Migration and Border Security
Barry Gardiner Excerpts(3 weeks, 2 days ago)
Commons ChamberRead Full debate Read Hansard Text Watch Debate Read Debate Ministerial Extracts
Yvette Cooper
I know that the Immigration Minister, my hon. Friend the Member for Wallasey (Dame Angela Eagle), has already answered some of the questions that the right hon. Gentleman has raised. He is right to express concern about asylum hotels. There are now 220 asylum hotels in use. He will know that his Government opened 400 asylum hotels. We have had to deal with the collapse in asylum decision making. In the last few months before the general election, the Conservatives went down to just a few hundred decisions being taken a week, rather than thousands of decisions each week. That was deeply damaging, and we have had to deal with it, so that we can turn things around by clearing the asylum backlog and ending hotel use.
Barry Gardiner (Brent West) (Lab)
It is clear that my right hon. Friend inherited a chaotic immigration situation from the last Government, and I commend her on the work she is doing. She rightly focused on international co-operation, but principally on removals. Does she accept that, in a world as interconnected as ours, migration can no longer adequately be managed by treaties that are now more than 70 years out of date? We need to co-operate with our international partners, to create a new structure and a new settlement for managing global migration.
Yvette Cooper
My hon. Friend makes important points, because countries do need to work together and to look far more at some of the causes of migration. That is why we set out at the European Political Community summit an additional £80 million fund to look at earlier prevention work and how we address some of the causes of migration in the first place, as well as the law enforcement response that we need to go after the criminal gangs.
Antisemitism in the UK
Barry Gardiner Excerpts(10 months ago)
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Chris Philp
Yes, I am, and the police do it. For example, on Saturday, a convoy was planned from the north of England to north London, many parts of which have Jewish communities. The police stopped that convoy because they were concerned that it would inflame tensions and that the convoy would engage in intimidatory behaviour.
Under sections 12 and 14 of the Public Order Act 1986, the police also have powers to place conditions on both processions and assemblies where they feel they will lead to disorder, and they use those conditions; in fact, they used them at the weekend. The marchers originally planned to go right up to the Israeli embassy in Kensington, but conditions were imposed to prevent their getting within undue proximity of that embassy. In fact, my hon. Friend the Member for Kensington (Felicity Buchan), who is sitting next to me on the Front Bench, made direct representations to the police on behalf of her constituents, raising concerns about the marchers’ plans. The police have those powers, and have used them more than once, as recently as this weekend.
Barry Gardiner (Brent North) (Lab)
The Minister will be aware that the largest Jewish school in Europe—JFS—is in my constituency, and I want to thank the CST for its vigilance and service on behalf of all the students and their families. Sadly, only last month a student was physically attacked by a group of youths outside the school, and those youths goaded the student about the situation in Palestine. Would the Minister agree that nothing can justify such an attack on an innocent schoolchild, and does he accept that, whatever one believes about the actions of the Israeli Government, racism and anti-Jewish hatred must not be allowed to hide behind any political mask?
Chris Philp
The hon. Gentleman is quite right. The events in Gaza, or indeed anywhere else in the world, provide no basis, reason or excuse at all to inflict racist abuse on citizens in this country. There is no justification whatsoever for antisemitic attacks on Jewish people in this country because of what is happening elsewhere in the world. What happened to that boy outside the Jewish free school, JFS, in his constituency and what has happened—sadly, tragically—to thousands of members of the Jewish community in recent months is totally unacceptable and totally without excuse, and the police should act to make arrests where that happens.
Leasehold and Freehold Reform Bill (Second sitting)
Barry Gardiner ExcerptsTuesday 16th January 2024
(11 months, 1 week ago)
Public Bill CommitteesRead Full debate Leasehold and Freehold Reform Act 2024 View all Leasehold and Freehold Reform Act 2024 Debates Read Hansard Text Read Debate Ministerial Extracts Amendment Paper: Public Bill Committee Amendments as at 16 January 2024 - (16 Jan 2024)
Rachel Maclean
Q
Professor Hopkins: The risk at the moment is that the legal regime that governs commonhold is too rigid. It does not apply effectively in larger, mixed-use developments, because they were not envisaged at the time. The risk is that you mandate a legal regime that does not work. You need a legal regime that works, which could then be mandated if that is what the Government chose to do.
Barry Gardiner (Brent North) (Lab)
Q
Professor Hopkins: I do not think I would like to comment on whether specific amendments or recommendations could be introduced. They would have to be seen in the light of what they would do to the scheme that is in the Bill and how the provisions interrelate. That basic uplift from 25% to 50% is significant and will enable many more leaseholders to exercise their rights. There are perhaps things around the edges, but what is there is beneficial.
Barry Gardiner
Q
Professor Hopkins: Yes, although you have to look at what impact that would have in terms of what is in the Bill as it stands.
Barry Gardiner
Q
Professor Hopkins: It is certainly the case that it is easier to do things with new builds than it is for existing leasehold blocks. Our report includes recommendations on the conversion of existing blocks, which is undeniably more complex than building a commonhold block from the start.
We concluded in our report that commonhold was the preferred tenure because it gives the advantages of freehold; leasehold is really performing a job it was never designed to do. When I gave evidence to the Select Committee on the Ministry of Housing, Communities and Local Government, as it then was, I said that if commonhold works, you do not need leasehold. But whether you then mandate commonhold is not just a legal question; there is a political question there.
Barry Gardiner
Q
Professor Hopkins: Again, all these things are Law Commission recommendations, and I am always going to say that the Law Commission would like to see our recommendations implemented—
Barry Gardiner
I am delighted; that is what I wanted you to say.
Professor Hopkins: But I cannot say whether they are the right things or the most impactful things to add to the Bill. What is there is great and is going to be hugely beneficial. There are lots of other things in our recommendations that would benefit leaseholders—
Barry Gardiner
Q
Professor Hopkins: No, that is absolutely not my view. Whatever happens with commonhold, leasehold is going to be with us for a long time. There are people who own 999-year leases. The system has to work. When we published our reports, we published a summary of what they were seeking to do. We identified them as having two distinct aims. One is to make leasehold work, and work better, for those who now own the leasehold and who will own it in future. Secondly, it is to pave the way for commonhold to be available so that everyone can enjoy the benefit of freehold ownership in future. But we always saw those as two entirely legitimate aims that legislation would need to pursue.
Barry Gardiner
Q
Professor Hopkins: Yes. Conversion is always going to be more difficult than building from the start. We have recommendations that would enable conversion and enable more people to convert than can at the moment, where unanimity is required, but leasehold is going to be with us for a very long time.
Barry Gardiner
Well, it has been with us for a very long time, hasn’t it?
Professor Hopkins: Yes. So the system has to work, and that is what the Bill achieves in relation to leasehold.
Richard Fuller (North East Bedfordshire) (Con)
Q
Professor Hopkins: The Bill ensures that those rates will be prescribed by the Secretary of State. At the moment, on every enfranchisement claim—whether it is the lease extension or the purchase of the freehold—the rate used to capitalise a ground rent and to determine the price paid for the reversion has to be agreed for the individual transaction. That is a significant source of dispute, and it is a dispute where there is a real inequality of arms.
The leaseholder is only interested in what they have to pay for their home and the landlords have an eye not only to that particular property, but also to what it would mean for their portfolio of investments—so they agree a particular rate on one flat in a block, for example. The Bill ensures that those rates are fixed by the Secretary of State and mandated, so there is then no argument about what rate applies in an individual case. It takes away that whole dispute and ensures that the same rates are applied in all claims.
Barry Gardiner
Q
Matt Brewis: I cannot talk about individual cases. However—
Barry Gardiner
Q
Matt Brewis: Yes.
Barry Gardiner
Q
Matt Brewis: The value assessments I talked about require firms to approve what value they are providing, for there to be transparency to a leaseholder around—
Barry Gardiner
Q
Matt Brewis: Under our new rules, which came into force at the start of this year, that needs to be provided.
Barry Gardiner
Q
Matt Brewis: The new Financial Conduct Authority rules around this do provide that, in a way that was not the case previously.
Barry Gardiner
Q
Matt Brewis: I believe that would be duplication of a clause that is already in the new rules from the regulator, which require a broker to provide that information.
Barry Gardiner
Q
Matt Brewis: In the event that the freeholder is not forthcoming with the contract, it is incumbent on the insurer to provide a copy of the contract to the leaseholder directly. It is in our rules that the leaseholder has the option of going directly to the insurer now, in order to get a copy of that contract, in a way that was not previously possible.
Barry Gardiner
Q
Matt Brewis: Yes, and they will be in breach of the FCA rules if they do not provide it.
Barry Gardiner
Q
Matt Brewis: Which insurer it is?
Barry Gardiner
Q
Matt Brewis: If you follow that chain of events, when they do not know who the broker is and they do not know who the insurer is, and the landlord refuses to provide the documentation—
Barry Gardiner
Q
Matt Brewis: One would hope—expect—that it is a very low-likelihood situation, but that would be the case.
Barry Gardiner
Q
Matt Brewis: For some buildings that have material issues around fire safety or other issues, it can be very difficult to place insurance. It is about time and cost. There is value in the services that brokers provide, and sometimes some of that work is outsourced to property-managing agents. Assuming that is done appropriately—itemised and billed—I have no issue with the payment of commission or brokerage, where it is for services that have been rendered effectively. Where it is a blanket case, in the way that you described—
Barry Gardiner
Q
“not attributable to a permitted insurance payment”,
but not that they have to be costs that are reasonable. There is a difference between a permitted insurance payment and a reasonable permitted insurance payment, is there not?
Matt Brewis: My understanding is that the secondary legislation that will follow will set out what those are.
Barry Gardiner
Q
Matt Brewis: One would still need to define reasonable.
Matthew Pennycook
Q
Matt Brewis: It is quite a significant list. The question effectively is: what are the reasonable costs of writing an insurance policy, and then the appropriate checks to be carried out to ensure that that policy is enforceable? From my perspective, that is focused on providing the information to the insurer or the broker that allows them to appropriately price the insurance—to understand the risk factors of that building, to determine the likelihood of escape of water, the quality of its fire defences and other things, all of which in sum add up to whatever the risk price is. There are different methods for determining what is an appropriate brokerage fee. We have seen some firms come out to suggest that it should be a maximum of, say, 10% of the cost. Others take a time-and-costs-incurred approach, based on how much work they have done. Being clear about things that are directly relevant to the pricing of the insurance is the best starting point for what should be allowed to be charged.
Andy Carter
Q
Halima Ali: It has to be central Government. They need to regulate that councils need to start adopting all new build estates going forward and in the situation that we are stuck in.
Barry Gardiner
Q
I have one estate in my constituency where they were charging residents for the management of land that they did not even own. It took us months to get the documentation to prove that they did not own that land. The fence that they had mended had actually been mended by the council. Other things like that are going on, but if that restriction were put in place in the first place, they would not be able to do it, would they?
Cathy Priestley: Our understanding is that the land belongs to the developer. It is not public until it is made public through section 106 agreements with the council.
Barry Gardiner
Q
Cathy Priestley: Well, yes, you would not want more and more privatisation, would you? I do not think any policy is in place that is pushing for privatisation of the management of public open spaces, is there?
Barry Gardiner
Q
Harry Scoffin: There are a number of quick wins. One is to get rid of forfeiture, because that allows these freeholder overlords to extort money from ordinary people. It is not like mortgage foreclosure, where if you cannot keep up with the mortgage payments you get the difference back less the debt; with forfeiture, in theory, a freeholder could take back a £500,000 flat on a £5,000 bill. Now, what the freeholder lobby will say when they come on later is, “There are only about 80 to 90 cases a year.” That is potentially 80 to 90 homeless families a year. More important, in a way, is that it is the threat of forfeiture that gets leaseholders to go, “Oh my God, I’m going to pay that bill.”
My mum is on £33,000 a year, for a three-bed with no swimming pool, no gym and no garden. The freeholder is one of Britain’s richest men, sheltering in a tax haven in Monaco—a billionaire. Everyone who is not a leaseholder says, “Why would you pay that? That’s more than someone’s salary.” She says, “If I don’t pay it, I’ll lose the property.” So get rid of forfeiture.
Barry Gardiner
Q
Harry Scoffin: Yes. They draw it out. There is a process now in the courts, where you can go, “Oh, I forgot to pay it” or “Here’s the money.” The point is that it does not give leaseholders the confidence to challenge unreasonable bills. They have the sword of Damocles hanging over their heads—they are being treated almost like criminals. The Law Commission recommended in 1985, in 1994 and more recently in 2006 getting rid of this iniquitous element, arguably the most feudal element of leasehold. It has not been done. The Government recently asked the Law Commission to update its 2006 report, so we know work has been done, but it is not in this Bill.
I think you spoke earlier today about this section 24 business. That is a really important issue that many Members may not be aware of. Since the Building Safety Act came in, there has been a very interesting regime about the accountable person, trying to make developers and freeholders take responsibility for their buildings. This was heard in tribunal in December—I was there—and I understand that Michael Gove has taken a personal interest in this, but there is again no guarantee that we can get the fix.
The problem is that, at the moment, any building over 18 metres cannot have a court-appointed manager, because the court-appointed manager cannot be the accountable person. It is like an aeroplane being flown with two pilots flying in completely different directions. The freeholder, who has been stripped of his management rights—because, basically, he has defrauded leaseholders or been absentee, is not doing remediation works in a timely manner, or is not giving information—will now be the accountable person. But the manager cannot manage the building, because you will have two managers for one property.
The tribunal for Canary Riverside—I add a disclaimer that this is my sister estate; we have the same freeholder, so I was there at the tribunal—said that, as much as we would like to help the leaseholders at Canary Riverside, Parliament has made it very clear that, while a non-freehold owning right to manage company or a non-freehold owning resident management company can be the accountable person, a court-appointed manager specially vetted by the tribunal is no longer allowed to be one.
What is happening at Canary Riverside is that the freeholder—the same one that we have—is looking at getting back a building that he was removed from controlling in 2016. There was even a letter from the Secretary of State to the leaseholders, which they cleverly submitted to the tribunal, saying that he was the man who passed this Act and he genuinely, honourably, had no idea that that was the implication. That is another thing, because many blocks are not going to be able to buy the freehold or be able to get right to manage. They are in a monopolistic position with these freeholders. If there is no ability to buy the freehold, you are trapped.
In our building, we cannot sell the flats. We cannot even give them away at auction. It needs to be allowed that a manager appointed under the Landlord and Tenant Act 1987 can be the principal accountable person where a tribunal deems it appropriate.
There is one other major point. At the moment, many people may stand to benefit from getting the right to manage or buying the freehold, with the 25% rule going up to 50%. I know that because I have campaigned for it for the last six years. Nick Hopkins at the Law Commission used to have a joke that he would probably have to take out a restraining order against me, because I really pushed on this issue. The problem is that there are so many people who would benefit from that, but if they have that plant room or that underground car park, they still will never be free. They will never be able to get the freehold or right to manage. That is something that the Law Commission already recommended. We can get that into the Bill.
Another point to note is that if you cannot participate, for whatever reason, in buying the freehold—you do not have the money to join your neighbours—in perpetuity, you will never be able to buy that share of the freehold ever again. If you cannot get the money together, you are out. That needs to be sorted. The right to participate was very popular with the Law Commission consultees. That absolutely needs to happen.
There is one last thing. Nickie Aiken MP and other MPs, such as Stephen Timms, have been pushing on this point. At the moment, to buy the freehold or get right to manage, you have to get 50%. In our building, which is 20 years old, we are very lucky that we have managed to get 82% of the leaseholders. Do you know how much work that has involved? It is cornering people in lifts, paying the £3 to the Land Registry, doing some weird investigations. It is Herculean. You have to go back to 1931 in this country to find a political party that has won a general election with 50% of the vote, so why is it fair for residents who are being ripped off to be told, “You need to get 50%”? That should come down, because most big blocks, particularly the newer ones, will never hit 50%, and given that the Government are talking about a long-term housing plan and about building up in the cities, we have to make flat living work. We have the second lowest proportion of flats of any country in Europe, after Ireland—
Barry Gardiner
Q
Harry Scoffin: Some leaseholder advocates say, “We do not touch the 50%,” and I do not understand them for it, but the fact is that they just say, “Give leaseholders more information.” I have to be honest: even once you have got in touch with guys from Singapore, Hong Kong, the middle east and all the rest of it, when you try to explain what leasehold is, it goes over their head; when you say “right to manage”, it goes over their head. They say, “Well, I’ve bought the flat. I don’t need to get involved.” And then you say, “It’s £2,000 or £3,000. We all need to do it—each—to club together.” These guys are mean—some of them—and they are not going to get involved. So the fact is that at least on right to manage, where you are not compulsorily acquiring the freehold interest, it should at least come down to 35%, in line with the suggestion from Philip Rainey KC, whom you will be hearing from on Thursday. The London housing and planning committee also said that 50% is very, very difficult in large developments, particularly in London. So that does need to be thought about at least—it coming down on right to manage.
Barry Gardiner
Ms Ali wants to come in.
Halima Ali: I just want to make this specific point. It is clear that rules and regulations regarding leasehold and RTM are not working. It is very—what is the word, Cathy?
Barry Gardiner
Q
Halima Ali: It is very unfair and inadequate, and it makes no logical sense for freeholders on a private estate to be given the same rules and regulations when it is not working for leaseholders.
Rachel Maclean
Q
Harry Scoffin: There are not specific provisions to improve the position on forfeiture. I would love it to be abolished, but if we have to have some form of mechanism that is still going to be called “forfeiture”, at least say that if it happens, the equity is returned to the departing leaseholder when the flat is sold and it is just the debt that the freeholder gets back. The idea that he gets a windfall is obscene. That has to go. At the moment, forfeiture can kick in at £350, so what some law firms are doing is, for a breach of lease, a 350-quid charge, so forfeiture already kicks in there. So bring that up. Some people have suggested £5,000. I would go even higher—£5,000 is the figure for personal bankruptcy proceedings—and bring it up to £10,000.
There will be these freeloading freeholders that will come before you today or on Thursday and say, “Well, if these leaseholders are not paying, the whole building is going to fall to rack and ruin. It’ll be like this country in the 1970s where the bins weren’t getting collected and bodies were piling up. You’ve got to keep the lights on in a block of flats.” What you say to them is, “Sue for a money judgment.”
Ms Rimmer
Q
Mr Andrew Bulmer: Sorry—yes. I am afraid that I do not have a voice that projects, but I will do my best.
We warmly welcome regulation of managed estates; it is an anomaly that the management of those estates is unregulated. I was in the room earlier and I heard some eloquent discourse around the fact that some of these estates exist at all as managed areas and that those common areas are not adopted. I have personal experience of managing estates where there are two grass strips, a couple of gullies and a little piece of road, for which you need to set up a limited company, find directors, get them insured, do a health and safety risk assessment and a whole load of other stuff—a whole load of on-costs—for what amounts to, as I say, two strips of grass and a couple of gullies. Clearly, for that kind of small estate, that is utterly disproportionate and I strongly recommend that those areas are adopted by the council. There has to be a way through it, through planning legislation, section 106 agreements, commuted sums and so forth. I would strongly make that point.
On the regulation of those estates that either exist and cannot be adopted or alternatively perhaps are part of a much more complicated scheme and it is therefore inevitable that they will be managed areas, then, yes, absolutely bring them in. I would recommend that you align the regulations and the processes for reporting and service charge accounts, or charge accounts, as closely as you possibly can to the reformed leasehold regime so that there is consistency.
Barry Gardiner
Q
Mr Andrew Bulmer: Would it be easier? I am not entirely sure. A substantive point was well made earlier. At the very minimum, there was a call for the equity that is left in a forfeited property to be returned to the leaseholder.
Barry Gardiner
Q
Mr Andrew Bulmer: As I understand it, that is absolutely correct. Yes, the freeholder takes a lot.
Just to be clear, it might just be worth saying that we represent only managing agents. We do not have freeholders as members and we do not represent freeholders. That is sometimes misunderstood and, while I am clarifying, probably 50% or thereabouts of the estates that my members manage are RMC controlled. We also have members in Scotland who are freehold entirely, so we are very comfortable with freehold, commonhold and resident control.
Barry Gardiner
Q
Mr Andrew Bulmer: We do a mental health survey of our members. We have done it now for, I think, three years. I am sad to report that the answers of property managers to the question of “Is your life worthwhile?” are in the bottom 17% of the UK population, which is certainly a cause for concern. We ask for the sources of stress, and they include the cost of living and things external to their work, but it is roughly equally balanced between freeholders and leaseholders.
Barry Gardiner
Q
Mr Andrew Bulmer: I think it rightly places property managers roughly in the middle of all this. Shall we say that?
Barry Gardiner
Q
Mr Andrew Bulmer: I would go further than that and say that we have been calling for a standardised chart of accounts for quite some time and that standardised chart of accounts would be able to separate out and highlight the various funds. It is important that each individual leaseholders’ funds can be readily identifiable in terms of their own account.
Barry Gardiner
Q
Mr Andrew Bulmer: Yes. The Property Institute standard, the old ARMA standard for member firms, requires separate accounts for each development and for those to be trust accounts—it is leaseholders’ money held on trust.
Barry Gardiner
Q
Mr Andrew Bulmer: First of all, it still does have that code of conduct. We are in the middle of rebranding from ARMA to TPI. Just to be clear, the legal entity is The Property Institute, but we are still running on the ARMA and IRPM brands for the next few weeks, when the branding will finally change. I am not quite sure what the phrase, “What went wrong?”—
Barry Gardiner
Q
Mr Andrew Bulmer: There is a plethora of codes. I am good with this: when I was residential director at RICS, I project managed the delivery of the third edition of the RICS code. There is a fourth edition of the code, which I think sits with the Department for Levelling Up, Housing and Communities at the moment. Separately from that, Baroness Hayter’s overarching code of practice, inspired by RoPA, is in draft form and goes across all agents. There is then the ARMA standard. There is a plethora of codes. It is the RICS code that the Secretary of State adopted, so again I would love to answer your question, but I do not quite understand it yet. How can I help you?
Barry Gardiner
Q
Mr Andrew Bulmer: We are not a regulator. For firms to join us, they volunteer to do so. It is to their credit that they do so, but there is a limit to what we are able to enforce. We can embrace standards, and our job is to raise standards by pulling—
Barry Gardiner
Q
Mr Andrew Bulmer: And we have done so. We can raise standards by pulling firms and members along. We can have adventurous conversations, we can set standards and, in extremis, we can remove agents from the institute. We have done that for both individuals and firms. But, ultimately, we are not a regulator, and if you are truly to drive standards you need both pull and push. The role of the regulator would be to push.
Barry Gardiner
I think you have given a very eloquent explanation of why, try as you might, we need to ensure that within the primary legislation we have the adequate safeguards, because they cannot be done by voluntary effort outside in a complete and effective way. Thank you.
The Chair
Are there any further questions from Members? No? Okay, in which case I thank the witnesses for attending today. We will move on to the next panel.
Examination of Witnesses
Kate Faulkner OBE and Beth Rudolf gave evidence.
Barry Gardiner
Thank you. I make it 296.91, actually, but please correct me if Google thinks I am wrong.
Professor Leunig: May I ask whether you used a calculator to work that out?
Barry Gardiner
Of course.
Professor Leunig: Phew! I was once involved in setting a question for Carol Vorderman on “Who Do You Think You Are?”. They wanted her to work out something like that, and I said, “You’ve got to give her a calculator.” They said, “No, she’s Carol Vorderman.” No one can work out 1.02794 in their head, not even Carol Vorderman. They finally agreed to put a calculator to hand, which she used, I believe.
Barry Gardiner
So she didn’t do it in her head.
Professor Leunig: Even Carol Vorderman cannot do that in her head. If you had said that you had done it in your head, I would have put you above Carol Vorderman.
Barry Gardiner
Q
Back to the Bill. There is an argument put forward for ground rent—the Government’s proposal is to take it down to a peppercorn or indeed abolish it entirely—that these are inalienable property rights, so there must be compensation and there must be proportionality. Could you elaborate for the Committee on whether the same argument was used when we compensated slave owners for the loss of their property, and whether you think that there is an analogy there?
Professor Leunig: Property rights are never sacred in the sense of being inviolable, because a property right is over and above the right to be compensated for the loss of property, so a properly inviolable property right would ban the emancipation of slaves, ban compulsory purchase and so forth.
But the Government often take actions that, de facto, end someone’s business. One of the saddest things I did in Government when I was economic adviser to the Chancellor was meeting a group of people affected by Brexit. One of them was a seed potato exporter. Under EU law, seed potatoes cannot be imported into the EU, so on the day that we left, this person’s business was completely kaput. He asked for compensation, but it was not granted. We can argue the rights and wrongs of that, and we can argue the rights and wrongs of Brexit, but it seems to me that the fundamental sovereign right of Parliament is to make decisions that some people like and some people do not like. If people are really unhappy, they can judicially review it. A lot of rich people own ground rents, and they may well be judicially reviewed. Sometimes almost anything is reviewed, certainly in the world of property.
I am not a lawyer, but it seems to me that there is a plausible case for Parliament to stand up and say, “We believe there are social advantages to doing this, and we have therefore done it.” That is the standard defence in law, and we did this at the end of covid. I was involved in the compulsory arbitration for a commercial rent scheme; indeed, it was one of the things I came up with as an idea in my time as a civil servant. At the end of covid, just about every restaurant had a huge accumulated rent debt. The standard commercial clause says that on any day you are behind with your rent, the landlord can go in, occupy the property and seize everything that is in it. We put that into abeyance for covid, without compensation, because we had a public policy reason for wanting restaurants shut.
Barry Gardiner
Q
Professor Leunig: There we are.
Barry Gardiner
Q
Professor Leunig: Correct, and that was what we decided at the end of covid, when restaurants, particularly those that served fine wine, came to us to say, “As soon as we restock our cellar, the landlord will turn up, reoccupy the property, seize all the wine and sell it for the back debt.” They said, “We are literally not willing to bring wine on to the premises.” It was clear that that was an inefficient outcome that risked undermining the high street, risked undermining the future of hospitality and risked undermining a sector that is the biggest employer of young people. We therefore created a compulsory arbitration scheme to prevent that from happening. Nobody judicially reviewed that, even though there were some unhappy landlords, because they understood that we had a public policy purpose for doing so. The weight of evidence that you have heard today suggests that there is a public policy purpose here but, as I say, I am no lawyer.
Barry Gardiner
Q
Professor Leunig: Let us be clear: land for housing is of higher value and agricultural land is of slightly higher value, but industrial land is often not.
Barry Gardiner
Q
Professor Leunig: Gobsmackingly. The field with three horses next to Heathrow airport that I go past if I ever go to Heathrow is a tragedy. It is a really dreadful little bit of land. It is used for nothing other than three horses, but its value is constrained, because it is zoned for agriculture. I think the answer is: very little. Most of the large developers are not in this in order to make a fast buck out of ground rent and so on. Indeed, from memory, I think I can put on record that Taylor Wimpey behaved very honourably, having inadvertently had doubling rents in the north-west—
Barry Gardiner
Q
Professor Leunig: Hang on; I will exercise my right to finish the sentence. It actually bought them back from the people to whom it had sold them, and it had not sold them at a particularly high price. It was just a local convention in the north-west that houses were sold on leasehold. The national companies hired solicitors, who did the normal thing in their area. Just as there is in government, there is often a lot more cock-up than conspiracy in the private sector. I am much more worried about the people who buy the leases later on with a view to finding the loopholes and exploiting them, just as people buy up medicines that are not quite out of patent to force the prices up. That is why I think it is good to set up a legal system that prevents the sharks from sharking, or whatever the verb is, but I would not want to tar all developers with that brush. In terms of property prices, I should say that I think it is overwhelmingly the planning system—we can see that if you look at somewhere like Manchester, which has lots of flats where land prices are not that high. Land prices are high in London and the south-east because we do not release enough land for housing.
Barry Gardiner
Q
Professor Leunig: It could do for sure, yes. If you can extract more money for the product that you are able to sell, you are willing to pay more for the constituent parts. However, I would not want anybody here to think that if we move from leasehold to commonhold, houses will suddenly become affordable in the south-east. That would not be a credible economic prediction.
The Minister for Housing, Planning and Building Safety (Lee Rowley)
Q
Professor Leunig: First of all, I repeat what I said earlier, namely that it seems to me that a lot of it is up to the secondary legislation. In particular, I think that issues of compensation are entirely in secondary legislation and regulation. As I say, I am not a lawyer; I find it very hard to read a Bill. It is not my skillset at all. I would not like to have your job.
I think that the biggest effect is the dynamic effect of creating a much cleaner and clearer property market. We have a rather ossified property market in Britain; it has become more ossified over time. There are all sort of reasons for that, including the fact that far more people are now under stamp duty, as well as the effect of financial regulations that mean someone needs a relatively large deposit to get on the housing market. There is a bunch of other costs that we really could simplify and get rid of. Take searches, for example. You can buy a house that is two years old and you have to do a completely clean set of searches. Why? When did we last find a mine in central London? We know this stuff pretty well.
I think this is part of clearing up the housing market and if we do so it can have quite big dynamic effects—for example, facilitating the better movement of people in response to opportunity. Such opportunities may be economic. I do not want to sound too Norman Tebbit and say, “Get on your bike.” However, there can be opportunities to go and live next to an aged parent who has suddenly fallen ill, in order to provide better care for them, or opportunities to move nearer to better schooling. Whatever the opportunity is, a more flexible housing market allows people to move to a house that is better suited to their needs.
All those things are good dynamic effects that in the medium term are strongly pro-growth and I see this Bill being part of it, but it is a small step forward. A move to commonhold would be a better step forward to a nice, clean system, where everybody knows exactly what they are buying and nobody is left wondering, “What sort of freeholder is this? Are they an exploitative one? Are they a reasonable one?” Many freeholders are perfectly reasonable.
The Chair
I am quite keen to wrap this up before the Minister concludes speaking in the Chamber, because otherwise we will have to keep the witness for at least an hour during votes, and I do not really want to inconvenience him that much. Can we have very quick questions and swift answers if possible, please?
Barry Gardiner
Q
Dr Maxwell: In relation to your first point on the Norwegian case, yes, as I said, it was different. It is about agricultural land value. The value was equivalent to several thousand euros. As for what happened with the adoption of, say, strata title in Australia and so on, that is not within my knowledge. What I know or have studied in detail is—
Barry Gardiner
Q
Dr Maxwell: The very short answer to that is that we are dealing with article 1 of the first protocol to the European convention on human rights. Countries such as Australia, and particularly places such as Hong Kong now, are not signatories to the convention, nor do they have a domestic law-giving effect to it. That is why we are dealing with article 1 of the first protocol, and that is why we are dealing with case law from other jurisdictions that is, perhaps, not directly analogous.
As for the sorts of cases, or whether any cases were brought in those jurisdictions when that system was adopted, that is not something I am aware of or can comment on, unfortunately.
Leasehold and Freehold Reform Bill (First sitting)
Barry Gardiner ExcerptsTuesday 16th January 2024
(11 months, 1 week ago)
Public Bill CommitteesRead Full debate Leasehold and Freehold Reform Act 2024 View all Leasehold and Freehold Reform Act 2024 Debates Read Hansard Text Read Debate Ministerial Extracts Amendment Paper: Public Bill Committee Amendments as at 16 January 2024 - (16 Jan 2024)
Richard Fuller
There is nothing that leaps out at this stage.
Mr Martin Boyd: Nothing leaps out.
Barry Gardiner (Brent North) (Lab)
Q
Mr Martin Boyd: There were proposals in sections 152 to 156 of the 2002 Act to help to improve protection for leaseholders’ funds. Currently, we are left with a set of voluntary codes. One is applied by the Association of Residential Managing Agents—the Property Institute, as it is now called—and sets out that managing agents should hold separate bank accounts for each of the sites that they manage. The Royal Institution of Chartered Surveyors’ code does not require that. I am aware from experience of my and other sites that, in the recent period of higher inflation, some managing agents used consolidation accounts, accrued the interest in the service charge funds to themselves and passed very little on to the leaseholders. So yes, I think it would be very helpful if we had greater transparency and protection.
Barry Gardiner
Q
Mr Martin Boyd: I can tell you why it did not move forward. One of the reasons it did not move forward is that, when there was a consultation, the organisation that I now chair argued very strongly against the implementation of that section. That was one of the things that annoyed me when I found out about it over a decade ago. It is not something that we would argue for now.
Barry Gardiner
Q
Mr Martin Boyd: It was a very good provision, yes.
Rachel Maclean (Redditch) (Con)
Q
Mr Martin Boyd: I am proud to say that it was LKP that restarted the whole commonhold project in 2014. At the time, we were told, “The market doesn’t want commonhold.” The market very clearly told us that it did want commonhold; it was just that the legislation had problems in 2002. One of our trustees, who is now unfortunately no longer with us, was part of a very big commonhold project in Milton Keynes that had to be converted back to leasehold when they found problems with the law.
I think the Government have been making it very clear for several years that they accept that leasehold’s time is really over. I do not see any reason why we cannot move to a mandatory commonhold system quite quickly. What the developers had always said to us—I think they are possibly right—is that they worry that the Government might get the legislation wrong again, and they would therefore want a bedding-in period where they could test the market to ensure that commonhold was working, and they would agree to a sunset clause. They had fundamentally opposed that in 2002, and we managed to get them in 2014 to agree that, if commonhold could be shown to work, they would agree to a sunset clause that would say, “You cannot build leasehold properties after x date in the future.” I think that that is a viable system.
Barry Gardiner
Q
Liam Spender: I agree; you have summarised it very well. To borrow a loose analogy from company law, there is something called a tag-along right. If someone comes along and buys a certain proportion of shares in a company, the other shareholders can exercise the right to tag along to join the purchase. That could be adapted to those who do not participate in an initial enfranchisement to address exactly the issue that you raise.
Barry Gardiner
Q
Liam Spender: I think the provisions introduce a degree of complexity into buildings because, exactly as you say, you are creating a new class of landlord. That could be solved by—
Barry Gardiner
Q
Liam Spender: That is right: there is no statutory mechanism to transfer to the newly enfranchised freeholders.
Barry Gardiner
Q
Liam Spender: The Bill creates a lot of new areas of complexity, and that is certainly one that would merit detailed attention.
The Chair
Well, gentlemen, I think that is it. Thank you very much.
Examination of Witnesses
Katie Kendrick, Jo Derbyshire and Cath Williams gave evidence.
Richard Fuller
Q
Jo Derbyshire: From my perspective, it is just about how all investment carries risk. This is no different. This is about rebalancing the scales in terms of leaseholders and freeholders. For me, it is about fairness for leaseholders. That is what the Law Commission was tasked with a few years ago, it is what we have been fighting for over the last however many years and that is what this does.
Barry Gardiner
Q
Ms Kendrick, you said that there were things that the Law Commission report had talked about that have not been included in the Bill. One of those is in relation to shared services. Often, in a mixed development, if there is a commercial element to the block of flats, with flats above, you will find that there is a common plant room or a common car park. I welcome the provisions in the Bill that say that you can go from 25% commercial to 50%; that is a good move. However, the Law Commission actually said something specific about whether you should be allowed, if there are shared services such as the car park or the plant room, to be able to take over control, because the flats—the leaseholders—would only have control over the plant room as it related to their block. Is that a provision that you think should be introduced? Otherwise, it makes a mockery, to a certain extent, of increasing from 25% to 50% if you are still going to be precluded from gaining control of your block because of the plant room or shared services.
Katie Kendrick: Yes, there are clever ways in which they exclude people from being able to do that. We welcome the increase to 50%, but they are very creative when they design these buildings, with the underground car parks and stuff, as to what they can do to exclude the leaseholders from taking back control of their blocks. It is all about trying to have control over people’s homes. We should be able to control our homes—what is spent. No one is saying that you should not have to pay service charges, but it is about being in control of who provides those services. At the moment, leaseholders have no control. They just pay the bills.
Barry Gardiner
Q
Katie Kendrick: Absolutely, yes.
Barry Gardiner
Q
Katie Kendrick: Absolutely.
Barry Gardiner
Q
Katie Kendrick: Absolutely. If they are saying that commonhold is not ready to rock and roll, to have a share of freehold to mandate, a share of freehold for new flats moving forward would be a good step closer.
Andy Carter
Q
Katie Kendrick: All three of us have now successfully bought our freehold. Yes, we are still here.
Jo Derbyshire: There are a number of things. The first is that most leaseholders do not understand the difference between the informal way and the statutory way to do that. The more unscrupulous freeholders will write to leaseholders with a “Get it while it’s hot” type of offer, which can be quite poor value for money. So, there is understanding the process in the first place. Then, regardless of which way you go—if you go the statutory way, currently you pay your own fees and the freeholder’s fees. There is an element of gamesmanship that goes on at the moment, which is why the online calculator is so important. Your valuer and the freeholder’s valuer will argue about the rate used to calculate the amount and then you will try and have some kind of an agreement. It is not a straightforward process at all. Cath will tell you what happened with her transfer, because they leave things in the transfer documents.
Cath Williams: Yes, they did. In my case, it took 15 months and £15,000 to get my freehold.
Matthew Pennycook
Q
Katie Kendrick: No, some people do not have a choice. People’s lives are literally on hold, and have been for many years, waiting for the outcome of the legislation. If we need further legislation to enact the Bill, people cannot sell. Housing and flat sales are falling through every single day because of the lease terms and service charges. It is horrendous. It will grind the buying and selling process to a halt.
Barry Gardiner
Q
Under the Building Safety Act, the provision is to appoint a designated person—an agent—to deal with the safety of the building. Often it will be the developer who is responsible for the remediation of a building that has fire safety defects and so on, which the Government are quite rightly trying to address, but they will argue that it is not possible to do that unless they have control over the management of the block as a whole. Therefore, there is a conflict between the Building Safety Act and the provisions in this Bill to help leaseholders gain the right to manage.
You might have just enfranchised and got the right to manage your own block, yet there is now an appointed person who will be told by the court that they have the right to manage the block. Very often, it will be the person you have just liberated yourself from. You will have just enfranchised yourself from that freeholder, only to find that they are now back in control. Do you feel there is a way in which the Committee should try to remediate and address that problem when it is looking at the Bill, and do you have any ideas as to how we should go about it?
Cath Williams: First of all, the situation that flat leaseholders are in at the moment, where they have building safety issues and leasehold issues, is so complex. It is horrendous. We hear daily in the National Leasehold Campaign about these poor leaseholders. It is really heartbreaking.
Barry Gardiner
People have committed suicide, have they not?
Cath Williams: People have committed suicide, yes. That is worth noting.
They ask for advice. We have never been flat leaseholders; that is the first thing, but there is a lot of support in the group to try to help people navigate their way through the Building Safety Act first of all, and now we have this Bill as well. In principle, I think they would really welcome some sort of cohesion between the two. I don’t know what that would be; it is really hard.
Katie Kendrick: It is really difficult because we are encouraging people to take control, but by doing that they are liable for more of the building’s safety. The two Bills have to work together.
Barry Gardiner
Q
Cath Williams: Yes.
Jo Derbyshire: The Leasehold Reform (Ground Rent) Act 2022 has essentially created a two-tier system where you have new builds without ground rent. As Cath mentioned, we are concerned that clause 21 and schedule 7 of the Bill seem to say a qualifying lease for buying out to a peppercorn rent must have a term of 150 years. We have seen lots of examples in the National Leasehold Campaign of new build properties—flats in particular—where the lease is 99, 125 or 150 years from the start, so a whole swathe of properties would be automatically excluded.
However, for us, because ground rent is a charge for no service, peppercorn is the answer. We also fear that, in terms of the timetable for legislation and getting this through, the sector will fight intensively and try to tie this up in the courts for years. It has nothing to lose; why wouldn’t it?
Andy Carter
Q
Katie Kendrick: Because an escalating ground rent worries mortgage lenders and buyers are unable to get mortgages because of an escalating ground rent. Where that is because of the £250 assured shorthold tenancy issue, my understanding is that that will be sorted through the Renters (Reform) Bill, so that will close that loophole, but lenders do not like—for most leases now, the doubling has half-heartedly been addressed and a lot of leases are now on RPI—the retail price index.
However, with RPI being the way that it is—it has been really high in the last couple of years—some of those ground rents are coming up to their review periods and are actually doubling. Therefore, RPI, as Jo said many years ago, is not the answer. Converting to RPI is not the answer because an escalating ground rent is still unmortgageable, and it takes it over the 0.1% of property value, which, again, mortgage lenders will not lend on.
Therefore, a lot of mortgage lenders are asking leaseholders to go to the freeholder and ask them to do a cap on ground rent, which is then costing the leaseholder more money to get a deed of variation from their freeholder. That is if the freeholder agrees at all, because the freeholder does not have to agree to do a deed of variation to cap the ground rent. That is coming at a massive cost if someone wants to sell, but without that people are losing three, four or five sales, and people have given up because their properties are literally unsellable.
Cath Williams: There is a house on my estate where sales have fallen through twice already. It is a townhouse; it is worth about £220,000. The ground rent currently—it is on an RPI lease—is £400, which takes it over the 0.1% of property value. Two sets of buyers have had problems getting a lender to lend in that situation.
Rachel Maclean
Q
Rachel Maclean
You mentioned that in the new Bill leaseholders will have to pay to get their ground rent to zero. Can you set out what that provision is? Where is that in the Bill?
Cath Williams: I don’t think we know. That was one of our questions. There is a process in the Bill about how a leaseholder can acquire the peppercorn ground rent, but who pays for that is not clear. I think that was raised before. I do not think leaseholders should pay, because it should not have been there in the first place.
Katie Kendrick: Or there should be a prescribed cost—“apply for your peppercorn now”—with a simple process. Otherwise it will be exploited, and lawyer will charge different amounts to convert. You can see what will happen, so it needs to be streamlined. Whatever we go for, it needs to be streamlined.
Cath Williams: And we need an online system that cuts out everybody in the middle, so that there is no confusion or discussion about what it should cost.
Dehenna Davison
Q
Amanda Gourlay: Twenty-four hours would be great, but that would probably sow total panic at the receiving end—I know that it would if I received that and I was doing something else. It will depend very much on the nature of the property. There are some very complex developments over in the east end of London. On the other hand, there are Victorian houses that are only two or three flats, and that should be much more straightforward.
I am aware that people have been able to pay for, say, a seven-day or five-day service, and there has been an uplift in the price for that. I am not the best person to ask about what the price should be. What I would say is that if a managing agent to whom this request would normally go is keeping their records up to date, one would hope that with the progress we have in software nowadays, that should very much just be the pressing of a button.
On work that is going to be carried out in the future, I have heard talk about, for example, mandatory planned maintenance plans. I have not seen those in the Bill. If a building or property is being well managed, one would expect there to be a plan for the next five or 10 years—what is needed to be done in terms of decorating, lift replacement and so on. Again, if that is in place, I would anticipate that it should be relatively straightforward to produce the information. I cannot give a specific answer; what I would say is that if we are all keeping our records up to date, that should be a relatively speedy process.
Barry Gardiner
Q
Amanda Gourlay: That is correct—yes. Forgive me; I was involved in Canary Riverside between 2016 and 2017. My involvement finished in June 2017.
Barry Gardiner
Q
Amanda Gourlay: I am not sure that I am—no.
Barry Gardiner
Q
Amanda Gourlay: No, I was not involved in that element of it.
Barry Gardiner
Q
In relation to that case, and on the accountable person provisions and section 24 amendments in the Building Safety Act—this relates to a question I asked earlier—the tribunal decided in the Canary Riverside case that the section 24 manager cannot be the accountable person, and that risks the section 24 management order failing, and the failed freeholder coming back to take control of the leaseholders and their service charge moneys. The implications of that decision really are quite dramatic. It means that the lifeline of the section 24 court-appointed manager provision from the Landlord and Tenant Act 1987 has been removed from leaseholders, particularly those who cannot afford to buy their freehold or do not qualify for the right to manage. How should we address that problem in the structure of the Bill?
Amanda Gourlay: I do not think you need to do that in the structure of the Bill. Casting my mind back to the Building Safety Act, which is now in second place to the Leasehold and Freehold Reform Bill in my mind, my understanding is that there is provision for a special measures manager in that Act. If that were brought into force, one would have a recourse. I am very happy to open my computer and look at the Act, but I do seem to recall that there is provision for a special measures manager to take over the building safety or the accountable person role in a manner of speaking. I say that in the loosest terms, without having checked the law.
Barry Gardiner
Q
Amanda Gourlay: There is always a concern looking forward as to how things might play out. I will deal your question on “arising” first, then come to your other point. Clause 28(2) inserts proposed new section 21D, “Service charge accounts”. Subsection (2)(a)(i) talks about the variable service charges “arising in the period”.
Barry Gardiner
Ah, “arising in the period”. Gotcha.
Amanda Gourlay: Turning to the second part of your question, one of the very big difficulties with the reform of leasehold is that good and bad—to put it in very binary terms—do not sit on one side or the other. While it seems to me that in an appropriate situation it would be entirely reasonable for a leaseholder to be able to withhold their service charges, there may equally be leaseholders who consider that this is an opportunity not to pay, for different reasons. There is always that risk. If one does not pay one’s service charge and is obliged to do so—for example, by going to tribunal and the tribunal says that actually £2,000 is payable—one is at risk of legal costs, which I am sure we will come on to in relation to the risk of forfeiture.
Barry Gardiner
Q
Amanda Gourlay: Yes, and I understood your question that way. I think my concern is that if there is a minor breach, is that simply a situation where we withhold service charges entirely? The question is the nature of the breach and whether it is or is not a breach. In principle, I would agree that it would be a sensible form of enforcement, because it is the absolute. It is the most draconian form of enforcement. One should always bear in mind, however, that if a third-party management company—a residents management company—is obliged to insure a building and has absolutely no wherewithal to insure it, there is that risk. Things may need to be done that simply cannot wait but, in principle, I see no reason why that should not be a remedy for failure to follow the process.
Barry Gardiner
Q
Amanda Gourlay: Do you mean generally, or in relation to insurance?
Barry Gardiner
In relation to insurance—because it will no longer be possible to charge commission, but it will be possible to charge a fee.
Amanda Gourlay: That is always a risk. In fact, that is a risk across the whole Bill where more obligations are imposed on a landlord. If the costs of those obligations are recoverable under the terms of the lease as part of the management, it is almost inevitable that charges will go up. They will have to: I am going to have to do more work, so I would like to be paid more.” The only control of those that we have at the moment is under section 19 of the Leasehold Reform Act 1967, which is whether the costs are reasonable in amount for the standard of work that is provided. One would hope that there would be degrees of transparency, but of course there is no obligation to account necessarily for the fees, save for the limitation of administration charges and the obligation to publish a schedule of fees of administration charges.
Again, however—I am sorry that I am providing such long answers—where it comes to publishing a schedule of administration charges, that is quite straightforward for most cases, but clearly if someone wants to carry out a significant change to a flat on the 15th floor of a building, the costs will be difficult to quantify in advance. There is still wriggle room, I think, in the administration charge limitations for costs to be higher.
Barry Gardiner
Finally, proposed new section 21E of the 1985 Act talks about annual reports, while proposed new section 21D sets out the basis of the accounts and when they must be presented. What is your understanding of the difference between the report—as set out,
“before the report date for an accounting period, provide the tenant with a report”—
and the accounts, which have to be presented at the end of the sixth month after the period? Is there any requirement in the Bill as drafted to ensure that the information available in the accounts is greater or more detailed—indeed, in any way different—from the report?
Amanda Gourlay: That is a question with which I have battled for a number of hours. The conclusion I reached was that proposed new section 21D very plainly envisages the involvement of a chartered accountant—a qualified accountant; proposed new section 21E is different because it would appear to be more narrative, a more general description of the information that has to be provided.
If you look at the Bill, subsection 21E(3), which entitles the appropriate authority to make provision about information to be contained in the report, is extremely broad. It refers only to
“matters which…are likely to be of interest to a tenant”.
That is a very wide scope. The information in effect has to be provided within a month of the service charge year-end, whereas the service charge accounts must be provided within six months.
While I am on that point, proposed new section 21E is enforceable under the enforcement provision, which I think is clause 30; rather peculiarly, however, proposed new section 21D is not. I invite the Committee to consider whether that new section 21D should be brought within the scope of clause 30.
Matthew Pennycook
Q
In some senses, many of the new requirements in this section are covered by the enforcement measures in clause 30. Is proposed new section 21D the only example, or are there other examples, of where that power in the 2002 Act might be considered necessary for a leaseholder to use, because the enforcement provisions do not cover the full gamut, if you like? I suppose that I am trying to get to where the enforcement clause is lacking. Is Mr Gardiner correct in specifying that there are circumstances in which you would want to withhold because the non-payable enforcement clauses do not bite in the relevant way?
Amanda Gourlay: I am instinctively nervous about withholding, even if it is simply a question of process.
Rachel Maclean
Q
Amanda Gourlay: I believe I have acted for freeholders against leaseholders on occasion.
Barry Gardiner
Q
Amanda Gourlay: That would make sense, but damages are not an appropriate remedy in this particular situation. It is very rare that a leaseholder will suffer financial loss. It is more about encouraging good behaviour.
Barry Gardiner
Q
Amanda Gourlay: I will, yes. I had no intention of making a speech, and I am sorry if I trespassed on people’s patience.
The Chair
That is fine. Do not worry.
Ordered, That further consideration be now adjourned.—(Mr Mohindra.)
Safe Asylum Routes: Afghan Refugees
Barry Gardiner Excerpts(1 year, 2 months ago)
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Barry Gardiner (Brent North) (Lab)
I beg to move,
That this House has considered safe asylum routes for Afghan refugees.
It was a pleasure to serve under your chairmanship, Ms McVey. I declare a non-pecuniary interest: my daughter is the chief executive of the child refugee charity, Safe Passage.
I do not know what the Minister’s majority was at the last election, and I do not know what his strategy is for the next one, but I am sure that he does the math. So let us do the math on the Government’s promises to the people of Afghanistan. When the Government announced the ACRS—the Afghan citizens resettlement scheme—they said that they would provide safe passage for 20,000 people over the next four years at a rate of about 5,000 a year. Although the scheme was launched in January 2022, it effectively backdated itself to August ’21 and the Government said that they were going to count towards their quota all the people who had already been evacuated under Operation Pitting. That was pathway 1.
Since the first year, the number of Afghans arriving under the scheme has plummeted. Pathway 2 allocated 2,000 places. In the last full year to June, just 66 people had been resettled under pathway 2. Pathway 3 allocated 1,500 places, but only 41 were resettled under this pathway. According to my maths, that makes 5,000 promised, 3,500 allocated and 107 actually resettled. If the Minister’s election agent managed to get just 2% of the electorate and just 3% of the actual turnout to vote for him, I think he would sack that election agent because he certainly would not be sitting here.
In June last year, when pathway 3 of ACRS was launched, the Government said that they would prioritise certain groups over the next 12 months, so can the Minister tell the House how many of those 41 individuals were from those priority groups? How many had worked for the British Council? How many had worked for the GardaWorld contractors? How many were Chevening alumni, to whom this Government promised safe passage?
The Government also promised to extend the eligibility for this pathway to wider vulnerable groups in the second year, beginning in June 2023. It was mooted that that might include religious minorities and LGBTQ individuals, who face particular threat from the Taliban. Three and a half months into the second year, can the Minister tell the House why he has still not published the criteria for the wider eligibility? It is very difficult for someone to apply for a scheme when they do not know what the criteria are. In practice, it means that we recognise that there are many families that are unsafe and to whom we may have an obligation, but they still have no route to come to the UK safely. When will the Minister make a firm commitment to broadening the scope of pathway 3 and publish plans for the next stage?
If the Minister thought his majority was shaky when I compared it to the resettlement scheme, he ought to get even more jittery when I talk about the Afghan relocations and assistance policy. ARAP, according to data published by the Ministry of Defence, has received more than 141,000 applications. I will not embarrass the Minister by asking him to tell the House precisely how many Afghans managed to come to the UK and build a new life under the ARAP scheme in the 12 months to June this year. I will just tell him: it was 73—not 730, and not 7,300 out of the 141,000 applications. That at least would have been 5%. The Minister would not have lost his deposit. It was not 5%, not 0.5%, but 0.05%.
We should remember that we set up the ARAP scheme to honour our debt to Afghans who worked with our UK forces on the frontline: the interpreters, the people that the Taliban regard as traitors, who risked their lives working alongside us then and whose lives continue to be in mortal danger now. Some of them have been waiting for more than two years, regularly contacting the MOD to show their documentation, and having to flee into exile in another country to escape the Taliban, who are hounding them down. What can possibly be delaying the processing of those applications? The Minister knows that many category 1 applicants are currently in Pakistan, but the Pakistan Government are threatening to deport them back to Afghanistan. What plans does the Minister have to expedite those applications?
Let me digress, because I want to give the Minister a moment of relief. I want to praise the Government for the way in which they have handled the Ukrainian resettlement scheme. It has been swift and efficient and our country should feel proud of the support that we have given.
We managed to achieve that for our fleeing European neighbours, so why have we not been able to do the same for the Afghans to whom we owe such a debt of honour? The answer is simple. We had 540 Government staff working on the Homes for Ukraine scheme. A freedom of information request by the Afghan Pro Bono Initiative revealed that the number of full-time staff handling the ARAP scheme was just 36—do the math, Minister. Why are there 36 times as many people processing Ukrainian applications as there are Afghan ones? Category 1 of ARAP is for people who served alongside British forces and who are
“at high and imminent risk”.
They urgently need to be brought to safety, yet the Minister knows that only five people received a positive category 1 decision in the whole period between April 2021 and January 2023. That is one every four months.
Will the Minister update the House and say how many positive category 1 decisions have now been made? Will he also reflect on the prioritisation of staffing resources and explain why there is less allocated to those we deem to be in serious and imminent danger of retaliation and persecution in Afghanistan because of their allegiance to us than there is to the general refugees from Ukraine, for whom I have every sympathy, who are fleeing their country in a time of war? Let me be clear: I do not want the Ukrainians to get fewer resources; I want the Afghans to get as many. Will the Minister commit this afternoon to increasing the number of caseworkers on the ARAP scheme?
I turn to the issue of family reunion. When Afghans were evacuated to safety in the UK in August 2021, many families were separated. Those who were subsequently resettled under ACRS pathway 1 were promised that their family members would also be resettled under the scheme. In April last year, the Home Office stated that further information would be “made available soon”. I do not know what counts for “soon” on whichever planet the Home Office is on, but let me tell the Minister that here in Blighty, it ain’t 17 and a half months. The problem with pathway 1 is that it sounds great: “You have been granted indefinite leave to remain. You’re safe.” The problem is that even though someone thought they were a refugee, ILR does not confer access to refugee family reunion. Anyone applying under this route can simply be told that their application is rejected as invalid.
Families who have been separated in the most tragic circumstances, including parents who have not seen their children for more than two years, are waiting on the Government to simply do what they said they would do: publish a new mechanism to reunite them with their loved ones. Will the Minister commit this afternoon to a date when he will publish further information on how Afghans resettled under ACRS pathway 1 can bring their loved ones to safety?
I believe the Minister will have been briefed by his excellent officials that I am likely to bring up a specific case in the context of family reunion. It is the case of my constituent Mr Sayed Hassani, which I have spoken about before in the Chamber. Mr Hassani’s wife, four daughters, two sons and sister were called forward as part of Operation Pitting back in August 2021, but they were unable to board the plane as scheduled because of the explosion at Kabul airport.
The five women are living under constant fear. I say five because last year my constituent sent me a photograph of his 15-year-old daughter in her coffin. She had committed suicide for fear of being taken by the Taliban and raped in a forced marriage. But her three sisters, her brothers and their mother are still there with her aunt. The boys and one of the daughters were born after their father became a British citizen, and they therefore have a right to British citizenship and a British passport. The three other women have had to put themselves at enormous risk by travelling across the border to Pakistan, where they were eventually able to get their biometric data done. Mr Hassani just needs his family safe and together again. I have the details of the case and would like to give them directly to the Minister after the debate for his urgent attention.
I welcome the unsafe journey policy that the Government introduced to mitigate the fact that there is no visa application centre in Kabul, but it is not working, Minister. The standard of proof is too high, and many women and unaccompanied children face horrendous dangers when trying to leave Afghanistan and cross the border, simply to prove that they really are who they say they are. Will Minister commit this afternoon to reviewing the criteria of the unsafe journey policy and make sure that we are not putting some of the most vulnerable people at even greater risk?
We need safe and effective routes for people from Afghanistan. The thing about safe routes is that they undermine the business model of people traffickers. In 2019, before the UK pulled out of Afghanistan, just 69 Afghans crossed the English channel in small boats. In the first eight months of this year, the number of Afghans crossing the channel in small boats was 4,800—one in every five people crossing the channel. If the Government really do want to cut the number of small boat arrivals in the UK, they know how to do it. It is in the title of this debate: create safe asylum routes for Afghan refugees.
Robert Jenrick
I can assure my hon. Friend, and indeed all right hon. and hon. Members here, that we are considering that with great urgency. Those who are in Pakistan are supported by the British Government, or by partner organisations such as the International Organisation for Migration, which will provide them with accommodation, food and support. I appreciate, however, that those conditions are not desirable, and the recent statements by the Pakistan Government are concerning. That is why we are looking again at what more we might be able to do. I will give way one more time.
Barry Gardiner
I am grateful to the Minister for giving way. On pathway 1, regarding those who had been separated during Operation Pitting, he said that a spouse and a dependent child would be able to come to the UK. Where there is a non-dependent child, or more than one—I think he said one—dependent child, is the Minister really now saying that those smaller families in Afghanistan who had been called under Operation Pitting, that perhaps because of the explosion were not able to get to the UK in safety, are now going to be divided yet further and separated yet further? Surely, that cannot be what he meant.
Robert Jenrick
No, I think the hon. Gentleman misheard me. I am happy to restate for the record that, once in operation, this will allow eligible individuals to refer one spouse or partner, and dependent children, for resettlement. There is no suggestion of splitting up children from their parents.
Robert Jenrick
I will give way to the hon. Gentleman, as I know he is very keen, and this was his debate. Then I must wrap up.
Barry Gardiner
Will the Minister address the mismatch in staffing resource? It seems disproportionate that there were 540 staff working on the Ukraine scheme and there are 36 on the Afghan scheme. I do not want in any way to downplay the Ukraine scheme—it has been a great success. However, we need to see similar priority given to the Afghans.
Robert Jenrick
I would be happy to take away the hon. Gentleman’s comment and consider it. In my experience, the challenges he has described in this debate are not primarily related to the number of caseworkers dealing with individual cases. The biggest challenge facing the UK on this issue is the availability of accommodation. The more homes we are able to bring forward—whether that be by the Department for Levelling Up, Housing and Communities procuring homes under the schemes they have available, the Ministry of Defence bringing forward service family accommodation, or each of our own local authorities bringing forward accommodation—the more families we will be able to bring into the UK with ease. The alternatives are for individuals to wait in Pakistan, to come to the United Kingdom of their own volition, having had their case decided by the Home Office, which is happening at significant pace, or to come and spend time in contingency accommodation. Our recent experience with that was not positive and I would be loth to return to it, although we do not rule it out.
I will bring my remarks to a close by thanking the hon. Member for Brent North for securing the debate, and all those who have contributed. I appreciate that 30 minutes is too short to address all the questions hon. Members have on this issue. The Government believe that the UK has a generous offer to those affected by events in Afghanistan, and we are delivering on that offer. That is most clearly demonstrated by the fact that 24,600 people are now beginning their new lives here, and that more will follow. We remain committed to our Afghan schemes, but we need to deliver those commitments in an orderly manner. That is the duty of a Government, and it is also what the public expects. We can only welcome, support and accommodate individuals arriving under our safe and legal routes as part of a sustainable and well-managed immigration scheme in partnership with others, in particular the local authorities who have to support those individuals and their families.
Finally, I call on all Members to support our Afghan schemes, work with their local councils, and support the work we are doing under the Illegal Migration Act 2023 to consult with local authorities on their capacity to take further individuals. That consultation will be published soon.
Question put and agreed to.
Illegal Migration Bill
Barry Gardiner Excerpts(1 year, 9 months ago)
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Suella Braverman
Getting into a flimsy dinghy wearing a thin polystyrene excuse for a life jacket, paying thousands of pounds, breaking our laws and putting one’s life at risk is not the way to come to the United Kingdom. That is what this Bill is all about.
Barry Gardiner (Brent North) (Lab)
The Home Secretary will be aware that the bulk of the 500,000 people she says have come through safe and legal routes are from Ukraine and Hong Kong. Regarding Afghanistan, she will also know that, in the whole of the last year, since the new safe route was put in place, only 22 individuals from Afghanistan have been accepted through that route. Is it any surprise to the Home Secretary, then, that 8,500 Afghans made a small boat crossing to the UK last year? Having rendered meaningless any safe and legal route from Afghanistan, where does the Home Secretary believe she derives the moral authority to criminalise those 8,500 people simply because of their mode of travel?
Madam Deputy Speaker (Dame Rosie Winterton)
Order. It is really important, if we are going to get everybody in, that the questions are very short, as the answers have been. It is really important for colleagues to remember that.
Oral Answers to Questions
Barry Gardiner Excerpts(2 years, 1 month ago)
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Chris Philp
The Metropolitan police already have more uniformed officers than at any point in their history, and in the current financial year they have had a funding increase of £170 million on last year, so I think my right hon. Friend asks a very reasonable question.
Barry Gardiner (Brent North) (Lab)
In the London Borough of Brent, 320 hours of safer neighbourhoods teams’ police time has been abstracted in the past three months. The figures are not routinely made public, but it is important for communities to have access to that information because they need to know that their safer neighbourhoods teams are there to act for them. Will the Home Secretary undertake to publish abstraction figures as a matter of routine?
Chris Philp
Such operational matters are for the police, but I share the hon. Gentleman’s concern about the level of abstraction owing to the unjustified Just Stop Oil protests. In October and early November, about 11,000 Metropolitan police officer shifts were lost as a result of having to police those outrageous and unnecessary protests. That is a matter of concern, and that is why it is so important that we see an end to these protests as soon as possible.
Metropolitan Police Service
Barry Gardiner Excerpts(2 years, 5 months ago)
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Kit Malthouse
My hon. Friend makes a strong point about our shared responsibility to support not only the police officers who do a brilliant job every day, but those who they seek to protect, and I agree. As I said earlier, if Sadiq Khan is not primarily responsible, I am not sure why he stood for election or why crime even featured on his election literature—I ask myself whether it will at the next election. He is absolutely the primary point of responsibility and he must step forward to take that mantle.
Barry Gardiner (Brent North) (Lab)
The Minister’s statement was unworthy of this House, and even of the Minister. The danger is that it takes the focus of the debate away from the failings of the Metropolitan police and puts it on to personal and political responsibility.
The Metropolitan police has been failing primarily in two areas. The first, as the hon. Member for Sevenoaks (Laura Trott) ably and rightly highlighted, is violence against women and girls, on which issue I have been working closely with my borough commander Sara Leach. Secondly, it has systematically failed on racism. I am fed up of people coming into my surgery because they are black and have been badly and violently treated or have had spurious prosecutions made against them by police officers. Mina Smallman’s two daughters were murdered in my constituency. It took two years for the Metropolitan police to get off its payroll the police officers who took photographs of them and circulated them to their colleagues and other people. That is a disgrace. I want to know not what anybody else is doing, but what the Minister will do to sort out racism and misogyny in the force.
HM Passport Office Backlogs
Barry Gardiner Excerpts(2 years, 7 months ago)
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Tom Pursglove
We do, of course, encourage people, as standard, to apply in good time for passports to be processed and to be available. The point I again make is that after 10 weeks of proof of travel, within two weeks the upgrade is free, but if the hon. Lady could provide me with the details of the specific case in question I will happily make sure it is looked at as quickly as possible for her.
Barry Gardiner (Brent North) (Lab)
I would like to stress to the Minister that this is not just an issue of people wanting to go on holiday. In my constituency—as you know, Mr Speaker, being so diverse as it is—people have families all across the world whom they have not seen since the pandemic. I have one elderly couple who applied before the new year, back in December. They applied, in fact, before Christmas. They were told that their passport was ready on 24 January, but that they had to send the old passport back in order to get it. By the end of March they still had not had it, by which time they had missed a niece’s wedding and, sadly, a sister’s funeral. It was only after multiple interventions that we eventually got the passport sorted at the end of last month. That is unacceptable—absolutely unacceptable.
The Minister said that 500 new staff were in place and 700 were coming, but what we really want to know is when will the Department be able to return to the three-week standard time that we all expected previously? That is the key issue and that is what our constituents need to know. He said 10 weeks from the end of June. We are way beyond the summer holidays by then. The backlog will have accumulated and those people will have lost the opportunity to go abroad. The key thing is when do we get back to that three-week period?
Tom Pursglove
I am grateful to the hon. Gentleman, who, as ever, puts his case forcefully but entirely respectfully. When there are compassionate or compelling circumstances, steps can be taken to expedite applications where appropriate. Some of the sorts of circumstances that he mentioned would potentially be eligible in that scenario. I cannot, of course, provide an explanation on the Floor of the House for his particular case, but I will take his wider point away. On the three-week target, I will ask the Under-Secretary of State for the Home Department, my hon. Friend the Member for Torbay (Kevin Foster), who is responsible for passports, to write to the hon. Gentleman to set out the position and let him know his thoughts on that point.
Metropolitan Police: Strip-search of Schoolgirl
Barry Gardiner Excerpts(2 years, 9 months ago)
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Kit Malthouse
I completely agree with the hon. Lady that there are implications for safeguarding, and I know but will reassure myself that my ministerial colleagues at the Department for Education are taking it as seriously as we are. As I say, from a policing point of view we have to wait for the IOPC to come to a conclusion, but on the overall safeguarding, the panel obviously did its work, the review has produced a report and I will make sure that Ministers at the appropriate Department are taking action as well.
Barry Gardiner (Brent North) (Lab)
The bad apple defence or the isolated incident excuse will no longer wash. Our constituents are no longer able to trust the police, including constituents such as Teresa Akpeki, whose brother was the victim of a hit-and-run accident. The police, when they attended the body—this was an NHS worker collecting samples—did not reach into his pocket to find his ID card, but phoned the Home Office to find out whether he was an illegal immigrant, because he was black. The Minister now needs to launch an inquiry into the way in which the Metropolitan police is dealing with ethnic communities, and if he fails to do that, the confidence of our communities in the police up and down this country is going to be rock bottom.
Kit Malthouse
As I outlined earlier, there are already two inquiries into the culture of the Metropolitan police in all its aspects—by Dame Louise Casey, who I know will do a thorough job, and following that, part 2 of the Angiolini review—but I would ask the hon. Gentleman to take care. There are 30,000-odd police officers in the Metropolitan police, the vast majority of whom are doing an extraordinary job and doing amazing things on a daily basis to keep us all safe from harm, and they deserve our thanks for doing that. They will be as outraged as we are at this event, and we need to learn the lessons on their behalf as well as on behalf of the Londoners we serve.