Oral Answers to Questions

Bob Blackman Excerpts

Monday 17th June 2019 Commons Chamber

[Bob Blackman (Harrow East) (Con)]

I congratulate my right hon. Friend on his answers thus far. May I commend to him a booklet published in 2011, with a forward by one of his notable predecessors, on efficiency in local government, which I had something to do with? May I suggest that no authority in the country has yet taken every single efficiency measure, and that we should roll that out right across the country?

[James Brokenshire]

I certainly look forward to perhaps continuing this discussion with my hon. Friend outside the Chamber, and I commend him for his work in rightly highlighting the issue of value for money. Of course we can and should do more, and it is important that where there is good practice we learn from that.

Non-Domestic Rating (Lists) Bill

Bob Blackman Excerpts

2nd reading: House of Commons & Money resolution: House of Commons & Programme motion: House of Commons & Ways and Means resolution: House of Commons
Monday 17th June 2019 Commons Chamber

[Rishi Sunak]

I am not sure I would like to go down in history as the man who revalued people’s homes to tax them more. The Chair of the Select Committee on Housing, Communities and Local Government makes a fair point, but the difference is that the statutory basis for business rates requires that the overall revenue raised remains neutral in real terms, taking account of appeals and increases, so it is necessary to ensure that that happens in practice. As a result of doing that every five years since 1990, the Government have enacted a revaluation.

Following the 2010 revaluation, and in the face of the economic downturn, the planned 2015 revaluation was postponed to 2017. That reflected the need at that difficult time to give businesses more certainty. Quite rightly, however, it also led to renewed interest in business as to how often we should in the future revalue for business rates.

[Bob Blackman (Harrow East) (Con)]

I will not be as mischievous as the Chairman of the Select Committee, but there is an issue that needs to be dealt with. Various Treasury and Ministry of Housing, Communities and Local Government reforms have resulted in many reliefs and opportunities for people to run small businesses without having to pay any business rates at all. Is it not time for a fundamental review of business taxation, to make it fair and reasonable and to ensure that those people who operate online also pay their fair share of business taxation, rather than relying on those businesses that happen to be in situ?

[Rishi Sunak]

I feel like I am being pincered by the illustrious senior members of the Select Committee. Of course, the issue of business rates vexes many people, but my hon. Friend is right to point out that, because of the various reliefs enacted by this Government, it is the case that fully one third of all businesses pay no business rates at all, and that is to be welcomed.

Notwithstanding the fact that I would be straying far from my brief and treading on the Chancellor’s toes if I addressed the broader structure of business rates taxation, it is worth saying that when the Treasury last looked at the issue a few years ago, there was no consensus among the business community about what might replace it. On digital taxes in general, although it is not quite the same, the digital services tax mooted by the Chancellor goes in part towards addressing the issue raised by my hon. Friend.

To return to the Bill, the response of businesses to the consultations and engagements was very clear: they thought that the revaluation cycle should be shortened, and the most popular option emerged as three years. Therefore, this Bill makes three changes to the rating system in England.

First, the Bill will bring forward the date from which the next revaluation takes effect, from 1 April 2022 to 1 April 2021. Secondly, the Bill will ensure that, thereafter, revaluations will take effect every three years, so the next revaluation after that will be in 2024, and so on. Thirdly, the Bill will change the last date by which draft rateable values must be published in the lead-up to the revaluation, from the preceding 30 September to 31 December. That period, during which new rateable values are published before the list comes into force, is known as the draft rating list.

Business rates is a devolved policy area, but the Bill also applies in part to Wales. As in England, the next revaluation in Wales will be brought forward to 1 April 2021. I understand that the Welsh Government are considering options for the frequency and nature of revaluations thereafter, so the requirement for three-yearly revaluations does not yet apply in Wales. Entirely different legislation applies in Scotland and Northern Ireland, but I understand that both countries are committed to having more frequent revaluations.

Hon. Members who have been following the proceedings of the Select Committee on the Treasury inquiry into the impact of business rates will have seen a range of business groups support the move to more frequent revaluations. I will end with a quote from the evidence provided by the Association of Convenience Stores:

“More frequent revaluations will allow rateable values to link more closely with the non-domestic property market and three-yearly revaluations strike the balance between VOA resource and accuracy for business.”

In conclusion, I am very glad to be able to make this improvement to the rating system, and I commend the Bill to the House.

[Jim McMahon (Oldham West and Royton) (Lab/Co-op)]

First, may I refer Members to my entry in the Register of Members’ Financial Interests? I am a vice-president of the Local Government Association. We are very supportive of more frequent revaluations. There are growing calls to make sure that that happens, not only to ensure their relevance but to remove any potential sharp cliff edges—the longer a revaluation is left, the more the valuations between regions drift.

The LGA, though, would like the Government to go further, and asks them specifically to reduce the significant backlog of appeals: there are a staggering 65,000 unresolved appeals from 2010 in the system. That is important because local councils have to have £2.5 billion in reserves, in case those appeals are successful and the risk is carried by council services. The LGA also asks for the appeal period to be capped at six months. Again, that would reduce the financial exposure for which local authorities would have to make provision through their reserves. The LGA believes that that would be more appropriate.

We must consider the impact of revaluations with regard not only to the changing nature of demand—including for retail, office and other types of uses—but to the geographical shift away from our regions to London and the south-east, as shown by the most recent revaluation. The net take for the Treasury has to be broadly the same, and the revaluation reflects the increase in value in London and the reduction in the regions.

In the 2017 revaluation, it was only London that experienced an increase in all values across all sectors: retail was up by 26.2%, industry by 15.1%, office by 21.2%, and other uses by 25.7%. Every other region, bar the south-east, experienced a reduction in retail values, including by 1.2% in the west midlands and by 6.8% in the north-east. Although office values were more mixed, Yorkshire and the Humber experienced a decrease in value of 13.25%, followed by the north-east, which was down by 12.5%. A real shift is taking place away from our regions, primarily in the north, towards London and the south-east.

Let me paint what that picture means in pounds and pence, because that is what the Treasury cares about when it comes to business rates. The square mile of the City of London alone is now valued higher than the whole of Wales. Westminster City Council and Camden Council together are worth more than the whole of the north-west of England. Greater Manchester alone is valued higher than the whole of the north-east of England. We are seeing major shifts in values across the country, focusing not just on the capital but on the city bases away from our towns.

Why is that important? As more local authorities move towards business rate retention schemes, all with varying degrees of retention and because of that different degrees of exposure, there will be an impact on those with 100% retention in particular. Councils will be asking—following the next revaluation in 2021, should the Bill go through—what safety net will be in place to ensure that councils with perhaps weaker economic bases are not disadvantaged because they have opted into a business rate scheme. That is not because they have not been working hard to drive their local base—many have been doing that, which is why they went into the scheme in the first place—but because the nature of demand in those places has changed so much.

In Committee, when we have a bit of time to secure evidence to test some of these ideas out, I hope there will be a spirit of wanting to work together to try to make the system work. We have heard some pushing demands from Members who, quite rightly, recognise that council tax and business rates are both very important property taxes which also have limitations. It is important that both are sustainable and fair on the payers.

[Bob Blackman]

The hon. Gentleman provides an analysis, which I recognise, of the changes that took place during the previous revaluation. He also says that there is an opportunity for local authorities to grow their economic base. Has he done any economic analysis of how successful those areas of the country that have seen a greater fall in their valuations have been in attracting businesses, in particular where public services and Government Departments have been devolved to those areas, which can increase the economic basis of those local authorities?

[Jim McMahon]

We have done that analysis. We have spoken to local authorities that are part of the retention scheme and where they have managed to capture the uplift in growth of values. I should say, however, that in combined authority areas and city regions, where we take the locality in the round we are seeing a shift away from towns to cities. The cities are performing very well and we are seeing stability in the retail and office markets, but we are not seeing the same repeated in the neighbouring towns that can be only a mile or two up the road. In terms of net gain, a lot of them will have to bring forward their strategic plans to ensure they are developing enough big employment sites, because it will eventually come down to square footage as we see the nature of it shift.

Let us be honest: we are talking about an online sales tax. The Government have really resisted that. There are some legitimate reasons to be cautious, particularly in terms of EU legislation and what that might mean for a potential challenge, but the fact is that we have not addressed, even within the business rate regime, how completely unfair it is for the high street anchor store —John Lewis, Debenhams and so on—which brings in footfall into town centres and supports the other retailers. The Amazon big shed on the edge of the motorway pays a fraction of the business rates to occupy that space, when it is actually a more productive space direct to the consumer. There is a lot of room to go here, not just to rely on an internet sales tax, but to get around a table, work through the detail cross-party and really test what areas are not controversial. Most people who understand this recognise that the system has to catch up with the changing times. That offer has been on the table for a while and perhaps one day it will be taken up.

High Streets and Town Centres in 2030

Bob Blackman Excerpts

Thursday 13th June 2019 Westminster Hall

[Bob Blackman (Harrow East) (Con)]

It is a pleasure to serve under your chairmanship, Mr Stringer, I believe for the first time. As a distinguished former leader of a city council, you will understand the importance of the high street not only to our towns and cities but to people across the country. I apologise to the hon. Member for Sheffield South East (Mr Betts), the Chair of the Select Committee, for being slightly late for the debate; I was engaged as the secretary of the 1922 committee, administering the ballot for the leadership of the Conservative and Unionist party.

I have a long memory of the high street; when I was a young lad, the shops were open probably five days a week: on Saturday all day, closed on Wednesday lunchtime and often closed on Monday, too. It was the advent of another subject dear to my heart—large-scale immigration to this country—that enabled the Gujarati community and others to come here and see the benefit of cornering the market and opening for longer. That shows how retail outlets have to change with the times. It is no longer good enough to be open from 9 to 5.30 or 6; shops have to be open seven days a week to make money.

I think it is fair to remind the Minister that this report is cross-party and its recommendations are agreed and strongly endorsed by all members of the Select Committee, so they have a lot of strength behind them. I want to touch on one or two things that are appropriate on this issue. First, to rejuvenate our high streets, I agree with the hon. Member for Dulwich and West Norwood (Helen Hayes) about allowing retail properties to be converted to rather unsuitable homes for people. They were originally intended to be retail units and were not built as homes, and often they are unsatisfactory.

However, there are large numbers of flats above high-street shops that were originally made as homes. A lot of those have been converted to become storage units, office space or for other purposes. To rejuvenate our high streets, we need to get people back to living in those properties. In times gone by, the shop owners would live above the premises and have a very short commute to work. These days, that is not the case. We need, and should encourage, a rejuvenation project to encourage those properties to be brought back into use for living accommodation.

The Chair of the Select Committee mentioned our visit to Darlington and Stockton. It was shock to us that Marks & Spencer—a key store in the middle of the high street—had closed down. We asked why, and were told that it could not make money. It had a 250-year lease on the property, and the property owner quite reasonably said, “Fine. You just keep paying us for 250 years.” No one would take on the lease because it was too expensive, so it blighted the whole high street. The Government need to look at ownership of properties, because without understanding who owns properties and what pressure can be brought on them to change the basis of rent or encourage them to let the properties at a reasonable rate, our high streets will be blighted forevermore.

I was also struck when I had a briefing from Tesco about business rates and their impact on its stores. Tesco, a very successful company across the UK, has concentrated not on the big retail stores but the smaller, Metro-type operations on our high streets. That is welcome because it brings retail back to people at a reasonable price, drives footfall and encourages the development of other comparable retail units on the high street. The slight problem is that its finances on turnover and business rates are remarkably tight. It makes only something like a 4% margin, so if retail sales fall, those stores will be in potential crisis. If they close, many other stores along that high street will close with them, because people will not go to them. There is a fact of life that we must look at: frankly, business rates for retail units are not fit for purpose and need fundamental reform.

The arguments about an online sales tax are reasonable, and I think there are concerns. The first question is whether we can collect the money. Business rates associated with a property are relatively easy to collect. However, an online sales tax should also be reasonably easy to collect. The next issue is where that money goes. If an online sales tax is introduced on warehousing or companies such as Amazon, will it be collected from a central point and then distributed? How will it be provided to local authorities, which will depend on business rates, or some form of business taxation, for their funding?

My answer is that we need an online sales tax, but it needs to be set at a reasonable rate—1%, 2% or whatever—and then distributed on the basis of the business rates income that otherwise would have accrued to a local authority. That is one way we could make this happen. Not reforming business rates is completely unacceptable, because the burden will become greater and greater. The other issue that affects retail units is that, as the Government response to our report shows, the Government have done a whole series of complicated things that, frankly, have distorted the market completely. They have distorted business rates and made them even less fit for purpose, which is why we need fundamental reform and review.

High streets up and down our country have gone through various problems, and many of them are looking a bit tired. They need to be refreshed and reconsidered. We need new ideas, new shops, new facilities and encouragement from local authorities to increase footfall to those premises. We must build up the partnership between local authorities and retailers. It is a symbiotic relationship: the reality is that if local authorities do not co-operate with retailers, they will lose business rates income, which will be even more important to them in the future. We look to my hon. Friend the Minister to come up with some wise words and stronger action—particularly on business rates, on which the Government’s response was rather disappointing. I hope we see further action from the Government in that area.

Housing, Communities and Local Government

Bob Blackman Excerpts

Thursday 11th April 2019 Ministerial Corrections

[Bob Blackman (Harrow East) (Con)]

21. I thank my hon. Friend for her answers so far. Clearly, to prevent people from dying on our streets because they are homeless, it is far better to provide them with a home, or to prevent them becoming homeless in the first place. Will she update the House on what is being done in the Housing First trials, so that we can see that innovative scheme rolled out across the country and end homelessness for good?

[Mrs Wheeler]

I thank my hon. Friend for that question. The Housing First pilots are in the Greater Manchester, Greater Birmingham and Greater Liverpool areas, and £38 million has been put aside to assist with them. The Mayor of the Greater Birmingham area, Andy Street, phones me regularly to tell me about the progress on the Housing First pilots in the west midlands. The pilot in Liverpool is going quite well too but, sadly, the one in Manchester is not going as well, but I like a bit of competition between the three Mayors and I am sure they will all step up.

[Official Report, 8 April 2019, Vol. 658, c. 12.]

Letter of correction from the Under-Secretary of State for Housing, Communities and Local Government (Mrs Wheeler):

An error has been identified in the response I gave to my hon. Friend the Member for Harrow East (Bob Blackman).

The correct response should have been:

Housing, Communities and Local Government

Bob Blackman Excerpts

Tuesday 9th April 2019 Ministerial Corrections

The following is an extract from Housing, Communities and Local Government Questions on Monday 8 April 2019.

[Bob Blackman (Harrow East) (Con)]

21. I thank my hon. Friend for her answers so far. Clearly, to prevent people from dying on our streets because they are homeless, it is far better to provide them with a home, or to prevent them becoming homeless in the first place. Will she update the House on what is being done in the Housing First trials, so that we can see that innovative scheme rolled out across the country and end homelessness for good?

Oral Answers to Questions

Bob Blackman Excerpts

Monday 8th April 2019 Commons Chamber

[Mrs Wheeler]

Obviously, the figures that the hon. Lady reads out are desperate and sad news. We are working with the Department of Health and Social Care to ensure that when a homeless person dies, a safeguarding adult review takes place, where appropriate. The safeguarding adult review process was set up not to review every death of an adult considered to require safeguarding but as a process for learning lessons where the safeguarding adults board is of the view that local partners could have done more to prevent a death resulting from abuse or neglect.

[Bob Blackman (Harrow East) (Con)]

21. I thank my hon. Friend for her answers so far. Clearly, to prevent people from dying on our streets because they are homeless, it is far better to provide them with a home, or to prevent them becoming homeless in the first place. Will she update the House on what is being done in the Housing First trials, so that we can see that innovative scheme rolled out across the country and end homelessness for good?

[Mrs Wheeler]

I thank my hon. Friend for that question. The Housing First pilots are in the Greater Manchester, Greater Birmingham and Greater Liverpool areas, and £38 million has been put aside to assist with them. The Mayor of the Greater Birmingham area, Andy Street, phones me regularly to tell me about the progress on the Housing First pilots in the west midlands. The pilot in Liverpool is going quite well too but, sadly, the one in Manchester is not going as well, but I like a bit of competition between the three Mayors and I am sure they will all step up.[Official Report, 9 April 2019, Vol. 658, c. 2MC.] [Official Report, 11 April 2019, Vol. 658, c. 6MC.]

Oral Answers to Questions

Bob Blackman Excerpts

Monday 4th March 2019 Commons Chamber

[Mr Speaker]

I call Bob Blackman.

[Bob Blackman (Harrow East) (Con)]

Thank you, Mr Speaker. Honours were even on Saturday.

I congratulate the Minister on what he has done on adult social care, but one problem is that many people are asset rich but cash poor, and early intervention is required to prevent those people from degrading. What can he do to encourage local authorities to intervene early so that people live a healthier, longer life?

[Rishi Sunak]

As ever, my hon. Friend makes an excellent point. He is right about the importance of early intervention, whether it is with young families and children or people who are older and frail. The Government recently announced an increase in the disabilities facilities grant, which does exactly what he says and helps people proactively to adapt their homes so that they can stay independent for longer. That is an example of the prevention work that he mentions, and he is right that we should focus on that in future.

Local Government Finance

Bob Blackman Excerpts

Tuesday 5th February 2019 Commons Chamber

[Kevin Hollinrake]

rose—

[Bob Blackman (Harrow East) (Con)]

rose—

Holocaust Memorial Day

Bob Blackman Excerpts

Thursday 24th January 2019 Commons Chamber

[Bob Blackman (Harrow East) (Con)]

It is an honour to follow the hon. Member for East Kilbride, Strathaven and Lesmahagow (Dr Cameron), who made such a moving contribution.

Contemplating the systematic murder of 6 million people is beyond credibility, so the brilliant work of the Holocaust Educational Trust to highlight the testimony of survivors and the stories they have told is critical. I pay tribute to the fact that it educates 120,000 people every year about the awful horrors of the holocaust.

I pay tribute to holocaust survivors in my constituency, including Eve Glicksman, Henri Obstfeld and Herman Hirschberger, who all regularly go out to schools, despite being of advanced age, to bear testament to what happened during the holocaust.

The hon. Member for Liverpool, Wavertree (Luciana Berger) mentioned my late constituent Gena Turgel, who sadly died last year. I knew her as the best hostess in Stanmore, with the best apple strudel around, but her story epitomises what happened during the holocaust. She was born in Krakow, the youngest of nine children, and she was only 16 when the Nazis started their blitzkrieg on Poland. She had relatives in America, and the whole family intended to go there, but sadly the Nazis had closed all the doors before the family could get out, so the family moved just outside Krakow to the ghetto, carrying a sack of potatoes, flour and their other belongings.

The second brother fled the ghetto and was never seen again. Gena Turgel was eventually sent to the Plaszow labour camp on the edge of Krakow. She later discovered that her sister Miriam and Miriam’s husband—they had married in the ghetto—had been shot after the Nazis caught them trying to bring food into the camp.

The camp was liquidated in the winter of 1944, and Gena and her family had to walk—they did not travel by train—to Auschwitz-Birkenau. They were sent on a death march from Auschwitz, leaving behind her youngest sister. They never saw her again. After several terrible days, they came to Leslau, where they were forced onto trucks. They travelled under terrible conditions for the next three or four weeks, eventually arriving in Buchenwald. From there they were sent on cattle trucks to Bergen-Belsen, where they arrived in February 1945. Gena worked there in a hospital for the next two months. In 1945, the British Army liberated Bergen-Belsen. Among the liberators was Norman Turgel, who became her husband six months later. Gena and her husband moved to the United Kingdom, which she made her home and where she brought up her family—her children and grandchildren. She wrote a book called “I Light a Candle”. Her light has gone out, but it will survive for ever.

I am very pleased that the Lessons from Auschwitz project involved Park High School, Canons High School and Bentley Wood High School in 2018. No one who attended the Holocaust Educational Trust reception recently could have failed to be moved by the testimony of the survivors.

I want to end by saying that I think there is real hope. Yasmin Mohamed, a student at Canons High School and a Holocaust Educational Trust ambassador, commented after the reception that she had

“seen first-hand where antisemitism, intolerance and hatred has led in the past and I’m now committed to ensuring that the Holocaust is never forgotten. I want to ensure that we learn from the past so that we can build a better future.”

I am pleased that we will soon witness the Holocaust memorial centre close to Parliament so that we can educate young people and have a memorial to the victims of this terrible disaster. The planning application was submitted in December 2018 and the site, as we well know, is Victoria Tower Gardens. I am pleased to be the co-chair, together with my friend the hon. Member for Dudley North (Ian Austin), of the all-party group that is going to see that come to fruition.

Tenant Fees Bill

Bob Blackman Excerpts

Ping Pong: House of Commons
Wednesday 23rd January 2019 Commons Chamber

[Mrs Wheeler]

Indeed—well said.

[Bob Blackman (Harrow East) (Con)]

I think my hon. Friend is coming to the conclusion of her contribution. She mentioned when these measures will come into force for new tenancies. Could she clarify that the Bill will apply to not only brand new tenancies, where a tenant moves into a property, but also existing tenancies that are renewed by being rolled over or where the tenant remains in situ and enters into a new tenancy agreement?

[Mrs Wheeler]

I thank my hon. Friend, who has been assiduous in his time on the Housing, Communities and Local Government Committee. The intention is for the Bill to apply to all new tenancies signed after 1 June. As he said—he must have better eyesight than anyone—I am close to concluding.

The exception to the 1 June date is the client money protection provisions in the Bill, which, as I have said, come into force on 1 April 2019. Ahead of that, we will continue to work closely with key stakeholders to support implementation of the ban. We will work with industry groups to ensure that the ban is properly communicated, and we continue to work with local authorities to ensure that they are ready to enforce it. I have already shared the draft consumer and enforcement guidance with Members, and it is now being updated to reflect the Lords amendments.

--- Later in debate ---

[Melanie Onn]

I have already given way generously.

The first point that our amendments seek to address is the financial staggering for the cap level that landlords are allowed to impose. I have sympathy with the Government’s aim of prioritising a reduction of the deposit burden on those at the cheaper end of the market, but the specific provisions in Lords amendment 36 could mean that those in joint tenancies end up being subject to the higher cap, despite individually paying significantly less in rent than is used as a threshold in the amendment. It is counterintuitive to create a cap that allows deposits to be relatively higher for someone paying £5,000 a year in rent in a 10-bed large house in multiple occupation than for someone paying £45,000 in an individual rent, so I would welcome reassurance that joint tenants will not be short-changed by the differential cap. If they will be, I would welcome an explanation of the logic behind the decision to allow those in joint tenancies to be charged relatively more.

Regardless of the functioning of the differential cap, the Lords amendment will do little for the majority of tenants in this country. The cap will have a negligible effect on the majority of deposits in the country and will allow the current system to function virtually unchanged. For the graduate who cannot afford the up-front costs to move to a city for a new job, or for the family given just two months to save enough money to find a new flat and avoid homelessness following a section 21 notice, the system is simply not fit for purpose and needs urgent change.

According to the English housing survey, a five-week rental deposit will set new tenants back an average of almost £1,000 across the country, and over a staggering £1,500 in London. For many in society who are living pay cheque to pay cheque, saving that sort of money would take an enormous amount of time, and certainly far longer than the two months that tenants are given when they are served with section 21 notices. That means that many struggle to access the flexibility that renting should offer. They fear being served notice to vacate because that could result in homelessness. That is simply not how the private rented sector should function.

Our amendments would change that. Lords amendment 36 introduces an ill-thought-through staggering system. Amendment (a) in lieu would reduce the cap on deposits from five or six weeks to three, and our amendments together will reduce deposits to three weeks for all, closing the loophole that could be opened by Lords amendment 36.

I was interested to hear the Minister’s announcement of the enactment date. A written statement is due today, which I look forward to reading. I was also interested to hear her comments in response to my hon. Friend the Member for Manchester, Withington (Jeff Smith), who is no longer in his place, on enforcement and trading standards. She said that the consumer money protection measures in the Bill would be in place before enactment. I would appreciate clarity on whether she meant enactment on 1 June 2019, which is rapidly approaching, or whether she was referring to the commencement date of April next year.

Labour’s amendments would give private rented sector tenants a very welcome helping hand at a very expensive time. If passed, the amendments would reduce the deposit barrier by almost £400 across the country, and by over £600 in London, offering significant change to tenants from all backgrounds and building a better private rented sector for the many.

[Bob Blackman]

I draw the attention of the House to my entry in the Register of Members’ Financial Interests.

It is a pleasure to follow the hon. Member for Great Grimsby (Melanie Onn). I had the opportunity to chair—and the challenge of chairing—the Housing, Communities and Local Government Committee during pre-legislative scrutiny in the absence of the elected Chairman of the Committee, the hon. Member for Sheffield South East (Mr Betts), who unfortunately was undergoing health treatment at the time. I take absolutely the praise that the hon. Lady pours on me for reaching the judgment of Solomon—[Interruption.] It was possibly unintended at the time. From the outset of our pre-legislative scrutiny, on an all-party basis, we sought to balance good landlords and tenants, who are the overwhelming majority, with the small minority who are rogue landlords and rogue tenants. The risk here is the balance that is struck.

I do not intend to go over all aspects of the Bill but, clearly, I am absolutely delighted that the Government have seen fit to endorse all the Select Committee’s recommendations, especially the reduction of deposits from six to five weeks’ rent. I will again set out why we came to that conclusion. As Members might recall, we had a long discussion about it in Committee. Some promoted the concept of a six-week deposit and some a four-week deposit. No one but no one on the Select Committee promoted less than four weeks, for very good reasons.

Our view was that a six-week deposit was clearly too onerous for tenants. I accept what the hon. Member for Great Grimsby says about the cost to tenants of a six-week contribution, but there is also a clear risk with only a four-week deposit—or, worse still, her proposed three-week deposit—because we might get to a position in which, in the last month before the end of a six-month assured shorthold tenancy, a tenant has no incentive whatever to pay their last month’s rent. Tenants could just skip, and the landlord would then have to pursue them through the courts, bearing incredible costs unreasonably.

The issue for us was that four weeks would lead to a position whereby the tenant had an incentive to say, “Okay, I won’t pay the last month’s rent—just take it out of the deposit,” and then if the landlord could reasonably wish to claim money from the deposit because of damage or other reasons, they would have to pursue court action to recover it. That would be grossly unfair on good landlords, who are the vast majority in this country. Other members of the Committee promoted six weeks, so we ended up with the view that five weeks struck a balance between giving tenants an incentive to pay their last month’s rent, in the knowledge that they would get back their deposit had they been good tenants, and landlords being forced to go through a proper claim process to recover moneys as a result of damage by a tenant.

[Richard Graham]

I am afraid that the Opposition spokesperson, the hon. Member for Great Grimsby (Melanie Onn), will not give way on this matter because she is making a purely political point by wishing to appear to be helping tenants more, but the interesting silence in the debate so far has been from Scottish National party Members, because of course there is an eight-week deposit in Scotland. What does my hon. Friend think about that?

[Bob Blackman]

Clearly we are not talking about the position in Scotland, but I suspect—I might be wrong—that rental levels in Scotland are very much lower than elsewhere in our urban conurbations, and certainly in London. Scotland also perhaps has a lot more social housing than England—

[Angela Crawley (Lanark and Hamilton East) (SNP)]

indicated assent.

[Bob Blackman]

I see the hon. Lady nodding about that point. Those two things are equally important.

Another consideration, which has not yet come out in the debate, is the economic impact of what happens with deposits. If we lowered deposits, I suggest that landlords would likely increase the rent over the period and—this is the key point—tenants would end up far worse off as a direct result, because landlords would have inflated the rent in order to recover the moneys due.

[Mrs Wheeler]

Let me clarify something about the ban applying to all new tenancies from 1 June. There will be a 12-month transition for tenancies signed before 1 June during which tenants can be charged. After 1 June 2020, no tenants can be charged fees banned under the Bill, which gives a clear date for when the provisions of the Bill will apply to all tenancies.

[Bob Blackman]

I thank the Minister for that helpful intervention, which clarified her earlier remarks and what was said when I intervened on her speech.

It is reasonable to set a position whereby we are abundantly clear in the Bill—I hope it will soon become an Act—that letting agents, estate agents or whoever are working on behalf of landlords, not tenants. I therefore warmly welcome the Lords amendment on holding deposits that was wisely tabled by the Government. What happens at the moment is an absolute outrage: some unscrupulous letting agents take a variety of competing holding deposits to inflate rents by almost having an auction for rental properties. That is grossly unfair on prospective tenants who are just looking for a property, so I warmly welcome that decision. It will be a welcome change for tenants throughout the country.

I am glad about the clarity of the Lords amendments that ensure that we are clear about the charges a landlord can make, what their purposes are and what the standards of evidence must be so that tenants do not bear a ridiculous price for, say, a lost key. Any charge will have to be evidence-based—the cost of replacing keys or other such security devices will be set out—and any cost will be reasonable, not inflated. One of the problems has been that certain unscrupulous individuals have been getting away with ripping off tenants with such charges in a grossly unfair way.

I warmly welcome the Lords amendments. The whole Select Committee welcomes the fact that the Government have finally got to where we were in the first place on deposits. I trust that we will reject the spurious Opposition amendments and ensure that the Bill, which has been warmly welcomed throughout the country, rapidly becomes law so that we can implement a process that is fair for tenants.

One thing that we desperately need to introduce is a national rental deposit scheme. My hon. Friend the Member for Colchester (Will Quince) and I managed to convince the Chancellor to do that at the time of not the most recent Budget, but the one before, and money was allocated to the Department to make that happen. When the Minister sums up, I would welcome her assuring us that we will speed up the process of introducing such a scheme so that those for whom the deposit is the key issue in getting a tenancy can be funded by public money, thus protecting them and giving them the opportunity to get a tenancy and a home of their own.

[Angela Crawley]

As the lonely Member on the SNP Benches, and given that the Bill applies solely to England, I will endeavour to keep my comments brief. The Government’s Bill is, however, welcome.

This Government are playing catch-up with the Scottish Government, who abolished tenant fees in 2011. The Scottish reforms gave tenants longer notice periods, indefinite security of tenure and limited rent rises, so it is most welcome that this Government are making changes here now. In Scotland, in many instances, money has gone back into the pockets of Scottish renters, but renters in England are currently losing out due to this Government’s inaction and failure to offer the same protections.

The Government have maintained the right-to-buy policy, but they must recognise that to give people the greatest choice and flexibility, they have to ensure that the opportunity of the right to buy is matched with an increase in home building and access to socially affordable housing. I am afraid the Government have not quite hit the mark on that yet, and people are simply being driven into the private rented sector, which limits their options and opportunities.

The Bill is very welcome. As we heard from Conservative Members, there remains the fear that this policy will mean that the costs of the abolished fees will be passed on to tenants in an underhand way, but that concern is unfounded. It has not happened in Scotland, where there has not been a significant spike in rents since the ban on fees, so I hope that the Government will take heed of that fact. Independent research commissioned by Shelter found that since 2012 landlords in Scotland had been no more likely to increase rents than landlords in other parts of the UK. Between 2012 and 2016, rents increased by 5% in Scotland, compared with 9% in England, so the abolition of tenant fees does not appear to have had a significant impact on costs.

That said, although such a policy has been shown to work in tenants’ favour, we must be vigilant about rent prices, so I hope that the Minister will outline how the Government will ensure that their policy puts tenants first. Landlords in Scotland can only increase rents with three months’ notice and no more than once a year, and tenants can contact a rent officer if they think that a rent increase is too high. I would be interested to know whether the Minister envisages similar protections and criteria for the policy in England. In Scotland, other than rent and a refundable deposit, which is capped at no more than two months’ rent, landlords cannot levy any additional charges, which means no holding deposits, administration fees, premiums or additional charges, whether refundable or not.

Tenants are secure when landlords can end a tenancy only on strict eviction grounds. The Scottish National party commends the work of charities and campaigners who secured additional renters’ rights from the Government in the House of Lords, and both Shelter UK and Generation Rent are happy for the Bill to pass with the Lords amendments. These rights include a short definitive list limiting default fees to charges for chasing late rents and for replacing lost keys or equivalent security devices. I noted the comments made by the hon. Member for Thirsk and Malton (Kevin Hollinrake) and I hope he is reassured that welcome mechanisms are in place. The provision closes the default fee loophole so that landlords will no longer be able to charge for a whole host of spurious defaults. It is also clear to landlords that they can continue to recover damages as they do now.

I welcomed the comments of the hon. Member for Harrow East (Bob Blackman), who, when comparing the position with the cap set in Scotland, rightly mentioned the greater availability of social housing in Scotland. He observed that a five-week cap was welcome, especially given that rents in England and Wales can be two to three times higher than those in Scotland. A five-week deposit cap is reasonable and will help renters to meet the initial fees needed to secure a home. Although Shelter originally argued for a lower cap, even it has said that it is

“pleased that the government didn’t stick at 6 weeks and we believe the 5-week cap will be a big improvement”.

That takes heed of the fact that costs are substantially higher in England, meaning that a five-week cap is much more reasonable.

Holding deposits are now illegal in Scotland, and that ought to be the case in England as well. Under the Lords amendments, if a tenancy does not go ahead, landlords or letting agents will be required to set out in writing the reasons why—they will also be required to give reasons for withholding some of a deposit—and they will have to do so within seven days of the decision not to progress with the tenancy. That will give tenants some clarity on exactly what happened to their money and ensure that there is a paper trail, which will make challenging unfair practices easier. Ultimately, both the landlord and the tenant will have more protection.

The ban on tenants fees in Scotland has made the rental sector fairer and easier to access. While I congratulate the Government on taking this positive step in the interests of people in rented accommodation, I urge the Minister to consider my points about abolishing tenant fees, while balancing protections for landlords with the rights of renters. The Bill will protect renters, many of whom do not have the luxury of owning their own home, and that ultimately is what we all want.

[Kevin Hollinrake]

I will try to keep my comments brief—apparently time is pressing—although there is much I would like to say about the Bill. I draw the House’s attention yet again to my entry in the Register of Members’ Financial Interests.

I am in principle and in practice very supportive of the Bill—I have been right from the start—despite my business interests and despite the extreme consternation within the industry at my support. It is absolutely right that there be a firewall around a tenant’s ability to shop around when they have found a house or flat they want to rent. We are right to believe in free and competitive markets. This was not a free and competitive market, and it is right that we act in this area. It is right that landlords pay for their own tenancy agreements, inventories and referencing. I support all those things. I also want to put on the record my support for the Minister. She has done a great job on the Bill and engaged with me and other colleagues who have had concerns about some of its provisions.

I would like to touch on two things: deposits and default fees. I will begin with Lords amendments 36 and 37. To say that three weeks would be an appropriate deposit length, as the hon. Member for Great Grimsby (Melanie Onn) has done, shows a complete misunderstanding of the issues. She is absolutely right to want to protect tenants—everyone in this place wants to protect tenants—but to do that we must be fair to landlords as well. She asked how a longer deposit period would help tenants. It would not help tenants not to be able to find properties to rent. If we deterred landlords from entering the marketplace, as a three-week cap would do, that would not help tenants.

I speak as somebody who has been in this business for 30 years. When I started, the only thing I could find in the marketplace was a shabby, damp, dark terraced house in the middle of York. It was not like today’s marketplace; tenants now have a breadth of choice, and that is because landlords have invested because they are treated fairly. The hon. Lady wants to treat tenants fairly, as I do, but we would not be treating them fairly if our policies resulted in their being refused tenancies by landlords worried about not getting their rent, not regaining possession of a property that had had significant damage done to it or not having enough deposit left for the remedial work. Her proposals would potentially put landlords in that situation, given that many tenants use their deposit as the last month’s rent, meaning there would be nothing left.

I still have concerns about restricting the deposit length to five weeks. As we know, it is eight weeks in Scotland. The average deposit in London is five and a half to six weeks, and in the rest of England it is not far below that, so the Bill will mean a change for many landlords, and we will have to keep this under review to make sure it does not have adverse consequences for tenants—that is the principle. Landlords are happy as long as they keep their properties well maintained and the rent is paid. If that is not the case, landlords will exit the market, which is not good for the tenants the hon. Lady looks to protect.

[Bob Blackman]

Does my hon. Friend recall that, during the Select Committee process, one of our considerations was that, if we set a six-week deposit limit, every landlord would rapidly move to six weeks from the current UK average of between four and a half and five and a half weeks?

[Kevin Hollinrake]

No, I do not agree with that because at the moment we have some flexibility. Under the Bill, we have no flexibility above five weeks. The trouble with that is this. I could charge a tenant five weeks, but what if they have a pet or certain other circumstances that make me less likely to want to rent it to them? I, as a landlord, will be less likely to rent to that person, under this measure, whereas with six weeks I would have some flexibility. We must make sure that this does not deter landlords from renting properties to people with pets. We do not want that, but it could happen. The Minister has promised to keep this measure under review, and I am absolutely sure that she will.

I want to touch on default fees and amendments 42 to 47. I welcome the clarification from the Minister in the letter she sent me a couple of days ago. She assured me that landlords and agents would still be able to charge for things above and beyond their existing obligations, and that is absolutely right, but the Bill itself only makes a couple of provisions on default fees, and one of those is for the replacement of keys. It sounds like a simple process, but it is possible to spend hours and hours chasing the tenant, chasing the keys, and then chasing the tenant to come and collect the keys. Someone has to pay for that work. It is not a question of the keys themselves; it is a question of the time and labour involved in their delivery.