Levelling-up and Regeneration Bill (Twenty Seventh sitting) Debate

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Department: Department for Levelling Up, Housing & Communities
Alex Norris Portrait Alex Norris (Nottingham North) (Lab/Co-op)
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I beg to move, That the clause be read a Second time.

It is a pleasure to resume proceedings with you in the Chair, Mrs Murray. I feel strongly about the new clause. It relates to the community power that we feel is missing in the legislation. I will make a big case for it, and am interested to hear the Minister’s views. It is an important new clause, which would strengthen the Bill and make a strong contribution to achieving the levelling-up mission, in particular to increase pride of place in every part of the UK by 2030.

A community right to buy, as set out in the new clause, would build on the existing community right to bid legislated for in the Localism Act 2011 and its statutory instruments, which gives communities the right of first refusal once buildings and spaces with significant community value come up for sale. The Department for Levelling Up, Housing and Communities’ own research shows, however, that the existing legislation is not quite doing the job: only 15 assets make it into community ownership for every 1,000 listed as an asset of community value.

Under a much stronger community right to buy, a community organisation or group that is able to raise the required funds when an asset of community value comes up for sale would be able to purchase it without competition. The new clause would extend the existing moratorium from six months to 12 months, because the process of not only raising capital but preparing and building a business plan takes time. Six months has clearly not been enough. This could be a transformative change for many community organisations and the places where we live, and the new clause is very compatible with high street rental auctions, which we discussed in part 8.

In too many places, we see shuttered-up shops and empty buildings blighting high streets and town centres. They are often left vacant by distant private landlords with little stake in places. Members will have stories about that from their constituencies, I have no doubt. Introducing a community right to buy would be a recognition that it is time for that to change. It would give communities new powers to take control of assets in their area and, where assets are in community ownership, we know that vacancy rates are lower, footfall is driven to other businesses, more money stays in the local economy and hiring is more diverse—certainly more than if they are unoccupied.

As I said, the rental auctions are a welcome provision, but the new clause goes further. There is an important point of distinction between the Government and the Opposition on this legislation. Whatever the politics of levelling up, the Bill is born out of a consistent message that we have heard from our communities for a number of years: they want a greater say in what happens in their communities. Having been promised devolution, however, what they will get from the Bill is a transfer of power from Whitehall to, generally, regional or sub-regional bodies. That is a good thing, and we support those provisions in the Bill, but it is an incomplete process; it needs to be accompanied by a transfer of power from town halls and sub-regional bodies to local communities to shape place. People expect that, but as yet do not have it in the Bill. The new clause is a good step to rectifying that. I hope to hear that the Minister is keen.

Lee Rowley Portrait The Parliamentary Under-Secretary of State for Levelling Up, Housing and Communities (Lee Rowley)
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I thank the hon. Gentleman for the new clause and for talking us through it. We absolutely agree that the issue is significant and one that we need to get right. Buildings such as community centres and pubs are a hugely important part of our social fabric. I understand the intent behind his community right to buy proposal. We share the same sentiments about getting the process right and giving communities an appropriate and reasonable opportunity to see whether they can take action, while ensuring that the process is not too long or difficult to be feasible.

I absolutely accept the need to review the existing legal and policy frameworks underpinning community ownership. We have said already in the levelling-up White Paper that we will consider how the existing assets of community value framework could be enhanced, but we probably need more time to consider that and whether changes to the framework are workable in practice. It needs consultation and discussion with stakeholders, and we need to work through the implications in significant detail. Although I accept and understand the point that the hon. Gentleman is making, I would prefer not to accept these proposals at this time. I will review them in more detail separately.

I hope that the hon. Gentleman feels that the commitments in the levelling-up White Paper and those I have given just now are sufficient, notwithstanding other activities that may be happening elsewhere on this estate and beyond, and that he will withdraw the new clause.

Alex Norris Portrait Alex Norris
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I am pleased to hear that, in concept, the Government agree with this proposal. That is good news, and those who are campaigning and active in this space will be very glad to hear that.

There is obviously a commitment to this in the White Paper, and the Minister has accepted that the Localism Act provisions will not do. There needs to be a change, so it needs to be looked at and amended, but the Minister said that the vehicle for that is not the Bill. That seems really strange to me; it seems exactly the moment to do it. I take the Minister at his word, as I always do, and we will continue to advocate very loudly for this change. The hon. Member for Wigan (Lisa Nandy) and I are particularly keen on it. I hope there will be an opportunity in this Session to do that.

I do not intend to divide the Committee on the new clause. If I am entirely honest, I think the vote that will change the future of community power will be a general election, rather than a Division in this Committee, so I am happy to withdraw the new clause on that basis, but it will not go away. The public demand for it will only grow, and we as politicians have to demonstrate that we understand that people want this. We must deliver on it, even if it is not today. I beg to ask leave to withdraw the motion.

Clause, by leave, withdrawn.

New Clause 75

Homes England Statutory Objects

“(1) Section 2 of the Housing and Regeneration Act 2008 is amended as follows.

(2) After subsection (1)(d), insert—

“(e) to ensure that spending decisions by Homes England are designed to deliver Levelling-up,

(f) to reduce regional inequality by delivering homes and stimulate related economic activity,

(g) to report to Parliament annually assessing the progress that has been made in reducing regional inequalities.”—(Alex Norris.)

Brought up, and read the First time.

Alex Norris Portrait Alex Norris
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I beg to move, That the clause be read a Second time.

Ministers have talked about the importance of building houses, but as a country we are still not building enough affordable homes. Crucially, we are not building them in the places that need them the most to support growth. We could talk about that all day. My hon. Friend the Member for Greenwich and Woolwich has made many good points about why that has happened.

To bring this back to levelling up, we need to ensure that all organisations that touch communities have a strategic drive to level up. At the moment, levelling up is not a strategic priority for Homes England. Its focus is on supply and quality, rather than reducing regional inequalities, so we think we should add that. For example, through the so-called 80:20 rule, housing infrastructure cash has tended to be targeted at London and the south of England.

New clause 75 seeks to address that disconnect. I hope I am on relatively good ground with the Minister. In a previous discussion, the hon. Member for Harborough (Neil O’Brien) said in response to one of my interventions that he expected Homes England to adopt levelling up as a statutory objective, but I want to be clear on that.

The new clause would add three statutory objectives. First, it would require Homes England to consider levelling up as part of its spending decisions. Secondly, it would require Homes England to reduce regional inequality by delivering homes and stimulating related economic activity. Thirdly, to ensure transparency and accountability, it would require Homes England to report back once a year on the progress that has been made towards reducing regional inequalities.

Rachael Maskell Portrait Rachael Maskell (York Central) (Lab/Co-op)
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I want to support this new clause, with reference to proposed new subsection (2)(e). There is a real disconnect in Homes England: it does not understand the way communities work, including transport systems, the economy and housing. In addition, the fact that it is so distant—it is London-centric—means that it does not focus on communities. That is a real faultline in Homes England that must be addressed.

Alex Norris Portrait Alex Norris
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That is precisely why I tabled the new clause. Writing that into the fibre of the being of Homes England would make a real difference in those areas, as my hon. Friend says. The Minister may be able to give us some clarity, but I understand that a revised strategic plan for the Department has been drafted. I will be keen to know from the Minister, if he is unable to tell us quite what is in that, when we might get to see it, and whether it is his view, as it was that of the then Under-Secretary of State for Levelling Up, Housing and Communities, the hon. Member for Harborough that levelling up will be reflected as a priority for the agency in the coming years.

Lee Rowley Portrait Lee Rowley
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The new clause seeks to introduce, as the hon. Gentleman outlined, a series of further statutory obligations on Homes England. Although I understand the sentiments behind those additional statutory obligations and we all, on both sides of the Committee, accept and wish to promote the underlying objectives of levelling up—even if we may disagree about how to describe it—I am not personally convinced that we require additional statutory objectives here.

Homes England is a delivery body. It is a body charged with undertaking the work that is effectively set by the Department. It is a very big delivery body and goes over numerous different areas. I am already working closely with it and look forward to doing so further. However, it is charged with delivery, and the delivery of something requires the Department to set what that is, so my preference remains that we do not legislate on something like this, but that the conversation and discussion continues between the Opposition and the Department and between the hon. Member for Nottingham North and me in order to confirm what the Opposition wish to see in this area and then what the Government wish to see. I think that that is an area, a discussion and a responsibility that should remain with the Department, and then the Department can inform the delivery body of what to do, rather than us mandating in legislation what the delivery body should do. For those reasons, I ask the hon. Gentleman to consider withdrawing the new clause.

Alex Norris Portrait Alex Norris
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I am grateful for that answer. I am not particularly excited by how this happens; my wish is just that it does happen. But I am grateful for the Minister’s answer and his explanation of how he feels. I have absolutely no issue with it sitting as a departmental prerogative. I do not think the two things need to be in tension. The thing for me is that we will keep pushing on this point. I was not as clear, I have to say, from the hon. Gentleman’s answer as I have been from previous answers from previous Ministers that it remains the position of the Government. Perhaps that is something that will be followed up on in due course, because this is really important. The one thing we know about levelling up is that it takes active interventions and that if we leave things to the market or to how things currently are, that will not deliver, so there has to be something different in this regard. I think that this measure was something different, and improving. It has not been successful today and I will not push it to a Division, but we will, again, stay on this point. I beg to ask leave to withdraw the motion.

Clause, by leave, withdrawn.

New Clause 76

Standards Board for England

“(1) There is to be a body corporate known as the Standards Board for England (‘the Standards Board’).

(2) The Standards Board is to consist of not less than three members appointed by the Secretary of State.

(3) In exercising its functions the Standards Board must have regard to the need to promote and maintain high standards of conduct by members and co-opted members of local authorities in England.

(4) The Secretary of State must by regulations make further provision about the Standards Board.

(5) Regulations under this section must provide for—

(a) a code of conduct of behaviour for members and co-opted members of local authorities in England,

(b) the making of complaints to the Standards Board a member or co-opted member has failed to comply with that code of conduct,

(c) the independent handling of such complaints in the first instance by the Standards Board,

(d) the functions of ethical standards officers,

(e) investigations and reports by such officers,

(f) the role of monitoring officers of local authorities in such complaints,

(g) the referral of cases to the adjudication panel for England for determination,

(h) about independent determination by the adjudication panel its issuing of sanctions,

(i) appeal by the complainant to the Local Government and Social Care Ombudsman,

(j) appeal by the member or co-opted member subject to the complaint to the Local Government and Social Care Ombudsman, and

(k) the governance of the Standards Board.

(6) In making regulations under this section the Secretary of State must have regard to the content of Chapter II (investigations etc: England) of Part III (conduct of local government members and employees) of the Local Government Act 2000, prior to the repeal of that Chapter.

(7) The Standards Board–

(a) must appoint employees known as ethical standards officers,

(b) may issue guidance to local authorities in England on matters relating to the conduct of members and co-opted members of such authorities,

(c) may issue guidance to local authorities in England in relation to the qualifications or experience which monitoring officers should possess, and

(d) may arrange for any such guidance to be made public.”—(Mrs Lewell-Buck.)

This new clause seeks to reinstate the Standards Board for England, which was abolished by the Localism Act 2011, but with the removal of referral to standards committees and the addition of appeal to the Local Government Ombudsman.

Brought up, and read the First time.

Emma Lewell-Buck Portrait Mrs Emma Lewell-Buck (South Shields) (Lab)
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I beg to move, That the clause be read a Second time.

It is a pleasure to see you in the Chair, Mrs Murray. As this is probably one of the last times I will speak in this Committee, I want to thank you, your fellow Chairs, the Clerks of the Committee and all House staff.

I am presenting new clause 76, in my name and that of my hon. Friend the Member for York Central. It would increase accountability and transparency and restore public faith in local government. Since the Standards Board for England was abolished by the coalition Government in 2011, local authorities have been tasked with making up their own rules and standards of conduct for local councillors. As the current system stands, the monitoring officers, who work side by side with councillors every day of the week, are the very ones tasked with handling complaints about those same councillors. Should they feel that a complaint warrants further investigation, they can ask that the local authority’s standards committee looks further at the matter and decides on suitable sanctions. The committee can be comprised of other councillors, largely from the authority’s majority ruling group. They then decide what happens to their close colleagues and friends. They can decide whether the hearing is in public or not. If they decide to put any sanctions in place, they may be limited to, at most, simply barring them from meetings for a few weeks or taking away their ICT resources. It is abundantly clear that that system is totally unacceptable. Councillors should not be free to police themselves, and monitoring officers should not be put in such potentially impossible situations.

In 2019, a report by the Committee on Standards in Public Life highlighted the fact that the vast majority of councillors and officers maintain high standards of conduct. However, there is clear evidence of misconduct by some councillors. The majority of these cases relate to bullying or harassment, or other disruptive behaviour. We have also heard evidence of persistent or repeated misconduct by a minority of councillors. This misconduct occurs at both principal authority level and at parish or town council level.

I know all too well from my own local authority the consequences of limited checks and balances, and of processes open to interference. In 2020, the former leader of my council resigned suddenly in the wake of allegations of bullying and financial concerns, just weeks after our chief executive walked out after 10 years in post. Police and other investigations are ongoing.

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Rachael Maskell Portrait Rachael Maskell
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I listened with interest to the Minister’s response. The challenge that I would put back to her, and ask her to reflect on further, is that it is because we have a very fragmented framework across many different Government Departments that we are not making progress. While the levelling-up agenda was very much a central agenda, with some clear missions to try to measure it and move it forward, excluding this form of monitoring and advancing public health information by leaving out the new clause will not help the Government.

While I appreciate what the Minister says about the spatial data unit, this is really about the analysis and bringing the whole agenda together on the levelling-up missions, to be able to start driving down the inequality that exists across our society, which is so damaging to our nation and to people across the country. I will not push the new clause to a vote—I am sure that it will return at later stages of the Bill—but I ask her to reflect on how we bring these agendas together. On Second Reading—if we can remember that far back—we were very much talking about trying to bring an agenda together in order to take our country forward. Leaving out really important elements such as this could take us back, not forward. However, I beg to ask leave to withdraw the motion.

Clause, by leave, withdrawn.

Question proposed, That the Chair do report the Bill, as amended, to the House.

Alex Norris Portrait Alex Norris
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I want to put on record for myself and on behalf of my colleagues our thanks to you, Mrs Murray, and your colleagues in the Chair; to the world-class Clerks for all their assistance; to the Doorkeepers and the Hansard Reporters for all their work; and to Government colleagues, both Front Benchers and Back Benchers, for the discussions and debates. I know that they have been lengthy, but that is because the Bill is important, and we appreciate the spirit in which that has been done. I extend that to the Government’s officials, as well as our own staff. I am very grateful. Thank you.

Dehenna Davison Portrait Dehenna Davison
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For fear of this sounding like an Oscars acceptance speech, I have an awful lot of thank yous to say. First, I express my sincere thanks to the shadow Ministers. This is my first Bill Committee as a Minister. Hopefully it will not be my last, but given today, who knows? I thank them for the very constructive and warm way in which they have engaged with me, and with my colleague beside me, the hon. Member for North East Derbyshire, on the Bill. There are some incredibly important debates to have. We have had some of them, and I know that many more happened before I took over as the Minister in this area. The fact that they have all been conducted in such a constructive and jovial way is something that I am certainly very grateful for.

I am also incredibly grateful to the officials who got us briefed on the Bill and got us through it, and to the Clerks and all Chairs of the Committee, including you, Mrs Murray. I am very grateful to members of the Committee of all colours for the spirit in which we have conducted it today, and to Whips past and present, Parliamentary Private Secretaries past and present, and Doorkeepers. I think I have pretty much everyone covered. A huge thank you from me. I am delighted to see the Bill through to the end of Committee stage.

Question put and agreed to.

Bill, as amended, accordingly to be reported.