(10 months, 2 weeks ago)
Commons ChamberI have proudly represented my home town of Romford in this House for some 24 years. An historic market town since 1247, it has been part of the county of Essex, formerly the kingdom of Essex, since the 6th century. Essex is my county. I was born at Rush Green hospital, Romford, Essex. I have lived all my life in Marshalls Park, Romford, Essex. I went to schools at Rise Park and Marshalls Park in Romford, Essex. My house has a Romford, Essex RM1 postcode. My home telephone number has a Romford, Essex 01708 dialling code. The church of St Edward the Confessor in Romford Market, where I was christened and confirmed, falls within the diocese of Chelmsford, Essex.
Essex county cricket club is our local cricket team, and we support it strongly. Romford football club, who were the proud winners of the vase trophy at Wembley one year ago, are part of the Essex senior football league. Last week, I hosted a St George’s Day celebration at Romford golf club, which is part of the Essex Golf Union. Our local bowling clubs for Romford, Gidea Park and Hornchurch all fall under the Essex County Bowling Association.
The Bedfords Park visitor centre in the historic Essex village of Havering-atte-Bower is managed by Essex Wildlife Trust. Our water supply comes from Essex and Suffolk Water. The Essex chamber of commerce ably represents business interests throughout our fine county. On Essex Day, on 26 October every year, the mayor of Havering—my borough—raises the Essex flag from our town hall in Romford to demonstrate local pride and love for our historic county.
Romford is geographically Essex. We are historically Essex. We are culturally Essex and our social, sporting and commercial connections have always looked towards the county of Essex. My constituents and I are proud of our Essex identity, which transcends local government or administrative boundaries that are forever changing—as they are again today. Indeed, the London Government Act 1963 created a new administrative region, to be known as Greater London.
That is when our problems began. Rather than Romford borough council and Hornchurch urban district council being retained as part of the Essex county council administrative area, it was decided to incorporate Romford and Hornchurch into the new Greater London and create a “London borough of Havering”. Ever since then, our Essex identity has tragically been diminished and even discarded by some, as if centuries of history in belonging to such a great English county could end simply because of local government reorganisation, which was lazy in its construction and took no account of our history. This has led to 60 years of muddle, confusion and constant debate about whether Romford and Havering remain part of Essex or not. The truth is, however, that the new London boroughs formed in 1965 were never removed from their historic counties of Essex, Middlesex, Surrey, Kent and Hertfordshire.
My hon. Friend is making an excellent speech about a subject that is close to my constituents’ hearts as well. Does he agree that other Government institutions should follow the lead of Mr Speaker in flying, for example, the Middlesex flag on Middlesex Day to celebrate the heritage of my constituents, and that the heritage of Essex should be celebrated in a similar way? Will he also join me in encouraging the Prime Minister—or No. 10 Downing Street—to follow the example of his predecessor in flying both the Middlesex flag on Middlesex Day and the flags of the other historic counties on their relevant days in the coming months?
I am grateful to my hon. Friend for making that point about the flying of historic county flags. Middlesex Heritage, an organisation established by Russell Grant which has promoted the importance of the heritage of the ancient county of Middlesex, actually purchased two Middlesex flags. They gave them to the then Prime Minister, Boris Johnson, and one of them was proudly flown from No. 10 Downing Street, London being part of the county of Middlesex. That tradition continued under the next Prime Minister, Rishi Sunak.
Order. I think the hon. Gentleman means the right hon. Member for Richmond and Northallerton.
Indeed, Madam Deputy Speaker.
Let me say this to my hon. Friend. I do hope that the current Prime Minister will uphold that proud tradition and, later this month, fly the Middlesex flag. I think it would please a lot of people in the historic county were he to do so.
The historic counties remain today, and are proudly celebrated by local people throughout those counties and throughout England. Mr Speaker is demonstrating that by flying the historic county flags here in the House of Commons on all the historic county days. What happened six decades ago was only a change in local government structures, but sadly ceremonial arrangements were also changed, which was completely unnecessary and has added to the confusion, removing Romford from our rightful place under the Lord Lieutenancy of Essex. It seems that changes like this happen every few decades when new Governments take office, and we are seeing that again today. I say to the Minister, “Let us do this properly and get things right.”
In Havering, we have much in common with Brentwood, our neighbouring town, but not really with Brentford in west London. Epping is on our doorstep, but Ealing is a long way from our neck of the woods. We visit Southend but never go to Southall. What works for Hampstead is not always what is required in Havering, and it is unlikely that my constituents could tell you where Colliers Wood is, but Collier Row is a cherished part of Romford, Essex, and has many rural parts that feel like one is deep in the English countryside.
I am not suggesting that the people of Havering do not value the important connections that we enjoy with the City of London and what is known as the east end of London, because we do. So many families, including mine, have moved from the east side of London to Essex over the past century, and our links to London are vital to us for business, work, travel, tourism and, of course, family connections—not to mention going to the theatre in the west end. Coming from a borough that orbits the capital, I can tell the Minister that the people of Havering are not opposed to co-operating with boroughs, towns and communities to the east when it makes sense to do so, but Greater London, as a region with an overarching Mayor, is too big and too remote to meet the needs of a borough such as Havering, which considers itself to be part of Essex.
It is also very costly for us to be part of Greater London, as we pay tens of millions of pounds per year to the Greater London Authority. That equates to a vast sum for the GLA precept per household—an exorbitant amount of money that my constituents simply cannot afford. London-wide policies are imposed on us, such as planning decisions and, of course, the ultra low emission zone, but we do not get the services that we are meant to receive. They are completely inadequate, with policing being the worst example.
James McMurdock (South Basildon and East Thurrock) (Reform)
The hon. Member makes a important point about ULEZ. In my constituency, there has been huge concern about the creep of ULEZ. Though denied, I understand that there have been conversations between local councils about Thurrock joining London. Does he agree that Thurrock, like his own constituency, is Essex through and through and should remain that way?
The hon. Gentleman is completely right. Havering and Thurrock are neighbouring boroughs, and we are Essex through and through. He is very lucky, because his constituency does not have London-wide policies imposed on it, so it avoids ULEZ and planning interference from the Mayor of London. It is free to make its own decisions—in fact, as a unitary authority. I commend the hon. Gentleman for what he said, and we are certainly on the same page on this issue.
We barely see policemen in Romford. They are mostly seconded into inner London areas, and this is compounded by the tri-borough arrangement that merges Havering, Barking and Dagenham, and Redbridge. We now get even fewer police on the streets of Havering.
May I commend the hon. Gentleman? In all the time I have known him, he has always been British to the core—there is absolutely no doubt about that. Although I am a supporter of devolution —many matters are devolved in Northern Ireland— I understand the complexity. Does the hon. Gentleman agree that devolution is only as useful as the people in place to carry out the job? Effective people are the key. Does he further agree that devolution must have community support and that, regardless of whether it is in Essex or Strangford, the general public must always have the final say?
The hon. Gentleman is completely right: any type of devolution has to have the consent of the people. I have to say to you, Madam Deputy Speaker, that I do not believe that the current Greater London devolution arrangement really has the consent of people in Havering. I think that if there were to be a referendum tomorrow, they would overwhelmingly vote to leave Greater London and be a unitary authority, but maybe there are other options. That is why this debate about Havering borough and Essex devolution is so pertinent today, and I look forward to the Minister’s response to my arguments.
To return to what I was saying about the police, all but one of our police stations have been closed, and my constituents are deeply unhappy with the lack of police cover we receive, despite the huge amount we contribute financially to the Greater London Authority. This is no fault of the dedicated officers who form the day-to-day, rank-and-file backbone of our local police operation. The local force is dedicated and determined to respond to and prevent instances of criminality that blight the locality, but they are undermined by a lack of the resources that we in Havering pay for, but simply do not receive. Indeed, if you speak to my constituents, they will tell you that they believe Havering residents are in effect subsidising inner London areas and, through the Greater London Authority, funding what I believe has become a London-wide bureaucracy in City Hall and associated London-wide quangos. It is hard to see how the people of Havering benefit from that, and more often than not, it has no relevance to local people in my borough whatsoever.
The reason for my Adjournment debate is to ask the Minister to please allow us to look at alternatives. Now is the time to consider Havering’s future. With devolution for what is termed Greater Essex now being implemented, this must surely be the right moment to examine a change that would give the people of Romford, Hornchurch, Upminster and Rainham hope that we could be part of something that better suits our local needs and goes with the grain of our historical identity. If the Government truly believe in genuine devolution, I hope the Minister will agree that local people should determine what is best for them, and a borough such as Havering must surely have the freedom to consider all options for our future. I request that the Government open up a meaningful conversation with the people of Havering about devolution for Essex that could include Havering, so that we can look sensibly and in detail at ideas for change.
Let me make one thing crystal clear. The freedom travel pass for pensioners is often cited as one of the benefits of being part of Greater London, as if the Mayor of London provides it to us for free, which is not the case. My borough pays millions to buy in to this scheme. It has always done so and will always continue to do so. We pay millions of pounds for the privilege, but I will always defend and support the freedom pass as our older folk deserve the benefits it gives them.
Peter Fortune (Bromley and Biggin Hill) (Con)
I commend my hon. Friend on an excellent speech. Does he agree that boroughs such as mine—Bromley—face many of the frustrations that his constituents in Havering face, and that we are also contributing huge amounts of money to the Mayor of London?
Absolutely. My hon. Friend is completely right. The people of Romford feel the same as the people of Bromley, Ruislip and other parts of outer Greater London who are disenchanted with the current settlement.
On the freedom pass, I have long argued that the scheme should be extended to all council areas where Transport for London operates. Indeed, the Elizabeth line runs to Shenfield and the Central line runs to Epping. Other TfL services operate in local authority areas that go way beyond the supremely outdated boundaries of Greater London, to the west side of London in particular, so any travel schemes like the freedom pass must surely be offered equally to all the local authorities that TfL serves. The freedom pass for older people and others should not be used as a reason never to change the structure of local government in what I call the capital region of the UK, which now stretches far beyond the Greater London boundaries of the 1960s.
May I also make it clear that I do not agree with the creation of super-unitary authorities? I believe they will prove to be very remote from towns, villages and neighbourhoods and from real people who want local democracy to be truly local, with councillors who genuinely know their wards and understand the areas they represent. If the Government are, however, set on going down this path, as they are now doing in Essex, I believe it is inevitable that boroughs in Greater London will go in the same direction at some stage, with amalgamations of councils taking place. Already, there is much discussion about this prospect, with varying proposals being put forward and openly spoken of by think-tanks, among local government officials and in London elite circles, of course.
Let me say here and now that if Havering is destined for eventual merger with east London boroughs in some new super-council configuration, that is not something my constituents or I would support. We in Havering are a town and country borough, with an Essex heritage and a special character that local people cherish and will fight to retain.
So, based on the principle the Government are already pursuing with the creation of expanded unitary authorities, I ask the Minister to please consider Havering for collaboration with, for example, our neighbouring Essex local authorities such as Brentwood or Epping Forest, both of which are also served by Transport for London and have much in common with Romford and Havering.
It has been evident for a long time that Havering is at a crossroads, and it is now becoming abundantly clear to anyone who dares to look that either we continue on a path of future London integration or we take a new path in line with our heritage, which fully realises our Essex roots, culturally, economically, and politically. I, alongside the people of Havering, strongly argue that this second path is the one we should, and indeed must, walk.
It could just be, much to the surprise of many of my constituents, that the new Labour Government’s plan for devolution and local government reorganisation provides the opportunity we need to finally take control of our own affairs and have our future restored to becoming part of Essex local government structures once again. It would be a great plus for the people of Romford if it was a Labour Government that actually delivered what they have been asking for for so long.
This is what I have been fighting for over the course of my entire political life—not as a personal preoccupation, but because it is what everyone in my constituency believes, from local families and business owners to pensioners and market traders, and indeed young people. They all tell me that is what they want: they want their identity restored to being part of Essex and having our local control away from central London and City Hall. It is high time that their voices were listened to and this opportunity was seized to shape Havering and Essex for the better.
I believe that today we have a once-in-almost-a-century chance to look afresh at the old boundaries of Greater London that were constructed six decades ago. The entire region around our great United Kingdom capital of London has changed dramatically since those days, and we should therefore seize this moment to be bold and look at options for change that local people would be happy to see, thus giving my constituents in Romford, Hornchurch and across the Borough of Havering hope for a much better structure of local government, rightly determined and supported by the people it is established to serve.
(11 months, 2 weeks ago)
Commons Chamber
Michael Payne
My hon. Friend is a good friend and a powerful advocate for his constituents. He is right that devolution in the east midlands needs to go further and faster, because areas such as Greater Manchester and the west midlands are much further ahead on their journey. Giving the East Midlands mayoral authority trailblazer status would see a turbocharged approach to skills, investment and growth in our area. Giving Mayor Claire Ward an integrated funding settlement across local growth, place, transport, skills, housing and more to work with local authorities such as mine in Gedling would really get our economy moving. That approach has been proven elsewhere.
We should not need to wait any longer in the east midlands for power over our own future, but mayors and combined authorities are only one part of local government across the east midlands. Borough, county and unitary councils often do the overlooked, often-ignored hard yards that provide growth in our communities. The Government recognise that to grow the economy, they must work hand in hand with business, but they also have to work hand in hand with local government. Public services are essential for social and economic security. Vital services such as education, housing, healthcare and transport contribute to the economic productivity of the region, and local authorities provide the best investment in local areas.
The Local Government Association found that councils in the east midlands contribute directly to 20% of local GDP through projects that promote business growth, job creation and regional investment. Local authorities are key enablers for the Government’s promises around transport, housing, skills and growth. The Government are rightly reforming the planning system to allow council planners to do their job, but every single one of the 1.5 million houses built under this Government will have been approved by a council planner. Local authority workers will be instrumental in the roll-out of free breakfast clubs across schools. We have seen the impact on growth and economic confidence if simple things such as our bin collections go wrong.
Our local government workers keep our communities and this country ticking. They are all heroes. My plea to the Government is simple: do not ignore local government, local government finances or local government staff, and continue to invest in those areas.
I commend the hon. Member for what he is saying. The east midlands are a vital region of our country, but I caution him slightly about wanting a regional mayor to take power upwards. In Greater London, our experience is that power in local authorities is actually better. We want local money spent on local people’s priorities. With a regional mayor, the hon. Gentleman may find that the money is not spent on the priorities he hopes for, but that it goes up to one bureaucracy and the priorities of local people are often ignored. That is our experience in the London borough of Havering.
Michael Payne
I thank the hon. Member for sharing his view with me, but I must say that it is not a view we share in the east midlands. We have a partnership approach with our Labour Mayor of the East Midlands, Claire Ward, working with brilliant local Labour councils. I would have a slight degree of sympathy for him if he had not been coming here for the last 14 years and voting for cuts to local councils in the east midlands, taking 60p out of every £1 of their budgets.
Ultimately, where we have good, soundly managed local authorities, with boundaries that local people understand and prefer, such as in my borough of Gedling, do we really want local authority staff to be focused on a multi-year reorganisation process, or do we want them to be getting on with the job and growing their local economies? The Government have rightly pointed out that certainty is essential to economic growth, so may I be so bold as to suggest that certainty in local government—whether it is a planner knowing that they have a job in the future or a local authority knowing that it will exist in two years’ time—is also essential? My constituents have told me loud and clear that they do not want to see a change to their local council. It is important to me that my constituents’ voices are heard and listened to in this Chamber, including in this debate. I share their pride in having a well-run local council in Gedling borough council, with low council tax, low levels of debt and decent, delivered public services, and I will argue for that to the hilt.
It would be remiss of me to speak in this debate without highlighting some local examples of how things can go terribly wrong, and how they affect my constituents. Conservative-controlled Nottinghamshire county council might be the worst council in the country for road repairs. Over 25% of Nottinghamshire’s minor roads required repairs last year, yet Nottinghamshire county council only got around to repairing 2.3% of them. Out of every 10 potholes, Conservatives in Nottinghamshire managed to fix less than one. If we need drivers for any future moon landing, the residents of Nottinghamshire may well volunteer to be first; with the number of craters that we have to dodge on our local roads just to get about our daily lives, everyone in Nottinghamshire is an expert in dodging potholes. Navigating the pothole-ridden roads of Nottinghamshire has gone beyond a joke. It is a daily misery for the people of Gedling, who I serve, but it also impacts our economy.
(11 months, 3 weeks ago)
Westminster HallWestminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
It is a pleasure to serve under your chairmanship, Ms Lewell. I thank the hon. Member for Leyton and Wanstead (Mr Bailey) for rightly raising this issue for debate. I am grateful to him, as I am sure we all are.
I endorse the comments of pretty much all Members who have spoken, but especially my hon. Friend the Member for Hornchurch and Upminster (Julia Lopez)—we share the borough of Havering. Members have highlighted what we all know: the local government funding system is fundamentally broken. No matter what borough we come from, the current system simply is not working. We are all suffering local services that are inadequate. Funding is not there for things that are essential, and we are seeing money spent on things in local government that I believe are wasted.
Particularly in Havering, as well as in Bromley and in Hillingdon, which is represented by my hon. Friend the Member for Ruislip, Northwood and Pinner (David Simmonds), we also say that our boroughs are spending a lot of money to fund the Greater London Authority, and most of that seems to be spent in inner-London areas. Outer-London areas are funding inner London. We have been doing that for many decades, not just since the Greater London Authority and the mayor were created, but under both Governments.
I would like to depoliticise this issue a bit. We can blame each other—[Hon. Members: “Ah!”] We can blame each other, but the last Government did not deal with it, and I hope this Government will attempt to deal with it. Without fundamental change, the problem will go on and on. What we need is less, but more effective, government. We need spending on the right things. We need to give control back to our local areas and to have less control by central Government and the Greater London Authority.
I will not repeat all the arguments made by my hon. Friend the Member for Hornchurch and Upminster, because all the points she made were absolutely correct, but Havering has particularly suffered from underfunding and an unfair funding formula for many decades—in fact, all the way back to when the London boroughs were created in the 1960s. When the London boroughs were created, the outer-London areas, which were considered to be wealthier, were effectively putting money into the centre, and they did so for many decades. As hon. Members have said, that has changed. As the hon. Member for Leyton and Wanstead said, outer-London areas have altered and the demographics have changed. But the funding formula remains the same.
We need to completely change how we deal with this issue. Fiddling around with the figures at the edges will not solve it; we need root-and-branch reform of how local government operates in the Greater London area. We need more flexibility in areas such as Havering, which are not really in London—we orbit London, but we are far more linked to Essex areas than we are to inner London—and fundamental reform of the whole system.
Outer London has always been poorly funded and unfairly treated. In Havering, which has a large older population and a large younger population, and changing demographics, we particularly need more support. I hope the Minister will pledge that support, because all our constituents need change.
Rachel Blake (Cities of London and Westminster) (Lab/Co-op)
It is an honour to serve under your chairship, Ms Lewell. I thank my hon. Friend the Member for Leyton and Wanstead (Mr Bailey) for securing this important debate. I also thank our friends and colleagues from the London local government family who are here listening to the debate. Their tireless work, day in, day out, is not unappreciated, and we are really happy to see them here today.
It has been good to listen to the cross-party support for the debate, but I was a little disappointed not to hear a bit more reflection from Opposition Members on how we got here, despite our having much shared experience as local representatives. That includes the slashing of housing investment by the previous Conservative Government and the slashing of genuinely affordable homes by the previous Conservative mayor—where is he now? Let us not forget the failed fair funding review that the hon. Member for Bromley and Biggin Hill (Peter Fortune) referenced, which hung over local government for years and prevented meaningful planning.
In the last 14 years, we have seen an 173% increase in rough sleeping and a 69% increase in temporary accommodation —that is shameful—as well as rising rents and falling investment. Let us not forget that the cause lies firmly with the Conservatives. The hon. Member for Bromley and Biggin Hill tempts me to remind us what happened in 1997. Labour halved temporary accommodation, made record investment in the condition of homes through the decent homes programme, and introduced the historic 2008-11 programme of new, genuinely affordable homes, which benefits many families now.
Rachel Blake
No.
Let us come to the matter at hand. I would like to talk about temporary accommodation costs, special educational needs and the specific challenges of managing the visitor economy in the very centre of London.
Luke Taylor (Sutton and Cheam) (LD)
It is a pleasure to serve under your benevolent gaze, Ms Lewell. I thank the hon. Member for Leyton and Wanstead (Mr Bailey) for securing this important debate, and I point to my entry in the Register of Members’ Financial Interests, which shows that I still proudly serve as a councillor in my constituency in Sutton borough.
London faces a crisis in council funding unparalleled in living memory. We have a funding system that has been starved for years under previous Conservative Governments. As a result, our councils are now struggling to meet the growing demands of the communities they serve. This is not an exaggeration—this is an emergency. Since the onset of austerity in 2010, per capita Government funding has been reduced by more than a fifth, with boroughs now receiving 28% less funding per resident. Meanwhile, London’s population has skyrocketed, increasing by over 900,000 in the past 15 years. The city’s councils are crying out for a long-term funding solution.
Local government provides critical frontline services to our society. It is where people turn for help to meet their daily needs, and it is how communities are supported. Let us be clear: many councils that put in considerable effort to balance the books are not at fault here; they are simply not given enough financial support in the first place as statutory demands rise. It makes a mockery of our conversations about policy here in Westminster when people’s bins go uncollected and children are left waiting for their EHCPs. Our attention should be focused on helping local government, which is at the frontline of the state, to deliver the basics.
Outer London boroughs like Sutton, Kingston and Richmond are getting a raw deal on Government funding—in fact, some of the worst in the country. We see that in police abstractions and we see it in financial council funding.
The hon. Member mentions that the people of Sutton are getting a raw deal, and I am quite sure that they are. Does he think that the people of Sutton are getting good value for money from the precept we are paying to the Mayor and the Greater London Authority, or would he like some of that money put back into the local communities that he serves?
Luke Taylor
I thank the hon. Member for his intervention. Sutton has one of the lowest spends per resident by Transport for London of any of the London boroughs. We have no tubes, no overground, and half a tram stop in the very northernmost part of the borough, which shows how poorly we are served by TfL infrastructure, so I agree with the hon. Member’s point.
Outer London is being left behind, with some of the lowest support per capita. Our broken system means that inner London continues to be prioritised, despite the shifting needs across the city. There is a growing mismatch between funding allocations and local need, worsened by a funding formula that has not been updated since 2013. The data on which those allocations are based—population demographics and deprivation levels—are outdated and no longer reflect the reality on the ground. Research from the IFS in 2022 found a 17% gap between funding need and actual funding across London, the largest gap of any region in England. There is a temptation among many—we have all heard it—to paint London as a city where the streets are paved with gold and the challenges of poverty are less intense, which is nonsense. London has the second highest poverty rate in the country, second only to the west midlands. It has infrastructure problems, growing homelessness and millions of people suffering with the ever-rising cost of living, which is particularly pronounced in the context of London’s overheated property market.
The problem is diffuse, not concentrated in inner London. Indeed, poverty is shifting across London in ways we have not seen before, as working patterns change and jobs and industries ebb and flow. The outdated funding model forces outer London boroughs to tackle what are often characterised as inner London problems with far less support. The Minister must reassess the funding formula to ensure a fairer deal for boroughs like Sutton.
It is time to recognise the significant demographic and social changes that have taken place in London over the last 12 years. The homelessness crisis is an example of how poverty is shifting across London in unprecedented ways. Homelessness in my home borough of Sutton increased by 51% between 2018 and 2023. London is at the epicentre of the UK’s homelessness disaster, with the highest levels in the country. London Councils estimates that one in 50 Londoners are currently homeless and living in temporary accommodation. In Sutton every night 1,200 families are housed at the cost of the council. Nearly 90,000 children in the capital are homeless. That is one in every 21 children in London—at least one homeless child in every classroom.
As the Liberal Democrat MP for Sutton and Cheam, I am proud to live in a borough that is committed to housing the homeless where we can, but for the sake of such boroughs that hold that commitment it is essential that we address the gaps in support and provide long-term solutions to end homelessness for good. The financial strain currently put on councils to fight the crisis is utterly unsustainable. Boroughs are spending £4 million every single day on temporary accommodation, and those costs have shot up by 68% in just one year. If such trends continue, homelessness will bankrupt our boroughs and plunge our city back into the dark days of Victorian poverty and inequality. Municipal government will wither away and the fingertips of the state will succumb to financial frostbite, meaning we will no longer be able to reach out and rescue families from homelessness and communities from disintegration. Our city will be a plaything of the rich and famous—no longer a home, but a cold shell. Let us be under no illusion: that is what is at stake.
We are already seeing councils needing exceptional financial support just to survive. The housing revenue account is under unprecedented pressure, and with cuts to resources, capped social rents, rising inflation and ageing housing stock, London boroughs are being forced to cut £260 million over the next four years, making it harder to build new homes or to maintain the ones we already have. So we on the Liberal Democrat Benches urge the Government to urgently publish a cross-Whitehall plan to end all forms of homelessness and exempt groups of homeless people and those at risk of homelessness from the shared accommodation rate; ring-fence emergency funding for local councils for permanent accommodation of rough sleepers; increase the local housing allowance rates in line with inflation; and ensure sufficient financial resources for local authorities to deliver the Homelessness Reduction Act 2017. If we do not, I fear the consequences for the future liveability of our city will be existential.
(1 year, 1 month ago)
Commons ChamberI take my hon. Friend’s points entirely. I credit him for much of the work that was done when he chaired the Select Committee, which he did for a long time, and I attribute to his intervention the credibility that it is due. We are focusing today on our immediate fiscal response to support councils over the current financial year, but we accept that to bring about long-term structural reform, such matters as addressing a council’s ability to raise local tax through business rates and council tax must be taken into account, alongside, of course, the cost of delivering public services, including the cost of rural service delivery. We are absolutely committed to taking all those factors into account.
I will make some progress, but I will take more interventions later.
Councils know that the current system is riddled with inefficiency and is poorly targeted at meeting need. It is vital that we get this right, and we want to hear from all parts of the sector to better understand the drivers of need, including deprivation, the ability to raise tax locally and the impact on service delivery in rural areas. The consultation on these reforms runs until 12 February, and we welcome representations from all who have a stake in this agenda. We are listening to the sector and, through this settlement, responding to the real drivers of cost, especially the spiralling demand in areas such as social care. Importantly, we are taking into account the ability of councils to raise funding locally.
What does the Minister say to residents of the London borough of Havering, who have had a very poor settlement over many decades under all Governments? We have one of the oldest populations in London and also one of the youngest populations in London, so the settlements never take into account the factors that I have outlined. Will he please look at the outer London boroughs? It seems to me that all the money goes to inner London, and we do not get very much in places such as Romford.
Where we can agree is that we accept that the old perspective that there are inner-London pressures that do not feature in the outer-London boroughs might have held in the past but it does not address the complexity that there is today, because a number of pressures have moved outwards into those outer boroughs. I think that that is accepted and appreciated. I said that this might not be a perfect settlement, but it is a good settlement. The hon. Gentleman’s council has a 6.5% increase in its core spending power. So there is room there—this is not a flat cash settlement—and we hope that the local authority will make the necessary decisions.
We are not interested in scoring party political points or pitting one council against another. We know that councils of all political stripes are struggling, and we want to work together, through the later reforms that we are looking at as part of the more structural review we are undertaking, to make sure that we genuinely address that. We hope that when Members across the House look at the rationale and the evidence base—whether they agree with the quantum is a separate issue—they can at least say that it holds. That is the work that we are undertaking today, and we encourage Members to contribute to the process.
(1 year, 5 months ago)
Commons ChamberI congratulate all Members who have given their maiden speeches today, and the Minister for Housing and Planning, my hon. Friend the Member for Greenwich and Woolwich (Matthew Pennycook), for all his hard work on this Bill.
If I am honest, I am disappointed that the shadow Secretary of State, the right hon. Member for North West Essex (Mrs Badenoch), is not still with us—looking at the faces of Conservative Members, she appears to be unexpectedly busy—because she seemed to argue that the challenge that the Government are creating is to intervene poorly in a market. In the limited time available to me, I want to take on the challenge that she created, because I am not sure that she actually understands what this market is. That may well show in Conservative members’ voting if they think they are voting for somebody who understand market economics.
Let us look at what we are talking about. In my constituency, we have had the biggest growth in affordable housing in London, yet we have also had a 55% increase in homelessness. This is not a healthy market where there is effective competition, and where every participant has the tools to operate equally. Let me try to explain through some of the stories from my constituency. My constituent Kate, who works in the NHS on a nurse’s salary, has had to move every single year, because landlords are selling properties and putting up prices. That is not healthy—it is an overheated market. It means that the state picks up the pieces, through the salaries we need to pay and to deal with the consequences for her and her family.
My constituent Claire, who is self-employed, started renting her home for £1,750 a month in November 2019, and it had increased by £200 by 2023. She has now been threatened with another £400 a month raise, putting her total rent up to £2,350 for the same property within five years. What powers do my constituents have in that market, apart from to exit? That is not a healthy, functioning market.
We are seeing mould in properties, so the quality of goods in this market is not good enough. Emily, a mum from Walthamstow, was scrubbing mould from the walls of her three-month-old son’s room every single day. She eventually walked out because she found mould on the underside of her son’s cot mattress. But she was afraid to complain because she was afraid of section 21 eviction powers, so she does not even have the voice of exiting the market. Albert Hirschman would be horrified. We have to end the scandal of no-fault evictions, and we have to deal with the mould.
The hon. Lady is making some excellent and valid points, but does she agree that the London borough of Waltham Forest should ensure that its residents who are homeless—our heart goes out to those people—are cared for and looked after in Waltham Forest? At the moment, her borough council is sending her homeless constituents to the London borough of Havering. They are living in Harefield Manor in Romford. Surely Waltham Forest should look after its homeless people in its own borough.
I know that the Conservative party is about to go down a rabbit hole about immigration, but honestly, moving people from Walthamstow to the hon. Gentleman’s constituency is not the challenge here. We have a broken rental market where the rights of renters do not allow them to compete fairly.
Let me give the hon. Gentleman another example so that I can explain the problem. The reason we need to tackle bidding wars is that there is a straight-out conflict of interest affecting the consumer. How can the person who represents them to the landlord also represent them fairly in a rental agreement? It is little wonder that Catherine, one of my constituents, found that she had to offer £300 over the asking price to secure a flat in a bidding auction. That is why people from Walthamstow are being moved out, and the hon. Gentleman would do well to think about sorting that market out, rather than trying to build a blockade on the A406.
Discrimination against single parents is widespread in the market, by definition because of what happens when households need to rent property. Ruth, in my constituency, is a single mum with two young children. She was told by agents, “Don’t even bother applying.” She could pay the rent and she was entitled to housing, but she was not even entitled to compete in this market.
In the final minute I have, I want to make a plea to the Minister about the credit rating of those in our private rented sector. It is not true that renting in the private sector automatically damages someone’s ability to get a mortgage, but if they are having to move time and again, their credit rating clock goes back to the start because lenders look at their addresses, they have to re-register for all their utility bills and they have to keep building up their good record. That gets taken into account by some lenders. People are finding that this affects other forms of credit, including the credit cards that many of them are using to pay their bills. In my constituency, the average percentage of people’s income spent on rent is 44%. If they have kids and are trying to pay for childcare, it does not take a rocket scientist or Ayn Rand to realise that this market is not working for them.
I believe we could do more if we came up with a good credit score passport to help those constituents of mine and others, who are paying their bills but who have been evicted through no fault of their own, not to lose their precious good credit rating. I hope the Minister will be willing to listen to some ideas about how we can do that with the companies.
Thank goodness for this legislation. It is long overdue, because tackling unfair markets is absolutely what good co-operators like myself and good people who care about social justice wish to do, and I shall vote wholeheartedly for it as a result.
Jayne Kirkham (Truro and Falmouth) (Lab/Co-op)
Recent statistics show that 50% of the private rented sector in Cornwall does not meet the decent homes standard, way above the average of 21%. Less than 20% of homes in Cornwall were in the private rented sector four years ago, yet a quarter of our children and young people were living in those homes, including a third of our under-fives.
That has been evidenced by the noticeable uptick in recent years of section 21 evictions that affect families with young children. Cornwall now has more than 800 households in emergency or temporary accommodation, and many of them are young families who have struggled to find somewhere else to live because of the cost, their children or even their cats. Because of our geographical spread, many of those families have ended up in holiday parks, caravan sites or hotels up to an hour and a half’s drive from home. With poor rural transport links, this often leaves families completely cut off from jobs, schools and support networks.
In September 2020, Cornwall council’s economic growth committee published an inquiry into the private rented sector in Cornwall and recommended a number of measures to extend licensing powers. It also recommended data gathering on landlords and tenants in the private rented sector, Disclosure and Barring Service checks, longer terms and the limiting of annual rent increases. However, covid happened, further local government cuts affected officers’ capacity and the council changed to a Conservative administration that was wary of upsetting landlords following covid, so none of the recommendations was enacted.
Regardless of the council’s caution, the private rented sector has still been decimated in Cornwall, with many landlords selling up or flipping to lucrative short-term holiday lets. Prices have skyrocketed, and many people are struggling to find a home, which is why I am so pleased and relieved that the Government have prioritised this Bill. It will bring in many of the measures proposed by that Cornish report—at last, we will end no-fault evictions, introduce longer protected terms and limit annual rent rises. Awaab’s law will force landlords to follow strict timescales to inspect and repair homes, including those with damp and mould, and the decent homes standard will apply to the private rented sector for the first time, with local councils given the power to fine landlords who fail to address serious hazards.
Many people are shut out of the market if they have children or pets, or are on benefits. Changes to stop that happening will prevent the most vulnerable in my constituency remaining unhoused, and the heartache as people have to decide to give up treasured pets.
The hon. Lady is making some compelling points and mention pets. Does she remember the Dogs and Domestic Animals (Accommodation and Protection) Bill of 2020, which I put to the House all those years ago? I am glad that the measures in that Bill now being brought into legislation. Does she agree that this Bill needs to be extended further, so those in social housing, as well as those in freehold accommodation, can have a pet, so everyone can have a pet at home, and not lose their home because they love and care about their cherished animal?
Jayne Kirkham
I was not here when the hon. Gentleman introduced his previous Bill, but I am sure the Minister has considered the importance of pets to people living in all types of housing.
The court system and local authorities will need extra capacity to deal with the extra work created by the legislation. I was pleased to hear the announcements about digitisation and the ombudsman. The proposed changes will support the security of privately renting families in Truro, Falmouth and across Cornwall. As I have said, many people in Cornwall have been evicted from their rented homes with two months’ notice, so they can be used as short-term or holiday lets. We know that Cornwall council is the local authority with the largest supply of short-term lets outside London.
There are 24,300 holiday let properties in Cornwall, up 30% on 2019. Statistics from the council tax base tell us that over 13,000 second homes are registered in Cornwall, which is nearly 5% of the total housing stock and five times higher than the average across England. There are also 27,000 families on the waiting list for social housing, but Cornwall has only 10,000 council houses and 22,000 housing association homes.
I am pleased that the Minister is considering a toolbox of measures that could be made available to local authorities to discourage the further depletion of the private rented sector and full-time residential housing in Cornwall, such as the higher council tax that is coming in, licensing and registration, planning restrictions and closing the business rates council tax loophole.
In conclusion, I very much welcome the Bill. It provides many benefits for the people in Truro and Falmouth who rely on the private rented sector for their home, and certainty for the landlords who provide those homes.
(1 year, 6 months ago)
Commons ChamberAs I was saying, the Government are committed to ensuring that development both protects and provides for green space. I am more than happy to discuss the particular challenges that my hon. Friend faces in her part of the country.
As the Deputy Prime Minister should be aware, people in Romford are very angry that Mayor Khan is forcing us to build high-rise blocks. Does she agree that the London borough of Havering, despite being part of Greater London, is Essex, and that we should remain a town and country borough?
As a Mancunian, I do not think I am in any place to tell Londoners what is in Essex and what is not.