Building Safety (Responsible Actors Scheme and Prohibitions) Regulations 2023

Baroness Scott of Bybrook Excerpts

Monday 26th June 2023 Lords Chamber

Moved by

[Baroness Scott of Bybrook]

That the draft Regulations laid before the House on 25 April and 10 May be approved.

Relevant document: 38th Report from the Secondary Legislation Scrutiny Committee. Special attention drawn to the first instrument by the Joint Committee on Statutory Instruments. Considered in Grand Committee on 20 June.

Motions agreed.

Holocaust Memorial

Baroness Scott of Bybrook Excerpts

Thursday 22nd June 2023 Lords Chamber

[Lord Lee of Trafford]

To ask His Majesty’s Government what plans they have to reconsider the decision to site the Holocaust Memorial in Victoria Tower Gardens.

[The Parliamentary Under-Secretary of State, Department for Levelling Up, Housing & Communities (Baroness Scott of Bybrook) (Con)]

My Lords, I will take a minute to send my thoughts to the family of Sir Ben Helfgott. Sir Ben was a Holocaust survivor and an Olympic weightlifting champion. He was also a tireless campaigner for Holocaust education and a huge supporter of the Holocaust memorial and learning centre. I send my thoughts to his family; may he rest in peace.

[Noble Lords]

Hear, hear.

[Baroness Scott of Bybrook (Con)]

The Government remain determined to build a Holocaust memorial in Victoria Tower Gardens so that the memory and lessons of the Holocaust remain prominent in British life. The Holocaust Memorial Bill currently before Parliament is intended to remove a statutory obstacle and enable progress towards construction. Victoria Tower Gardens is a site that is uniquely capable of meeting the Government’s aspirations for a national Holocaust memorial.

[Lord Lee of Trafford (LD)]

My Lords, it is very sad that a memorial to such an appalling crime against humanity should controversially be rammed through against the views of the Royal Parks, Westminster City Council, local residents and so many others. Apart from all the original and obvious objections to the Victoria Tower Gardens site, there are two new factors. First, we now face a major restoration project to the Victoria Tower itself. The scaffolding alone is going to take a year to erect. Imagine the scale of a chaotic construction site with that project, the proposed memorial and, of course, R&R to come.

Secondly, the unfortunate closure of the Jewish Museum London in Camden provides a great opportunity for a new combined museum and Holocaust memorial—a concept supported by Simon Schama, the former Archbishop of Canterbury, Rabbi Jonathan Romain and many others—on a much more appropriate site. So I implore the Government—

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[Lord Lee of Trafford (LD)]

I implore the Government to think again and preserve and protect our very precious green space.

[Baroness Scott of Bybrook (Con)]

My Lords, the memorial is a manifesto commitment which has cross-party support and has been endorsed by all living Prime Ministers. The Chief Rabbi, who sits on the UK Holocaust Memorial Foundation comittee, is fully behind the Government’s proposals, as are leading representatives of the Jewish community, other faith and community leaders, survivors, refugees and the wider public. Their voices were heard at the planning inquiry, emphasising the importance of the memorial and learning centre as a way of providing Holocaust victims and the remaining survivors the prominence in this city that they deserve.

[Baroness Deech (CB)]

My Lords—

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[Baroness Deech (CB)]

My Lords, I declare an interest as honorary president of the National Jewish Assembly. I support the noble Lord, Lord Lee, in drawing attention to the almost total lack of consultation on the memorial. All efforts to open dialogue and to have discussions and round tables have been met with silence, and sometimes abuse. Victoria Tower Gardens is a green enclave, and the dangers of digging down two storeys with piledrivers, which could cause unimaginable damage, have not been taken on board when there are decent alternative sites with as much dignity and more space. I speak for a number of Holocaust survivors in this.

[Baroness Scott of Bybrook (Con)]

I know how strongly the noble Baroness feels about this issue, and I respect everything she has to say. We have had meetings and we are willing to have more; she only has to get in touch with me. However, the planning inquiry in October 2022 enabled all interested parties to express their views on the proposed Holocaust memorial and learning centre, and a full list of witnesses is available in the planning inspector’s report on GOV.UK. Officials regularly meet organisations representing survivors of the Holocaust and Nazi persecution and those representing the survivors of subsequent genocides to discuss the latest developments, and we will continue to do so.

[Lord Pickles (Con)]

My Lords, I draw attention to my register of interests, particularly those relating to Holocaust remembrance. I join my noble friend in her tribute to Sir Ben Helfgott. He was, beside other things, a leading light in Holocaust remembrance and a strong advocate of the site in Victoria Tower Gardens. In fact, the last conversation I had with Ben was about his concerns that the Government and Opposition might not fulfil their promise. Does my noble friend agree with me that the announcement made by the Leader of the House in another place that there will be a Second Reading next Wednesday is very welcome? The time for talking is over; it is time for action.

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[Baroness Scott of Bybrook (Con)]

I agree with my noble friend. I look forward to the Second Reading and the Bill beginning to go through Parliament and, subsequently, to the building of this important monument.

[Baroness Hayman of Ullock (Lab)]

These Benches share the sentiments and the tribute made by the Minister to Sir Ben. If it is built in Victoria Tower Gardens, the memorial will clearly bring many new visitors to Westminster and to Parliament, which I think is a good thing. However, local residents will want to have a park that they can still be proud of and use for their own recreation. How will the Government ensure that the park is still available for local people to enjoy?

[Baroness Scott of Bybrook (Con)]

The design is sensitive to the heritage and the existing uses of Victoria Tower Gardens; I think it has been misunderstood. The design uses approximately 7.5% of the area of Victoria Tower Gardens, and this project will allow enhancements to be made to the remaining 92.5% of the park. In my opinion, that will help visitors to enjoy the park better, even if they are not attending the memorial.

[Lord Clement-Jones (LD)]

My Lords, I very much share the views of my noble friend Lord Lee and the noble Baroness, Lady Deech, on this out-of-scale proposal, especially in relation to the Buxton anti-slavery memorial. Throughout the process, the Government have refused to publish their assessment of any alternative sites, including some which appear to be eminently suitable, such as the Imperial War Museum—why? Will they do so during the consideration of the Bill?

[Baroness Scott of Bybrook (Con)]

My Lords, all that work was done many years ago, in the early days of this project. We believe that the development will not in any way compromise the Buxton memorial. The design of the Holocaust memorial means that the Buxton memorial will be kept in its current position, with its views preserved. In addition, new landscaping and seating will actually improve the setting of that memorial and the viewing experience from it. The Holocaust memorial will be no higher than the top of the Buxton memorial, and the memorial’s bronze fins will step down progressively to the east in visual deference to the Buxton memorial.

[Lord Austin of Dudley (Non-Afl)]

My Lords, there is no more appropriate location for a memorial that shows what can go wrong when politics is infected by extremism, racism and hatred than here in Westminster, at the centre of our politics. That is the whole point. We have heard all sorts of red herrings about this memorial. It will take up less than 10% of the area of the park, and it is at the opposite end of the park to the Palace of Westminster so will have no impact on the work that is to be done here. I take this opportunity to urge the Minister to do everything she possibly can to speed up progress so that Holocaust survivors like Sir Ben, who tragically will not get to see it completed, can be guests of honour at the opening.

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[Baroness Scott of Bybrook (Con)]

I thank the noble Lord for his support of this important project. As he said, Victoria Tower Gardens is the most fitting site in terms of the historical, emotional and political significance and its ability to offer the greatest potential impact and visibility for the project. The view of Parliament from the memorial will serve as a permanent reminder that political decisions have far-reaching consequences.

Domestic Abuse Refuge Spaces

Baroness Scott of Bybrook Excerpts

Wednesday 21st June 2023 Lords Chamber

[Baroness Thornton]

To ask His Majesty’s Government what assessment they have made of the availability of refuge spaces for domestic abuse survivors.

[The Parliamentary Under-Secretary of State, Department for Levelling Up, Housing & Communities (Baroness Scott of Bybrook) (Con)]

My Lords, under this Government, the number of bed spaces has risen. There were 4,344 refuge spaces across England in May 2022, which are the latest figures we have. We are committed to ensuring that victims have access to the support they need within domestic abuse safe accommodation, including refuges. Councils in England have a new duty to provide support within safe accommodation to victims under the Domestic Abuse Act 2021, and 36,545 victims received support within safe accommodation in the first year of this duty.

[Baroness Thornton (Lab)]

I thank the Minister for that Answer. As she will understand from her support of and commitment to this issue, it takes huge courage and great risk for a woman to flee domestic violence. Unfortunately, when they have no place to go, those courageous women are left to make a horrific decision between returning home and becoming homeless. I therefore ask the Minister whether the Government have any plans to increase support at a local level to provide the housing promised under the Domestic Abuse Act 2021, which she mentioned and which we all supported. The research that prompted this Question says that there are thousands of women who have to choose between those two brutal situations.

[Baroness Scott of Bybrook (Con)]

The noble Baroness brings up a really serious point. It is essential that the number of women who are turned away goes down. We have provided local authorities with funding and support to commission services to meet the needs of these victims. As I said, the number of refuge bed spaces is rising, but those are not the only safe spaces. In fact, only 46% of those supported were in refuges. Some 28% are in sanctuary schemes, in which places where they want to stay in the area they already live in are made safe for them. Some 13% are in safe dispersed accommodation, 5% in specialist accommodation, 1% in second-stage accommodation, and 7% in other safe accommodation. This is about not just refuges but looking after the individual, and giving the individual choice and support through what, as the noble Baroness says, are very difficult times.

[Baroness Eaton (Con)]

My Lords, we are all extremely distressed to hear of the increase in this dreadful crime of domestic abuse. I am pleased to hear from my noble friend of the work that is being done to care for these women, but is any work being done on the prevention and early intervention that might prevent so many people having to seek refuge?

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[Baroness Scott of Bybrook (Con)]

My noble friend brings up a really interesting point, and one that we need to do much more work on. Prioritising prevention is one of the four pillars of the tackling domestic abuse plan, and part of the tackling violence against women and girls strategy. The objective has to be to reduce the amount of domestic abuse, domestic homicide, and suicides connected to domestic abuse by stopping people from becoming perpetrators and victims in the first place. In the tackling violence against women and girls strategy, the Government have committed to invest £3 million to understand this issue better: what works to prevent violence against women and girls in the first place?

[Baroness Burt of Solihull (LD)]

My Lords, despite the incredible work that refuges do to keep abused women and children safe from their abusers, they face severe shortfalls in the funding that they need to do the job. Over half of referrals are turned away, mainly because of lack of space and capacity. There is a one-third shortfall in funding at the moment between the £189 million of projected need and the £127 million received from DLUHC. Will the Minister undertake to review funding for refuges? I appreciate that there are a lot of other alternatives. As I understand it, a report is coming out today on community funding and availability of services, but does she agree that every woman and child facing abuse should be able to flee to safety?

[Baroness Scott of Bybrook (Con)]

I certainly agree with the noble Baroness’s last point. Since 2021, my department has committed £507 million to local authorities for the delivery of new duties. This year, £127.3 million will cover the estimated cost of unmet need to support victims and their children in safe accommodation. There is an issue with the Women’s Aid estimate because it includes the costs of all other services, including funds that already exist, so there is a slight disconnect there. The Government have also put in place—this is quite important—support for charities that look after victims and do a lot of work. I thank them for all the work they do, particularly with specific groups of women who need extra support. The Government are supporting them, particularly through the cost of living crisis; for example, with their energy costs.

[Baroness Crawley (Lab)]

My Lords, can the Minister say what the government can do further in partnership with local authorities to assist those victims of violence who have no recourse to public funds or have insecure immigration status? As she will know, both those things can be used by perpetrators to coerce and control their victims.

[Baroness Scott of Bybrook (Con)]

In April 2021, the Home Office provided £1.4 million of support for a migrant victims scheme to provide the support that the noble Baroness talks about because they have no recourse to public funds. A pilot has been run by Southall Black Sisters and their delivery partners, providing a really good wraparound support service for migrant victims of domestic abuse; this has included offering them sustenance, helping them, counselling them and giving them legal advice. During the pilot, the scheme supported 425 migrant victims. We have allocated another £1.4 million this year to continue to fund this pilot; we are going to take on board the lessons learned by Southall Black Sisters.

[Lord Farmer (Con)]

My Lords, the Office for National Statistics has found that a third of domestic abuse victims are male, yet there are very few refuge spaces for men and children in London, the Home Counties and the east of England, although there are places elsewhere. I recently visited a men’s charity in Kent, where there are none at all. How will the Government encourage local authorities to bridge that gap?

[Baroness Scott of Bybrook (Con)]

My noble friend brings up an interesting issue. Yes, we talk more about women than men but there are men who are victims of domestic abuse. The problem is that the numbers are smaller so it is difficult to get a lot of refuges across the country. Under the safe accommodation support duty, tier 1 local authorities are required to assess the need for, and provide support for, all victims of domestic abuse, including male victims. The male victims’ organisation that keeps an eye on this is called ManKind and provides expert input into monitoring these duties as part of the domestic abuse safe accommodation national expert steering group, which is chaired by my colleague, Felicity Buchan. The voice of the man who is domestically abused is there at the centre; we ensure that they get the support they need.

[Baroness Walmsley (LD)]

My Lords, does the Minister agree with me that it is important to work upstream with schools to ensure that young men understand what a healthy sexual relationship is, and that young women know—and, indeed, have the confidence—not to accept the early stages of the wrong sort of relationship?

[Baroness Scott of Bybrook (Con)]

I agree with the noble Baroness. Following on from the answer that I gave my noble friend, this is exactly what we should be looking at when considering how to tackle violence against women and girls. That is where the investment into that research goes, and I am sure that some of the work that the noble Baroness talked about will be happening.

Building Safety Act 2022 (Consequential Amendments etc.) Regulations 2023

Baroness Scott of Bybrook Excerpts

Tuesday 20th June 2023 Grand Committee

Moved by

[Baroness Scott of Bybrook]

That the Grand Committee do consider the Building Safety Act 2022 (Consequential Amendments etc.) Regulations 2023.

[The Parliamentary Under-Secretary of State, Department for Levelling Up, Housing & Communities (Baroness Scott of Bybrook) (Con)]

My Lords, these regulations will make technical but important changes to the language used in existing legislation, bringing it into line with the new terminology and processes introduced by the Building Safety Act 2022.

I will start by providing some context for these regulations. After the Grenfell Tower tragedy, the Government recognised the need for an overhaul of our building safety regime. In 2017 we appointed Dame Judith Hackitt to conduct an expert review of the current regime. Her review identified the need for significant cultural and regulatory change, including recommendations focused on the building control process.

Part of the Government’s response to these building control recommendations included the introduction of provisions in Section 33 of the Building Safety Act that repeal Section 16 of the Building Act 1984. The Government consulted on these provisions, and they were subject to pre-legislative scrutiny ahead of formal consideration of the Building Safety Act.

Section 16 made provision for the deposit of plans with local authorities before starting building work, as well as the passing or rejection of the plans. The information provided to building control was not always consistent, nor always sufficiently detailed for the work to be carried out.

Section 33 of the Building Safety Act, which has yet to be enacted, repeals Section 16 and provides instead for a new system of applications for building control approval. For higher-risk buildings, this means a more stringent system, with the building safety regulator the sole building control body. Applicants cannot proceed with work without explicit approval from the building safety regulator.

For non-higher-risk buildings, there is no significant change from the existing procedure. Local authorities and approved inspectors will remain responsible for supervising this work, and work can begin before approval is granted. Applicants do so at risk of having to uncover or change work and could face enforcement action. In addition, provisions in the Building Safety Act largely transfer procedures for appeals under the Building Act from the magistrates’ court to the specialist First-tier Tribunal.

The purpose of these regulations is to align the Highways Act 1980, the Clean Air Act 1993 and 13 local Acts with the terminology and processes that will be established when Section 33 of the Building Safety Act is enacted. Provisions in the Highways Act that relate to the payment of charges for street works when building control plans are deposited are amended to refer to new systems of applications for building control approval. Section 16 of the Clean Air Act is also amended. This section requires local authorities to check the height of proposed chimneys to ensure that they are tall enough to prevent smoke and particulates becoming prejudicial to health. It is amended to replace references to the deposit of plans with provisions that refer to applications for building control approval.

Similarly, 13 local Acts are also amended to replace definitions of the deposit of plans with provisions that instead refer to the new system of applications for building control approval. Further references to the deposit of plans in these acts are also updated to reflect the new terminology. Of the local Acts, 11 contain provisions relating to appeals to the magistrates’ courts. To align these Acts with the new procedure for appeals, the provisions are amended to direct appeals to the First-tier Tribunal. The instrument also contains a transitional provision providing that consequential amendments do not apply to plans for building work deposited before the date on which the regulations come into force.

I wish to reassure noble Lords that they will have the opportunity to scrutinise the specific requirements of the new system of applications for building control approval. These requirements were subject to consultation in 2022 and will be set out in a number of statutory instruments that amend the Building Regulations 2010 and provide for new building control procedures et cetera for higher-risk buildings. The Government will lay these instruments in the coming months.

The Government intend to bring both these consequential amendments regulations and the regulations that create the new building control system into force in the autumn. Without these consequential changes, the provisions of the Highways Act, the Clean Air Act and the 13 local Acts will cease to operate as they do now, as they will no longer have meaning once Section 33 of the Building Safety Act is brought into force. I hope that noble Lords will join me in supporting the draft regulations. I commend them to the Committee.

[Lord Stunell (LD)]

My Lords, I rise to comment on this statutory instrument and thank the Minister for the introduction she has given to it. It goes in partnership with Section 32, which is not yet in force. She has rightly drawn attention to the fact that it does not cover the question of the actual application process, which is going to be dealt with later. So it is rather a small cog in a very big machine to make sure that the system works effectively.

I do not propose to spend a lot of time commenting on the local building Acts, with which I once used to wrestle in a professional capacity. I am sure that rationalising those makes a great deal of sense, regardless of the building safety and high-rise issues driving this change.

I note the frequent references to the building safety regulator in what the Minister put to the Committee a few moments ago. I share her view that the regulator is an absolutely fundamental part of the new machinery and, clearly, will be pivotal to making sure that, ultimately, the machine moves and works. The Minister will know that I have already expressed my concern about proposed amendments that the Government have brought forward in the levelling-up Bill to potentially change who the regulator is, perhaps on a timescale that could very likely interact with the implementation of Section 32 and the bringing into force of a new application process. What consideration has the department given to the potential for this process and the very tightly drawn and carefully designed machinery, of which this is a small part, to continue to function—or, rather, begin to function—smoothly and without effort or distortion when the new system comes into play, as outlined in the levelling-up Bill amendments by the Government?

That is a matter that we will obviously return to at the Report stage of consideration of that Bill—I do not want to enter that debate now—but I hope the Minister will give us what reassurance she can that the machine of which this is a small cog is intended to continue working seamlessly in the event that the Government proceed with completely reshaping the building safety regulator sometime in the next two years.

[Baroness Taylor of Stevenage (Lab)]

My Lords, I thank the Minister for setting out the proposals in these regulations. Although it could be considered a minor amendment dealing with just consequential matters, in view of the overall context of building safety and the fact that this is one of a number of steps we are seeing to ensure that the very serious issues that have arisen from the Grenfell Tower disaster and others are taken seriously and acted upon, we need to treat all these regulations with a degree of seriousness.

We were very pleased to learn that proposals for new building regulations were consulted on last year and that new regulations will come forward before the Summer Recess for enactment in the autumn. We look forward to hearing about the new process. As we are not able to amend these through the regulation process, I ask the Minister whether we will have the opportunity to see them in draft form before they come through to us.

Two aspects relating to building safety and building control that have emerged in recent years are, first, that the transfer to the private sector—the deregulation —of building control did not anticipate that there would be an impact on the quality or availability of the building control function. Neither did it anticipate the dilution of the independence of the building control function from the development industry.

Secondly, we hope that, as new regulations are developed, attention will be paid to the capacity, resources, recruitment and retention of the building control inspectors to ensure that they are sufficient to deal with what we hope will be tighter regulation for building safety in future.

We note the transfer of the appeals procedure to the First-tier Tribunal. Can we be reassured that the First-tier Tribunal will have sufficient resources to enable it to deal with those new duties? In view of the glacial pace of progress on building safety matters that leaseholders have had to endure, it would be unfortunate in the extreme if the level of appeals resulted in unacceptable backlogs and were not dealt with promptly. It will also be essential that matters such as stop notices are able to be progressed without delay. I hope the resources are there to deal with that.

[Baroness Scott of Bybrook (Con)]

I thank noble Lords for that and for their brevity; I think that was right, considering that these are quite technical matters. It is important that many of the things brought up by both noble Lords will be discussed further when we bring the building control SIs to the Committee later in the year. In particular, the question of whether building control remains as professional and regulated as currently is an important issue. That has to happen, and we will have that debate.

I was also interested in the capacity of tribunals; that is always important. We know that the magistrates’ courts are probably where a lot of things are being held up. I quite agree that the First-tier Tribunals must have the capacity to be able to deal with things in a timely manner.

As far as the building safety regulator and the LURB are concerned, I can assure the noble Lord that the Government will work to ensure that all these parts of building safety work together and that there is no black hole between one and the other. That will take some timings; I am sure that we will discuss that further before it happens. If the LURB goes through, there will be SIs to change the regulator and to ensure that everything works in a timely manner and nothing is lost in the meantime. I can assure noble Lords that we will work towards that end. To conclude—

[Baroness Taylor of Stevenage (Lab)]

Before the Minister moves on, it would be really helpful to understand the entire role of the building safety regulator. There has been a lot of heavy lifting as we have gone through the process of the LURB and the Building Safety Act, and it would be really helpful if the entire scope of the building safety regulator could be set out somewhere.

[Baroness Scott of Bybrook (Con)]

I am more than happy to write to the noble Baroness, and copy in the Library, about what we foresee that to be, although that concerns the LURB and not this instrument. I am happy to have a meeting on that, if necessary, before we go into that part of the LURB on Report.

As I said, these regulations will ensure that the Highways Act, the Clean Air Act and the 13 local Acts will continue to function as intended when the new system of applications for building control approval is brought into force. I hope the Committee will join me in supporting these regulations.

Motion agreed.

Building Safety (Responsible Actors Scheme and Prohibitions) Regulations 2023

Baroness Scott of Bybrook Excerpts

Tuesday 20th June 2023 Grand Committee

Moved by

[Baroness Scott of Bybrook]

That the Grand Committee do consider the Building Safety (Responsible Actors Scheme and Prohibitions) Regulations 2023.

Relevant document: 38th Report from the Secondary Legislation Scrutiny Committee. Special attention drawn to the instrument by the Joint Committee on Statutory Instruments.

[The Parliamentary Under-Secretary of State, Department for Levelling Up, Housing & Communities (Baroness Scott of Bybrook) (Con)]

My Lords, these regulations establish a responsible actors scheme for developers under Sections 126 to 129 of the Building Safety Act 2022, focused on the remediation by developers of historic fire safety defects in residential buildings they have developed in England. Developers that are eligible for the scheme but choose not to join, and developers that join the scheme but then renege on their membership commitments, will be prohibited from carrying out major development or obtaining building control approvals.

Following the Grenfell Tower tragedy, it became evident that thousands of residential buildings over 11 metres had serious fire safety defects. This put resident safety at unacceptable risk while leaving many leaseholders facing potentially life-changing remediation costs. This scheme is one part of the Government’s wider response to the building safety issues that came to light following Grenfell. In addition to the scheme, we are protecting residents by investing £5.1 billion in remediating unsafe cladding on 18 metre-plus buildings; securing industry contributions to remediation through introducing a building safety levy; implementing statutory leaseholder protections against unfair costs of remediation; and creating new legal avenues for affected parties to recover remediation costs from those who caused the problem.

This scheme focuses on major private sector developers, which sit at the top of the supply chain and have overall responsibility for their developments. The Government engaged with major developers through a remediation pledge and then a legally binding developer remediation contract. I welcome the action taken by 48 developers that have signed the developer remediation contract; these include the top 10 private sector UK housebuilders. The scheme will create a level playing field whereby eligible developers that commit to remediate are not placed at a competitive disadvantage compared with those that do not.

The regulations set out three descriptions of persons who are eligible to join the scheme. Developers based anywhere may be eligible for the scheme, if they developed relevant buildings in England. First, major housebuilders are eligible where their principal business has been residential property development; they were responsible for the development or refurbishment of one or more 11 metre-plus residential buildings in England in the 30 years ending 4 April 2022; and they meet the profits condition set out in the regulations. Secondly, developers are eligible where they meet the profits condition and they were responsible for the development or refurbishment of at least two buildings that we know are defective because the buildings have been assessed as eligible for a relevant government remediation fund. Thirdly, there is a voluntary eligibility provision. This allows other persons to join, where they were responsible for the development or refurbishment of a building that would require remediation under the developer remediation contract.

The profits condition is focused on typical operating profits averaged across the three years from 2017 to 2019, which were not impacted by the Covid pandemic. Both the profits condition and other aspects of the eligibility provisions make appropriate provision for the complex company group structures used by some developers.

The regulations make clear that registered providers of social housing are not eligible for the scheme. They will not be invited or permitted to join.

The core conditions of membership of the scheme are for developers to commit to identifying and remediating life-critical fire safety defects in residential buildings over 11 metres in height that they developed or refurbished in England in the 30 years ending on 4 April 2022, and to reimburse taxpayers for government-funded remediation of such buildings. To demonstrate their commitment, an eligible developer must enter into a self-remediation contract: a contract containing the terms of the developer remediation contract published by the Secretary of State in March this year. The membership conditions require members to give effect to their remediation and reimbursement commitments in accordance with the contract’s terms.

I turn now to the application provisions. The Committee will be aware that the Joint Committee on Statutory Instruments has drawn attention to two technical aspects of the drafting of these regulations, including one relating to the scheme’s application provisions. I am grateful to the Joint Committee for its time, its valuable scrutiny and its report, which the Government have carefully considered. We have corresponded with the Joint Committee and provided a memorandum setting out our position, which is printed as an appendix to the Joint Committee’s report.

I welcome this opportunity to reaffirm our overall position on the issues raised, as explained in the memorandum. On the application provisions, we consider it to be clear in context that, where the Secretary of State identifies that a person is likely to be eligible for the scheme, they will be invited to join it, but the registered providers of social housing will not be invited to join, as they are not eligible under Regulation 6. In light of the Committee’s report, we will monitor implementation carefully and consider bringing forward amending regulations in the event that the regulations give rise to a misunderstanding in practice as to who is invited or able to join the scheme. The Government will also issue guidance on aspects of the scheme. However, the issue of developer remediation of unsafe buildings is urgent, and I seek the Committee’s approval of these regulations today.

The regulations set out the time period to join the scheme and give developers an opportunity to make representations if they believe that they are not eligible. They also set out how developers can join the scheme in other circumstances, including under the voluntary eligibility provisions.

Membership of the scheme may be revoked for breach of membership conditions or ended without fault where a member has substantially satisfied their obligations. Members will have the opportunity to make representations to the Secretary of State before their membership is revoked. Should an eligible developer decide not to join the scheme by the end of the application period, or should their membership be revoked for failure to comply with the scheme’s conditions, they will, in accordance with the regulations, be prohibited from carrying out major development or obtaining building control approvals.

At this point the developer, and known persons controlled by the developer, will be notified and then added to a published prohibitions list, which will be used by local authorities for enforcement. Only a person named on the prohibitions list will be subject to the prohibitions. The regulations also apply the prohibitions to persons controlled by the developer to make sure that developers cannot easily avoid the prohibitions by continuing their development business through other entities they control. Prohibited persons will be subject to a planning prohibition that prevents them carrying out major development in England, except where planning permission is received before these regulations come into effect. Development of land carried out by a prohibited developer in breach of a prohibition will constitute a breach of planning control.

The regulations include provision that developers notify the local planning authority about their status as a prohibited person, or when the prohibitions are lifted. The Joint Committee on Statutory Instruments has reported on the absence of a specific sanction for failure to give notice under these provisions. I would like to reassure the Committee that these regulations are effective without such a sanction. The primary mechanism for identifying prohibited persons will be the prohibitions list published by the Secretary of State, so local planning authorities will have access to all the information they need even if a developer fails to notify them. In addition, any developer that engages in development contrary to the prohibition will as a result be subject to sanctions through planning enforcement.

The regulations also establish a building control prohibition, which prevents prohibited persons gaining initial and final building control approval in respect of any building work that requires such approval. The prohibitions have limited exceptions. The purpose of these exceptions is to mitigate potential impact on innocent third parties such as off-plan buyers, the wider public and certain entities that are not in the building industry.

The building control prohibition is subject to exceptions that seek to protect innocent third-party purchasers of properties from a prohibited developer, including a specific exception to assist those whose deposits could be at risk if a prohibition came into effect after they had exchanged contracts. There are also exceptions to ensure that emergency repairs and other repairs to any occupied building that are necessary for the safety of residents can proceed.

Both prohibitions are subject to exceptions to exclude critical national infrastructure projects and to permit certain entities in developers’ corporate groups that are not in the building industry to have the prohibitions disapplied to them where this would not frustrate the purpose of the scheme.

I know the Committee will also be concerned about other industry actors, particularly construction products manufacturers. It is unacceptable that cladding and insulation manufacturers have not yet acknowledged their responsibility for the legacy of unsafe buildings. Most recently, the Secretary of State has written to three industry participants, Kingspan, Arconic and Saint-Gobain, and to their institutional shareholders, to make it clear that those manufacturers must contribute to the cost of remediation or may face severe consequences. The Government will consider all options to ensure that construction products manufacturers contribute their fair share.

These regulations launch an important scheme for developers to remediate unsafe buildings. Given the urgency of this issue, we are bringing forward these regulations for a scheme focused on larger developers at speed. We propose to extend the scheme over time to cover all developers that have built defective buildings over 11 metres and should be paying to fix them. I commend these draft regulations to the Committee.

[Lord Naseby (Con)]

My Lords, I very much welcome the way my noble friend has introduced these important regulations. My dear late father was an architect so I was brought up in that climate, and I do not think anybody in the industry disputes the fact that those responsible for developing unsafe buildings should remedy the defects at their own cost as quickly as possible. That bit seems to be agreed all round.

However, there are some aspects of the scheme that I hope my noble friend will take on board and that should probably result in some changes. The first is the presumption that anyone who has developed a building above 11 metres has to bear the burden of proof that their buildings are not unsafe. That is a pretty costly execution to be done, plus I wonder whether this self-examination is actually the right way forward. What ought to happen is that a regulator should be employed and report accordingly to the Secretary of State.

Secondly—and this is an important dimension—the regulations impose qualifying criteria for membership that appear to bear no rational relationship with the harm identified. Rather than specifying membership criteria by reference to the number of buildings above 11 metres developed, instead the criteria relate to profitability. The result is that a cowboy developer that has built countless buildings of 11 metres and over unprofitably appears to escape the criteria, but for the responsible developer that has built virtually no buildings above 11 metres, profitability is required to join the scheme, with all the obligations that entails.

--- Later in debate ---

[Baroness Taylor of Stevenage (Lab)]

It is unfortunate that we are only now starting to make some progress on the essential remediation works that will allow leaseholders to sleep easily in their beds and begin to get their financial plans and aspirations back on track. I appreciate that some well-intentioned developers have done work in the meantime, but the regulatory framework supporting it is only now coming into play.

I pay tribute to the tireless campaigning groups, both those directly associated with Grenfell and others such as the Cladiators group in my area, driven by Sophie Bichener. I know the Minister is very familiar with Sophie’s case so I will not reiterate all the details, but the firebreaks referred to by the noble Baroness, Lady Pinnock, are a good example of non-cladding-related building fire safety jeopardy. Without these campaigns, we would almost certainly be no nearer having this leaseholder limbo resolved.

The fact that 48 developers have now signed up to the remediation contract is a significant step forward; there is no doubt about that. However, signing up is one thing and action is another. We hope that things will start to move much more quickly now. What steps is the department taking to ensure that developers move as quickly as possible on the remediation steps, and how will it monitor, challenge and enforce where appropriate?

We hope that the reports of full risk assessments by major developers to determine which defects need resolution and which do not are not simply a further device to delay essential works. Can the Minister tell us whether any deadlines are being set for all such risk assessments to be completed?

We would also like some reassurance about how leaseholders will be kept informed and updated on progress. Does this responsibility fall on the developers? If so, how will the department ensure that it has been carried out?

In his Statement on 14 March 2023, the Secretary of State rightly said:

“Those who are responsible must pay”.—[Official Report, Commons, 14/3/23; col. 727.]


While we welcome the fact that 48 builders have already signed up, it is extremely disappointing that some have still refused to do so. We are aware that the Secretary of State has rightly been very robust in his language in trying to bring builders that have not yet signed the contracts into line with those that have. We absolutely support this robust approach and hope that it is successful. If not, as the Secretary of State has clearly stated, such developers will be prohibited from further development. We have heard more about that this afternoon.

It would be helpful to know how such a ban will be enforced. The Minister has set out some further information relating to the enforcement process but it would be helpful to know how it will work. Is it to be done by the department or will it be a new burden on local government—as referred to by the noble Baroness, Lady Pinnock—and will that new burden be fully funded?

We welcome any action to address the building safety crisis, but the remediation contract and responsible actors scheme are still only a partial fix to the problem—in part, owing to the more limited scope of the definition of a relevant defect used in the remediation contract—compared to the Building Safety Act. Signing the contract will not obligate developers to fix all life-critical fire safety defects as defined by the Building Safety Act 2022. The Government acknowledge this in the Explanatory Memorandum, where they state:

“The developer self-remediation approach, and the RAS, is to be expanded over time to cover other developers who developed or refurbished defective 11m+ residential buildings and should pay to fix them”.


Is it intended to extend the contract in future to cover all life-critical fire safety defects? We also have a particular concern regarding the number of buildings covered by the contract. The department itself estimates that only 1,500 buildings will be remediated as a result of the contract, whereas credible estimates put the total number in need of remediation at around 10,000.

The Secondary Legislation Scrutiny Committee comments that

“between 6,220 and 8,890 mid-rise (11 to 18 metres) residential buildings required work to alleviate life-critical fire safety risks due to external wall systems”.

How does the Minister envisage this being resolved and what is the timescale? How many of the outstanding buildings beyond the 1,500 are the responsibility of those developers that have refused to sign the contract?

Meanwhile, ACM cladding remains on faulty high-rise buildings, with remediation not having even started on 22 of them. The building safety fund for remediation of non-ACM cladding and other fire safety defects on high-rise buildings is proceeding at a glacial pace, with just 37 buildings having completed remediation out of the 1,225 applications for funding. The building safety fund for non-ACM high-rise remediation was rated as red in the Infrastructure and Projects Authority annual report for 2022, falling from amber the year before, meaning, to quote the report:

“Successful delivery of the project appears to be unachievable. There are major issues with project definition, schedule, budget, quality and/or benefits delivery, which at this stage do not appear to be manageable or resolvable. The project may need re-scoping and/or its overall viability reassessed”.


Many leaseholders in unsafe buildings waited patiently for years for building safety fund applications to be processed by the department, only to see them terminated. What guarantees are there that any building covered by the contract will not face additional delays to remediation work? Although we welcome the further action proposed in the regulations, some questions remain outstanding. How will leaseholders in buildings with defects outside the scope of the contract get them remediated?

With reference to developer obligations to identify, assess and remediate unsafe buildings, the contract stipulates that they must be carried out “as soon as reasonably practicable”. What assurances can be given to affected leaseholders of their ability to enforce this to ensure that developers are acting within a reasonable timeframe? What is the point of contact in the department and what powers will be used to support them? Why are buildings that are part of national infrastructure exempt? Surely, people working in or living close to such buildings should expect at least as great a level of protection, if not more.

I note the Minister’s comments about prohibited persons, but it is difficult to see how the use of new entities will not avoid those prohibitions and, without sanctions on that, where is the incentive not to do so? Can the Minister explain how new developers will be brought into the regulatory framework?

The Minister raised the critical issue of construction products. Will we receive further regulations on this? It seems they may be necessary. There was a Question today in your Lordships’ House on the manufacturers of construction products used in schools. Surely the manufacturers of construction products must be responsible for adequate safety testing of materials they produce.

I agree with the noble Baroness, Lady Pinnock, about work for remediation of buildings under 11 metres. What assessment has been done by the department of the extent of those issues in lower-rise buildings?

To reiterate, we welcome the additional regulations and encourage the Minister and the Secretary of State to be as robust as is necessary to bring these long-drawn-out issues to a stage of remediation and resolution. We hope that the department will use every power it has to deal with those who are not looking to do the right thing and live up to their responsibilities. The leaseholders in these buildings have been faced with a living nightmare. We owe it to them to get these issues resolved without any further delay.

[Baroness Scott of Bybrook (Con)]

I thank the noble Lords who have contributed today. I open my remarks and answers to the questions asked by saying that the noble Baroness, Lady Pinnock, is absolutely right: six years ago, 72 people died; that is what we are talking about today and why this is such an important statutory instrument. To the noble Baroness, Lady Taylor of Stevenage, I say that this is secondary legislation to the Building Safety Act 2022; that is how it comes in today.

I move on to answering questions. A number were asked by all three noble Lords, so excuse me if I do not mention each name but I will try to remember them. First, the Government believe that it is fair and reasonable that developers that meet the prescribed eligibility criteria for the responsible actors scheme, including a profit threshold, should be asked to assess whether they have developed relevant buildings that require remediation, and remediate those buildings.

We believe it is appropriate that the Government create a level playing field with consequences for eligible developers that opt not to make these important commitments. The obligations under the scheme and contracts for developers with no buildings to remediate are very modest once they have done the necessary work to check and confirm that they have developed no buildings requiring remediation work. As I said in my speech, an eligible developer that substantially satisfies its obligations under the regulations and the self-remediation terms may be released from the scheme. I think that answers the question from the noble Baroness, Lady Pinnock. We are engaging with a number of developers about the developer remediation contract, and I hope they will respond positively to that engagement.

I move on to the issue of construction product manufacturers. I know that this is a concern of noble Lords and it is an important one. I reiterate that the Secretary of State made clear in a recent letter to the major institutional shareholders in the three companies most involved—Kingspan, Arconic and Saint-Gobain—that, if an appropriate financial package is not agreed, the focus of the department will be trained on them, and the consequences for the relevant construction product manufacturers are likely to be severe. We can do this only one stage at a time, but they are next in line. The Secretary of State made it clear that reputational, legal, commercial or further new tools could all be considered if these firms do not do the right thing.

My noble friend Lord Naseby asked: who says that these buildings are unsafe? The Government believe that it is fair and reasonable that the developers that meet the prescribed eligibility criteria for the RAS, including a profits threshold, should be asked to assess whether they have developed relevant buildings that require remediation. I do not think that is unreasonable.

My noble friend also asked why we were focused on profits. We have used the £10 million average operating profits threshold to make sure that the initial phase of the scheme captures larger, more profitable businesses and those that have developed the majority of the affected buildings.

My noble friend also asked about the application of prohibitions to group companies. An eligible non-member of the scheme will be prohibited along with the entities that they control, so it is not all group companies and an exception is available for entities controlled by an eligible non-member that is not in the building industry. Developers can have quite complex business relationships both here and abroad, and we need to capture those as well.

Families with Children: Accommodation

Baroness Scott of Bybrook Excerpts

Monday 19th June 2023 Lords Chamber

[Baroness Thornhill (LD)]

My Lords, I beg leave to ask the Question standing my name on the Order Paper, and I declare my interest as a vice-president of the Local Government Association.

[The Parliamentary Under-Secretary of State, Department for Levelling Up, Housing & Communities (Baroness Scott of Bybrook) (Con)]

My Lords, temporary accommodation is a vital way to ensure that no family in this country is without a roof over its head until it is offered suitable long-term accommodation. Legislation is clear that long-term use of bed-and-breakfast accommodation is inappropriate for families. We are helping councils to prevent homelessness in the first place by investing £1 billion in the homelessness prevention grant over the next three years.

[Baroness Thornhill (LD)]

I thank the Minister for her Answer, and I know that she understands the challenges and pressures that councils face. The root cause of the logjam in temporary housing is the significant lack of affordable move-on accommodation—with the emphasis on “affordable”. Does she agree that, despite the lifting of the housing revenue account borrowing cap, councils and housing associations still face significant barriers to building their own, much-needed social homes? What plans do the Government have to eliminate those barriers, including a more flexible, sustainable approach to both rent levels and borrowing costs but in particular a full reform of the right-to-buy scheme, which disincentivises building when homes can be sold off in two to three years, sometimes at less than it cost to build them?

[Baroness Scott of Bybrook (Con)]

The noble Baroness is absolutely right that part of the issue is the heating of the system and the lack of accommodation available. That is why, since 2010, more than 2.2 million additional homes have been delivered in this country, including 632,000 affordable homes. We have also announced £10 billion of investment in housing supply since the start of this Parliament, together with—I have said this many times at this Dispatch Box—£11.5 billion in the years 2021 to 2026 for the affordable homes programme, which will deliver thousands more affordable homes for rent. I am not saying that this is not a difficult issue to deal with, but the Government have it as a priority and are working through both the affordable housing system and the rented sector.

[Baroness Meyer (Con)]

Does not my noble friend agree that these statistics and the lack of homes illustrate the fact that we need to take a grip on immigration, and therefore we need to pass the Illegal Migration Bill as fast as possible?

[Baroness Scott of Bybrook (Con)]

I can agree with my noble friend on the fact that we have pressures on our system, which I have already mentioned, particularly on housing, but we are a country that cares. Anybody who comes into this country and is homeless deserves a home.

[Lord Rooker (Lab)]

How many of, say, the top councils with the largest numbers been called in by Ministers to have a chat? In 2003, in the system invented and supervised by the noble Baroness, Lady Casey, as she cleared the streets of the homeless, councils that were failing by using bed and breakfast for too many families were constantly monitored and called in. I am not saying the solution is easy, but producing the statistics and leaving it to the councils is not good enough. Have Ministers called in any of the top offenders?

[Baroness Scott of Bybrook (Con)]

First, obviously we keep a review of councils’ delivery. I am not aware of any being called in recently since I have been a Minister, but we have a homelessness advice and support team drawn from local authorities and the homelessness sector which provides support and help for local authorities to end the placement of families in bed-and-breakfast accommodation. I think that is a better way to do it: supporting local authorities to deliver.

[Lord Best (CB)]

My Lords, does the Minister agree that the fastest and best way of relieving the misery and cost of temporary accommodation is to fund councils and housing associations to buy the properties of private landlords who are now exiting the market? They could then relet those same houses at affordable and secure rents for the future.

[Baroness Scott of Bybrook (Con)]

We are providing funding for local authorities either to build or to buy property in order to help them increase their stock. We are also providing more than £1 billion to local authorities over the next three years to help them prevent homelessness. Councils can use this funding flexibly so that they can help people find a new home and stop evictions; they can also move them into better temporary accommodation more easily and quicker when necessary.

[Baroness Bakewell of Hardington Mandeville (LD)]

My Lords, there are many different models for building and providing homes but the greatest need is for affordable social rented properties. However, only 7,000 homes for social rent were built last year. Surely the Government can do better.

[Baroness Scott of Bybrook (Con)]

My Lords, that is exactly why we have suggested that more of the £11.8 billion-worth of affordable housing funding should go into the building of social housing. As can be seen from the levelling-up Bill going through this House at the moment, more emphasis is being put on the social housing sector in building.

[Baroness Hayman of Ullock (Lab)]

My Lords, a recent report by academics at the University of Kent and the University of Southampton called Homelessness in the Countryside: A Hidden Crisis shows how rural homelessness is often out of sight, out of mind, hidden and overlooked by both national and local policy. This results in a lack of vital services and support for those in need. What specific action are the Government taking to tackle rural homelessness?

[Baroness Scott of Bybrook (Con)]

The noble Baroness brings up a really interesting point, because we often talk much more about urban and city-based homelessness. From my own experience, I know a lot about rural homelessness. It is hidden; the noble Baroness is absolutely right. The way to deal with this is to make sure that the responsibility, as it is in legislation, and the funding go to local authorities, which know their issues much better than anybody else.

[Baroness Wheatcroft (CB)]

My Lords, houses that were affordable to buy when mortgage rates were at rock bottom will not be affordable now that those rates are rocketing. Can the Minister tell the House what forecast the Government have made of how many families may be rendered homeless by rising mortgage rates?

[Baroness Scott of Bybrook (Con)]

The noble Baroness brings forward a very interesting point, but I am not aware of any work that has been done on that issue. I will certainly go back to the department and ask whether any has been done by either the department or the Treasury; I will write to the noble Baroness.

[Baroness Altmann (Con)]

My Lords, following on from the earlier question, will my noble friend the Minister look into the issue of councils being able to buy housing that can then be offered for social rent to the clearly increasing number of people who need housing and are unable to find it? Will my noble friend also consider, with the Treasury, the opportunity for pension schemes to take over such properties and rent them out on social housing rents, which deliver a reliable income? In that way, we could also address some of the housing problems.

[Baroness Scott of Bybrook (Con)]

The issue of local authorities buying houses is already being dealt with through the £500 million for local authorities that was agreed by the Treasury around six months ago. As far as pension schemes are concerned, that is an interesting issue. It has been discussed many times before. I will take it back and discuss it again.

[Lord Allan of Hallam (LD)]

My Lords, for families who are stuck in temporary accommodation with children, this is one of the most stressful experiences that they can have, with severe consequences for their mental health. Can the Minister commit to working with her noble friend on the Front Bench from the Department of Health and Social Care to ensure that those families are given the mental health support services that they need?

[Baroness Scott of Bybrook (Con)]

The Government have made it clear that for people with families, bed-and-breakfast accommodation should be the last resort. We are aware of the issues concerned. I do not know whether the Department of Health and Social Care has a specific view on the mental health of these families, but it is an interesting issue. I certainly will take it back and talk to my colleagues in health about keeping an eye on those families who may be in that temporary accommodation.

Non-Domestic Rating Bill

Baroness Scott of Bybrook Excerpts

2nd reading
Monday 19th June 2023 Lords Chamber

Moved by

[Baroness Scott of Bybrook]

That the Bill be now read a second time.

[The Parliamentary Under-Secretary of State, Department for Levelling Up, Housing & Communities (Baroness Scott of Bybrook) (Con)]

My Lords, this Bill delivers important changes to the business rates system. Business rates are a key component of the way in which local services are funded and are set to raise almost £25 billion this year. However, in recent years, concerns have been raised about the fairness of the tax and its impact on a competitive business environment.

Taking on board these concerns, the Government committed to reviewing the business rates system. We completed this process in October 2021, following extensive engagement with businesses, councils and others. The conclusions were clear: like any tax, the business rates system has flaws but it also has significant advantages that are important to protect. These include the tax’s relative stability, how easy it is to collect, how hard it is to avoid and its clear links to the locations where its revenue is spent. The majority of respondents to our review supported the continuation of business rates and did not support the disruption of a major overhaul. Overwhelmingly, they favoured measures to modernise the tax—especially moving to more frequent revaluations, which I will turn to shortly.

At the conclusion of the review in 2021, the Government announced a £7 billion package of support for businesses over five years, alongside a package of reforms. Since then, the Valuation Office Agency has delivered a revaluation, completing valuations for around 2 million properties in England, which reflects changes in the property market since 2015. Revaluations are crucial to ensuring a fairer distribution of rates bills. This revaluation, for example, rebalanced the burden between online and physical retail: on average, bricks and mortar retailers saw decreases of around 20%.

We made sure that the revaluation was manageable for businesses by introducing a £13.6 billion package of business support, which included freezing the business rates multiplier at a cost of £9.3 billion over the next five years. The Government have therefore provided considerable support into the business rates system while balancing the needs of local communities, which rely on funding for local services. However, we remain focused on the need for longer-term reform.

Throughout our review, businesses expressed their desire to keep business rates as accurate and responsive as possible. The Bill therefore delivers a more frequent revaluation cycle for business rates, moving from five-yearly to three-yearly. Following the revaluation that took effect this April, the next will occur in April 2026 and every three years thereafter. This is a positive step for business as it will ensure that the tax is fairly distributed more frequently. It is a major reform of the system, responding to the calls of many stakeholders, and is deliverable in the short term.

However, I recognise that there have been calls for greater ambition. Let me be clear: we are prepared to explore how we can go further in future. In particular, we wish to reduce the gap between the date against which rateable values are assessed and when they come into force, which has been set at two years for the 2026 revaluation. We will also carefully consider the case for an annual revaluations cycle in the longer term. However, we must take these steps sequentially. To deliver a revaluation, the VOA must carry out 2 million valuations in the time available—a major endeavour. Moving to more frequent revaluations means that other changes are necessary to enable the Valuation Office Agency to compile more accurate valuations at greater speed.

We have heard repeatedly from businesses that getting these valuations right is vital to sustaining public confidence in the tax. We also heard concerns that moving to an annual cycle would increase the volatility of bills and potentially damage the accuracy of valuations. It is therefore right that we monitor the implementation of the first three-yearly revaluation cycle and the supporting reforms before taking further action.

Delivering three-yearly revaluations on a sustainable basis will rely on the VOA having access to more timely and complete information. The Bill therefore introduces new obligations on ratepayers to provide the VOA with relevant information. This will bring business rates in line with other taxes, where self-declaration is absolutely the norm.

As part of our wider modernisation of the business rates system, the Bill also introduces a new requirement on ratepayers to provide a taxpayer reference number to His Majesty’s Revenue & Customs. This small extra step will connect the business rates information held locally by councils with HMRC tax data, delivering benefits such as better targeting of and improved compliance with rates relief schemes. Ratepayers will also be able to provide relevant information to the VOA, and their taxpayer reference number to HMRC, through a single straightforward online service on GOV.UK.

It is entirely right that we consider the potential burden on businesses of new administrative requirements. The Government have taken steps to minimise these burdens, have published estimates of the expected costs and will provide guidance for ratepayers.

I want to address some specific concerns about the VOA duty to notify that have been raised with me. First, on what information the Government are asking ratepayers to provide, the duty is not limited to information that the Valuation Office Agency needs to do its job and no more; it is also explicit on the face of the Bill that ratepayers will be expected to provide to the Valuation Office Agency only information that is within their “possession or control” and which they could reasonably be expected to know would assist the valuation office. The VOA will continue to make use of supplementary sources of evidence in order to minimise the burden on ratepayers.

Secondly, let me provide some reassurance about whether this will be complex for ratepayers. To comply with the duty, in practice a ratepayer will only have to visit GOV.UK, use the online service and answer all the questions asked of them. They will receive multiple reminders to support them in providing the right information.

Thirdly, to ensure that the VOA has the most complete set of information to deliver more frequent revaluations, it will be necessary for ratepayers to confirm each year that the information that the VOA holds on their property is correct. For ratepayers whose information is up to date, this step should take only a few minutes. For those who have not remembered to keep their information up to date, this stage will serve as a further reminder to rectify that.

Finally, we will continue to design the new processes in partnership with businesses and interested parties, and we will not activate the duty until we are satisfied that ratepayers can reasonably and efficiently comply. I thank those noble Lords who came to the drop-in sessions. That gave me the ability to answer those questions up front, although I am of course happy to pick up anything further in winding up.

As we move to more frequent revaluations, the Government have considered how to improve the support that we provide to businesses adapting to changing bills. At last year’s Autumn Statement, the Chancellor announced that he would permanently remove the requirement for revenue neutrality from transitional relief. That change is given effect by this Bill. This means that for the 2023 revaluation, there are no downward caps, which previously restricted falls in bills. Businesses have therefore seen the full benefit of falling bills immediately. As a result, the 300,000 properties with falls in rateable value at the revaluation have seen the full benefit of that reduction in their new business rates bill from April 2023. Going forward, we will use that freedom to permanently fund all future transitional relief schemes without recourse to downward caps. I am happy to give that commitment in the House.

It is also important that we protect the integrity of revaluations. Between revaluations, rateable values should change only for a material change in circumstances, or MCC. MCC challenges are designed for cases such as roadworks outside a shop causing access difficulties. This Bill will preserve that principle by providing that changes in legislation, advice or guidance by a public body are not a material change in circumstances. We consider that such matters are related to the general conditions of the market and so belong in the revaluation process.

Interestingly, the noble Earl, Lord Lytton, identified the scenario of a vaping ban as an example of how this measure could have unwarranted consequences. In fact, his example underlines why we need to clarify the law concerning MCCs. Without this clarity, over recent years the Valuation Office Agency has been forced to consider whether legislation changes such as smoking bans or the introduction of the congestion charge should affect rateable values. The result was uncertainty for the ratepayer and for local government.

In the future, we will have clarity in Clause 14, ensuring that changes in legislation such as that, which clearly concern the general economic conditions and level of rents, are reflected for all at the next revaluation. These revaluations will of course be happening more frequently under this Bill, and any physical consequences of new legislation on a property will continue to be reflected as and when they arise.

This Bill also introduces an important new relief to support businesses investing in their properties, responding to another key stakeholder ask during the review. Currently, our business rates are a tax on the value of the property, so businesses may see an immediate increase in their rates bill for any improvements that they make to their property. From 1 April 2024, this Bill will mean that no business will face higher business rates bills for 12 months as a result of qualifying improvements to a property that they occupy. The Bill prescribes powers for Ministers to set conditions for the availability of the relief, and the Government’s policy on this has been set out in our earlier technical consultation. My department has published draft regulations for consultation so that noble Lords may review how the Government intend to exercise these powers.

Finally, the Bill makes changes to the calculation of business rates multipliers—or tax rates. In recent years, government policy has been to uprate the lower multiplier each year by the consumer price index rather than the higher retail price index. The Bill ensures that the CPI is the default uprating for both multipliers, reducing the potential inflationary burden on businesses. The Bill also provides a power to uprate at a level lower than CPI, and to directly set which properties are subject to which multiplier, allowing the Treasury greater flexibility in the support it can provide.

In conclusion, this Bill modernises the business rates system by bringing valuations more in line with the property market, improving the data underpinning the system, removing barriers to investment and improving fairness. I look forward to hearing the contributions of noble Lords on this important subject. Many of your Lordships have called for reform of this tax for some time, and I am confident that this Bill delivers it. I beg to move.

--- Later in debate ---

[Baroness Scott of Bybrook (Con)]

My Lords, it is a pleasure to close the debate, and it has been a pleasure to listen to such thoughtful contributions. The noble Baroness opposite is absolutely right: I have got a lot of questions. I am bound not to remember all of them, but I will write a letter afterwards to make sure that everything is set. I will also offer more meetings, if noble Lords would like them, before Committee.

It is right that we strive towards the best possible business rates system: one that balances the needs of the taxpayer with the importance of sustainable services in local communities. It has to be a balance. A lot has been said about business rates being too high, but, as we know, if business rates go down, so does the money that local authorities get. We need to get the balance right.

The Government’s review of business rates considered how to improve the tax from a range of angles, and this Bill makes a series of significant improvements which will have considerable benefits for those who pay the tax and those who rely on it. As I said, I am very grateful for the contributions that have been made. I will try to answer as many of the questions as I possibly can, with my many bits of paper.

The noble Lord, Lord Shipley, the noble and learned Lord, Lord Etherton, and many others have suggested that we adopt a short evaluation cycle of one or two years. As I set out in my opening speech, we are happy to consider this carefully in future, once the reforms in the Bill have been implemented. However, it is vital that we approach these changes sequentially to ensure that we can deliver more frequent revaluations and avoid destabilising the tax. If we go too fast, that is what might happen.

The noble Lord, Lord Shipley, asked whether we could increase the threshold in the small business rate relief scheme or otherwise reduce the multiplier. The Government’s generous small business rate relief scheme already sees over a third of properties pay no business rates at all, and that is worth £2.1 billion per year. Further increases in the threshold for the SBRR would be a broad-based and indiscriminate way to provide support, and would therefore be a poorly targeted type of relief. However, the noble Lord welcomed the considerable support we are providing to businesses under the existing schemes, and obviously we will keep them under review.

The noble Lord, Lord Shipley, the noble Earl, Lord Lytton, and the noble Baronesses, Lady Pinnock and Lady Thornhill, and others asked about the transparency and performance of the VOA. If there are any changes, it is important that it can take those changes, work with them and deliver. I assure noble Lords that the VOA will continue to publish targets for its timeliness under the new system and measure performance against them. Current targets cover timeliness on maintenance reports and the check stage of the appeals process. While the new targets will be informed by the development of the new system, the Government are very clear that these must be both ambitious and deliverable. The VOA must deliver on those targets.

The noble Lord, Lord Shipley, referred to the role of land values in the tax such as it is. The Government consider that the arguments in favour of a land value tax are not supported by the evidence. A land value tax would also inevitably increase the tax burden for properties on large pieces of land, such as golf courses or farms, whereas densely developed land, such as that of the Shard, would see lower bills. I understand that he indicated his support for the tax based on rates, which is how business rates work, and I welcome that observation from him.

The noble Earl, Lord Lytton, the noble and learned Lord, Lord Etherton, the noble Baroness, Lady Thornhill, and others asked how we have framed improvement relief and whether it will in fact provide the incentive for property investment—this is very important. The relief is designed to help occupiers make improvements to their existing premises, rather than subsidising general commercial property development. The Government consider that a 12-month relief will allow time for the benefits of the property investments to flow through into businesses. We will keep this under review; in particular, we will review this scheme in 2028.

The noble Earl, Lord Lytton, asked whether we had assessed the impacts of the new duties. We have carefully considered the impact of the duties on businesses and published two impact notes to outline the estimated costs of complying with the new duty. The VOA estimates the cost of the new information duty to be £35 per ratepayer each year. The current system costs ratepayers £15, so this is an increase of £20 each year. The HMRC duty for tax reference number is estimated to be about £2 for most businesses, and no more than £6 in those cases where finding a suitable tax reference number takes a bit longer.

The noble Earl, Lord Lytton, asked whether guidance will be available to help ratepayers comply with these duties. As I said, the Government will not formally activate the VOA duty until we are absolutely satisfied that ratepayers can reasonably and efficiently comply with it through the online service. Guidance and support will be offered to those engaged in the soft launch of the system. As is the purpose of the soft launch, the guidance will be developed as we learn from engagement with users.

The noble and learned Lord, Lord Etherton, raised concerns about those eligible for the 100% relief and whether they should be subject to these duties. Information collected by the VOA on a specific property is often used in the valuation of other comparable properties, many of which may not receive 100% relief. For instance, a small independently owned shop which pays no rates would have to pay business rates if it were occupied by a large chain, such as Co-op. It is important that we have all that information collected for all properties. However, as I said, we will not formally active the duty until we are absolutely satisfied that all ratepayers, including those getting 100% relief, can reasonably and efficiently comply with it.

The noble and learned Lord, Lord Etherton, the noble Baroness, Lady Thornhill, and others set out why the level of business rates is considered too high. As I said, business rates are an essential form of funding for local government, providing vital public services and supporting the Government’s levelling-up agenda. The Government have taken action to hold the tax rate steady over the last three years, protecting businesses from inflationary pressures at a cost of around £3 billion each year from 2023-24. Given the difficult fiscal position, it would not be responsible to cut the rate further, with a 1p cut costing approximately £600 million per year.

The noble Baroness, Lady Thornhill, asked whether the VOA would be able to cope with the reforms. The VOA has plans in place to enable the delivery of the reforms in the Bill; the Government have invested to make that change a reality, with £0.5 billion for the VOA as part of the spending review; this includes funding for important changes to upgrade IT infrastructure and digital capabilities.

The noble Lord, Lord Thurlow, spoke about the transparency of the VOA’s work. The Government committed in the 2020 business rates review to reforming the VOA’s processes to make them more transparent. The duty contained in the Bill is essential for the VOA to implement its offer of improving transparency, and we remain committed to that aim.

The noble Lord also raised important points about the danger of rogue agents, as did other noble Lords. I can assure him that we will be consulting on agent behaviour as part of the avoidance and evasion consultation. As he notes, the majority of agents are legitimate organisations that are typically registered with one of the main professional bodies that he mentioned and provide a valuable service to their clients. Nevertheless, some agents seek to take advantage of their clients or actively to promote rate mitigation strategies. The consultation will, therefore, seek to understand the nature and scale of these issues and identify potential actions that the Government can take to help address these practices. While I am on this subject, I wish the noble Lord a very good day tomorrow. I hope that he will feel much better after it.

I move on to important points raised by the noble Baroness, Lady Pinnock, and all other noble Lords. All brought up the issue that the Government have not addressed the imbalanced treatment of the high street and online businesses. We recognise the concerns that people have raised and we have taken significant steps to tackle this. The Government looked at the case for taxing businesses differently, through our review of business rates and through a separate consultation on an online sales tax. Our review made it clear that people were not supportive of penalising specific sectors or properties through business rates. The Government reviewed the feedback that they received from stakeholders over the online sales tax consultation period and announced at the Autumn Statement of 2022 their decision not to proceed with such a tax.

In summary, the evidence received suggested that an online sales tax would have been extremely complex to design and implement and would create undue administrative burdens for businesses. This includes challenges of defining the boundaries between what is online and what is instore retail, including the knotty issue of click and collect, which came up. Rather than penalising innovative online businesses, we have chosen to focus on supporting those high street businesses most in need, with an improved relief for retail, hospitality and leisure businesses, worth £2.1 billion this year, offering 75% off bills up to a cash cap. That is the way we have decided to do it.

The noble Baroness, Lady Pinnock, also brought up the issue of business rate consultation on avoidance. At the Spring Budget, the Chancellor announced that the Government would consult on business rate avoidance and evasion, and that the consultation will look at the three or six-month period of relief available for empty properties. Our concern is to ensure that landlords are not avoiding paying rates, which I hope gives some reassurance. The noble Baroness also asked about the Government reforming empty property rates. As I said, we will consult on business rates avoidance and evasion and look at that issue further. Our concern is to ensure at all times that landlords are not avoiding paying rates—that is the important part.

The noble Baronesses, Lady Pinnock and Lady Hayman of Ullock, brought up the issue of the cost to local authorities, as did the noble Baroness, Lady Thornhill. I am not sure about this, but I am pretty sure that local authorities will get new burdens, if there are new burdens—but I shall check exactly how that is going to happen and write it in my following letter.

That is as much as I have, but I shall look at Hansard tomorrow. I shall answer all the questions and put the answers that I have already given in writing as well. As I said, we can meet again if any noble Lords would like to before Committee. The changes that the Government are making to the business rates system will help businesses grow and prosper, and I thank noble Lords for their basic welcome of the Bill. The Bill reforms rates so that they more accurately reflect the property market—and we are also addressing the perception that tax is a barrier to investment. The changes in this Bill will lead to fairer and more accurate bills and a more adaptive system, capable of keeping up with the changing modern economy.

Bill read a second time.

Moved by

[Baroness Scott of Bybrook]

That the bill be committed to a Grand Committee, and that it be an instruction to the Grand Committee that they consider the bill in the following order: Clauses 1 to 17, Schedule, Clauses 18 to 20, Title.

Motion agreed.

Elections: Voter ID

Baroness Scott of Bybrook Excerpts

Tuesday 13th June 2023 Lords Chamber

[Baroness Jones of Moulsecoomb]

To ask His Majesty’s Government what assessment they have made of the impact of voter ID rules on people’s ability to vote, and what plans they have to review these rules before the next general election.

[The Parliamentary Under-Secretary of State, Department for Levelling Up, Housing & Communities (Baroness Scott of Bybrook) (Con)]

My Lords, we are encouraged by the first rollout of voter identification and are confident that the vast majority of voters will have cast their vote successfully based on sector feedback and our own observations on the day. As set out in legislation, we will be conducting an evaluation of the implementation of voter identification at the May polls and intend to publish the report no later than November this year.

[Baroness Jones of Moulsecoomb (GP)]

I am quite surprised at that Answer, because initial reports suggest that thousands, if not tens of thousands, of people were not able to cast their votes. Of course, the really disturbing thing is that a former member of the Government—still a Member of the other place, recently knighted, Sir Jacob Rees-Mogg—said at the National Conservatism Conference in Westminster last Monday:

“Parties that try and gerrymander end up finding their clever scheme comes back to bite them, as dare I say we found by insisting on voter ID for elections”.


So a member of the Minister’s own party has called it “gerrymandering”.

[Baroness Scott of Bybrook (Con)]

The successful introduction of voter identification at May’s elections was to ensure the future integrity of our voting system. Comments from elsewhere do not reflect the reality of the reason for or the administration of that change. The Parliamentary Under-Secretary of State for Local Government and Building Safety, Lee Rowley MP, made the Government’s position absolutely clear in a letter responding to a point of order raised in the House of Commons on 16 May. This letter has been deposited in the House of Commons Library.

[Viscount Hailsham (Con)]

My Lords, several years ago I was concerned in a case involving allegedly forged postal votes. In the course of that time it became clear to me that many heads of family in some communities were providing postal votes that were, in my eyes, highly questionable. I very much hope that the Government are still keeping the matter under review.

[Baroness Scott of Bybrook (Con)]

I assure my noble friend that voter identification is just one of a series of measures within the Elections Act that are aimed at tackling voter fraud and ensuring the future security of our electoral system. Further changes will be delivered later this year to introduce sensible safeguards against the abuse of absent voting, clamping down on the practice of postal vote harvesting and tightening the rules around postal and proxy votes.

[Baroness Hayman of Ullock (Lab)]

My Lords, according to the Electoral Commission, 1.2% of people who attended a polling station at this year’s local elections were turned away because they lacked photo ID. We are not talking about ID but photographic ID; that is the concern. If the next general election reflects the turnout of 2019, this could mean that 380,000 voters are sent home and prevented from exercising their right. On this basis, can the Minister really say that these photographic voter ID requirements, as they stand, are fit to be applied at the next general election?

[Baroness Scott of Bybrook (Con)]

As I have said, we are undertaking a review. It is essential that, before we make claims such as we are hearing from the other side, we understand how the policy has operated in practice, what has gone wrong and where there are any areas for improvement in the future. Of course, where there are lessons to be learned, we will do so and we will change at the point of that evaluation. We are already gathering evidence as a Government. Also, the Electoral Commission is conducting extensive evaluation; we expect its initial findings later this month and a full report in September. I suggest that the whole House waits until we get that full evaluation before we start throwing stones.

[Lord Udny-Lister (Con)]

My Lords—

--- Later in debate ---

[Lord Wallace of Saltaire (LD)]

My Lords, we already have a problem with fewer young people turning out to vote than others. The clear implication of what Jacob Rees-Mogg said was that this was intended to discourage more young people from voting, but it ended up discouraging some older people from voting as well. Would not one of the easiest things be to expand the number of possible means of identification that young people could present when voting, and make it clear that that is being relaxed?

[Baroness Scott of Bybrook (Con)]

We will look at the evidence of that. We have said we that we will look at other forms of identification when we have the evidence to do so; that is what the Government will do.

[Baroness O’Neill of Bengarve (CB)]

Do the Government have any intention of specifying what sort of ID is acceptable? I decided to test this out in the recent local elections. I took my House of Lords pass; it has a photograph, as we all know, but it was not acceptable. Luckily, in my pocket I also had a passport, so I was able to vote. This should not be left unclear.

[Baroness Scott of Bybrook (Con)]

The returning officers have a clear list of acceptable forms of photo identification that they use. They have been fully trained on those. As I have said, we will look at other methods of photo ID and get the evidence to say when something is particularly useful. ID is changing all the time, but we have to ensure that it is secure ID that is being used in a polling station.

[Lord Udny-Lister (Con)]

My Lords, there is plenty of anecdotal evidence in London and, indeed, councillors have reported cases of voter fraud to the police in previous elections and been ignored. Can we have an assurance that there is going to be proper evaluation, particularly in some of the London boroughs where this evidence exists?

[Baroness Scott of Bybrook (Con)]

We have made it very clear in the legislation that will be doing a review, not only after this general election but after the next two to ensure that the voter identification system we are putting in place is right, is correct and is not disenfranchising any voters from electing.

[Lord Mackenzie of Framwellgate (Non-Afl)]

My Lords, does the noble Baroness agree that this Question would not be relevant if the introduction of biometric ID cards by the last Labour Government had not been opposed by the party opposite? Does she also agree that such a measure would also have addressed the scourge of criminal identity theft that blights our country as fraud offences go through the roof?

[Baroness Scott of Bybrook (Con)]

A national identification card is a totally different subject; it is much wider and further than this. That debate is perhaps for another day.

[Viscount Stansgate (Lab)]

My Lords, the integrity of our electoral system is important. In the light of what the Minister has told the House about the Government’s review, will she now undertake in advance to raise with her noble friend the Leader of the House that we should have an opportunity to debate that review in government time in the autumn?

[Baroness Scott of Bybrook (Con)]

I do believe that it was agreed in the legislation that when the review came out it would be discussed by both Houses. If that is not correct, I will correct it in a letter in the Library—but I am pretty sure that that is what was agreed.

[Lord McCrea of Magherafelt and Cookstown (DUP)]

My Lords, whenever photographic ID was introduced for elections in Northern Ireland, it was supported by all parties and all Members in both Houses of Parliament. Why should it be different for any other region of the United Kingdom?

[Baroness Scott of Bybrook (Con)]

We took the good practice from Northern Ireland that has been in place for 20 years and we thought that it was correct and right for the integrity of our democratic system to bring it across the whole of the United Kingdom.

[Lord Hayward (Con)]

My Lords, I welcome the comment that my noble friend made in relation to the Electoral Commission report, which is due in the next few days, but is she aware of the Democracy Volunteers report, already published, which would appear to indicate deficiencies in terms of communications and publicity, particularly with the ethnic communities, and also, as indicated previously, that certain returning officers did not have adequate information as to what photo ID was acceptable at polling stations?

[Baroness Scott of Bybrook (Con)]

I am certainly well aware of that report and we will take into account any comments made and any evidence in it. We will also be doing quite a lot of talking to people who went into those polling stations and taking their views as we move through the review. What I have to say is that some local authorities were exceptional at reaching out to their communities in many different ways in order to ensure that people had full access to their polling stations We need to use that best practice across the whole of the local government sector.

Housing: Modular Construction

Baroness Scott of Bybrook Excerpts

Thursday 8th June 2023 Lords Chamber

[Lord Rooker]

To ask His Majesty’s Government whether they plan to improve the rates of home ownership by the use of modular construction techniques.

[The Parliamentary Under-Secretary of State, Department for Levelling Up, Housing & Communities (Baroness Scott of Bybrook) (Con)]

My Lords, the Government are committed to increasing the number of homes built using modern methods of construction—MMC—across all housing tenures. MMC offers a range of benefits, such as delivering high-quality energy-efficient homes more quickly, and the Government are supporting the sector with our £1.5 billion levelling up home building fund and providing funding for up to 40,000 MMC homes through the affordable homes programme to help deliver these benefits at scale.

[Lord Rooker (Lab)]

I thank the Minister for her Answer. Does she agree that modern methods of construction are safer for employees, create less waste and avoid the corner-cutting of Friday afternoons on wet building sites? However, the technology requires a systematic pipeline: you cannot switch factories on and off. Are the Government taking action to ensure that mortgage providers are confident in modern technology and, above all, that planning departments, which have a prejudice that remains today, accept modern technology?

[Baroness Scott of Bybrook (Con)]

I know that the noble Lord has been interested in this sector for many years. I assure him that the Government are taking this very seriously. We are focusing on removing all the barriers to growth. These are about insurance, finance, warranties and, as he mentioned, mortgages. It is all about stimulating that pipeline so that these companies can invest and keep those factories going until this becomes a normality in our housing system.

[Lord Young of Cookham (Con)]

My Lords, has my noble friend read the government publication Modern Methods of Construction, published in September last year? It says:

“The government is committed to using its position as the single largest construction client to support the adoption of a more productive and sustainable business model”,


and goes on to say that there is

“a presumption in favour of off-site construction for relevant departments”.

What progress have the Government been able to make in using MMC for the prison and hospital building programme? If there is success there, might it not encourage the housebuilding industry to take renewed interest in MMC for homes?

[Baroness Scott of Bybrook (Con)]

On my noble friend’s last point, that is exactly what we are doing: we are encouraging all the time through investment and support to help housebuilding. On other issues of building public buildings in particular, we want to encourage the take-up of MMC across the whole range of traditional building sites. We can do that by sharing across government. We have introduced a presumption in favour of MMC in our capital programmes, such as within the Department for Education’s school rebuilding programme and the Ministry of Defence accommodation programme. Significant progress has been made on schools and prisons programmes, and we are using those examples of best practice to help shape future policy for MMC.

[Lord Beith (LD)]

My Lords, in the social housing sector, Legal & General stopped production on the basis that there was an insufficient pipeline of orders and it had had six years of losses. What discussions are the Government having with the social housing sector to see whether modular construction can contribute not just to owner occupation but to dealing with a very serious shortage of social housing?

[Baroness Scott of Bybrook (Con)]

As I have said, it is across all sectors. We need to support the MMC sector to increase the amount of housing across the board, whether that be private, affordable or social rented.

[Baroness Taylor of Stevenage (Lab)]

My Lords, in recent discussions in your Lordships’ House and in Grand Committee, noble Lords have expressed huge concern about the Government’s plans to lower the standards of licensing for houses in multiple occupation, specifically those to be used for asylum seekers. Local councils are now using modular construction to provide high-quality, low-cost, self-contained accommodation for the homeless. Has the Minister considered this method of housing asylum seekers?

[Baroness Scott of Bybrook (Con)]

I am not aware that we have looked at this for asylum seekers particularly, but if there is a requirement for high-quality housing to be delivered quickly then we will of course work across government, as I said we are doing, to ensure that all departments look at MMC as a method of delivering quickly and safely.

[Lord Kamall (Con)]

What conversations have there been across government departments on the environmental impact of introducing modular housing, particularly the use of shipping containers for modular homes, which are seen to be a more environmentally friendly way of avoiding waste and providing homes for the future?

[Baroness Scott of Bybrook (Con)]

One of the main things with modular homes is that they are more environmentally friendly: they are energy efficient and use more environmentally friendly products. We need to keep pushing this to get this sector to be a far more major part of our whole building industry.

[Lord Patel (CB)]

My Lords, in 2019, the Science and Technology Select Committee produced a report on off-site construction. I am pleased to hear that the Government accepted the recommendation for procurement for government buildings to be on that basis. One of the other recommendations was on the skills gap that needs to be filled, particularly for the Government to work with the construction industry and the Construction Leadership Council to develop the skills that we require for off-site construction.

[Baroness Scott of Bybrook (Con)]

Skilling up in modern methods is extremely important for the whole construction industry. There are two ways that we are doing this. First, the Construction Industry Training Board levy applies to all employers engaged wholly or mainly in construction industry activities. Secondly, the Government’s apprenticeship levy funds slightly different activities, but these funds are ring-fenced to support apprenticeships across the whole construction industry, which is what we require to skill up the workforce to deliver what we want, particularly in MMC.

[Lord Sikka (Lab)]

My Lords, today, 62% of the population owns a home of any kind in the UK, compared with 71% in 2003. The main reason for that is the government-backed wage freezes. The real average wage today is lower than in 2007 and workers’ share of GDP is at a 50-year low. People simply cannot afford to buy a home. Can the Minister explain what steps the Government will take to increase workers’ share of GDP, which necessarily requires a reduction in capital’s share of GDP as well?

[Baroness Scott of Bybrook (Con)]

The question is slightly off-piste and I could be standing here for quite a long time answering it, but I will certainly ask the Treasury. The noble Lord mentions home ownership, which is really important. Since spring 2010, as I think I said yesterday, 837,000 households have been helped to purchase a home through government-backed schemes. That is the important bit. Continually putting up the living wage for people and encouraging them to be homeowners is something that this Government have done, and done well.

[Lord Sterling of Plaistow (Con)]

My Lords, I totally support the view of the noble Lord, Lord Rooker. One of my previous companies, Bovis, can erect a modular home in six weeks flat. They are wonderful places to live and hugely energy efficient; planning is the major problem.

[Baroness Scott of Bybrook (Con)]

My noble friend is absolutely right. These homes can go up quickly but the long period of time is often in the planning system. That is why the levelling-up Bill is going through, through which we hope to make the planning system simpler and quicker for developers.

[Lord Porter of Spalding (Con)]

My Lords, I declare my interests as on the register. Is there any evidence to show that planning is actually a barrier to modern methods of construction?

[Baroness Scott of Bybrook (Con)]

My noble friend would ask that question. I suggest that it is a barrier not just to this method of construction, although the sector needs to consider how it sells itself to the public. There is all this talk about MMC not being proper housing, whereas if anybody goes to see it they can see that it is beautiful housing. It is not ugly and can look like any other traditionally built house. However, the planning system needs to be faster for all types of construction, including MMC.

Housebuilding

Baroness Scott of Bybrook Excerpts

Wednesday 7th June 2023 Lords Chamber

[Lord Young of Cookham]

To ask His Majesty’s Government when they expect that they will reach their target of building 300,000 new homes a year.

[The Parliamentary Under-Secretary of State, Department for Levelling Up, Housing & Communities (Baroness Scott of Bybrook) (Con)]

My Lords, we are continuing to work towards our ambition of delivering 300,000 homes a year. This has always been a stretching ambition, and we have made strong progress: the three highest rates of annual supply in over 30 years have all come since 2018. We are aware that increasing supply even further will be made more difficult due to the economic challenges we face, but we are engaging with Homes England, developers and registered providers to understand the delivery challenges they face.

[Lord Young of Cookham (Con)]

Has my noble friend seen today’s Times, which reports that new housebuilding is at its lowest level for 14 years, outside the Covid years? Has a much-needed recovery not been delayed by the concession on planning made in another place to a number of government Back-Benchers, which has already resulted in over 50 local authorities withdrawing their local plans with a view to submitting new plans with a lower number? If a Government make a manifesto commitment to build 300,000 homes, can they rely simply on the good will of local authorities to deliver it, or should we amend the levelling-up Bill to ensure that the country gets the homes it needs?

[Baroness Scott of Bybrook (Con)]

My Lords, I will start at the end. The proposed changes to the planning system set out in the Levelling-up and Regeneration Bill are designed to support more areas to get an up-to-date local plan in place, and therefore deliver more housing. The Government do not recognise the figure on withdrawn plans. Pauses and delays to plan-making are not something new, which is why we are determined, through our reforms, to reinvigorate local plan-making by simplifying it, speeding it up and strengthening the weight of democratically produced plans in this country. As for the article in the Times, yes, I have seen it and all I can say is that we still want to build more homes of the right type in the right places. We know that increasing housing supply will be made more difficult because of economic challenges, but we are working with the market very closely on the impacts, and to see what more the Government can do to provide support.

[The Lord Speaker (Lord McFall of Alcluith)]

My Lords, we have a virtual contribution from the noble Lord, Lord Campbell-Savours.

--- Later in debate ---

[Lord Campbell-Savours (Lab) [V]]

My Lords, could not a land commission be established to research what the impact would be of building on land acquired at agricultural prices, as proposed by Lisa Nandy, and sold for housing of a new form of ownership title, as I proposed in previous debates in the House? Only by that means can we guarantee the target of the noble Lord, Lord Young of Cookham, thereby providing affordable housing to a new generation of young people who, without inherited wealth, may never be home owners.

[Baroness Scott of Bybrook (Con)]

The Government need to look at all opportunities for housebuilding but we have to look at brownfield land first, before agricultural land.

[Lord Bird (CB)]

Are the Government looking at the possibility of expanding home ownership to groups of people who do not have that chance at the moment, thereby creating greater sociability out of poverty, because home ownership is one of the best ways of ending poverty?

[Baroness Scott of Bybrook (Con)]

I absolutely agree with the noble Lord, and this Government are committed to supporting home ownership and first-time buyers. Since spring 2010, more than 837,000 households have been helped to buy their own home through the government-backed schemes, including Help to Buy and Right to Buy. We have looked at stamp duty and made that much more positive for first-time buyers, and I believe we are spreading the opportunity to more people through our First Homes Scheme, giving a minimum of 30% discount to people who cannot otherwise afford to buy in their areas. That is what we are doing to support home ownership.

[Lord Mackenzie of Framwellgate (Non-Afl)]

My Lords—

[Lord Porter of Spalding (Con)]

My Lords, I draw attention to my interests in the register. May I point out to my noble friend that Governments do not build houses—the private sector builds them? The private sector will build only when it thinks there is a market for them. The Bank of England’s crashing of interest rates in its failed policy to drive down inflation is not going to be the solution. My noble friend must remember that the only time this country has ever delivered 300,000 units a year was when councils were freed up to deliver 70,000 or 80,000 units. Her department has removed two of the historic barriers, but will she look at removing the third? We removed the cap on right-to-buy receipts being spent—councils can now spend 100%, which is brilliant—and the cap on councils borrowing against the existing value, but we still need to remove the cap on their ability to set locally determined discounts.

[Baroness Scott of Bybrook (Con)]

My noble friend is right: it takes a whole government, and many departments of government, to ensure that we have housing supply. DLUHC and the Housing Minister cannot do it on their own, so we need to work across government. As far as local authorities are concerned, my noble friend is right that we are removing the barriers and local authorities are now building houses.

--- Later in debate ---

[Baroness Warwick of Undercliffe (Lab)]

My Lords, following on from the noble Lord, Lord Campbell-Savours, the recent proposal by the Labour Party to remove hope value would allow social landlords more easily to develop the affordable homes our country so badly needs. Fewer than 7,000 were built last year but we need 90,000 every year, so it is not surprising that these proposed reforms are supported by a wide range of organisations, including the National Housing Federation and Shelter. What assessment have the Government made of the impact of high land values on our ability to deliver new social housing?

[Baroness Scott of Bybrook (Con)]

The noble Baroness has been involved in some of the Committee sessions of the levelling-up Bill, and she will know that we are looking at hope value and land prices. The Government particularly recognise the need for homes for social rent. That is why social rent homes were brought into the scope of the affordable homes programme, for example, in 2018. As I say, the levelling-up White Paper committed to looking at ways to increase the supply of social rented homes.

[Baroness Thornhill (LD)]

My Lords, 40 years ago SME builders built 40% of all new homes. Today the figure is around 10%. The Minister might therefore understand my disappointment that the Government have not accepted my amendment to the levelling-up Bill that would assist SMEs to build on small sites. Will she offer assurances today that the new NPPF, which is being revised and will appear soon, I hope, will have something in it to give SMEs hope that they can get back to building at scale?

[Baroness Scott of Bybrook (Con)]

I am not going to get into what will and will not be in the NPPF at this time. What I can say about government support for SMEs is what we are doing at the moment. We have launched the Levelling Up Home Building Fund, which is providing £1.5 billion in development finance to SMEs and MMC builders and supporting them to deliver more homes. As the noble Baroness said, the Levelling-up and Regeneration Bill will make changes to the planning system that will support SMEs by making the planning process faster and far more predictable.

[Lord Naseby (Con)]

My Lords—

--- Later in debate ---

[Lord Birt (CB)]

My Lords, we have long had a housing crisis. Hundreds of thousands are homeless, millions are living in substandard and overcrowded accommodation, there are 2 million fewer social housing units than some decades ago and home ownership among the young has fallen dramatically. Does the Minister agree that we need to create many more than 300,000 new dwellings per year if we are to achieve a reasonable equilibrium in reasonable time in the UK’s housing market?

[Baroness Scott of Bybrook (Con)]

The Government’s view is that we need to deliver 300,000 houses per year by the middle of 2025. The noble Lord is right that we then need to look again at those numbers. The key to this is that local authorities look at the housing need in their areas and build to that housing need.