Cost of Living: Private rented sector

Beth Winter Excerpts

Tuesday 18th July 2023 Westminster Hall

[Sir Christopher Chope]

Surely a landlord should have the right to decide whether they wish to rent out a property. If they decide that they cannot rent it at a price that they think is reasonable, they can withdraw it from the marketplace.

The hon. Gentleman raises an interesting point about Members of Parliament and the rented sector. When I was first a Member of the House, we had a system whereby the taxpayer subsidised the cost of Members of Parliament renting a second home. Then the rules were changed, because it was decided that it was very poor value for taxpayers to keep on paying rent for Members of Parliament. The rules were changed to allow Members of Parliament to take out a mortgage on their constituency home or second home, and the interest on that mortgage, rather than rent, was paid by the authorities in Parliament. That was because prices in the rental market could only increase, and it is why, traditionally in this country, most people choose to be owner-occupiers, rather than renters, if they can afford it.

The point was made earlier about the reduction in the number of people who own their home, particularly among the younger generation. It is really sad and a chronic problem. Between 1 million and 2 million more people would probably own their home if we had the same policies in place for home ownership as we had in the late 1980s. The advantages of home ownership include flexibility, and the fact that when someone retires, they will probably have paid off their mortgage and not have any ongoing housing payments. It also means that people can be mobile; if their job takes them to another part of the country, they can move. All the rigidities in the private rented sector were reduced, to an extent, by the 1988 legislation, but it seems that there is pressure, from both my Government and the Opposition, to reintroduce a lot of the controls. That would make it very difficult for somebody to move from one private rented home to another in another part of the country for a job.

The supply of private rented housing is key, and nothing suggested by the hon. Member for Stretford and Urmston would do anything other than reduce the supply of private rented accommodation.

[Beth Winter (Cynon Valley) (Lab)]

The hon. Gentleman is arguing very strongly on behalf of landlords in the private rented sector, but the overwhelming evidence shows that the majority of tenants are on a low income. Their tenure is often insecure, and the properties are often low quality, with damp and mould. Did you consult tenants? Can you speak on behalf of the tenants who are suffering?

[Dr Rupa Huq (in the Chair)]

Order. The “you” should be “he”.

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[Beth Winter (Cynon Valley) (Lab)]

It is a pleasure to serve under your chairship, Dr Huq. I congratulate my hon. Friend the Member for Stretford and Urmston (Andrew Western) on securing this vital debate. We are living through a housing crisis in the United Kingdom, and there is a desperate lack of affordable, accessible, suitable and settled accommodation for millions of people across the United Kingdom. At the same time, we are suffering the greatest cost of living crisis in living memory, with rising rents, extortionate energy costs, food bills rising, below-inflation pay rises and inadequate social security benefits. This is a perfect storm, and nowhere more so than in the private rented sector, as others have commented.

Data from last week shows that private renters are five times more likely to struggle financially than homeowners. The private rented sector is now bigger than the social rented sector, and the demography of the people using the private rented sector has changed quite significantly. They tend to be older people, families and those on low incomes. Private renting tends to be insecure, and the accommodation tends to be in poor condition. If Government Members cared to look at research by Shelter, Crisis and many others—the Chartered Institute of Housing has written a lot about this—they would see that hundreds of thousands of people have been forced to accept properties that are either unsuitable or in poor condition. They are living in damp, mouldy and overcrowded accommodation, because that is all that they can afford. That is a major issue in the private rented sector.

The increasing competition for private rented properties means that there are increases in rents. Private rent prices increased by about 5% last year. Low pay is the cause of housing issues for millions of people, but many of those on low incomes are unable to afford private rent because of the complete inadequacy of the local housing allowance, which has been frozen since 2020. More than half of those receiving LHA have a shortfall. In Wales, during the first two weeks of February, just 1.2% of properties advertised on the formal rental market were available at or below LHA rates. That is absolutely shocking. That is putting unbearable pressure on families. There was an almost 70% increase in repossessions across the UK between January and March last year. Local authorities are doing what they can to help, through the discretionary housing payment scheme, but that is insufficient to meet the shortfall. Wales spent 155% of its discretionary housing payment allocation on support for housing costs. That is much more than any region in England.

The evidence is clear: the Government must restore local housing allowance rates and re-link them to rents, so that they cover at least the cheapest 30% of local rents. As others have commented, we have been inundated by constituents with an array of housing problems, including problems with affordability in the private rented sector. One lady has taken on a kinship caring responsibility, but she is being penalised by the system. She was unable to afford rent; she had assistance via the discretionary housing payment, but it was insufficient, and she is now in arrears with her utilities. That is not acceptable in the fifth-richest nation in the world. The quickest and most effective way to keep people in their home is for the Government urgently to invest in local housing allowance, so that it covers the true cost of rents.

The Renters (Reform) Bill does not address cost issues, so, as my hon. Friend the Member for Pontypridd (Alex Davies-Jones) mentioned, the Welsh Government are leading the way. They have just opened a consultation on fair rents and affordability. They are seeking evidence on defining “local income” and “fair rent”, as well as setting out proposals for fair rent and affordability. ACORN in Wales commented that rent controls are “the bare minimum response”, but it is pleased to see the Welsh Government considering rent controls. Rent controls must be considered. I completely agree with the comments of the Bevan Foundation: it endorses rent controls, but says that we must also increase the provision of social housing, reform the social security system, and take action to improve security of tenure.

To conclude, if we are to address the UK’s horrendous housing crisis, we need a holistic approach that also looks outside housing. We need to challenge the capitalist neoliberal system, which allows the few to benefit at the expense of the many. Housing is more than bricks and mortar; it is a home. We need to look at housing in a different way. Diolch yn fawr.

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[Chris Stephens (Glasgow South West) (SNP)]

I am delighted to see you in the Chair, Dr Huq. I congratulate the hon. Member for Stretford and Urmston (Andrew Western) on leading the debate. I always like and enjoy listening to his contributions. He follows a fantastic former Member of Parliament, Kate Green, who represented his constituency very well. He used his local authority experience, which is very important when discussing such issues.

The related issues of the cost of living and the private rented sector should be of great concern to members of all political parties as they affect the wellbeing of people in each of the nations of these islands. Much of what we are discussing today is centred on the experiences of people in England and Wales, so I will contribute a Scottish perspective. There have been some criticisms, from some sources, of the SNP-led Scottish Government and how they have handled the private rented sector. What Members will hear from me are the views of other interested organisations that contradict those misgivings and are supportive of the stance the Government have taken in Scotland.

We are familiar with the factors that have contributed to the current cost of living crisis, although some might question how much those factors have contributed, or even whether they have contributed at all—for example, Brexit—but no one will dispute that the war in Ukraine has driven up the price of oil, with a consequent massive increase in domestic energy costs. Russia’s de facto blockade of the Black sea has also resulted in Ukraine’s exports dropping to one sixth of the pre-war level, causing grain prices to rise dramatically. We have all seen the effects on the price levels on supermarket shelves. Covid has also played an obvious part in taking us to where we are.

We know that the biggest factors in determining the cost of living are wage rates and housing costs. The limits of devolution mean that the Scottish Government have no real say in private sector incomes, but for many in the public sector—nurses, midwives, teachers, junior doctors—pay awards have been sufficient to avoid protracted industrial and strike action. It is not as much as we would wish to pay, but better than elsewhere and certainly appreciated, which brings us to the major factor in the cost of living crisis: rent prices.

Different legislatures in the UK have taken different approaches to dealing with rent prices. In Scotland there were recent changes to the Cost of Living (Tenant Protection) (Scotland) Act 2022, which took effect from 1 April. With the exception of some defined limited circumstances, those changes have included a cap on most private landlords’ mid-tenancy rent increases at 3%. The enforcement of evictions continues to be paused across all sectors for up to six months and increased damages for unlawful evictions of up to 36 months of rent will continue to apply. Those measures will be in force until 30 September, provided they remain necessary, but there is also the option to extend for another six-month period if required. As previously announced, a social sector rent freeze has been replaced with agreements from landlords to keep any rent increase for 2023-24 well below inflation. That voluntary approach to rent setting agreed with the social sector will equate to an approximate average rental increase of £5 per week. That is still a strain for many, but more manageable than is the case elsewhere.

The legislative approach has had its detractors who suggest that SNP policies have harmed or unfairly targeted the private rented sector. There is, however, no credible evidence for that, leaving the detractors’ motives open to question. For example, concerns are expressed by some private landlord representatives about the different approach between social and private landlords. The Scottish Government contend that a collective approach like that in the social sector is simply not possible in the private rented sector. As a consequence of the policy, the 3% increase in the average rent of a two-bedroom private rented property, which is the most common size, is broadly comparable in monetary value with the average planned increase in the social sector.

The Scottish Government continue to monitor the data and to listen to landlords and tenants, in order to consider whether the measures that are in place remain proportionate and necessary. The recent legislation is time-limited and can only be extended with the approval of the Scottish Parliament, and in any event it cannot extend beyond March 2024 at the latest.

Some have suggested that investors will exit when certain rent-controlled regimes are introduced, and some political parties claim that this has already happened. But, again, there is no evidence to support those claims or suggestions. On the contrary, the chief executive of the Scottish Association of Landlords has stated publicly that

“We do need to have rent control in Scotland. I think that’s where we’re going to be going.”

Let me add a few other views about Scotland and its recent decisions. Crisis Scotland told Parliament:

“We all know that the cost of living crisis is an emergency at the moment, and for those in poverty that’s an emergency as acute as the pandemic. And it calls for emergency measures that at other times wouldn’t be considered. We absolutely support the need to do something to support tenants through that crisis.”

Living Rent said that a rent freeze would have a

“massive impact, as skyrocketing rents continue to pile on top of out of control energy bills.”

Shelter Scotland stated that short-term emergency measures in the Programme for Government

“are great news for tenants and will stop people from losing their homes.”

The Scottish Trades Union Congress said that

“the Scottish Government is to be commended for freezing rents…when used, the powers of our Parliament can bring positive change.”

It is on the use of the powers of the Scottish Parliament that I will now dwell, because Scotland has delivered 10.8 social rented homes per 10,000 population compared with just 1.2 per 10,000 population in England—nine times as many. Spend on affordable housing in Scotland remains the highest in the UK. Since the Scottish National party came into office in 2007, that has produced 14 homes per 10,000 population compared with 9.7 per 10,000 population in England. The Scottish Government’s per capita spending on affordable housing is more than three times higher than that of the UK Government. And in their published 2022-23 Programme for Government, the Scottish Government pledged to deliver 110,000 homes ahead of 2032, of which at least 70% will be available for social rent and 10% will be in our remote rural and island communities.

The Scottish Government have also committed a five-year investment of £3.5 billion to Scotland’s internationally recognised Affordable Housing Supply Programme, which this year’s £752 million affordable housing budget feeds into, despite a 3.4% real-terms cut in capital funding from the UK Government.

The first-time buyer relief, which raises the nil rate band to £175,000, means that the majority of Scotland’s first-time buyers pay no land and building transaction tax, which replaced stamp duty, and all other buyers benefit from a tax reduction of £600.

All that activity can be compared with the work of the Department for Levelling Up, Housing and Communities, which recently handed back £2 billion in funding, including £1.2 billion that was unused from the Help to Buy scheme.

I ask everyone here to ponder on the past achievements and future plans for Scottish housing, and consider whether some of them might also be applicable in some other parts of the UK. There have been several well-documented attempts in recent times to dilute the dissolution settlement and reduce the decision-making powers of the Scottish Government.

[Beth Winter]

The hon. Gentleman is making a very powerful contribution to the debate and the comments with regard to Wales and Scotland show the progressive, more radical policies there. Does he agree that if the devolved nations received fair, needs-based funding settlements from the UK Government, we could go much with those radical socialist policies?

[Chris Stephens]

I absolutely agree with the hon. Member.

In closing, on the cost of living in the private rented sector, the UK Government might do well to follow the policy lead of Scotland and Wales, and I urge the Minister to respond positively to the suggestions that have been made today.

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[The Minister of State, Department for Levelling Up, Housing and Communities (Rachel Maclean)]

It is a great pleasure to serve under your chairmanship, Dr Huq, and to respond to the debate on behalf of the Government. As is traditional, I thank the hon. Member for Stretford and Urmston (Andrew Western) for securing the debate on this important issue, which matters to all of us, including those of us who serve in the Government. He spoke passionately on behalf of his constituents, as did the other Members who have spoken, and I will come on to their contributions before I conclude my remarks.

The hon. Gentleman’s concerns reflect my determination to make sure that the Government deliver a strong, functioning private rented sector. As has been reflected during the course of the debate, private rented accommodation is the second largest housing sector in England, providing homes for 4.6 million households and an estimated 11 million tenants. It plays a vital role in supporting people to study away from home, explore new locations or move to find work, which is why we are ensuring that tenants have the security they need and enjoy a positive experience of renting a home.

As has been alluded to, the Government recently introduced the Renters (Reform) Bill to Parliament. The Bill will help change the landscape of the private rented sector. It is the most significant reform to the private rented sector for a generation, and it will deliver on the Government’s commitment to a better deal for renters. The Bill will make a fairer, more secure and higher quality private rented sector, fit for the 21st century. It will end section 21 “no fault” evictions and move to periodic tenancies, allowing landlords and tenants to end tenancies when they need to. This means that tenants can rent decent, secure homes and put down roots in their communities, while being empowered to challenge poor practice without worrying about retaliatory eviction, or they can leave if the landlord fails to meet their basic responsibilities.

However, we know that the overwhelming majority of landlords provide a good service, and we recognise that good landlords play a vital role in providing decent homes for millions of people across the country. That is why we will introduce comprehensive, fair and efficient grounds to ensure that landlords have confidence that they can regain possession of their property when it is reasonable to do so. We also want to simplify the system for both tenants and landlords, which is why all rent increases will take place via one mechanism. We will allow rent increases once per year in periodic tenancies and increase the notice that landlords must give to two months, giving tenants more time to plan and to seek advice. That will create a fairer system that allows both parties to negotiate rents effectively, while protecting security of tenure. I want to be clear: this Government do not support rent controls. Some Members asked me to set out our position on that. We recognise, however, that most people want to buy their own home one day. We are therefore firmly committed to helping generation rent to become generation buy.

We are working towards delivering on our commitment of 300,000 homes a year. Despite all the doom and gloom that may be reported, we are making strong progress. There is always more to do, but it is important to recognise that annual housing supply is up 10% compared with the previous year, with more than 232,000 net additional homes delivered in 2021-22. That is the third highest yearly rate for the past 30 years. We have also announced £10 billion of investment in housing supply since the start of the Parliament, and the Government are on track to deliver thousands of affordable homes to rent and buy across the country through our £11.5 billion affordable homes programme. A large number of those are for social rent.

I want to address the—if I may put it this way—nonsense stated by a couple of contributors to this debate, who said that money has been handed back to the Treasury. That is simply not the case. The money referred to was re-profiled, which is a normal part of Government accounting —[Interruption.] Opposition Members might want to listen and find out how Government funding and finance work. That money will be recycled and refocused into the 2016 to 2023 affordable homes programme. I hope that we will hear no more of that kind of comment.

A healthy housing market thrives on having a range of tenures. That is why we have launched the £1.5 billion levelling-up home building fund, which provides loans and takes out equity in house builders that would otherwise struggle to access finance. The Government have made a range of interventions to support the sector over the past decade. The construction of new Build to Rent homes will play an important part in helping to ease demand pressures in the private rented sector and is already providing thousands of much-needed new quality homes.

We know that right now meeting immediate housing costs is a huge struggle for some people, and that a higher proportion of income is being spent on rent by those on lower incomes in particular. In April 2020, therefore, we raised local housing allowance rates—a significant investment of almost £1 billion—and that increase has been maintained since then. Where tenants are unable to meet their housing costs and need further support, discretionary housing payments are available from local councils. Since 2011, the Government have provided almost £1.6 billion in discretionary housing payment funding to local authorities. For those who need additional support, the Government are providing another £1 billion of funding—including any Barnett impact, as colleagues from the devolved nations have spoken today—to extend the household support fund in England into the next financial year, bringing total funding to £2.5 billion.

[Beth Winter]

Will the Minister give way?

[Rachel Maclean]

I will not give way, if the hon. Lady does not mind, because I have a lot to get on the record.

Cost of living pressures go beyond housing costs, and that is why we have taken decisive action to support households, totalling £94 billion or £3,300 per household on average, across 2022-23 and 2023-24. We uprated benefits and state pension by 10.1% in April. For 2023-24, the Government are providing additional means-tested cost of living payments of up to £900. We also provided significant support for households with their energy bills, covering about half of a typical household energy bill this past winter. I utterly reject comments to suggest that the Government are not interested in helping people on low incomes. I have set out how we are doing just that with billions of pounds of taxpayers’ money.

I will touch on the Members who have spoken. I thank the hon. Members for Pontypridd (Alex Davies-Jones), for Cynon Valley (Beth Winter), for Barnsley East (Stephanie Peacock), for Birmingham, Erdington (Mrs Hamilton) and for Leicester East (Claudia Webbe), the Front Benchers of the SNP and the official Opposition, the hon. Members for Glasgow South West (Chris Stephens) and for Greenwich and Woolwich (Matthew Pennycook), and my hon. Friend the Member for Christchurch (Sir Christopher Chope).

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[Rachel Maclean]

I refer my hon. Friend to my earlier remarks, which set out that we are building record numbers of houses both to buy and for rent. We will make further announcements on that point in due course.

I gently remind the other Members who have spoken that all of them, I think, represent areas that have Labour-run councils, or else represent areas in the devolved nations. Their own councils have considerable powers, funding and tools, especially in enforcement, to tackle a lot of the issues that have been raised in their casework.

I was struck by the complaint made by the hon. Member for Birmingham, Erdington about the way her own city council, which is run by the Labour party, is allowing HMOs to be delivered. I suggest that she takes that up with her own Labour-run council—likewise for the hon. Member for Stretford and Urmston, whose constituency is of course part of the Greater Manchester Combined Authority, which is run by Labour Mayor Andy Burnham, who has considerable powers, influence and devolved funding from the central Government.

[Beth Winter]

rose—

[Rachel Maclean]

I briefly give way to the hon. Lady, who has been very persistent.

[Beth Winter]

Is the Minister aware that the devolved nations have been underfunded by billions of pounds? Going back to the point that the Minister made earlier, the local housing allowance is a reserved matter, and it has been frozen since 2020, since which time we have had a cost of living crisis. People are struggling. My question, though, relates to the report by the Levelling Up, Housing and Communities Committee, which stated:

“If the Government believes the PRS is the right place for those on the lowest incomes, it should…make sure housing benefit…covers benefit recipients’ housing costs.”

The Committee is still awaiting a response from the Government. When will the Government respond?

[Dr Rupa Huq (in the Chair)]

Order. We need to allow the Minister to respond and Andrew Western to wind up the debate.

Economic Activity of Public Bodies (Overseas Matters) Bill

Beth Winter Excerpts

2nd reading
Monday 3rd July 2023 Commons Chamber

[Beth Winter (Cynon Valley) (Lab)]

On first reading the Bill, memories of my childhood came flooding back, when my family and I were very heavily involved in the South Africa anti-apartheid movement in Wales. That campaign deployed a range of campaign methods, including boycott, divestment and sanctions, and lobbying local councils to divest and use sanctions against South Africa. We campaigned and succeeded in stopping a local choir from touring South Africa, as well as boycotting goods. That was some of my formative political campaigning. It was legitimate, proportionate and all about challenging racism. It informs me on why I must oppose the Bill in its entirety.

This Bill is the latest example of the shrinking space for freedom of expression in the UK, following the passage of the Elections Act 2022, the Police, Crime, Sentencing and Courts Act 2022 and the Public Order Act 2023, and the continued progress of the Strikes (Minimum Service Levels) Bill. Today’s Bill is an attack on democracy and rides roughshod over democratically elected representatives at a local, regional and devolved level. It is the epitome of cancel culture that the right-wing culture warriors on the Conservative Benches complain about so bitterly. It really does, as others have said, contain a direct threat to freedom of speech by barring public authorities from taking action and, indeed, from even making statements of policy.

The Bill will assist the suppression of campaigns for justice and accountability across the globe on issues as wide ranging as pollution, the environment, exploitation of children and women, and fossil fuel divestment—the list goes on. I and others who have spoken out against this Bill are not alone in opposing it. A wide range of human rights organisations, lawyers, trade unions, charities, non-governmental organisations, faith groups, climate justice groups and cultural organisations share our concerns. And all of those would rightly reject the use of boycott tactics being used to stoke racism or antisemitism.

The Bill, as has been said, undermines elected local councils and regional Mayors by not allowing them to make decisions that they have been democratically elected to make. It also clearly and definitely undermines the devolved settlement. What consultation has been carried out with the Welsh Government and the other devolved nations? How will the Bill impact on the devolved nations’ procurement policies, which are currently being pursued and are ethical and have human rights considerations at their heart?

It has already been highlighted how this Bill, while giving the Government broad-brush powers to prevent criticism of any state Government, uniquely privileges Israel. That is despite its repeated and escalating human rights abuses in the west bank and Gaza, and, as we are witnessing today, the horrific and heartbreaking events in Jenin. Despite assertions that foreign policy is unchanged, for the first time a piece of British legislation will require Israel and the territories it illegally occupies to be treated in the same way, departing from decades of international consensus on the illegality of settlements.

There is a proud record of the use of boycotts in progressive struggles—from the sugar boycotts of slavery abolitionists in the 18th and 19th centuries, to the anti-apartheid boycotts of South Africa, divestment from fossil fuel companies and action against the Russian invasion of Ukraine. Boycotts have been used legitimately, proportionately and often successfully to peacefully put political, economic or cultural pressure on a regime, institution or company to force it to change abusive, discriminatory or illegal policies. They have historically been anti-racist campaigns, and I believe that they must and will continue in the future.

I want to finish with a quote from Nelson Mandela, who came to Cardiff in 1998:

“When the call for international isolation of the forces of apartheid went out to the world, the people of Wales responded magnificently. The knowledge that local authorities all over Wales were banning apartheid products from canteens and schools…was a great inspiration to us in our struggle.”

I believe that he too would have said that those opposing this Bill in its entirety are on the right side of history. That is why I support the Labour Front-Bench position to decline a Second Reading, and as a matter of conscience I must oppose the Bill in its entirety. Diolch yn fawr.

Co-operatives and Alternative Businesses: Local Authority Support

Beth Winter Excerpts

Tuesday 20th June 2023 Westminster Hall

[Beth Winter (Cynon Valley) (Lab)]

It is a pleasure to follow my hon. Friend the Member for Neath (Christina Rees). I also congratulate the hon. Member for Hackney South and Shoreditch (Dame Meg Hillier) on securing this important debate during Co-operatives Fortnight.

The economic system under which we live is creating extreme levels of inequality, poverty, suffering and hardship, and the private profit motive is benefiting a tiny few at the expense of the majority of people in the United Kingdom. After a decade of Conservative austerity, public service cuts and the current cost of living crisis, we urgently need fundamental societal change to deal collectively with the social and economic crises that we face.

I genuinely and firmly believe that co-operatives—which are “people centred” to realise

“common economic, social, and cultural needs and aspirations”—

have a critical role in shaping the alternative economic system that this country urgently requires.

As my hon. Friend the Member for Neath already outlined, Wales has a strong culture of co-operation, and many of the first co-operative societies were established in Wales. Indeed, the socialist Robert Owen is credited with inspiring and founding the co-operative movement in the UK. In my constituency of Cynon Valley, the first co-operative society in Wales—the Cwmbach co-operative—was established in 1859. It was founded to collectively alleviate the extreme poverty experienced by the community as a result of the miners’ strike back in 1857. Since that time, co-ops have had a growing presence in Wales with a wide variety of functions and, thanks to organisations such as Cwmpas, they now contribute £3 billion to the Welsh economy. That is no small change; that is a massive, significant contribution.

We are fortunate in Wales that the Welsh Government actively support the co-operative sector and are building an economy that prioritises wellbeing and resilience. Legislation like the Well-being of Future Generations (Wales) Act 2015 and the recently passed Social Partnership and Public Procurement (Wales) Act 2023 are models of facilitating that co-operative approach, as is the Welsh Government’s recently announced £1.7 million funding a year for the next two years to help businesses transition to employee ownership and help develop new social enterprises. Community energy projects will benefit from the Welsh Government’s publicly owned Ynni Cymru energy provider, which the shadow Climate Minister, my right hon. Friend the Member for Doncaster North (Edward Miliband), continues to champion in this House through GB Energy.

In addition to the Welsh Government, there is a significant role for councils. As Professor Neil McInroy of the Centre for Local Economic Strategies has said, we need

“a new conception of the local state”

that conceives

“the local state as a facilitating institution that empowers, coordinates and upscales social innovation from community organisation and social enterprises.”

I have been fortunate enough to do quite a lot of work with Neil and many of the trade unions in the UK to develop the building of a community wealth-building approach in the co-operative movement, which I will come to shortly.

Since I was elected to this House, given the horrendous impact of austerity, the cost of living crisis and the pandemic on people in my Cynon Valley constituency, I have prioritised working with the local council, other organisations and, crucially, local people to develop a co-operative and community wealth-building approach. I am truly determined that not only can we and should we create wealth in our communities, but we have to retain that wealth in our communities, unlike during the mining industrial revolution where we produced all the wealth in the south Wales valleys and other valleys and communities throughout the UK, but the wealth was extracted out of our communities. That cannot happen again.

My local authority, Rhondda Cynon Taf County Borough Council, and its community development team, with people like Simon Gale, have significant experience of working with and supporting co-ops and community-based enterprises. One example of how it recently worked was with the Coalfields Regeneration Trust opening a facility called Hwb Cana in Penywaun, where I used to work as a community development officer many years ago. It will function as a skills and training centre for local residents and will house Smart Money Cymru Community Bank, which will enable local people to access loans and other financial services and is similar to the credit union movement that has spread throughout the UK.

There is much more that can be done and, with that in mind, one of the first things I did when I was elected was to commission independent research by the Bevan Foundation think-tank in south Wales to assess how it is possible to transform the economy of Cynon Valley, taking a grassroots, bottom-up approach. The report produced around 17 recommendations, ranging from having a joint procurement strategy using local supply chains and bottom-up town centre regeneration to delivering a real living wage and a Cynon Valley-wide co-operative. To achieve each recommendation, we have set up a number of working groups to turn them into real action and change.

The purpose of the co-operative, which will be in the form of a development trust, is

“to stimulate community-based enterprises, with a strong focus on the green economy.”

Without a doubt, we are living in a climate crisis and notwithstanding the significant challenges and risks, we have many opportunities, particularly in Wales with our topography and green environment, to really develop grassroots, co-operative and community-owned initiatives to tackle that crisis.

We have secured funding from the Welsh Government to undertake a feasibility study into the Cynon-wide co-operative and we are currently considering that report’s findings. It is a really exciting time in the valley and there are lots of opportunities there. Indeed, there was overwhelming agreement that a development trust would play a critical role to assist the economic and social revival of Cynon Valley and its long-term sustainability, which is key to any developments.

I will finish by mentioning Tyrone O’Sullivan. He is a hero of mine, and I had the privilege of attending his funeral yesterday. He was a miners’ leader and a real giant of the trade union and Labour movement, but he also put co-operation into practice. His leadership and vision led to the miners’ buy-out of Tower colliery back in 1995, when miners used their redundancy money to purchase the mine. It was a huge success and made in excess of £11 million in profit in the first three years alone, so it was a brilliant example of worker ownership and the potential of co-operatives.

Going back to where I started, co-operatives must be part of a much wider transformative change and must be placed in the wider context. Tyrone really did have a clear vision of the need for that societal change to give young people a future and to build and develop our communities. He showed that change can happen and that people can take control of the wealth in their communities and make sure that that wealth stays there. That vision remained part of Tyrone. I was privileged to have met him in recent weeks, when we had a long discussion about politics, socialism and the need for societal change. He spoke about the power that lies in our working-class valley communities to effect the change required to achieve—for me and for Tyrone—a socialist society.

The south Wales valleys have been at the forefront of change in the past and we can, and will, be at the forefront of change again. Co-operatives, with the co-operation of councils, have a fundamental role to play, turning that vision—and in his memory, Tyrone’s vision—into reality. Diolch yn fawr.

[Peter Dowd (in the Chair)]

Just to alert people, there are likely to be a number of votes. If that is the case, we will adjourn for 35 minutes.

Budget Resolutions and Economic Situation

Beth Winter Excerpts

Tuesday 21st March 2023 Commons Chamber

[Beth Winter (Cynon Valley) (Lab)]

Last week, what we needed was a transformative Budget designed to lift incomes and living standards, deliver fair funding to level up our poorer nations and regions, and build an economy fit for future generations. We did not get that. Instead, we got the views of a multimillionaire Downing Street that is completely out of touch with the lives of people who are struggling in the horrendous cost of living crisis, including people in my constituency of Cynon Valley.

The OBR confirms the hit to living standards over the past two years is the largest since comparable records began in the 1950s. Wages are lower now in real terms than they were 13 years ago. That is why workers are being forced—yes, forced—to take industrial action, including 700,000 last week, and why it was so crucial for us to hear something concrete on pay in the Budget. However, there was complete and utter silence.

For those who are reliant on social security benefits, increasing the use of sanctions is a real concern: it will mean the demonisation of some of the most vulnerable groups and will force people further into poverty. Meanwhile, millionaires will benefit from the Chancellor’s pension allowance change, which benefits only the 1% with the biggest pension pots. Some high earners are getting a tax cut of up to £275,000. In the funding of public services, we can see the continuation of austerity: analysis by the New Economics Foundation shows a further £21.6 billion in unannounced cuts. That is not levelling up; it is trickle-up economics.

Wales is yet again being starved of funds. The Welsh Government’s budget is worth up to £3 billion less over the three-year spending review period than when it was originally announced. Wales faces a £1.1 billion shortfall in funding as a result of structural fund changes. So much for “not a penny less, not a power lost”! The problems with the structural funds will put 1,000 academic jobs at risk in Wales’s higher education sector; I worked in the sector for 10 years, and a lot of my former colleagues are at risk. I urge the Government to address that now.

The UK Government continue to benefit unduly from their share of the national mineworkers’ pension scheme. That is money they should be paying to former mineworkers and their families, many of whom live in my constituency. It is a shame on this Government that they have failed to fund the £600 million legacy costs of making the coal tips safe in Wales.

[Ian Lavery (Wansbeck) (Lab)]

I declare an interest as a member of the mineworkers’ pension scheme. Does my hon. Friend agree that we are seeing double standards at the highest level? The Government are refusing to allocate the £2 billion surplus to some of the poorest pensioners, but at the same time they are giving an extra £1.2 billion-plus to some of the richest pensioners in the country. How is that levelling up?

[Beth Winter]

I could not agree more. This was clearly a Budget for the 1%, not the 99%. Mineworkers in my constituency created the wealth of this country: they put their lives at risk over many, many years, and the wealth was extracted. Surely the Government owe them the money that they created for this country. Shame on this Government.

The UK Government also continue the lie of designating not only HS2 but now Northern Powerhouse Rail as “England and Wales” projects, which should result in a total of £6 billion for the Welsh economy. The Welsh Government are striving to chart a different path. The programme for government in Wales is a commitment to a progressive agenda: from free school meals to the universal basic income pilot, from a publicly owned energy company to tackling the climate crisis in order to secure prosperous and fulfilling lives for current and future generations.

This Budget shows how urgently we need a change of Government in the UK and a different economic approach that delivers a new funding settlement for public services and fully funded, inflation-proofed pay rises. We need the wealthiest in society to finally pay their fair share in tax. We must not only abolish non-dom status, but equalise capital gains tax rates with income tax. We need to tax the windfall gains of oil and gas giants at a higher rate and remove the loopholes that allow businesses to avoid paying their fair share.

I welcome the Secretary of State’s comments about devolving decision making and finance to the English regions. I implore the UK Government to do the same for Wales, to provide us with fair, needs-based funding and to stop riding roughshod over the devolution settlement. Diolch yn fawr.

Management of the Economy and Ministerial Severance Payments

Beth Winter Excerpts

Tuesday 15th November 2022 Commons Chamber

[Beth Winter (Cynon Valley) (Lab)]

I rise to speak in support of the motion on the management of the economy. The mismanagement of the economy by the Conservative party and the inaction on runaway inflation and profiteering has meant that millions of people are struggling with the impacts of inflation on their household incomes. The Bank of England decision to raise interest rates, the biggest rise since 1989, is going to hit mortgage and private rental costs, with devastating impacts on so many people and communities, including mine. The rise will have an immediate effect on over 2 million people on a variable rate mortgage, and while more than 6 million on fixed-rate mortgages may be currently insulated, when their deal expires in the coming weeks and months they will be paying £500 more per month on average. Recent analysis from the Joseph Rowntree Foundation reveals that nearly 2.5 million people with a mortgage are already in poverty. It also found an additional 400,000 people will be pulled into poverty over the coming year.

Even before the rate rise, the housing system was broken. Shelter has done a lot of research, and it shows that one in three adults in Britain are affected by what it calls housing’s “national emergency”, an apt description of the current situation in the housing sector. We have a severe shortage of affordable, accessible, habitable, safe and secure housing. Having worked for many years in the housing and homelessness service, including with Julian Trust night shelter in St Pauls in Bristol, Cyrenians in Bristol and then Shelter Cymru for a number of years, I have seen at first-hand the pain and suffering of people in desperate housing need—and it can affect anyone, including people sitting here in this Chamber today.

I recently held an appreciation event in my constituency office in Cynon Valley for the housing providers, including Llamau, Hafal and the local authority. They are absolutely terrified about the current situation in housing and the cost of living emergency.

One of the few benefits of frequently speaking last in debates in the Chamber is that I can listen intently to all the contributions. I want to take the opportunity to set the record straight on the current situation and where blame lies. The blame for the current economic crisis and the cost of living catastrophe lies solely with the Tory Government and their economic and ideological approach. While others were speaking, I was looking at some figures. The Office for National Statistics said that, by 2020, almost half the wealth in the United Kingdom was concentrated in the hands of the top 10% of households, while the bottom 50% had only 9%. It has been estimated that the utility companies will make in excess of £170 billion in the next two years, and bankers’ bonuses are absolutely extortionate. We are the fifth richest nation and yet we have some of the highest levels of inequality in the world. Shameful, it is. More than 330,000 deaths have been directly attributed to the austerity policies of the Tory Government. The eminent Professor Sir Michael Marmot recently called the impact of the cost of living catastrophe a “humanitarian crisis” that will lead to thousands more deaths. That is the reality of the situation that we are experiencing.

I return to the specifics of the motion. Housing is and must be regarded as a fundamental right. In Wales, the Welsh Government are trying to do things differently by reducing short-term evictions, and they have a commitment to end homelessness. However, the Welsh Government and other devolved nations and regions throughout the United Kingdom are constrained by the fact that the purse strings rest here in Westminster. More must be done by the UK Government. We need a mass-building programme for affordable, appropriate and climate-proofed housing. The Government must provide a fair, needs-based funding settlement to Wales and the devolved nations. The homelessness charity Crisis has called for an increase in housing benefits and for the Tory party’s commitment to end no-fault evictions to be honoured. London Renters Union is calling for a day of action to freeze rents and link local housing allowance to market rates. We must extend financial support for people struggling with mortgage payments.

Alongside increasing the supply of genuinely affordable housing and better support for those on low incomes, we must see: a strengthening of the social security system; social security benefits increasing in line with inflation; a continued commitment to increase the national living wage; inflation-proofed increases in wages; and employment rights protected and, indeed, improved. We should be introducing windfall taxes and a wealth tax. Tax Justice UK has estimated that £37 billion could be raised by introducing a wealth tax.

The Government are to blame and are allowing the Bank of England, through its independence, to hit living standards as it seeks to tackle inflation. I pose this question before the autumn statement: should the Bank be required in future to take account of the impact of its decisions on real incomes and on living standards measurements?

[Mr Deputy Speaker (Mr Nigel Evans)]

Order. The wind-ups are starting unusually early—there are reasons for that—so, before I call the Front Benchers, I will say that, whatever the agreed time limits were for wind-ups, you can both go longer, if you so wish.

Levelling-up and Regeneration Bill

Beth Winter Excerpts

2nd reading
Wednesday 8th June 2022 Commons Chamber

[Beth Winter (Cynon Valley) (Lab)]

Despite the talk of investing in and empowering local communities through the process, this Bill, like the White Paper, fails to deliver. Major decisions will continue to be made in Whitehall, with communities made to compete for small, paltry pots of money handed out by Tory Ministers. I want to take the short time I have to speak to focus on levelling up in Wales. I am astounded that I am one of only two speakers, along with the hon. Member for Arfon (Hywel Williams), to make reference to Wales, because the levelling up White Paper and the Bill have significant and very concerning implications for my country of Wales.

Wales needs, deserves and is entitled to investment. The levelling up White Paper identified a number of income and employment metrics that showed that Wales needs levelling up. The reality that we are facing, with the worst cost of living crisis in living memory, is extremely worrying, and I hold this UK Government accountable for the situation, which is indeed dire for my constituents. I have just conducted a survey in my constituency to find out how the crisis is affecting local people, and the response has been staggering. More than 600 local people have responded, making it clear that the crisis is making life a misery and painting a bleak picture of poverty, anxiety and despair.

What does the Bill actually do for Wales? How have the Welsh Government been involved in the development of the Bill and consulted on the measures that are included? The UK Minister spoke today about a revolution of democracy and increasing devolution, and in the intergovernmental relations report that the Secretary of State presented to the Welsh Affairs Committee recently, he talked of the

“extensive engagement between UK Government”—

and the—

“Welsh Government”.

The truth is very different. The Welsh Senedd Legislation, Justice and Constitution Committee noted on Monday of this week that

“due to very limited prior consultation by the UK Government and the complexity of the Bill”

it has not yet

“been possible to fully consider the devolution consequences of what is being proposed”,

and the Welsh Government intend to lay a legislative consent memorandum before the Senedd when they have a better picture of the Bill’s implications for Wales.

So there we have it: a levelling-up Bill for further devolution and regional investment with no consultation or involvement of the devolved Government of Wales. This is another centralising Bill, handing powers to the Westminster Secretary of State, and it certainly is not resulting in more funding for Wales. The Welsh Government have stated that the Welsh budget will be nearly £1 billion worse off by 2024 as a result of the UK Government’s so-called levelling-up programme—that is appalling—and it will allow the UK Government to sideline the Welsh Government by making spending decisions in areas under the Welsh Government’s control, such as transport and the environment.

This is yet another example of Ministers at Westminster, with no understanding of the measure of need in different communities in Wales, bypassing the democratically elected devolved Government of Wales, resulting in more prosperous areas benefiting while more severely deprived communities such as mine are excluded. It flies in the face of any democratic measures or recognition of the reality of devolution.

The UK Government’s promise to Wales of, “Not a penny less, not a power lost” rings hollow. This is not levelling up; it is levelling down.

--- Later in debate ---

[Marsha De Cordova (Battersea) (Lab)]

I start by putting on record my thanks to the brilliant London Mayor, Sadiq Khan, who has been delivering for Londoners across the city. We have all seen it, and we can all witness and attest to it.

Today’s Second Reading debate leaves me concerned about whether the Bill will seriously tackle structural wrongs—the Government do not have a good track record of fighting inequalities—and whether the Government can be trusted to deliver. I will focus my comments on levelling up and the proud city of London, and on affordable housing and good infrastructure. The Government claim that they want to reverse geographical inequalities by spreading opportunity more equally through economic, social and environmental measures, but levelling up is as important in London as it is to other regions, because data and evidence show that the economic fortunes of London and other regions are strongly correlated. We all know that when London thrives, the country thrives.

In my constituency of Battersea, we have great affluence and wealth alongside pockets of deprivation. That is reflected in the fact that London is one of the most unequal regions. The cost of living disproportionately impacts people living in London, with inflation and unemployment higher than the national average. That is why I am very proud of the new Labour administration in Wandsworth for declaring that it will pay all council workers the London living wage.

Given all the issues in London, I am concerned about the impact on the city of the provisions in the Bill, such as the national development management policies, which could scale back devolved powers in London. That will hinder all the positive actions and the progress that the Mayor of London, Sadiq Khan, has made through building more genuinely affordable homes and good quality infrastructure.

That brings me on to housing and infrastructure, and I worry about the ambiguity and lack of detail in the Bill in relation to housing, given the Conservatives’ unhealthy reliance on donations from developers. We know that in 2020, the Tories received £11 million in donations. As one of my colleagues has said, the Tories’ relationship with developers is an example of the political elite working at the behest of private interests.

I know about the negative consequences of such close relationships, because the former Conservative-led Wandsworth Borough Council allowed developers to reduce their affordable housing rate in Nine Elms to just 9%, when it really should have been around 33% to 44%. We all know that that affordable housing requirement is a scandal, and we know about the problematic changes in the definition of affordable. It was the former Mayor of London, the now Prime Minister, who changed the definition in 2011 to 80% of market rates, when it had been set at 50%. It is a shame that the Bill does not seek to address that.

[Beth Winter]

Does my hon. Friend agree that the Bill is seriously lacking on the question of affordability, and that when we look at the levels of homelessness in our country, including on our streets in London, we can see that serious amendments to the Bill are needed to address the urgent housing crisis?

[Marsha De Cordova]

My hon. Friend makes an important point. If we are not committed to building genuinely affordable homes, how are we going to house people? That is why I am really proud that the Wandsworth Labour administration has committed to building 1,000 affordable and social homes. That is what progress looks like.

It is crucial that the Bill does not prioritise developments or developers over people. The proposed infrastructure levy will be successful only if it delivers genuinely affordable homes. The Bill does not really address the issues around what the Government proposed on the right to acquire for affordable housing. When will the Government bring forward legislation to address the issue around the right to acquire? The infrastructure levy will be paid not up front, but on completion, so how will that alleviate any of the pressures on local authorities to build more homes? That will need addressing.

The Bill is thin on detail and I worry that it will leave us with some of the same problems. It is essential that the Government take all the necessary steps to ensure that the Bill challenges and alleviates the pressures around affordable housing and the infrastructure levy, and that it addresses some of the challenges that developers are imposing on our communities.

Ukraine Sponsorship Scheme

Beth Winter Excerpts

Monday 14th March 2022 Commons Chamber

[Michael Gove]

Local government, who are experts in safeguarding.

[Beth Winter (Cynon Valley) (Lab)]

The First Minister of Wales, Mark Drakeford, said at the weekend that visas should not be necessary

“as they are not necessary in the European Union”.

Along with his Scottish counterpart, he has called on the UK Government to waive visa requirements. This morning, the chief executive of the Welsh Refugee Council said that the scheme is not a humanitarian response, particularly in comparison with other European countries that have accepted hundreds of thousands of people. She described the scheme as

“quite disheartening…quite shocking, frankly.”

Will the Secretary of State look again at the heartless visa requirement scheme, which is so out of touch with the people of Britain and indeed the devolved nations? Will he please put people first instead?

[Michael Gove]

I am sorry that the hon. Lady feels as she does. I should say that, when I was talking to representatives of the Refugee Council, one of them said as we unveiled the scheme that they took their hat off to the Government because they were so pleased with what we have done. They want us to go further and, as I acknowledged earlier, the scheme is not perfect, but we have to balance speed with breadth, comprehensiveness, safety, security and other considerations.

I am grateful for the hon. Lady’s question, because I can update the House that, since the website went live less than an hour ago, 1,500 people have already registered through the scheme in order to provide support.

Levelling Up

Beth Winter Excerpts

Wednesday 2nd February 2022 Commons Chamber

[Michael Gove]

My hon. Friend makes a very important point. We of course want to encourage cycling and walking, but we need to balance that with the need to ensure that thriving economic areas such as Southport, which are at the heart of the success of not just Sefton but Greater Merseyside and Lancashire, are given the opportunity to provide the economic growth for which he has been such an effective champion.

[Beth Winter (Cynon Valley) (Lab)]

The Secretary of State talks about shifting power and resources to communities. I think he made one mention of Wales. In the case of Wales, the opposite is true. These proposals ride roughshod over devolution, override our democratically elected Government and short-change us to the tune of £1 billion by 2024. The truth of the matter is that the proposals will result in further hardship and poverty for my constituents in Cynon Valley and throughout the UK. So I implore the Secretary of State to listen to my constituents and the people of this country, respect devolution and restore the missing £1 billion to Wales.

[Michael Gove]

I respectfully disagree. When I was recently visiting Merthyr and Pontypridd, I found that actually the investment we are making through the levelling-up fund was welcomed by Labour and independent councillors in south Wales. Obviously, we need to do more not just for south Wales but for north Wales, which is why there is a commitment in the White Paper to ensure more civil service jobs move to Wrexham.

Oral Answers to Questions

Beth Winter Excerpts

Monday 24th January 2022 Commons Chamber

[Kemi Badenoch]

Yes.

[Beth Winter (Cynon Valley) (Lab)]

3. What assessment he has made of trends in the level of new homes provided for social rent since 2010.

[The Parliamentary Under-Secretary of State for Levelling Up, Housing and Communities (Eddie Hughes)]

Since affordable housing delivery is a devolved matter, I can speak only to the figures in England. The Government are determined to deliver social housing to help vulnerable families and tackle homelessness. Since 2010, we have delivered over 154,600 homes for social rent across England.

[Beth Winter]

In Wales, the Welsh Government are delivering new social housing at an accelerated rate, year on year, with an 18% increase in the last year. There were 20,000 new affordable houses built in the last five years, 65% of which were social rented, and another 20,000 will be built in the next five years, all of which will be social rented and at a low carbon specification. Unfortunately, in England the opposite is the case, with affordable house delivery falling, so will the Minister say what conversations he has had with the Welsh Government Minister, and what lessons he can learn on delivering the much needed increase in the affordable and low carbon social housing required?

[Eddie Hughes]

It is a fine invite for more conversation, but I do not think we need to learn any lessons from other devolved Assemblies. We are doing a fine job in England—not just building more houses for social rent but building more affordable homes, with £11.5 billion invested, and also making a significant amount of progress when it comes to decarbonising new homes.

Budget Resolutions

Beth Winter Excerpts

Monday 1st November 2021 Commons Chamber

[Beth Winter (Cynon Valley) (Lab)]

In the build-up to the COP26 summit, which began today, I held three climate assemblies in my constituency, and I have sent our manifesto to the COP26 President. Cynon Valley is an old mining community suffering higher than average levels of poverty and ill health. While the people of our community are ready for and want change, they are also anxious to ensure that in the future-proofing of our planet, communities such as ours are not left behind, but this Budget and spending review give me no confidence that that will be the case. Indeed, yet again, the people of Cynon Valley and of Wales are being short-changed by this Tory Government. The Welsh Government’s budget in 2024-25 will be nearly £3 billion lower than it would be if it had increased in line with the economy since 2010-11. The Chancellor’s Budget offers Wales no help to deal with dangerous coal tips, although the whole UK benefited from the coal dug out from the south Wales valleys. Must we wait for another disaster before action is taken, given that a disaster becomes more likely as the climate crisis accelerates?

There is talk of levelling up, but losing £375 million of EU structural funds and replacing it with a £120 million levelling-up fund, most of which has gone to Tory-held seats, does not sound much like levelling up to me. To add insult to injury, this Government are bypassing the democratically elected Welsh Government in making their decisions about how to spend money in Wales. For my constituents—thousands of them—the decision to withdraw the universal credit top-up has been devastating, and there is no benefit for the unemployed and the most disadvantaged. The Budget and spending review have been celebrated by Opposition Members. Some say that the Tories have “stolen Labour’s clothes”; I am relieved to say that they have not stolen this socialist’s clothes.

We urgently need to reconfigure our economy and society. We need to reverse the effects of austerity on our communities. We must act now to reduce inequalities in our society, and that is not just about levelling up; it is also about levelling back down the extreme wealth owned by such a small proportion of our population—millionaires whose wealth has grown over the time of the pandemic. We need to introduce a wealth tax, which could raise more than £300 billion over a five-year period.

That money should be invested in developing a democratically controlled green new deal, ensuring that decisions are made by local people, communities and their elected representatives who best understand their needs. It could develop the green industries that we want, creating numerous well-paid green jobs in my community. It could help to renew all the public services, and generate community wealth along with the museums, libraries and theatres that we lost because of austerity. We could at last develop the kind of green rail infrastructure that we need, and with prices at a level that people can afford. Wales has already lost out on nearly £5 billion of investment because HS2 is being classed as a Wales and England project. When is the Chancellor going to rectify that?

I am proud to be a co-sponsor of the green new deal Bill—the Decarbonisation and Economic Strategy Bill—which is relevant today. Addressing the climate crisis must be embedded in everything we do from now on. It means prioritising the future of the planet in every decision we take, including budgetary and spending reviews. We need urgent action now, and it is my sincere hope that the world will come together at COP26 to save our planet. No, this Tory Government have not stolen my green clothes at all; they have given to the rich and made life harder for the poor. That is the opposite of what I stand for, and levelling up it most certainly is not.

[Mr Deputy Speaker (Mr Nigel Evans)]

As Christmas is coming, the last two speakers have five minutes each.