Houses in Multiple Occupation (Asylum-Seeker Accommodation) (England) Regulations 2023
Baroness Scott of Bybrook Excerpts(1 year, 6 months ago)
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Baroness Scott of Bybrook
That the draft Regulations laid before the House on 30 March be approved.
Relevant document: 37th Report from the Secondary Legislation Scrutiny Committee (special attention drawn to the instrument). Considered in Grand Committee on 16 May.
Levelling-up and Regeneration Bill
Baroness Scott of Bybrook ExcerptsWednesday 24th May 2023
(1 year, 7 months ago)
Grand CommitteeRead Full debate Levelling-up and Regeneration Act 2023 View all Levelling-up and Regeneration Act 2023 Debates Read Hansard Text Read Debate Ministerial Extracts Amendment Paper: HL Bill 84-XIV Fourteenth marshalled list for Committee - (18 May 2023)
Lord Kennedy of Southwark (Lab Co-op)
My Lords, I have made only one intervention in Committee, which was on my pet subject: leasehold. I will not do that today. First, I will get on the record a number of interests. I am a vice-president of the Local Government Association, the chair of a housing association in Kent, and a director of MHS Homes, as set out in the register.
I offer my full support to the right reverend Prelate in her amendments. This is one of these debates where all sides of the Committee are happy to come together. They can see the sense of the amendments and, as the noble Lord pointed out, they are easy amendments for the government to agree. There is no cost to the Government and they are passive—no one has to do anything at all. However, the amendments would allow people to do something if they want, which is the good thing about them.
I hope that, as the noble Lord, Lord Stunell, said, we will get a positive response from the Minister—at least a commitment to meet people, go back and talk to officials, and bring back a government amendment that deals with this issue and provides for clarity. That is what these amendments are all about: providing clarity on an unclear issue. I know that the Government would want to ensure that things are clear.
I should say that I was brought up a Catholic. I grew up in Elephant and Castle in south London. I would probably describe myself as a lapsed Catholic, but I was brought up as a Catholic and come from a large, Irish Catholic family. My two younger brothers and my sister regularly attended the youth club at St Paul’s, in Lorrimore Square, run by the Reverend Shaw—a wonderful man who retired a few years ago. He set up the youth club and a mental health drop-in centre. When he retired, I had become a local councillor. We went to his retirement do and you could not move in the place. There was a complete cross-section of the community—people of different faiths and of no faith. Everyone there knew what this man had done in that parish church in the Walworth area of south London. He had done everything. If you were a young person growing up in that part of south London, there was not really much else to do. This parish church had become the centre of the community. Why can it not be that if a local authority wants to support such a place, they can do so? It seems ridiculous that they cannot.
As we have said, this is about having clarity about what councils can and cannot do if they want to support different things. My experience as a councillor was many years ago, but I am conscious of the work that churches do now, as the right reverend Prelate set out herself. People in many different situations are going through difficult times and churches host different groups and organisations—people can go in just to have a cup of tea and be warm. Such places are really important in communities and, sometimes, all that is now there is the local parish church and the church hall.
I really hope that the Minister is convinced by what she has heard today. There have been many good arguments made around the Room. As the noble Lord, Lord Best, said, these amendments on their own would not do anything at all, but they would enable things to be done. I hope the noble Baroness will support them. I will leave it there.
The Parliamentary Under-Secretary of State, Department for Levelling Up, Housing & Communities (Baroness Scott of Bybrook) (Con)
My Lords, first, I thank the right reverend prelate the Bishop of Bristol, my noble friend Lord Cormack and the noble Lords, Lord Best and Lord Scriven, for raising these amendments. They highlight the confusion around the prohibition in the Local Government Act 1894 and therefore attempt to clarify the basis on which local authorities are able to provide support to churches and other places of worship.
Amendments 485, 505, 510 and 512 aim to do this by removing some of the wording from that Act. Amendment 504GJJ, which has been withdrawn from the Marshalled List, would have aimed to do that by providing that the powers in the 1894 Act could be used to provide support to places of worship to ensure that, where they are used to offer support and services that are of benefit to the wider community, the facilities could be maintained and operated safely and effectively by, for example, helping meet the costs of maintenance and repairs. However, the Government do not consider that these amendments would be effective in achieving these aims.
The intention of the Local Government Act 1894 was to provide a clear separation between the newly created civil parishes and what are now parochial church councils. However, the Government do not consider that it includes any general or specific provision that prohibits parish councils from funding the maintenance and upkeep of churches and other religious buildings. Parish councils have other powers that enable their contribution towards the upkeep of these buildings, if it were deemed to be within their local communities’ interest to do so. However, I understand the confusion and I thank the noble Lords who have raised these amendments. We have heard their concerns that the law may be ambiguous, and I know this is of great concern to parishes and noble Lords. I can assure them that we in the department are considering this issue carefully and will reflect on the comments made during this debate.
Lord Kennedy of Southwark (Lab Co-op)
My Lords, that was, I think, half a good answer. It was not perfect, by any means.
Baroness Scott of Bybrook (Con)
I am pretty sure the noble Lord opposite knows that I will not say anything further today, apart from the fact that we have had many talks with the National Association of Local Councils and interested churches, and we will continue to do so as we move to Report.
The Lord Bishop of Bristol
My Lords, I thank the Minister and my fellow sponsors for a useful and effective debate. I thank them for their support in clarifying the law. Rather naughtily, I wonder, if there is not yet enough commitment for the Government to bring their own proposals, whether the Government might fund the legal case that might otherwise be necessary to create clarity on this issue. I hope that the Minister hears that there is real confusion in localities about this and there is inhibition to supporting these ecclesiastical charities.
I hope very much that the Government will be persuaded to bring their own amendments on Report. My fellow sponsors and I stand ready to offer to help in any way. For instance, we could convene representatives of not just the Church of England but other denominations. I am grateful to the noble Lords, Lord Stunell and Lord Kennedy, for mentioning the ecumenical aspect of this. At this stage, it is necessary to achieve the clarity that the noble Lord, Lord Kennedy, very pointedly mentioned. I look forward to working with the Minister and her team ahead of Report; I hope that will be possible.
I conclude that these amendments are necessary, as I have stated. They would enable all Christian denominations, like all other faith communities, to continue to live out their calling and provide a space to support those in need in their communities. However, I beg leave to withdraw the amendment standing in my name on the Order Paper.
Baroness Scott of Bybrook (Con)
My Lords, I am glad to address the important issue of no-fault evictions in response to Amendment 492 from the noble Baroness, Lady Taylor of Stevenage. The Government strongly feel that the threat of eviction means that renters cannot feel secure in their homes and that many do not have the confidence to challenge their landlords on poor standards.
For this reason, the Government have introduced the Renters (Reform) Bill, which will abolish Section 21 no-fault evictions. This was introduced in the other place on Wednesday 17 May. To answer the noble Lord, Lord Foster of Bath, that Bill has only just started and it has not begun substantive debate in the other place. Subject to that—and we anticipate that the Bill will proceed at the normal pace—it will be before your Lordships’ House in the next Session after the King’s Speech.
The Commons Levelling Up, Housing and Communities Select Committee recently published a report on the private rented sector. The Government are grateful for this and look forward to responding shortly. In the light of our upcoming response and legislation, we do not think that the review proposed in the amendment would add any further detail to the debate. I reassure noble Lords that the Government’s commitment to abolish no-fault evictions is unwavering and that there will be ample opportunity for scrutiny of this legislation.
In response to Amendment 504GJF, which the noble Baroness, Lady Taylor of Stevenage, spoke to, I assure her that the Government are clear that no one should be criminalised simply for having nowhere to live. We have committed to repealing the Vagrancy Act, which is outdated and not fit for purpose. However, we have been clear that we will repeal the Act once suitable replacement legislation has been brought forward. This is so we can ensure that the police, local authorities and other agencies have the tools they need to respond effectively to begging and rough sleeping, so that they can keep their communities safe, restore pride in place and direct vulnerable individuals to the support they need.
Last year, we consulted on options for replacement legislation. We have considered these responses alongside other feedback from stakeholders and continue to give these complex issues careful consideration. Provisions relating to the Vagrancy Act have therefore been removed from this Bill and replacement powers will be the matter of separate legislation.
In the meantime, the Government have made the unprecedented commitment to end rough sleeping within this Parliament. We remain steadfastly committed to that goal. In September, we published a bold, new rough sleeping strategy, backed by £2 billion, which sets out how we will end rough sleeping for good. The Government’s Anti-Social Behaviour Action Plan, published on 27 March, reconfirms this commitment. It also sets out our intention to bring forward new powers to tackle begging and rough sleeping, with the detail to be brought forward in future legislation, which will be subject to full parliamentary scrutiny.
I hope this provides reassurance for the noble Baroness, Lady Taylor of Stevenage, and that she will withdraw her amendment.
Baroness Taylor of Stevenage (Lab)
My Lords, I am not going to say that I am grateful for the reply on this occasion because it was really disappointing. We have here a mechanism that we can use to do two things that there is broad consensus about in your Lordships’ House, one of which has already been passed through legislation, which is to repeal the Vagrancy Act, and the other of which is subject to new government legislation but could be done much more quickly by using this Bill. On the Vagrancy Act, as the noble Lord, Lord Foster, and I mentioned, 1,000 people were arrested under it during the course of last year, and on no-fault evictions, families are living in misery now. Anyone who has been a councillor—I know the Minister has been—will have heard the terribly distressing stories from families when they get evicted and end up finding it very difficult to find somewhere else to live.
When we went through the Covid crisis, I was very pleased to see the Government taking immediate action with their “Everyone In” programme, getting people sleeping rough into accommodation as quickly as possible. We have the opportunity to build on that, but rough sleeping is already starting to go up again. Why not take the opportunity of this Bill to do something about it now? Can the Minister tell us how many people are sleeping rough tonight, or any night in the coming week? If you can do something about this, why would you not?
The noble Lord, Lord Best, rightly mentioned that a number of powers have been introduced in recent Acts, particularly the Anti-Social Behaviour, Crime and Policing Act 2014, that already allow the police to address anti-social begging, and there are powers for councils to set aside areas where they do not allow people to hang around. There are lots of powers already. We do not need any more powers; we need the Government to get on and scrap this 200 year-old Act that criminalises those who are sleeping rough. The postponement of this repeal for over a year is already far too long. I shall withdraw my amendment for today, but I am sure that we will come back to this on Report.
“(ja) under section (Power to replace Health and Safety Executive as building safety regulator);”Member’s explanatory statement
This amendment provides that any regulations made under the new Clause inserted by the amendment in the Minister’s name after Clause 214 (Power to replace Health and Safety Executive as building safety regulator) are subject to the affirmative procedure.
Member’s explanatory statement
This amendment provides that the new power in the amendment in the minister’s name to make regulations to modify the Town and Country Planning (Environmental Impact Assessment) Regulations 2017 extends to England and Wales, Scotland and Northern Ireland.
“(aa) in Schedule 4—(i) if a provision amended by any of paragraphs 51, 55, 56 and 57 has not come into force before the end of the period mentioned in paragraph (b), that paragraph comes into force when the provision that it amends comes into force (but otherwise it comes into force at the end of that period);(ii) paragraphs 59 to 63 come into force on such day as the Secretary of State may by regulations appoint;”Member’s explanatory statement
This amendment makes provision for the commencement of certain amendments made by Schedule 4 in cases where the provisions amended are not yet in force.
Member’s explanatory statement
This amendment provides that the new power in the amendment in the minister’s name to make regulations to modify the Town and Country Planning (Environmental Impact Assessment) Regulations 2017 comes into force two months after Royal Assent.
Member’s explanatory statement
This amendment amends the long title to reflect the new Clause inserted by the amendment in the Minister’s name after Clause 214 (Power to replace Health and Safety Executive as building safety regulator).
Windrush Generation: 75th Anniversary
Baroness Scott of Bybrook Excerpts(1 year, 7 months ago)
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Baroness Berridge
To ask His Majesty’s Government what plans they have to celebrate the 75th anniversary of the arrival of the Windrush generation on 22 June, and what progress they have made in relation to those plans.
The Parliamentary Under-Secretary of State, Department for Levelling Up, Housing & Communities (Baroness Scott of Bybrook) (Con)
My Lords, we expect Windrush Day 2023 to be a bigger national event than any year to date. In January, the Government announced that they are increasing this year’s Windrush Day grant scheme from £500,000 to £750,000 to mark the 75th anniversary, with funds aimed at commemorating, celebrating and educating people about the contribution of the Windrush generation and their descendants. We will announce all successful projects shortly. In addition, we are progressing several further events across government to celebrate and honour the Windrush legacy on this important milestone.
Baroness Berridge (Con)
I am very grateful to the Minister, particularly for the additional funds that have been made available. As I am sure she is aware, many of that generation came for better education and opportunities for their children, so it is sad to note that the Commission on Race and Ethnic Disparities found that the only ethnic minority group not out- performing their white counterparts at age 16 is the black Caribbean and mixed white and black Caribbean cohort. Can the Minister please ask whether Windrush scholarships, in FE as well as HE, could be established?
Baroness Scott of Bybrook (Con)
My noble friend brings up a really interesting idea, and I will certainly take it back to my colleagues in the Home Office. I am pleased the Minister in question is sitting here, and I hope he is listening carefully because I think that would be a very nice idea for the 75th anniversary.
Baroness Benjamin (LD)
My Lords, I wrote to the Prime Minister in February suggesting that, like his predecessors, he host a reception at No. 10 to celebrate Windrush Day and to meet the Windrush community and Windrush victims to hear their harrowing stories. I have not received a reply. He did not attend the Stephen Lawrence 30th memorial service, despite being down to speak. The Windrush community is questioning his support for them, so can the Minister assure the House that the Prime Minister is intending to demonstrate that he cares about the Windrush 75th anniversary?
Baroness Scott of Bybrook (Con)
I am afraid I cannot give that sort of information about what the Prime Minister is doing for Windrush, but I can say that across government there are numerous events going on. For a start, the Foreign Secretary has visited Jamaica only recently and discussed the positive contribution that Caribbean immigration had made to the fabric of the UK. The Ministry of Defence is using Windrush 75 as part of its Armed Forces Week, and we will be announcing plans in due course about what other departments will be doing to celebrate.
Baroness Chakrabarti (Lab)
My Lords, in addition to parties and such celebrations, which I am sure we all welcome, might the Government not remember the Windrush generation by adequately compensating all those who are still waiting for justice—and not getting any younger?
Baroness Scott of Bybrook (Con)
We are paying out continually under the compensation scheme, and the Home Office continues to make improvements to how easily people can access that scheme. We have paid out £59.55 million across 1,599 claims to the end of March 2023, a further £11.11 million has been offered and is awaiting acceptance, and a final decision has been made on 62% of the claims—so we are working on this. We are working with claimants on how we can make it easier and will continue to do so.
Lord Kamall (Con)
I thank my noble friend the Minister for sharing the plans to celebrate the Windrush generation, but can we make sure that we celebrate the full diversity of that generation—not just the Afro-Caribbeans but the Indo-Caribbeans and Chinese-Caribbeans who came to the UK and worked in public services? I declare a personal interest in that my father came in 1952 on two boats: one from Guyana to Trinidad, and then one from Trinidad to the UK.
Baroness Scott of Bybrook (Con)
My noble friend is absolutely right that we should celebrate the whole generation and that group of communities. Looking at what is happening in London and Birmingham, I am sure that all those communities will be represented and celebrated.
Lord Dobbs (Con)
My Lords, is my noble friend aware of the beautiful statue in Waterloo station commemorating the Windrush generation? It shows a father looking forward with ambition and determination, accompanied by a mother and a young daughter looking around with expectation and trepidation. They are standing on a pile of suitcases, which mark all their possessions in the world. There is an accompanying poem called “You Called … We Came”.
I hear the Minister’s reflections on the amount that has already been paid out, but there are still some outstanding claims. One wonders whether it is bureaucratic difficulties, rather than genuine will, driving that. Could not all those outstanding claims be settled almost in an afternoon, with people—including Ministers, with all their genuine determination to get this fixed—sat around a table, rather than having the ongoing questions that the noble Baroness, Lady Chakrabarti, has asked about when this will finally be settled?
Baroness Scott of Bybrook (Con)
First, yes, the monument is beautiful; if anybody has not seen it, they should do so. It is very moving and beautiful. The Home Office is making the compensation payments as quickly as possible, but each person’s claim is deeply personal and deserves to be processed with the utmost care and sensitivity, so that the maximum payment can be made to them. That is the way we are going to deal with these claims.
The Lord Bishop of Chelmsford
My Lords, the way that this country welcomes a stranger has never been more important, as we will be reminded later today when we debate the Illegal Migration Bill. Why are His Majesty’s Government, but more specifically the Home Secretary, rowing back on the commitments they made following the Windrush Lessons Learned Review, especially on the establishment of a new migrants’ commissioner?
Baroness Scott of Bybrook (Con)
The right reverend Prelate is referring to the Wendy Williams recommendations. Home Office officials looked at them and recommended to the Home Secretary that three of them are not needed. Extensive consideration has been given to how we deliver all the recommendations in an appropriate and meaningful way, ensuring that individuals have the opportunities to tell all their stories, amplifying the voices of individuals, engaging with the immigration system and driving scrutiny of the department. We think that those recommendations are unnecessary at the moment.
Lord Khan of Burnley (Lab)
My Lords, we all owe enormous gratitude to the Windrush generation, who played a pivotal role in rebuilding the Britain that we know today. The Minister may recall that, during a debate in January, I asked her for a timetable for the Home Office’s implementation of the Wendy Williams recommendations. Unfortunately, less than a week later, the Home Secretary announced that some measures would not be delivered. I ask the Minister today for an update on the implementation of the measures the Government are committed to. It is tragic that the Home Secretary has not learned the lessons of that appalling scandal. Are the Government still not introducing the proposed safeguards to strengthen the borders inspectorate?
Baroness Scott of Bybrook (Con)
As I said in a previous answer, we will not be implementing those three recommendations. I probably have not got time to address here how far we have got with the other recommendations, but I will write to the noble Lord once I get that detailed information from the Home Office.
Baroness Blower (Lab)
Does the Minister agree that on the occasion of this anniversary, it would be extremely fitting for His Majesty’s Government to announce that anti-racism should be an explicit part of the national curriculum, to be taught in all our schools in England?
Baroness Scott of Bybrook (Con)
That should be discussed and decided by the Department for Education; but now, when we are celebrating the wonderful part that the Windrush generation has played in our society, is not the time for us to discuss that.
Lord Polak (Con)
My Lords, the 75th anniversary is perhaps a good moment for the Government to look at the issue of frozen pensions. Many people came over, helped to rebuild Britain, went back to retire in their home countries in the Caribbean and found that their pensions had been frozen, thereby missing out on thousands of pounds. Can the Minister go back to the department and find a way to alleviate this problem?
Baroness Scott of Bybrook (Con)
Yes, my noble friend is right: it is an issue and a problem. I will make sure that the Home Office is working on it and we will give him an update.
Levelling-up and Regeneration Bill
Baroness Scott of Bybrook ExcerptsMonday 22nd May 2023
(1 year, 7 months ago)
Lords ChamberRead Full debate Levelling-up and Regeneration Act 2023 View all Levelling-up and Regeneration Act 2023 Debates Read Hansard Text Watch Debate Read Debate Ministerial Extracts Amendment Paper: HL Bill 84-XIV Fourteenth marshalled list for Committee - (18 May 2023)
Baroness Scott of Bybrook (Con)
My Lords, I start by addressing Amendments 415, 416 and 417 in the name of the noble Baroness, Lady Taylor of Stevenage. Clause 176 sets out the criteria and conditions that must be met before high street or town centre designation can be made. Local authorities are uniquely placed to make this designation based on their deep knowledge of their area and we must empower them to do so. The needs of both local people and local businesses may have also been considered by local authorities in the development of their local plans and regeneration programmes. These amendments add complexity and burdens for local authorities, so the Government are not able to support them, or Amendment 437, which is consequential on 415 and 417.
Amendment 418 in the name of the noble and learned Lord, Lord Etherton, seeks to clarify what is meant by “occupied” for the purpose of assessing the vacancy condition. Clause 178(4) is aimed at excluding occupation by trespassers or property guardians for the purpose of this assessment. Amendment 418 would refine that position so that this type of occupation can count where the landlord is taking steps to remove such occupiers through possession proceedings. The Government see these exclusions as necessary to ensure the policy aims of filling commercial premises for high street uses. We also consider it reasonable to expect landlords to keep their premises secure to prevent squatters, or to take court action where necessary. The Government recognise that there may be more complicated cases of trespassers, but we also consider that many local authorities are unlikely to conduct a high street rental auction on a property that has such complications. While the Government do not feel able to support this amendment at this time, I would add that we do recognise that there may be many challenges caused to landlords by trespassers. We trust local authorities to use these permissive powers sensibly where there are complications caused by certain types of trespassers. I have listened to the noble and learned Lord, and I will give his amendments further consideration.
Amendments 419 and 424, in the name of the noble Baroness, Lady Hayman of Ullock, seek to remove the Henry VIII powers for the Secretary of State to alter the circumstances of vacancy, and the flexibility within grounds of appeal, which are set out in Schedule 16. This power may be needed in future in the light of experience in operation: for example, to alter the vacancy period to ensure that it is targeting the right premises and can respond to changing market conditions; or, in the case of grounds of appeal, where there may be a need to increase the safeguards available to landlords, or to revise these grounds where they are found to undermine effectiveness. We appreciate the importance of parliamentary scrutiny regarding the grounds of appeal, and any amendment will be subject to the affirmative procedure. In the light of that, the Government are not able to support this amendment.
Amendment 420 amends the local benefit condition in Clause 179 so that a property can be let only if it supports regeneration. Currently, the local benefit condition will be satisfied if the local authority considers that occupation of the premises for a suitable high street use would be beneficial to the local economy, society or environment. The local benefit condition is framed by reference to aims that are usually associated with regeneration. Another statutory example demonstrating the use of similar language is Section 226 of the Town and Country Planning Act 1990. We wish to avoid introducing further considerations for local authorities, inadvertently narrowing the scope; so the Government cannot support this amendment.
Amendments 421 and 423 reduce the period after which an initial letting notice would expire and the period of time after which a final letting notice can be issued. We consider that making the process too quick will place an unreasonable strain on local authorities that are looking to exercise these powers. We also do not consider that these reduced timescales will provide the landlord with a reasonable amount of time to let the premises themselves and, in appropriate cases, to work with the local authority, increasing the risk that high street properties go through the auction process unnecessarily.
Amendment 422 would prevent landlords from transferring premises between related entities while an initial letting notice was in force. An initial letting notice is not affected by any change in landlord, as made clear by Clause 199(7). We do not want high street rental auctions to prevent landlords from selling their interest in the property, provided that the initial letting notice continues to bind.
Amendment 426, in the name of the noble Earl, Lord Lytton, would add a further ground for appeal against the use of a high street rental auction. Schedule 16 sets out the grounds on which a landlord can appeal against a final letting notice. The amendment would require local authorities to consider whether a landlord had taken reasonable steps to rent the property before undertaking a high street rental auction, preventing them from taking place where a landlord has done so. The amendment would introduce a complex test which could place significant burdens on a local authority and would likely discourage use and lead to it becoming ineffective. There is already a wide range of grounds for appeal, which ensures fairness for landlords. The amendment also raises matters that should feed into a ground of appeal, such as planning. These matters are already being given careful consideration by the Government. In the case of planning, the Government are currently consulting on extending permitted development rights.
Amendment 427 would require that regulations relating to the rental auction process were laid within 90 days of Royal Assent. Clause 188 sets out the principles of the rental auction process. Significant detail in relation to the process will need to be provided, which will be more appropriately dealt with through regulations. While we will make regulations as soon as possible, it is not possible to commit to a timeline of 90 days because the regulations will be informed by extensive engagement with the sector, which will then need to be reflected in the drafting of those regulations. The Government are therefore not able to support this amendment.
On Amendment 429, we consider it more appropriate to provide landlords with a general entitlement to seek compensation for damage where local authorities have exercised their power of entry and to let the Upper Tribunal decide whether there are any circumstances affecting the landlord’s entitlement to compensation, rather than providing specific exemptions. That is the approach adopted in other legislation, such as the compensation provisions in Section 176 of the Housing and Planning Act 2016, which relate to the power to enter and survey land. The Government do not feel able to support this amendment.
On Amendment 430, I assure noble Lords that high street rental auctions are being designed to minimise costs incurred by local authorities by streamlining the process and through distributing the costs across landlords and tenants. We agree with the intention of the amendment, which is why the high street rental auction consultation contains questions relating to the distribution of the associated costs and details of a standardised lease, and it would be inappropriate to pre-empt the result of the consultation. We are also making up to £2 million of funding available for support with the costs of rental auctions, and full details of this will be announced in due course. The Government are therefore not able to support this amendment.
On Amendments 431, 432, 433, 434, 435 and 436, the measures in the Bill seek to support lively high streets with activity that attracts people and businesses and avoids long-term vacancies, complementing existing government support that directly addresses the concerns raised in these amendments. There is support available to regenerate high streets, including £3.6 billion-worth of investment in the towns fund, a £4.8 billion investment in the levelling-up fund and a £2.6 billion investment in the shared prosperity fund. That is together with the £13.6 billion support package, announced in the Budget this year, to protect ratepayers facing bill increases over the next five years.
The High Streets Task Force continues to provide essential support to local leaders, with 123 local authorities having received expert advice in topics such as place-making and planning. I recognise that these amendments highlight key issues faced by many of our high streets, but I hope I have provided enough reassurance that these concerns are, or will be, addressed through current government actions.
Finally, in response to the noble Baroness, Lady Fox—
Baroness Pinnock (LD)
I apologise to the Minister for interrupting, but before she sits down, can she address this point? One of the key arguments made—in that group of amendments to which the noble Baroness referred—by the noble Baroness, Lady Hayman of Ullock, and by myself and my noble friends Lord Shipley and Lady Thornhill, was about the huge disparity in business rates between online retailers and high street town centre retailers. I will repeat a comparator that I have mentioned previously. A well-known online retailer—not many miles distant from me—pays £45 per square metre in business rates on its premises, whereas a small town high street shop near me pays £240 per square metre. It is that vast difference that is penalising our town centre shops. This is the heart of the problem that this clause is trying to address, and we are supportive of that—but unless we deal with this big difference, nothing much will change. I would be glad to hear from the Minister what the Government intend to do about business rates.
Baroness Scott of Bybrook (Con)
We are simplifying the issue of the high street. I have listened a number of times to what has been said about business rates, and I have explained how much the Government are putting in to supporting properties in the high street through the revaluation process, et cetera. The Government provide rate relief to help property owners all the time, but the issue of empty properties in the high street is much more complex than that, so there are a number of things we want to address, and one of them is what we are doing in this Bill.
I was saying that I will write to the noble Baroness, Lady Fox, because I would like some further information from the Department for Transport.
Baroness Hayman of Ullock (Lab)
My Lords, I thank all noble Lords who have taken part in this debate, which covered an important part of the levelling-up agenda. I am just thinking about the Minister’s comments. A number of times she said that it was not appropriate to accept the amendment at the moment because it pre-empted the findings of the consultation that was going on. I have said this before, but I think it would be helpful if legislation were brought forward after consultation, rather than during or before it, because that consultation could then inform the legislation. It just seems a bit backwards, as if it is around the wrong way.
Also, there are the levelling-up funds, the towns fund and various other funding pots, but they do not necessarily always go to the most needy or provide the long-term support that is needed. It is how we provide that long-term change that is important. Too often there are sticking plasters with bits of pots of money.
Workington is obviously a town near me; I used to be the Member of Parliament for Workington in the other place. An industry report by planning consultancy Marrons showed that Workington was near the bottom of the 360 provincial towns that it looked at. It has had some funding recently, for example from the levelling-up fund, and we are of course grateful for that, but the money is going to be spent on improving key routes, bringing in new cycling routes and building a new café. Well, that is lovely, but it will not solve the fact that Debenhams and Laura Ashley have gone. If people find they do not need to come into the town centre because those key shops have now closed, they are more likely to go somewhere else to shop. We really need to look at this in a much broader way. Again, that is why business rates are so very important and they are one of the main sticking points.
Again, on the issues around corporate landlords and pension funds, I absolutely agree with everything the noble Baroness, Lady Thornhill, said on those. We are pleased that the Government are looking to do something about empty shop units. As an example from where I used to live, two shops next door to each other are owned by the same landlady and have been empty for over 20 years, purely and simply because when her shops failed she did not want to let them out to anybody else. So the fact that the Government are trying to do something about this is important, but it has to be done with the support of local authorities and the local community and it has to be done in a way that genuinely makes a difference. It is also important, as other noble Lords have said, that we do not end up with exploitable loopholes or unintended consequences but do have proper oversight. Having said that, I beg leave to withdraw my amendment.
“Power to require provision of certain classes of information(1) Regulations may require the provision of information that is within the scope of a permitted purpose.(2) So far as the regulations are to extend to England and Wales, the permitted purposes are—(a) the beneficial ownership purpose (see section (The beneficial ownership purpose)),(b) the contractual control purpose (see section (The contractual control purpose)), and(c) the national security purpose (see section (The national security purpose)).(3) So far as the regulations are to extend to Scotland or Northern Ireland, the only permitted purpose is the national security purpose.(4) Regulations under this section must, for each requirement they impose, specify—(a) the person on whom the requirement falls,(b) the occurrence or circumstances that gives or give rise to the requirement,(c) the time limit for complying with the requirement, and(d) the person to whom the required information is to be provided.(5) The occurrence or circumstances specified under subsection (4)(b)—(a) must, in the case of a requirement to provide information within the scope of the national security purpose, and(b) in any other case may,be (or include) the giving of a notice in accordance with the regulations to the person on whom the requirement falls.(6) In relation to such cases, the regulations may also make provision deeming notice to have been given at a certain time in certain circumstances.(7) The person specified under subsection (4)(d) must be—(a) the Chief Land Registrar, or(b) another person exercising public functions on behalf of the Crown.(8) Regulations under this section may—(a) make provision about how information is to be provided (including provision requiring it to be provided by electronic means specified in the regulations);(b) provide for, or make provision about, the application of the regulations to persons outside, or information held outside, the United Kingdom; (c) relate to things done or arising before the coming into force of this section.”Member's explanatory statement
This new Clause and the other new Clauses in the Minister’s name before Clause 204 recast the powers in Part 11 so as to make them exercisable only for stated purposes (along with other minor changes).
Baroness Scott of Bybrook (Con)
My Lords, I am pleased to introduce government Amendments 438A, 440ZA, 440ZC, 440B and 440E, which provide clarity and certainty about how the powers relating to interests and dealings in land can and will be used.
First, the Secretary of State will have the ability to require by regulations the disclosure of beneficial ownership information, where it is not already available. These changes will supplement and reinforce the current transparency regime. Secondly, the amendments give the Secretary of State the ability to create regulations to require information on certain arrangements which control land, short of outright ownership. This will enhance the available information on those arrangements. Thirdly, the amendments would allow regulations to enable the Secretary of State to require certain details of ownership and control about a property, where it appears to the Secretary of State that there is a national security threat linked to that property. That could apply, for example, to critical national infrastructure or sensitive sites.
Baroness Hayman of Ullock (Lab)
My Lords, I have a couple of amendments in this group. We have heard that Part 11 sets out a framework for creating powers to require disclosure of certain relevant information relating to ownership and control of land in England and Wales, including transactional information. Of course, if this is implemented, it is another significant layer of disclosure around land ownership and control in England and Wales, supplementing the information that is currently held or is going to be held in a number of public registries. It appears that the Government’s ultimate goal here is to ensure transparency around land ownership and control in England and Wales. We would support this aim.
My Amendment 440 probes the retrospective application of this section. As drafted, the provisions could require the disclosure of information relating to events prior to the enactment of the Bill. Clause 206(4) says:
“Regulations under section 204 or 205 may relate to things done or arising before the coming into force of this Part”.
This amendment probes the benefits of doing this retrospective application and what the Government are aiming to achieve through this.
My second amendment, Amendment 439, probes how local communities can request land ownership information. It would be really helpful if the Minister could provide a bit more information for us to understand how communities are expected to access this information and how that fits in with the role of the Secretary of State.
I thank the Minister for her thorough introduction to the government amendments. Amendments 438A, 438B, 438C, 438D and so on insert clauses before Clause 204. They
“recast the powers in Part 11 so as to make them exercisable only for stated purposes”.
Do these provisions apply to government agencies, such as Homes England, as well? If conditions are attached, they can get in the way when regeneration schemes are being considered. It would be good to have some clarification on that point.
We would support the noble and learned Lord, Lord Hope of Craighead, in what he is trying to achieve in Amendment 440A. If the Minister could either provide clarification to the noble and learned Lord or look at tightening up the wording, as he suggests, that would be extremely helpful.
Baroness Scott of Bybrook (Con)
My Lords, in response to Amendment 439 in the name of the noble Baroness, Lady Hayman of Ullock, I confirm that it will be in the public interest for some of the information that is collected to be published. For example, we intend to publish data on arrangements such as option agreements that developers and others have over land. However, there is some information that we will not be able to publish, so we need to strike the balance between transparency, legitimate privacy, confidentiality and practical or security considerations. Therefore, some information will be shared only
“with persons exercising functions of a public nature, for use for the purposes of such functions”.
At this stage, I want to answer a couple of questions from the noble Baroness, Lady Pinnock. She asked why we need beneficial ownership. We believe that the property market in England and Wales should be fair and transparent. A lack of transparency can make it hard to identify rogue landlords, the owners of empty properties and those liable under the Building Safety Act, and it can leave the market vulnerable to criminal activity. We believe that this will deter individuals from using complex structures to obscure ownership of property, and it will provide criminal offences and sanctions for failure to comply.
“The beneficial ownership purpose(1) Information is within the scope of the beneficial ownership purpose if it appears to the Secretary of State that the information would be useful for the purpose of— (a) identifying persons who are beneficial owners of land in England or Wales, or(b) understanding the relationship of those persons with the land that they beneficially own.(2) For the purposes of this section, a person beneficially owns land if either of the following subsections applies.(3) This subsection applies where—(a) the land is owned by a body corporate or partnership, and(b) the person is, in relation to that body corporate or partnership, a beneficial owner within the meaning given by regulation 5 of the Money Laundering Regulations.(4) This subsection applies where—(a) the land is owned as part of—(i) a trust, foundation or similar legal arrangement, or(ii) the estate of a deceased person in the course of administration, and(b) the person is, in relation to that trust, foundation, arrangement or estate, a beneficial owner within the meaning given by regulation 6 of the Money Laundering Regulations.(5) In this section—(a) expressions that are also used in regulation 5 or 6 of the Money Laundering Regulations have the same meaning as in that regulation;(b) references to ownership of land (except references to beneficial ownership) are to the legal ownership of a freehold or leasehold estate in the land;(c) “the Money Laundering Regulations” means the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (S.I. 2017/692).”Member's explanatory statement
See the explanatory statement for the first new Clause in the Minister’s name before Clause 204.
Member's explanatory statement
This amendment makes it clear that details of transactions involving land can be obtained under Part 11 (notwithstanding the recasting of the powers of that Part by the new Clauses in the Minister’s name before Clause 204).
Member's explanatory statement
This amendment is consequential on the first new clause in the Minister’s name before clause 204.
Member's explanatory statement
This amendment is consequential on the first new Clause in the Minister’s name before Clause 204.
“Offences(1) A person who, without reasonable excuse, fails to comply with a requirement imposed under section (Power to require provision of certain classes of information) commits an offence.(2) A person commits an offence if—(a) the person provides information in response to a requirement imposed under section (Power to require provision of certain classes of information),(b) the information is false or misleading in a material particular, and(c) the person knows that the information is false or misleading or is reckless as to whether it is. (3) But an offence under this section is committed under the law of a given jurisdiction only if the requirement in question is imposed by regulations extending to that jurisdiction.(4) A person who commits an offence under subsection (1) is liable—(a) on summary conviction in England and Wales, to imprisonment for a term not exceeding the maximum term for summary offences or a fine (or both);(b) on summary conviction in Scotland, to imprisonment for a term not exceeding 12 months or a fine not exceeding level 5 on the standard scale (or both);(c) on summary conviction in Northern Ireland, to imprisonment for a term not exceeding 6 months or a fine not exceeding level 5 on the standard scale (or both).(5) In subsection (4)(a), “the maximum term for summary offences” means—(a) if the offence is committed before the time when section 281(5) of the Criminal Justice Act 2003 comes into force, 6 months;(b) if the offence is committed after that time, 51 weeks.(6) A person guilty of an offence under subsection (2) is liable—(a) on summary conviction in England and Wales, to imprisonment for a term not exceeding the general limit in a magistrates’ court or a fine (or both);(b) on summary conviction in Scotland, to imprisonment for a term not exceeding 12 months or a fine not exceeding the statutory maximum (or both);(c) on summary conviction in Northern Ireland, to imprisonment for a term not exceeding 6 months or a fine not exceeding the statutory maximum (or both);(d) on conviction on indictment, to imprisonment for a term not exceeding two years or a fine (or both).(7) If—(a) an entity within subsection (8) commits an offence under this section, and(b) a person who is, or is purporting to act as, a relevant officer of the entity authorises or permits, participates in, or fails to take all reasonable steps to prevent the commission of the offence,that person also commits the offence.(8) The entities within this subsection are those specified in the first column of the following table; and “relevant officer”, in relation to such an entity, means a person acting in a capacity specified in the corresponding entry in the second column.
Entity | “Relevant officer” |
A company. | A director, manager, secretary or similar officer. |
A partnership. | A partner. |
A body corporate (other than a company) or unincorporated body whose affairs are managed by a governing body. | A member of the governing body. |
A body corporate (other than a company) or unincorporated body whose affairs are managed by its members. | A member. |
This new Clause provides offences of non-compliance with regulations under Part 11.
Member's explanatory statement
This amendment removes provision superseded by the new Clause in the Minister’s name after Clause 207.
Member's explanatory statement
This amendment removes a definition that is no longer required as a result of the new Clauses in the Minister’s name before Clause 204.
Member's explanatory statement
See the explanatory statement for the second amendment in the Minister’s name to Clause 209.
Member’s explanatory statement
This amendment is consequential on the amendment in the Minister’s name inserting new subsection (6A) into Clause 214.
Baroness Scott of Bybrook (Con)
My Lords, Amendments 467B and 467C address consequential amendments to the marine licensing cost recovery powers. Clause 214 gives the Secretary of State fee-charging powers for post-consent marine licence monitoring, variations and transfers. We are now adding a consequential amendment to clarify the position where there is an overlap between the general post-consent marine licensing fees and oil and gas marine licensing fees for the same activity, to provide that the oil and gas fees will apply in those circumstances.
Amendments 467D, 467E, 504GK, 504M, 509D and 513 will support the Government’s response to the eventual recommendations from the Grenfell Tower inquiry. The Building Safety Act 2022 set up the building safety regulator and its functions within the Health and Safety Executive. We continue to support the Health and Safety Executive in delivering these new functions, and I take this opportunity to thank it for its work over the last two years. To future-proof the building safety regulator and its critical work and protect the other important work of the Health and Safety Executive, the Government consider it essential that we have the option to move the building safety regulator to an existing or new body in the future. This will allow the Government to respond quickly, if needed, to the Grenfell Tower inquiry, which we expect to be published at the end of this year. I recognise that there will be concerns about how broad these powers are. To provide reassurance, the powers are affirmative and include a 24-month sunset provision, which can be extended only if needed and only after Parliament’s consideration.
In speaking to Amendment 467F, which introduces a new clause after Clause 214, I will speak also to Amendments 509C, 504N and 514. This new clause addresses a concern of schools that occupy premises held on special trusts for the purposes of those schools. Local authorities have a discretionary power to provide premises for academies, but there is currently no requirement to transfer the land, as exists for maintained schools. Instead, the local authority tends to offer the academy trust company a lease. If trustees hold particular premises specifically for a school and the school moves to other premises, they cannot carry out the purpose of their charity if nothing else is done, as their premises end up without a school.
The new clause ensures more consistent treatment across the system, where the local authority must transfer the new premises it is providing to the charitable school trustees. In exchange, the trustees must pay the local authority the proceeds of sale from the existing premises—or, if the local authority agrees, the trustees can simply transfer the existing premises to it.
I turn to Amendment 504HA. In the light of the successful passage of the Historic Environment (Wales) Bill through the Senedd Cymru, the Government are giving further consideration to the approach to the power under paragraph 7(2) of the new schedule to be inserted after Schedule 15 by government Amendment 412B. As such, I do not intend to move Amendment 504HA at this time.
Lastly, I turn to Amendments 504K and 504L. The United Kingdom faces constant threats to its national security, as Russia’s invasion of Ukraine has made us all too aware. These amendments will ensure that Ministers can require information about properties that may be used to threaten national security, wherever they are in the United Kingdom.
I beg to move.
Lord Stunell (LD)
My Lords, I want to comment on and ask some questions about the amendments in this string that relate to the building safety regulator: Amendments 467D, 467E, 504GK, 504M, 509D and 513. The Minister somewhat skated over their significance; I have some serious questions to ask. It is worth pointing out that these amendments tabled by the Government are so out of scope that one of the amendments is seeking to extend the Bill’s scope so that they can be included.
Briefly, these amendments would give the Secretary of State powers to scrap the building safety regime set up by the Building Safety Act, which was passed just 12 months ago. That regime, with a new building safety regulator under the auspices of the Health and Safety Executive, was a specific and central recommendation of the Hackitt review, which the Government accepted in full at the time and which had the sustained support of your Lordships’ House at every stage of the Bill’s passage. There was criticism of that Bill as it went through this House but it centred on the inadequate compensation provisions and the uncertainty created by the delay in bringing the regulatory regime fully into force, which does not actually happen until later this year. No concerns were expressed about the regulatory mechanism being set up.
The 18-month delay in the coming into force of that regulator was said by the Government at the time to be necessary to allow time for the regulator to set up shop and because of the need for the construction industry to train up qualified personnel and then deliver, in accordance with the regulator’s requirements. Bringing the building regulation system under the Health and Safety Executive was warmly welcomed on all sides. Again, the criticism was that its reach was too limited and should not be confined to high-rise and high-risk buildings; it was said that the regulator’s remit should be expanded. No voice was raised that this was the wrong model, still less that it was unfit for the essential job of upgrading building standards drastically and rapidly following the Grenfell Tower fire.
Last year, the Government resisted the expansion of the regulator’s role on the grounds that it had to learn to walk before it started to run. Since the regulator was appointed, multiple workstreams and training programmes have begun throughout the construction industry in what is undoubtedly one of the most challenging catch-up operations that it has ever faced. The industry has faced up to it because of the unflinching, no-holds-barred approach of the regulator—strongly supported, of course, because of the certainty that primary legislation gives it—means that it had no choice. There is no risk—or, in some quarters of the construction industry, no hope—of the regulator going soft over time because it is there through primary legislation with a very strong remit.
Baroness Scott of Bybrook (Con)
I thank noble Lords for that interesting debate on the government amendments. The noble Lord, Lord Stunell, asked why this measure is necessary. The Health and Safety Executive has a strong identity and a regulatory background focusing on safety. That is why it was well positioned in 2020 to deliver the building safety regulator quickly, and why the Building Safety Act specified that the Health and Safety Executive—which, I say to the noble Earl, Lord Lytton, comes under the DWP—would be that regulator.
However, it is clear from the evidence given to the Grenfell Tower inquiry that the Government must provide stronger stewardship across the wider built environment, addressing safety alongside issues such as housing standards and the intergenerational impact of new buildings. That may require longer-term reform and could impact on building-related regulatory functions that are currently spread across multiple regulators and arm’s-length bodies. The Government must continue to consider the best vehicle to deliver that intent.
That does not affect the ambitious timeline for the building safety regulator. That is important work. We expect the regime to be fully operational by April 2024 and are determined not to impact on that programme. I say again that we are grateful to the Health and Safety Executive for all that it has done to bring this regime to life.
Lord Stunell (LD)
I ask the Minister to consider the timeline a little more carefully. If the current regulator is not going to be in full flow until April next year, and if the Grenfell inquiry’s final report comes—as she suggested it would—some time next year, are the Government confident that they can maintain a viable building safety regulatory operation using the existing structure based on the HSE, properly staffed and properly led, through that transition period? Is she further satisfied that a two-year window following the publication of the Grenfell Tower final report is sufficient to undertake the very wide-ranging review that she has just been outlining? Would it not make more sense to pause that process and, once the Grenfell Tower inquiry’s report is received, take a measured look at all those together and produce a further Bill in good time, with proper consideration by your Lordships?
Baroness Scott of Bybrook (Con)
No, my Lords, because we are not actually putting anything in place in this Bill. We are giving the Secretary of State the opportunity to do so if the Grenfell Tower inquiry comes out with something that it requires. I have no doubt that the building safety regulator will continue to work as it has always worked—with professionalism —to deliver that, and I am not hearing any issues from the building safety regulator.
The noble Lord, Lord Stunell, asked why these measures were not included in the 2022 Act. The Government recognised the need for major reform of the building safety regime to be delivered as quickly as possible, following the tragedy of Grenfell. The priority is now delivering this new regime effectively while remaining open to going further and faster wherever any evidence makes it clear that we should do so. We are just making sure that we are ready if the inquiry decides that we need to.
The noble Lord, Lord Stunell, mentioned transition, and of course it is important that, if there is to be another system, there is a good transition. The regulations will be taken through the affirmative procedure, as set out in these amendments, in close consultation with the HSE, and we will work with Parliament to ensure that they are delivered in a seamless and exemplary manner.
Lord Stunell (LD)
I am sorry to trespass on the time of the Committee, but can the Minister give a clear understanding that the existing complete independence of the building safety regulator will be maintained when the Government come up with their new alternative? I remind her that considerable time was spent in this Chamber safeguarding the professional independence of the regulator and freeing it from the possibility of interference, by either the Government or other bodies.
Baroness Scott of Bybrook (Con)
What I can assure the noble Lord of is that, if we do have to go down this route, both Houses of Parliament will have a say in that. I am sure that we will have long debates on it. The noble Lord also asked about accountability to the House. As I have said, the powers will be made under the affirmative procedure to ensure that the House is given full and proper opportunity to scrutinise any proposals if they come in due course.
The noble Earl, Lord Lytton, brought up the concerns raised by the Delegated Powers and Regulatory Reform Committee in its 31st report of this Session. I reassure noble Lords that the powers that we are seeking to take in Amendment 467D are intended to allow us to change only the home of the building safety regulator, as created by the Building Safety Act. There is no intention or plan for fundamental policy change in that.
Moving on, the noble Baroness, Lady Pinnock, asked whether Amendment 467F was entirely about schools with religious foundations. There are also non-religious schools that have these charitable site trustees. We are not talking about academy trusts here: we are talking just about the charitable site trustees. They are mainly religious, but there are others that are not.
The noble Baroness, Lady Pinnock, also asked whether the trust required proceeds from the original premises to fund—no, I am sorry, this is something that I asked. It might be interesting to the noble Baroness that, if the trust required proceeds from the original premises to fund new schools, I was concerned about that. It has been made clear to me that capital funds come from local authorities where there is a need to provide sufficient school places, so I hope that will also put the noble Baroness’s mind at rest.
I was asked where the local authority fits into this. It will be in no worse a position than if the same schools had relocated as maintained schools or as foundation and voluntary schools, where the local authority would be obliged to provide the new site and transfer it to the trustees. Land would be held for the purposes of the academy, with appropriate protections for public value, including that the land could ultimately return to the authority if in future it is no longer needed for a school, so the local authority is protected on that.
The noble Baroness also asked whether it is a compulsory swap and what local consultation there would be for the local authority on the swap. It would be a compulsory swap only if the trustees are being asked to surrender their interest in the current site in exchange. We would expect such arrangements to occur only after the usual processes for relocating a school, which would include consultation and a consideration of the impact of moving places from one site to the other. All those issues would have been looked at.
The noble Baroness, Lady Hayman of Ullock, asked whether—I cannot read this.
Baroness Scott of Bybrook (Con)
It was about giving the HSE some other responsibility.
Baroness Scott of Bybrook (Con)
We are not placing further responsibilities on to the Health and Safety Executive. The intention is purely to allow the Government to move building safety functions from the HSE to another body in future, if that is needed. That is the important thing.
I think that I have answered all the questions but I will look in Hansard. If I have not, I will certainly write to noble Lords.
“(6A) In section 110A (fees: oil and gas activities for which marine licence needed), in subsection (4)—(a) after “67,” insert “72(3), 72(7) or 72A(2)(a) or (b),”;(b) after “67(2)” insert “or 72A(4)”;(c) after “67(5)” insert “or 72A(6)”.”Member’s explanatory statement
This amendment makes amendments to section 110A of the Marine and Coastal Access Act 2009 (“the 2009 Act”) to clarify the interaction between the different fee charging powers under the 2009 Act in consequence of the expansion of the Secretary of State’s fee charging powers under the 2009 Act by Clause 214.
“Power to replace Health and Safety Executive as building safety regulator(1) The Secretary of State may by regulations make provision for a body (“the new regulator”) to replace the Health and Safety Executive as the building safety regulator for the purposes of the Building Safety Act 2022.(2) The new regulator may be—(a) a body established by the regulations, or(b) another body specified in the regulations.(3) The Secretary of State may by regulations make further provision in connection with subsection (1), including provision—(a) conferring new functions on, or modifying existing functions of, the new regulator;(b) establishing or modifying the constitutional arrangements of the new regulator;(c) establishing or modifying the funding arrangements of the new regulator;(d) conferring a power on the Secretary of State to give directions to the new regulator.(4) Regulations under this section may amend, repeal or revoke any provision made by or under an Act.(5) No regulations may be made under this section after—(a) the end of the period of 24 months beginning with the day on which the final report of the Grenfell Tower Inquiry is presented to Parliament in accordance with section 26 of the Inquiries Act 2005, or(b) such later time as may be specified or described by the Secretary of State in regulations made before the end of that period. (6) In this section—“constitutional arrangements” , in relation to the new regulator, include matters relating to—(a) the name and status of the body;(b) the chair, members and staff of the body (including qualifications and procedures for appointment and functions);(c) the body’s powers to employ staff;(d) remuneration, allowances and pensions for the body’s members and staff;(e) governing procedures and arrangements (including the role and membership of committees and sub-committees);(f) reports and accounts (including audit);“funding arrangements” , in relation to the new regulator, include provision for it to be funded by a Minister of the Crown and the extent of such funding;“Grenfell Tower Inquiry” means the public inquiry into the fire at Grenfell Tower on 14 June 2017 as set up on 15 August 2017 for the purposes of section 5 of the Inquiries Act 2005;“Minister of the Crown” has the same meaning as in the Ministers of the Crown Act 1975.”Member's explanatory statement
This new Clause provides a power for the Secretary of State to replace the Health and Safety Executive as the building safety regulator and a power to make further provision in connection with such regulations. The regulations must be made before the end of 24 months from the day the final report of the Grenfell Tower Inquiry is presented to Parliament, or such later time as may be specified in regulations made before the end of that period.
“Open access mapping(1) The Countryside and Rights of Way Act 2000 is amended as follows.(2) After section 9 (maps in conclusive form) insert—“9A Review of maps (England)(1) This section applies where a map has been issued in conclusive form for the purposes of this Part in respect of any area in England.(2) Natural England must before 1 January 2031, to the extent that they consider appropriate, carry out a review of whether—(a) any land shown on that map as open country or registered common land is open country or registered common land at the time of the review, and(b) any land in that area which is not so shown ought to be so shown.(3) Regulations may require Natural England to carry out subsequent reviews, in respect of such matters and in respect of such circumstances as may be prescribed.”(3) In section 10 (review of maps)—(a) at the end of the heading insert “(Wales)”;(b) in subsection (1), after “area” insert “in Wales”;(c) in subsection (2), for paragraphs (a) and (b) substitute—“(a) in the case of the first review, not more than ten years after the issue of the map in conclusive form, and(b) in the case of subsequent reviews, not more than fifteen years after the previous review.”(4) In section 11 (regulations relating to maps)—(a) in subsection (2), after paragraph (j) insert—“(ja) the procedure to be followed on a review under section 9A (including provision as to the period within which, and the manner in which, representations may be made to Natural England in relation to such a review),”;(b) after subsection (3) insert—“(3A) Regulations made by virtue of subsection (2)(ja) may make provision—(a) for appeals in relation to a review, including by making provision applying, or corresponding to, any provision of, or made under, Schedule 1A to the National Parks and Access to the Countryside Act 1949 (coastal access reports) (with or without modifications);(b) enabling Natural England to make a determination in preparing a map on a review that any boundary of an area of open country is to be treated as coinciding with a particular physical feature (whether the effect is to include other land as open country or to exclude part of an area of open country).””Member's explanatory statement
This amendment inserts a new provision into the Countryside and Rights of Way Act 2000 to make provision about when Natural England must carry out reviews following the issue of a map of any area in England in conclusive form, and the matters that such a review must cover. The amendment also makes provision for regulations to set out the procedure on a review and makes consequential amendments.
Baroness Scott of Bybrook (Con)
My Lords, Amendment 473, tabled by my noble friend Lord Holmes of Richmond, and ably moved by the noble Baroness, Lady Hayman of Ullock, would require the Secretary of State to report to Parliament—within three months of the day on which this Bill is passed—on the existing barriers to the establishment of regional mutual banks in the United Kingdom. I want to make it clear that the Government are supportive of the choice provided by mutual institutions in financial services. They recognise the contribution that these member-owned, democratically controlled institutions make to the local communities they serve and to the wider economy.
However, regional mutual banks are still in the process of establishing themselves here in the United Kingdom, with some now in the process of obtaining their banking licences. It is, therefore, too early to report on the current regime and any possible limitations of this for regional mutual banks. I know that my noble friend Lord Holmes was interested in how regional mutual banks have performed in other jurisdictions and how we could use these examples to consider the UK’s own capital adequacy requirements. In this instance, international comparisons may not be the most helpful to make. The UK is inherently a different jurisdiction, with different legislative and regulatory frameworks from those in the US, Europe or elsewhere.
Abroad, some regional mutual banks have been in existence for centuries and have been able to build up their capital base through retained earnings. In the UK, regional mutual banks are not yet established and are continuing to progress within the UK’s legislative framework. However, the Treasury is continuing to engage with the mutuals sector and other industry members to assess how the Government can best support the growth of mutuals going forward. I hope that this provides sufficient reassurance for the noble Baroness, Lady Hayman of Ullock—on behalf of my noble friend Lord Holmes of Richmond—to feel able to withdraw the amendment.
Baroness Hayman of Ullock (Lab)
I thank the Minister very much for her response. I suddenly thought that I probably should have declared my interests as a member of the Co-operative Party and as someone who believes very strongly in the benefits of the mutual model. I am sure that the noble Lord, Lord Holmes, will read Hansard very carefully. In the meantime, I beg leave to withdraw.
Baroness Pinnock (LD)
I hope noble Lords will bear with me because there was some confusion over the position of this group in the list. Some of us had an earlier list, where it appeared much later.
I have tabled Amendment 504GJH, about the state of schools and hospitals. At the heart of levelling up is the need to provide good-quality education to young people across the country and that means good-quality buildings in which children can go to school. Where schools are in disrepair and cannot be used appropriately, children are at a disadvantage, particularly, say, in secondary education with science blocks that are out of date so that children will not be able to do modern science experiments.
The quality of school buildings in this country is very important and a department report from December 2022 highlighted the critical level of disrepair in many of our school buildings across the country. This prompted me to lay this amendment to this part of the Bill. The annual report said that officials have raised the risk level of school buildings collapsing to “very likely” after an increase in serious structural issues being reported, especially in blocks built in the post-war years, 1945 to 1970.
The type of structure used has led to the quite rapid deterioration of those buildings. I said earlier that I was a school governor for a number of years. The school had a science block built in the early 1970s that was condemned for these very reasons, so I know how accurate this is.
If we are talking about levelling up and regeneration, at its heart should be public services, school buildings and the quality of the education delivered within them. It is school buildings that I am pointing to today. The report said that the risk level for school buildings had been escalated, as I said, from “critical” to “very likely”.
The difficulty is that, because so many school buildings were built in the 1950s, 1960s and 1970s with this sort of metal structure, there is a huge call on government funding. It is called a light frame system, I think; it is a steel structure anyway. Every one of us will have buildings like that where we live. I want this Bill to focus on doing something about school buildings and hospitals that we know about. The Government have committed to 40 new hospitals—five more have just been added—because they are falling down. That is not right. We are talking about regeneration and levelling up. Having school buildings and hospitals collapsing shows the level of investment that will be needed if we are genuinely going to try to level up across this country.
Baroness Scott of Bybrook (Con)
My Lords, Amendment 476, proposed by the noble Baroness, Lady Hayman of Ullock, looks to give a minimum height for letterboxes. It is important to ensure that doors in homes include letterboxes at a height that does not cause injury, risk or inconvenience. We have researched the safety and accessibility of letterbox heights to establish the evidence with which to amend existing statutory guidance applicable in England. The Government are committed to reviewing their building regulations statutory guidance and any references to third-party guidance on the position of letterboxes. We intend to include the recommended height for letterboxes in statutory guidance.
I turn to Amendment 487 in the name of the noble Baroness, Lady Taylor of Stevenage. Clause 124 and Schedule 11 to the Bill introduce the infrastructure levy in England. The new infrastructure levy will aim to capture land value uplift at a higher level than the current system of developer contributions, meaning that there will be a greater contribution from developers towards the type of infrastructure to which the noble Baroness referred. Under new Section 204Q in Schedule 11, local authorities will be required to produce infrastructure delivery strategies. These strategies will set out how they intend to spend their levy proceeds. In preparing these strategies, local authorities will be expected to engage with the relevant infrastructure providers to understand what infrastructure will be needed to support new development in their areas. In this way, local authorities will be able to take a more strategic view of the infrastructure that will be required to support development in their areas.
On Amendments 489, 490, 491, 493, 494 and 495, in the names of the noble Baronesses, Lady Taylor of Stevenage and Lady Hayman of Ullock, the Government agree that regeneration is important in our new towns, coastal towns and market towns and recognise the contribution that markets can make to the vibrancy and diversity of our high streets, which is essential to levelling up the country. In this legislation, we are committed to going further in supporting places to tackle blight and to revive our high streets within these areas. The legislation builds on a far-reaching existing support package for high streets and town centres, including £3.6 billion investment in the towns fund, £4.8 billion investment in the levelling-up fund and £2.6 billion in the shared prosperity fund, along with support from the high streets task force.
On Amendment 496 tabled by the noble Baroness, Lady Hayman of Ullock, this Government have recently set ambitious new targets for air quality through the Environment Act 2021. These will drive action to reduce PM2.5 where concentrations are highest—often within our busiest towns and cities—reducing disparities as well as reducing average exposure across the country. The Environment Act 2021 established a framework for setting these and any future environmental targets. There is already a comprehensive legal framework governing air pollution, which works in a coherent and complementary way with established national emissions ceilings and concentration targets for a wide range of air pollutants from a variety of sources.
Lord Shipley (LD)
My Lords, I am very grateful to the noble Lord, Lord Young, for reminding us how we got to where we are. He was absolutely right on every single point he made. This is terribly important, and I am very grateful to the noble Baroness, Lady Taylor of Stevenage, for giving us the amendment. If I have one criticism, it is that I am not sure we are yet at a Bill stage. Although it says “draft legislation” in subsection (1) of the proposed new clause—I understand that—I personally favour a royal commission or something that would actually look at the nature of local government and central government powers.
The noble Lord, Lord Young, has rightly identified the difficulty of devolving and at the same time levelling up, which, as he said, requires a greater element of centralised control. I have said several times over the course of this Bill, and before, that you cannot run England out of London; with 56 million people, we are steadily learning that. One of the reasons we are having these constant changes in the Government’s intentions for Bills is that they do not know either what they want to do—so, in the end, the Civil Service carries on and Ministers carry on trying to move forward.
There are elements in the Bill which are very important in assisting us down the road of greater devolution, and they lie in the combined county authorities. The more we have combined county authorities—much though I do not like the centralisation which can result, because they do not have, for example, a Greater London assembly; they do not have a structure such as that to underpin them—the more we will have a move away from Whitehall.
I do not want to say any more about that; I welcome what the noble Baroness, Lady Taylor, has proposed in this amendment. I think we should note what the noble Lord, Lord Young, said about the overall situation that we are in, but I hope that the Government and the Minister will see the importance of trying to bring all this together, because inevitably we are going to come back to this on Report anyway, as we look at the first parts of the Bill that, in Committee, we debated many weeks ago. I welcome the amendment and I hope the Government will see that there would be benefit in moving us forward, not just with structures like the combined counties but actually with real devolution of real things.
Baroness Scott of Bybrook (Con)
My Lords, this amendment, in the name of the noble Baroness, Lady Taylor of Stevenage, seeks to place an obligation on a Minister of the Crown to publish draft legislation for a devolution Bill within 120 days of this Bill receiving Royal Assent. We support the principle behind this amendment—that combined county authorities can request further powers which would enable activity to help drive economic growth and support levelling up.
In fact, we have already gone further than this in the devolution offer set out in the levelling up White Paper. This sets out a clear menu of options for places in England that wish to unlock the benefits of devolution, whether that is moving towards a London-style transport system to connect people to opportunity, improving local skills provision or being able to act more flexibly and innovatively to respond to local need. Any area, including those considering a combined county authority, is welcome to come forward and ask government to confer local authority and public authority functions as part of devolution deal negotiations. The levelling up White Paper has confirmed that the devolution framework is not a minimum offer. These asks are typically made as part of devolution deal negotiations.
We recognise that our existing mayors are already playing a powerful role in driving local economic growth and levelling up. That is why the Government plan to deepen the devolution settlements of the most mature institutions. The White Paper committed to trailblaze deeper devolution deals with the Greater Manchester and West Midlands combined authorities. These agreements were announced on 15 March 2023 and include many areas which will support these regions to drive growth and prosperity, including on skills, transport, housing and net zero, alongside single funding settlements and stronger accountability focused on outcomes.
These deals will act a blueprint for other areas with mature institutions to follow. This will include combined county authorities, once established. Ultimately, our aim is to achieve the local leadership levelling-up mission: that, by 2030, all parts of England that want one will have a devolution deal with powers at or approaching the highest level of devolution and a simplified, long-term funding settlement.
I say to my noble friend Lord Young of Cookham that, actually, devolution is what we want to deliver the local leadership that is required to level up this country. Devolution is part of the levelling up in the Bill, along with many other things to enable the levelling up of the United Kingdom. As such, I hope the noble Baroness agrees that this amendment is unnecessary and feels she can withdraw it.
Baroness Taylor of Stevenage (Lab)
My Lords, I am grateful to noble Lords for participating in the debate and to the Minister for her response. The noble Lord, Lord Young, was absolutely spot-on to point to the tension between devolution and levelling up. All the way through our discussions on the Bill, we have felt that tension; we kept coming back to it, because there is an essential tension there. He mentioned the number of funding streams—planning fees, bidding fees, pothole action funds, the towns fund—which are all funds that local areas have to bid for, and they are not a buoyant source of local revenue. They are not renewable: if you want more, you have to go back to government and ask for more. What we actually need are those local revenue-generating sources that would enable that economic regeneration in our own areas. The noble Lord, Lord Shipley, suggested that this might need some sort of a commission to run to in order to demonstrate what you need to do to shift this.
Healthy Homes Bill [HL]
Baroness Scott of Bybrook ExcerptsFriday 19th May 2023
(1 year, 7 months ago)
Lords ChamberRead Full debate Healthy Homes Bill [HL] 2022-23 View all Healthy Homes Bill [HL] 2022-23 Debates Read Hansard Text Watch Debate Read Debate Ministerial Extracts
Baroness Hayman of Ullock (Lab)
My Lords, I thank the noble Lord, Lord Crisp, for all his work on this matter and for bringing the Bill forward. We supported it and continue to support it because we believe it is important for the Government to build a new wave of affordable, healthy homes in which families can settle with a real sense of security.
The levelling up Bill is being discussed—some of us were again here quite late last night—but that does not bring anything forward to ensure that affordable and healthy homes are built to the high standards we need. We have heard about this in previous debates on this Bill. I hope the Minister takes up the offer of further discussions with the noble Lord, Lord Crisp, to see if this Bill can be accepted or whether we can table amendments to the levelling Up Bill on this matter on Report that are acceptable to the Government. Again, I thank everyone for their work on this Bill.
The Parliamentary Under-Secretary of State, Department for Levelling Up, Housing & Communities (Baroness Scott of Bybrook) (Con)
My Lords, I too thank the noble Lord, Lord Crisp, for his expert and committed stewardship of this Bill. I have been extremely grateful for being able to meet him and understand his passion for the healthy homes principles. I hope we will continue that discussion moving forward, particularly with the Levelling-up and Regeneration Bill.
I also acknowledge and thank the Town and Country Planning Association for its work on this important Bill. Healthy homes and neighbourhoods are important to our communities, and it is because of this importance that we focus on achieving that objective. The planning system strives to contribute to the achievement of sustainable development, with the National Planning Policy Framework containing a very clear policy on sustainable development that recognises the importance to health, well-being and recreation of open spaces and green infrastructure. The policies in the framework lay out how to achieve healthy, inclusive and safe places.
In addition, permitted development rights have been a well-established part of the planning system for many years, supporting businesses and home owners. In response to the criticism about the quality of some homes delivered under permitted development rights, we now require that all new homes must meet as a minimum the national described space standards and must provide adequate natural light in all habitable rooms. The Levelling-up and Regeneration Bill is how we plan to modernise our planning system and put local people back in charge. It will lead to a system through which development is shaped around the interests of communities.
I thank the noble Lord, Lord Crisp, again and assure him that I entirely understand the spirit of his proposals and the importance of the subject matter. However, the Government are confident that those matters are already being considered and addressed through existing laws, systems and national planning policy and associated design guidance, and that the balance between these is broadly appropriate. Therefore, we cannot support the Bill.
Lord Crisp (CB)
My Lords, may I make two very quick points in reply? First, I am again very grateful to everyone who has supported the Bill; I have seen the strength of feeling around the House. Secondly, I say to the Minister that I am delighted there is so much common ground between us on this. I am also delighted that, on PDR, which has caused so many of the problems we are talking about, the Government have moved some way in this direction by introducing two sorts of standards. My Bill obviously proposes that we should introduce a wider range of standards in order to ensure that it is properly about healthy homes.
Levelling-up and Regeneration Bill
Baroness Scott of Bybrook ExcerptsThursday 18th May 2023
(1 year, 7 months ago)
Lords ChamberRead Full debate Levelling-up and Regeneration Act 2023 View all Levelling-up and Regeneration Act 2023 Debates Read Hansard Text Watch Debate Read Debate Ministerial Extracts Amendment Paper: HL Bill 84-XIV Fourteenth marshalled list for Committee - (18 May 2023)
Lord Lansley (Con)
I want briefly to refer to the clause stand part notice tabled by my noble friend Lord Young of Cookham and I for a probing purpose. Clause 126 has the effect of retaining the community infrastructure levy in London and Wales, but I will not talk about Wales. We are leaving Wales out of it for these purposes. The clause retains the community infrastructure levy in London, alongside the introduction of the infrastructure levy. I understand that that is essentially because the mayoral CIL has been used for the provision of Crossrail and is expected to do so for years to come.
However, it has raised in our minds a question to ask my noble friend the Minister about whether the community infrastructure levy, which of course does not provide for affordable housing, can live alongside the infrastructure levy for a number of years. The technical consultation, which is to be concluded on 9 June, does not explain how the respective contributions are to be assessed in a combined fashion because they apply to different parameters of the development. That leads to the assumption that with a 10-year transition we are looking at many places across the country with a combination of community infrastructure levy obligations that have arisen in relation to developments over a number of years and past developments, alongside the introduction of the infrastructure levy. The technical consultation, to my reading, does not help us understand how these two things are going to be meshed together. Of course, many noble Lords tabled their amendments in this group before the technical consultation was published. It answers some of the questions, but not all of them, and I think this is one question that it does not quite answer.
Another question occurred to me while reading the technical consultation in relation to affordable housing. It does not yet provide certainty about whether contributions under the infrastructure levy may be regarded as an improvement on the situation where developers are able to negotiate or renegotiate their liabilities under Section 106. Developers are not engaging in negotiations simply because they can and therefore they do and local authorities do not give way simply because they ask for it. Circumstances change.
I am always burned by the fact of the October 2008 crash. In the space, literally, of weeks, the economic viability of many large-scale development projects changed dramatically. If you look at any system, including this system, and it cannot meet the test of what you would do under those circumstances, I am afraid it does not help. Renegotiation of the contributions is one solution. It might be said that if the market price and the gross development value of a large site crash in the way they did in October 2008, the infrastructure levy crashes as well. The problem then is: how is the affordable housing going to be funded? How is the other infrastructure to be funded?
I do not have answers to all these things, but my noble friend and I will perhaps have an opportunity in the next group to talk a bit more substantively about the infrastructure levy and what we might do about it, but that does not answer the question. If affordable housing presently often suffers by being a residual after other Section 106 obligations have been met, and if under the infrastructure levy it becomes, in effect, a right to require and it is elevated above other requirements, there will be a great deal of difficulty in local communities about the fact that there are many other obligations that the infrastructure levy has to meet that may not be able to be met if the gross development value comes down or if, for example, the affordable housing right to require and the tenures that have to be provided lead to a much higher cumulative discount needing to be paid. We have to have some flexibility built into the system, and the risk at the moment is that that is not presently available in the way that we have understood it in the past. We can strengthen local authorities, and in the next group I hope we can talk about how that might be possible.
The Parliamentary Under-Secretary of State, Department for Levelling Up, Housing & Communities (Baroness Scott of Bybrook) (Con)
My Lords, Amendments 313 and 317 propose to make the levy voluntary for local authorities or to introduce it through a pilot system. I acknowledge that the reforms we are proposing will need to be implemented in a sensible manner. There are problems with the existing system, but it is important that we do not introduce new issues. We want to ensure that the new levy delivers at least as much affordable housing as the existing system, and that is why we are currently consulting on the levy and intend to consult again on the draft regulations. We want input from across the private and public sectors, and we will consider the feedback carefully as we proceed. As I mentioned previously, the new levy will be introduced through a process of test and learn and a phased-out programme. I hope that this will provide the noble Baroness, Lady Taylor, the reassurance that further piloting powers are not needed.
In terms of introducing the levy as a voluntary system, we are seeking to create more certainty across the whole system of developer contributions. We recognise that the levy must be introduced carefully to ensure that it will deliver the intended results. That is the purpose of the test and learn. However, if we do not aim for a unified system, we will dilute the potential benefits. I hope this provides the noble Baroness, Lady Hayman, with sufficient reassurances to withdraw Amendment 313.
Amendments 364 and 364A are concerned with how the Government will assess the delivery of affordable homes under the new infrastructure levy. Given the length of time of the proposed rollout, requiring an assessment of the levy 120 days after the Bill is passed, as proposed in Amendment 364, provides an insufficient amount of time meaningfully to assess the impacts of the levy, but I reassure the Committee that during the rollout the Government will work closely with stakeholders to monitor the impacts of the levy. That includes monitoring our commitment to deliver at least as much, if not more, affordable housing.
In addition, the department has commissioned a scoping study to develop an approach to the evaluation of the planning elements of the Levelling-Up and Regeneration Bill, which we expect to report following Royal Assent, and the full evaluation informed by the findings of the scoping study will then be commissioned. I hope this gives reassurance to the noble Baroness, Lady Taylor, and that she will feel able not to move her amendment.
On Amendment 364A, first homes were a 2019 manifesto commitment and are already successfully established in the market through a grant-funded early delivery programme. Outside that programme, the first homes discount is funded by developers as part of their contribution through planning obligations. The Government currently publish information about the delivery of first homes through both the early delivery programme and planning obligations in our annual affordable housing supply statistical release, and I reassure the noble Baroness, Lady Hayman, that we will continue to do so. We will work closely with local authorities throughout the phased test-and-learn implementation programme to monitor the Government’s key objective to maintain affordable housing supply. This will include but will not be limited to first homes. I hope I have provided the noble Baroness with sufficient reassurance not to press that amendment.
Lord Foster of Bath (LD)
I am sorry to interrupt the Minister. She has given a number of examples. Will the biodiversity net gains required in the Environment Act 2021 be included in the exceptions she has just listed?
Baroness Scott of Bybrook (Con)
I think I have just said that we are currently consulting on what will be in those. I would prefer to wait until after that consultation and then we will know what is going to be in them.
Amendments 332 and 333 seek to require a local authority to prepare an assessment of its affordable housing need and for the infrastructure levy rates to be set at a level that will meet this need in full. We must recognise that the total value that can be captured by the levy, or indeed any system of developer contributions, will not necessarily match the costs of meeting the entire affordable housing need of an area. Revenues will depend on the value of development that comes forward, and that will not always match need.
Nevertheless, new Section 204G(2) in Schedule 11 requires that charging authorities, when setting their rates, must have regard to the desirability of ensuring that affordable housing funded by developer contributions equals or exceeds present levels. That will ensure that affordable housing need is accounted for when levy rates are set. Furthermore, charging schedules will be subject to scrutiny by public examination to ensure that it does.
I want to make it clear that the list of infrastructure issues is not in priority order. Although affordable housing may be seventh on the list, that does not make it a priority. That list is also not necessarily complete.
As noble Lords will no doubt be aware, strategic housing market assessments or similar documents are currently part of the evidence base used to prepare a local plan. These are required as a result of national policy contained in the National Planning Policy Framework, rather than in primary legislation. Under the new system for preparing local plans, local authorities will continue to be required to prepare evidence regarding different types of housing need, including affordable housing. That will inform not only the local plan but the infrastructure delivery strategy.
I agree that it is important that the levy is based on up-to-date evidence of affordable housing need. It is the intention that local plans, charging schedules and infrastructure delivery strategies are prepared together. However, during the transition period, this may not always be possible. That is why our preferred approach is to use regulations and guidance to set out how evidence-based documents, including evidence on different types of housing need, should be considered. I hope I have given reassurance to the Committee that the provisions in the Bill will enable levy rates to be set with proper regard to affordable housing need, and that the noble and learned Lord, Lord Etherton, will feel able not to press his amendment.
Amendments 334 and 334A have the commendable purpose of ensuring that the levy meets its aims of delivering at least as much affordable housing as the current system, if not more, or otherwise addressing locally identified need for affordable housing. The Bill allows regulations to make provision about matters to be considered by charging authorities when setting rates, including the desirability of ensuring that affordable housing funded by developer contributions equals or exceeds present levels. This will ensure that affordable housing need is accounted for when rates are set but, if the Government are overly prescriptive about requirements, the development of an area could become unviable. That is because affordable housing need may exceed what can be captured through the levy. In such circumstances, rates would need to be set at such high levels that neither affordable housing nor market housing would come forward.
The Bill has been drafted carefully to enable local authorities to find the right balance when setting rates and capture as much value as they can while maintaining viability. As I have said, local authorities’ infrastructure levy charging schedules will be subject to public examination, meaning thorough scrutiny of how and why levy rates are set at a particular level. The infrastructure delivery strategy will also be subject to examination, alongside either a local authority’s charging schedule or its local plan. We envisage that the infrastructure delivery strategy will set out the proportion of levy payment that an authority will require to be delivered in kind as affordable housing. I hope that this provides the noble Baronesses, Lady Warwick and Lady Taylor, with sufficient reassurance not to press these amendments.
Amendments 340, 341, 344, 344A, 349 and 350 are all concerned with how local planning authorities should spend levy proceeds. With regard to Amendment 340, the infrastructure levy is an important tool to support sustainable development objectives at the local level. There is an existing requirement for local authorities, when exercising any function in relation to local plans, to do so with the objective of contributing to the achievement of sustainable development. This is set down in Section 39 of the Planning and Compulsory Purchase Act 2004 and will remain in the new plan-making system.
To create sustainable development and successful places, it is important that the infrastructure is appropriately planned for. Contributions from developers are a key tool in mitigating the impacts of new development, alongside wider government funding. The Bill provides a flexible framework to allow local authorities to decide which infrastructure projects they spend the proceeds on. When making such decisions, the Government expect local authorities to fulfil their functions by having regard to all their legal requirements in the round—for example, contributing to the achievement of sustainable development.
I turn to Amendments 341 and 344. As I hope that I have impressed on the Committee, we have designed the levy with the aim of delivering at least as much affordable housing as the current system of developer contributions, if not more. Should the levy generate more revenues than at present, local authorities would be able to choose to direct those additional revenues to meeting their local affordable housing need. Nevertheless, local authorities will need to balance this objective of affordable housing delivery with the levy’s other objectives, such as supporting the development of new roads and medical facilities. We think it is right that local authorities, which know their areas best, are best placed to make local decisions in balancing funding for matters such as affordable housing and other local infrastructure need. I hope noble Lords will therefore feel able not to press these amendments.
Baroness Taylor of Stevenage (Lab)
My Lords, I thank the noble Lord, Lord Lansley, for initiating this clause stand part debate, because in the way we do business in your Lordships’ House, amending existing Bills, it is always worth taking a step back and asking whether we need to do this at all. He has generated a very interesting debate, and in the other groups on the infrastructure levy, it has always been worth holding in our minds whether this is the right way to do it, or whether we should go back to what we have already. That is always worth doing.
The local government community would welcome some clarity on the whole issue of developer contributions. The LGA has been quite supportive of the infrastructure levy, with some qualifications, but wants clarity on what quantum we are expecting to get from it, as well as what is expected to be achieved by it, because we are in danger of making it into the motherhood and apple pie of local government funding, and it certainly will not achieve that.
This is even further complicated in two-tier areas—I have the scars on my back to prove it—where the district council is the housing authority and is looking for substantial contributions to housing, but the upper-tier authority has a duty to press for funding for education, highways, flooding and all the other things that upper-tier authorities look after. It is important we understand the weighting of those various voices in the infrastructure levy process, because otherwise all the pressure on infrastructure will raise viability questions once again. The noble Lord, Lord Greenhalgh, who is not in his place today, previously raised issues about emergency services and whether they warrant consideration for infrastructure levy. These are questions we are rightly looking at as we go through the Bill.
Our provision in the first group was for pilots, and we would have preferred that they were carried out before the Bill came to the House, which would have enabled some testing of the efficacy of the infrastructure levy before we went down this route, but that is shutting the stable door. I should be interested to hear the Minister’s responses on how long the transition period will be and what will be done to test this out as we go through the process.
The noble Lord, Lord Lansley, asked why, if what the Government are trying to achieve is a minimum contribution levy, they do not just do that. I should be interested to hear the Minister’s answer to that question. It is a really good point that, if we must assess this at planning, post-commencement and at final adjustment, what happens if there is significant inflationary pressure, a market crash or whatever between those stages? If it works one way and the final adjustment ended up being a further contribution in cash from developers to make up the difference, that is one thing; if it goes the other way, however, and the viability at the planning stage is greater than what is achieved at the final adjustment, what happens then to the difference? There is quite a lot still to be thought through on this.
I am grateful to the noble Lord, Lord Lansley, for raising the question, but the local government community is quite keen now to have the issue of developer contributions resolved. If the infrastructure levy is going to do that, that would be a good thing, but there are many more questions to answer before that happens.
Baroness Scott of Bybrook (Con)
My Lords, I thank my noble friend Lord Lansley for tabling these amendments.
As we have discussed, infrastructure delivery strategies will help local authorities to plan for the vital infrastructure that is needed to support sustainable development in their area. The infrastructure levy is designed to be a more effective and streamlined system than CIL and planning obligations. Unlike CIL, the new levy will be a mandatory charge which all relevant authorities will be required to adopt. This is an important step in reducing the complexities of the existing system and ensuring uniformity. Also, it ensures that all local authorities benefit from the levy receipts for their local area over time. The levy will be designed to be responsive to market conditions, meaning that local authorities get a fairer share of the uplift in land value that often occurs between the grant of planning permission and site completion to fund local infrastructure.
My noble friend Lord Lansley asked what happened if there was a 10% reduction in GDV which resulted in a 40% reduction in developer profit. As the final liability is based on the gross development value, if the sales value falls, the levy liability will also reduce—that happens similarly at the moment anyway.
The infrastructure levy will be able to fund the provision of affordable housing, largely replacing the operation of the Section 106 agreement. At the moment, the Section 106 agreement is what delivers most of the affordable housing and is often hard fought by local authorities. This will be a much more stable way of delivering affordable housing. The new right to require will mean that local authorities can stipulate the affordable housing that they require to be delivered in kind as part of that levy liability.
My noble friend Lord Lansley also asked about regional inequalities. We can only capture the land value uplift that is there. We expect to capture more in high-value greenfield areas, obviously, and this is what happens in the existing system—you cannot do that any other way.
The noble Baroness, Lady Pinnock, also brought in the point about the infrastructure delivery strategy and existing local plans, which is an important issue. We must accept that we are making a big change here. An assessment of infrastructure need will be undertaken alongside the local plan. In the long term, we expect these two parts of the delivery strategy will be brought together, but during transition they may have to be undertaken separately. We are talking about long-term here, and we expect those two plans to be together eventually and as soon as possible.
Baroness Taylor of Stevenage (Lab)
The issue about regional inequalities is really important. This is supposed to be a levelling-up Bill. If there will be more inequalities in the infrastructure levy in different parts of the country, then it is hard to see how it will help the Bill to do its job in terms of levelling up. It will exacerbate inequalities, not help to level them up.
Baroness Scott of Bybrook (Con)
I am not sure that is right. To take affordable housing, in an area with lower housing-cost needs and where housing is of lower value, you cannot expect the same infrastructure levy for houses and land of £150,000 to £350,000, so you must get that balance right. However, with levelling up, we would expect the values to come up and level as we go through the levelling-up procedure.
Lord Stunell (LD)
The noble Baroness makes a very interesting point, but the problem is that construction costs are not as widely differentiated as land costs. This means that an area with a low level of levy will not be able to build an equivalent number of homes to an area with a high levy. The mismatch between costs and income will be the problem.
Baroness Scott of Bybrook (Con)
I take that point. We have talked about the different rates from different development typologies, and we expect local authorities to set different rates. As the noble Baroness said, they do that with COUNCIL for different development types. We have published research that shows the range of possible rates for different case study areas, and I have put the results of that research in a letter.
For all these reasons, the Government are introducing the new infrastructure levy through the Bill and it is the correct thing to do for the country. There are too many local communities that, with the CIL system and the Section 106 system, are not getting what they deserve from the developments in those areas. So a new system, however difficult it is or however long it takes to deliver, has to be the right way to go.
Baroness Pinnock (LD)
The Minister makes a very important point about the infrastructure levy, as opposed to Section 106 and CIL. Could she provide us with some evidence that the infrastructure levy will raise more money than the existing system?
Baroness Scott of Bybrook (Con)
I will look to the evidence but, as I have clearly stated many times, we are expecting the same if not more housing, particularly affordable housing, from this infrastructure levy. I just say to my noble friend Lord Lansley, as I have said before, that we are not getting rid of Section 106 agreements, but will use them only in very restricted circumstances. The main issue from this is that affordable housing comes out of the Section 106 system and into the infrastructure levy system. When the whole country moves to the infrastructure levy, it will make affordable housing a much more important issue when it comes to how we use developer contributions in the future.
I move on now to government Amendment 361A. This makes three consequential changes to other Acts of Parliament to ensure that the new infrastructure levy will be treated in the same way as CIL in relevant legal contexts. First, Section 101(6) of the Local Government Act 1972 requires that a local authority’s functions in relation to levying rates may be exercised only by that authority—in other words, those functions may not be delegated—but CIL is not a “rate” for this purpose. This means that a local authority may delegate its CIL functions.
Amendment 361A replicates this approach in respect of infrastructure levy functions. I emphasise, however, that the Bill contains important safeguards for democratic accountability. For example, new Section 204K(6) makes it clear that a local authority may approve its infrastructure levy charging schedule only at a meeting of the authority and by a majority of the members present.
Secondly, Section 70 of the Town and Country Planning Act 1990 provides that “local finance considerations” can be a material consideration when determining planning applications. Local finance considerations include CIL, which can therefore be a material consideration when a planning application is determined.
Government Amendment 361A treats the infrastructure levy in the same way, allowing infrastructure levy receipts—anticipated and received—to be taken into account when determining planning applications. This does not override the primary aims of the infrastructure levy to support the development of an area by providing infrastructure, including affordable housing, or its meeting of other purposes, as set out in regulations, in a way that does not make development of the area economically unviable.
“(ea) may make provision treating CIL as if it were IL,”Member's explanatory statement
This amendment enables IL regulations made under new Part 10A of the Planning Act 2008 (as inserted by Schedule 11 to the Bill) to make provision treating the charge known as the community infrastructure levy under section 205 of that Act to be treated as if it were the charge known as the infrastructure levy.
Member's explanatory statement
This amendment enables IL regulations made under new Part 10A of the Planning Act 2008 (as inserted by Schedule 11 to the Bill) to make provision about the use of the power under section 106(1)(d) of the Town and Country Planning Act 1990 to obtain sums for use in connection with IL.
“Local Government Act 1972
1A In section 101 of the Local Government Act 1972 (arrangements for discharge of functions by local authorities), after subsection (6) insert—“(6ZA) Infrastructure Levy under Part 10A of the Planning Act 2008 is not a rate for the purposes of subsection (6).”TCPA 1990
1B In section 70(4) of the TCPA 1990 (determination of applications: general considerations), in paragraph (b) of the definition of “local finance consideration”, after “payment of” insert “Infrastructure Levy or”.Deregulation and Contracting Out Act 1994
1C In section 71(3) of the Deregulation and Contracting Out Act 1994 (functions excluded from sections 69 and 70), omit the word “and” at the end of paragraph (h) and after that paragraph insert—“(ha) sections 204R and 204S of the Planning Act 2008 (Infrastructure Levy: collection and enforcement); and”.”Member's explanatory statement
This amendment makes amendments to a number of Acts in consequence of new Part 10A of the Planning Act 2008, inserted by Part 1 of Schedule 11 of the Bill, which makes provision for a new Infrastructure Levy.
“(aa) any proposals for increasing the extent to which a specified environmental outcome is delivered,”Member's explanatory statement
This amendment is consequential upon the second amendment in the Minister’s name to clause 139. It inserts a provision which is equivalent to the sub-paragraph removed by that amendment from clause 139(4)(b).
Member's explanatory statement
This amendment is consequential upon the first amendment in the Minister’s name to clause 139.
Member's explanatory statement
This amendment is consequential on the Minister’s amendment at page 190, line 36.
Member's explanatory statement
This amendment would change what is treated as environmental damage for the purposes of the Environmental Damage (Prevention and Remediation) (England) Regulations 2015 where a plant is in breach of a nutrient pollution standard to the excess nutrient pollution discharged (instead of the damage caused to a site).
“(4) Schedule (Conditional confirmation and making of compulsory purchase orders: consequential amendments) contains, and makes provision in connection with, amendments in consequence of this section and paragraph 3 of Schedule 15.”Member’s explanatory statement
This amendment introduces the new Schedule in the Minister’s name before Schedule 15, and omits one of the provisions superseded by that new Schedule.
“ScheduleConditional confirmation and making of compulsory purchase orders: consequential amendmentsLand Compensation Act 1973 (c. 26)
1 In section 33D of the Land Compensation Act 1973 (exclusions from entitlement to loss payments), for subsection (6) substitute—““(6) The relevant time is the time at which any of the following occurs in respect of the compulsory purchase order relating to the person’s interest in the land—(a) the order is confirmed, other than conditionally, under section 13 or 13A of the Acquisition of Land Act 1981;(b) the order is made, other than conditionally, under paragraph 4 or 4A of Schedule 1 to that Act;“(c) a decision is made under section 13BA(2)(a) of the Acquisition of Land Act 1981 (decision that conditions subject to which order was confirmed have been met);(d) a decision is made under paragraph 4AA(2)(a) of Schedule 1 to that Act (decision that conditions subject to which order was made have been met).”Compulsory Purchase (Vesting Declarations) Act 1981 (c. 66)
“2 In section 5(2) of the Compulsory Purchase (Vesting Declarations) Act 1981 (vesting declaration not to be executed before purchase order operative), for “26(1)” substitute “26”.Acquisition of Land Act 1981 (c. 67)
3 (1) The Acquisition of Land Act 1981 is amended as follows.(2) In section 7—(a) in subsection (3) (regulations subject to negative procedure)—(i) after “13A” insert “or 13BA”;(ii) after “paragraph 4A” insert “or 4AA”;(b) after subsection (3) insert—““(4) So far as anything is required or authorised to be prescribed as mentioned in subsection (2) in relation to orders that fall to be made or confirmed by the Welsh Ministers— “(a) the reference in that subsection to the Secretary of State is to be read as a reference to the Welsh Ministers, and“(b) the reference in subsection (3) to either House of Parliament is to be read as a reference to Senedd Cymru.”(3) In section 26 (date of operation of orders and certificates), for subsections (1) and (2) substitute—“(1A) A compulsory purchase order confirmed under Part 2 becomes operative—(a) if it is confirmed unconditionally, on the date on which a confirmation notice in respect of the order is first published as required by section 15(3)(a);(b) if it is confirmed conditionally, on the date on which a fulfilment notice in respect of the order is first published as required by section 15(4C)(b)(i).“(1B) A compulsory purchase order made under Schedule 1 becomes operative—“(a) if it is made unconditionally, on the date on which a making notice in respect of the order is first published as required by paragraph 6(3)(a) of that Schedule;“(b) if it is made conditionally, on the date on which a fulfilment notice in respect of the order is first published as required by paragraph 6(4C)(b)(i) of that Schedule.“(1C) Subsections (1A) and (1B) do not apply to an order to which the Statutory Orders (Special Procedure) Act 1945 applies.“(2A) A certificate given under Part 3 becomes operative on the date on which it is first published as required by section 22(a).“(2B) A certificate given under Schedule 3 becomes operative on the date on which it is first published as required by paragraph 9(a) of that Schedule.(3) This section is subject to section 24.”Housing Act 1985 (c. 68)
4 (1) The Housing Act 1985 is amended as follows.“(2) In section 582 (suspension of recovery of possession of certain premises when compulsory purchase order made)—(a) in subsection (2), for paragraph (b) substitute—“(b) any earlier date on which—(i) the Secretary of State notifies the authority that the Secretary of State declines to confirm the order,(ii) the order (having been confirmed conditionally) expires by virtue of section 13BA(2)(b) of the Acquisition of Land Act 1981, or(iii) the order is quashed by a court.”;(b) in subsection (6), for paragraph (a) substitute—“(aa) the Secretary of State notifies the authority that the Secretary of State declines to confirm the compulsory purchase order,(ab) the order (having been confirmed conditionally) expires by virtue of section 13BA(2)(b) of the Acquisition of Land Act 1981,(ac) the order is quashed by a court, or”.(3) In paragraph 3 of Schedule 5A (termination of initial demolition notices)—(a) in sub-paragraph (2), after “(3)(a)” insert “or (aa)”;(b) in sub-paragraph (3)—(i) omit the “or” at the end of paragraph (a);(ii) after paragraph (a) insert—“(aa) a decision under section 13BA(2)(b)(ii) of that Act that conditions subject to which the order was confirmed have not been met, or” (c) in sub-paragraph (4), after “(3)(a)” insert “or (aa)”;(d) after sub-paragraph (6) insert—“(6A) If—(a) a compulsory purchase order has been made as described in sub-paragraph (2),(b) the order expires by virtue of section 13BA(2)(b)(i) of the Acquisition of Land Act 1981, and(c) the effect of the expiry is that the landlord will not be able, by virtue of that order, to carry out the demolition of the dwelling-house,the notice ceases to be in force as from the date when the order expires.”;(e) in sub-paragraph (7), after “(2)” insert “or (6A)”.Town and Country Planning Act 1990 (c. 8)
5 (1) TCPA 1990 is amended as follows.(2) In section 137(7)(b) (discontinuance of compulsory purchase for purpose of blight notice exception)—(a) in sub-paragraph (i), after “order” insert “or the order (having been made conditionally) expires by virtue of paragraph 4AA(2) of Schedule 1 to the Acquisition of Land Act 1981”;(b) in sub-paragraph (ii), at the end insert “or (having been confirmed conditionally) it expires by virtue of section 13BA(2)(b) of the Acquisition of Land Act 1981”.(3) In Note (2) in paragraph 22 of Schedule 13 (land ceasing to be blighted by proposed compulsory purchase order)—(a) omit the “or” at the end of paragraph (a);(b) at the end of paragraph (b) insert “; or“(c) the order (having been confirmed or made conditionally) expires by virtue of section 13BA(2)(b) of, or paragraph 4AA(2) of Schedule 1 to, the Acquisition of Land Act 1981.”Planning (Listed Buildings and Conservation Areas) Act 1990 (c. 9)
“6 In section 48(6)(b) of the Listed Buildings Act (discontinuance of compulsory purchase for purpose of listed building purchase notice exception)—“(a) in sub-paragraph (i), at the end insert “or the order (having been made conditionally) expires by virtue of paragraph 4AA(2) of Schedule 1 to the Acquisition of Land Act 1981”;“(b) in sub-paragraph (ii), at the end insert “or (having been confirmed conditionally) it expires by virtue of section 13BA(2)(b) of the Acquisition of Land Act 1981”.Historic Environment (Wales) Act 2023
7 (1) In section 111(8)(b) of the Historic Environment (Wales) Act 2023 (discontinuance of compulsory purchase for purpose of listed building purchase notice exception)—(a) in the English language text—(i) in sub-paragraph (i), at the end insert “or (having been confirmed conditionally) it expires by virtue of section 13BA(2)(b) of the Acquisition of Land Act 1981”;(ii) in sub-paragraph (ii), at the end insert “or the order (having been made conditionally) expires by virtue of paragraph 4AA(2) of Schedule 1 to that Act”;(b) in the Welsh language text—(i) in sub-paragraph (i), at the end insert “neu pan fydd (ar ôl cael ei gadarnhau’n amodol) yn dod i ben yn rhinwedd adran 13BA(2)(b) o Ddeddf Caffael Tir 1981”; “(ii) in sub-paragraph (ii), at the end insert “neu pan fydd y gorchymyn (ar ôl cael ei wneud yn amodol) yn dod i ben yn rhinwedd paragraff 4AA(2) o Atodlen 1 i’r Ddeddf honno”.“(2) The Secretary of State may, by regulations, amend sub-paragraph (1) before it comes into force in consequence of the provision amended by that sub-paragraph being enacted other than as proposed in the relevant iteration of the Historic Environment (Wales) Bill.(3) In sub-paragraph (2)—“(a) the “Historic Environment (Wales) Bill” means the Bill of that name introduced in Senedd Cymru on 4 July 2022, and“(b) the “relevant iteration” of that Bill is the Bill as it stands after consideration by the Legislation, Justice and Constitution Committee of the Senedd on 13 February 2023.”Member’s explanatory statement
This new Schedule brings together various amendments in consequence of the introduction of conditional compulsory purchase orders (some of which are currently elsewhere in the Bill and some of which are new).
““(4) In section 582 of the Housing Act 1985 (suspension of recovery of possession of certain premises when compulsory purchase order made)—“(a) in subsection (2)(a), for “third anniversary of” substitute “final day of the period of three years beginning with”;(b) after subsection (6) insert—““(6A) If the compulsory purchase order specifies a period longer than three years under section 13D of the Acquisition of Land Act 1981, the references in this section to the period of three years are to be read as references to the period specified in the order.””Member’s explanatory statement
This amendment adds consequential amendments to Clause 171.
“Power to require prospects of planning permission to be ignored(1) In the Acquisition of Land Act 1981—“(a) in section 7(3) (regulations subject to negative procedure), before “paragraph 4A” insert “section 15A(11) or”;“(b) in section 14A (confirmation by acquiring authority), after subsection (2) insert— ““(2A) Nor does it apply to an order directing that compensation is to be assessed in accordance with section 14A of the Land Compensation Act 1961 (see section 15A).”(c) after section 15 insert—“Special provision about compensation
15A
Directions applying section 14A of the Land Compensation Act 1961
(1) Subsection (2) applies if—(a) an acquiring authority submits a compulsory purchase order for confirmation, and(b) the authorising enactment is listed in Schedule 2A.“(2) The acquiring authority may include in the order a direction that compensation is to be assessed in accordance with section 14A of the Land Compensation Act 1961 (cases where prospect of planning permission to be ignored); and if it does so the following provisions of this section apply.(3) The acquiring authority must submit to the confirming authority a statement of commitments together with the order.“(4) A “statement of commitments” is a statement of the acquiring authority’s intentions as to what will be done with the project land should the acquisition proceed, so far as the authority relies on those intentions in contending that the direction is justified in the public interest.(5) If the authorising enactment is listed in any of paragraphs 1 to 6 of Schedule 2A, those intentions must include the provision of a certain number of units of affordable housing.“(6) The statement under section 12(1)(a) must include a statement of the effect of the direction; and paragraphs (ba) and (bb) of the same subsection apply in respect of the statement of commitments as they apply in respect of the compulsory purchase order.“(7) The confirming authority may permit the acquiring authority to amend the statement of commitments before the decision whether to confirm the order is made.(8) But the confirming authority may do so—“(a) only if satisfied that the amendment would not be unfair to any person who made or could have made a relevant objection for the purposes of section 13, and“(b) if the authorising enactment is listed in any of paragraphs 1 to 6 of Schedule 2A, only if the statement of commitments as amended will still comply with subsection (5).(9) If the confirming authority decides to confirm the order in accordance with the applicable provisions of this Part—(a) it may confirm the order with the direction included if satisfied that the direction is justified in the public interest;(b) otherwise, it must modify the order so as to remove the direction.“(10) If the order is confirmed with the direction included, a confirmation notice under section 15 must (in addition to the matters set out in subsection (4) of that section)—(a) state the effect of the direction,(b) explain how the statement of commitments may be viewed, and(c) explain that additional compensation may become payable if the statement of commitments is not fulfilled. (11) In this section—““the authorising enactment” means the enactment that confers the power to make the compulsory purchase to which the order in question relates;“the project land” means—(a) the land proposed to be acquired further to the compulsory purchase order, and(b) any other land that the acquiring authority intends to be used in connection with that land;“unit of affordable housing” means a building or part of a building that is—(a) constructed or adapted for use as a separate dwelling, and(b) is to be used as—(i) social housing within the meaning of Part 2 of the Housing and Regeneration Act 2008, or“(ii) housing of any other description that is prescribed.”;(d) after Schedule 2 insert—“Schedule 2AEnactments eligible for directions applying section 14A of the Land Compensation Act 1961Enactments authorising acquisitions for purposes including housing
1 Section 142 of the Local Government, Planning and Land Act 1980 (acquisition by urban development corporation).2 Section 17 of the Housing Act 1985 (acquisition by local housing authority).“3 Section 226 of the Town and Country Planning Act 1990 (acquisition by local authority for development or planning purposes).4 Section 333ZA of the Greater London Authority Act 1999 (acquisition by Greater London Authority for housing or regeneration purposes).“5 Section 9 of the Housing and Regeneration Act 2008 (acquisition by the Homes and Communities Agency).6 Section 207 of the Localism Act 2011 (acquisition by mayoral development corporation).Enactments authorising acquisitions for purposes of the NHS
7 Paragraph 46 of Schedule 4 to the Health and Social Care (Community Health and Standards) Act 2003 (acquisition by NHS foundation trust).8 Paragraph 27 of Schedule 4 to the National Health Service Act 2006 (acquisition by NHS trust).9 Paragraph 20 of Schedule 2 to the National Health Service (Wales) Act 2006 (acquisition by local health board).Enactment authorising acquisitions for educational purposes
10 Section 530 of the Education Act 1996 (acquisition by local authority for purposes of educational institution or function).”(2) In the Land Compensation Act 1961—(a) after section 14 insert—“14A Cases where prospect of planning permission to be ignored“(1) The following provisions apply in relation to an acquisition if the compulsory purchase order authorising the acquisition directs that compensation is to be assessed in accordance with this section.(2) Section 14 does not apply.“(3) In assessing the value of land in accordance with rule (2) in section 5, it is to be assumed that no planning permission would be granted for development on the relevant land (whether alone or together with other land). (4) Subsection (3) does not prevent account being taken of planning permission that has already been granted.(5) Subsection (3) does not apply in relation to development consisting of the use as two or more separate dwellings of any building previously used as a single dwelling.(6) Schedule 2A provides for the payment of additional compensation in respect of the acquisition in certain circumstances.”(b) in section 32 (interest from entry on land), after subsection (2) insert—““(3) This section does not apply in relation to additional compensation payable under Schedule 2A.”(c) after the second Schedule insert—“Schedule 2AAdditional compensation where section 14A appliedDirections for additional compensation
1 (1) This paragraph applies if—(a) an interest in land has been acquired further to a compulsory purchase order, and(b) the order directed that compensation was to be assessed in accordance with section 14A.“(2) The confirming authority must, on an application by an eligible person, make a direction for additional compensation if it appears to the confirming authority that the following conditions are met.(3) Those conditions are—(a) that the statement of commitments has not been fulfilled,(b) either—“(i) that the period of 10 years beginning with the date on which the compulsory purchase order became operative has expired, or“(ii) that there is no longer any realistic prospect of the statement of commitments being fulfilled within that period, and“(c) that the initial direction would not have been confirmed on the basis of a statement of commitments reflecting what has in fact been done with the project land since its acquisition.(4) In sub-paragraph (3)—“the statement of commitments” means the statement of commitments submitted in connection with the compulsory purchase order under section 15A(3) of the Acquisition of Land Act 1981 (and if the statement was amended after its submission, means the statement as amended);“the initial direction” means the direction referred to in sub-paragraph (1)(b) (and that direction was “confirmed” when the compulsory purchase order was confirmed with the inclusion of the direction);““the project land” means the land treated as the project land for the purposes of the statement of commitments;and that statement is “fulfilled” if what is done with that land after its acquisition is materially in accordance with the statement.“(5) The effect of a direction for additional compensation is that each eligible person may make a claim to the acquiring authority for any additional compensation in respect of the acquisition payable to the person under this Schedule.“(6) A person is an “eligible person” for the purposes of this Schedule if the person was entitled to compensation in respect of the acquisition (and see also paragraph 4(1)). Amount of additional compensation
“2 (1) Additional compensation in respect of an acquisition is payable to an eligible person only if, in relation to that person, the alternative amount is greater than the original amount.(2) The amount payable is the difference between the two amounts.(3) The “original amount” is the amount of compensation awarded or agreed to be paid to the person in respect of the acquisition.“(4) The “alternative amount” is the amount of compensation that would have been assessed as due to the person in respect of the acquisition had compensation been assessed without the application of section 14A.(5) If the original amount was agreed, the relevant valuation date for the purposes of the assessment imagined under sub-paragraph (4) is the date on which the agreement was concluded.“(6) In relation to the determination of an amount of additional compensation under this Schedule, section 17(2)(b) applies as if its reference to the amount of compensation were to the amount of additional compensation.“(7) A certificate issued under section 17 (or 18) after the award or agreement referred to in sub-paragraph (3) is to have effect for the purposes of the assessment imagined under sub-paragraph (4) as if it had been issued before that assessment.(8) Any amount of compensation that is or would be attributable to disturbance, severance or injurious affection is to be ignored for the purposes of sub-paragraphs (3) and (4).Time limit for application for direction
3 An application under paragraph 1(2) may not be made after the expiry of the period of 13 years beginning with the date on which the compulsory purchase order became operative.Mortgages
“(1) For the purposes of this Schedule an “eligible person” includes a person who would have been entitled to compensation in respect of the acquisition but for the existence of a mortgage (but the mortgage is in that case still to be taken into account in determining the original and alternative amounts under paragraph 2).(“2) An amount agreed or awarded to be paid to a mortgagee under section 15 or 16 of the Compulsory Purchase Act 1965 in respect of the acquisition is to be treated for the purposes of this Schedule as compensation in respect of the acquisition.“(3) The reference in sub-paragraph (2) to an amount paid under section 15 or 16 of the Compulsory Purchase Act 1965 (“the applicable section”) includes an amount paid under section 52ZA or 52ZB of the Land Compensation Act 1973 and taken into account by virtue of section 52ZC(7)(d) of that Act for the purposes of the applicable section.“(4) Additional compensation payable under this Schedule to a person in the person’s capacity as a mortgagee (or to a person exercising rights of a mortgagee) is to be applied towards the discharge of the sums secured by the mortgage.“(5) If there is no remaining sum secured by the mortgage, the additional compensation that would be payable as described in sub-paragraph (4) is instead payable to the person who is an eligible person by virtue of the interest that was subject to the mortgage. “(6) If the additional compensation that would be payable as described in sub-paragraph (4) exceeds the total of the remaining sums secured by the mortgage, the amount of the excess is instead payable to the person who is an eligible person by virtue of the interest that was subject to the mortgage.Successors-in-title
“5 (1) This paragraph applies if, had the compensation to which an eligible person was entitled in respect of the acquisition remained unpaid, the right to be paid it would now vest in some other person (assuming that it remained enforceable and any obligations in respect of the right had been complied with).(2) If the eligible person is still alive or in existence, the rights that the eligible person would have under this Schedule are exercisable by the other person and not by the eligible person.“(3) If the eligible person is no longer alive or in existence, the rights that the eligible person would have under this Schedule if that person were still alive or in existence are exercisable by the other person.“(4) The right exercisable by the other person under sub-paragraph (2) or (3) is subject to any restriction, condition or other incident to which the right vested in that person as imagined under sub-paragraph (1) would be subject.(5) Additional compensation paid to the other person by virtue of sub-paragraph (2) or (3) must be dealt with by the person in any way in which the person would have to deal with compensation paid to that person further to the right vested in that person as imagined under sub-paragraph (1).“(6) If a person is an eligible person by virtue of paragraph 4(1), the reference in sub-paragraph (1) to compensation to which the person was entitled is to be read as a reference to the compensation to which the person would have been entitled but for the mortgage.Consequential losses
(1) The relevant authority may by regulations provide for additional compensation payable on a claim under paragraph 1(5) to include (in addition to any amount payable under paragraph 2) an amount to make good qualifying losses.“(2) “Qualifying losses” are financial losses shown to have been suffered by an eligible person, or a person entitled to exercise the rights of the eligible person under paragraph 5, as a result of the compensation initially payable to the eligible person in respect of the acquisition being of the original amount rather than the alternative amount.“(3) In the case of an eligible person who is so by virtue of an interest that was subject to a mortgage, the reference in sub-paragraph (2) to compensation payable to the eligible person is to be taken to include compensation payable to the mortgagee of that interest.“(4) Regulations under this paragraph may limit the qualifying losses in respect of which additional compensation is payable under the regulations by reference to—(a) a description of loss,(b) an amount, or(c) any other circumstance.Procedure etc
7 (1) The relevant authority may by regulations make provision— “(a) about the procedure for applications under paragraph 1(2) or claims under paragraph 1(5) (including provision about the costs of such applications or claims);“(b) about steps that must be taken by the acquiring authority or the confirming authority for the purposes of publicising or giving notice of a direction for additional compensation;(c) for interest to be applied to amounts of additional compensation that are payable;(d) about how or when additional compensation (and any interest) is to be paid.(2) Regulations under this paragraph about costs of claims under paragraph 1(5)—“(a) may modify or disapply section 29 of the Tribunals, Courts and Enforcement Act 2007 (costs or expenses) or provisions in Tribunal Procedure Rules relating to costs;(b) may apply (with or without modifications) section 4 of this Act;and section 4 of this Act does not apply in relation to such a claim unless so applied.Regulations
8 (1) For the purposes of this Schedule “the relevant authority” is—(a) the Secretary of State, in relation to England;(b) the Welsh Ministers, in relation to Wales.(2) Regulations under this Schedule may make—“(a) consequential, supplementary, incidental, transitional or saving provision;(b) different provision for different purposes.(3) Regulations under this Schedule are to be made by statutory instrument.(4) A statutory instrument containing such regulations is subject to annulment in pursuance of—(a) a resolution of either House of Parliament, in the case of regulations made by the Secretary of State, or(b) a resolution of Senedd Cymru, in the case of regulations made by the Welsh Ministers.Interpretation
9 (1) In this Schedule—(a) “the confirming authority” means—(i) the person who confirmed the compulsory purchase order, or(ii) any successor to that person’s function of confirming compulsory purchase orders of the type in question;(b) references to “the acquisition” or “the compulsory purchase order” are to the acquisition or order by virtue of which paragraph 1 applies;(c) references to the acquisition of an interest in land include—(i) the creation of such an interest, and(ii) the acquisition or creation of a right in or over land;and references to interests in land are to be read accordingly.“(2) In the case of a compulsory purchase order made under section 10(1) of, and Part 1 of Schedule 4 to, the New Towns Act 1981 (compulsory acquisition by new town development corporation in usual cases), the reference in paragraph 1(4) to section 15A(3) of the Acquisition of Land Act 1981 is to be read as a reference to paragraph 5A(2) of Schedule 4 to the New Towns Act 1981. “(3) In the case of a compulsory purchase order made under section 13(1)(a) of, and Part 1 of Schedule 5 to, the New Towns Act 1981 (compulsory acquisition by new town development corporation of statutory undertakers’ operational land)—(a) the reference in paragraph 1(4) to section 15A(3) of the Acquisition of Land Act 1981 is to be read as a reference to paragraph 5A(2) of Schedule 5 to the New Towns Act 1981, and(b) the references in paragraph 1(4) and sub-paragraph (1)(a) to the confirmation of the order are to be read as references to the making of the order.(4) If—“(a) an interest in land is acquired further to section 154(2) of the Town and Country Planning Act 1990 (deemed compulsory acquisition further to blight notice), and(b) the land falls within paragraph 22 of Schedule 13 to that Act (land blighted by compulsory purchase order),“the interest is to be treated for the purposes of this Schedule as having been acquired further to the compulsory purchase order by virtue of which the land falls within that paragraph.”(3) In the New Towns Act 1981—(a) in Schedule 4 (procedure for compulsory acquisition by new town development corporation in usual cases), after paragraph 5 insert—“(1) A development corporation submitting an order to the Secretary of State under this Part of this Schedule may include in the order a direction that compensation is to be assessed in accordance with section 14A of the Land Compensation Act 1961 (cases where prospect of planning permission to be ignored); and if it does so the following provisions of this paragraph apply.(2) The corporation must submit a statement of commitments together with the order.“(3) A “statement of commitments” is a statement of the corporation’s intentions as to what will be done with the project land should the acquisition proceed, so far as the corporation relies on those intentions in contending that the direction is justified in the public interest.(4) Those intentions must include the provision of a certain number of units of affordable housing.(5) The notice under paragraph 2(1) must—(a) state the effect of the direction, and(b) name a place where a copy of the statement of commitments may be seen at any reasonable hour.(6) The Secretary of State may permit the corporation to amend the statement of commitments before the decision whether to confirm the order is made.(7) But the Secretary of State may do so—“(a) only if satisfied that the amendment would not be unfair to any person who duly made or could duly have made an objection for the purposes of paragraph 4, and(b) only if the statement of commitments as amended will still comply with sub-paragraph (4).(8) If the Secretary of State decides to confirm the order under paragraph 3, the Secretary of State—(a) may confirm the order with the direction included if satisfied that the direction is justified in the public interest;(b) otherwise, must modify the order so as to remove the direction.“(9) If the order is confirmed with the direction included, the notice under paragraph 5 must— (a) state the effect of the direction,(b) explain how the statement of commitments may be viewed, and(c) explain that additional compensation may become payable if the statement of commitments is not fulfilled.(10) In this paragraph—“the project land” means—(a) the land proposed to be acquired further to the compulsory purchase order, and(b) any other land that the corporation intends to be used in connection with that land;“unit of affordable housing” means a building or part of a building that is—(a) constructed or adapted for use as a separate dwelling, and(b) is to be used as—(i) social housing within the meaning of Part 2 of the Housing and Regeneration Act 2008, or“(ii) housing of any other description that is prescribed.”;“(b) in Schedule 5 (procedure for compulsory acquisition by new town development corporation of statutory undertaker’s operational land), after paragraph 5 insert—““(1) A development corporation making an application under this Part of this Schedule may include in the application a request for a direction that compensation is to be assessed in accordance with section 14A of the Land Compensation Act 1961 (cases where prospect of planning permission to be ignored); and if it does so the following provisions of this paragraph apply.(2) The corporation must submit a statement of commitments together with the application.“(3) A “statement of commitments” is a statement of the corporation’s intentions as to what will be done with the project land should the acquisition proceed, so far as the corporation relies on those intentions in contending that the direction would be justified in the public interest.(4) Those intentions must include the provision of a certain number of units of affordable housing.(5) The notice under paragraph 2 must—(a) state that the request has been made and what the effect of the direction would be, and(b) name a place where a copy of the statement of commitments may be seen at all reasonable hours.(6) The Secretary of State and the appropriate Minister may permit the corporation to amend the statement of commitments before the decision whether to make an order on the application is made.(7) But they may do so—“(a) only if satisfied that the amendment would not be unfair to any person who duly made or could duly have made an objection for the purposes of paragraph 3, and(b) only if the statement of commitments as amended will still comply with sub-paragraph (4). “(8) If the Secretary of State and the appropriate Minister decide to make an order on the application under paragraph 3, they may include the direction in the order only if satisfied that the direction is justified in the public interest.(9) If an order is made with the direction included, the notice under paragraph 5 must—(a) state the effect of the direction,(b) explain how the statement of commitments may be viewed, and“(c) explain that additional compensation may become payable if the statement of commitments is not fulfilled.(10) In this paragraph—“the project land” means—(a) the land proposed to be acquired further to the compulsory purchase order, and(b) any other land that the corporation intends to be used in connection with that land;“unit of affordable housing” means a building or part of a building that is—(a) constructed or adapted for use as a separate dwelling, and(b) is to be used as—(i) social housing within the meaning of Part 2 of the Housing and Regeneration Act 2008, or“(ii) housing of any other description that is prescribed.”“(4) In section 157 of TCPA 1990 (special provisions as to compensation for acquisitions further to blight notices), before subsection (1) insert—“(A1) Where—(a) an interest in land is acquired in pursuance of a blight notice,(b) the interest is one in respect of which a compulsory purchase order is in force, and(c) the order directs that compensation is to be assessed in accordance with section 14A of the Land Compensation Act 1961,“the compensation payable for the acquisition is to be assessed in accordance with that direction and as if the notice to treat deemed to have been served in respect of the interest under section 154 had been served in pursuance of the compulsory purchase order.””Member’s explanatory statement
This new Clause allows a Minister confirming a compulsory purchase order to direct, in certain cases involving affordable housing, health or education, that compensation should be assessed on the basis that no new planning permission would be granted for the land. It also allows the effect of that direction to be reversed if the land is not subsequently used as planned.
Residential Leasehold
Baroness Scott of Bybrook Excerpts(1 year, 7 months ago)
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Lord Kennedy of Southwark (Lab Co-op)
My Lords, in begging leave to ask this Question, I refer to my interests in the register and declare that I am a leaseholder.
The Parliamentary Under-Secretary of State, Department for Levelling Up, Housing & Communities (Baroness Scott of Bybrook) (Con)
My Lords, while I cannot set out precise details of a future Bill at this stage, the Government have been clear about our commitment to addressing the historic imbalance in the leasehold system and to extending the benefits of freehold ownership to more home owners. We will bring forward further reforms later in this Parliament.
Lord Kennedy of Southwark (Lab Co-op)
My Lords, that is just not good enough. It is extremely disappointing but, sadly, par for the course. Promises and pledges have been made, and promises and pledges have been broken. Over the last year—on 20 June, 14 July, 20 July, 17 October, 12 January, 20 February, 22 February, 23 March and, most recently, 2 May—I have raised these issues and been told that the Government intend to bring
“the outdated and feudal system of leasehold to an end.”—[Official Report, 20/2/2023; col. 1444.]
We now hear from the media that that is not going to happen in this Parliament. That is just not good enough. Will the Minister take the opportunity here today to apologise to all the people trapped in the leasehold nightmare who have been let down by these broken promises, and explain to the House why we should believe these latest promises and pledges?
Baroness Scott of Bybrook (Con)
My Lords, as I have said before, property law is fiendishly complex. It is absolutely right that the Government take the time needed to make sure that the reforms are right. As I have said before, the Government will bring reforms to the leasehold system in this Parliament, but I cannot pre-empt the King’s Speech by confirming at this time what will or will not be in future legislation.
Lord Young of Cookham (Con)
My Lords, has my noble friend read the article in last Sunday’s Sunday Times, which outlined the problems facing leaseholders who want to extend their lease? Because of the uncertainty to which the noble Lord has just referred, they do not know whether to extend their lease now or wait until the legislation that has been proposed, which may enable them to extend on fairer terms. This blight is beginning to affect the market in leasehold. Is not it important that the Government are clear as soon as possible as to what their proposals will be?
Baroness Scott of Bybrook (Con)
I understand the concerns, and yes, the Government will be as clear as they possibly can, when they can. Importantly, every leaseholder is in a very different situation and has different considerations. Specialist legal advice should be taken by leaseholders at this time if they are considering enfranchisement or extensions. The Association of Leasehold Enfranchisement Practitioners and the Leasehold Advisory Service can offer that advice to leaseholders, and I urge them to take it in this time, before we can make any further announcements.
Lord Truscott (Non-Afl)
My Lords, as a landlord, leaseholder and former renter, may I ask the Minister this: since the Government seem to be backtracking on abolishing leasehold by the end of this Parliament, can she at least commit to reforming this archaic and feudal system?
Baroness Scott of Bybrook (Con)
I do not agree with the noble Lord. The Secretary of State has made it clear that we want to bring forward reforms to leasehold, and we want to do so during this Parliament. We wish to extend the benefits of freehold ownership to more home owners. In line with our manifesto commitments, we will continue leasehold reform during this Parliament. We are working with the Law Commission to bring forward game-changing reforms to the system, and we thank the commission for all the work it has done in this area. As I have said, I cannot at this Dispatch Box pre-empt the King’s Speech.
Lord Cormack (Con)
My Lords, my noble friend in answer to a question a moment or two ago referred to people taking legal advice, but how can lawyers give advice if they do not know what the Government are proposing to do?
Baroness Scott of Bybrook (Con)
I thank my noble friend for that question. What they can do is give them the options they should consider at this time.
Baroness Pinnock (LD)
My Lords, on the current plight of leaseholders, there are 11,000 high-rise and medium-rise blocks in need of life-critical safety work since the Grenfell fire tragedy. The Government have made progress and done a contract with 43 or more developers that will put right those blocks—but only 1,100 of them. What assurance can the Minister give the other 10,000 that their work will be done at no cost to those leaseholders?
Baroness Scott of Bybrook (Con)
I assure the noble Baroness that the Government are doing everything they can. They are making sure that, as she has said, the perpetrator pays, and they have put large amounts of money into this. It takes time to work through the remediation of these buildings, but we are working at pace and pushing the industry the whole time to ensure that it makes these buildings safe as soon as possible.
Lord Bach (Lab)
The Minister agrees that some leaseholders will need advice, but who is going to pay for that advice? Do the Government think they might extend legal aid to cover it?
Baroness Scott of Bybrook (Con)
No, we do not intend to extend legal aid. For leaseholders who are considering what to do in future, we have made it very clear that it will be in this Parliament, and they just need to wait and take advice at this time until we can get these changes in place.
Baroness Fox of Buckley (Non-Afl)
What is the Minister’s response to the revelation from the Commonhold Now campaign that, according to polling, 60% of those who voted Conservative in 2019 support the abolition—not the reform—of leasehold? Perhaps that might concentrate minds.
The Minister says that she cannot at the Dispatch Box pre-empt what is in the King’s Speech, but it is at the Dispatch Box here and in the other place that the Minister and the Secretary of State have constantly assured the noble Lord, Lord Kennedy, and others that leasehold will be abolished. If it is too difficult for this Government to do, maybe that says more about them than it does about leasehold law.
Baroness Scott of Bybrook (Con)
We have made it very clear that we wish to extend the benefits of freehold ownership to more home owners. That is why we have committed to ending the sale of new leasehold homes and houses to reinvigorate commonhold, so it can finally be a genuine alternative to leasehold. But, as I have said before, we know that, on commonhold work for flats, the Government, industry and consumers will all need to work together, which is why we established the Commonhold Council to prepare home owners and the market for what we want to do, which is to give this freedom to more home owners.
Lord Kamall (Con)
My noble friend just said that property law is fiendishly complicated and that is why this has taken some time. Will she enlighten us as to some of the complicated issues that have to be tackled before this law can be brought forward?
Baroness Scott of Bybrook (Con)
The Government are working with the Law Commission; we have asked it to recommend reforms to commonhold legislation, and it published its report in July 2020. We are considering those recommendations and will respond to them in due course, but it is a fiendishly complex system.
Lord Brownlow of Shurlock Row (Con)
My Lords, earlier my noble friend Lord Young of Cookham presented a choice for leaseholders today. I think the Minister has just indicated that leaseholders should wait. Maybe she meant they should continue to weigh up their options until things become clearer.
Baroness Scott of Bybrook (Con)
I thank my noble friend. That is perhaps exactly what I should have said: they need to just wait until we have clarification, and it will not be long, because it will be in this Parliament.
Lord Cromwell (CB)
My Lords, is not one of the obstacles to movement forward on this that landlords are going to find that the leaseholders have become freeholders, and that they are going to seek compensation? If so, from whom?
Baroness Scott of Bybrook (Con)
I have had no indication that they will do that, but if they do we will have to look at that issue.
Redcar Steelworks
Baroness Scott of Bybrook Excerpts(1 year, 7 months ago)
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Lord Scriven
To ask His Majesty’s Government what assessment they have made of allegations of corruption related to the redevelopment of the Redcar Steelworks site in Teesside.
The Parliamentary Under-Secretary of State, Department for Levelling Up, Housing & Communities (Baroness Scott of Bybrook) (Con)
My Lords, the department has seen no evidence of corruption, wrongdoing or illegality within the South Tees Development Corporation. The mayor and the combined authority are working tirelessly to level up the area of Teesside, including supporting economic growth and high-quality job creation. Private sector investment and a joint venture were always a core part of the business case for this site, and the National Audit Office review in 2022 found that government funding had been used as intended.
Lord Scriven (LD)
My Lords, everybody wants to see regeneration in Teesside, but the National Audit Office has not conducted an audit, just a light-touch review. The last full public audit was carried out 18 months ago, since when reports in the press, including the Yorkshire Post, have indicated the potential risk to hundreds of millions of pounds of taxpayers’ money, with superprofiteering to a monopoly private company. The Tees Valley Mayor yesterday said he has no objection to the National Audit Office carrying out a full audit. That has to be at the instigation of the Government, so what is stopping the Government agreeing to implement Section 6(3)(d) of the National Audit Act allowing a full National Audit Office audit to investigate that taxpayers are not being short-changed by excessive profits going to one private company?
Baroness Scott of Bybrook (Con)
My Lords, the noble Lord is correct; the Mayor of Tees Valley has written to the Secretary of State, giving his full support for an independent review. The department will reply to him shortly. As a Government, we will continue, as we have right the way through this scheme, to monitor the spend and delivery on-site. We will do that for two years after public spending on the site. The Tees Valley Combined Authority has also judged that the joint venture presented value for money. Independent auditors of the STDC’s accounts have not raised any concerns around that judgment or the management of that organisation.
Baroness Taylor of Stevenage (Lab)
My Lords, it is vital that the public, particularly the public of Teesside, get answers to the very serious questions about the transfer of this key public asset into private ownership, with the potential losses that may have been incurred to the public purse. That is why my honourable friend the shadow Secretary of State has written to the National Audit Office to call for a full inquiry. Ministers and civil servants seem to have had little or no knowledge about what was going on in Teesside, and the whole process was entirely opaque.
It was originally intended that public funding would be used to clean up the land, but also that it would remain in public ownership. However, a decision taken in private in 2021 changed that model. The taxpayer appears to have invested more than £260 million and provided a public loan worth £100 million. It seems that developers have secured £45 million in dividends, despite failing to invest any of their own money in the project. When were the Government aware of the transfer of 90% of the shares in Teesworks to private developers? What scrutiny and oversight did they have of decisions made by Tees Valley Mayoral Development Corporation to establish the joint venture that became Teesworks without a public procurement process? Lastly, what action will the Government take to provide reassurance that the public interest is protected, now and in the future?
Baroness Scott of Bybrook (Con)
I will just explain the investment of this site to the noble Baroness. It was always going to be a public/private investment. She is right that £246 million of public money has been invested in this site, and this has already secured £2 billion in private sector investment, with the prospect of 2,725 long-term jobs created as a result. To make the site investor-ready cost £482.6 million, already leaving a funding gap of £200 million; that has had to come from the private sector. It has always been the plan to kick-start the land remediation and then divest the site and risk to the private sector, which we are doing. As a result, the JV partnership—the demolition programme—which was due to take up to five years, concluded in less than three years. It is now up to the private developers to develop that site for these jobs, and for this area of our country.
Lord Shipley (LD)
My Lords, I think anyone who read yesterday’s Financial Times full-page article on this matter would welcome a full investigation by the National Audit Office. Since we are almost between Committee and Report on the Levelling-up and Regeneration Bill, there is an opportunity to make changes on Report in terms of audit, insofar as it might impact upon development corporations. Will the Government, through the Minister, agree to ensure that this is thoroughly checked out, to make sure that the processes being followed on Teesside are appropriate and in the public interest?
Baroness Scott of Bybrook (Con)
I do not think I need to repeat it, but the Mayor of Tees Valley has said that he is very happy for an independent review. Whether that is an independent review or the National Audit Office doing a full review, I think he is quite happy. The department is looking into that and will reply to him shortly. I do not think I can add any more. Nobody is stopping a full review if that is necessary, but what is important is that we have millions of pounds of private sector investment in an area that desperately needs it, for jobs and for the people of Teesside. That is levelling up; that is the important bit of this.
Baroness Chapman of Darlington (Lab)
My Lords, as someone who lives on Teesside, I respectfully tell the Minister that doubt over this site will damage future investment. It is already making people ask questions. The mayor has said that he wants an investigation and voices in this Chamber are clearly calling for one. I have not heard anybody here or in Teesside oppose an investigation. It is important that it is done quickly and it should be the fullest possible type of investigation that the NAO can offer, to regain the confidence that we need to enable more investment in the Tees Valley.
Baroness Scott of Bybrook (Con)
I have to ask those opposite who is creating this uncertainty. It is certainly not the Government, who have invested in this area. Once more, the mayor is very happy for any type of review.
Baroness Wheatcroft (CB)
My Lords, can the Minister confirm that it was always part of the plan that public sector investment on a massive scale should be used to hugely enrich two private sector developers?
Baroness Scott of Bybrook (Con)
Let me give a little background. Three Thai banks had a hold on the former SSI steelworks land. As negotiations to secure that land broke down, a compulsory purchase order was launched. JC Musgrave Capital and Northern Land Management already had back options on parcels of land within the Teesworks site that were key to those negotiations with the three banks over land owned by SSI, which was already in receivership. The STDC was advised by a top KC that, without this private sector involvement, it would very likely lose that compulsory purchase order. The public/private partnership was agreed by the TVCA, the Cabinet and the STDC board, and it was envisaged in the original business case approved by the Department for Business, Energy and Industrial Strategy, MHCLG and the Treasury that that should be the partnership to take this site forward.
Baroness Jones of Moulsecoomb (GP)
My Lords, it is not people on this side creating the concern; these are reports from local people, businesses and a lot of newspapers. Please do not be offensive to this side of the Chamber. We do our best to hold the Government to account—that is our job. In this instance, the Government seem absolutely blind to the fact that there could be problems. Moving forward, an investigation is necessary and should be part of the Government’s plan.
Baroness Scott of Bybrook (Con)
We are not blind to that fact. We are monitoring continually, as we do when we invest in these projects, and the National Audit Office did its audit and said that the public money was being spent as intended. We will look at anything further that needs to be done. As I have said, the mayor is very happy to take part in any review.
Baroness Pinnock (LD)
My Lords, at the heart of this controversy is the perceived lack of transparency and accountability. This may arise from the mayoral development corporation having a board that, as the Yorkshire Post reports, is appointed solely by the mayor. Does the Minister believe that this power to appoint the board and select people who will do his will is at the heart of the problem? Will she consider changes to the Levelling-up and Regeneration Bill to change that and improve transparency and governance?
Baroness Scott of Bybrook (Con)
No, it is up to the mayor to decide the best people to be on his board. We have seen absolutely no evidence—if there is any, we would like to see it—of corruption, wrongdoing or illegal acts.
Lord West of Spithead (Lab)
My Lords, the loss of Redcar was part of the blight on British Steel. Does the Minister agree that perhaps we should put in the orders that have been thought about, but not yet ordered, for a large number of ships and that the steel in the ships being built should be found from within British Steel?
Baroness Scott of Bybrook (Con)
I am not going to respond to a question on British Steel, but I can say that public money—quite rightly—has decontaminated the site and taken away all the hazards, and therefore it is now right for modern green technology.
Lord Scriven (LD)
My Lords, does the Minister think it is okay for the joint venture to flip from a 50:50 share to a 90:10 share in favour of the private sector partners, when millions of pounds have been spent on reclaiming and decontaminating certain parts of the site? The site was then sold, reportedly for £1 per acre. When the private sector company bought it a few weeks later, it flipped it and sold it on for more than £70 million. That is why a National Audit Office report is required and the Government urgently need to implement Section 6(3)(d) of the National Audit Act.
Baroness Scott of Bybrook (Con)
The mayor has offered a review. We have only just got that letter; we are considering it. The public funding we put in did not create any positive land value. It was designed to remove the ongoing liability of £80 million a year that was falling to the Government after the liquidation of SSI UK Ltd. The issue of the 50:50 share shifting to 90% concerned further private investment.
Baroness Boycott (CB)
My Lords, can the Minister update us on what has happened with the investigation into the massive shellfish die-off, which many scientists believe was the result of the dredging when we got this land ready for sell-off, and the chemicals released from the deep seabed? It is still disputed; if there is a review, can this question be included?
Baroness Scott of Bybrook (Con)
I am sorry; I do not have an answer to that question, but I will take it forward to Defra and we will get an answer.
Baroness Chapman of Darlington (Lab)
The Minister said the Government will consider whether they will ask the NAO to conduct a further investigation, and we are grateful for that. We are very concerned, but perhaps it would help us to be bit calmer if the Minister could indicate when that might be decided upon.
Baroness Scott of Bybrook (Con)
I said the mayor had written to us, saying that he was happy to take part in a review, and we are looking to respond to that. Of course it is an important issue, but public money has been quite rightly invested in an area that desperately needs it after the steel industry left. There are opportunities for modern technology industries to come in—we are hearing about wind farm factories, et cetera—and we must keep this steady and online so that it can be delivered and we do not lose the investment we have.
Houses in Multiple Occupation (Asylum-Seeker Accommodation) (England) Regulations 2023
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Baroness Scott of Bybrook
That the Grand Committee do consider the Houses in Multiple Occupation (Asylum-Seeker Accommodation) (England) Regulations 2023.
Relevant document: 37th Report from the Secondary Legislation Scrutiny Committee (special attention drawn to the instrument)
The Parliamentary Under-Secretary of State, Department for Levelling Up, Housing & Communities (Baroness Scott of Bybrook) (Con)
My Lords, there are currently more than 50,000 asylum seekers living in hotels, given that our asylum system has been overwhelmed by the large volume arrival of asylum seekers by small boats. Hotels are neither intended nor adequate to be used as long-term accommodation. This is also burdensome on local communities and expensive for the taxpayer. It is important to recognise the significant challenges we are grappling with. The Home Office is working tirelessly, along with other government departments, to reduce the Government’s dependency on hotels by introducing a suite of short and longer-term measures. It is not right that the country is spending millions of pounds a day on hotels, and we are determined to put the asylum accommodation system on a far more sustainable footing. This reform is one of the many measures being taken to provide adequate and cost-effective accommodation in line with our statutory duty.
The Home Office is also bringing forward a range of alternative sites, such as disused holiday parks, former student halls and surplus military sites, to add thousands of places at half the cost of hotels. All local authority areas in England, Scotland and Wales became an asylum dispersal area in April 2022, thereby increasing the number of suitable properties that can be procured to accommodate asylum seekers across the UK.
Currently, the Housing Act 2004 requires all houses in multiple occupation—HMOs—where five or more people from two or more households share facilities to be licensed. Local authorities can also introduce additional licensing in their area. This requires all HMOs housing three or more people from two or more households to be licenced. Home Office service providers have reported that these additional conditions set by local authorities present a challenge when procuring cost-effective, suitable and safe accommodation for asylum seekers. The Home Office is therefore seeking to remove this barrier.
These regulations will temporarily exempt from the HMO licensing HMOs used by the Home Office to house asylum seekers. This means that HMOs which begin use as asylum accommodation before 30 June 2024 will not need to be licensed for a period of two years. These regulations will cease to be in force on 1 July 2026, and after this point all HMOs used as asylum accommodation will require licences.
I am aware of the concerns that noble Lords and the Local Government Association have raised. I assure noble Lords that the Home Office asylum accommodation and support contract—AASC—standards are broadly equivalent to mandatory HMO licence conditions. This alignment between contracts and national housing standards is deliberate and was developed in consultation with the local authority property inspectors via their professional body, the Chartered Institute of Environmental Health.
Home Office service providers are contractually required to provide safe, habitable, fit for purpose and correctly equipped accommodation for all asylum seekers. The contracts also require providers to comply with the law and a host of best-practice guidance. Consequently, matters that stand to be enforced by local authorities in respect of unscrupulous landlords can also be enforced contractually by the Home Office via its service providers.
All asylum accommodation will continue to be subject to wider private rented sector regulations, including the duties set out in the HMO management regulations, and local authorities will retain their power to enforce these standards and take action against landlords who fail to meet them.
The Home Office contracts for housing also set out a minimum standard for all asylum accommodation, including conditions relating to gas and fire safety requirements, as well as compliance with wider private sector minimum standards. The Home Office is doubling the size of its inspection team to ensure that its service providers are maintaining minimum standards in all its accommodation, and specifically all HMO properties that benefit from this exemption.
This dedicated assurance team is responsible for testing and reporting on providers’ performance. In addition to the provider’s monthly inspections, the Home Office inspects properties on a targeted basis, as well as testing providers’ monthly performance against the contractual key performance indicators and conducting assurance reviews. The Home Office will ensure that the assurance regime is commensurate with existing arrangements for HMO licensing to avoid the risk of reducing quality. Where a provider fails to meet contractual obligations, financial penalties can be applied.
Separately, Migrant Help is contracted to provide a free, round-the-clock helpline and online portal available 365 days a year which asylum seekers can use to raise issues, request help, give feedback and make complaints. Maintenance issues raised via Migrant Help are referred immediately to the AASC—asylum accommodation and support contract—provider for action within contractual timescales. If a service user reports that a defect has not been fixed and they remain dissatisfied, it is escalated to a dedicated Home Office complaints team to adjudicate. In addition, the Home Office will put measures in place to allow local authorities to report poor standards or safety issues with any of the housing provided for asylum seekers. The Home Office will also take up the offer from the Local Government Association to enhance joint working to deliver suitable and safe accommodation for asylum seekers under its care.
The Home Office dispersal policy will focus on ensuring the fair and equitable placement of asylum seekers, as we recognise the strain on public services, including housing. The Government will do everything they can to mitigate the risk of homelessness in support of the existing cross-government commitment to end rough sleeping within this Parliament and to fully enforce the Homelessness Reduction Act.
We also recognise the general strain on public services in local authorities, and for this reason existing funding has been doubled for those local authorities which take on new accommodation and do so quickly. Subject to conditions of a grant agreement, this money is not ring-fenced and will incentivise co-operation and ease pressures on local services. However, payments will be subject to the conditions of a grant agreement.
The Home Office will develop a monitoring plan, which will cover service provider data in relation to the accommodation acquired as a result of this reform, reporting on quality and compliance/assurance to measure its effectiveness as well as to inform the assessment of wider homelessness impacts. More broadly, Home Office engagement with local authorities has significantly increased and improved since the introduction of an engagement strategy which is designed specifically to ensure that impacts on local services can be raised, discussed and mitigated through the multi-agency forums. Regular meetings are held between the Home Office and local authorities’ key strategic fora, including the asylum and resettlement council senior engagement group and the strategic oversight group. The Home Office will also arrange an open forum for local authorities to attend, which is a further opportunity for local government colleagues to discuss issues of concern with senior Home Office officials. I beg to move.
Lord Scriven (LD)
My Lords, I thank the Minister for introducing this SI, but this is yet another chapter in a book that is about dehumanising some of the most vulnerable people in the world seeking asylum in this country. It is bizarre that the Minister says that the reason why we need this SI is because the contract that providers of asylum accommodation have is exactly the same. In a moment, I shall go through what a mandatory HMO is licensed for, and I seek from the Minister an absolute assurance that every single clause that I give is covered in that contract. If not, the Minister has not been quite correct at the Dispatch Box.
It is not necessarily the case, as the Minister tried to portray, that the reason for the cost of accommodation for asylum seekers is because of the number of small boat arrivals. The House of Commons Home Affairs Select Committee reported recently that the reason for the strain on accommodation is the incompetence and inefficiency of the Home Office in dealing with the backlog. Some 68% of those waiting to have their claims assessed in March 2023 had waited more than six months. Even though the number of case workers has doubled from 308 to 614 since 2022, productivity has not changed at all. The number of people being dealt with or cases that have actually been closed in a month is exactly the same: one case per caseworker per month. That is what is causing the strain on accommodation, not the number of people arriving. It is clearly the incompetence and lack of productivity from the Home Office.
In her introduction, the Minister said that the number of those who are available to investigate will double in size to see whether the contractual arrangements are being carried out. How many individuals, full-time equivalent, will be available? On average, how many does that equate to for each local authority area?
Lord Scriven (LD)
In my enthusiasm to speak, I forgot to put on record my interest as a vice-president of the Local Government Association.
Baroness Scott of Bybrook (Con)
I thank noble Lords for their contributions to this debate today. Much of what has been discussed is obviously for the Home Office; in my responsibility as a Government Minister, I shall attempt to answer everything I can, but there will be things that I will have to come back to. I hope that I can persuade noble Lords to join me in supporting these regulations, which are a necessary step to accelerate moving asylum seekers from what is not suitable—we have had this debate many times in this House, and hotel accommodation is not suitable—into more suitable accommodation for them.
This is not dehumanising; this is actually giving them a better place to live, and trying to get people out of hotels as quickly as possible. Both the noble Lord, Lord Scriven, and the noble Baroness, Lady Taylor of Stevenage, asked why we are doing this. We are doing it because the asylum accommodation service people are telling us that they have identified that the whole process of licensing requirements is really a challenge to swiftly bring on board the properties that we need in order to get people out of the hotel system.
Baroness Taylor of Stevenage (Lab)
I think either the noble Lord, Lord Scriven, or the noble Baroness, Lady Noakes, I cannot remember which, asked whether any thought was given to improving the resources for local government to take this on, rather than setting up a whole new system. Is the Minister able to comment on that?
Baroness Scott of Bybrook (Con)
I will go through the support we are providing to local authorities, but I do not think the local authorities could have moved as fast as was necessary to do this: it takes training, et cetera. It is about getting people out of hotels and into better accommodation.
The noble Baroness, Lady Taylor of Stevenage, and the noble Lord, Lord Scriven, brought up the Home Office contracts. I have listed all the requirements under the licensing. I am sorry I have not got an answer to everything. Gas and safety requirements are there in the contracts for the Home Office, as well as compliance with wider private rented sector minimum standards, but I will go through each and every requirement in the licensing and we will send a letter explaining what is there and what is in the contract so that we are absolutely transparent about that.
Lord Scriven (LD)
Therefore, the Minister, at this point, even though we are being asked to accept the statutory instruments, cannot give an assurance to the Grand Committee that it is like-for-like and that housing standards of quality and safety will be exactly as asylum seekers now have in accommodation in HMOs if they are licensed by a local authority? That is what is actually being said: that guarantee cannot be given on a like-for-like basis.
Baroness Scott of Bybrook (Con)
No, I am not going to give that guarantee from this Dispatch Box, because there is a complicated list of things, and if I say, “Yes, it is”, there will be a tiny bit that the noble Lord will come back and quite rightly say, “You have got this wrong”. I am going to make sure that I look at that licensing requirement, look at the contract, and see what differences there are.
Lord Scriven (LD)
Will the Minister therefore give a commitment that that answer and letter will come before the statutory instrument hits the whole House? I think it is really important that we get it before the statutory instrument is before the whole House and agreed by the whole House.
Baroness Scott of Bybrook (Con)
No, I cannot do that because I am not in control of when the statutory instrument comes before the whole House, but we will get it to noble Lords as soon as we possibly can from the Home Office. I am sorry, but that is as much as I can do.
The noble Baroness, Lady Hamwee, brought up the issue of the dispersal policy. I have to say, I hate that word. The noble Baroness, Lady Taylor of Stevenage, brought up the pressures on local authorities; she mentioned London specifically. We need to make sure that asylum seekers are located across the UK, not just in one or two areas. We know the pressures on public services, and we need to make sure that those are not overtaken by larger numbers. It is important that we look at that. Equally, we need to make sure that we do not put asylum seekers away from family, friends and their communities, so we have to do both.
Lord Scriven (LD)
The Minister really confused me then. She just said that the providers of this accommodation will have to abide by the licensing conditions of local authorities on HMOs. Does not the statutory instrument actually remove the requirement on them to do that? Is that not its sole purpose?
Baroness Scott of Bybrook (Con)
No, it removes the requirement for them having to get a licence, which takes time. The letter I am going to write to the noble Lord, and to all noble Lords, will then give the specifics to make sure that there is nothing missing between those two issues. That is what he wants to hear, I think. We will get that to him—that is what he is asking for.
Lord Scriven (LD)
It is, but the logic behind this statutory instrument is to speed up the process of getting accommodation. However, if the accommodation has to be exactly the same as the HMO licensing conditions of local authorities and the Home Office does not have the number of people to be able to do the assessment of the properties, how does it speed up getting the properties? The number of properties will be the same in each area and they will have to be inspected before they can be brought on board to house asylum seekers. I do not understand the logic of how this will speed that up.
Baroness Scott of Bybrook (Con)
The whole process of licensing takes time and, I have to say, a bit of paperwork and bureaucracy. Noble Lords know that these things take time, whereas, if we can get people out and into accommodation that is properly regulated and tested, and people go in there and check it on a regular basis, that is a quicker way of getting people into communities and out of hotels.
The noble Baronesses, Lady Taylor and Lady Hamwee, asked about unaccompanied minors—a really important point. I assure the Committee that they will not be placed in HMOs, which is extremely important.
I know I have not answered everything, but the difference between the licensing regime and the quality regime of the contracts and the Home Office is important, and I want to get it absolutely right and make sure that the detail is correct for noble Lords.
Lord Scriven (LD)
The question that I and the noble Baroness, Lady Taylor of Stevenage, asked was: if the number of people enforcing from the Home Office is going to double, what will that number be and what is the average per local authority area?
Baroness Scott of Bybrook (Con)
I asked for an answer on that, but I do not think it has come forward. I am really sorry; I will get these answers to noble Lords as quickly as I possibly can. I am conscious of what they are asking me to do.
Baroness Taylor of Stevenage (Lab)
I know it is not the tradition of the Committee to not vote for SIs, or to vote against them, and I understand that—I will not do anything like that—but had this come before my council, with the lack of information that we have about why it is being done, not just what is being done, I could not have supported it. Whether local government could do this job equally well was never assessed. If the Home Office can recruit more inspectors, local government can do so too. If the Home Office are going to look at the same things that local government looks at, why is local government not looking at it? Can we have some clarity about what will be looked at? I am happy to have that in writing.
Before I sit down, I profusely apologise to the noble Baroness, Lady Hamwee, whom I called by the wrong name. I had written the wrong name on my papers, which is completely my fault, and I apologise profusely. I will not get it wrong next time.
Baroness Scott of Bybrook (Con)
I cannot let it go that we are not making it clear why we are doing this. I want to make it very clear that we are doing it to speed up the movement of these people from what the House has clearly said many times is unsuitable hotel accommodation, which is not right over a long period of time, into better accommodation. That is why we are doing it. We want to do it as quickly as possible, and we fell that, in the short term of two years, the licensing regime was slowing that movement down.
Baroness Hamwee (LD)
I will tell the noble Baroness, Lady Taylor, a tale about mixed-up names when we finish this Committee.
We have focused very much on safety standards. As I understand it, and I may be wrong, the standards of bathroom and kitchen facilities, and possibly the amount of space per person, will be different. I think that is covered by what the Minister has said she will find out about, but I do not want to lose that.
Baroness Scott of Bybrook (Con)
No, absolutely not: I have written down everything that the noble Lord, Lord Scriven, asked to be checked against the Home Office conditions, and we will make sure we check Hansard. I know that things such as bathrooms, kitchens and room sizes were in that list because I have written them down. If there are no further questions, I assure noble Lords that these regulations are an important part of the Government’s asylum dispersal plans—although I do not like that word. I thank noble Lords for the challenge and scrutiny they have given to them, and I will make sure that I get answers to them as soon as possible.
Levelling-up and Regeneration Bill
Baroness Scott of Bybrook Excerpts(1 year, 7 months ago)
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The Parliamentary Under-Secretary of State, Department for Levelling Up, Housing & Communities (Baroness Scott of Bybrook) (Con)
My Lords, I apologise for the length of time that I am going to take, but it has been a very diverse debate about a number of things and some important issues, so please bear with me.
When new development is built, it creates a demand for public services and local infrastructure. The granting of planning permission also increases the value of land. It is important that local authorities can secure contributions from developers to share in the land value uplift that comes from granting planning permission and use this to deliver local infrastructure and affordable housing for communities.
The current system of developer contributions is uncertain and fragmented. The negotiation of Section 106 agreements frequently results in delays in granting planning permission and these agreements can be renegotiated as the development progresses, as we have heard. Local authorities cannot be expected to negotiate as effectively as big developers. The developers can always build elsewhere, which weakens a local authority’s leverage in negotiations. Developers can devote more financial resources to negotiation, out-gunning local authorities. This can generate uncertainty for local communities over how much affordable housing will be available and what infrastructure will be delivered.
Local authorities can also charge the community infrastructure levy, which is a non-negotiable—but optional —charge. Only half of local planning authorities currently charge the levy. Of those that do not, over one-third believe that introducing it would increase their ability to capture land value. The community infrastructure levy is also unresponsive to change in development value as it is charged at a fixed rate per square metre of new development and does not go up in line with house prices. That is why we are introducing the new infrastructure levy; to largely replace the existing system of developer contributions.
The new levy will aim to capture land value uplift at a higher level than the current developer contributions regime by charging rates based on the final value of developments. This should ensure that a fairer price is initially paid for the land by the developer, and then that the developer pays a fairer contribution to the infrastructure and affordable housing. As it is a non-negotiable charge, it should help to reduce delays associated with Section 106 agreements, while maintaining the viability of developments. It will also end the inequality of arms, where local planning authorities must negotiate for affordable housing with developers. The levy will be charged on the majority of types of development, providing opportunities to secure funding for affordable housing and infrastructure from developments that currently contribute very little. I totally agree with the noble Baroness, Lady Warwick of Undercliffe, that the important issue for developer contributions is housing.
The Government recognise that the new infrastructure levy is a significant change and a major undertaking. For this reason, we are taking a “test and learn” approach to its implementation. This will be vital to monitor and test the design of the levy as it works on the ground. This means that, once levy regulations have been developed following Royal Assent, only a small number of local authorities will adopt the levy initially. This “test and learn” approach will allow the Government to continue to work with local authorities, developers and local stakeholders to achieve a system that is optimally designed. We have published a detailed technical consultation, which closes on 9 June, to inform the design of the new levy regulations. We have approached this consultation in a very open manner with the sector, and we really want to listen to, and take on board, the feedback.
I turn to Amendments 290, 324, 335 and 343, tabled by the noble Lord, Lord Russell, my noble friend Lord Greenhalgh and the noble Baronesses, Lady Warwick and Lady Hayman. The amendments relate to the definition of “infrastructure”. I will highlight first the point that the priority for receipts from the new levy will be the provision of infrastructure: affordable housing, schools, GP surgeries, green spaces and transport. This infrastructure is vital to support the local community and mitigate the impact of any new development.
Although I understand the desire for future levy receipts to be spent on a wider range of other important priorities, I must be clear that this will not be an unlimited pot of money and that any other spending will come at the expense of affordable housing and local infrastructure that is needed to directly mitigate the impact of new development. Although we have the ability to allow for some spending on non-infrastructure priorities through the Bill, we recognise that there are important trade-offs here. Through the consultation, we are testing the extent to which we should require local authorities to prioritise affordable housing and infrastructure before unlocking such flexibilities.
Secondly, I will address childcare, which I think everybody in the Committee agrees is exceptionally important—I know that this is a priority for all of us in the House and the other place. It is also a priority for the Government, and I am happy to say that, since Amendment 290 was tabled, the Chancellor has announced transformative reforms to the funding and delivery of childcare, as part of the Spring Budget. By 2027-28, this Government expect to spend in excess of £8 billion every year on free hours and early education, helping working families with their childcare costs. This represents the single biggest investment in childcare in England ever, and it means that eligible working parents of children from nine months old to their start in primary school will all have 30 hours of free childcare per week. I hope that the noble Lord will agree that the Chancellor’s announcement means that it is no longer necessary to try to bolt together the planning system and funding for childcare through the Bill.
I make it clear to the noble Lord, Lord Russell, that guidance for applications for free schools already includes explicit assumptions that any new free schools will include proposals for nurseries. Therefore, education investment in a possible new development will include a nursery, unless there are very strong reasons why this would be inappropriate. So the Government are dealing with the issue of ongoing support for childcare and, at the same time, there is already in guidance the necessity for more nursery places where houses are built.
I turn to infrastructure spending more broadly. New Section 204N(3) provides a non-exhaustive list of kinds of infrastructure, which assists with broadly understanding what the levy might be spent on. But spending is not restricted to any of the listed items: the levy can be spent on any infrastructure that supports the development of an area. This means funding the provision, improvement, replacement, operation or maintenance of infrastructure, provided that this in accordance with the overall aim of the levy, as set out in new Section 204A. To strengthen infrastructure delivery, new Section 204Q requires local authorities to prepare “infrastructure delivery strategies”, which will set out a strategy for delivering local infrastructure and spending levy proceeds.
Baroness Taylor of Stevenage (Lab)
Where do the infrastructure delivery strategies sit in terms of the local plan process? The noble Baroness, Lady Thornhill, referred to this. What role will they play in relation to NDMPs? It is not clear from the legislation exactly how they fit in with the rest of the planning process, and it is important that either the Bill sets that out or we have guidance elsewhere—for example, in the National Planning Policy Framework—that makes it crystal clear where those strategies sit.
Baroness Scott of Bybrook (Con)
I understand that, and I will write to the noble Baroness to explain this completely. I know that this is confusing because the NPPF has not been agreed, so I understand where she is coming from and I will make sure that we send her a letter.
Turning to Amendment 324, I agree with my noble friend Lord Greenhalgh that the emergency and rescue services should be among the infrastructure providers that are able to receive levy funds from local planning authorities. For this reason, they are already included in the illustrative list of infrastructure in new Section 204N(3), which makes it explicit that levy funds can be applied towards
“facilities and equipment for emergency and rescue services”.
We do not provide detailed definitions across all kinds of infrastructure, as this is not necessary. The words used must be given their natural and common-sense meaning—so “infrastructure” too must be given its ordinary meaning. I have stated that it can encompass matters not listed in new Section 204N(3).
Lord Greenhalgh (Con)
I really appreciate that response, but the emergency services replied to the letter from the Housing Minister with a way forward. They are very concerned that the existing community infrastructure levy and Section 106 system is not working. Although, as the Minister pointed out, emergency services are mentioned in the schedule, the principal concern is how the historic system works, as it will take up to a decade for the new system to come into play. Will the Minister respond to the latest representations, so that we can agree a way forward?
Baroness Scott of Bybrook (Con)
I completely understand my noble friend’s issue and, as I have said, we are very happy to have a meeting to look at what can be done in the existing system. We know what is going on with the proposed system, but I understand the issues and we will meet further on this with the emergency services.
Turning to Amendments 331 and 346, I thank the noble Lord, Lord Shipley, for speaking on behalf of the noble Baroness, Lady Pinnock, and my noble friend Lord Greenhalgh for tabling these amendments. I agree that ensuring that development is accompanied by the timely provision of the right infrastructure is important to local communities where development is taking place. However, requiring a full payment of the levy up front would impact the viability of development and result in fewer homes, and therefore fewer affordable homes, being delivered. Large developments can be built out over periods of a decade or more, and it is not necessary for all mitigating infrastructure to be delivered in the early stages of that development.
Lord Thurlow (CB)
The viability of development, particularly larger schemes, does not put the developer’s position at risk. The increased costs of—in this case—the infrastructure levy come out of the value of the land: in other words, the landowner, who, at the stroke of a pen in a local authority, has seen their agricultural field, for want of an example, rise from £4,000 or £5,000 an acre to £750,000 an acre. That is where the loss of value will occur—in the simple viability of a large development.
Baroness Scott of Bybrook (Con)
I thank the noble Lord for that. As I said, large developments can take a decade or more to build out and we do not want to build infrastructure, only for it to stand idle for a long time. This would increase costs for developers, reducing the amount of money that can therefore be put towards other infrastructure and affordable housing, without generating additional benefits for the communities. I agree that infrastructure must be delivered in a timely way, but that means neither too early nor too late. I will turn in a moment to the powers in the Bill that will allow this.
Lord Shipley (LD)
First, I am very grateful for the very lengthy reply the Minister has given us. I listened very carefully to all she said, but could she confirm that the new system, which she referred to as a “long-curve transformation programme”, will actually end up building more affordable homes? That seems to me to be a central requirement of the infrastructure levy. I seek her confirmation that the outcome of all she has just said will be that more affordable homes will be built in this country.
Baroness Scott of Bybrook (Con)
What we have said is that this will deliver no fewer affordable homes. Of course, the number and type of affordable homes that are built will be a local decision. If local authorities want more homes—I suggest that we need more homes in this country—we should be able to deliver more homes.
Baroness Taylor of Stevenage (Lab)
I thank the Minister from our side for the very detailed response she gave to all the contributions that have been made. In response to the question from the noble Lord, Lord Shipley, we have a further group on this, so I am sure we will debate it further in the course of that group. The combination of the lack of clarity around what the new infrastructure levy is going to deliver in affordable housing and the removal of housing targets looks like a terrible contribution. I know the Minister said that this would not mean fewer affordable homes, but the number that have been built in the last few years is woeful. We want that to improve; we want to get more affordable housing out of this. I know we will discuss this again in a subsequent group, but it is really important. I hope we can get some clarification in that group about how this new infrastructure levy system is going to help us deliver the affordable homes that we all know we need.
Baroness Scott of Bybrook (Con)
This is about not just the new infrastructure levy but the whole Bill. We know that where local authorities have local plans, they build more houses. The Bill is there to enable and encourage local authorities to have local plans. It is the combination of all these things within the Bill that should deliver more houses.
Lord Russell of Liverpool (CB)
Well, my Lords, time certainly flies when you are talking about local government. I pay tribute to the stamina of the many people here who have a background in local government. I also congratulate them because I think this is the first time I have heard a debate on local government where about five people have not popped up, one after the other, and stated that they are a vice-chair of the Local Government Association. Eureka—we seem to have got away from that. I do not know whether the Minister is grateful to the Government Whips’ Office for putting such a compact group of amendments together; maybe it is an efficient way of dealing with this. I pay tribute to her for her stamina, for being on her feet for nearly 50 minutes and for being as detailed as she has been. I think all of us genuinely appreciate that. She deserves lunch really quite soon.
I thank the noble Lords who spoke specifically about my Amendment 290. Your Lordships will be relieved to hear that I am not going to go into detail on any of the other amendments. What I would like to come back to is the fact that I think all of us who are concerned about the level of provision of childcare services would really appreciate a detailed letter which very explicitly says what is covered, what is completely clear and what may be slightly less clear. We are in a situation where it simply is not working at the moment.
If we are going to get value from the Chancellor’s huge expansion in free childcare services, we have to be sure that we have enough places to put the children in, in the right places. We also need to be completely clear that we need both capital funding, where it is required to ensure that we have new childcare facilities, and funding to actually make it possible for them to be run. Part of that is about ensuring that the fees charged cover the costs and, in most cases, leave a degree of profitability for those services—most of which are private —otherwise they will continue to go out of business. We would be most grateful if we could have a really detailed response on that.
I am sure other noble Lords will follow up on their amendments as well. Again, I thank the Minister for the length and thoroughness of her response. I beg leave to withdraw my amendment.