Business and Planning Bill

Baroness Uddin Excerpts

Committee stage & Committee: 1st sitting (Hansard) & Committee: 1st sitting (Hansard): House of Lords
Monday 13th July 2020 Lords Chamber

[Baroness Uddin (Non-Afl) [V]]

My Lords, it is a pleasure to follow my noble friend’s enthusiasm and wise observations. I had signed up to speak on Second Reading and, due to unfortunate technical problems, was unable to do so. I wish to speak to Amendments 6 and 8.

I echo the introductory comments of the noble Lord, Lord Balfe. His concerns may be widely applicable in many areas of our country. I am deeply concerned about the impact of the fast-tracking measures that will allow alcohol to be served outside or off premises. I witnessed first-hand a large event at a venue nearby, on two consecutive weekends, and was shocked to witness large numbers of young people gathered without any social distancing—not a mask in sight—spilling on to the streets, as highlighted by the noble Lord, Lord Bourne. I welcome the points made earlier by the noble Baroness, Lady Neville-Rolfe, about age verification. I question the age of many present at these gatherings and agree with the noble Lord, Lord Clement-Jones, that it is not enough to rely on staff minding the entrance to ensure identity of large numbers of eagerly waiting young persons.

I suggest to the Government that the beneficial income revenue is likely to be seriously compromised by insurmountable amounts of litter, men urinating on the road and against buildings, activity going well into unsocial hours with an unacceptable level of noise and antisocial behaviour and disturbance, inevitably causing concern to nearby family residents. In fact, a group of people came over to my car as I was driving by, who were drunk and aggressive. Witnessing this was my adult son, who lives with autism. He was distinctly alarmed and anxious. I could see no one obviously enforcing rules at this event and no signposting for social distancing rules or for toilets.

Therefore, I am uncomfortable that some licences will be granted for more than a year without review. They are the most significant changes in licensing laws for years, and local authority and police services do not have any additional resources and will not be equipped to take on additional duties to monitor these licences for compliance without extra funding.

The proposal that local councils will have permission to revoke licences is, frankly, not good enough. Can the Minister clarify that local authorities and police forces locally have been allocated the necessary resources? Will these measures embed due regard to the rights of residents nearby, particularly those who are disabled or may be vulnerable young women, including the impact on women staff members? I was pleased that the noble Baroness, Lady Meacher, referred to the danger of excessive availability late at night of cheap alcohol. As a former manager of drug and alcohol services, I agree wholeheartedly.

I am not convinced that communities, local authorities and police have been adequately consulted, particularly on the impact on people with disabilities and the environmental impact on their lives of these measures. Can the Minister say that residents, including those who are disabled, will be consulted—reaching out to all residents, including those for whom English may not be their first language? Will there be opportunities to express any dissent, and will a public reporting mechanism be established and made available in various locally relevant languages?

Finally, in support of the noble Lord, Lord Holmes, and comments made by the noble Baroness, Lady Grey-Thompson, and other noble Lords, I agree that, even at this time of duress, this House must be assured of adherence to the fundamentals of the public sector equality duty, and thus respect all the prerequisites of ensuring compliance, not just by local authorities but by those who hold a licence. Throughout this pandemic, I have sought assurances from the Government that we heed local conditions and respect local needs, including those based on the population and its linguistic requirements, and consider lack of access to online services for a large section of our populations. I am confident that the Government will continue to honour this duty and ensure that public consultation materials, printed and online, are available in accessible formats—including Braille, audio and translated into some of the relevant languages—and made available on a variety of platforms, including ethnic minority media platforms.

[The Deputy Chairman of Committees]

My Lords, the noble Baroness, Lady Goudie, has withdrawn, so I now call the noble Lord, Lord Balfe.

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[Baroness Doocey (LD) [V]]

My Lords, I shall speak briefly to support Amendment 42, which articulates an excellent idea and one that I hope the Government will take up. A similar amendment was moved in the Commons by my colleague, Tim Farron MP, whose constituency in Cumbria is very much at the heart of the tourist industry. His constituency has seen the biggest increase in unemployment in the country—up by 314% since March. Meanwhile, 37% of the entire workforce in that area has been on furlough. His constituency is just one of those in which the income from tourism has been decimated.

I believe that there is a special case for additional sectoral support for the industry, which would instil much-needed confidence in the many seasonal businesses and in the seasonal workers who depend on them. Most of these businesses operate on a profit margin of just about 10%, so many of them will not even be viable because, as a result of social distancing, they can operate at only 50% or less of their capacity. By signalling now that the industry’s safety net will not be cut away just when thousands of businesses and jobs may need to rely on it, the Government can avoid many damaging job losses.

[Baroness Uddin [V]]

I am pleased to follow the detailed observations made by the noble Baroness, Lady Anelay, and the noble Earl, Lord Clancarty. I shall speak in support of Amendments 42 and 78.

Extraordinary business support schemes have been put in place. I am mindful of the fact that these provisions make it easier for businesses to access government support in the form of, among others, bounce-back loans and the furlough scheme, alongside other forms of financial support. The review being suggested in the amendment is necessary to ensure the most impactful use of public funds. It is equally imperative that the Government should take this opportunity to make an impact assessment of these measures on the living standards of those working in this low-paid sector, as well as considering ethnic and gender differentials. They can then reassess the measures that will be required to mitigate the disproportionate effect on these groups, particularly among those who have not been able to access successfully many of the Government’s funding regimes. As a result, some otherwise successful business owners became unemployed overnight during the lockdown and they are now having to resort to applying for universal credit. It is a safety net, yes, but it is not adequate to meet the needs of any family.

I take heart from the fact that at its core, the Bill is about kick-starting the economy while keeping in sight all the prerequisite safety restrictions. The business owners I have spoken to welcome the support given by the Government to the hospitality sector and the economy more widely. The discretionary schemes which have been delivered through local authorities may have helped save thousands of companies from bankruptcy and thus will have protected jobs. However, I am duty bound to remind the Government about the large number of businesses which have not accessed any support at all because they have fallen outside the policy parameters.

Three-quarters of businesses operating in the accommodation and food service sectors have paused or stopped trading in response to the Covid-19 outbreak. It would be remiss of me not to say that I have witnessed at first hand how many curry houses have put aside their own pain while trying their best to survive by becoming the first source of free food supplies for first responders in the NHS and for the many food banks across our country.

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[The Deputy Chairman of Committees]

The noble Baroness, Lady Goudie, is not with us, so I call the noble Baroness, Lady Uddin.

[Baroness Uddin [V]]

My Lords, I support Amendment 48 in the name of the noble Lord, Lord Stevenson of Balmacara. I have just a few brief points. I shall speak specifically about data collection and the reporting requirement for the Bounce Back Loan Schemes. Despite the pandemic, we cannot overlook the need for transparency, open government and a robust process of reporting to Parliament. Current data relating to the total number of applications and the number of loans granted does not make allowances for how well the scheme is working to help businesses through the crisis, including SMEs, as the noble Baroness, Lady Altmann, referred to. There is inadequate data on the number of businesses that could not access loan schemes and why they were refused. This should be addressed in the reporting mechanism.

The curry industry, which I referred to earlier, has reported that its members are experiencing a great deal of difficulty in accessing this financial support. I am deeply concerned about eradicating any inequity that they might be experiencing. Therefore, I would like more detailed reporting to include the number of successful applications from SMEs led by BAME communities, particularly in the curry industry, and, more specifically for the curry industry itself, the actual number of applications that have been successful and those that have been rejected.

[Baroness Kramer [V]]

My Lords, I support Amendments 46, 47 and 48 and regard all three as exceedingly important. I will start by picking up on an issue described by my noble friend Lord German. We know now that the major banks, which have been able to participate in the bounce-back scheme because they have been provided with cheap funding from the Bank of England under its term funding scheme, have failed in what I was told was an obligation to also pass that cheap money through to the fintech industry and other alternate lenders, so that a broad and diverse coterie of lending institutions would be involved in bounce-back schemes and a mechanism to ensure that qualifying small companies would be able to find a source, even if it was not from one of the major banks. We now know that that funding process has not taken place and that relatively few bounce-back loans are being provided by alternate lenders because they cannot find cheap enough funding, since they have no direct access to the Bank of England scheme.

The reason I mention this is that it describes to us the culture of major banks today. Many of us had hoped that after the 2008 crisis we would see a dramatic change in culture among the major high street banks. We have certainly seen some changes, and some are better than others, but we are still dealing with a group of institutions that, frankly, if given a loophole will use it. Amendments 46 and 47 are designed to close off two major sets of loopholes to make sure that proper consumer protection continues to be provided to SMEs that use the bounce-back schemes and to make sure that these do not become mechanisms that enable them to be taken advantage of in ways that they never anticipated. Therefore, Amendments 46 and 47 are vital to limit any potential for abuse.

Amendment 48 is important because it will help us track exactly what is happening under the Bounce Back Loan Scheme arrangements. We have all heard anecdotally that the big banks are cherry picking those to whom they make bounce-back loans. Some of them choose only existing customers because they do not want to overexpand their balance sheets; others pick from within those customers. As I understand it, the whole spirit of the bounce-back scheme is anathema to cherry picking, but it is taking place.

Amendment 48, in the name of the noble Lord, Lord Stevenson, would very rapidly make clear how many people are applying and who is rejected, and it would give us the ability to try to track exactly what is happening under this scheme. I know that something like £30 billion has already been lent through bounce-back loans but, frankly, that is well below the level that the Government expected. Those loans are a lifeline for many companies and we really cannot allow this scheme to be abused. If we are not careful, by the time we intervene, many businesses will already have closed their doors.

Business and Planning Bill

Baroness Uddin Excerpts

Committee stage & Committee: 2nd sitting (Hansard) & Committee: 2nd sitting (Hansard): House of Lords
Tuesday 14th July 2020 Lords Chamber

[The Deputy Chairman of Committees]

I have received a request from the noble Baroness, Lady Uddin, to speak briefly after the Minister.

[Baroness Uddin (Non-Afl) [V]]

My Lords, I wanted to speak in support of the noble Lord, Lord Kennedy of Southwark. I was not able to do so because I was muted from the other side; I therefore seek the leniency of the House in making my points.

In the past few months, we have become accustomed to approving measures retrospectively. Our debates have become mostly redundant because of the need to accommodate the next set of schedules and amendments. It has been important for me to put forward my views on this Bill.

Given the significant role of local authorities in the recovery of our communities, the reporting requirement in this amendment must detail the extra cost of how measures in this Bill will have an impact on local communities, as it is not clear. As a former councillor, I fear that the inevitable result will be a greater workload and higher cost for most authorities, including planning services. Many local authorities have been put on the back foot by some of the proposed measures and, by all accounts, feel sidelined.

As the noble Lord, Lord Paddick, and other noble Lords passionately detailed, it is local authorities and local police forces who will have to manage the fallout and environmental impact of any breaches or disputes and mop up after anti-social behaviour. I am in complete agreement with the points made yesterday by the noble Lords, Lord Paddick and Lord Sheikh, about the result and detrimental impact of increasing the availability of alcohol. Therefore, this House requires more than assurances on reducing closing times. The impact can be felt by local residents—as well as the police and health services, of course—long into the night.

I am also concerned about the planning aspects of the Bill coming into this emergency process. The three-monthly review required by this amendment is of the highest imperative in warranting the necessary transparency in, and safeguarding of, local consideration of public interests. The Bill would worryingly enable planned development delayed by the Covid-19 outbreak to go ahead, forgoing the usual standards, such as requirement of local public consent, as eloquently detailed by the noble Lord, Lord Balfe, and others.

I appreciate that responding to housing need is of the utmost urgency. As a former deputy leader of Tower Hamlets Council, I am also fully conscious of the central role of local authorities in the planning process, and their duties and obligations to meet the needs of local residents and communities. This is equally significant when considering the environmental and health effects of long working hours on residents, particularly children. What provision will be made for environmental standards in the proposed local government emergency planning reforms?

It is worth reflecting on the Government’s own recent deluge of impositions, usurping the local planning process, which would have obvious detrimental consequences, incurring significant financial loss to the community benefits available from a number of local planning permissions granted. For decades, this has been a creative partnership route, allowing local authorities to build a fairer and more balanced mix of social and private housing and community facilities. The delay to accessing the community interest levy suggested in the Bill is deeply unsatisfactory. What consideration will be given to working with housing associations to ensure that good-quality family housing will also be built through permitted development rights —not just expensive housing creating segregated communities and further exacerbating social division? If the Minister is not able to answer, I would appreciate it if he would write to me and other interested Members.

No matter the political expediency, I see no value in, or justification for, management or planning decisions falling under emergency measures. I agree with my noble friend Lord Hain and the noble Baroness, Lady Wilcox, who have cited justified concerns and questions about land banking and other tensions within local authorities that they have to deal with. Local authorities should be at the heart of planning consent, and the Government should not persist in allowing fast-tracking for developers, which will inevitably compromise community housing needs.

The Bill would amend existing requirements concerning appeals to the Planning Inspectorate and would be a permanent change to the appeal procedure; it is a fundamental shift in local democratic accountability. Therefore, will the Minister assure the Committee that the quarterly review will encompass independent and local oversight of all planning applications granted for housing under this emergency legislation? Will he also make public any objections raised by local residents to safeguard due process in all planning consent while this emergency legislation is in place? I am extremely grateful to all Members for their patience.

[Earl Howe]

My Lords, with the leave of the Committee, I will reply very briefly to the noble Baroness. I was sorry to hear her questions because it appeared from what she said that she is fundamentally against the purposes—or most of the provisions—of the Bill. I hope that is not the case and will of course consider the questions she has asked. I simply remind her that extensive consultation has taken place with the Local Government Association, voluntary bodies and local associations of various kinds, and we have not encountered hostility to the purposes of the Bill, which are of course to enable the economy—and businesses in the economy —to get going again after the dreadful pandemic that we have all endured.

We have, in fact, been over most of the points raised by the noble Baroness at some length already, whether at Second Reading or in these Committee proceedings. I also remind her that these are, with two exceptions, temporary provisions. The noble Baroness made as if to say that we were setting in stone forever provisions that she had considerable concerns about. This is not the case and I hope that, on reflection, she will feel that this is a Bill that the country wants and needs. I will look at her questions and respond in writing as appropriate.