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.

Tower Blocks: Dangerous Cladding

Bob Blackman Excerpts

Tuesday 22nd January 2019 Commons Chamber

[Kit Malthouse]

I am sorry that the hon. Lady has not acknowledged the significant amount of work that has since taken place, not least the work of Dame Judith Hackitt, which has been seminal and foundational in our changing of the building regulations for the future. The hon. Lady should be under no illusion about the seriousness with which I take the matter. It has occupied very significant amounts of my time since I was appointed in the summer, including chairing the ministerial taskforce, having regular meetings with the team internally to make sure that we are driving performance and numbers and, critically, engaging with the Grenfell community, as I have done on many occasions, both individually and collectively. That included, movingly, attending the silent walk that took place just before Christmas. We believe this a significant part of our responsibility to make sure that everybody is safe.

As I said earlier in response to the right hon. Member for Wentworth and Dearne (John Healey), our primary concern is to make sure that every resident is safe tonight. Whatever measures are required—whether a waking watch, the retrofitting of heat sensors or smoke alarms, new doors, or whatever else it might be—our primary concern is that every local fire and rescue service can guarantee to the Department that everybody who is in a residential building of more than 18 metres is safe tonight.

The secondary concern of importance is getting the remediation done. We are making significant progress on that and will be accelerating that progress in the next few months.

[Bob Blackman (Harrow East) (Con)]

In evidence to the Select Committee, Rockwool has claimed that there are more than 1,600 high-rise buildings with unsafe cladding, rather than the 397—I think—that the Department claims. That is a clear, massive disparity. Will my hon. Friend make sure before he comes before the Select Committee next Monday that we are given a clear explanation of why there is this wide disparity and that he will take action to make sure that all 1,600 buildings are made safe?

[Kit Malthouse]

My hon. Friend makes an important point of which we should not lose sight: there are types of cladding other than ACM cladding. He will know that the Department issued advice to building owners in December 2017 on how to investigate non-ACM cladding systems on their buildings and remediate them. At the Secretary of State’s request, the expert panel reviewed and updated that guidance in December last year, and it reiterates that the clearest way to ensure safety is to remove any unsafe materials. We have commissioned the Building Research Establishment to conduct a programme of testing on non-ACM materials, and we expect that testing to start shortly.

Deaths of Homeless People

Bob Blackman Excerpts

Thursday 20th December 2018 Commons Chamber

[James Brokenshire]

In relation to the hon. Gentleman’s last point, absolutely not. The Under-Secretary of State for Housing, Communities and Local Government, my hon. Friend the Member for South Derbyshire (Mrs Wheeler), is working very closely on that.

The hon. Gentleman asked about universal credit. I point to the £1 billion in discretionary housing payments that the Department for Work and Pensions has put in place to protect the most vulnerable claimants. As I mentioned, we are working with the DWP. He asked me about a meeting—actually, the DWP is part of the core group that helped inform the work on the rough-sleeping strategy. Indeed, we are very much working in close concert with the DWP to ensure that, where improvements can be made, support is provided. I know that the Secretary of State is looking at these issues calmly and carefully.

The hon. Gentleman also mentioned reaching out to those who work on the frontline. I speak regularly with a number of the charities and other organisations working on the frontline in this sector, and I will continue to make all the necessary visits to talk to those who have been sleeping rough to learn from their experiences and, as I have said, to take further action as required.

[Bob Blackman (Harrow East) (Con)]

Will my right hon. Friend confirm that, following the introduction of my Homelessness Reduction Act 2018, the statistics released by the Department covering the period from April to June this year show that 58,660 households have been directly assisted under that legislation? Will he also set out an urgent message not only to Members of this House, but to all members of the public, so that when they identify someone who is clearly sleeping rough, action can be taken to point those vulnerable people to the help and assistance that they desperately need?

[James Brokenshire]

I commend my hon. Friend for all his work and efforts in relation to the Homelessness Reduction Act. He points to some of the direct support that is happening as a consequence of that legislation coming into place.

My hon. Friend asks what people should do. Clearly there is the StreetLink app, which is a direct means by which people can identify someone who is living out on the street and see that they get the support and help that they need. From the conversations that I have had with many charities and the voluntary sector, it is clear that help is there. One of the challenges is getting people to take that help and getting them into accommodation where they will be safe and warm. I commend those groups for all of the action that is taking place.

Harrow Council Funding

Bob Blackman Excerpts

Tuesday 18th December 2018 Westminster Hall

[Gareth Thomas (Harrow West) (Lab/Co-op)]

I beg to move,

That this House has considered the future funding of Harrow council.

I have lived in Harrow all my life and I feel immensely proud of my community. Although I have disagreed a number of times with decisions Harrow Council has taken, I have always been grateful for the hugely important job that it and its staff do for my constituents and the wider borough. Harrow Council should be better funded, and I look to the Minister and his Department to begin to make a significant difference in that regard.

The council faces a number of distinctive challenges in the delivery of public services, which the lack of central Government funding is exacerbating. Harrow is the second most religiously diverse and the fourth most ethnically diverse borough nationally, with 61% from a black and minority ethnic background. Some 157 different languages are spoken in Harrow schools, and 28.5% of residents do not have English as their first language. That is significantly higher than the London average of 20% and the national average of 8%.

The number of Harrow residents aged over 85 is predicted to increase by more than 60% by 2029, and 15% are already aged over 65, compared with the London-wide average of 12.5%. We have the fourth largest EU population in London—it is estimated that around 50,000 EU nationals are resident in the borough. Low wages and in-work poverty are particular problems in Harrow. Wages paid in Harrow workplaces average £575 per week for full-time workers compared with the London-wide average of some £692.

Those challenges mean there is huge pressure on Harrow Council to deliver effective public services. Earlier this month, the council published its draft budget for next year, which spells out both the important work the council is doing and the dire situation it has been put in by Government cuts. After seven years of constant cutbacks, Harrow Council has had to find a further £17 million for the upcoming financial year. Harrow will have seen its main source of central Government funding—revenue support grant—fall by some 97% by 2019-20. It is estimated that over the four-year period from 2015-16 to 2018-19 the council needed to fund an £83 million budget gap to achieve balanced budgets. If we extend that period, it is estimated that by 2020-21 the council will have had to find £125 million to balance its budgets.

In addition to the cuts in revenue support grant, further money has been required to fund growth as a result of demand pressures, including rising homelessness, increased special needs placements and rising social care costs. Moneys have also been needed to fund the impact of inflation, capital financing costs and other reductions in specific grants, such as those to support schools. Under the new methodology for calculating revenue support grant, Harrow was the sixth hardest hit of the London boroughs in 2015-16 and 2016-17, losing some £10 million annually.

Harrow Council is one of the lowest funded councils in London. In 2015-16, its revenue spending power per head was £159, 17% lower than the London average, ranking it 26th out of the 32 London boroughs. A similar comparison with the England average shows Harrow’s revenue spending power per head was £127, 14% below the average, ranking it 105th out of 120 local authorities. Quite how the Prime Minister can claim that austerity is over is beyond me. In Harrow, as nationally, it feels unrelenting—frankly, it is getting worse.

In July, Harrow began the full transition to universal credit. More than 17,000 residents are expected to be on it by the time the transition is completed. Our housing market is under intense pressure—for many, rents are very difficult to afford—and in some parts of the borough 40% of children live in poverty. As in other parts of the country, demand for adult social care outstrips savings, as councils are asked to provide ever more with ever-diminishing resources.

Other public services in the borough with a significant interface with the council are also under severe pressure. Harrow is having to cope with a significant increase in violent crime at a time when police numbers are set to decrease further and funding for youth services has been cut by more than 75% in cash terms since 2010. The clinical commissioning group faces a deficit of approximately £50 million and has already cut popular healthcare services such as the Alexandra Avenue walk-in service in my constituency. With the highest proportion of over-85s in London, the absence of a local NHS service that might absorb with less fight some of the financial pressures arising from having proportionately more vulnerable older adults exacerbates the pressure on the council.

Schools, too, face ever-increasing financial pressures, making it harder for them to accommodate as many requests to help children with special needs as they might want to. As I mentioned, Harrow is having to cope with a significant increase in violent crime. We have already lost just short of 200 police officers, and the fear is that we will have to lose even more.

[Bob Blackman (Harrow East) (Con)]

I thank the hon. Gentleman, who is my constituency neighbour, for giving way. He is painting a bleak picture of the funding position. May I put two points to him? First, if the council were more business friendly and encouraged businesses to invest in Harrow, more business rates would come in. Business rates income in Harrow has been declining for many years, and it is forecast to reduce further.

Secondly, I believe I am correct in saying that at the moment the budget is balanced for next year, but the forecasts for future years are very challenging indeed. Has the hon. Gentleman seen any documentation from Harrow Council that sets out that dire picture? That may lead to a lobbying strategy in which he and I go to see Ministers together, with the aim of securing more money not just for the council but for specific issues such as those he describes—it may lead to our supporting each other to get more money for the services that all our residents depend on.

[Gareth Thomas]

I say gently to my neighbour that I will come on to Harrow’s excellent reputation among businesses and the recognition it has received for its performance in that area. The figures I quote are figures that I sought from the council—I am sure it would be willing to provide him with them were he to approach it. There is one specific issue on which the Minister would be able to assist if he wanted to, and I intend to come to that in due course.

Harrow has always been a prudent borough. Despite its challenges, the council has not overspent for 11 years. Its leadership and supporting councillors have been determined to shield frontline services from the axe as far as they can, but the cuts are now so deep that the council is unable to balance the books without reducing those vital services to the bare bones. Local residents are understandably concerned about the impact of funding cuts on the council’s ability to keep the streets clean and to help to deal with antisocial behaviour, among other things. By continuing to make cuts of such scale, the Government are leaving councils such as Harrow in an impossible situation and leaving our most vulnerable people at risk.

To be fair, the council has already made large efficiency savings and taken great strides to increase revenue. It has led the way in digitalising many services—87% of customer transactions are carried out online, leaving extra resources to look at the most complex and difficult cases. Council tax has been increased year on year—sadly, it is now the third highest in London, but the collection rate is above 97%. The council has commercialised services and looked at innovative ways to supply residents with additional quality services that generate new income while not endangering existing businesses and the private sector. From offering services such as training, a cookery school and gardening services to MOT testing and dealing with food and trade waste, the council has been very innovative. It has also marketed itself successfully for major film locations and for commercial events in our parks. It is a leader in shared services and is working with a number of councils to make significant efficiencies for frontline and back office services together.

As I indicated, Harrow is blessed with very dedicated and hardworking staff; in 2017, its children’s services attained a “good” rating from Ofsted, putting Harrow in the top 25% of councils across the country for performance in that fundamental service—a remarkable achievement in the circumstances. However, the council cannot be expected to deliver first-rate services with a third-rate budget level of funding, and local people know that.

Cuts are already having a big impact. Harrow has closed four libraries and significantly scaled back its work in public health. Drug, alcohol and smoking cessation services have been reduced, and all discretionary grants to the charity sector have been ended. The council has also been forced to reduce taxi card provision for the disabled to the lowest level in London. There has been a significant reduction in the number of children and families that the borough’s children’s centres are able to support. Lack of funding is holding back any ability the council might have to respond appropriately to other identified local needs, such as meeting the needs of young people.

The Young Harrow Foundation, in partnership with the council, conducted a survey of school-aged children between 10 and 19, which received an astonishing 4,500 responses. The results are very worrying. Mental health and violent crime were serious concerns for Harrow’s young people; 10% said they have suicidal thoughts and 15% said they need support relating to self-harm. We all know that lives are blighted when vulnerable members of society cannot access the help they need, and when people are unable to achieve their potential, everyone loses out.

In response to some of the acute issues facing councils, the Government have offered occasional one-off payments to, at best, paper over the cracks. For important services, that means councils are unsure of whether they will have the funding for key provision, and residents do not know whether vital services will continue to exist, from one year to the next. In short, it leaves local authorities unable to make long-term spending commitments to deliver some of the preventative work that would really benefit residents.

Harrow has had success in bidding for some such external funding to tackle some of those challenges. It secured £500,000-worth of investment from the Home Office to help fund early intervention services for young people at risk of joining gangs and becoming involved in youth violence. It also secured £760,000 to help support economic growth locally and was recently granted some £32 million by City Hall to build just over 600 new council homes. While this type of funding is of course welcome, these too are one-off payments for specific activities, offering no guarantees of continued funding, and the council may find itself having to cancel successful programmes if funding is not renewed. I gently suggest that that is not a grown-up, sensible way of funding local government.

[Bob Blackman]

The hon. Gentleman points out, rightly, that the budget in Harrow is balanced this year by one-off payments, I believe, as opposed to long-term arrangements. That is one of the things leading to future problems. Can he also answer this? Harrow is one of a very small minority of councils across the whole of England that failed to sign up for the multi-year settlement, which, although it is not always easy, gives certainty about funding over a number of years. Where councils have done that, they have known and been able to forecast what their income level will be. Harrow refused to do so, and has never answered my question why it refused. That brings the uncertainty of not knowing how much money will come in each year.

[Gareth Thomas]

With all due respect to the hon. Gentleman, he will recognise that even councils that have signed up to the arrangement with the Government that he describes have still faced significant additional pressures from all sorts of sources, be it social care or homelessness, as I have already outlined, exacerbating the difficulties in setting sensible long-term budgets that meet needs. It would certainly be extremely welcome to hear him putting pressure on his ministerial colleagues to allocate additional funding for the London Borough of Harrow.

Despite the difficulties I have set out, the council has continued to play its part in trying to foster economic growth, supporting the regional and sub-regional objectives for business, employment and skills set out by the West London Economic Prosperity Board. The investment pot of £1.1 million from business rates retention is going into supporting businesses in accessing online services. Furthermore, Harrow Council is supporting that by investing £480,000 to try to help to develop the skills of low-paid, low-skilled and self-employed residents in the borough. Indeed, the council has been recognised for its work in this area, winning the Best Small Business Friendly Borough award. The council is also building new housing, making use of the new homes bonus, and has set out a major regeneration programme to maximise use of council-owned sites to support sustainable housing growth, as a result of which it will get some additional income from council tax.

I recognise that Harrow Council is not alone in facing challenges of the scale that I have set out. Surrey, Torbay, Lancashire and many other councils are already in serious financial problems. Commissioners were called in to Northamptonshire council after it ran out of money. Other councils are privately warning of similar difficulties soon. Many councils are having to prop up their budgets with funding from reserves, something that Harrow has not been able to do. I gently ask how many more signs the Government need before they wake up to the crisis in local government.

One area where the Minister could help immediately is financial assistance to help the council to cover the cost of subsidence arising from the sinkhole discovered under Pinner Wood School, which has cost the council some £5.2 million and has obviously exacerbated its already very difficult financial position. We urgently need fairer funding for local government. It is not good enough for the Government to preside over the managed decline of local services. I know that in Harrow and elsewhere councils are doing some great work, but on a shoestring, and the time has come for the Government to reverse the cuts and give councils, particularly my council, Harrow, the proper levels of investment they need.

--- Later in debate ---

[Rishi Sunak]

With all the will in the world, there is little I can do to help on that particular matter. As the local government Minister, I have no authority or control over the schools budget. The issue he raises relates specifically to a school.

I know that council officials have been in conversation with officials from the Department for Education, but I am obviously not privy to those conversations. I am of course happy to meet him and his deputation, but I think he may be better directing that conversation toward the Department for Education. I know that close to £10 million has been invested in maintained and voluntary-aided schools in Harrow over the last few years, and that the Department for Education is refurbishing or rebuilding about 10 different schools in Harrow through the priority schools rebuilding programme, although not the particular school that he mentions.

Beyond schools, £434,000 has been committed to support Harrow in caring for unaccompanied asylum-seeking children, further helping to strengthen community cohesion. However, strong communities need to be connected. The roads that our constituents travel on daily form a key part of their lives, which is why at the Budget the Chancellor announced that an extra £420 million will be made available for local authorities such as Harrow to fix potholes and carry out other road repairs, ensuring safer and better roads across our communities.

Strong communities also need well-built, affordable homes, which is why, through the Budget, the Government are supporting local authorities such as Harrow to get much-needed homes built, including through the widely welcomed lifting of the housing revenue account borrowing cap. I am pleased that we were able to maintain the new homes bonus baseline for the forthcoming year. Harrow will receive more than £4 million in new homes bonus funding in the forthcoming financial year. I am also pleased that Harrow is in conversations with the Department to receive a housing infrastructure fund grant worth almost £10 million to help with the delivery of more than 600 homes at the Grange Farm site.

Strong communities also need vibrant high streets to bring us together and ensure our towns have a beating heart. The Budget provided a boost for our high streets and a new future high streets fund. I strongly urge the local authority, in conjunction with its MPs, to bid for that fund and see what it can do to drive growth along the high streets in its community.

The hon. Member for Harrow West was right to highlight the funding formula. The current funding formula needs to be updated and replaced with a robust, straightforward approach that involves a strong link between local circumstances and the way that we allocate resources. The latest round of that consultation was issued alongside the provisional settlement last week. I know that Harrow Council has contributed to our consultations in the past, and I will be delighted to hear from it again on the particular pressures that it feels it suffers from and that should be captured within a new formula. I am sure that it will be happy to see that some things it talked about in its previous submission are covered, such as the rapidly changing population dynamics that councils such as Harrow experience on the ground. Those are absolutely things that the new formula should accurately capture, to make sure that it is sustainable not only for this year but for years into the future.

I thank the hon. Member for Harrow West for calling the debate and my hon. Friend the Member for Harrow East for contributing. It is my privilege to have this job and to champion local government here in Westminster. Whether it is driving economic growth, caring for the most vulnerable in our society or building those strong, cohesive communities that we cherish, local authorities in London and across the country do an amazing job.

[Bob Blackman]

I gently remind my hon. Friend that Harrow suffers a particular problem of businesses moving out of the area, and it therefore has a declining income from business rates. What will the Government do to help local authorities such as Harrow that suffer this problem?

[Rishi Sunak]

The business rates retention pilots and the extra incentive to retain more business rates, combined with the infrastructure investment that comes through the housing infrastructure fund and the growth funds, give councils the exact powers they need to drive growth and then rewards them with the retained business rates. I will be delighted to meet my hon. Friend to talk through any other ideas that he has. The high street fund will be an excellent place to start.

I am grateful for the dedication of hon. Members and councils. I will continue to ensure that their voices are heard in this place and that they get the support that they need.

Question put and agreed to.

Local Government Funding Settlement

Bob Blackman Excerpts

Thursday 13th December 2018 Commons Chamber

[James Brokenshire]

No, I certainly do not acknowledge the hon. Gentleman’s point. Core spending power per dwelling in Birmingham is around 10% higher than the average. I draw his attention to the extra £18.2 million that he will see through today’s announcements. We want to see the great city of Birmingham continue to thrive and flourish, which is precisely why we are supporting it.

[Bob Blackman (Harrow East) (Con)]

This year is the last year of the multi-year settlement, so what happens to the 3% of councils that did not sign up to the efficiency savings? How are they treated? More importantly, what are the Secretary of State’s plans for the future of multi-year settlements, so that councils can plan for the future?

[James Brokenshire]

I firmly recognise the benefit of multi-year settlements. We have seen this through councils’ ability to plan and to drive efficiencies and effectiveness. As my Department prepares submissions for next year’s spending review, I will reflect carefully on the matter in order to recognise the ability for councils to plan, while also ensuring that we promote innovation.

Oral Answers to Questions

Bob Blackman Excerpts

Monday 10th December 2018 Commons Chamber

[Mr Speaker]

We are very grateful.

[Bob Blackman (Harrow East) (Con)]

What assessment has my hon. Friend made of local authorities assisting rough sleepers into a home of their own following the Homelessness Reduction Act 2017 coming into law?

[Mrs Wheeler]

I thank my hon. Friend for his question. Unfortunately, I did not hear the very beginning of it, but I think the gist was that the Homelessness Reduction Act 2017 is a very welcome new Act. We are grateful for everybody’s hard work on it earlier this year. We will review it after 24 months, but so far my understanding is that local councils are impressed with how well it is being embedded.

--- Later in debate ---

[The Parliamentary Under-Secretary of State for Housing, Communities and Local Government (Rishi Sunak)]

I would be happy to look further into that for the hon. Lady. On council tax debt collection, the Government’s position is clear: enforcement should be a last resort, and there is strict guidance in place to ensure the proper collection of council tax, done in a proportionate and civil manner.

[Bob Blackman (Harrow East) (Con)]

T3. Following the ban on combustible cladding on new or refurbished buildings on 1 October, it has emerged that over 543 buildings are being built or refurbished with combustible cladding. Worse still, 1,338 buildings have combustible cladding. What is my right hon. Friend doing to ensure that the ban is enforced and that leaseholders do not pay the cost?

[James Brokenshire]

Nothing is more important than making sure that people are safe in their homes. I have made it clear that building owners are responsible for the safety of their buildings and they should protect leaseholders from costs. Local authorities have our full support to take enforcement action to make buildings safe, and it is our priority to ensure that people are safe and secure in their homes.

Private Rented Sector

Bob Blackman Excerpts

Thursday 29th November 2018 Westminster Hall

[Bob Blackman (Harrow East) (Con)]

It is a pleasure to serve under your chairmanship, Mr Rosindell. I refer the House to my entry in the Register of Members’ Financial Interests; I am a vice-president of the Local Government Association and the owner of a small property portfolio.

I rise to do three things: first, to talk about the situation in my own borough of Harrow; secondly, to look at the detailed report that we, as a Committee, produced; and thirdly, to add a few things that I think are needed. It is pleasure to follow my hon. Friend the Member for Hertford and Stortford (Mr Prisk), with his measured approach and his experience of having been the Housing Minister. Equally, it is a pleasure to follow the Chair of the Select Committee, the hon. Member for Sheffield South East (Mr Betts), who I have worked with on this Committee over many years—probably more than we would care to mention.

On the Committee, and certainly since I have served on it, we make sure we proceed by consensus. Individuals may hold views that are not contained in the report, but it comes from the entirety of the Committee and is produced on a cross-party basis. I warmly welcome the Minister to her place and I hope she will tell us why the Government are not taking forward some of the measures that we have recommended—again, on that all-party basis.

In my borough, the private rented sector is growing dramatically. It used to be a tradition, in outer London in particular, that as people became more prosperous and more likely to commute for longer distances, they would sell their homes and move on, then commute into central London for a job. Nowadays, they tend not to sell their homes. They move on and acquire a new home, but they keep their existing home and rent it out. One challenge that has arisen in Harrow is that large numbers of properties—typical suburban, three-bedroom semis—are now rented out to 10, 12 or in some cases 20 people, who are living in them. This brings the consequences of antisocial behaviour and overcrowding, and quite frankly the people living there are being exploited.

Most people in that position come from eastern Europe. I now have 10,000 eastern Europeans living in my constituency. They are warmly welcomed—they are here to work and want to contribute to the economy—but they are being exploited. Rents of a typical three-bedroom property are in the order of £2,000 per month. If you have 20 people sharing that £2,000, then the rent is not too bad. However, the living conditions are absolutely disgraceful. That is, I think, one of the key challenges.

The local authority has responded by setting up a selective licensing scheme in one ward, which was vigorously opposed by the private landlords concerned for the obvious reason that they thought they would not be able to continue to exploit their tenants. The challenge for the Government when legislative changes take place is, as my hon. Friend the Member for Hertford and Stortford mentioned, that although the vast majority of tenants are satisfied with their position, what do we do about the bad, criminal landlords who exploit vulnerable people and make their lives a misery.

[Mr Betts]

We have been on the Committee together for more than eight years, and I think we have all had examples of landlords behaving quite badly, not merely in letting properties but in objecting to licensing schemes. It is not just about the regulatory framework, but about the fact that their names will be known, as well as which properties they own and rent out, and Her Majesty’s Revenue and Customs gets rather interested at that point. The cost of that could actually dwarf anything else they have to do, such as paying fees for the licence.

[Bob Blackman]

I thank the Chair of the Select Committee for that intervention. That is particularly true in the Edgware ward of the London Borough of Harrow, where I asked the council a series of questions about how many registered houses in multiple occupation they had on their books. I was astonished when they told me they had 89 for the borough. I can take Members to roads in Edgware where there are 89 in the road. One problem is the local authority’s resources to deal with these issues, but, more importantly, people just ignore their responsibilities. That has to be dealt with.

I come now to the report itself. I will not deal with the recommendations that the Government have taken on board, because they are fine and we all agree with them. I am delighted that they have been taken on. I worry about some aspects that the Government are not addressing so far. When the Minister replies, will she update us? The Government response was some five months ago and I hope that things have moved on. I will go through the report, looking at the questions that I would like the Minister to answer.

In the Government’s response, the housing health and safety rating system recommendation is partly accepted, but the view is that the Government will review the position in due course. Can the Minister update us on where that review is? The Chair of the Select Committee mentioned the reality of carbon monoxide poisoning and other safety measures in homes. The hon. Member for Dulwich and West Norwood (Helen Hayes), who is no longer in her place, raised a desperate situation in her constituency. The issue is ensuring that tenants’ safety is paramount. Over the time I have served on the Select Committee, we have considered various different aspects of safety, and my concern is that building regulations and safety regulations do not seem to be being updated as they should, both to protect tenants and to point out to landlords their responsibilities. I would like to understand the Government’s position in that area.

Equally, where the Government and Law Commission are reviewing what legislation could be enacted, the Government say they are having discussions with the Law Commission. That is always helpful, but could we be updated with the results? As I have said, if we introduce legislation we must be careful that we do not put off good landlords from renting out their properties and maintaining good order at the same time as squeezing out the criminal behaviours that are clearly unacceptable.

I turn now to section 21 notices; we will have a debate on that subject next Thursday, I think, and I do not want to rehearse the discussions we will have there, because no doubt the Minister will be answering that debate too if it proceeds as expected.

[The Parliamentary Under-Secretary of State for Housing, Communities and Local Government (Mrs Heather Wheeler)]

My Thursdays are your Thursdays.

[Bob Blackman]

That is welcome.

Let me take up the issue, because we made recommendations on this and the Government have not accepted them, but they agree to keep the issue under review. We have a delicate balance to strike, because the sad reality is that if landlords are in a position where they cannot evict bad tenants, there is a serious problem and they will say that it is not worth being a landlord and letting out the properties.

As the author, promoter and sponsor of the Homelessness Reduction Act 2017 on section 21 notices, I know them in infinite detail. They are deemed to be no-fault evictions, and clearly we need to preserve the position whereby a landlord can get their property back, but at the same time, some landlords seem routinely to issue section 21 notices on six-month tenancies as protection for getting the property back at the end. One solution is to have longer tenancies, with protection for the tenant and for the landlord, with the potential for break clauses on both sides. That seems to have gone very quiet in Government thinking, and I hope my hon. Friend the Minister can update us on where we are going with longer tenancies and protection of tenancies.

There seems to be a suggestion from the Government that retaliatory eviction is a relatively rare occurrence. For those people who gave evidence to us having suffered it, it might have been a rare occurrence but it was a life-changing experience and we must condemn it. Landlords have a duty to keep their homes up to a reasonable and safe standard, and if tenants complain that the property is not kept up to that standard, it is quite right that the landlord should then put it right. If the result is that the landlord evicts the person or the tenants, that is an outrage and we need to ensure that action is taken. At the moment there is not enough protection for the tenants. The Chair of the Select Committee mentioned the specialist housing court, which would be warmly welcomed by both landlords and tenants. If we could have an update on the status of the Government review, that would be terribly helpful and informative to the Committee.

I will say two last things before I sit down. First, we made a recommendation on the local housing allowance, particularly regarding studio accommodation. In London, this is becoming a big issue. Properties are subdivided into small units and put out to rent and the tenants are therefore being exploited. There is a case, which we have made in the report, for taking action in this area, and I would welcome the Minister’s taking some action. I accept that this situation is not necessarily true across the country, but in London it is a serious issue that must be addressed.

Secondly, on penalties for bad landlords and the protection of tenants, although I do not normally read The Guardian, it has provided a very helpful brief in its coverage on rogue landlords and what has happened. The sad reality is that if landlords fail the fit and proper person test and are banned, all their tenants should know about it. That just makes sense. To have a position where a landlord can be banned in one borough but carry on renting in others just does not make sense at all. One thing we need to see is urgent action to introduce a position where landlords are banned and action is taken.

I agree that in the most serious cases, a fine just becomes part of doing business, so having the ability to confiscate the property and protect the tenants from the behaviours of rogue or criminal landlords must be the final resort. On that point I will sit down, but I look forward to the Minister’s response and to working with colleagues to improve the position for both tenants and the good landlords in this country.

Oral Answers to Questions

Bob Blackman Excerpts

Monday 5th November 2018 Commons Chamber

[James Brokenshire]

We have taken several steps and put significant pressure on the industry, and that is starting to have an impact as many freeholders take the necessary steps to make buildings safe without passing on the costs to leaseholders, who should not bear them. I am happy to consider the right hon. Gentleman’s specific examples, because we are in direct contact with several different agencies, and indeed with local government about taking enforcement action, to see that work is done.

[Bob Blackman (Harrow East) (Con)]

I thank my right hon. Friend for his answers. I urge the Government to bring in legislation to bar such charges in future, but we would still need to address those who have been unfairly put in this position in the first place. I therefore urge my right hon. Friend to consider not only legislation for the future, but retrospective legislation to address the egregious practices that have taken place.

[James Brokenshire]

As my hon. Friend will know, we are consulting on the implementation of a ban on inappropriate leaseholds on homes, which are the core of what we are discussing. Legislation will come forward once we have seen the responses to our technical consultation, and there will obviously be plenty of opportunity for colleagues to debate the matter further.

Rating (Property in Common Occupation) and Council Tax (Empty Dwellings) Bill

Bob Blackman Excerpts

Tuesday 16th October 2018 Commons Chamber

[Rishi Sunak]

My hon. Friend is absolutely right that empty dwelling management orders exist as a tool for councils to take control of long-term empty properties that cause a social nuisance. I do not have the exact figures to hand, but he is right that those orders are not extensively used. However, they are a measure that local authorities should be aware of. The orders are a tool at local authorities’ disposal and are one of the various measures that they can use to tackle this particular problem. I thank him for raising that option here today.

[Bob Blackman (Harrow East) (Con)]

Does the Minister agree that it is vital that landlords bring properties back into use? They should not be penalised while carrying out genuine work to bring those properties back into use, but equally they should not take an extended period and say that they are doing work when no work is actually going on.

[Rishi Sunak]

I thank my hon. Friend not only for his intervention but for all his work on the Bill, as both an individual and in his role on the Housing, Communities and Local Government Committee. I am grateful for all his comments as we debated the Bill during its earlier stages. He is absolutely right, and the Government published guidance to that end in 2013—when the original premium was introduced—reminding local authorities to take into account the specific reasons for a property being empty. Hon. Members may wish to note that the provision we are discussing will not bring any additional properties within the scope of the premium; only properties that would already have been potentially liable might be affected by the higher premium.

On the flexibility and discretion raised by my hon. Friend, no property covered by an existing statutory council tax exemption can be liable for the empty homes premium. For example, exemptions are already in place for homes that are empty owing to the council tax payer living in armed forces accommodation for job-related purposes, or for annexes that are used as part of a main property. Furthermore, the council tax system already provides specific statutory exemptions for properties left empty for a specific purpose, such as when a person goes into care. On probate, such properties, where left empty, are exempt from council tax for up to six months after the granting of probate or after letters of administration have been signed.

I also say to my hon. Friend that section 13A of the Local Government Finance Act 1992 gives billing authorities a wide power to reduce the council tax that a person or group of people is liable to pay. That can be reduced to such an extent as the billing authority sees fit. The power can be applied to situations pertaining to the status of a dwelling or the category of a person, and can be used in cases of hardship, fire or flooding. Together with the guidance that I will speak about more broadly in a moment, I hope that this reassures all hon. Members that councils and local authorities will have the flexibility and discretion that they need to treat each situation on a case-by-case basis.

Before I turn to the Lords amendment, I will recap some of the statistics on the operation of the current policy to ensure that everyone has the facts to hand as we reach our deliberations. As I said earlier, 90% of billing authorities have applied the empty homes premium, to around 61,000 homes—that we have data for—in the last year. All but three of those councils did so using the maximum 50% rate. Of the remaining 10% of councils that were not applying the premium, more and more are now starting to. We estimate that the empty homes premium generated around £40 million in the last year for local authorities, when we take into account individual local authority collection rates.