Cost of Living: Private rented sector

Chris Stephens Excerpts

Tuesday 18th July 2023 Westminster Hall

[Sir Christopher Chope]

I do not accept that, because I have looked in vain at the impact assessment that accompanies the Renters (Reform) Bill—I looked at the latest iteration a couple of weeks back—and the Regulatory Policy Committee condemned that impact assessment as totally inadequate in dealing with the consequences of the reforms for the supply of housing from the private rented sector. The Government’s own impact assessment does not answer the question as to the quantity and quality of private rented accommodation that would be available were those reforms to be implemented. One can only assume that the Government either do not know the answer to that question or do not wish to disclose it.

As somebody who believes in the market, my instinct is that, if we put pressure on potential suppliers of a product through regulation, the likely consequence is that the potential suppliers will withdraw some of that product from the marketplace. That is exactly what is happening at the moment. One of the figures used by the hon. Member for Stretford and Urmston in introducing the debate was the large increase in section 21 evictions. My understanding—admittedly, it is only anecdotal—is that that is because private landlords now feel that they are going to be squeezed by both a nominally Conservative Government and the prospect of a real socialist Government, both of whom are basically anti-private landlord and are determined

The Renters (Reform) Bill has only been printed and had its First Reading—it has yet to receive a Second Reading, which is a complaint from the Opposition—but I hope the Government withdraw that legislation, because the mere fact that it has been printed in the form of a Bill is driving a large number of people away from renting out their private homes and causing them to bring property back under their control, with a view to selling it. A lot of the property that is available for sale at the moment is property that was formerly rented.

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

May I take the hon. Gentleman back to his analysis—I will be polite and say “analysis”—of section 21 evictions? If there is fear of a Labour Government, can he explain why so many Members of Parliament are having to move out of their London accommodation? Landlords are putting up prices by so much, and when an MP says to the landlord, “Let’s negotiate,” they are immediately served with a section 21 eviction notice. If landlords are doing that to Members of Parliament, surely they can do it to anybody else. That why the legislation needs to be scrapped.

[Sir Christopher Chope]

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

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

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

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

--- Later in debate ---

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

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

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

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

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

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

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

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

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

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

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

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

Living Rent said that a rent freeze would have a

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

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

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

The Scottish Trades Union Congress said that

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

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

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

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

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

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

[Beth Winter]

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

[Chris Stephens]

I absolutely agree with the hon. Member.

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

Oral Answers to Questions

Chris Stephens Excerpts

Monday 10th July 2023 Commons Chamber

[Mr Speaker]

I call the SNP spokesperson.

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

I want to ask the Secretary of State some questions on his role as the Minister for Intergovernmental Relations and drug policy, of which he has said a number of interesting things. He is on record saying this:

“public health measures, which are backed by strong scientific evidence, which follow the lead of the doctors, the clinicians, we should look seriously at them.”

Drug consumption rooms and the decriminalisation of possession of small quantities of drugs have been proved to work throughout the world, and they have now been proposed by the Scottish Government. Does the Secretary of State accept that the outright rejection of that by the UK Government at the weekend—out of hand—undermines the Scottish Government, undermines those campaigners and those who help drug users, and undermines the Union?

[Michael Gove]

No, I do not accept that, but the hon. Gentleman raises a very serious question. I have had the opportunity to discuss with the hon. Member for Glasgow Central (Alison Thewliss) some of the challenges that she faces in her constituency. The hon. Gentleman and I both know that drug deaths in Scotland are unacceptably high, and there is no single answer to that problem, but I believe, as was outlined clearly by politicians from both the Government and the principal Opposition party, that the Scottish Government’s proposals are the wrong proposals at the wrong time.

[Chris Stephens]

I thank the Secretary of State for that answer, but the heads of all 31 UN agencies have called for possession decriminalisation, and more than 30 countries have made changes that have cut deaths and incarceration. There is no reasonable, rational and evidenced cause for the UK Government, or the Labour party, to reject the proposals out of hand. May I ask him seriously, in his role as Minister for Intergovernmental Relations, to be the grown-up on his side of the Chamber, and work and engage with the Scottish Government and drug campaigners on the issue?

[Michael Gove]

As the hon. Gentleman points out, this is a complex, challenging and heartbreaking issue. It is right that the Governments should work together, and with the NHS, law enforcement and others, to deal with this challenge, but I believe that the specific proposals for decriminalisation of possession proposed are not the best way forward.

Building Safety and Social Housing

Chris Stephens Excerpts

Thursday 6th July 2023 Commons Chamber

[Michael Gove]

I absolutely would never do anything to undermine the position of the Building Safety Regulator. Indeed, I have been working with colleagues in the Department for Work and Pensions and the Health and Safety Executive to make sure that we have the right team in place, the right person as regulator and the right powers for the regulator. All the legislation that we are bringing forward—not just the previous building safety legislation, but the Levelling-up and Regeneration Bill—is designed to strengthen the hand of the regulator. I would be delighted to talk to the hon. Lady in greater detail outside this House to provide reassurance.

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

The Secretary of State talks about the remediation of buildings. He knows the interest of a company in Glasgow South West that does great work in removing cladding and so on, but it has come across stumbling blocks with insurance companies and insurance premiums. Could he say a bit about the discussions he has had with the insurance industry to make sure that this work is done?

[Michael Gove]

Yes, the hon. Gentleman makes a very important point. In talking about the shared responsibility that so many have, I have stressed that the Government have a responsibility, as does the construction sector, and insurance companies certainly do. It is the case that insurance companies, unfortunately, are charging premiums that I believe are way above what they should be. That is impeding the capacity of individuals to get on with their lives and it is imposing costs that are unnecessary. The Under-Secretary of State for Levelling Up, Housing and Communities, my hon. Friend the Member for North East Derbyshire (Lee Rowley), who is the Minister responsible for the implementation of the building safety regime, has been talking to the Association of British Insurers, individual insurance companies and insurance brokers to try to make progress. There has not been as much as I would like, but, again, I will update the House in due course, as I know my hon. Friend will as well.

I mentioned developers, and it is the case that developers are taking responsibility for all the necessary work to address life-critical fire safety defects in buildings of over 11 metres high that they either developed or refurbished in England during the 30 years to 5 April 2022. There are more than 1,100 buildings in scope that are unsafe, and the cost will be £2 billion. Again, I am grateful to developers for shouldering that responsibility. Developers must also keep residents informed about the progress of these works. As I know from my own constituency, it is absolutely vital that residents are involved in that process.

--- Later in debate ---

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

Like others, our thoughts and prayers go to the Grenfell community as we remember them in this debate. It is worth remembering that the Grenfell fire killed 72 people due to flammable cladding, and this House remembers the lives that were lost. It is also worth remembering that during the platinum jubilee celebrations, 72 seats were left unfilled at a street party to remind the community of the lives lost. Each place at the table was set with a name card, napkin, plate, cup and flag. Yvette Williams, a Justice4Grenfell campaigner, said:

“Five years on, a toothless public inquiry and millions still trapped in their homes by flammable cladding—and still no justice. There have been no lessons learned and little action taken. As people up and down the country enjoy street parties, as they quite rightly should, we want to let the powers that be know that our community will always remember the 72 who died needlessly here that night.”

A total of 6,247 people were referred to the dedicated NHS Grenfell health and wellbeing service. Of those, 1,476 were children. Dr Sara Northey, who runs therapy for children and young people at the dedicated NHS Grenfell health and wellbeing service, has described the scale of the trauma as “unprecedented”. She said:

“This is an unusual trauma as it affected a whole community and is definitely ongoing. Grief doesn’t just go away. But what is striking is also the strength people have in the relationships here and the connection people have. At the heart of the trauma is a shattering of safety. We have seen a lot of avoidance of things that remind children of fire. A bonfire or candles on a birthday cake can be quite triggering. Some are worried about electronics in the home and need to check things are switched off. Children are being, kind of, hyperaware of safety in a way that most children don’t have to be.”

I hope that Ministers will tell the House that, while it is important that we concentrate on building safety, they are committed to ensuring that these health and wellbeing services will still be there and maintained to help the people of Grenfell. As the Secretary of State rightly said, there should be an annual debate not just to discuss building health and safety, but it should also ensure that the health and wellbeing of that community is maintained.

[Michael Gove]

indicated assent.

[Chris Stephens]

I see that the Secretary of State agrees; I thank him for that.

The Scottish Government are spending every penny of consequential funding they receive on this programme of work, with committed spend of £1.3 million. The Scottish cladding remediation programme is designed to ensure that there is no cost to property owners and residents for the procurement and production of a single building assessment for each building. The Scottish Government first have to carry out comprehensive and technical assessments to understand the extent of the problem. The vast majority of buildings in the initial phase of the Scottish Government’s programme have secured fire engineers, and a new streamlined process for commissioning the assessments will help to identify at-risk buildings more quickly.

The safety of residents and homeowners in Scotland is of the utmost priority as the Scottish Government work to tackle cladding safety issues through our single building assessment, which has been expanded to more than 100 buildings. We will create a register of buildings that will provide assurance to the public following the completion of any necessary remediation works. If experts identify an issue that needs immediate action to safeguard residents, the Scottish Government will take action and expect developers to do likewise on their buildings.

This can be a complex and time-consuming programme. A number of assessments are either at final or pre-final reporting stage, with discussions on remediation under way. I hope that, at the conclusion of the debate, the Minister will update the House about the discussions that Ministers are having with the devolved Administrations. It is about funding and the Barnett consequentials that kick in when the UK Government spend money.

The Scottish Government have strengthened and will continue to strengthen the building standards system in Scotland, with the building standards futures board established to undertake a programme of work to strengthen the system. The Scottish Government have legislated to improve fire safety by banning developers from using combustible cladding on residential and other high-risk buildings above 11 metres. Scotland was the first part of the UK to ban the highest-risk metal composite cladding material from any new building of any height.

Since 2005, new cladding systems on high rise blocks of flats have had either to use non-combustible materials or pass a large-scale fire test. The building standards legislation removes the option of a fire test, completely prohibiting such materials from use on domestic and other high risk buildings such as care homes and hospitals above 11 metres. In October 2019, the Scottish Government strengthened guidance in relation to combustible cladding, means of escape and measures to assist the fire service. The regulations were passed unanimously by the Scottish Parliament to protect lives and property following the tragic Grenfell Tower fire.

I have outlined some of the work being done in Scotland. On behalf of the Scottish National party, I want to emphasise that our thoughts, prayers and love go out to the Grenfell community.

Economic Activity of Public Bodies (Overseas Matters) Bill

Chris Stephens Excerpts

2nd reading
Monday 3rd July 2023 Commons Chamber

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

It is a pleasure to follow the excellent speech of the hon. Member for Rutland and Melton (Alicia Kearns). I also thank the hon. Member for Wigan (Lisa Nandy) for suggesting that tone in this debate is important. I see that the Secretary of State is leaving at this moment in time, but I do not think anybody will miss the irony of his projecting himself as the sole moral arbiter for the whole United Kingdom. Even worse, he seeks to quell the just protests of honourable organisations and individuals who are trying to bring about decent change internationally.

In Scotland, we have a proud history of promoting social justice, human rights and respect for international law on the world stage. As the hon. Member for Brent North (Barry Gardiner) alluded to in his intervention, Scotland can provide a very good example. In 1981, the then Glasgow District Council decided to award Nelson Mandela the freedom of the city—the first city in the world to do so. Five years later, St George’s Place in Glasgow city centre was renamed Nelson Mandela Place. Why was that? It was because the South African consulate was in St George’s Place, and the council wanted to make sure that everybody knew who Nelson Mandela was by making sure his name was on the address of the South African consulate. When Nelson Mandela addressed Glasgow City Chambers in 1993, he said:

“While we were physically denied our freedom in the country of our birth, a city, 6,000 miles away, and as renowned as Glasgow, refused to accept the legitimacy of the apartheid system, and declared us to be free.”

Had this proposed legislation been in place during the 1980s, Glasgow would have likely been legally debarred from taking the actions that it did, or even from suggesting that it might take those actions, because the then Conservative Government did not support sanctions for South Africa. I remember as a young lad seeing country after country boycotting the Commonwealth games in Edinburgh in 1986 as a result of the then UK Government’s actions.

SNP Members will be supporting Labour’s reasoned amendment. However, it is missing one key part: the attacks on the devolved Administrations. Perversely, the democratically elected Parliament and Government of Scotland will be required under the Bill to give legislative assent to its enactment. We will be asked to provide the gag that silences our freedom of expression and that of the people we represent.

As a good global citizen, Scotland is committed to the highest ethical and moral standards in human rights, climate justice, workers’ rights and economic development. The Scottish Government will always fulfil their obligations under international law and agreements. The people of Scotland rightly expect that actions in Scotland should be taken with full consideration of moral and ethical duties to communities around the world, and we will not idly watch that good work being constrained.

[Hywel Williams (Arfon) (PC)]

I entirely agree with my hon. Friend’s points. The Welsh Labour Government have policies on such matters as modern slavery and human rights. Public sector investment and procurement are devolved, yet the Bill’s impact assessment does not consider any specific Welch approaches. Does he agree that the Government should do that before taking any further steps?

[Chris Stephens]

Indeed. There was probably no discussion with the devolved Administrations on the Bill and the impact that it will have on the devolved institutions, so I agree with my hon. Friend. The UK Government claim that the Scottish Government pursue actions that undermine UK foreign policy, but that is simply not the case—it is not true. For many years, the Scottish Government have conducted international engagement which benefits the people of Scotland and aligns with present constitutional arrangements. Scottish Government Ministers are simply embodying the values-based principles of the Scottish electorate, as the Welsh would do with the Welsh electorate.

I listened to the Secretary of State arguing for the Bill, which gave an impression of what the death rattle of a dying Government sounds like. The Bill represents a desperate attempt by the UK Government to salvage something from the wreckage they have created across the fields of international trade, diplomatic relations and human rights. Let us look at those fields in turn.

[Dr Whitford]

Does not the gagging clause in the Bill, which will stifle debate and discussion about policy, fit with what we have seen in the last year or so with the Public Order Act 2023: the seizing by the Executive of almost every power to hold the Government to account, whether from the judiciary, voters, protesters or even MPs, through post-Brexit legislation?

[Chris Stephens]

Let me add trade unions and workers who decide to take strike action. Yes, we know who the Government’s enemies are because they have been legislating against them in the last year since they crashed the economy.

[Nadia Whittome (Nottingham East) (Lab)]

In Nottingham, we have significant numbers of people, including Hongkongers and those from other parts of the world, who have fled from many countries perpetrating human rights abuses. They rightly do not want their councils or universities to be complicit in human rights abuses that their family and friends continue to experience. Does the hon. Member agree that public bodies must have the right to take a principled stance against, for example, the persecution of the people of Hong Kong, the Uyghurs in Xinjiang or political dissidents across China?

[Chris Stephens]

I do agree. I am going to quote an exchange between the hon. Lady and a Minister later in my remarks, so she may want to intervene again. I have Uyghur Muslims as constituents. I know how serious the issues are. I have Kurdish constituents who are very concerned about the oppression of Kurdish people in Turkey and Syria, for example. I will always stand beside those people, but the Bill will prevent public bodies and institutions from taking such steps. That is a real concern.

The Government are leaving themselves open to a new slogan: never mind the probity, feel the width. Their ability to grow trade is now severely constrained, so they seem to be selling off their own principles to the highest bidder. Previous attempts to work with others in making the world a decent place are now to be put aside. Rogue nations are to be tolerated for the sake of business and their transgressions ignored. The Bill—the dog’s breakfast that it is—leaves them open to that charge.

Amnesty International UK is right to say that the Bill will

“make it almost impossible for public bodies to use their procurement and investment policies to incentivise ethical business conduct that is human rights compliant.”

However, perhaps the objective is not surprising. From the UK being an original drafter of the European convention on human rights, I note that some on the Government Benches now wish the UK to leave that. We would have hoped that the Conservative Government might have learned from their disastrous policy of giving succour to the apartheid regime in South Africa. When the world railed against that regime, the then Conservative Government turned a blind eye, even though we already knew the consequences of appeasement from earlier experiences.

We have learned in the last century what happens when Governments do not have a conscience and turn a blind eye to wrongdoing. We have learned that responsibility lies not just at a national level but at a local level—and, yes, even at the level of the individual. Now we are informed that giving expression to that conscience locally will be penalised under the law. It would appear that the only good conscience is a Tory conscience as expressed by a Government Minister at Westminster.

I ask myself: why are the Government pursuing this policy? Does every Government Member want to stifle local democracy? Every society has its share of people who are mainly self-interested, with little concern for those outside their own circle. It would be good to think that that proportion of society has shrunk as we have become more aware of world affairs. But it still seems to be far too substantial, suggesting to niche voters that principles are costly to us and we cannot now afford them. That is a dangerous game. It is much easier to break down society than to build it up; to make people isolationist rather than internationalist. Patching that fragmented society together again would be a monumental task. But there is good news: there are some parts of the United Kingdom where that dystopian dream is not being pursued—quite the opposite, in fact.

We have had helpful support in our position regarding Israel, for example. On Thursday, at that very Dispatch Box, the International Trade Minister told the House that the UK has a clear position on Israeli settlements in the Occupied Palestinian Territories:

“they are illegal under international law, present an obstacle to peace and…a two-state solution.”—[Official Report, 29 June 2023; Vol. 735, c. 408.]

As set out in Foreign, Commonwealth and Development Office guidance on overseas business risks, there are clear risks to UK businesses related to economic and financial activities in the settlements and we do not encourage or offer support to such activity. So the Government’s position seems to be, “Don’t do it. We don’t support it, but we’re not going to allow people to boycott it.” That is a very confusing position for the Government to find themselves in. The Secretary of State suggested that the Bill does not stop boycotts of occupied territories, but actually we need just to read the Bill to see that that is exactly what it proposes.

[Andrew Percy]

Will the hon. Member give way?

[Chris Stephens]

I will in a second.

I want to make it clear that the Scottish Government and the SNP unequivocally condemn and distance themselves from members or affiliates in the BDS movement who advocate a complete boycott of Israel and Israeli people and who suggest that the state of Israel does not even have the right to exist. The Scottish Government are also committed to tackling all incidents of hate crime, working in partnership with a range of organisations, including Police Scotland. It would be a cruel distraction for the Government to equate sympathy and support for oppressed people with antisemitism. The Bill leads to the accusation that the Government think there are good and bad occupations. As others have said, when I have Uyghur Muslim constituents with children in camps, I cannot support and vote for a Bill that would stop organisations from campaigning against or boycotting Chinese goods on the basis of the treatment of Uyghur Muslims. With Kurdish constituents, I cannot support a Bill that would stop me, or organisations or public bodies, from boycotting goods from Turkey or Syria on the basis of the oppression of Kurdish people. I cannot support a Bill that ignores environmental concerns. Friends of the Earth said that the Bill will

“prevent public bodies from divesting from fossil fuel, as well as diverting their money away from inadvertently funding human rights abuses abroad”.

That is what the Bill does. It will make it illegal for public bodies and local authorities to divest from or boycott fossil fuel companies and those with poor track records on protecting environmental standards.

The Scottish National party—and I believe, the Scottish people—will not participate in this diminution of freedom of speech and disregard for the wellbeing of our friends throughout the world. Earlier, I referred to the Bill as the death rattle of a dying Government. Ministers really should withdraw the Bill; it is a complete and utter dog’s breakfast. If they do not, I support the Opposition’s reasoned amendment and the Bill does not deserve to pass Second Reading.

[Several hon. Members rose—]

Co-operatives and Alternative Businesses: Local Authority Support

Chris Stephens Excerpts

Tuesday 20th June 2023 Westminster Hall

[Dame Meg Hillier]

I thank the hon. Gentleman for his kind comments and for that valid point. One of the many advantages of local co-ops is that they and the benefits are owned by the local population, and the profit is redistributed to the very people who helped to generate it. Although I have talked about small-scale co-ops, of course they can be larger; there are many such co-operative businesses up and down the country. I am focusing on how councils can facilitate co-operatives in their own areas, so by definition I am talking about the local.

Mayor Philip Glanville has established, among the elected councillors, a member champion for inclusive business, social enterprise and co-operatives. The role is held by Councillor Sam Pallis, who does an excellent job in promoting these issues. There have been some success stories in Hackney. Hackney Co-operative Developments, which has been established for a long time, is being supported by the council through the provision of properties at sub-market rent, capital investment in those properties—that can be hard for small co-ops—and targeted funding for business support and outreach projects so that that fantastic project can spread its expertise to other organisations in Hackney and help to build the co-op sector. Hackney Co-operative Developments understands the technical and legal aspects of setting up a co-op better than anyone, as do similar organisations in other areas up and down the country, so it is right that the council supports it in that way. That relates to the ask that I will have for the Minister in a moment.

Hackney has also set up a community energy fund. A few years ago, it established Hackney Light and Power, which is the energy services arm of the council, and that local company launched a £300,000 community energy fund last year, which aims to support innovative community-led energy projects that benefit Hackney. That amazing programme ensures that Hackney generates its own energy for local use. That reduces energy costs for many consumers; long may it succeed. We must see locally generated energy for local use as a way to tackle the challenge of climate change.

The first round of funding from that £300,000 community energy fund provided funding for solar panels on the Hackney Empire, our fantastic local theatre. I say “local”—it is nationally renowned, but we are proud to call it our local theatre in Hackney. I should declare, as an interest, that I am a friend of the Hackney Empire—that will hardly surprise Members—and a regular visitor to its fantastic pantomime. The fund also provided solar panels for the Mildmay club in north Hackney, in the constituency of my right hon. Friend the Member for Hackney North and Stoke Newington (Ms Abbott), and Parkwood Primary School. Those panels provide enough electricity for one third of those properties’ energy use, equivalent to 35 homes. If the first round of funding can deliver that, it has real potential. The Minister is very welcome to visit if that would be helpful.

We need a real understanding in Government about what co-ops can deliver. Many years ago, when Labour was last in government—it does seem like a long time ago—I was looking to mutualise the then Forensic Science Service, and I asked for guidance from the Government. I was a Minister in the Home Office, which was, perhaps understandably, not an expert on co-operatives and mutual ownership, so it commissioned advice elsewhere in Whitehall. To my horror, what landed on my desk was a document about John Lewis. I feel no horror about John Lewis, I have to say, but its model of employee ownership was not what we were looking at. It was almost as if there was no real understanding of what mutualism was. Unfortunately, I was unable to get that mutual off the ground for various reasons—many co-ops face a challenge with capital funding—but that drove home to me the fact that we need a central hub in Government that can point people to advice about co-operatives, and I have been banging that drum ever since, in all these years in opposition.

The Treasury, the Department for Levelling Up, Housing and Communities, the Department for Business and Trade, and other Departments such as the Department for Environment, Food and Rural Affairs, would benefit from that understanding. We need a hub that is open to Departments so that when advice on alternative models is needed, co-ops are considered. The Minister making the decision must have full knowledge of the possibilities and possible challenges, and co-ops must be considered as part of the solution.

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

The hon. Lady is making a very important point about what central Government can do. Does she agree that that applies to measures to address food poverty? Co-operatives right across these isles are playing a vital role in ensuring people have affordable food during the cost-of-living crisis.

[Dame Meg Hillier]

Absolutely. As I have said, co-operatives invest back into their own communities, especially the small local co-ops—not every business does that. It is really important that we recognise what the benefits are. Like other hon. Members, I have community shops in my constituency as well as food banks, in which people can buy food and get double the value of what they paid. The fantastic community shop on the Kingsmead estate is staffed by local young people who volunteer their time. There is dignity there for the people who come into the shop; they pay for their shopping but get much more than they paid for. They can get fresh fruit and vegetables as well as other products. Community shops are an important and valuable resource.

As well as a central unit, it is important that the Government ensures that procurement opportunities are open and available to alternative businesses, so that we do not just set up a central procurement model that allows the big beasts—the big strategic suppliers of Government—to bid, without taking into account options for smaller businesses, including co-operatives, to bid. That may be beyond the Minister’s personal gift today, but I am sure she can take it back to relevant Ministers. It is important that we consider what co-operatives can bring to the table.

There is a requirement to have social value in a number of contracts now, but we cannot have co-ops as an added-on extra to a big contract from one of the big strategic suppliers, there to salve Government or community conscience. In that respect, if they are involved they need to be involved properly but, better still, they can actually bid. Greenwich Leisure Ltd was a co-operative social enterprise, but it is now running leisure centres across London and elsewhere as Better Ltd. That is a mutual that is delivering for local people, and it is now big enough potentially to bid for bigger contracts. From small co-ops these larger opportunities grow.

There may be work that needs to be done to provide additional support to those businesses, such as open roundtables, discussions or opportunities for drop-ins for those businesses to come and talk to Government about what they need to do to meet Government procurement requirements. I have highlighted some of the regional and local government support that goes on. If we look at regions—this is very much in the Minister’s bag—if co-operative development is a central strand of economic development outcomes for combined local authorities, then there will be more than what has been happening in Greater Manchester and elsewhere. It is something that could be used to drive up economic growth in the country. The mutual route is an entry-level way for a lot of people to get into business opportunities.

A regional co-operative development agency, to model, co-ordinate and support the co-op sector, would be an excellent initiative. It would not be massively resource intensive; in fact, if the Minister took one of the big, regional local authorities—for example, Greater Manchester —and boosted it, that could be the hub. It does not need to be in Whitehall; I am all for having those provisions outside of London. Although I am a London MP, I think it is important that we support those sectors across different parts of the country. I really want to see a central Government unit set up to support co-ops.

I hope the Minister will take those points on board. I know that she cannot answer them all. Co-operatives cover every sector of the economy and every part of Whitehall’s responsibilities. I know that she is a champion within Whitehall for local government, so I hope that she will pass on these thoughts and comments to her fellow Ministers.

--- Later in debate ---

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

It is a pleasure to see you in the Chair, Mr Dowd. I commend the hon. Member for Hackney South and Shoreditch (Dame Meg Hillier) for leading this debate with an excellent speech. I commend the speeches of my good friends, the hon. Members for Neath (Christina Rees) and for Cynon Valley (Beth Winter).

I completely agree with the hon. Member for Cynon Valley: the ongoing cost of living crisis has clearly demonstrated the inherent dangers of communities being reliant on companies motivated by profit for essentials like food and housing. It is vital that co-operatives and social enterprise organisations, which prioritise supporting communities, receive adequate funding, not just from local authorities and devolved Administrations, but central Government, too.

I listened intently to the colleagues who provided a bit of history on co-operatives, which have existed for centuries. The co-operative movement predates the British Labour party. In Govan in Glasgow South West, in 1777, the Govan Victualling Society became Scotland’s second co-operative—it was pipped to first place by the village of Fenwick. The book on co-operatives describes Govan in 1777 as a pretty village on the banks of the Clyde just outside Glasgow. Of course, some of the people of Govan still deprecate the decision of 1912 to bring Govan into the city of Glasgow for local authority purposes. I am not here to describe that part of Govan’s history, but to demonstrate that we can learn lessons from the past. The memory of that society founded in 1777 lives on today in my constituency.

I am privileged to be the chair of Good Food Scotland. That organisation, along with a number of others, assisted the great organisation Govan Home and Education Link Project—Govan HELP—which transitioned during the covid pandemic away from emergency food parcels to become a co-operative pantry. The work of Good Food Scotland is thriving, with the help of both the Scottish Government and Glasgow City Council. We now have six, and rising, larders run by Good Food Scotland, with a membership so far of 1,500, which is also rising.

How vital is that service? The saving for a weekly shop using one of these Good Food larders is on average £20 a week, but we had an example just this week from the Linthouse Larder. A couple who go to a regular supermarket calculated their weekly shop at £80; using the larder, their weekly shopping is now £30. We not only need to promote the great work of co-operatives, we also need to look at supermarkets’ excess profits, and we should be debating whether companies that are making excess profits should perhaps be contributing a bit more in the taxation system.

The work we are doing on eliminating food poverty backs the principles of my private Member’s Bill, the Food Poverty Strategy Bill, in which I ask the Government to produce a food poverty strategy to eliminate the need for food banks by the year 2030. If Joe Biden’s America can look at producing a food poverty strategy to eliminate food banks in America by 2030, we can learn lessons in this nation state and do that as well.

Co-operatives are business organisations that are owned and controlled by members to meet their shared needs. Members can be customers, employees, residents or suppliers, and they have a say in how the co-operative is run. In 2020, just 1% of UK businesses were co-ops, but more co-ops are opening in response to the ongoing cost of living crisis, and a vital job they are doing, too. In January 2022, Cooperation Town had six co-ops in its network, and that has now more than tripled to 21.

Co-operatives provide a vital service to those struggling through the crisis. The soaring food prices in supermarkets are a clear example of why we need organisations that prioritise fairness and support local communities. This cost of greed crisis is a stark reminder of the danger of companies that sell essential supplies prioritising profit margins above all else.

[Christina Rees]

The hon. Gentleman really is a friend of the workers. What I find so inspiring about this debate—I am sure he will agree—is that Wales, Scotland and England have come together to show the value of co-operation and the amazing impact that co-operatives have across the UK.

[Chris Stephens]

The hon. Lady, too, is a friend of the workers. In fact, I once said that to her when she was in your very spot, Mr Dowd, in a debate on workers’ rights. She is correct that the co-operative movement, which is doing a vital job, needs to grow in this country.

I would argue that credit unions are based on the co-operative model, and they too are playing a vital role in helping people with their finances. They help people to save and take out affordable loans. The credit union movement, which is doing great work, should be congratulated. The less I say about some of the bigger banks, the better, because I would probably veer into using unparliamentary language, and I am sure you would not allow me to do such a thing, Mr Dowd.

According to the House of Commons Library, in 2021-22 4.7 million people, or 7% of the UK population, were in food poverty, including 12% of children. In 2022-23, the Trussell Trust supplied the highest recorded number of three-day emergency food parcels. It is hardly surprising that the number of co-operatives in the UK is growing to meet the challenge of soaring levels of food poverty.

FareShare, the largest distributor of charitable and surplus food in Britain, supplies about 9,500 groups, including food banks, co-ops, community cafés and school clubs, but it currently has a waiting list of 1,500 organisations. That shows the challenge of dealing with the cost-of-living crisis. Its head of marketing noted:

“We believe this is just the tip of the iceberg for the number of charities and community groups needing more support… We do not have enough food to meet this soaring demand, so we’re asking the government to provide us with £25m to help us unlock an additional 42,500 tonnes of surplus food, the equivalent of 100m meals, to the people worst hit by the cost of living crisis.”

That shows the very real challenge facing citizens across these islands. The idea that the growing demand for affordable food is an indictment of the lack of action in providing adequate support through the cost of living crisis is echoed by other stakeholders.

Co-ops have the potential to offer a real, sustainable solution to the ongoing housing crisis. It is not just in the context of essentials like food that we are seeing companies take advantage of the ongoing crisis to disguise hiking their prices; increasingly, landlords are also taking advantage of the cost of living crisis to charge exorbitant prices for accommodation. Although the Scottish Government have taken decisive action to support people through the housing crisis by introducing a rent freeze and a moratorium on evictions, I am afraid that the UK Government have taken no action to protect people from the crisis. As with food prices, soaring housing costs do not impact everyone equally.

Chloe Field, the National Union of Students’ vice-president for higher education, has said that the “unprecedented” housing shortage is

“jeopardising students’ university experience and forcing them to make difficult decisions.”

She also noted:

“Without urgent action to increase the amount of affordable housing, it is inevitable that both dropouts and student homelessness will increase.”

Those on low incomes are paying a hefty price for the lack of action to tackle our housing crisis. One charity has warned that student housing is reaching a “crisis point” not seen since the 1970s. As a result, housing co-operatives are becoming increasingly popular, particularly among students, who have set up student co-operative homes. The Student Co-op Homes organisation notes that

“We know from elsewhere in the world this model works and is replicable at scale...There are now four such co-ops in the UK (housing over 130 students) in Birmingham, Edinburgh, Sheffield and Brighton, plus active groups looking to secure property in Belfast, Bristol, Glasgow, Manchester, and Nottingham. Further enquiries are coming in every month.”

Such co-op homes are a solution for people who have been priced out of buying a home in their local communities.

I hope that when the Minister responds to the debate, we will hear about what the Government are doing to help these housing co-operatives ensure that there is affordable housing, about how we are very much having to deal with food poverty, whether or not the Government will support my private Member’s Bill, what action the Government are taking to address food poverty, and about the support that they will give food co-operatives.

Oral Answers to Questions

Chris Stephens Excerpts

Monday 5th June 2023 Commons Chamber

[Mr Speaker]

I call the SNP spokesperson.

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

Let us quote from the 2019 Conservative party manifesto—in this job, reading fiction is a necessary evil. It says:

“We will crack down on the waste and carelessness that destroys our natural environment and kills marine life…and introduce a deposit return scheme to incentivise people to recycle plastic and glass.”

The Conservatives even put it in bold to show how serious they were. Other than a decision to oppose and undermine devolved Parliaments and Governments, what has changed from the manifesto, or are the UK Government simply bottling it?

[Michael Gove]

I am tempted to say that the SNP should can it on this question, because the businesses with which the Scottish Government have been interacting have been uniform, loud and clear in their determination to ensure that the scheme works interoperably across the whole United Kingdom. We have been very clear that an exclusion can be granted, but only if the Scottish Government work to ensure a scheme that works for all the citizens of the UK and all the businesses of Scotland.

[Chris Stephens]

The First Minister of Wales has now been contacted by the UK Government to make changes to the Welsh DRS scheme to remove glass, which reneges on what was previously agreed in the UK Government’s consultation with the Northern Ireland Executive. The Welsh First Minister’s own words are:

“The English Government is the outlier here.”

Surely, instead of walking on broken glass, they could simply recycle it?

[Michael Gove]

I am grateful to the hon. Gentleman for that wonderful reference to the Eurythmics classic. We are both Annie Lennox fans, whatever else may divide us.

The Scottish Government have singularly failed to carry Scottish business, Scottish public opinion, Scottish consumers and even their own MSPs with them. We stand ready to help—to rescue the Scottish Government from their own folly—but that relies on the Scottish Government doing something that they have been singularly reluctant to do: to take a small slice of humble pie and acknowledge that in this area, they have got things wrong.

Future of Social Housing

Chris Stephens Excerpts

Wednesday 19th April 2023 Westminster Hall

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

It is a pleasure to see you in the Chair, Mr Paisley. I noted that your friend, the hon. Member for Strangford (Jim Shannon), exercised self-discipline, which is not always the case.

[Ian Paisley (in the Chair)]

It is because I am in the Chair.

[Chris Stephens]

I noticed your strict chairing, Mr Paisley, but it is a pleasure to serve under your chairmanship.

I thank my good friend, the hon. Member for Weaver Vale (Mike Amesbury), for opening the debate. He said a number of things that resonated with me; in fact, I got flashbacks when he talked about the challenges in the private rented sector. To this day, I remember the exchange I had with the landlord associations in the Work and Pensions Committee. They told me there was no such thing as “No DSS” and no adverts put out that said it, and then I managed to find one that said, “No DSS. Small dogs considered.” I am still waiting on an answer to the vital question in that exchange: did the small dog have to provide proof of income to get a property? Colleagues raising these types of debates, and the work of the Select Committee system, ensured that that particular policy was put in the bin.

The hon. Gentleman talked at great length about the very real need for social housing. I will touch on that, but not only is there a need for social housing; we need to acknowledge the support provided by social housing providers to their tenants on a daily basis. They must provide those wraparound services because of the effects of Government policy and a broken social security system, such as the challenges people face getting pension credit or disability benefit, or getting deductions at the very start of a universal credit claim, and all the other problems that social housing providers have to support their tenants with.

A number of colleagues have talked at length about the level of rents. With that comes food price inflation—currently at 18.2%. I thank the Linthouse housing association for providing the Linthouse larder, along with Good Food Scotland and Feeding Britain; Southside housing association for opening the Cardonald larder; and the Wheatley Group, which has opened the Threehills larder in Glasgow South West. These Glasgow housing associations have a vision of ensuring that there is affordable food for their tenants right across the great city of Glasgow. What is the benefit of that? It has been calculated that someone who uses an affordable larder saves £20 a week on their weekly shop. That goes a long way to help tenants to not only afford their rent, but buy other things, and it helps them with this Tory-made cost of living crisis.

In Scotland, the Scottish Government are leading the way in the delivery of affordable housing across the UK. They have delivered 115,558 affordable homes since 2007, over 81,000 of which were for social rents; that includes 20,520 council homes. The Scottish Government are working intensively with social landlords to develop an agreement on a below-inflation rent increase for the next financial year.

The Scottish Government are also committed to tackling disrepair in housing, which many colleagues have talked about, by driving a culture in which good maintenance is a high priority. Social landlords in Scotland are already required by law to meet the tolerable standard, which forms part of the Scottish housing quality standard. That requires housing to be substantially free from rising or penetrating damp. Compliance is monitored annually by the Scottish housing regulator.

One of the challenges we face in Glasgow South West is that housing provision for asylum seekers does not often meet the Scottish housing quality standard. The Home Office has argued that there is no need for asylum accommodation to meet the Scottish housing quality standard. I must say, I find that a disgrace, but I am sure Glasgow is not the only asylum dispersal area where we find that housing standards for those seeking sanctuary in the UK do not meet basic standards.

[Andy Slaughter]

The hon. Gentleman is making a very good speech. Understandably, most of this debate has been about general needs housing, but there is also social housing, asylum seeker and refugee housing and housing for Roma Gypsies and travellers. These are especially neglected groups, and the Government have an appalling record on each of them.

[Chris Stephens]

I agree that there is an appalling record here, and I am sure the hon. Gentleman agrees with me that it is the social housing providers that have allowed their homes and accommodation to be let out to the Home Office to provide accommodation, but far too much of it is being let out to the private sector. I hope to work with him in holding the Government to account on these issues.

It is important that the Scottish Government are committed to enabling disabled people to live independently in their own home where possible. The Scottish Government want disabled people in Scotland to have choice, dignity and freedom to access suitable homes and to enable them to participate as full and equal citizens. The Scottish Government have flexible grant funding arrangements, ensuring that specialist housing provision identified by local authorities is a priority, so that disabled people can be supported. The Scottish accessible homes standard will futureproof new homes, building in accessibility and adaptability from the start, to ensure that older and disabled people have an increased range of housing options and to reduce the need to make costly changes to people’s homes as their needs change.

It is also important that steps are taken to strengthen rights for tenants and to prevent homelessness. Tackling homelessness and ending rough sleeping is a priority for the Scottish Government. On top of the funding provided through the local government settlement, the Scottish Government are providing a total of £100 million funding from their multi-year Ending Homelessness Together fund to transform the homelessness support system. I hope that the UK Government will look closely at the situation of people with no recourse to public funds. Too many people with no recourse to public funds are at risk of becoming homeless or sleeping rough. I hope that the Government look again at this issue, because the clear view of the Scottish National party is that nobody should be at risk of homelessness or destitution because of their immigration status.

As other colleagues have already said, the UK Government should—indeed, must—take urgent action to support struggling households by increasing the local housing allowance rates and scrapping poverty-inducing Tory policies; no devolved Administration should have to mitigate those policies, but that is what they have to do.

I look forward to hearing the Minister’s response and I thank hon. Members for participating in this debate.

Oral Answers to Questions

Chris Stephens Excerpts

Monday 27th March 2023 Commons Chamber

[Mr Speaker]

I call the SNP spokesperson.

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

May I add to the Secretary of State’s congratulations to Humza Yousaf, who shares many constituents with myself? It is a great day for Glasgow Pollok and Glasgow South West. May I ask the Secretary of State some questions on intergovernmental relations? A third tranche of levelling-up funding is yet to be distributed, £90 million of which should go to Scotland. Rather than the botched and broken system, seen in the last month or so, of funding distribution from this place, is it not time to devolve the funding to devolved Administrations to enable its fair and efficient use?

[Michael Gove]

I welcome the desire of the hon. Gentleman, and indeed the Scottish Government, to work with us on levelling up. I hope that that means there will be a legislative consent motion passed for our Levelling-up and Regeneration Bill. We will work with the Scottish Government to ensure that funding is spent as effectively as possible, but it is UK Government money that supplements the block grant, over which the Scottish Government have total control.

[Chris Stephens]

Before the spring Budget, the Deputy First Minister, John Swinney, sent a letter to the Chancellor raising several concerns, all of which were ignored. What does it say about the state of intergovernmental relations when the UK Government refuse to consider even a single concern raised by devolved Administrations at Budget time?

[Michael Gove]

We not only consider, but meet regularly with our colleagues across the devolved Administrations. Last year, we had over 270 intergovernmental ministerial meetings, bringing together colleagues. Of course, from time to time, given our respective positions, we may disagree, but there have been a number of significant successes where we have agreed, not least the delivery of two green freeports in Scotland—an example of both Governments working together in the interests of the whole United Kingdom.

Building Safety

Chris Stephens Excerpts

Tuesday 14th March 2023 Commons Chamber

[Madam Deputy Speaker (Dame Rosie Winterton)]

I call the SNP spokesperson.

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

I thank the Secretary of State for advance sight of his statement. I have a couple of quick questions.

On the developers who have not signed, the Secretary of State is obviously talking about the situation in England. Does he intend to share that information with the devolved Administrations? Those companies may have interests in devolved areas.

What happens if a non-compliant building has defects that extend beyond fire performance matters? Further defects are often discovered only after the opening works have commenced and cladding has been removed—I am thinking particularly of acoustic and thermal non-compliance. Could the Secretary of State tell us which independent bodies will manage the work to identify such defects, and how will developers be held to account for them?

Finally, what is the Secretary of State’s plan when owners and/or developers of non-compliant buildings cannot be traced?

[Michael Gove]

We will certainly share information with the devolved Administrations. As I mentioned briefly, we want to work with the Welsh Government, and indeed with the Scottish Government, to ensure that everyone is in a safe building and that businesses that are not operating in accordance with their responsibilities cannot wriggle out of their responsibilities. I look forward to working with the new First Minister—whoever she is—in due course to achieve progress.

On non-compliant buildings, the hon. Gentleman is certainly right that, as we replace cladding, new faults are sometimes identified. Developers have a responsibility to deal with those if they were the original responsible actor. That brings me to his third question. Where it is not a developer who takes responsibility but a freeholder, our recovery strategy unit is working to identify all the freeholders responsible. It is only in the very last instance that leaseholders may be liable for costs, and even then, they are firmly capped under legislation that this House passed.

Ukrainian Refugees: Homelessness

Chris Stephens Excerpts

Tuesday 14th March 2023 Commons Chamber

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

I congratulate the hon. Member for Harrow East (Bob Blackman) on leading the debate and the important and pertinent points he made. I want to talk first about the situation in Scotland and then the cost of living crisis and some of the other issues that he highlighted.

One year on from Putin’s illegal invasion, the message of the SNP to Ukrainian arrivals remains crystal clear: Scotland is their home for as long as they need it to be. Since the Russian invasion of Ukraine last February, the United Nations High Commissioner for Refugees has recorded over 8 million refugees from Ukraine across Europe. That is around 20% of the Ukrainian population. From the outset of the crisis, Scotland has been ready to help. As the First Minister, Nicola Sturgeon, said at the time,

“Let us let people in and do the paperwork afterwards.”—[Scottish Parliament Official Report, 8 March 2022; c. 11.]

[Mr Alistair Carmichael (Orkney and Shetland) (LD)]

The hon. Gentleman is right that we had the super sponsor scheme in Scotland, which everybody thought was a great initiative, but did it not fall foul of the point that the hon. Member for Harrow East made—namely, that we thought the problem was over when we got people to Scotland? We did not see it as a long-term exercise, and as a consequence, we have had almost 2,500 people living on cruise ships, which the British Red Cross rightly says is completely inappropriate for their needs. We are going to be dealing with these situations many times in the future. We must learn from the mistakes we have made this time and understand that, when the refugees arrive here, that is the beginning of the story, not the end.

[Chris Stephens]

I have great sympathy with that. One cruise ship is currently based in my constituency, at least until the end of the month, and I am going to touch on some of those issues. A lot of people thought that the situation would end quickly, and it has not. Governments across the board and all of us as elected Members should learn from things as they develop, so I thank the right hon. Gentleman for making that point.

The super sponsor scheme has been overwhelmingly popular, with local authorities, the third sector and local communities all working in partnership. As a result, the last 12 months have seen nearly 23,000 people from Ukraine arriving to safety in Scotland, with over 18,900 of those arriving through the super sponsor scheme. That represents around 20.4% of all UK arrivals. The Scottish Government are supporting the scheme with over £70 million allocated for the Ukrainian resettlement programme for 2023-24, to ensure that communities continue to receive help to rebuild lives.

The right hon. Gentleman mentioned the cruise ships—I have visited one to help people who became constituents. As I said in the Westminster Hall debate last week, and I would be interested to hear from the hon. Member for Harrow East on this, one big concern is that those people are waiting months—far too long, in my view—for their biometric residence permits. I hope the Minister will once again take that issue up with the Home Office, because I am still dealing with it weekly with Ukrainian refugees who cannot go on to employment. The hon. Member for Harrow East and other Members across the Chamber are indicating that that remains a problem, so I hope the Minister will take it up on behalf of us all.

Support is being provided, with the Department for Work and Pensions, the education department, the council and the health and social care partnership all helping people based on the cruise ship in Govan as best they can, but the focus needs to be on matching them with suitable long-term accommodation. In September, the Scottish Government introduced the Ukraine longer-term resettlement fund, with up to £50 million available to bring council and empty properties into use and increase housing supply. We need to have a discussion on housing policy across the board, but with a lot of homelessness among Ukrainian refugees and empty properties, something should be done.

[Florence Eshalomi]

The hon. Member is making a powerful speech on this issue. One issue highlighted in the evidence session where we heard from a number of women, as the hon. Member for Harrow East (Bob Blackman) mentioned, was housing, and especially the cost of housing in London. Can the Government learn anything from what the hon. Member for Glasgow South West (Chris Stephens) has outlined that the Scottish Government are doing in bringing empty properties back into use? My frustration is that we know there are many empty properties that a number of councils could bring back into use, but their funding has been cut drastically for the past 13 years.

[Chris Stephens]

I will come on to the UK Government’s support in that regard, but we should be encouraging local authorities and the Government to look at empty properties. Going past an estate agency in London, I thought I was looking at a premiership transfer fee, not a property price. That is a big problem in London. For those of us who are not London MPs and have to try to find accommodation here, it can be very difficult. The case that there is a specific issue in London has been well made in the debate.

I want to develop the point—made by the hon. Member for Harrow East—that the hostile environment has made it difficult for Ukrainian refugees to move into longer-term rented accommodation. The Immigration Act 2014 introduced a right to rent scheme that obliged landlords to carry out immigration checks on their prospective tenants, but that legislation was found to have a discriminatory impact, making landlords less likely to rent their properties to people from minority groups. As the hon. Member said, there are landlords who are refusing to take Ukrainian refugees. That is another issue that must be looked at.

[Alex Sobel (Leeds North West) (Lab/Co-op)]

The hon. Gentleman is absolutely right to point out the issues with the right to rent scheme. There are some additional barriers for Ukrainians—we like to call them temporarily displaced people, because we are hoping they will go back after the war, but the issues of guarantors and deposits are really big ones to overcome. There is a whole range of issues that the Home Office and DLUHC need to look at in order to ensure those people can get into housing.

[Chris Stephens]

The hon. Gentleman makes an excellent point, and again, I hope the Minister will answer those questions. The structure of the UK rental market places power in the hands of landlords, and it undermines any rights that tenants may be afforded under the law.

I turn to the cost of living crisis, which was another point well made by the hon. Member for Harrow East. The last year has placed unprecedented financial pressure on households, with the cost of living crisis playing havoc with people’s finances. Many hosts who opened their doors to Ukrainian arrivals last March could not have fully appreciated how bad the crisis would become, with inflation at 10.5% in December last year. From January, the UK Government support available to local councils was cut from £10,500 to £5,900 for each arrival. That seems to be a short-sighted decision. To develop further the point from the right hon. Member for Orkney and Shetland, that decision was taken without any consultation with the devolved Administrations, and I hope the Minister will be able to respond on that.

Councils should receive proper funding to provide employment and language support for Ukrainians, which research has shown is crucial. As the hon. Member for Birkenhead (Mick Whitley) said, the Local Government Association continues to warn of the growing number of Ukrainians presenting as homeless to councils, particularly the significant rise in those who have arrived under the Homes for Ukraine scheme. Data released in February shows that 4,295 Ukrainian households have presented themselves to councils as homeless, which is a 40% increase since November 2022.

The Government cannot simply pass the buck to local authorities. They must ensure sustained funding so that no one who has volunteered to take part in the scheme has to stop. Finally, the uplift in the thank-you payment from £350 to £500 was welcome. However, I hope that the Government will listen to the concerns of the British Red Cross, which says that the increase could come too late and will not always be enough. I look forward to hearing from other Members in this debate.

--- Later in debate ---

[Felicity Buchan]

I will go on to explain exactly what the Government are doing, but clearly the scheme is evolving. We have already changed it to increase the thank-you payments and to open it up to unaccompanied minors. We are always happy to take on board feedback and to refine it, but I will come on to explain exactly what the Government are doing.

We are doing so much in Ukraine, but we are also doing much here in the UK. This scheme, which is powered entirely by the generosity of the British public, has seen more than 117,000 people arrive in the UK since its launch a year ago. If we include the Ukraine family scheme, we have now helped to find more than 166,000 people a safe and secure home. Those numbers are enormous, and we should never desensitise ourselves to just how many people we have given a new home, helped to start a new life, and offered optimism for life after the conflict. Each of those 166,000 people is somebody removed from the immediate danger of that terrible conflict.

A number of Members have mentioned Government money, so let me explain exactly what the Government are doing. As a Government, we have been determined to reciprocate the generosity of the hosts who have come forward with offers of help. To that end, we have committed to provide £1.1 billion to councils through tariff funding and thank-you payments for arrivals in their area, to support guests and sponsors alike. I thank local authorities for the excellent job they have been doing. By way of recognising the hugely generous support of sponsors in the Homes for Ukraine scheme, we have upped the thank-you payments—the hon. Member for Glasgow South West (Chris Stephens) alluded to that. Those thank-you payments are now £500 a month, once guests have been in the country for over a year. The scheme has also been extended from 12 months to two years. Our No. 1 priority throughout has been to offer stable homes to Ukrainians seeking sanctuary on UK soil. I feel a tremendous sense of pride that we have offered Ukrainians a temporary home, and huge pride in the thousands of people in this country who have taken in a guest.

[Chris Stephens]

The British Red Cross had some criticisms about the qualifications for the thank-you payments. Will the Minister remind the House of the eligibility requirements to qualify for those thank-you payments, and say whether the Government are considering changing them?

[Felicity Buchan]

To be eligible for the thank-you payments, someone needs to be a sponsor under the Homes for Ukraine scheme. For the uptick in the thank-you payment, they need to be hosting a Ukrainian who has been in the country for more than 12 months, although they need not have been with that person for more than 12 months.

This debate is about homelessness, so I want to focus in on the numbers. There are cases where relationships between hosts and guests have broken down, but that is not unique to the United Kingdom; such issues exist in many countries across Europe. The Government have tried, wherever possible, to make sure that those who experience that kind of unavoidable scenario have been protected by a safety net. As Members will know, when a sponsorship can no longer continue, councils will support Ukrainians to find new accommodation. Our data shows that by 24 February this year, 2,910 Ukrainian households under the Homes for Ukraine scheme had been owed a homelessness duty by their local authority in England. That number is 4,630 for all Ukrainian arrivals. To put that in context, we have seen more than 166,000 Ukrainian arrivals, so that is a very small percentage. I would also like to clarify that a homelessness duty means a local authority has a duty to prevent or relieve homelessness, so in many cases local authorities will be preventing homelessness before it occurs. Indeed, 2,085 of the approximately 4,600 are recorded as having been prevented or relieved.

I want to come back to temporary accommodation. The latest number is 660 Ukrainian households in temporary accommodation. Again, we do not want Ukrainian households to be in temporary accommodation, but they are in accommodation and it is a small percentage of the overall number of arrivals.