Kew Gardens (Leases) (No. 3) Bill [HL]

Baroness Jones of Whitchurch Excerpts

2nd reading (Hansard): House of Lords
Tuesday 7th May 2019 Lords Chamber

[Baroness Jones of Whitchurch (Lab)]

My Lords, I thank the Minister for setting out the purpose of this small but significant Bill so clearly. While I do not have any interests to declare, and I certainly cannot claim to have any family connections on the scale of my noble friend Lord Whitty, I have a particular interest in Kew’s future well-being, as I held my wedding reception there many moons ago, and a lovely event it was too.

We on these Benches support the Bill. We accept the argument that long leases would make the properties on the Kew Gardens estate more commercially attractive, and we understand the imperative to generate more income to support Kew’s world-class scientific research and historic landscape and buildings, of which people are quite rightly very proud, as we have heard from around the Chamber today. Its status as a UNESCO world heritage site is richly deserved and must be consolidated at all costs. However, it is important that, during the progress of the Bill, we can be reassured that the powers to extend leases and to encourage greater commercial investments and partnerships will be carried out with extreme sensitivity and care. It is absolutely vital that the core ethos and the inspiration of the gardens are not overshadowed by commercial exploitation, particularly one that in the future might become controversial. As noble Lords have said, the Bill gives the Secretary of State considerable powers to expand the commercial activities across the estate. We have talked about the Bill being short, but in those two short clauses there are considerable powers for the Secretary of State and, within that, concerns have quite rightly been addressed.

When we met with the Minister and the representatives of Kew before this debate—I thank him for arranging that—it was explained that the initial objectives would be to extend the leases on the seven residential properties on the border of the gardens overlooking Kew Green. As we have heard from the noble Baroness, Lady Bakewell, the revised estimate of the extra resources from doing so is around £15 million, although earlier documents quoted the figure of £40 million, so it would be helpful if the Minister could clarify the current estimates for the additional income envisaged.

In addition to those seven properties, there are another 40 or more buildings on the site, and we need to be clear about the longer-term impact of releasing some of those properties. I agree with the noble Lord, Lord Carrington, that detail about the property portfolio and the potential longer-term implications for finance would be useful. Perhaps the Minister could take that matter away.

I do not suggest that the Palm House or the Temperate House would be used commercially, but other, less fundamental, less core buildings might be ripe for income generation in future, and it is important that we look ahead and have a sense of what the future challenges and opportunities from other buildings on the site might be. Can the Minister confirm that longer leases are being considered for other properties on the estate in future? Does he recognise that, as the Bill is framed, it would give the relevant Minister power to allow that?

The Explanatory Notes state that:

“Incomes from the change will depend on further development of Kew’s Estates Strategy and third party partnerships”.


Is the estates strategy a document in the public domain because, if it is, it would be useful to have a copy? What type of third-party partnerships are envisaged? It would be helpful to your Lordships to have further detail of what is meant by that phrase.

Does part of the strategy include attracting more foreign investors? For example, Kew has previously accepted money from the Sackler family for the Sackler bridge. Is it now the policy no longer to accept money from the family, in line with the policy adopted by the Tate and others, and might that have a further adverse impact on foreign income? Any clarification the Minister can give on that would be welcome.

We know that many of these decisions are not made lightly but are driven by the necessity to balance the books, so difficult choices are forced on the trustees and others. My guess is that the trustees would not be coming forward with this suggestion if they did not feel acutely the need to generate income forced on them by cuts in other areas. I have no doubt that the proposals are driven by financial necessity, in part forced on Kew by cuts in grants from Defra.

In 1983, 90% of Kew’s funding came from the Government but, as we have heard, in 2018 its income will be £111 million, of which only £40 million will be grant in aid from Defra, which is less than 37%. Kew has done great work in making up that shortfall by visitor income—we have heard about some of the implications of increasing visitor prices—commercial activities and other charitable giving, including some large philanthropic donations. Nevertheless, as my noble friend Lady Warwick pointed out, over the years, there have been a number of reports about financial concerns about Kew, forcing it to make difficult choices about job cuts and where maintenance, repair and other investment is made. As we heard, in 2015 a House of Commons Science and Technology Select Committee warned that cuts in government funding were placing Kew’s world-class scientific status at risk.

As several noble Lords have stressed, we need to be assured that the Bill will not be used by the Government to further cut the grant to Kew if its income from other sources increases as a result of the lease extensions. I agree with my noble friend Lord Whitty that the purpose of any income from the extensions should be solely to provide investment in projects compatible with Kew’s core objectives and enhance Kew’s status as a UNESCO world heritage site. Can the Minister confirm that this will be the case? Can he guarantee that the Government will not use the Bill as an excuse to shift further the burden of cost on to Kew rather than the Treasury? Can he clarify in more detail the precise powers of all those involved in the oversight of any redevelopment proposals on the site? Apart from the Kew trustees, Defra and the local planning departments, might other organisations, such as English Heritage, be consulted? Would UNESCO have a role in overseeing any changes in use, given that they might have an impact on Kew’s world heritage status? Can the Minister clarify whether any covenants on the land to be redeveloped might be a barrier to remedial work taking place?

Finally, and specifically, I understand that five of the seven properties already identified for extended leases are currently let. Have the tenants been consulted about these proposals? Is it expected that their rents will increase immediately after the property leases are extended? Although the Bill allows for leases of up to 150 years, is it envisaged that leases of variable lengths might be established? For example, will there be break clauses? Most importantly, what will the content of the leases be and what steps can be taken to remove leaseholders whose activities are no longer in keeping with the environmental principles that underpin Kew’s ethos? In future, a catering outlet may have a lease but may no longer produce food in keeping with the ethos promoted by Kew in other areas—for example, regarding biosecurity and the encouragement of plant development; there are other examples of that. We may provide a lease in good faith but then find that the leaseholder’s ethos and our ethos go off in separate directions. I am keen to know how that would be handled once the leases have been agreed. I look forward to the Minister’s response on these issues and to pursuing them with other noble Lords in the Bill’s stages to come.