(6 days, 17 hours ago)
Commons ChamberI call the Chair of the Housing, Communities and Local Government Committee.
I thank the Minister for her statement. I appreciate that she outlined that she has listened to valid concerns from councils about reorganisation. I have raised with Ministers the uncertainty that councils will face in transitioning into new councils, and in running vital day-to-day services.
I am a bit disappointed in the Minister, in that this announcement has come so late in the day. This is an issue of grave importance to so many hon. Members right across the Chamber, but many of them will not be here today to raise their concerns with her. In addition to the Secretary of State’s comments two days ago, he said this when he appeared before the Select Committee on 11 November:
“Where the elections are intended to go ahead, they will go ahead.”
What has changed since then?
The deadline is in a few weeks—the Minister asked that representations be made no later than 15 January—which leaves councils little time to prepare, if we are to make sure that we inform the Electoral Commission as well. What advice would she give to election officers who are planning elections, which takes time and costs money? Should they go ahead or should that work be paused? After that date, when will the final decision be made? Can Members have sight of that date?
We appreciate that local government reorganisation is complex, but we cannot have a situation in which the Government keep postponing elections. Local elections are vital and a sign of a healthy democracy.
I thank the Chair of the Select Committee for raising those points. First, I take seriously her point about the timings. She will understand that it has been a particularly busy time, given all that is happening in the Department, but I absolutely accept her point. I have been in touch with many Members of the House on reorganisation, funding and other matters, and I anticipate that I will also be in touch with Members over the rest of the year, and very much in the new year as well.
My hon. Friend asked, “Why now?” We have had representations from a number of councils undergoing reorganisation—albeit by no means the majority, as most councils that are reorganising are not due to have elections in any case—and we think it is important that we take stock of their views on capacity constraints. My hon. Friend also asked about timings; we have asked the councils to come back to us quickly, and we will take decisions swiftly.
(1 week ago)
Commons ChamberI call the Chair of the Housing, Communities and Local Government Committee.
I thank the Minister for her statement. I know she has been working really hard on this issue since she took on the role a few months ago. She is aware of the many pressing issues facing councils up and down the country—from SEND to temporary accommodation, housing and adult social care—and 14 years of under-investment will not be reversed by one funding settlement. It is therefore important that we continue to work with councils.
This is the first multi-year settlement in a decade, which will help our local leaders in planning for the future and, most importantly, planning for their local residents. I welcome the inclusion of local housing costs in the new funding formula, but ultimately it does not take in local housing allowance, which the Minister knows has been frozen for many years and is still causing a lot of pressure for councils.
The Minister mentioned that the Government will be looking at the council tax freeze in some areas, and at lifting referendum principles. She knows there is growing consensus on wholescale council tax reform instead of us tweaking it. It is the most regressive form of taxation and there is inequality across the country. Will the Minister look at what the Committee’s report says about a wholescale review of council tax banding, so that local leaders can have funding to spend on their local areas, and make sure that other areas see that funding come through?
I thank the Chair of the Select Committee for that comprehensive run through all the issues. She is right that we need not just funding but policy change to get councils to financial sustainability. I look forward to discussing that with my hon. Friend and her Committee. She also asked about council tax reform, which was not the subject of my statement, but I have no doubt that she will be asking me about it again in the near future.
(1 week, 6 days ago)
Commons ChamberI call the Chair of the Housing, Communities and Local Government Committee.
I thank the Minister for her statement this afternoon. I pay tribute to my hon. Friend the Member for Bethnal Green and Stepney (Rushanara Ali) and my right hon. Friend the Member for Ashton-under-Lyne (Angela Rayner) for their work; this is an area they were both committed to when they were in their previous ministerial roles. The Minister is correct that reversing the tide of homelessness should certainly be a national priority. It is not something that will happen overnight, and we know that further action will be needed to ensure that councils have the support they need for the pressures they are facing—particularly London councils, as the Minister will know, which are collectively facing costs of £5 million a day just on TA.
One of the ways the Government can help to alleviate those pressures and stop people becoming homeless in the first instance is with their rents. There have been asks of Government with cross-party support and from a number of organisations, including the Local Government Association, to look at local housing allowance rates to ensure that people can afford to rent locally so that they do not find themselves facing the threat of eviction and homelessness. Has the Minister discussed this matter with colleagues in the Department for Work and Pensions and the Treasury to ensure that our residents and tenants do not find themselves evicted? I think of the many children who, two weeks from today, will be opening their presents in another B&B or in more unsuitable temporary accommodation. For them and for many others, we have to make sure we get this right.
I thank the Chair of the Select Committee for her words and for her long-standing commitment to tackling homelessness in the capital and right across the country. She is right to ask about council pressures, and we are trying to address the inadequacies of council funding across the country. At the moment, the costs of TA and the spikes in demand are putting pressure on councils that will make it even harder for them to balance their budgets, and that serves nobody. We have to get this under control, because it is a waste of taxpayers’ money, no less than it is a waste of childhoods. We have got to get on top of it.
My hon. Friend asks about incomes and whether I have discussed that with other Departments. This is a cross-departmental strategy, and Ministers from DWP and other Departments have been very involved in it. At the heart of the problem is the lack of social housing, particularly in London, which is why we need to build more. I am glad that this strategy comes closely after the child poverty strategy last week, which saw action to improve family incomes, not least the removal of the two-child limit.
(1 month ago)
Commons ChamberI call the Chair of the Housing, Communities and Local Government Committee.
I thank the Minister for outlining those points. The situation is not just isolated to London; many councils are seeing an overspend—still going up —in this really tricky area. Just today, Epsom and Ewell borough council reported an overspend of £500,000, rising to £800,000 by next year. Slough estimates a £22 million overspend on TA; Woking, a £330,000 overspend; Waverley, a £165,000 overspend; and Waltham Forest, a £31 million overspend. That is just on temporary accommodation. This situation is not sustainable financially for councils or taxpayers. What more can the Minister do? Can she speak to Treasury colleagues about the big sticking point: the increase in and freeze on local housing allowance, which is not allowing people to live locally and rent locally?
I thank the Chair of the Select Committee for setting out that, aside from the fact that we care about temporary accommodation because every child deserves the space to play and do their homework, this problem is putting local councils under a financial pressure that is not bearable. We have to get a grip of this situation. We will have more to say about this crucial issue in the homelessness strategy, and I look forward to engaging with the Chair and the whole Committee on it.
(2 months, 1 week ago)
Commons ChamberI welcome the Secretary of State and his Ministers to their positions. I very much look forward to welcoming them to meetings of the Select Committee; we are a fair and robust Committee. The Minister highlighted the inter-ministerial group, which the former Secretary of State chaired and saw as being very important. The issue cuts across all departmental groups. It is important, because within two months, as we go into the next year, and in the next financial year, we will see over 170,000 young children in temporary accommodation —in homelessness. That should worry all of us. The inter-ministerial group has met four times. Can the Minister confirm that the group will continue to be convened—and if it will, who will chair it?
The Chair of the Select Committee makes the case extremely well. If anybody in this Chamber is not worried about temporary accommodation, they are not paying attention; that is how serious this is. It is terrible for our kids, and for the taxpayer, because it is so expensive. I will follow up with her. A lot of work has already been done on the homelessness strategy. We want to get it confirmed as soon as possible. I will engage fully with the Select Committee on the strategy to ensure that we get it right, and we will come back to her shortly with the details of how we will do that together.