for that reason I commend the statement to the House.
Lisa Nandy (Wigan) (Lab)
I thank the Secretary of State for advance sight of his statement. We want to see every developer sign the remediation contract and urgently move to fix the unsafe buildings and free leaseholders who have been trapped for too long. Throughout this process, we have supported steps to speed that up and provide support to leaseholders. In that spirit, I welcome the statement and I do not doubt the Secretary of State’s sincerity in dealing with this problem, nor the deeply held convictions on all sides of the House.
However, I fear that the collective will of this House to see that done is being damaged by what appears to be an increasingly dysfunctional approach from the Government. Last week the Secretary of State was on social media threatening major house builders with a nationwide ban if they failed to sign up to the contract within a matter of days. He is 100% right to say the developers should pay, but it undermines his case when his own Department had not even managed to send the contract to them.
That really matters, because until builders sign, leaseholder groups remain in limbo. They need more than tough talk; they need clarity and competence. For the 10 developers who signed the initial pledge but not the contract, which as the Secretary of State rightly says includes Galliard Homes, Ballymore and—shamefully, given its role in Grenfell—Rydon Homes, will he be using the powers at his disposal to designate the developers who cannot be granted planning permission? Crucially, can he tell us from when?
The Secretary of State is right to say this is a step forward, but there are many more steps to go. Leaseholders need not another deadline, but real action and hope on the horizon. Can he spell out exactly what this action will mean for developments that have already begun under those developers and that have already received planning consent? Will he be using the powers at his disposal to issue remediation orders to force them to fix their buildings in the meantime? Can he also tell us whether the 39 who have signed the contract will be obliged to fix all critical fire safety defects, as defined by the Building Safety Act 2022, and what will happen if they do not? There is a gap between the contract and the Act, and we need to make sure that the cost of that gap is not borne by leaseholders.
The contract, the Secretary of State says, will cover over 1,000 buildings. Given that his own Department has estimated that there are between 6,000 and 9,000 unsafe 11 to 18-metre buildings alone, it clearly only deals with a fraction of the problem. How does he plan to assist leaseholders in buildings with defects that are outside the scope of the contract in getting them remediated? Remediation remains painfully slow—something he knows and has rightly acknowledged—but the contract stipulates only that repairs and remediation must be carried out
“as soon as reasonably practicable”.
Again, I push him for hard timescales and deadlines.
On the issue of who is responsible, may I again ask the Secretary of State why British house builders are being asked to pay, while foreign developers and the companies that made the materials used in affected buildings are still not? That is a basic question of justice.
We should all be moving heaven and earth to right this wrong, yet the House of Lords Committee that scrutinised amendments to the Building Safety (Leaseholder Protections) (England) Regulations 2022 found that that instrument contained an unintentional drafting error that excluded parent and sister companies from being considered as associated with the landlord. That meant that landlords could avoid the £2 million net worth threshold above which they must not pass on to leaseholders costs for repairing historical defects. Despite that error as a result of a mistake at the Secretary of State’s Department, no compensation has been forthcoming for leaseholders who have had to pay remediation costs, and no plans are in place to alert those leaseholders to the possibility of applying to a tribunal to seek cost recovery. What is the Department doing to identify affected leaseholders and inform them that an appeal route to recover costs is available to them?
Finally, I say to the Secretary of State that there is, I think, cross-party agreement now that this is not the only issue for leaseholders. Leasehold is a feudal system that has no place in a modern society. It is time that we ended—abolished—the scandal of leasehold once and for all, and ended the misery for the far too many people who are trapped in that feudal system. Labour appreciates what he has done to move this desperate situation forward, but it remains in his gift to fix it once and for all, and we would fail in our duty if we did not take every opportunity to urge him to do so.
Michael Gove
I am grateful to the hon. Lady for the thoughtful and detailed way in which she has responded to the announcement, and for the support from her and colleagues across the House for the work that we have undertaken.
The hon. Lady asks about contracts and the speed with which they have been signed. Again, just to inform her and the House, we ensured that developers were given a copy of the contract on 30 January, when it was published. A final version was sent to developers with minor alterations on 21 February. The execution version of the contract depended on the developers themselves providing the Department with a list of affected buildings, so it was the work of developers, not of the Department, that led to the late signing of contracts, but I am grateful to all who have now signed.
The hon. Lady asks about the responsible actors scheme, when it will be implemented and the effect it will have. We will lay details of the responsible actors scheme next week. I want to allow some of the 11 who have not yet signed a little leeway to ensure that they live up to their responsibilities. The letters that I have written to the directors of the companies concerned will, I think, help to concentrate their minds to ensure that they have a chance to sign before we lay the responsible actors scheme details next week.
The hon. Lady asks if the powers in the 2022 Act will be used for those who will not have signed by that time. They absolutely will. She asks if we will fix all critical features. All life-critical features in medium and high-rise buildings will be addressed by developers. It is the case that with buildings under 11 metres, there are some fire safety issues, but we have to look at them case by case—some will be life-critical; some will not. Our cladding safety scheme, which addresses mid-rise buildings specifically—those between 11 and 18 metres—should, I hope, deal with the delay, which she rightly points out, in dealing with the fire safety issue for that crucial section of our housing sector.
The hon. Lady makes the point about foreign developers and the need to tackle them, and I quite agree with her. It is important that we use all the tools in our power, and we are exploring sanctions, criminal options and others. The one thing that I would say is that there is one jurisdiction—not a foreign jurisdiction but an adjacent one—where action has not been taken to deal with some of those responsible, and that, of course, is Wales. I ask her to work with me to ensure that the Welsh Labour Government take appropriate steps to deal with the situation in Wales. We stand ready to work with them and with all parties in that regard.
The hon. Lady also asks about the need to abolish the invidious and feudal system of leasehold. As someone who was born in Scotland—mercifully, a country free from that system—I can say only that this is one area where I hope that England at last catches up with one part of the United Kingdom that is, in that respect at least, more progressive.
Sir Peter Bottomley (Worthing West) (Con)
I declare an interest in having a leasehold property—although I have no problems with it—and I also have minor shares in some building companies so that I can get at their boards when necessary.
I thank the Secretary of State for his continuing work. May I reinforce a question asked from the Labour Front Bench: how many buildings beyond the 1,100 still need a way forward? Can we agree that leaseholders and others want to know that their own homes are safe and saleable? We know that the task is to find the problems, fix them and pay for them.
I put it to the Secretary of State that the one group that seems to be left out of this is that of the insurance companies who covered the developers, the architects, the builders, the component suppliers and, for that matter, those who did building control. I believe that leaseholders’ potential claims need to be put together, and that we need to get the insurance companies round the table and say that the surplus money will come from them, or else they can have expensive litigation backed by a Government agency, which they will lose.
Michael Gove
I am grateful to the Father of the House, who has been indefatigable in his efforts on behalf of those affected by this crisis and of leaseholders more broadly. I should say, for his benefit and that of the House and the Opposition, that developers will be updating leaseholders on progress towards remediation quarterly on 31 January, 31 April, 31 July and 31 October each year—that will be public accountability.
I should also say for the benefit of my hon. Friend and the House that 96% of the most dangerous buildings—those with aluminium composite material cladding—have either completed or started remediation work. There are other high-rise buildings with other forms of unsafe cladding—1,208 such buildings. They are in the building safety fund. More than 350 of those buildings have now been addressed, and more than £1.7 billion of Government money has gone towards making those buildings safe. Progress, but not at the pace that either of us would have liked. His point about insurance companies is well made, and I will follow up subsequently.
Chris Stephens (Glasgow South West) (SNP)
I thank the Secretary of State for advance sight of his statement. I have a couple of quick questions.
On the developers who have not signed, the Secretary of State is obviously talking about the situation in England. Does he intend to share that information with the devolved Administrations? Those companies may have interests in devolved areas.
What happens if a non-compliant building has defects that extend beyond fire performance matters? Further defects are often discovered only after the opening works have commenced and cladding has been removed—I am thinking particularly of acoustic and thermal non-compliance. Could the Secretary of State tell us which independent bodies will manage the work to identify such defects, and how will developers be held to account for them?
Finally, what is the Secretary of State’s plan when owners and/or developers of non-compliant buildings cannot be traced?
Michael Gove
We will certainly share information with the devolved Administrations. As I mentioned briefly, we want to work with the Welsh Government, and indeed with the Scottish Government, to ensure that everyone is in a safe building and that businesses that are not operating in accordance with their responsibilities cannot wriggle out of their responsibilities. I look forward to working with the new First Minister—whoever she is—in due course to achieve progress.
On non-compliant buildings, the hon. Gentleman is certainly right that, as we replace cladding, new faults are sometimes identified. Developers have a responsibility to deal with those if they were the original responsible actor. That brings me to his third question. Where it is not a developer who takes responsibility but a freeholder, our recovery strategy unit is working to identify all the freeholders responsible. It is only in the very last instance that leaseholders may be liable for costs, and even then, they are firmly capped under legislation that this House passed.
John Redwood (Wokingham) (Con)
Given the shortage of capacity, what steps are the Government taking to encourage more businesses and people to come forward to provide good-quality building and construction work?
Michael Gove
My right hon. Friend makes an important point. We need to ensure that we have in the development sector, and indeed in the building safety sector, a range of companies and actors determined to do the right thing. Some of the changes that we are making—to the national planning policy framework, for example, and other steps that my right hon. Friend the Chancellor will announce in due course—are designed to ensure that we have a diverse and energetic private sector market helping consumers and leaseholders.
Madam Deputy Speaker (Dame Rosie Winterton)
I call the Chair of the Levelling Up, Housing and Communities Committee.
Mr Clive Betts (Sheffield South East) (Lab)
I thank the Secretary of State for his statement. Clearly, any progress in this matter is welcome for the leaseholders who are still sat there, wondering when something is going to happen to their unsafe homes. The Under-Secretary of State for Levelling Up, Housing and Communities, the hon. Member for North East Derbyshire (Lee Rowley), is coming to the Select Committee next Monday. I apologise in advance that, for personal reasons, I cannot be there, but I am sure the scrutiny will be just as effective under the oversight of the hon. Member for Harrow East (Bob Blackman).
A number of issues have been raised with the Select Committee. First, in terms of the agreement that developers are signing, it was said to us that the remediation standards developers will have to work to will not be as strict as those under the Building Safety Act. Can the Secretary of State confirm whether that is true? Secondly, the Committee spoke to product manufacturers the other week, who said that they had had no contact with the Department for the last 12 months. Is that true, and if so, when will that contact be renewed, so that they can be held to account?
Finally, the Minister says, “I’m going to look at this” every time I ask him. Kate Henderson of the National Housing Federation told the Committee on Monday that the cost of remediating these matters will be £6 billion for social housing providers. They have only had a tiny bit of money under the ACM cladding measures. Will the Secretary of State look at that again? Otherwise, there will be cutbacks to the house building programme that they all want to engage in.
Michael Gove
I thank the Chairman of the Select Committee for his questions. I note his apology for not being able to be there to cross examine my hon. Friend the Minister for local government and building safety next Monday. I know that my hon. Friend the Member for Harrow East (Bob Blackman) will do a brilliant job. They are the Morse and Lewis of—
Michael Gove
Well, quite. I know that they will show endeavour in asking the right questions.
On remediation standards, I do not believe it is the case that the developers are being held to any less high a standard than that which exists in the Building Safety Act, but I look forward to working with the hon. Gentleman and others to identify any gap between what the Act makes provision for and anything that developers have committed to do.
It is the case that I have not been in touch with the Construction Products Association as a corporate body for a while. We have been pursuing individual construction product companies, but of course, our actions have to take account of the actions of others who may be pursuing them for criminal activity and liability.
On the hon. Gentleman’s point about the National Housing Federation, I have been in conversations with the Chancellor of the Exchequer about what more we can do to support the social housing sector. How richly those conversations bear fruit, we will have to see.
Tom Hunt (Ipswich) (Con)
The Secretary of State is well aware of the situation with Cardinal Lofts. Today at 10 minutes past two, a formal prohibition notice was served, so any remaining constituents of mine in that building will be obliged to leave. One of the worst things is the lack of timescale for how long my constituents will be in limbo. They cannot plan their lives—their lives are on hold. Will the Secretary of State work with me to try to get that certainty as soon as possible and look into compensation that goes beyond covering temporary accommodation? The extent to which their lives has been affected is unacceptable. He will also know that Railpen was aware of these issues for two years before it decided to take any action at all.
Michael Gove
My hon. Friend is right, and he has been a fantastic champion for the residents of Cardinal Lofts and other people affected by this. I think I am right in saying that Railpen is the ultimate owner of the freehold for this building. It is the pension fund for those who work in the rail sector. There are good trade unionists on the board of that pension fund to whom I appeal to show the same degree of energy in helping working people as my hon. Friend. While pension funds of course have fiduciary responsibilities and all the rest of it, it is vital that we do right by the residents of this building. I hope I will have the chance to visit Ipswich soon, to make good on that commitment.
Ms Lyn Brown (West Ham) (Lab)
I thank the Secretary of State for his care in this matter, but I still have hundreds of constituents who are in financial limbo and mental turmoil because of safety problems that are not of their making. Frankly, West Ham is a building site at the moment. Stratford, West Ham, Plaistow and Canning Town all have major building contracts ongoing. If the developers are not on the “goodie” list of those who have signed the right bits of paper, what happens to that development and the oversight of it? I know that my constituents would want me to ask this: what will he be able to do for those who have not been fully covered by the remediation contract?
Michael Gove
I am grateful to the hon. Lady for standing up so well for her constituents, as she always does. Actions have to have consequences. The overwhelming majority of developers have done the right thing by signing this contract. It would be wrong for anyone who has wriggled out of their responsibilities to be allowed to continue to make a profit when others are shouldering these responsibilities. It is the case that if a company is not on, as she puts it, the goodie list, that will be it—development will have to pause, and we will make sure that their shareholders and investors pay the price for the irresponsibility of their directors.
On the broader point, if the hon. Lady, on behalf of her constituents, would like to get in touch with my Department and, in particular, our recovery strategy unit, there may well be developments or buildings in her constituency that are not covered by this where there are freeholders or other people responsible whom we need to track down. We look forward to working with her.
Bob Blackman (Harrow East) (Con)
I warmly congratulate my right hon. Friend on the progress he is making. Leaseholders are the most important people we have to look after. There will be people who have paid out huge sums of money to companies that are on the goodie list of those who signed this contract. They will want to know what happens to them. There will be people who have received estimates for huge amounts of money they are expected to pay. What happens to them? Most importantly, there are leaseholders who reside in buildings the developers of which we do not know and are not covered by this. Will my right hon. Friend set out the position for those people and give us a guarantee that, if we cannot trace the developers, the Government will step in and put this right for the people who live in these properties?
Michael Gove
My hon. Friend makes a very good point. One thing that I was aware of before doing this job but have become clearer on since is that there are actors in the property market operating in the UK who hide behind opaque corporate structures, operate offshore and set up special purpose vehicles in order to get building done and then disappear from their responsibilities afterwards. That is why we set up the recovery strategy unit, and it is no criticism of any of our predecessors, because we have not faced a situation quite like this before. The whole purpose of the recovery strategy unit is to identify the ultimate beneficial owner of the building who should take responsibility. Developers who are operating as responsible plcs have all signed this contract. That is great and a real step forward, but there is still more to do.
On the point about leaseholders, we have a system that we have legislated on—it is not perfect, but it is a big step forward—which means there is a cap on the individual liability of any leaseholder, and the taxpayer has committed significant sums. I think—and I suspect this is a view shared across the House—that the building safety crisis shines a light on sharp practice by a small minority of people in the broader property sector that we need to take several steps to deal with, including improved land transparency legislation and other steps that will ensure we do not have a butler economy in this country, whereby people operating in the property sector put profit ahead of people.
Madam Deputy Speaker (Dame Rosie Winterton)
I need to reiterate that I can only call Members who arrived at the beginning of the statement. It is the responsibility of Members to make sure they get here in time to hear the Secretary of State’s statement from the beginning. I assure Members that I and the other Deputy Speakers are even-handed about this.
Hilary Benn (Leeds Central) (Lab)
I very much welcome this statement, but I want to ask the Secretary of State about people living in buildings under 11 metres. The Government were not prepared to extend full coverage to them but said they would look at those buildings on a case-by-case basis—a commitment that the Secretary of State repeated this afternoon. Could he tell us how that is going? How many of those buildings have had assistance? What criteria are he and his colleagues using in deciding where to offer help? Does it include, for example, cases where the developers or builders went bust years ago? Does it include buildings where the leaseholders still cannot sell their flats because mortgage companies will not lend on them, despite the Royal Institution of Chartered Surveyors advice?
Michael Gove
The right hon. Gentleman makes a very important point. In most cases, a building under 11 metres which might, for example, have cladding on it, or might have some of the materials that in other circumstances would be systemically unsafe, does not have safety risk. We need to look proportionately at each building, and that takes time. Thanks to the energetic efforts of the Minister for building safety, my hon. Friend the Member for North East Derbyshire, we have reached agreement with a majority of lenders, which are now lending against properties, because through the engagement we have had with them, there is now a more proportionate way of deciding whether or not to lend against those buildings. As we have discussed in the past, however, let us look at individual cases, and if constituency cases and examples have come to light that the right hon. Gentleman feels are not captured by the steps we have taken so far, I look forward to working with him to address them.
Marsha De Cordova (Battersea) (Lab)
I thank the Secretary of State for his statement and the progress he is making on this issue, but action is still needed to address what has become a two-tier system of building safety support for leaseholders. As has already been mentioned, leaseholders in Battersea who reside in buildings under 11 metres or in a development that has become an enfranchised building do not qualify for the support for which other leaseholders rightly qualify. They feel abandoned by this Government. If the Government are looking at this issue on a case-by-case basis, I would love to understand a bit more how it will work, because I want to ensure that those leaseholders are getting the support they need.
Michael Gove
The hon. Lady makes a very important point. In the legislation, there is a category of non-qualifying leaseholders: people who have more than one property. We wanted to attempt to draw the line in order to ensure that, for example, significant investors—people with significant means—were not benefiting from a scheme that was designed for every man and woman, as it were. However, I have some constituents who are in the same boat as the hon. Lady’s, and we are looking at the situation to try to make sure that we do not have people at the margins who are being treated unfairly. I cannot make any promises at this stage, but the hon. Lady raises an important point, and we are aware of it.
Jamie Stone (Caithness, Sutherland and Easter Ross) (LD)
I address the right hon. Gentleman as a fellow Scot, and I welcome the new spirit of accord that there will surely be between himself and the new First Minister, whoever she or he is. As I drive through the right hon. Gentleman’s home city of Aberdeen, I see the high-rise flats. I do not know what condition those flats are in, but it occurs to me that a similar dialogue between a Scottish local authority such as Aberdeen City Council and a suitable one south of the border could be very constructive when sorting these problems out. Will the Secretary of State undertake to encourage that sort of co-operation?
Michael Gove
Yes. The hon. Gentleman makes a very important point, and he is absolutely right: co-operation between councils, between the UK Government and local authorities in devolved areas, and between the UK Government and devolved Administrations is the way forward. We all deserve Governments who are working together to resolve this issue. He makes a very good point: in Aberdeen, as well as in Dundee, Glasgow, Edinburgh and some other areas, there are high-rise buildings that are in precisely this situation. It would be a pleasure to work with the Lib Dem coalition council in Aberdeen to try to make sure that that council can benefit from the experience of local authorities in England.
Sir Stephen Timms (East Ham) (Lab)
During the Secretary of State’s statement on 30 January, I asked about the problem of excessive insurance charges being imposed on leaseholders. He recognised the problem, and promised
“additional Financial Conduct Authority and Government co-ordinated action”—[Official Report, 30 January 2023; Vol. 727, c. 55.]
to address it. Can the Secretary of State update us on progress? By the way, he has not yet replied to my letter to him on this subject, dated 13 January.
Michael Gove
I apologise to the Chair of the Work and Pensions Committee for the discourtesy. I will have a word with my private office team; it is my fault that he has not received a reply.
I hope to update the House shortly on the progress we are making with the FCA and others on insurance costs. When I made the statement last time around, I explained the steps we are taking with managing agents and intermediaries, but the right hon. Gentleman is right—as is the Father of the House, my hon. Friend the Member for Worthing West (Sir Peter Bottomley)—that there are broader issues in the insurance market that we need to address.
Stephen Doughty (Cardiff South and Penarth) (Lab/Co-op)
It is important that we see which developers have actually commenced or completed works, not just signed up to the contract. My understanding is that only 11 of the non-ACM buildings in England have been remediated and signed off, so will the Secretary of State publish a full list of the works that are under way from different developers?
Secondly, the Secretary of State made a bit of a gibe at Wales, but the reality is that we need to work together across the UK on this issue. What is he doing about the pipeline of contractors and surveyors? A remediation project in my constituency had to be stopped recently because a contractor was having an issue separately in England. This issue does not require gibing between the two Governments: it requires working together.
Michael Gove
The hon. Gentleman makes two very important points. On the first, we will work with those who have signed the contract to publish an update on the work that has been done, and as I mentioned, we will share quarterly updates with the House and with everyone affected in order to hold developers to account. Given the willing heart with which most have signed, I am very confident that we will see good progress.
On the point about the situation in Wales, again, I always enjoy working with Ministers in the Welsh Government to achieve our common ends across the United Kingdom. I absolutely take the hon. Gentleman’s point in good part.
Mike Amesbury (Weaver Vale) (Lab)
Looking at the finer details of the developer contract that some developers have signed—I think the Secretary of State said 39 had done so—I see that it does not cover all the fire defects laid out in the Building Safety Act. Why is that, and who is going to pay for that work?
Michael Gove
That point has been made by other hon. and right hon. Members. I do believe that developers are living up to their responsibilities to deal with life-critical safety defects in medium and high-rise buildings, but as we have discussed, some buildings fall outside those categories. We are working on bespoke solutions for those.
Paul Blomfield (Sheffield Central) (Lab)
As the Secretary of State knows, not only are developers frustrating leaseholder rights. In response to his last statement, I raised the case of Mandale House in my constituency; leaseholders in Daisy Spring Works have the same, or a similar, problem. The common factor is the managing agents, Y&Y Management, which also has freehold interests. That company is not simply denying leaseholders their rights: it is doing so on the basis of challenging the legality of the Secretary of State’s own legislation. Those leaseholders do not have the resources to challenge Y&Y’s lawyers, so I have shared the relevant information with the Secretary of State’s Department. Can he reassure me that he will use all of the resources at his disposal to tackle Y&Y and ensure its leaseholders get the rights under the Building Safety Act that he intended?
Michael Gove
Absolutely. I want to be really fair to the hon. Member: he is doing the right thing. He has highlighted an abuse and has contacted the Department in a co-operative and detailed fashion. The Minister for Building Safety, my hon. Friend the Member for North East Derbyshire, has been looking closely at that case. There is more that we can do, and I thank the hon. Member on behalf of his constituents for being tenacious in trying to get a good deal for them.
Clive Efford (Eltham) (Lab)
I have a Galliard development in my constituency, and my constituents will be concerned that Galliard has not signed. They would like to hear from the Secretary of State what that means for them. They have life-critical safety defects in the building, which is shocking, because that building construction was paused as a consequence of the tragedy at Grenfell, yet Galliard went on to develop a building that has those defects. What does today’s statement from the Secretary of State mean for my constituents who are waiting to hear from Galliard about the state of their buildings?
Michael Gove
This is a sad note on which to come to the conclusion of the statement, because Galliard is one of the companies that has been the most recalcitrant throughout, and I sympathise with the hon. Gentleman’s constituents. Other companies have done the right thing and have done so with a willing heart, but Galliard has held out—it has briefed against the Department and all the rest of it. Unless Galliard signs, it will face consequences, and its business model will be fundamentally challenged by the legislation that we in this House have passed. Ultimately, with a company such as Galliard whose owners, directors and investors are determined not to play ball, the consequences will come for it. I want to be clear with the hon. Member and this House that Galliard will face condign consequences if it does not act.
Building Safety
Michael Gove Excerpts(1 year, 8 months ago)
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The Secretary of State for Levelling Up, Housing and Communities (Michael Gove)
On 30 January 2023, the Government published the developer remediation contract and gave an initial cohort of developers six weeks to sign it. The deadline expired yesterday and I wish to share the responses.
I can today confirm that 39 developers have signed the contract. A list of those developers has been published on gov.uk. These developers represent a substantial proportion of our housing market. By signing the contract, they have irreversibly committed to fixing at least 1,100 buildings at a cost to themselves of more than £2 billion.
The contract gives effect to the self-remediation pledge that the largest house-builders signed last year. It requires signatories to fix all life-critical fire-safety defects in all buildings in England over 11 metres that they had a role in developing or refurbishing. It also requires them to reimburse the taxpayer where Government funds have already paid for remediation, with that money being used to make other buildings safe faster.
I wish to place on the record my appreciation for the lengths that developers have gone to to agree this contract, and the significant commitments that it entails. It is a testament to the sense of responsibility that I know is felt throughout the industry. It also reflects the determination that we all share to protect leaseholders from unjust costs. In that spirit, we will of course monitor the performance of obligations under the contract. These will begin with their informing leaseholders that they have accepted responsibility for buildings, and set out timescales for work to commence.
A total of 11 eligible developers that were invited to sign the contract have not yet done so. Some have asked reasonable questions about the arrangements for payments. Others have simply not got themselves organised, have failed to engage in time, or have not arranged their internal governance in good time. In accordance with provisions in the Building Safety Act, the Government will publish further information next week on how developers will be prohibited from commencing or completing developments in England, unless they sign and adhere to the contract. Regulations will, with Parliament’s consent, establish the responsible actors scheme and set out the criteria for membership. Developers who do not sign the contract will be ineligible to join the scheme, and subject to the prohibitions. A list of developers that are yet to sign the contract has been published on gov.uk today.
The signing of this contract by so many developers is an acceptance of their share in our collective responsibility for building safety and brings us closer to resolving the issue for leaseholders and tenants.
Let me take this opportunity, once again, to apologise to those leaseholders, and others, who have waited so long for this work to be done. While there is still much to do, I hope that today does show that your campaigning has not been in vain.
The Government will continue to remove dangerous cladding from buildings whose developers have not signed the contract or cannot be traced, using its building safety funds.
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Planning System Consultations
Michael Gove Excerpts(1 year, 9 months ago)
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The Secretary of State for Levelling Up, Housing and Communities (Michael Gove)
Today I have launched two formal consultations on proposals to improve the planning system to support measures in the Levelling Up and Regeneration Bill.
Planning fees
Planning application fees provide essential income for local planning authorities to be able to deliver their planning service.
This consultation seeks views on proposals to increase planning fees by 35 per cent. for major applications and 25 per cent. for all other applications, including proposals for fees indexation, to support greater resourcing and financial sustainability for local planning authorities. The consultation also seeks views on how the Government can provide additional support for building capacity and capability in local planning authorities.
All applicants should be able to benefit from a high-quality and timely planning service, so the consultation also asks for views on new performance measures.
This consultation closes on 25 April 2023.
Permitted development rights
National permitted development rights play an important role in the planning system, providing flexibility and reducing bureaucracy. This consultation asks for views on a new permitted development right for temporary recreational campsites and changes to existing rights to further support film-making and local authority-led electric vehicle charge points.
In addition, and as committed to in the Government’s British Energy Security Strategy, this consultation seeks views on changes to the existing rights for solar equipment. As part of this, we are also proposing a new right to allow for the installation of solar canopies in ground-level off-street car parks in non-domestic settings.
This consultation closes on 25 April 2023.
A copy of both documents will be deposited in the Library of both Houses.
[HCWS587]
Oral Answers to Questions
Michael Gove Excerpts(1 year, 9 months ago)
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Mike Kane (Wythenshawe and Sale East) (Lab)
The Secretary of State for Levelling Up, Housing and Communities (Michael Gove)
It is wonderful to see such a strong contingent from Lancashire in the Gallery. Skelmersdale and Ormskirk will be proud of their new MP, I am sure.
Developers are lining up to sign our contract to remediate approximately 1,500 buildings. Some 95% of those buildings with the most dangerous Grenfell-style cladding have already been remediated or have work under way. The number of buildings that are being fixed by the building safety fund has doubled in the past year. The pilot for our new mid-rise scheme is making good progress ahead of its full opening in the coming months.
Mr Dhesi
Even after the horrors of the Grenfell tragedy in 2017, the Government have failed abysmally to get to grips with the cladding scandal. While the Government dither and developers delay, the leaseholders of potentially dangerously clad apartments are stuck in limbo. Many, including people living in West Central in Slough constituency, and in other blocks, cannot sell or remortgage their apartments, and many face ever-rising service charges and other charges that they cannot now meet. Does the Secretary of State think it is fair for my Slough constituents to have to continue to suffer intolerably under such dire and demoralising conditions?
Michael Gove
I am grateful to the hon. Gentleman for raising the plight of his constituents, but the action we have already taken will ensure not only that the ultimate owners of those buildings—whether that is the developers or the freeholders—are responsible for remediation, but that those leaseholders who are currently trapped and unable to move will be able to do so and to secure a mortgage on their property if required.
Dame Meg Hillier
I declare an interest: I live in a block with cladding. There are many real concerns, and I commend the Secretary of State for some of the progress he has begun to make, but there is still a big issue with insurance premiums that are way too high for the risk involved. Will he update the House on what progress he has made with the insurance industry to get premiums down?
Michael Gove
The hon. Lady is absolutely right. Not only have insurance premiums been too high, but some of the middle people involved have been gouging at the expense of leaseholders. We have made it clear that there are responsibilities on the Association of British Insurers and others to change their ways. The Under-Secretary of State for Levelling Up, Housing and Communities, my hon. Friend the Member for North East Derbyshire (Lee Rowley), is responsible for local government and engaged in work to make progress on that.
Mike Kane
My constituent Joanne Davies faces a nightmare scenario. In a few weeks’ time, she will have to fork out £5,000 because of regulatory change in the light of Grenfell. She gets no support because she lives in a low-rise block. Will the Minister meet me to discuss her case?
Michael Gove
I will absolutely make sure that I or another Minister meets the hon. Gentleman and takes up the case of his constituent, yes.
Sir Julian Lewis (New Forest East) (Con)
Does the Secretary of State recognise that issues like the cladding scandal being foisted on innocent leaseholders will continue until there is fundamental reform of the leasehold system? I know he has plans to do that. When does he think they might be put into effect?
Michael Gove
My right hon. Friend is absolutely right. We hope, in the forthcoming King’s Speech, to introduce legislation to fundamentally reform the system. Leaseholders, not just in this case but in so many other cases, are held to ransom by freeholders. We need to end this feudal form of tenure and ensure individuals have the right to enjoy their own property fully.
Rehman Chishti (Gillingham and Rainham) (Con)
Stephen Morgan (Portsmouth South) (Lab)
The Secretary of State for Levelling Up, Housing and Communities (Michael Gove)
We are advancing on all fronts, rolling out deeper and broader devolution across England, allocating extra resource to the poorest regions and taking steps to enhance productivity everywhere. In Portsmouth, £20 million has already been received through the levelling-up fund to transform the visitor economy, and nearly £7 million has been allocated from the future high streets fund. Portsmouth is also receiving £48 million as part of the national bus strategy.
Stephen Morgan
The Government promised that their levelling up plans would provide much-needed funding to communities such as my own, but last month Portsmouth South was once again deprived of funding that would have revitalised our city centre. Having rejected a bid twice, can the Minister confirm what action the Government are now taking to make Portsmouth city centre a place that local people can be proud of once again?
Michael Gove
I think we can all be proud of Portsmouth city centre, the visitor attractions and the historic communities that the hon. Gentleman is so fortunate to represent. I look forward to working with Gerald Vernon-Jackson and others like him across the party divide in local government in Portsmouth to ensure that the next bid can be successful.
Michael Fabricant (Lichfield) (Con)
On the subject of the next bid, my right hon. Friend will know that we are very disappointed in Lichfield that after two bids we were not awarded any grant to help with the leisure centre, but does he agree that an application for Burntwood, an ex-mining town in the Lichfield constituency, might be more successful?
Michael Gove
My hon. Friend is a brilliant advocate for Lichfield. It may well be that his impassioned advocacy for the community that he has come to call Lich Vegas has meant that bids for the leisure centre might have been seen as de trop, but Burntwood certainly seems to be one of the communities that would be a prime candidate. I took the opportunity when I was in the west midlands recently to visit Willenhall to see how the levelling up fund was helping to transform communities there. My hon. Friend the Member for Walsall North (Eddie Hughes) has done an amazing job in making sure that communities that have been overlooked and undervalued for years are at last getting the investment they need. That is levelling up in action.
Alison Thewliss (Glasgow Central) (SNP)
Kate Kniveton (Burton) (Con)
The Secretary of State for Levelling Up, Housing and Communities (Michael Gove)
Across Government, we are developing an action plan to tackle antisocial behaviour. We are looking at stronger enforcement and swifter justice, as well as supporting young people into sports and other activities. This action builds on our wider investment in tackling crime and antisocial behaviour, including our recruitment of an additional 20,000 police officers.
Ian Levy
Antisocial behaviour and petty crime have long been a problem in Blyth Valley, which is why I have been meeting the police, community groups and local retailers to try to resolve the issues. Will my right hon. Friend please agree to meet me to discuss the matter in greater detail, and hopefully find where the support is?
Michael Gove
I absolutely will. My hon. Friend, who is a spirited champion for the communities in Blyth Valley, recognises how important it is that we work together with other agencies to deal with antisocial behaviour, that we have swift and certain justice, and that we ensure that perpetrators clear up the mess they have created. Above all, we have activities to intervene upstream and ensure that the persistent absentees and truants of today, who could go on to become the antisocial actors of tomorrow, are helped back on to the right path.
Kate Kniveton
My constituents on Ashby Road, the A511 and the former A50 trunk road, are suffering as a result of drivers racing along the road with no consideration for residents who need to pull in and out of their driveways. Excessive speed, aggressive driving habits and numerous traffic collisions are very worrying for those who live there. What support can my right hon. Friend give local authorities to help them tackle such instances of antisocial behaviour?
Michael Gove
My hon. Friend is quite right to raise this issue. Vehicle crime—whether those driving cars or using e-scooters in an antisocial fashion, or otherwise making life difficult for their neighbours—often needs attention. That is why an additional 231 uplift officers have been added to Staffordshire police, but I will be working with Staffordshire’s police and crime commissioner to ensure that this issue is tackled appropriately.
Duncan Baker (North Norfolk) (Con)
Dan Jarvis (Barnsley Central) (Lab)
The Secretary of State for Levelling Up, Housing and Communities (Michael Gove)
I was honoured 10 days ago to have the chance to meet the family of Awaab Ishak, the child who died so tragically in horrendous circumstances in Rochdale. I was able to thank them for their campaigning work and, as a result, with co-operation from bodies across this House, we are taking forward legislation in his name and in his honour to ensure that the scourge of damp and mould is at last effectively dealt with.
Dan Jarvis
In the levelling up White Paper the Government rightly confirmed that they would match European Union structural fund receipts for Cornwall. They could do the same for South Yorkshire, Tees Valley, County Durham and Lincolnshire, but so far have not. Will they?
Michael Gove
I think we may be arguing from slightly different premises, because it depends how one defines the replacement for EU structural funds. I am more than happy to take the hon. Gentleman through the figures and point out the ways in which the funding we have supplied through the funds at our disposal match European commitments.
Jonathan Gullis (Stoke-on-Trent North) (Con)
Michael Gove
Stoke-on-Trent and all the six towns are enjoying a renaissance under this Government in a way that they did not under the last Labour Government. We are ensuring that investment is going into Burslem, Tunstall, Stoke and Hanley in a way that did not occur under that Labour Government. Homes England is at the heart of that investment, providing new homes and cultural investment and ensuring that people who voted Conservative at the last general election recognise that they made the right decision.
Lisa Nandy (Wigan) (Lab)
I wish the Secretary of State good luck with that. Last week, he told ITV News that,
“nobody will get in the way of making sure we get money to those who are vulnerable and who deserve it”.
Was he referring to the Chancellor or the Chief Secretary to the Treasury?
Lisa Nandy
Seriously, the Secretary of State no longer has the power to sign off on a park bench. There are now reports of significant underspends in his Department that are about to be clawed back by the Treasury. Can he guarantee to the towns crying out for investment in town centres, high streets and affordable housing that the full allocation of the towns fund, the future high streets fund and the affordable homes programme will be spent? If he cannot, will he tell us who is to blame—him, or the Chancellor?
Michael Gove
My apologies to you, Mr Speaker, and to the right hon. and learned Member for Holborn and St Pancras (Keir Starmer)—the “human roadblock”, as he was once memorably described by my right hon. Friend the Member for Uxbridge and South Ruislip (Boris Johnson). Returning to the issue, it is absolutely the case that this Department is responsible for the disbursement, successfully, of funds to the frontline, helping to transform communities that were overlooked and undervalued by the last Government. No one is going to get in the way of this Department spending the money we need on the communities that need it. The only thing I would say is that there is not a single spending commitment that the hon. Lady has been able to make because of the shadow Chancellor. Labour—
Mr Speaker
Secretary of State, I do not want to do this every time we have questions. We get to topicals, and because the question is asked you feel it is a free-for-all. It is not your questions; it is Back-Benchers’ questions. Please, let us get everybody in, and let us start with Greg Smith, who wants to ask a good question.
Greg Smith (Buckingham) (Con)
Thank you, Mr Speaker. Whole communities have been up in arms after perverse decisions by the Planning Inspectorate, most recently on a site between Askett and Meadle and another between Twyford and Poundon. What steps is my right hon. Friend taking to reform the Planning Inspectorate to stop it walking all over local wishes?
Michael Gove
The new national planning policy framework ensures that the Planning Inspectorate will work with, not against, local communities. The Planning Inspectorate also has a wonderful new chief executive officer—an official from my Department who helped to deliver the homes for Ukraine programme and understands what communities need and want.
Stephen Farry (North Down) (Alliance)
Michael Gove
We will do everything we can to expedite that funding to Northern Ireland.
Mark Pritchard (The Wrekin) (Con)
Solar is an important part of the UK’s energy mix, and, as the Secretary of State will know, the sun always shines in Shropshire. Does he agree that solar farms, which are often of huge scale, need to be in the right place, not the wrong place? So often, a lot of good agricultural land is lost.
Michael Gove
Shropshire, home to the “blue remembered hills” of A. E. Housman, is one of our most beautiful counties. It is vital, even as we pursue renewable energy across the United Kingdom, that we recognise that our environment is just as much about natural beauty as it is about striving towards net zero.
Judith Cummins (Bradford South) (Lab)
Michael Gove
That money went towards ensuring that service families get the accommodation and support they deserve. If Labour wants to be taken seriously as a patriotic party, it should stop talking down our armed forces and ensure that they receive the money they deserve.
Simon Jupp (East Devon) (Con)
Devon, Cornwall, Dorset and Somerset secured £152 million from the levelling-up fund last month. The four counties make up the region’s new powerhouse, the great south west, of which I chair the all-party parliamentary group. Will my right hon. Friend meet me to discuss the fantastic opportunities that lie ahead for the great south west?
Michael Gove
I absolutely will, and I will make sure that the Under-Secretary of State for Levelling Up, my hon. Friend the Member for Bishop Auckland (Dehenna Davison), is with me as well. There is nothing that the two of us enjoy more than hearing good news from fantastic constituency MPs such as my hon. Friend the Member for East Devon (Simon Jupp).
Mrs Emma Lewell-Buck (South Shields) (Lab)
Michael Gove
Actually, the way that this Government have handled Ofwat has ensured that we have done more to improve water quality—[Interruption.] If the hon. Lady were to ask the chief executive of any water company about the toughest Environment Secretary that they have had to deal with, they would know. But anyway, on the key question of South Shields, I agree that it is beautiful, and I will have the chance to visit soon. The additional money that we are making available for the devolution deal for the north-east should help, but I would be delighted to visit and find out more.
Mr Gagan Mohindra (South West Hertfordshire) (Con)
There have been multiple frivolous applications in my beautiful South West Hertfordshire constituency, including in my hometown of Tring, where such applications would increase the population by 30%. What advice can the Secretary of State give me on how best to engage with his Department on these issues so that my constituents’ voices are heard clearly?
Michael Gove
I am grateful to my hon. Friend. I know that the new Minister of State for housing and planning, my hon. Friend the Member for Redditch (Rachel Maclean), will be meeting him shortly. It is absolutely vital that communities in the suburban green belt such as his have the opportunity to ensure that people have the new homes that they need and that we preserve the communities that make his constituency so attractive to so many.
Margaret Ferrier (Rutherglen and Hamilton West) (Ind)
Caroline Ansell (Eastbourne) (Con)
Fisherman’s Green has been identified by the local council as a potential housing development site in Eastbourne. Local people do not support that, and I support them. Can my right hon. Friend confirm that the council, which owns the land and has put the site into the strategy, can take Fisherman’s Green out of the strategy without sanction?
Michael Gove
My hon. Friend is absolutely spot on. I have been taking a close interest in the activities of Eastbourne Borough Council. The decision to develop Fisherman’s Green is the council’s alone, so the council could easily take it out—the changes that we have made in the Levelling-up and Regeneration Bill would allow it to do that. I am afraid that there has been a campaign of dissimulation on the part of her local council; it is a case of Lib Dems spinning here.
Mary Glindon (North Tyneside) (Lab)
Michael Gove
I could not agree more that the north-east is on the up. Newcastle and Sunderland are doing well in footballing terms, but even better in political terms, thanks to the leadership of local figures, who are uniting with central Government to deliver devolution.
Aaron Bell (Newcastle-under-Lyme) (Con)
Antisocial behaviour is causing misery for my constituents, as I can tell from responses to my survey. Does the Secretary of State therefore welcome the stronger action that we have seen from Staffordshire police since its new local policing model was introduced last June? In the last month, that action has included a closure notice in Knutton, working with Asda to stop boy racers in the Wolstanton car park, and a section 34 order in Chesterton. It is a big issue, but we are moving in the right direction.
Michael Gove
Staffordshire’s police and crime commissioner is certainly moving in the right direction, as is Staffordshire police, supported ably by my hon. Friend and others such as my hon. Friend the Member for Burton (Kate Kniveton). Boy racers and others who cause misery for their neighbours need to be dealt with effectively. That is happening in Staffordshire and should be happening more broadly as well.
Florence Eshalomi (Vauxhall) (Lab/Co-op)
Many constituents are contacting me about the rental market; I am sure it is the same across the country. The shortage of available properties is making it hard for private renters who are seeking accommodation. One constituent emailed to say that she had been told to keep requests to a minimum if she wanted to have a chance of getting a property. What will the Secretary of State do about the frankly disgraceful emails that tenants are receiving from letting agents?
Michael Gove
There are challenges in the private rented sector and with housing supply everywhere. I would say two things: first, we need to work together to unlock additional supply, which is why it is important for the Mayor of London—I am not criticising him—to play his part; secondly, we need to ensure that renters have the protections that they deserve. That is why we are bringing forward legislation, which I know the hon. Lady supports.
Mark Fletcher (Bolsover) (Con)
The Help to Buy scheme has helped hundreds of my young constituents to get on to the housing ladder, yet it is due to end shortly. Can the Secretary of State assure me that he is badgering the Chancellor to ensure that that vital scheme continues?
Michael Gove
I do not need to badger the Chancellor; we are not just constituency neighbours, but brothers from different mothers. More than that, the newly appointed Minister of State, Department for Levelling Up, Housing and Communities, my hon. Friend the Member for Redditch (Rachel Maclean), was immediately on the case. We will secure an extension to make sure that my hon. Friend’s constituents get the benefits from the scheme that they deserve, and I look forward to meeting him next month.
Hilary Benn (Leeds Central) (Lab)
Does the Government’s commitment to look at helping blocks below 11 metres with cladding apply not only where that cladding is found to be dangerous and needs to be removed, but where lenders are still demanding EWS1 certificates, which cannot currently be provided?
Michael Gove
Let me look into the specifics of any individual case. It should be the case, however—as the conversations that the Under-Secretary of State for Levelling Up, Housing and Communities, my hon. Friend the Member for North East Derbyshire (Lee Rowley), has had with lenders show—that there has been a significant diminution in the demand for EWS1 forms. Where they are still being demanded, however, I would like to know more, so I look forward to working with the right hon. Gentleman to find out more about any kinks in the system.
Mark Pawsey (Rugby) (Con)
On-street parking is a policy of Warwickshire County Council. Does the Secretary of State agree that the council has got it wrong in allowing people who drive internal combustion engines to park all day directly in front of the electric vehicle chargers that it has provided?
Michael Gove
I will have to look closely at that. It is rare that Warwickshire gets things wrong, in my experience, but my hon. Friend seems to have identified an anomaly that stands in the way of the effective transition to electric vehicles, so I look forward to considering more closely the issue that he raises.
Mike Amesbury (Weaver Vale) (Lab)
How can taking away £25 million from Halton Borough Council over the next three years be classed as levelling up? For Cheshire West and Chester Council, it is nearly half a billion pounds since 2010. That is not levelling up. When can we expect a genuine, fair funding review?
Michael Gove
It is the case that at the last spending review, we secured a significant increase in local government spending, and as my hon. Friend the Member for North East Derbyshire pointed out when we had the debate on the local government finance settlement, authorities such as that of the hon. Member for Weaver Vale (Mike Amesbury) have received the funding they need in order to deliver the services on which constituents rely.
Andrew Selous (South West Bedfordshire) (Con)
Does the Secretary of State agree that when we build thousands of new homes, we need to do as well at providing extra general practice capacity as we do at providing extra primary school places? If he does, what will he do about it?
Michael Gove
I do, and our new infrastructure levy in the Levelling-up and Regeneration Bill is designed to do just that. I look forward to working with my hon. Friend and with the new Minister of State for Housing and Planning, my hon. Friend the Member for Redditch, in order to make sure that the infrastructure levy delivers as we both would want.
Peter Grant (Glenrothes) (SNP)
While people in Levenmouth certainly welcome the fact that the levelling-up process gave us some of our own money back again, can the Secretary of State identify a single measure of need or deprivation by which the Prime Minister’s constituency is as needy and as deprived as the Levenmouth area in my constituency, and more deprived than the entire city of Glasgow?
Michael Gove
First, as I mentioned earlier, the reason that money has gone to the Prime Minister’s constituency is that it is going to help service families who do so much in order to make sure that we are all kept safe and protected. Secondly, I am grateful that the hon. Gentleman acknowledges that it is a good thing that the UK Government are distributing this money in this way. It is the case that his party used to oppose that, but we are now delivering that money; for two successive years, cash has been delivered to Glenrothes, to Glasgow, and to other communities.
The third thing I would say is that I hope the hon. Gentleman is not the SNP MP quoted in The Times at the weekend as saying that the thing about the Scottish Government is that they cannot even—
Richard Foord (Tiverton and Honiton) (LD)
The latest round of levelling-up funding has once again failed to provide much-needed investment in my part of Devon. The proposals put forward by East Devon District Council would have funded vital investment in Seaton and Axminster. What does the Secretary of State say to people in towns that are attractive to tourists, who feel taken for granted and feel that this Government are not serious about levelling up for them?
Michael Gove
I say, “Vote Conservative,” because with a Conservative MP such as my hon. Friend the Member for East Devon (Simon Jupp), you have an effective advocate who can work with central Government in order to deliver.
Dame Meg Hillier (Hackney South and Shoreditch) (Lab/Co-op)
More people rent privately in my constituency than own their own homes, and more people rent socially than both of those groups combined. When I visit those people, week in and week out, they are massively overcrowded with no prospect of renting in the private sector or buying. What is the Secretary of State doing to deliver properly affordable social rented housing?
Michael Gove
The hon. Lady’s point is very similar to that made earlier by the hon. Member for Vauxhall (Florence Eshalomi), and my answer is also very similar: we need to work with the Mayor of London, who has clear responsibilities in this area. Once again, I am not criticising him, but I am stressing that the delivery of so much of the funding required to improve housing in the capital depends on effective action by the Mayor.
Daisy Cooper (St Albans) (LD)
Some of the Homes for Ukraine six-month placements are now starting to come to an end, and some Ukrainian nationals in my constituency cannot get into private rented accommodation because they have no credit history. The local council is ready to look at rematching families, but if that does not work out, some of those Ukrainian refugees will have no choice but to present as homeless. Will the Secretary of State look at this issue, and look at the suggestion of a guarantor system backed by the Government?
Michael Gove
That is actually a very fair and constructive point. Making sure that there are not just banking facilities, but the kinds of guarantees that the hon. Lady asks for, is something we have been looking at in the past. I will ask the Under-Secretary of State for Levelling Up, Housing and Communities, my hon. Friend the Member for Kensington (Felicity Buchan), to talk to the hon. Lady and to St Albans council in order to make sure that the generosity of her constituents is not undermined by the activity of the financial sector.
Mr Speaker
That completes questions. Will those who wish to leave before we start the urgent question please do so?
Levelling Up, Housing and Communities
Michael Gove Excerpts(1 year, 9 months ago)
Ministerial CorrectionsRead Full debate Read Hansard Text Read Debate Ministerial Extracts
The Secretary of State for Levelling Up, Housing and Communities (Michael Gove)
Within that context, in this year’s local government report we have been able to increase core spending power overall by £5.1 billion, secure an additional £1.7 billion of additional grant funding, ensure additional support for adult and children’s social care, ensure a minimum 3% increase in core spending power for every local authority without the need for council tax increases, and ensure that the most deprived local authorities receive a 17% increase.
[Official Report, 8 February 2023, Vol. 727, c. 986.]
Letter of correction from the Secretary of State for Levelling Up, Housing and Communities, the right hon. Member for Surrey Heath (Michael Gove).
An error has been identified in my response to the debate on local government finance.
The correct response should have been:
The Secretary of State for Levelling Up, Housing and Communities (Michael Gove)
Within that context, in this year’s local government report we have been able to increase core spending power overall by £5.1 billion, secure an additional £1.7 billion of additional grant funding, ensure additional support for adult and children’s social care, ensure a minimum 3% increase in core spending power for every local authority without the need for council tax increases, and ensure that the most deprived areas of England will receive 17% more per dwelling in available resource than the least deprived areas.
Local Government Finance Settlement 2023-24
Michael Gove Excerpts(1 year, 9 months ago)
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The Secretary of State for Levelling Up, Housing and Communities (Michael Gove)
Introduction
Local government plays a vital role in supporting, improving and helping communities up and down the land. Councils do amazing work, every day and often away from the headlines, on a huge range of many different subjects and important issues.
This settlement will ensure that councils across the country have further resources available to deliver services to their communities.
Today I am laying before the House the Local Government Finance Report (England) 2023 to 2024, the Referendums relating to Council Tax Increases (Principles) (England) Report 2023 to 2024, and the Referendums relating to Council Tax Increases (Alternative Notional Amounts) (England) Report 2023 to 2024. Together, these form the final local Government finance settlement for 2023-24.
Total funding—core spending power
In recognition of the work undertaken by councils, this settlement makes available an increase of 9.4% in cash terms of national level core spending power. This makes available £5.1 billion in additional resources, to help local authorities to support their communities through challenging times.
Funding guarantee
Local government delivers a broad range of services for all our communities. That is why we are supporting all tiers of local government through this settlement with a new, one-off funding guarantee that ensures all local authorities will see a minimum 3% increase in their core spending power before taking any local decisions on raising council tax.
Council tax
The Government manifesto commits to continuing to protect local taxpayers, in normal circumstances, from excessive council tax increases. The package of referendum principles we are proposing strikes a fair balance. This settlement confirms our intention for referendum principles of up to 3% for core council tax and up to 2% for the adult social care precept in 2023-24, significantly below headline rates of inflation. These provisions are not a cap, nor do they force councils to set taxes at the threshold level. When taking decisions on council tax levels, I expect councillors, mayors, police and crime commissioners and local councils to take into consideration the pressures many households are facing.
The Mayor of London has requested flexibility to levy an additional £20 on band D bills to the Greater London Authority (GLA) precept to provide extra funding for Transport for London (TfL). The Government have expressed ongoing concern about the management of TfL by this Mayor, and it is disappointing that London taxpayers are having to foot the bill for the GLA’s poor governance and decision making. While the Government will not oppose this request, any decision to increase the precept is solely one for the Mayor, who should take into account the pressures that Londoners are currently facing on living costs and his decision to raise his share of council tax by 8.8% last year.
Social care
This settlement ensures a significant additional taxpayer subsidy for social care services. Ahead of any consideration of council tax, it provides around £2 billion in additional grant for social care in 2023-24. This includes:
£300 million discharge funding to be pooled as part of the better care fund to get people out of hospital on time into a care setting.
£1.3 billion to be distributed to councils through the social care grant for adults’ and children’s social care, on top of the rollover in funding from 2022-23.
Adult social care market sustainability and improvement funding of £400 million, which will be combined with the existing £162 million in fair cost of care funding.
I am also pleased to announce that we have published an explanatory note on social care funding today, setting out more detail on the different social care grants provided for through this settlement.
Changes following consultation and engagement
We received 157 responses to the provisional local government finance settlement consultation, and I am grateful to everyone who took the time to respond. Following the consultation and engagement process on the provisional settlement, we have made the following changes:
New homes bonus allocations
Alongside the provisional settlement, we asked local authorities to check the accuracy of homebuilding data they have returned to us and tell us if it is inaccurate. Following these representations, we have increased new homes bonus allocations by £0.63 million and funded this through contingency set aside at the provisional Settlement.
Rural services delivery grant
In recognition of specific cost pressures in rural areas the Government are increasing the rural services delivery grant by £10 million, bringing the total value to £95 million. This is funded through contingency set aside at the provisional settlement.
Contingency funding
Increasing services grant by £19.1 million above the provisional settlement proposals, by distributing unused contingency back into local government as proposed at the provisional settlement, through the services grant. To account for changes between the provisional and final settlement, the funding guarantee has been recalculated to ensure that all authorities will see at least a 3% increase in their core spending power before any decision they make about organisational efficiencies, use of reserves, and council tax levels. Any funding no longer going to the funding guarantee has been allocated back through the services grant.
Thurrock, Croydon and Slough Councils
Following significant failures in their local leadership, governance and financial management, the Government received requests from Thurrock, Croydon and Slough for the flexibility to increase their council tax by an additional amount, to provide extra funding to support their financial recovery. This is on top of the significant additional support Government have already granted through the exceptional financial support process. Given the exceptional circumstances of these councils, including unprecedented financial deficits driven by poor decision making in the past and the need for ongoing Government intervention to drive their improvement and recovery, the Government have decided not to oppose the requests.
In line with their requests, Thurrock and Slough will be able to raise council tax by an additional 5% above referendum principles applied to other councils, and Croydon will be able to raise an additional 10%. The Government are of course conscious of the impact on local taxpayers, particularly those on low incomes, of having to foot part of the bill for their councils’ very significant failings. We have been clear to each of the councils that in implementing any additional increases, they should take steps to mitigate the impact on those least able to pay.
Other
Every authority in England will receive a share of the accumulated surplus currently held in the business rates levy account. I can confirm that £100 million will be returned to the sector on a one-off basis to be distributed based on each local authority's 2013-14 settlement funding assessment.
The services grant allocation for the Isle of Wight council includes an additional £1 million that was allocated to the council for 2022-23 and 2023-24 in recognition of the unique circumstances facing the Isle of Wight and its physical separation from the mainland. This funding is reviewed each year as part of the local government finance settlement.
We have also seen the representations from local authorities facing significant increases in internal drainage board levies and will commit to working with the most affected local authorities ahead of the new financial year.
These changes seek to address some of the concerns raised during the consultation period on our proposals, and to even better provide local authorities with the tools to support their local communities, continue to reform their services for the long term, and to help communities prepare for the future.
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Building Safety
Michael Gove Excerpts(1 year, 10 months ago)
Commons ChamberRead Full debate Read Hansard Text Watch Debate Read Debate Ministerial Extracts
The Secretary of State for Levelling Up, Housing and Communities (Michael Gove)
With your permission, Mr Deputy Speaker, I should like to make a statement that allows me to update the House on the Government’s progress in making buildings safe. It is a basic requirement of any civilised society that people should feel safe in their own homes, but for too many people for far too long, that has not been the case. As I have said before, so I say again: this has been a collective failure. Those in government who made the rules did not make them clear enough. Those who built our homes did not build them well enough. Those who made the materials that contributed to the construction of those homes often made them unsafe; at times, knowingly so. Those who were to check the work undertaken did not always check thoroughly enough. Of course, those who own the buildings have sometimes managed them so poorly that people have been left unsafe, and too many of those owners have still shirked their obligations to make people safe.
The only party to the crisis who do not share in the responsibility are the blameless leaseholders and the tenants who live in those buildings. That is why it is right that this Parliament protected those leaseholders through the Building Safety Act 2022 and apportioned financial responsibility more fairly. We continue to work to ensure that those who bear the blame for the crisis also shoulder the burden of putting the situation right.
We have made significant progress. Those who put unsafe material on people’s homes must now pay, instead of the innocent residents living in them. Leaseholders need no longer fear financial ruin simply to make their homes safe, and the major mortgage lenders, thanks to their confidence in our new approach, will now lend on properties that are covered by the leaseholder protections in the Building Safety Act. Of course, they will also lend where the building is eligible for a Government or developer remediation scheme. Leaseholders are no longer hostages to their mortgage arrangements.
We have also reopened and turbocharged the building safety fund for new applications and are piloting our medium-rise fund, paid for from a levy on developers, to ensure that dangerous cladding will be removed. Leaseholders can rest assured that their buildings will be made safe. Where remediation is required and building owners are sitting on their hands—even when money is being provided by the Government—we will use powers under the Act to force the owners to fix their unsafe buildings. Members should be in no doubt that there will be significant consequences for those who fail to comply with their legal obligations.
Leaseholders should know that the law is on their side. Today, we make further progress on delivery. In April last year, I announced that the largest house builders had signed a pledge committing to fix all life-critical fire safety issues, internal and external, in buildings over 11 metres that they had a role in developing or refurbishing in England. Developers also committed to reimbursing the taxpayer where that work has already been done and subsidised by the taxpayer. In the summer, my Department published the draft contract that will bind developers to honour that pledge. Since then, my officials have been working through that contract line by line to ensure that it codifies the pledge in a way that is fair and transparent, committing developers to fixing buildings for which they are responsible as swiftly as possible and therefore keeping residents and leaseholders informed about that work. I am grateful to all the developers who work with us and to the Home Builders Federation and its chairman, Stewart Baseley, who have worked so hard in order to ensure that this contract can deliver. Today, we are publishing the final contract that I expect housing developers to sign. A copy of the contract has been deposited in the Library of each House and it is available on gov.uk.
Let me be clear: if you are one of the developers we invited to submit comments on the contract, I now expect you to sign it within the next six weeks—by 13 March. That includes every company who signed the original pledge as well as several companies who have regrettably not done so. Now is the time for all of them to make a binding commitment that will not only see them doing right by those whose homes they have blighted, but help them to maintain their credibility with those who may seek to contract with them or who may consider buying their homes in future. Those who fail to step up and make this commitment will suffer the consequences that this Parliament has so clearly spelled out.
Using powers provided by the Building Safety Act, I will lay regulations this spring to create a new responsible actors scheme. Those regulations will set out which developers, by signing the contract, will be eligible to be members. We expect those who built unsafe buildings to sign the contract. To join the scheme, they will have to sign and comply with the terms of the contract published today. Of course, we will invite developers to join the scheme in order to ensure that we do right by leaseholders.
Anyone who fails to sign the contract will be prohibited from carrying out future development and from receiving building control sign-offs for buildings under construction. A developer who fails to sign this contract will have to find another line of work. I say to all developers who have built unsafe buildings over 11 metres, “I am putting you on notice. You will be asked to step up.”
I will consult in due course on how we expand the responsible actors scheme to make sure that we capture all those who built unsafe buildings and should now fix them. Altogether, I expect developer remediation to be worth more than £2 billion of investment in safety and to protect people in hundreds of buildings. I am grateful to those in the development community who have got on with assessing and remediating their buildings without waiting for the final form of contract; I welcome their constructive engagement.
All developers should recognise that in signing the contract, they are taking a big step towards restoring confidence in the construction sector and providing much-needed certainty to all concerned. Those who sign will confirm that they are responsible companies. I know from the positive discussions that I have had that many are now keen to sign; I particularly thank all those developers who have today confirmed that they will sign. Accepting their new responsibilities will allow developers to plan ahead in the knowledge that they now understand the full extent of their legal obligations.
When these buildings are safe and a full reckoning has been made, we can then look to the future with a new clarity and confidence in our construction sector, but until that point, my determination will be to ensure that buildings are fixed, to do what we must all do to achieve that, and not to waver. My Department has a recovery strategy unit, which is relentlessly targeting those who have consistently failed to do the right thing. As well as targeting developers, it has also begun legal action against recalcitrant freeholders. It has active investigations under way into the conduct of various companies, including contractors and construction product manufacturers that bear responsibility for this crisis.
Let me again be clear to freeholders, from this Dispatch Box: if you are holding back work to make buildings safe, even where the Government have made sufficient money directly available to you through the building safety fund, you must fix your buildings or we will take action, including through the courts. To those freeholders who are trying to bully leaseholders into paying service charges that the Building Safety Act has already proscribed, let me spell out the law. Invoices issued before the Act came into force must be scrapped. New bills must comply with the law, including our new leaseholder protections.
While buildings await remediation, I know that many leaseholders continue to suffer spiralling insurance bills. Last year, I asked the Financial Conduct Authority to investigate the market. The serious issues that it uncovered concerned me greatly. It is simply unacceptable for managing agents, landlords and freeholders to profit from commissions secured out of the pockets of innocent leaseholders as bills spiral, so I can confirm today that I will take action to ban property managing agents, landlords and freeholders from receiving commissions and other such payments from insurers and brokers, replacing them with more transparent fees.
I will not permit people to hide charges in obscure invoices; I will require service charges to be issued to leaseholders transparently with clearly labelled statements. I will not allow building owners and landlords to charge their leaseholders to pay for their own legal bills, even to pay for settlements when leaseholders win their cases. Together, these steps will ensure that leaseholder insurance costs are fairer and more transparent, and they will empower leaseholders to challenge dodgy bills. I am also pleased to see that the FCA has committed to investigate broker practices and to consult on further regulatory changes to protect and empower leaseholders.
Leaseholders also now need insurance premiums to be reduced significantly—and urgently—so I expect the FCA to report on what further actions it will take to ensure that there is a fairer and more competitive market by the summer, and to continue its monitoring of this sector. I welcome work from within the insurance industry on launching a UK-wide scheme to reduce the most severe premiums for leaseholders and buildings with fire safety issues, but I must stress the urgency of this work: leaseholders need support now.
As we right the wrongs of the past, we must ensure that we can say with confidence that the future will be better. We want a culture of high standards that will transform not only the attitudes of people working in the construction sector but, ultimately, our whole built environment. Working together, we can put standards and safety first, and that means listening to the tenants and leaseholders who have suffered so much. Their experience is what matters, and their views must be at the heart of our approach. When everyone’s interest is aligned with the interests of tenants and leaseholders, everyone will benefit in the long run.
Government must play their part through clear regulation, but also through leadership that holds current wrongdoers to account. The new building safety regulator that we have established will oversee a culture of higher standards, and over the coming year my ministerial team and I will present an ambitious programme of secondary legislation to set the regulator on firmer foundations. Building owners and managers should already be preparing for the first requirement, due to come into force soon—the requirement to register higher-risk buildings with the regulator.
In the last year, we have made significant progress. When we were told that there was an impasse, we managed collectively in the House to break through. When we were told that leaseholders must pay, we ensured that they were protected; we were told that developers would never pay, but billions of pounds are now being pledged by developers to help those in their buildings. That demonstrates what can be achieved when people accept responsibility in a spirit of good will and collective endeavour. While there is much more to do, today is a major step forward, and I commend this statement to the House.
Lisa Nandy (Wigan) (Lab)
I welcome the statement and some of the measures announced in it, but the fact is that, five and a half years after the appalling Grenfell fire, millions of people are still trapped in buildings with dangerous cladding, in flats that are unsellable, and facing eye-watering bills. I believe that the Secretary of State is absolutely sincere in his desire to solve this problem, but he announced a year ago that he was putting developers on notice, saying that
“we are coming for you.”—[Official Report, 10 January 2022; Vol. 706, c. 284.]
Well, that is a long notice period, and for all the zeal, the reality is that the developers did not stump up the cash that he demanded, and only 7% of flats at risk of fire have been fixed. He says that leaseholders are no longer hostages of their mortgages, but if he spent five minutes reading the contents of my inbox, he would gain a very different perspective on what is the reality on the ground.
This has been another year of lives on hold, huge anxiety and countless amounts of human misery, and people are losing hope. The Secretary of State is now giving those same developers another six-week deadline to sign a contract or face penalties, but the date that matters to leaseholders is not the date by which a new contract is signed; it is the date by which the cladding will be removed or replaced. Am I right in understanding that there is no deadline for that? Am I also right to understand that the Secretary of State is not today announcing any new action against product manufacturers and building owners? If we all acknowledge their role in this, and the fact that in many instances they continue to profit from homes that are unsafe, this is not just an unhelpful omission but an immoral one. The Secretary of State said today that his Department was pursuing them through the courts, and I welcome that, but can he tell us how many of those cases have been successful? Can he also tell us—given that other Members will have inboxes like mine, full of stories of people who are still struggling and still suffering—how we can refer cases to this unit within his Department, so that the onus of taking action does not rest on the victims of this appalling scandal, but we and the Government use our collective might to do the same?
While I am asking the Secretary of State about omissions from the scheme, can he tell us why foreign developers are off the hook? Within the last few hours it has been reported that two major house builders have indicated that they will sign the contract, but it is also reported that they are only doing so after he watered it down to limit their liability, restrict the work that is covered, and prevent the Government from revisiting the contract at a later date. A quick read of the contract on gov.uk appears to confirm that he has retreated from his previous position and returned to the provisions agreed with his predecessors last summer, which, he said on retaking office, simply were not good enough.
Inside Housing quotes a senior house building industry source as saying:
“Our view is the contract is now just committing us to things we’re already doing.”
Persimmon has since confirmed that it believes that the contract simply reflects its existing commitments. Did the Secretary of State receive legal advice on the implications of the changes? In the spirit of greater transparency, will he commit to publish that today? We welcome action to help leaseholders challenge dodgy bills, but has he stopped to consider for a moment why on earth they should have to do so? Why on earth do we continue to tolerate those sorts of industry practices? Most of all, why on earth do we continue to tolerate leasehold—an arcane, feudal form of tenure that has no place in a modern country? If the sorry saga that millions of people have been forced to live with over the last five and a half years has done anything, it has lifted the lid on the reality facing millions of leaseholders in this country. No ifs or buts—leasehold ought to be abolished.
I was encouraged to hear the Secretary of State agree with that sentiment yesterday, just as I was when the Government first committed to it in 2017. If he legislates to ban leaseholds on new builds and to phase out existing leasehold in favour of commonhold tenure, he will have the Opposition’s full support. Will he commit to not just introducing that legislation in the final Session of this Parliament, but to passing it? The right to a decent, safe and secure home is non-negotiable. Too many people have been denied that for too long. No more excuses: it is time to get on with the job.
Michael Gove
I am grateful to the hon. Lady for her constructive approach today. She has consistently taken such an approach to resolving the building safety crisis. She recognises that responsibility for the crisis must, as I have mentioned, be shouldered collectively by Government and actors—from developers through to freeholders, insurance companies and construction product manufacturers.
The contract that we are publishing is the result of detailed negotiations with developers. Developers made a number of points that seemed fair and to reflect their responsibilities. We also robustly rejected a number of points that they made during the contract negotiation, so as to ensure that we receive payment from them as quickly as possibly for the work required. There is now a clear six-week deadline to sign the contract. The fact that two major developers have already agreed to sign is welcome, as is the fact that some have already undertaken this work, as I mentioned in my statement. It was not necessary for every developer to sign the contract for that work to begin. I welcome that it has begun and that work has been completed or is being undertaken on the overwhelming majority of buildings over the height of 18 metres with aluminium composite material cladding.
The hon. Lady asked about the work to deal with freeholders and, in particular, construction product manufacturers. Again, work will be undertaken by the recovery strategy unit, which has already secured change from freeholders and is pursing construction product manufacturers. Brigadier Graham Cundy is the leader of the RSU. He has a distinguished service career and a commitment to ensuring that there is no hiding place for those responsible for the building crisis. He and his team are united in how they operate. If any Member of this House would like Brigadier Cundy and the recovery strategy unit to work with them and their constituents, they need only contact me and I will ensure that we have action this day.
Foreign developers and those who operate opaque structures that enable individuals to profit and to evade their responsibility, which the hon. Lady referred to, are precisely and squarely within the remit of the RSU. I would be delighted for Graham and his team to brief Opposition Front Benchers and others on our approach. Some of the work undertaken requires a degree of commercial confidentiality, but I would be delighted to share that work.
Finally, the hon. Lady asked if we will maintain our commitment to abolish the feudal system of leasehold. We absolutely will. We will bring forward legislation shortly. But I gently say that the urgency with which she makes the case for change was not an urgency exhibited by the last Labour Government. In 1995—[Hon. Members: “You can’t blame us for this!”] I think we can, actually. In 1995, this brilliant document entitled “An end to feudalism” was published by the Labour party, then during all their years in power, the Labour Government did nothing to end feudalism. We need a Conservative Government to do that, and that is what we will do.
Sir Peter Bottomley (Worthing West) (Con)
I am a leaseholder without any problems. In 2002, 20 years ago, Parliament and the Labour Government passed leasehold and commonhold reform, but the commonhold bit did not work.
I welcome what my right hon. Friend has said and I hope that the House will manage to pass the Law Commission’s proposals on the reform of leasehold and commonhold and that we will be able to make progress. Incidentally, that would make the value of leasehold properties higher and the revenue would in part go to the Treasury, so his colleagues in government should be helping him to get this legislation brought to Parliament, not hindering it.
I also welcome what my right hon. Friend has announced on commissions. Can he find a way of ensuring that leaseholders who pay for buildings insurance become a party to the insurance policy, so that when things go wrong they can appeal to the insurance ombudsman and not be cut out because they are only paying and do not own the bricks?
Those responsible for the defects all had insurers, including the developers, architects, surveyors, component manufacturers, building control and, as my right hon. Friend has said, the Government in setting standards. I suggest that he re-engage with the insurance industry, because if people can take over the claims from those who have had losses—including the leaseholders and, for that matter, some of the landlords—and have a class action, the insurers will have to contribute significantly more than they are at the moment. There is much more progress to be made, so will he and his colleagues ensure that they carry on listening to the leaseholders and their representatives, and hopefully, in time, to the representatives of commonholders too?
Mr Deputy Speaker (Mr Nigel Evans)
Order. Please can I ask everyone to focus on asking single questions? Otherwise, it will be well after 1 o’clock before we get on to the Adjournment debate tonight.
Michael Gove
Leaseholders have no better champion in this House than the Father of the House, and we absolutely will proceed along the lines that the Law Commission has outlined. I know that colleagues in His Majesty’s Treasury will appreciate the benefits that will accrue to the whole national economy through reform. The points that my hon. Friend makes about the insurance sector are well made, totally understood and will be acted on.
Chris Stephens (Glasgow South West) (SNP)
I thank the Secretary of State for giving me advance sight of his statement. He has rightly said the quiet part out loud—namely, that faulty and ambiguous Government guidance is to blame, alongside those who exploited a broken system. But his statement was light on the support that will be given to those who are carrying out remediation works. He knows that I have a constituency interest in this regard, with Bell Building Projects carrying out work. What help will be given to companies carrying out remediation works in relation to insurance? He rightly says that insurance companies are throttling the market, so can he say a bit more about what he is doing to assist those who are carrying out the remediation work? Will he give us an assurance that they will be paid on time by Homes England, for example, and that their issues will be timeously dealt with? Will he meet me to discuss some of the issues that this company has been faced in the recent past?
Michael Gove
I am grateful to the hon. Member. The statement refers specifically to action in England, but we have been working with the Scottish Government, the Welsh Government and the Northern Ireland Executive to see what can be done to make buildings safe in those jurisdictions. On his point about remediation work, a number of companies in the private sector across the United Kingdom are contributing to this work and I have already raised with the chairman and chief executive of Homes England the importance of ensuring that they are paid for their work in a timely fashion. I will investigate further to make sure that progress is being made, particularly in the areas of insurance that the hon. Member mentions.
John Redwood (Wokingham) (Con)
What actions will the Government take to make it more likely that people will set up new construction companies and grow smaller companies, since we clearly need more capacity and more competition to get high-quality work done?
Michael Gove
My right hon. Friend is absolutely right, and many of the provisions in the Levelling-up and Regeneration Bill are designed explicitly to aid the entry of new small and medium-sized enterprises into the construction sector. Many of those provisions follow on from the excellent work of my hon. Friend the Member for South Norfolk (Mr Bacon), who as a champion of self and custom builders has done more than anyone else in this House to help to ensure diversification in housing supply.
Mr Clive Betts (Sheffield South East) (Lab)
I welcome the progress made so far. In a couple of weeks’ time, the Levelling Up, Housing and Communities Committee will be looking further at the omissions that probably still exist in the system, including how the Secretary of State will actually get the money out of the product providers, on which he has not given details.
Today’s big omission is social housing. Help for leaseholders is very welcome, but social housing providers, housing associations and councils are challenged with disrepair problems and the need to make their homes more energy-efficient, on top of which they now have the building safety work. Apart from on ACM cladding, there is no help at all for social housing providers. Why can the Secretary of State not remedy this unfairness?
Michael Gove
The Chairman of the Select Committee makes an important point. I am grateful for his support for the progress we have made. I am well aware of the pressures on the social housing sector and of the need to work collectively to ensure it can discharge its obligations. I hope to say more about how we can do so in the weeks ahead.
Sir Julian Lewis (New Forest East) (Con)
I declare an interest as a leaseholder.
I congratulate my right hon. Friend on the progress he has made. If he does reform the freehold and leasehold systems, what provision will he make so that people with short leases are able to take over their freehold without having to pay huge charges for extending their lease, which is the current situation?
Michael Gove
My right hon. Friend makes an important point, and we need to make sure there is a fair valuation so that, as the Father of the House rightly said, those on short-term leases do not have to pay over the odds to acquire freehold or commonhold status if the value of the property increases.
Ruth Cadbury (Brentford and Isleworth) (Lab)
Flammable cladding and fire safety issues are not the only building safety concerns that affect the residents of blocks, particularly those built since the post-2010 bonfire of red tape. What is the Secretary of State doing to protect leaseholders and residents in blocks that have non-fire-related safety issues?
Michael Gove
The hon. Lady makes an important point. One of the things I announced last week was new support, initially for Greater Manchester and the west midlands, to make safe a variety of safety issues in social housing in particular. We all have the horrific death of Awaab Ishak in our mind and on our conscience. More work is required on building safety, and I gently say that I do not believe there is a material difference in our post-2010 approach to this important issue, but I do believe this Government should have acted earlier to learn the lessons of the past.
Dr Matthew Offord (Hendon) (Con)
This issue has been a Kafkaesque nightmare for so many of our constituents. It has exposed the sharp practices of freeholders and management companies. Will the Secretary of State acknowledge the work done by many of us Conservative Back Benchers in voting against the Government on many occasions and, particularly, the work of my right hon. Friend the Member for Stevenage (Stephen McPartland), who unfortunately is not here today, and my hon. Friend the Member for Southampton, Itchen (Royston Smith), who has just walked into the Chamber?
Michael Gove
Although I never endorse voting against this Government under any circumstances, I nevertheless reflect on the heroism and principle of my right hon. Friend the Member for Stevenage (Stephen McPartland) and my hon. Friend the Member for Southampton, Itchen (Royston Smith), who have been genuine friends of those in need.
Stella Creasy (Walthamstow) (Lab/Co-op)
Everybody agrees that leaseholders should not carry the can for these dangerous buildings, but the problem is in the delivery. I have been contacted by many constituents, including those on Planetree Path in Walthamstow, who cannot turn to their developer because it has gone bust, and whose freeholders claim to be too small to be liable. In the absence of anybody to hold to account, these residents have already had to scrape together £10,000 to pay for the surveys and reviews required before a single change can be contemplated to make safe the buildings in which they live. Can the Secretary of State confirm that those residents will be able to reclaim those costs from the building safety fund? How will that happen so the Government can make good on their pledge that leaseholders will not pay the costs?
Michael Gove
I very much doubt the freeholders’ appeals to poverty in this case. If the hon. Lady lets me know precisely who the freeholders are, the RSU can make sure we find the truth.
Tom Hunt (Ipswich) (Con)
It is vitally important that we make these buildings safe, and that leaseholders should be paid, but it is also vitally important that, when this remediation work is carried out, the mental health of those still living in the buildings is taken into account. Twenty months ago, after the management of St Francis Tower gained access to the building safety fund, a giant shrink wrap was put on the building. A number of my constituents have been literally living in darkness. I would not allow animals to live in those conditions, and it should not be legal. Has any thought been given to a code of practice with teeth that sets benchmarks for what is acceptable and what is not acceptable when it comes to this sort of work? The block management of St Francis Tower have badly let down the residents, and I believe they have acted in an immoral way.
Michael Gove
My hon. Friend has been a very effective advocate for those residents and for people in the Cardinal Lofts building. He is absolutely right; sometimes it is necessary to decant people from buildings that are unsafe, and there should be an obligation on those who are doing that to ensure that people are in appropriate accommodation. More will follow in order to ensure that we give teeth to that provision.
Stephen Doughty (Cardiff South and Penarth) (Lab/Co-op)
The Secretary of State is aware that thousands of residents in my constituency are affected and are in buildings with issues such as these. There is a great deal of frustration, and I met some of them again last week to hear their concerns. He spoke about tough action against those who have not signed up to the contract or the pledge. He will be aware that there is a similar developers’ pledge in Wales, to which 11 companies have signed up. However, a number have not done so, including Laing O’Rourke. Has it signed up to the pledge in England? If it has not, what is his message to that company? Will he also take action against companies that fail to sign up to the pledges in other parts of the United Kingdom?
Michael Gove
I will work with all the devolved Administrations to ensure that we work together on this. I do not know whether Laing O’Rourke has yet signed, but if it does not, it will face consequences. I look forward to working with the hon. Gentleman and of course the Welsh Government.
Barry Gardiner (Brent North) (Lab)
The Secretary of State said that those who built these buildings did not always build them safely, “at times knowingly”. What sanctions will be faced by those who knowingly took shortcuts on safety, endangering and blighting residents’ lives, and who will bring them? As for the companies that he says must either sign or get out and find another business, what happens when they simply go out of business and pop up under another name?
Michael Gove
The hon. Gentleman makes some very good points. We have found that one particular company— I will not name it at the Dispatch Box at this time but I am more than happy to name it in private conversation—has tried to do just that and shift responsibility, and it was directly involved in construction at Grenfell. As a result, we have said that it cannot have access to Government funds through Help to Buy or any other schemes. The whole question of what further action may be taken against companies that knowingly put people’s lives at risk will be a matter for the police and the Crown Prosecution Service, following on from the conclusion of the Grenfell inquiry. I know that people have had to wait a long time for justice. I do sympathise with them, but, obviously, I cannot interfere with the independent operation of the justice system.
Jeremy Corbyn (Islington North) (Ind)
The Secretary of State will know from my correspondence with him about buildings in Drayton Park and in other parts of my constituency the deep stress and concern that many leaseholders and tenants have had. They have had to pay increased insurance costs and they have had their lives put on hold, as many other colleagues’ constituents have. I think they deserve compensation for the increased payments they have had to make. They also need to know exactly when this work will begin. They have been waiting years for it. I want to be able to go back to them and say that it is going to start—I would like to give them a date.
Michael Gove
That is entirely understandable, and once construction companies have signed this contract—and indeed this applies to social landlords too, once they commit to remediation—they should be in touch with the tenants and leaseholders to let them know when that work will be carried out. Again, I want to make sure that everyone is operating as they should. I would be grateful to the right hon. Gentleman if he could let me know, building by building, scheme by scheme, where people are still in doubt about this, and we will do everything possible to give them the information they deserve.
Hilary Benn (Leeds Central) (Lab)
Far too many leaseholders are still living in properties that have not been remediated, including in my constituency at Cartier House, the Gateway, and the Drive, Saxton Gardens, which was turned down for building safety funding even though the cladding has recently failed a fire test. As a result, five and a half years after Grenfell, a waking watch has been put in place. This is not good enough, is it? When are they going to get sorted out?
Michael Gove
No, it is not. There are a number of other constituencies and local authorities where either a waking watch has been installed or people have had to be decanted from the building, as was the case in Ipswich and in South Yorkshire. We are seeking to move as quickly as possible in order to ensure that that work advances. As I mentioned, the overwhelming majority of the buildings over 18 metres that have ACM now have work in place or being carried out. However, I will follow up on the individual cases that the right hon. Gentleman was kind enough to mention.
Helen Morgan (North Shropshire) (LD)
The statement today is a welcome, if belated, step in the right direction. We all agree across the House, I think, that leasehold is no longer a fit-for-purpose form of property ownership. Can the Secretary of State give us some timelines of when he might be bringing property ownership into the 21st century?
Andy Slaughter (Hammersmith) (Lab)
The Secretary of State said nothing about leaseholders in smaller buildings, nothing about leaseholders who have bought their freeholds, and, above all, nothing about social housing. This is a time when social landlords are selling their vacant stock and not developing new programmes. When will he make some announcement on this? At the moment, the only solution is for the Government to step into the shoes of social landlords. Why should social tenants have to pay for these mistakes?
Michael Gove
I do not doubt the hon. Gentleman’s passion and commitment on this issue. I trespassed on the House’s patience by speaking for more than 10 minutes, so there were a number of issues that I did not cover. I hope to be able to do so in greater detail at departmental questions and through correspondence. The nub of the matter is that this Government have acted, and are acting, to ensure that social housing tenants get a better deal. The announcement I made last week, while it is only £30 million, is earnest in its intent to ensure that tenants in social homes get money from central Government in order to ensure that they are safe.
Sir Stephen Timms (East Ham) (Lab)
My constituents welcome the Secretary of State’s grasp of their problems, but his changes have required some arrangements that were previously in place to be reworked. In the case of Barrier Point in my constituency, the insurers have responded to the delay by increasing the insurance charges for the coming financial year sixfold, as set out in my letter to him dated 13 January. Will the changes that he has announced offer any assistance and relief to them?
Michael Gove
They should do. Again, the right hon. Gentleman homes in on something that is very important, as have a number of other colleagues. Developers are stepping up to the plate and accepting their responsibilities, with one or two exceptions, and those developers have to alter their behaviour. It is also the case that lenders, for the most part, have changed their behaviour in order to help people who are trapped by their mortgages—but we have to monitor that behaviour. There are others—and the insurers as well as construction product manufacturers are squarely in our gun sights—who do need to do more. I believe that what we have announced today will help, but there does need to be additional Financial Conduct Authority and Government co-ordinated action. If the right hon. Gentleman has not yet received a response to his letter, I hope to lay out in my response exactly what we will do.
Fleur Anderson (Putney) (Lab)
My constituents will welcome this statement, but they will not break out in celebrations just yet. We want to see some action. Two big developments in my constituency, which had unsafe cladding identified three years ago, applied to the building safety fund. Since then they have been given vague promises by the developer but no action from the building safety fund. Can the Secretary of State confirm that those developments will now be taken out of the building safety fund and given to their developers, who will be told to do the remediation by a certain date, so that this lack of clarity over who is responsible for getting on with it is ended, and people can at last sleep well at night?
Michael Gove
That is exactly what today’s announcement is intended to achieve.
Florence Eshalomi (Vauxhall) (Lab/Co-op)
I welcome the overdue progress on developer responsibility; that gives some hope to my constituents. I want to draw the Secretary of State’s attention to an area that is often forgotten: safety for disabled residents. We know that the death rate for disabled residents in high-rise buildings is quite high. This delay has had a catastrophic effect. In December, a constituent emailed me to say that his young relative, who was in a wheelchair, had died when a fire broke out in her flat because she had no way to escape. Avoidable tragedies such as that will keep happening until we make the change. How can this be acceptable?
Michael Gove
The hon. Lady is completely correct. There are some inherited structural problems with high-rise buildings in this country, which make life more difficult for residents living with disabilities. For example, we tend to have one staircase only, whereas other countries tend to have two. Critically, one recommendation from the inquiry—the need for personal emergency evacuation plans—is one that the Government have not yet met. I have been working with my colleagues in the Home Office to make sure that we do, but I understand her exasperation. We need to move more quickly to give disabled people the certainty that they will be safe.
Justin Madders (Ellesmere Port and Neston) (Lab)
May I point out to the Secretary of State, who chastised the previous Labour Government for not abolishing leasehold, that most of the industrial-scale scandals we are now familiar with developed over the past decade? I think we are all agreed, are we not, that leasehold’s time is up, so can he give us a date by which all our constituents will be free of that feudal practice?
Michael Gove
That will depend on how quickly this House can agree the passage of the Bill. Given the generous words from the Opposition Front Bench, if we introduce it in the Queen’s Speech, then I hope it will be law as quickly as possible. One thing we all recognise is that when a system of property ownership has grown up over centuries, unpicking it all requires delicate work, but that work has been done by the Law Commission and others. I hope that our friends in the Office of the Parliamentary Counsel, who are the unsung heroes and heroines of legislation, will hear the determined chorus of unity across the House asking for the legislation to be developed as quickly as possible.
Gavin Robinson (Belfast East) (DUP)
I thank the Secretary of State for his ongoing commitment on these issues. He may be aware that in my constituency there is the ARC—the Abercorn residential complex—a building complex with 474 individual leaseholders. They know that their building has non-ACM cladding that needs to be remediated and that the Northern Ireland Executive received money through Barnett funds in March 2020, but the Northern Ireland Department for Communities has yet to develop a scheme that can advance those essential remediation works. There has been a request to Whitehall, so will he engage with my colleagues and me to ensure that the Northern Ireland Executive are given the support they need to deliver the remediation?
Michael Gove
Absolutely. I will ask Sue Gray, the second permanent secretary of my Department, to be in touch with the Northern Ireland Executive this week to do just that.
Mike Amesbury (Weaver Vale) (Lab)
On what date can we expect a positive response on personal emergency evacuation plans and the next and final stage of leasehold reform, to put it in the history books?
Michael Gove
On PEEPs, I am reliant on the good offices of my friends in the Home Office. They are working hard and I hope to update the House shortly. On leasehold, the plan is for a Bill to be introduced in the Queen’s Speech and then rapid progress through this House; I do not know whether in the other place there might be one or two people who are pro-feudalism, but I hope they will recognise that this House will be speaking with a united voice.
Ellie Reeves (Lewisham West and Penge) (Lab)
Dane House in Sydenham is a four-storey block of 26 flats with cladding on the third floor. Due to fire safety concerns, the building insurance is more than £23,000. Given today’s statement, will the original developers, Crest Nicholson, now be obliged to remove the cladding? The Secretary of State has talked about tackling insurance, but will he give a commitment that my constituents will no longer face such astronomical bills?
Michael Gove
We will do everything we can, and I hope Crest Nicholson will hear clearly exactly the eloquent plea the hon. Lady makes.
Rushanara Ali (Bethnal Green and Bow) (Lab)
In my borough we have the largest number of cladded blocks and we have had numerous fires, which have terrified residents. Last March, more than 100 firefighters were at the scene of one fire on Whitechapel High Street, in Houblon Apartments in the Relay Building. The building is owned by a mixture of private companies and social housing providers, and residents could not make head or tail of where the owners of the private companies were. There is a major issue with freeholders who are registered offshore so that our constituents cannot track them down. After years of asking for this, I ask again: can the Secretary of State commit to providing the legal support, or to the Government’s going directly after those who are not doing the work they are supposed to, rather than our constituents’ having to fight legal battles on top of living in dangerous cladded properties?
Michael Gove
That is exactly what our establishment of the recovery strategy unit is designed to do. I hope the hon. Lady will be in touch directly with Brigadier Cundy.
Paul Blomfield (Sheffield Central) (Lab)
I thank the Secretary of State’s ministerial and staff team for the support they have given to residents in Wicker Riverside. However, he will be aware of another case in my constituency, that of Mandale House, where the managing agency, Y&Y Management, which has directors in common with the landlords, is not only denying leaseholders their rights, but challenging the legal status of the legislation we have passed to protect them, presumably believing that the leaseholders will not have the resources to challenge them in court. Can the Secretary of State explain how today’s announcement will help leaseholders in Mandale House, and will he assure me that his Department will provide all the support they need to make Y&Y Management fulfil its responsibilities?
Michael Gove
We absolutely will—it is with their concerns in mind that I made the statement today. I am grateful to the hon. Gentleman for his kind words about the Department’s engagement. May I thank, in particular, the Under-Secretary of State, my hon. Friend the Member for North East Derbyshire (Lee Rowley), who has made personal visits to many of those who are most directly affected and is ensuring that, within the Department, every lever is being pulled to help them on an individual basis?
Matt Rodda (Reading East) (Lab)
I thank the Secretary of State for his statement. Could he explain to the House how this action will help residents living in blocks that are just under the threshold for intervention? We have many such blocks in Reading and Woodley. In addition, could he update the House on what measures the Department will take to tackle wooden cladding, insufficient partitions walls, and weak or unsafe fire doors?
Michael Gove
The hon. Gentleman is absolutely right to stress that it is not just cladding and buildings over 18 metres; there are other fire safety issues. It will be the responsibility of developers or, where appropriate, freeholders, to address those under the waterfall system that we have put in place through the Building Safety Act 2022.
Jim Shannon (Strangford) (DUP)
I thank the Secretary of State very much for his statement. Building safety is vital for all parts of the United Kingdom of Great Britain and Northern Ireland. Further to the point made by my hon. Friend the Member for Belfast East (Gavin Robinson), may I request a timescale for communications between the Department for Levelling Up, Housing and Communities and the Department for Communities in Northern Ireland, which has responsibility for this? One thing to consider in all this is that we in Northern Ireland deserve the same safety as residents here on the United Kingdom mainland.
Michael Gove
I could not agree more. I will ask Sue Gray, the second permanent secretary at my Department, to be in touch with the Department for Communities this week. I will write to the hon. Gentleman and the hon. Member for Belfast East (Gavin Robinson) with an update on the progress that we expect to make.
May I apologise to the House for referring to the Queen’s Speech, when I should, of course, have referred to the King’s Speech?
Mr Deputy Speaker (Mr Nigel Evans)
Thank you very much. I thank the Secretary of State for his statement and for responding to multiple questions.
Building Safety
Michael Gove Excerpts(1 year, 10 months ago)
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The Secretary of State for Levelling Up, Housing and Communities (Michael Gove)
It is a basic requirement of a modern society that people should feel safe in their own homes. For too many people this has not been the case. It is not the responsibility of Government alone to keep watch and to ensure that homes are fit for habitation, and that people can sleep safely; it is the responsibility of the industry that builds them, too. For too long, we know, that responsibility was not upheld by all in the way that it should have been; too many people have suffered and continue to suffer as a result.
One year ago, we set about righting those wrongs with what should have been a statement of the obvious: the moral duty to pay the cost of replacing unsafe cladding belongs not just to Government but to those developers, product manufacturers and building owners that put unsafe materials on people’s homes and continue to profit from them—and not the innocent residents living inside them.
One year on, the laws passed by this Parliament and the actions taken by this Government have systematically broken impasses that were considered intractable.
Leaseholders have been given legal protections from unfair remediation bills for the first time, thanks to the Building Safety Act 2022.
Leaseholders can sell affected properties and move on with their lives, or know that they have the freedom to do so when they choose: earlier this month Colleagues across the House joined me in welcoming the statement from the six major mortgage lenders confirming that they would once again consider mortgage applications on properties that are covered by the leaseholder protections in the Building Safety Act, or where the building is eligible for a Government or developer remediation scheme.
The Building Safety Act created new powers to compel the owners of unsafe buildings to ensure properties are fixed, and to require those who are responsible for their defects to pay for their errors and corner-cutting. These powers are available not only to Ministers, but to fire services, councils, and most importantly to leaseholders. The Government are continuing to work closely with fire services and councils to ensure that building owners are being held to account for their actions, and that, where required, enforcement action is being taken against them. Developers and building owners responsible for unsafe buildings should be under no doubt: there will be significant consequences if they fail to comply with their legal obligations.
The developer contract
In April last year, I announced that the largest house builders had signed a non-binding pledge outlining their intention to fix all life-critical fire safety issues in buildings over 11 metres which they had a role in developing or refurbishing in England. I welcomed their constructive engagement, as I do again now.
I am today publishing the contract that will legally commit developers to delivering on their word; a commitment worth more than £2 billion that will protect leaseholders in hundreds of buildings.
Developers will also be required to reimburse the taxpayer where public money has already been used to make their buildings safe. While there is much more to do, today is a major step towards putting leaseholders’ minds at rest.
Once the contract is signed by these developers, leaseholders and owners in affected buildings will benefit from a common framework of rights and responsibilities that will get buildings fixed without cost to leaseholders. The contract confirms that the developers will inform residents in affected buildings how they will be meeting these commitments. I am grateful to those developers who have got on with assessing and remediating their buildings without waiting for the contract.
I expect developers to sign the contract within the next six weeks, by 13 March. This includes every company that signed the pledge, as well as several companies that have regrettably not done so. If you built unsafe buildings over 11 metres but did not sign the pledge, I am putting you on notice: expect to be asked to step up in the near future. Now is the time to make a binding commitment. In signing this contract, developers will be taking a big step towards restoring confidence in the sector and providing much needed certainty to all concerned. They will confirm that they are responsible companies. I know, from the positive discussions I have had, that many will be keen to do so. This contract will allow those developers to plan for the future in the knowledge that they understand the full extent of their legal obligations.
The Responsible Actors Scheme
Using powers provided in the Building Safety Act, I will lay regulations this Spring to create a Responsible Actors Scheme, and make sure that eligible developers that do not sign up are prohibited from carrying out major development, and from receiving building control sign-off for buildings already under construction.
The regulations will set out eligibility criteria for the scheme and will require members of the scheme to enter into and comply with the terms of the developer remediation contract we published today.
Major developers who have built defective buildings need to sign the contract and comply with its terms. This is not up for debate. Any eligible developers who refuse to sign the contract and join the statutory scheme will be subject to the prohibitions.
I am looking at expanding the scheme in due course. I want to capture all those who built unsafe buildings over 11 metres and should be paying to fix them. If that is you, you should expect to be invited to step up and join the scheme in the near future.
Holding wrongdoers to account
My department’s Recovery Strategy Unit (RSU) has spearheaded legal action against recalcitrant freeholders and is actively investigating the concerning conduct of various companies across the built environment, including contractors and construction product manufacturers.
To those freeholders holding back work to make buildings safe, even where the Government has made sufficient money directly available through its building safety fund: you must fix your buildings or we will take action, including through the courts. This legal action has already started, and leaseholders have already secured the first successful remediation contribution order. I would encourage others to use these new powers to challenge bad behaviour.
I have heard with great concern from residents and leaseholders about the actions of some property funds that are delaying vital remediation work. My message to them is clear: if you cannot fulfil your responsibilities and make these buildings safe, you should sell them to someone who will. We are also backing councils to boost their enforcement action against freeholders unacceptably delaying works to make their buildings safe, with more than £8 million committed to support local authorities in the areas most affected by building safety issues.
Building insurace
At my request, the Financial Conduct Authority (FCA) reviewed the buildings insurance market for multi-occupancy residential buildings. Its report highlighted serious issues relating to commissions and other payments being shared with property managing agents, landlords and freeholders by insurance firms, with such payments making up at least 30% of leaseholders’ insurance premiums on average. The FCA also identified concerning obstacles faced by some leaseholders in trying to understand or challenge their insurance bills. This is not acceptable, and we must act.
I can confirm today that I will take action to ban the unacceptable practice of managing agents, landlords and freeholders receiving commissions and other payments from insurers and insurance brokers. I will replace these payments with more transparent fees and over the coming year I will press insurance brokers, managing agents and freeholders to change their practices as a matter of priority. I will also arm leaseholders with more information, enabling them to better scrutinise costs. I will also ensure leaseholders are not subject to unjustified legal costs and can claim their legal costs back from their landlord. These steps will ensure that leaseholder insurance costs are fairer and more transparent and will rebalance the legal costs regime to give leaseholders greater confidence to challenge their costs.
I am pleased to see that the FCA has committed to investigating broker practices and consulting on regulatory changes to further protect and empower leaseholders. While this is a positive first step, leaseholders require meaningful change to ensure that they are better protected in the future. Leaseholders also need insurance premiums to reduce significantly and urgently, but it is clear that the quality of data in the insurance sector must improve to make this possible. I expect the FCA to ensure that industry implements its new data collection code for fire safety, to report on what actions it will take to ensure a fairer and more competitive market by the summer and to continue monitoring this sector.
I also welcome continuing work by the insurance industry on launching a UK-wide scheme to reduce the most severe premiums for leaseholders in buildings with significant fire safety issues, but I must stress the urgency: leaseholders need this support now.
Transforming the built environment
We are creating a culture of high standards that will transform the sector and ultimately the built environment, working closely with those who do that building. Together we will put standards and safety first, and must recognise that when these interests of those who live in homes and those who build them are aligned, everyone will benefit in the long run. The Government will play their part in that not only through clear regulation, but through leadership that holds wrongdoers to account.
The new Building Safety Regulator will oversee this culture of standards. The Government will be taking forward an ambitious programme of secondary legislation over the next year to set the regulator on firm foundations. Building owners and managers should already be preparing for the first requirement due to come into force soon—the requirement to register higher-risk buildings with the regulator. I will be working closely with the regulator to ensure that we have the world-leading regime that residents and leaseholders deserve, and I look forward to approving their first strategic plan in the coming months.
A copy of the contract will be deposited in the Library of both Houses and is available at: www.gov.uk.
DLUHC: Foundations for Growth
Michael Gove Excerpts(1 year, 10 months ago)
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The Secretary of State for Levelling Up, Housing and Communities (Michael Gove)
One of the Prime Minister’s top priorities is growing the economy, spreading opportunity right across the country. Levelling up is central to that mission. Today I am delighted to update the House on further progress being made to deliver the right foundations for growth through increased innovation, strong local leadership, and pride in place for communities.
First, on investment zones. This country has no shortage of growth industries, whether in advanced manufacturing, renewable industries or life sciences. And we have no shortage of world-class universities. But where we have underperformed is leveraging the success of these industries and research to support growth across the whole country. That is my guiding mission for investment zones. We will shortly begin a process to identify where zones will be located, guided by three principles. First, that Government cannot create clusters, but it can create the conditions for them to succeed. Secondly, success requires fiscal support, but also a wider range of interventions, whether land assembly, housing, transport, or skills, to tackle the specific barriers each cluster faces to growth. And thirdly, that can only happen in partnership with strong local leadership over the long-term.
Secondly, on nationally significant infrastructure projects. Working with BEIS, DEFRA, DFT and HMT we are modernising the approach to major projects and we will shortly publish an action plan setting out reforms to the nationally significant infrastructure projects regime that will streamline and speed up the consenting process. These important reforms will boost investor confidence in major infrastructure and help Government to improve energy security, achieve net zero and deliver the transport connectivity, water and waste management facilities this country needs.
Thirdly, on backing local leadership to regenerate their local areas. I am today announcing that I will shortly lay before Parliament secondary legislation setting up two new mayoral development corporations in Tees valley. These will drive a major regeneration of Hartlepool and Middlesbrough town centres and attract businesses and people back to these centres, making them vibrant, safe, and pleasant places in which to live and work. We are also in talks with both Greater Manchester and the West Midlands to strengthen the hands of both Mayors. We are exploring options to devolve more power, including in areas such as housing, to these combined authorities. Further details will be set out in the trailblazer devolution deals that will be published in due course. Alongside this, as part of our national reforms to ensure that all homes are free from the types of poor conditions and hazards that led to the tragic death of Awaab Ishak, I am today announcing £30 million to support the Mayors of Greater Manchester and the West Midlands combined authorities to support improvements in the quality of social housing in their areas.
Fourthly, as we take steps to devolve more power to local leaders we are also backing this with clear accountability. We announced in the levelling up White Paper that we would establish a new Office for Local Government (Oflog), which will empower citizens to hold local leaders to account, while supporting local leaders to innovate and drive self-improvement. I am pleased to announce that I have appointed Lord (Amyas) Morse to the position of interim chair of the Office for Local Government. Lord Morse brings to the role a wealth of experience in public sector service delivery and performance, and will provide independent advice, support and challenge to Oflog’s strategic vision, functions and delivery. My Department will shortly recruit for a new chief executive for this important body.
Fifthly, to level up truly we must also ensure that people feel safe in their communities. We know that this is a real priority for our communities who want strong, practical action to tackle crime and anti-social behaviour. Graffiti, vandalism, disorder and evidence of drug use makes daily life a misery. Indeed, for many, tackling this blight is a prerequisite to levelling up. This requires a multifaceted response. Working with the Home Office, the Department for Education and the Ministry of Justice, we will shortly announce plans that will deliver for communities, giving them the confidence that the places they love can and will be protected and enhanced.
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Levelling-up Fund Round 2 Outcome
Michael Gove Excerpts(1 year, 10 months ago)
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The Secretary of State for Levelling Up, Housing and Communities (Michael Gove)
One of the Prime Minister’s top priorities is growing the economy, to create better-paid jobs and spread opportunity right across the country. This provides the foundations upon which to build stronger communities and safer streets. Levelling up remains central to these missions.
Today, I am delighted to announce the next stage of our levelling-up programme. This Government are committed to delivering three key priorities across the UK: supporting pride in place by funding culture projects in local communities; delivering economic growth with transport projects; empowering local leaders to regenerate their town centres. We are therefore allocating £2.1 billion of funding from round two of the levelling-up fund to drive growth and enhance communities. The successful bids were allocated following a rigorous official process, which took account of the geographic spread of need across the UK, ensuring the levelling-up fund reaches as many areas as possible across rounds 1 and 2.
The funding announced today builds on the £1.7 billion awarded to 105 bids in the first round, driving growth and regeneration across the UK. We received a tremendous response to this second round of the fund, with over 500 bids received, and a total value of £8.8 billion, a significant increase on the just over 300 applications in round 1. All bids for round 2 were assessed by officials according to clear criteria, and Ministers approved the funding selection without adding or removing bids. Further details of the process applied by the Government are published in our explanatory note on the assessment and decision-making process.
The levelling-up fund will play a key role in helping to reduce geographical disparities across the United Kingdom. To this end, the second round of the fund will see £456 million awarded in Scotland, Wales, and Northern Ireland, building on the £342 million awarded in round 1. This Government are committed to protecting and promoting the combined strengths of the UK. I strongly believe that, working as one United Kingdom, we are better able to tackle the individual challenges every region and nation across the country face.
We will have a further round of the levelling-up fund, alongside other complementary interventions which together will help protect community assets and level up areas of the country. We will outline more information on this in due course.
[HCWW503]