Baroness Williams of Trafford
Main Page: Baroness Williams of Trafford (Conservative - Life peer)Housing and Planning Bill
Baroness Williams of Trafford Excerpts
Baroness Williams of Trafford
That this House do not insist on its Amendment 10B, to which the Commons have disagreed for their Reason 10C.
The Parliamentary Under-Secretary of State, Department for Communities and Local Government (Baroness Williams of Trafford) (Con)
My Lords, I want to be clear once more that Amendment 10B would undermine our manifesto commitment to build 200,000 starter homes by 2020. The requirement for starter homes would become something entirely different and not what we promised to deliver in our manifesto.
Our manifesto commits to starter home delivery at least three times. Let me quote directly from it to show that the commitment could not be clearer:
“As the party of home ownership, we want to go further and faster—and this manifesto sets out our plan. At its heart, a clear objective to build affordable homes, including 200,000 Starter Homes which will be sold at a 20 per cent discount, and will be built exclusively for first time buyers under the age of 40”.
The electorate will expect us to deliver our commitment and we are determined to do so. The Government have listened to this House on a number of aspects of this policy, including allowing for a taper and repayment mechanism when the property is resold. But the Government cannot compromise on the starter homes requirement. It is fundamental to delivering 200,000 starter homes within this Parliament.
More than 85,000 young people from across the country have now registered on our starter homes register of interest. We want these young people to have a chance of home ownership. The starter home model will give them such a chance. It will provide an opportunity for them to own their own home and, unlike many other home ownership products, will enable them to move onwards and upwards over time.
Elected honourable Members in the other place have been clear in their overwhelming support for delivering our starter homes commitment. They recognise the importance of starter homes for the long-term health of their communities and are receiving inquiries from interested constituents asking us to get on with delivering them.
As the honourable Member for North Cornwall said in the other place,
“we in this country have a right to own our own home and this Government are delivering that through this Bill”.—[Official Report, Commons, 3/5/16; col. 65.]
I am also in agreement with the honourable Member for South Ribble when she said:
“We need to get more houses built—and quickly … Developers and builders want certainty and speed”.—[Official Report, Commons, 3/5/16; col. 80.]
We will give them certainty through the straightforward, nationally set starter homes requirement.
We remain committed to delivering shared ownership and other forms of affordable home ownership products to help those who aspire to home ownership but cannot afford discounted purchase. They form part of a diverse and thriving housing market.
Our prospectus invites housing associations and other providers to bid for £4.1 billion of funding to deliver 135,000 shared-ownership homes, and £200 million to deliver 10,000 Rent to Buy homes. Local authorities will also still be able to deliver these products on site alongside the starter homes requirement where it would be viable. We estimate that 50,000 to 70,000 affordable homes can still come forward alongside our starter home requirement during this Parliament.
But this Bill focuses on starter homes to ensure the scale of delivery that we need. We strongly believe that a nationally set requirement for starter homes is essential to meet our manifesto commitment and we are consulting on the details for its operation. The requirement will be put in place through affirmative regulations, so Parliament will have a further opportunity to scrutinise the details.
We intend to deliver our manifesto commitment and I must therefore invite the House not to insist on Amendment 10B. That amendment would fundamentally change the Government’s manifesto intention as proposed in the Bill and it is therefore our view that the Salisbury convention is engaged.
We have a clear manifesto mandate to deliver our starter homes policy and I therefore invite the House to support Motion A and reject Motion A1 if it is pressed. I beg to move.
Motion A1 (as an amendment to Motion A)
Lord Beecham (Lab)
My Lords, I endorse my noble friend’s remarks about the issues perfectly properly raised by the noble Lord, Lord Cormack. From the Minister’s remarks, one might have thought that the amendment of the noble Lord, Lord Kerslake, was going to utterly sabotage the Government’s proposals for starter homes. There is no evidence to support that as a potential outcome if his amendment were to be approved. It does not replace the principle that the Government seek to advance; it complements it. We seem to be invited to adopt the Government’s position on starter homes, failing which we are going to get some starter Peers. We have probably had a few of those in the last few years but that is not a matter that ought to weigh too heavily on us.
I think noble Lords on all sides of the House endorse the Government’s ideas for promoting home ownership, particularly—but not necessarily exclusively—among younger people. After all, this is the week in which we are talking about mortgages for people up to 85 years of age. There are people above the age of 40, who have been on the housing ladder for decades, for whom this Bill will do very little. Whereas, a slightly more relaxed approach of the kind that the noble Lord, Lord Kerslake, is advocating, would assist them, without damaging the prospects of those aged 40 and under, for whom this part of the Bill seeks to provide some hope and action. I agree with that.
I sympathise with the noble Lord’s amendment. I regret that the Government do not appear willing to move towards something that would make a modest difference to the provision of housing for more people in a rather different way but not one which, in my judgment, would damage the Government’s intentions. It certainly would not contravene their manifesto commitment.
Baroness Williams of Trafford
My Lords, I thank all those who have spoken so clearly on this group.
As I said in my opening speech, and have made completely clear throughout the passage of the Bill in this House, a nationally set starter homes requirement is essential to delivering our 200,000 starter homes commitment. The amendment would mean that the requirement for starter homes would become something entirely different. This is not what we promised to deliver in our manifesto.
The Minister for Housing and Planning last night set out on the Floor of the House in the other place that we need to get on with helping those people to fulfil their dreams and get on to the home ownership ladder. Some 86% of our population want to be given that chance to do so. I am in complete agreement with him, and with my noble friend Lord Young of Cookham for reiterating the point that he made last night. It is,
“beyond astonishing that the upper House should try to amend a measure that has received such a clear message of support from this elected Chamber, and in respect of which we have an election mandate to help young people”.—[Official Report, Commons, 9/5/16; col. 459.]
Elected honourable Members have been clear in their overwhelming support for delivering our starter homes commitment, and, as my noble friends Lord Young of Cookham and Lord Cormack, said, Amendment 10B was rejected with a majority of 83.
This House has done its duty. It has scrutinised, and the Government have revised as far as they possibly can. It is time to stop and to recognise and respect the will of the electorate and the primacy of a manifesto mandate. The noble Baroness, Lady Hollis, said that the legislation had been rushed through and that the Commons had not scrutinised it properly. However, I understand from the Commons that timings were agreed, including by the Labour Whips. I have already made clear to the House that Amendment 10B would fundamentally change the Government’s manifesto intention as proposed in the Bill, and that we therefore consider the Salisbury convention to be engaged.
I once again reassure the House that the Government are completely committed to ensuring that a range of housing tenures come forward. These include shared ownership and other affordable home ownership products. However, we are legislating for starter homes alone as a new product, designed to address a specific gap in the market, and we have a clear manifesto mandate to do that.
I also reassure the House that the Government are consulting on setting the percentage requirement. These proposals include exemptions where a starter home requirement will not be expected. I would be happy to meet noble Lords to discuss this further before the resulting regulations are brought back to this House.
The noble Lord, Lord Kerslake, said that the percentage requirement was set at 20%. Twenty per cent is currently a consultation proposal and is not yet fixed. However, we are consulting the sector on this and other aspects of the starter home regulations. The noble Lord also talked about current proposals being rigid and inflexible. We are consulting on how the starter homes requirement will apply. This includes setting out exceptions on the basis of viability and the types of housing being built, such as housing for older people.
The noble Lord, Lord Beecham, suggested that this was not a wrecking amendment. We promised the electorate that we would deliver 200,000 starter homes by 2020. This was our election mandate and this amendment would undermine delivering that.
I have listened carefully to the debate, and I hope our clear manifesto commitment for starter homes means that there is no need to divide your Lordships’ House. With these reassurances in mind, I invite the noble Lord to withdraw his amendment to my Motion.
Lord Kerslake
My Lords, I am grateful for the contributions to this debate on starter homes. I entirely understand and respect the constitutional issues at stake here. This House is clearly a revising and improving Chamber and, ultimately, the other place will prevail. That is the democratic propriety, and that is as it should be. I also recognise the issues associated with how the conventions work. The 2006 report referred to by the noble Lord, Lord Young, was not taken up within the context of the Companion, and my amendment complies with the rules as set out in the Companion. I absolutely respect the views put forward by the noble Lord, Lord Cormack. He and I worked very productively on the Trade Union Bill and saw very substantial improvements.
The challenge is judging the impact of what is proposed and whether it will deliver more homes—which we desperately need in this country—or, indeed, the 200,000 starter homes the Government seek. Personally, I severely doubt whether it will deliver what is intended. Notwithstanding what the Minister has said, it is in many ways a rigid proposition. I also recognise that it is a manifesto commitment and that Ministers have expressed a concern that the amendment will undermine that. I am alert to the Minister’s assurances on the consultation and the flexibility that will be built in. At this point I will, therefore, reluctantly withdraw the motion.
Baroness Williams of Trafford
That this House do not insist on its Amendments 47B and 47C, to which the Commons have disagreed for their Reason 47D.
Baroness Williams of Trafford
My Lords, I turn to another manifesto commitment—high value vacant local authority housing. I start by reminding your Lordships’ House what the manifesto said:
“We will fund the replacement of properties sold under the extended Right to Buy by requiring local authorities to manage their housing assets more efficiently, with the most expensive properties sold off and replaced as they fall vacant”.
The Bill delivers that manifesto commitment. It will increase housing supply through the delivery of affordable homes, and extend home ownership by funding the discounts for the ground-breaking voluntary right-to-buy agreement. Let me be clear: the manifesto says that the homes sold will be replaced with new homes. It does not say that there will be like-for-like replacement. We want to make sure that the new homes serve the needs of communities, today. We do not see a reason to commit ourselves to reproducing exactly the same type of home when communities have changed and the need for housing may be different. We want to retain flexibility in the legislation so that the Government, working with local places, can facilitate the development of the type of homes we need today.
Noble Lords have used their scrutiny role to great effect. The House has helped to improve the Bill in many ways. However, we cannot accept amending the Bill in a way that would prevent us delivering on our manifesto commitment. As the Minister for Housing and Planning explained in the Commons yesterday, the Government could not accept Lords Amendments 47B and 47C because they would significantly reduce the funding available for the voluntary right to buy. The other place has been clear that it does not agree with the fundamental changes that have been proposed to the agreements process. Twice it has emphatically rejected amendments from your Lordships’ House—by 288 votes to 172 last Tuesday, and then, yesterday, by 291 votes to 203. That shows their strength of feeling.
In addition, the House of Commons has, for a second time, offered a financial privilege reason for rejecting our amendments on this issue. I respect, and would defend, the right of this House to propose an amendment in lieu when the Commons has rejected our original amendment on grounds of financial privilege. However, I remind noble Lords that the Joint Committee on Conventions reported in 2006 that:
“If the Commons have disagreed to Lords Amendments on grounds of financial privilege, it is contrary to convention for the Lords to send back Amendments in lieu which clearly invite the same response”.
This House has already sent back one set of amendments in lieu which invited the same response of financial privilege—Amendments 47B and 47C, which were sent to the Commons last Wednesday. Motion B1 in the name of the noble Lord, Lord Kerslake, invites the House to offer Amendment 47E in lieu. At first glance, that amendment also has major implications for how the voluntary right-to-buy commitment will be funded and therefore could invite the same response. I hope the House will be mindful of that convention as we debate and decide on the Motions before us today.
Lord Beecham
My Lords, last night the Commons spent all of 52 minutes debating the amendments passed by your Lordships’ House. In the course of the debate, the Minister, Brandon Lewis, asserted that this House had,
“chosen again to oppose one of”,
the Government’s,
“most important manifesto commitments, namely the commitment to ensure that more homes are built: homes that we need, and homes that young people are crying out for”.
To borrow a phrase from a somewhat more famous Conservative, Winston Churchill, that is a “terminological inexactitude”. It is perhaps less personal than the assertion by a Conservative Back-Bencher that the manifesto commitment was,
“struck down and circumscribed by the unelected, unaccountable panjandrums in the House of Lords”.—[Official Report, Commons, 9/5/16; cols. 458-59.]
I declare my interest, and perhaps others of your Lordships do so as well.
The Conservative manifesto commitment was to build 275,000 affordable homes by 2020 and all of—my words, not theirs—10,000 homes to rent at below market rents. Nothing in the Motion moved by the noble Lord, Lord Kerslake, conflicts with the manifesto commitment to build more homes. Part of the problem lies in the repeated use of the adjective “affordable”, and the failure of the Bill—and Ministers—to define the term other than in relation to starter homes, where the examples of affordability, reaching up to £450,000, are widely recognised as unrealistic. But the particular difficulty is the evident and extreme reluctance of the Government to acknowledge the need for affordable housing, which essentially means social housing, for rent, beyond identifying the massive programme of 2,000 houses a year at below market rents for the next five years.
The Government purport to address this issue by the provisions of the Bill which allow, but do not require, the Secretary of State to enter into agreements with councils to reduce the amounts they would have to pay to the Secretary of State, principally to fund the right to buy of housing association tenants. There is no requirement to do so, beyond the need in London, under an agreement for two-for-one replacement, and one-for-one elsewhere; but there is no requirement for the replacement to be by way of like-for-like tenure—only that replacements should be “affordable”. Moreover, as we have heard at some length during the passage of this Bill, the Government are unable to produce figures defining the meaning of “high value”, or the number of properties affected locally or nationally, or the likely rate of vacancies, or the cost of administering the scheme, or how they will judge how much to require councils to pay up-front annually, since the Bill envisages such payment will be required whether or not sales are effected. To misquote Marx—Groucho, not Karl—“A child of five could understand the impact of this policy. Bring me a child of five”, or perhaps, in these days, a special adviser.
Ministers constantly state that there are 16 million pieces of paper relevant to this issue and they are therefore unable to make any assessments. In that case, surely the answer is not to legislate before any real assessment of the impact is made, and not to rely on unamendable secondary legislation to ram through controversial and untested policies. That brings me to the claim that financial privilege prevents us from amending the Bill. The Government have already accepted some amendments with possible financial consequences, but the point is that financial privilege is not some God-given formula by which this House is prevented from amending legislation. We are not in the Moses Room with tablets of legislative stone; Governments can choose not to invoke or apply financial privilege, and we are entitled to invite them to do so. In any case, as the noble Lord, Lord Kerslake, suggested, the amendment does not breach financial privilege.
The Motion moved by the noble Lord is a modest one. All that it seeks is that in calculating the financial adjustments to be made on the forced sale of high-value properties, councils should be able to retain sufficient money to provide two-for-one replacements in London, and one for one elsewhere, with the rider that the Secretary of State should consider allowing sufficient to be retained to permit that replacement by social housing for rent, when they can demonstrate need. It is not carte blanche—it is still a matter for the Minister to agree. It is the least that could reasonably be asked for. It is consistent with the manifesto pledge to build more homes, and it deserves the support of the House, and indeed of the Commons. In no way does it override a manifesto commitment, and if the noble Lord invites the House to ask the Commons to think again, the Opposition will support him.
Baroness Williams of Trafford
My Lords, I thank all noble Lords who have spoken so eloquently on the amendment, particularly my noble friends who are such constitutional experts, far more so than me—my noble friends Lord Forsyth, Lord True and Lord Cormack. My noble friend Lord Cormack asked initially about the regulations and working with noble Lords. I hope that, whatever noble Lords think about the Bill, they will agree that I have taken the time whenever needed to engage with noble Lords from across the House to discuss any aspect of legislation or regulations that they might wish—and I fully intend to continue in that role.
Amendment 47E, proposed by the noble Lord, Lord Kerslake, in lieu of Amendment 47, is not acceptable to the Government. It would require that, when the Secretary of State enters into an agreement, sufficient funding must be provided to fully fund the cost of the new home. I hope that noble Lords will not misinterpret me when I say that the Government want more housing to be built, and I hope that the noble Lord will recognise that the arguments that this House recognised in relation to the last group apply just as strongly now. We have listened, and I have reassured this House strongly on how flexible agreements will be. It is now time to stop undermining our ability to proceed and to let us deliver our manifesto commitments.
We support the involvement of local authorities in delivering new homes. We value the creative partnerships across the sector to increase housing supply. But additional homes should not be funded simply through retained payments from the sale of high-value vacant housing. We have discussed that at length throughout the course of the Bill. There should be opportunities for local authorities to contribute their land, assets or funding, and to work in partnership with other providers in their area to build homes. We also want to ensure that value for money is secured, and ensure that the homes are delivered as cost effectively as possible.
In placing expectations on receipts, the amendment would prevent the Government from fulfilling their manifesto commitment, because it would significantly reduce the funding available for the voluntary right to buy. Since November last year, more than 29,000 housing association tenants have asked to be kept up to date with the right-to-buy scheme via our website. It is not right that we should deny these tenants their dream of home ownership.
The noble Lord, Lord Beecham, talked about numbers. Let us reflect a bit back to the Conservative-led coalition being the first Government to end a Parliament with more affordable homes than we started with. Labour oversaw the loss of 420,000, by contrast. This is about our manifesto commitment to extend the right to buy.
The noble Lord, Lord Beecham, talked about the financial privilege that the Government look to invoke. That is not true—it is a matter for the Commons Speaker on the advice of Commons clerks. It is not a political decision. I do not know a lot about the constitution, but I do know that.
The noble Lord, Lord Kerslake, talked about increased homelessness. A key part of this policy is to release the value locked up in vacant higher-value housing assets in order to build more homes. We are committed to supporting the most vulnerable in our society to have a decent place to live. Since 2010, we have invested more than £500 million to help local authorities prevent nearly 1 million households becoming homeless. Time spent in temporary accommodation ensures that no family is without a roof over their heads. We have made common-sense changes to the law to allow local authorities to offer accommodation in good-quality private sector accommodation, and households, on leaving temporary accommodation, now spend on average less time in temporary accommodation than they did in 2010.
The noble Lord, Lord Shipley, asked why we would not agree to the amendment proposed by the noble Lord, Lord Kerslake, to enable homes to be built on a like-for-like basis. Our manifesto made it clear that we wanted to increase home ownership and drive up the supply of new homes. The receipts from the sale of high-value assets will enable us to deliver both of these commitments. The receipts will be used to give up to 1.3 million housing association tenants the right to the same level of right-to-buy discount as has been enjoyed by local authority tenants for decades.
But—and this is equally important—it will provide receipts that local authorities that enter into agreement with us will use to provide affordable homes. When they choose not to—and some will choose not to—the money will be returned to government to provide additional homes. As I have previously explained, the proceeds from right to buy will contribute to the funding that the housing association will use to provide an additional home for the one that is being sold, and an additional two homes in London.
Baroness Williams of Trafford
Moved by
That this House do not insist on its disagreement with the Commons in their Amendment 97A in lieu of Lords Amendment 97 and do not insist on its Amendment 97B in lieu of that Lords Amendment, to which the Commons have disagreed for their Reason 97C.
Baroness Williams of Trafford
My Lords, the Government place communities at the heart of the planning system. We have gone further than ever in giving communities the power to develop neighbourhood plans that set the planning policies for their area. The strength of feeling in this House on the issue of a neighbourhood right to appeal was made very clear. However, with more than 150 adopted neighbourhood plans in England, and more than 1,700 more at various stages of completion, the introduction of a right of appeal could have far-reaching consequences. As I have reiterated in these debates, we believe that a third-party right of appeal would add complexity to the planning system and slow down housing delivery.
We trust communities to shape future development through neighbourhood plans. We trust local planning authorities to take decisions for sustainable development and to listen to their communities. We cannot maintain a balanced planning system if every decision to approve a sustainable development is open to a lengthy and costly appeal.
The other place—the elected House—did not accept the Lords amendment on a neighbourhood right of appeal. It has rejected it twice without even a vote, so this is not the time to push any further. I hope that I can reassure noble Lords that they have been heard. The Minister for Planning and Housing has given an undertaking to the other place that he will look into this matter further.
I am obviously disappointed that your Lordships’ House did not previously support the Government’s amendment in lieu, which would have ensured that local planning authorities provided a very clear explanation of why the authority could justify recommending a decision that would conflict with a neighbourhood plan. However, we have the opportunity to return to this matter now. The Government’s amendment in lieu would require local planning authorities to set out in any report to a planning committee that recommends granting planning permission how any neighbourhood plan has been considered. They will also be required to identify in the report any conflict between their recommendation and the neighbourhood plan. This will ensure that the planning committee cannot fail to appreciate how the development accords with the neighbourhood plan and provides communities with the opportunity to raise any further concerns directly with their local councillors or to attend and request to speak at the planning committee. It also draws attention to the issues of conflict in case the community wishes to request call-in by the Secretary of State. Let me be very clear that communities can request that any application is considered for call-in before a decision letter is issued.
This added level of transparency and explanation will ensure that local planning authorities are absolutely clear about how they have balanced the neighbourhood plan against other material considerations that they are required to take into account. This amendment is a proportionate and appropriate response to ensuring that neighbourhood plans are given the respect and consideration they deserve. I beg to move.
Motion C1 (as an amendment to Motion C)
Baroness Parminter
Moved by
Leave out from “House” to end and insert “do insist on its disagreement with the Commons in their Amendment 97A, do not insist on its Amendment 97B, and do propose Amendment 97D in lieu of Amendment 97A—
Lord Kennedy of Southwark (Lab)
My Lords, first, I refer noble Lords to my declaration of interests and declare that I am a locally elected councillor in the London Borough of Lewisham.
We have discussed the neighbourhood right of appeal on a number of occasions in your Lordships’ House, and I was convinced that the limited right of appeal, which the noble Baroness, Lady Parminter, has put forward on a number of occasions, was the right approach. However, despite that and numerous discussions, the Government have not been persuaded that this is the correct way forward. That is disappointing.
The government amendment agreed in the Commons makes some moves in the right direction but, as the noble Baroness told the House on 4 May, what is proposed here, set out on page 5 of the Marshalled List before us today, is what you would expect any good local planning authority or planning officer to do anyway. Therefore, I am under no illusion that what is before us from the Government is a particularly significant concession. As I said earlier, that is disappointing, and we should go a bit further.
When I look at this Bill, I often reflect back on the Localism Act. It appears that the government Benches are less keen on localism than they may have been a few years ago. In general, they talk about localism when they like what is going on, and when they do not like it, we have to do what they say. As I said, there is a bit of a hokey-cokey on localism from the government Benches. That is not the way to go, and it is disappointing. The noble Baroness has given us another possibility, and maybe we will have some good news from the Minister.
Baroness Williams of Trafford
My Lords, I thank the noble Baroness, Lady Parminter, for her amendment and for the way she has worked with me throughout the passage of the Bill—she might think not to very great effect, but we have had extensive debates regarding a neighbourhood right to appeal, and I am pleased that we are able to return to this issue in quite a constructive manner. We all agree on the importance of neighbourhood plans and we wish to see the planning system working without unnecessary costs and delays. We also wish to see the planning system deliver sustainable development and the homes our communities need.
While I very much welcome the direction of travel of the amendment, which is focused on the call-in process, now is not the time to pursue the matter. This issue was not part of the original Bill and the other place has made clear its approval of the Government’s amendment in lieu. The Minister for Planning and Housing has made it very clear that he is willing to work with colleagues to return to this issue in due course. I hope that this is as encouraging to noble Lords as it was to certain Members of the other place—and particularly to organisations such as CPRE which have lobbied on this matter.
Although the Government cannot support this amendment, I understand the advantage of an approach that is based on the existing call-in system and the constructive manner in which it was laid. The Government are willing to look at this issue further, and I hope that provides the reassurance to the noble Baroness for her to withdraw her amendment.
Baroness Williams of Trafford
That this House do not insist on its Amendment 108 and do agree with the Commons in their Amendment 108C in lieu.
“Review of minimum energy performance requirements
After section 2B of the Building Act 1984 insert—
“Duty to review minimum energy performance requirements
2C Review of minimum energy performance requirements
The Secretary of State must carry out a review of any minimum energy performance requirements approved by the Secretary of State under building regulations in relation to dwellings in England.””
Baroness Williams of Trafford
My Lords, this amendment would place a statutory duty on the Government to undertake a review of minimum energy performance standards for new homes in England. It should be noted that there was very strong support in the other place for this new amendment, with a vote of 292 in favour of rejection compared to 205 against.
We share a common goal of wanting new homes to be energy efficient and for their occupants to have low energy bills. That is why in the last Parliament we introduced tough but fair minimum standards that require homebuilders to deliver highly energy-efficient homes that reduce energy bills by £200 a year compared to homes built before 2010.
We have said throughout the various debates that putting a minimum energy performance for new homes in primary legislation, without the benefit of any evidence that it will work or consultation, has the potential to push some small builders out of the industry and make developing much-needed homes in some areas unviable.
The Home Builders Federation—the voice of the industry—completely agrees with us about these concerns. It said of Amendment 108 that,
“such a standard would add to the complexity and costs for all sizes of home builder but would hit smaller home builders hard”.
The HBF also draws attention to,
“the specific challenges entailed in delivering performance standards such as the ‘carbon compliance standard’ successfully at scale and the consequent risks to housing supply of not getting the answers right.”
We recognise, however, that costs of energy efficiency measures and the industry’s understanding of them can improve over time. That is why we propose placing a statutory duty on this Government to undertake a review of energy standards for new homes. It will seek evidence on the costs of energy measures and the impact on housing supply and the benefits in terms of fuel bill and carbon savings. It will identify what is cost-effective and feasible.
The HBF also fully endorses such a review and says:
“Given the wide range of technical and other challenges involved in this field, the risk to businesses and housing delivery in further changes to regulatory requirements and the importance of increasing housing supply, such a review would provide the opportunity for all relevant issues and considerations to be properly weighed in determining the way ahead. It is essential such issues are fully addressed”.
Prescribing an energy performance standard without up-to-date evidence and analysis risks slowing down or halting much-needed new homes and driving small homebuilders away from the industry. We should not take such a risk with homes and businesses. I beg to move.
Motion D1 (as an amendment to Motion D)
Lord Kennedy of Southwark
My Lords, I was surprised that the Government rejected the Lords amendment in the other place last night and am pleased that the noble Baroness, Lady Parminter, has brought back another amendment to be considered today by your Lordships’ House.
Resistance to this measure is puzzling to say the least. Delivering zero-carbon homes is an important standard that we should strive to achieve. It helps reduce our carbon footprint and gives people living in the properties to be built cheaper fuel bills.
In previous debates, the noble Viscount, Lord Younger of Leckie, and the noble Baroness, Lady Williams of Trafford, have relied a number of times on the opposition of the Federation of Master Builders despite there being numerous organisations that support the measure. The noble Viscount said that he would write to me giving a list of other organisations that support the Government’s position. I have not had that letter yet; perhaps the Minister could tell me when I will get it, because it would be useful to see who these other organisations are. It is also important to remember, as the noble Baroness, Lady Parminter, reminded us, that the zero-carbon homes standard was agreed by the coalition Government in the last Parliament.
As the noble Lord, Lord Krebs, said—the noble Baroness, Lady Parminter, also mentioned it—we do not want in a few years’ time to be required to undertake expensive retrofit measures when we could have done the work during the initial construction at a fraction of the cost.
The Government’s claims as to the initial costs are just not convincing. At no point during our consideration of this part of the Bill have I felt that the Government made a convincing or compelling case for why this measure should not be supported. If the noble Baroness wishes to test the opinion of the House, we will support her.
Baroness Williams of Trafford
My Lords, just to say to the noble Lord, Lord Kennedy, I will chase my noble friend. I think he might have gone to get the letter, actually.
It is helpful that the noble Baroness, Lady Parminter, has revised the carbon compliance standard in her new amendment, but we still do not know the risks it may pose to the viability of home building in some parts of the country, or the impact it may have on the home building industry, particularly some small builders. We need a clear understanding of what is technically possible, viable and cost effective to make any changes to energy performance standards for new homes. That is why we are introducing a statutory duty on this Government to undertake a full and comprehensive review of energy standards based on cost effectiveness and the impact on housing supply. We will report back to this House on the outcome of the review within the next 12 months.
The other place has given its considerable support to this review based on cost effectiveness, and it is supported by the Home Builders Federation—the main trade body that represents home builders of all sizes. The Housing Minister in the other place also pointed out the following yesterday:
“We said in our manifesto that we will meet our climate change commitments and that we will do so by cutting emissions ‘as cost-effectively as possible’. The electorate voted for that and the review will help to ensure that we can deliver it”.—[Official Report, Commons, 9/5/16; col. 463.]
So before the other place considers any changes to energy performance standards, home builders and the electorate think that we first need to have an understanding of what is cost effective. Is it right that we should go against their views?
Finally, I remind the House that it is not prudent to set requirements such as this in primary legislation. If, in the light of consultation, any slight adjustment to requirements were needed, we would not be able to do so without further primary legislation. Therefore, I ask the noble Baroness, Lady Parminter, to withdraw her amendment.
Baroness Parminter
My Lords, I am deeply disappointed that the Government do not feel able to accept this amendment. While I heard what the Minister said, it is still not clear exactly how the Government will meet their binding climate change commitments if they will not accept the amendment. They talk about doing so in a cost-effective manner, but the trajectory of the roadmap is unclear if we do not propose a building standards target.
The Minister talks about the risks the amendment might pose to building homes, yet we know that local authorities up and down the country already insist on this standard as a condition for planning permission. We know that London is going further and that Scotland is taking this forward in an effective way. My contention, therefore, is that the Government have not been able to prove beyond reasonable doubt that their measure will not stop us building the houses we need; it certainly will not help us to meet our greenhouse gas targets or our fuel poverty obligations.
Even if we accepted the case for a review, there is absolutely no commitment in what the Minister has said today to government action at the end of the review. Nothing might happen. It was the Chancellor who last year cancelled and scrapped the zero carbon aims, and it was the previous Secretary of State who cancelled the code for sustainable homes, and I am afraid that that does not give me enough comfort that there is a real and genuine commitment to act. Similarly, the Minister again talked about cost effectiveness. Yes, we need homes that are cost effective but we must at the same time meet our greenhouse gas targets and contribute to our fuel poverty obligations. It is those three things together, not just cost effectiveness.
This amendment is another compromise, and it should be accepted this time. It would make a significant contribution in delivering the homes we need, in meeting our greenhouse gas targets and in lowering fuel bills. I deeply regret that the Government will not accept it, and I wish to test the opinion of the House.
Baroness Williams of Trafford
That this House do not insist on its Amendment 110 and do agree with the Commons in their Amendment 110C in lieu.
“Sustainable drainage
The Secretary of State must carry out a review of planning legislation, government planning policy and local planning policies concerning sustainable drainage in relation to the development of land in England.”
Baroness Williams of Trafford
My Lords, the Government have recognised, here and in the other place, the depths of everyone’s concerns about managing the risk from flooding. My colleague the Minister of State for Housing and Planning said in the other place:
“The Government are committed to ensuring that developments are safe from flooding, and the delivery of sustainable drainage systems is part of our planning policy, which was strengthened just over a year ago. Our policy is still new, as I outlined in more detail last week, and I am willing to consider issues further as it matures. I am happy to review the effectiveness of current policy and legislation on sustainable drainage and to place that commitment on the face of the Bill”.—[Official Report, Commons, 9/5/16; col. 463.]
This amendment, proposed by the other place, introduces an express duty on the Government to carry out a statutory review of the strengthened planning policy in respect of sustainable drainage systems.
As I have made clear, the National Planning Policy Framework includes strong planning policies aimed at assessing, avoiding and managing risk from flooding. These policies apply to all sources of flooding, including from surface water run-off and overloaded sewers. Our planning policy guidance makes it plain that local councils must consider the strict policy tests that protect people and property from flooding, and gives local councils a clear mandate to reject unacceptable planning applications. This includes consideration of whether sustainable drainage provision in a development is appropriate. This planning policy was strengthened just last year.
I am confident that we have a strong package of measures in place that will ensure development is safe from flooding. I am also confident that sustainable drainage is given a full role in this. However, it is very important that any judgment about how this planning policy is performing on the ground must be based on reliable, up-to-date evidence. For that reason, we believe that the correct approach is to review how effective the policy has been over a sensible period of time before putting in place any new requirements or changes. Any changes should be based on the evidence and recommendations from the review. Evidence offered to this House to date is at best anecdotal and cannot be a firm basis for legislation. I therefore ask that noble Lords accept that this is a sensible approach. I beg to move.
Motion E1 (as an amendment to Motion E)
Lord Kennedy of Southwark
My Lords, I was surprised that the Government rejected this amendment when it went to the other place. Ensuring that we build homes and have sustainable drainage is a positive thing. When we discussed this matter the other day, the amendment of the noble Baroness, Lady Parminter, sought to remove the automatic right of connection to ensure that the drainage system would be considered and resolved early on and not left to the end. It was suggested that the amendment was unnecessary or unworkable. I am not convinced that either is the case.
The noble Baroness, Lady Williams of Trafford, proposed Motion E. This goes some way in the right direction. It commits the Government to,
“carry out a review concerning sustainable drainage in relation to the development of land in England”.
That is to be welcomed, but I am aware that a review is a review and it commits the Government to nothing beyond that. The noble Baroness, Lady Parminter, and the noble Lord, Lord Krebs, asked some pertinent questions about timescales—when the review will come before Parliament and what action will come out of it. When the Minister responds to the debate, it would be useful if she could cover these points.
Baroness Williams of Trafford
My Lords, I emphasise that we are committed to ensuring that developments are safe from flooding and that the delivery of SUDS—if I can call it that—forms part of our policy approach. Both the noble Lord, Lord Krebs, and the noble Baroness, Lady Parminter, asked whether the review would be thorough, robust and look at evidence on the ground. The answer to all three is yes.
The Motion moved by the noble Baroness, Lady Parminter, would include a review of all development, the scope of which would be too broad. The amendment also refers to the non-statutory technical standards, which is for guidance only. I therefore cannot accept the amendment. I hope that noble Lords will accept that, while we join them in supporting the use of SUDS, it would not be appropriate to make changes at this point, until we have the evidence on which to base any changes.
Lord Kennedy of Southwark
My Lords, the amendment from the noble Baroness, Lady Parminter, talks about a date of 31 April 2017. There is nothing in the government amendment. Can the Minister give the House any idea of timescale?
Baroness Williams of Trafford
My Lords, I appreciate what the noble Lord, Lord Krebs, said about his committee reporting back next summer, so I will work, as I hope I always do, with noble Lords constructively towards a suitable timescale, though I cannot give the commitment at this point.
Baroness Parminter
My Lords, I thank the noble Baroness for those remarks. They are indicative of the thoughtful and careful way in which she has handled negotiations on this difficult Bill. I am grateful for the time she has given to me and to other Members of this Chamber, particularly on this issue. I know it means so much to her and to other Members around this House. It will directly affect home owners who have already, in recent months, been so devastatingly affected by flooding. We have to ensure that houses we build in future do not lay them open to unnecessary flooding risks.
I am clearly disappointed that previous amendments which I think were reasonable were rejected but I accept the kind offer from the Government of a review. The Minister has given reassurances from the Dispatch Box around the thoroughness of the review and working towards a date to enable comments to come forward in a timely manner so that the House can hear from the Committee on Climate Change. I beg leave to withdraw the Motion.