Housing, Communities and Local Government

Christopher Pincher Excerpts

Thursday 26th November 2020 Ministerial Corrections

The following is an extract from the statement on leaseholders and cladding on 24 November 2020.

[Christopher Pincher]

He also refers to leasehold reform. A leasehold reform White Paper will be forthcoming. Perhaps we may, at that time, be able to debate the advantages and disadvantages of the Scottish system and see where we are able to learn from them and possibly they are able to learn from us.

[Official Report, 24 November 2020, Vol. 684, c. 696.]

Letter of correction from the Minister for Housing, the right hon. Member for Tamworth (Christopher Pincher).

An error has been identified in the response I gave to the hon. Member for Glasgow East (David Linden).

The correct response should have been:

[Christopher Pincher]

He also refers to leasehold reform. Leasehold reform legislation will be forthcoming. Perhaps we may, at that time, be able to debate the advantages and disadvantages of the Scottish system and see where we are able to learn from them and possibly they are able to learn from us.

Leaseholders and Cladding

The following is an extract from the statement on leaseholders and cladding on 24 November 2020.

[Christopher Pincher]

The leasehold system and its reform will form part of a Government White Paper and separate debates in this Chamber, and I am sure that the hon. Lady will play her part in those.

[Official Report, 24 November 2020, Vol. 684, c. 702.]

Letter of correction from the Minister for Housing, the right hon. Member for Tamworth (Christopher Pincher).

An error has been identified in the response I gave to the hon. Member for Newcastle upon Tyne Central (Chi Onwurah).

The correct response should have been:

[Christopher Pincher]

The leasehold system and its reform will form part of separate Government legislation and separate debates in this Chamber, and I am sure that the hon. Lady will play her part in those.

Draft Business and Planning Act 2020 (London Spatial Development Strategy) (Coronavirus) (Amendment) Regulations 2020

Christopher Pincher Excerpts

Tuesday 24th November 2020 General Committees

[The Chair]

Before we begin, I would like to remind Members about the social distancing regulations; spaces available are already clearly marked and unmarked spaces must not be occupied. The usual convention of a Government side and an Opposition side is waived on this occasion, so Members may sit anywhere. Hansard colleagues would be grateful for any speaking notes to be sent to [e-mail].

[The Minister for Housing (Christopher Pincher)]

I beg to move,

That the Committee has considered the draft Business and Planning Act 2020 (London Spatial Development Strategy) (Coronavirus) (Amendment) Regulations 2020.

It is a pleasure to serve under your chairmanship, Mr Hollobone. Although, as you say, Members may sit anywhere, I hope that all colleagues, no matter where they sit, will choose to support the regulations.

The regulations were laid in draft before the House on 2 November. If approved, they will simply roll forward the existing temporary disapplication of the legal requirements for the Mayor of London to keep his current spatial development strategy available for public inspection, and to provide a hard copy on request. Of course the strategy must be made available for inspection free of charge online.

The regulations are part of a wider package of Government measures to ensure that the English town planning system can continue to operate safely and efficiently during the pandemic. I can confirm for certainty that the plain English translation of the Mayor of London’s spatial development strategy is ‘the London plan’.

Parallel measures to the regulations are currently also in place across the country for other local plans and spatial development strategies, and it is our intention also to roll forward those measures. Regulations to implement them will be laid in Parliament shortly, but unlike the London plan provisions, they will be subjected to the negative procedure.

The present rules that authorities must follow when preparing plans, including consultation and the documents that must be made available at each stage, are set out in law. Earlier this year, in response to the coronavirus pandemic, and with the support of stakeholders, the Government amended those rules. In the interests of public safety and to ensure that plans can advance through the system and support local recovery, we made some changes. We temporarily removed requirements for authorities to make plans and other related documents available for inspection at council offices and other places, given that those offices are either closed or restricted in terms of right of entry, and the requirement for hard copies of the documents to be provided on request. Documents are still required to be made available on the authorities’ websites.

We also published guidance on how authorities should consider how they can continue to promote effective community engagement by means that are reasonably practicable, in particular to reach those sections of the community that do not have internet access. Because of the current level of uncertainty about the future spread of the coronavirus, and the extent of the associated restrictions, we propose to roll forward those measures by 12 months from the point that they expire on 31 December 2020. For the London plan that requires an amendment to the Business and Planning Act 2020, which in turn amends the relevant provisions of the Greater London Authority Act 1999.

My officials have discussed the current measures with the Local Government Association’s planning advisory service and the Planning Officers Society, and neither organisation has heard of any issues or concerns. It is important to stress that we hope that all authorities will be able to discharge those duties sooner than 31 December 2021. The changes do not prevent authorities from displaying documents in public buildings or sending out hard copies. We are simply continuing the existing disapplication of the formal requirements while the effects of the pandemic remain prevalent.

I believe that the Committee will understand that the changes are proportionate and pragmatic, and have been widely welcomed by the public and private sectors alike. I commend the regulations to the Committee.

[The Chair]

I remind the Committee that the debate can continue until five minutes to 11.

--- Later in debate ---

[Christopher Pincher]

I am grateful to the Committee and to the hon. Member for Weaver Vale in particular for showing unity of purpose, and for the usual amity with which he presented the Opposition’s view. In this case their view dovetails and is in concord with the Government’s view. Therefore I commend the regulations to the Committee for approval.

Question put and agreed to.

Leaseholders and Cladding

Christopher Pincher Excerpts

Tuesday 24th November 2020 Commons Chamber

[Mr Clive Betts (Sheffield South East) (Lab) [V]]

To ask the Secretary of State for Housing, Communities and Local Government if he will make a statement on whether leaseholders are expected to pay for the removal of dangerous cladding from their homes.

[The Minister for Housing (Christopher Pincher)]

I congratulate the hon. Member for Sheffield South East (Mr Betts), the Chair of the Select Committee on Housing, Communities and Local Government, on securing the urgent question, which is of huge interest and concern to many of our constituents up and down the country.

The question of who pays for remediation works is key for the Government and many of our constituents. We have been clear that leaseholders should not have to worry about the cost of fixing historical safety defects in their buildings that they did not cause. Test have shown clearly that aluminium composite material—the kind of cladding found on Grenfell Tower—is the most dangerous form of cladding material. We continue to engage with building owners, regulators and the wider industry to ensure that it is removed from high-rise residential buildings as quickly as possible.

ACM remediation costs are being funded through several sources, including warranties, building owners and developers. We have provided £600 million to fund the removal of ACM where funding has been a key barrier to remediation and the Chancellor of the Exchequer has allocated a further £1 billion to be spent on removing other types of unsafe cladding over the current financial year.

It is important to remember that this is a multi-year problem. Remediation work cannot be done overnight and it must be done properly so that it makes buildings and residents safe. That forms part of the ongoing discussion that my right hon. Friend the Secretary of State has with other Departments.

However, I am clear, and I hope that the House is clear, that public funding does not absolve the industry from taking responsibility. We expect developers, investors and building owners who have the means to pay to cover remediation costs themselves without passing on costs to leaseholders, but we recognise that there are cases where that might not be possible, and cases where there may be wider costs relating to historical defects. The Government are determined to identify suitable financial solutions and remove barriers to remediation.

The Government have asked Michael Wade to accelerate his work with leaseholders and the financial sector to develop proposals to protect leaseholders from the costs of remediating historical defects wherever possible. However, we must also ensure that the bill does not fall wholly on taxpayers. We will update leaseholders on that work before the Building Safety Bill, which has just completed its prelegislative scrutiny, is introduced in Parliament.

[Mr Betts]

Thank you, Mr Speaker, for giving me the opportunity to ask my urgent question. The Housing, Communities and Local Government Committee has just carried out prelegislative scrutiny of the draft Building Safety Bill. In general, the Bill is very welcome. It implements the recommendations of the Hackitt report, post Grenfell. However, clause 89 contains provisions for leaseholders to be charged a building safety charge. That could cover future costs, but it could also be used to recover the cost of historical defects, such as the removal of dangerous cladding. That is the concern.

I have a number of questions for the Minister. First, will he confirm very clearly and straightforwardly that leaseholders should not have to pay any of the costs of removing dangerous cladding from their homes, as has been the Government’s policy for some time? Those leaseholders bought their properties in good faith. They have not done anything wrong and they should not be financially distressed as a result.

If the Minister thinks that leaseholders should have to pay something—the Building Safety Minister said to the Select Committee that he thought an affordable amount was reasonable—how would he define an affordable amount? The Building Safety Minister said it was something that did not bankrupt an individual. However, if leaseholders are not going to pay—I hope the Minister will confirm that point—I accept that he should pursue developers, freeholders and others. In the meantime, if developers have gone out of business or are refusing to pay, does the Minister accept that, at least in the interim, the Government are going to have to step in and fund all the costs?

If the Minister accepts that point, does he also accept that the £1.6 billion so far made available to remove dangerous cladding will be totally inadequate? The Select Committee heard that to make all high-rise buildings totally safe and remove all defects, the total bill could be as high as £15 billion. Leaseholders should not have to pay that.

Finally, does the Minister accept that, without assurances on these points, many people are going to have a very miserable Christmas? They are trapped in properties they cannot sell, that they often cannot insure and where they are having to pay for waking watches, and wondering how on earth they are going to pay the bills that could arrive on their doormats at any time.

[Christopher Pincher]

I am grateful to the hon. Gentleman for his urgent question and for welcoming the proposals that we have tabled in the draft Building Safety Bill. He asks a number of important questions.

First, the hon. Gentleman asks whether the building safety charge will be retrospective. We envisage that the building safety charge will cover ongoing costs that leaseholders may have to pay for legal costs, building safety inspections and the like. In our proposals, we have said that the Secretary of State will be able to prescribe costs to ensure that unfair building safety charge costs do not fall unreasonably on the leaseholder.

We will of course look very carefully at the 80-page report from the Select Committee. I think there are somewhere north of 40 recommendations in the report. We want to look at it carefully and considerately, because we recognise it forms an important part of our answer to the challenge of building safety. I hope that we can develop a cross-party approach to our further scrutiny of the Bill when it comes before Parliament.

The hon. Gentleman asked me whether leaseholders will pay any costs at all. The point of introducing £1.6 billion of public money is to make sure that in the buildings that are most at risk and where there is no means to pay, the state steps in and supports those leaseholders, but, fundamentally, we expect developers and owners to step up and execute their responsibility to pay where buildings have been defective.

I cannot say that there will not be some costs at some point related to some defect in historical building safety that will not fall upon the leaseholder, but we want to make sure, through the public money that we are spending and through the work of Michael Wade, that we find innovative solutions to make sure that such costs are as minimal as possible. We cannot write an open cheque on behalf of the taxpayer. That would send the wrong signal to developers and those who are responsible for these buildings that they do not have to pay because the taxpayer will.

The hon. Gentleman asks about my noble Friend the Building Safety Minister in the other place. I can tell him that Lord Greenhalgh is working round the clock to find solutions to the challenges that face leaseholders up and down the country. He is determined, with the work that he is doing with insurers, developers and the financial services sector, to ensure that we come up with those solutions, and I look forward to working with him closely as the Bill, which he will introduce to Parliament, works its way through both Houses.

[Sir Peter Bottomley (Worthing West) (Con)]

It is on record that I am a leaseholder, but I am not affected by these proposals or problems.

The hon. Member for Ellesmere Port and Neston (Justin Madders) and I chair the all-party parliamentary group on leasehold and commonhold reform. We give our support to the work of the Select Committee, which, in this report, as in its previous one on lease renters, has laid out starkly one of the problems of some particular tenants. Social tenants do not have to pay, ordinary tenants do not have to pay; it is leaseholder tenants who have been lumbered with unimaginable anxiety and with costs beyond possible chance of payment. Until we get a full grip not just on the very high buildings and the aluminium cladding but on all the problems, including the developers who used wood for balconies in ways that were against the house building regulations, we are going to be left with a frozen part of the housing market in every single one of our constituencies.

We are grateful for the work that my right hon. Friend and his colleagues have done, but he should go on paying attention, as I think Lord Greenhalgh has, to the work of the Leasehold Knowledge Partnership, which was the first campaigning charity to get a grip of the scale of the problem. Also, will he say a word about waking watches, which are going on too long and at too high a cost?

[Christopher Pincher]

I am grateful to my hon. Friend for his contribution and for his ongoing interest in and commitment to this very important area of work. As I said earlier, we do not want leaseholders to carry the burden of these costs. That is why we are working with Michael Wade, who has a 40-odd-year history in the insurance market, to find innovative solutions to what is a very complicated problem. It is why we have also put aside a significant amount of public money in this financial year to remediate the buildings that are most at risk where the owners have no other means of paying.

My hon. Friend also asks about waking watch. We have published data on the costs of waking watch so that leaseholders are able to see the relative differences in charges by waking watch providers. It is entirely wrong that some providers charge so much, and I would point leaseholders to that data so that they can better understand where they may get better service. They may also know that alarm systems can pay for themselves within seven weeks and obviate the need for waking watch.

[Mike Amesbury (Weaver Vale) (Lab)]

The Housing, Communities and Local Government Committee’s scrutiny report on the draft Building Safety Bill, published today, makes for powerful yet sobering reading, not just for Members across the Chamber but, importantly, for the hundreds of thousands of leaseholders that are trapped in this living nightmare, left to foot the cost of a broken building safety system that they did not create. Before this, we had another powerful HCLG Committee report, a Public Accounts Committee report and a National Audit Office report, which repeatedly made it clear that, well over three years on from Grenfell, where 72 people lost their lives, the Government need to step up and step in to make buildings safe with a greater sense of urgency.

There are too many aspects of the building safety crisis to mention: the cost of remediation being passed to leaseholders and, yes, the interim costs such as waking watch; the snail’s pace of the work; other safety issues, such as firebreaks and wooden balconies not covered by the funding; the lack of prioritisation according to risk other than simply the height of buildings; and the ongoing saga of the external wall survey forms, despite this weekend’s botched announcement by the Secretary of State. How many reports are we going to need?

By my count, the Government have promised 11 times in this Chamber and beyond that leaseholders should be protected from the cost of remediation. Now we witness Minister after Minister shifting sand, referring to “affordable” costs put on the shoulders of leaseholders and enshrining in the draft Building Safety Bill the building safety charge—clause 89, there in black and white for people to see. Will the Minister tell me and the House what additional invoice paid in 28 days he defines as “affordable” or, as referred to at the Dispatch Box today, “reasonable”? Please answer that question.

Finally, will the Minister explain why those companies and developers that knowingly engineered false test results for insulation and cladding products, then riddled thousands of homes with flammable materials, are getting away scot-free?

[Christopher Pincher]

I am obliged to the hon. Gentleman for his questions. It is not true to say that leaseholders are being left to foot the bill. He and the House know full well that the taxpayer is spending £1.6 billion in this financial year to help remediate those buildings most at risk where the owners are unable to pay. Of course, those discussions across Government are ongoing. We keep the situation under review. However, I remind the House that it is not fair simply to place such a burden on the taxpayer. Developers and owners must step up and play their part.

The hon. Gentleman raised the question of the external wall system 1 form, which he knows is a form produced by the Royal Institution of Chartered Surveyors; it is not a Government form. I am pleased that, as a result of the negotiations undertaken by my right hon. Friend the Secretary of State and Lord Greenhalgh, the EWS1 form will no longer be necessary for those buildings that are not clad. The industry has made that clear. That will be to the benefit of something like 450,000 leaseholders. But there is more to do, and we will continue to do it.

The hon. Gentleman asked me what affordability is. It is a very subjective matter, because what is affordable to one person is not to another. We want to ensure that, as a result of the work that my noble Friend is doing with the financial services sector and the insurance sector, we come up with appropriate and innovative solutions to ensure that unfair costs do not fall on leaseholders for defects that may be identified down the line.

The hon. Gentleman also referred to commentary on lies told about fire safety tests. I entirely agree that that was wrong. It was outrageous. Where firms have been proven to lie, they must of course receive the full force of the law.

[Mr Speaker]

I note that we have 62 people to get through, so I am concerned. I recognise that everyone needs to get in, because they all have personal circumstances, so if we can help each other, that might just get us through.

[Nickie Aiken (Cities of London and Westminster) (Con)]

While I welcome the fact that a number of responsible property owners have taken the necessary steps, supported by Government funding, to remove dangerous cladding from their buildings, the leaseholders and residents of Paddington Walk in my constituency are still under pressure from their buildings’ owner, European Land, to pay for the works required to remove ACM cladding. As those residents said to me in an email sent this morning: “Manufacturers are responsible for defective kettles or cars. Why is it different for the most expensive purchase anyone will ever make in their lives?” Does my right hon. Friend agree that, given the billions of pounds being made available by the Government, it is now inexcusable that many building owners have still failed to remove dangerous cladding and are still trying to pass the cost and, indeed, the buck to leaseholders, who have suffered enough in this living nightmare?

[Christopher Pincher]

I quite agree with my hon. Friend. The buck ought to lie with the owners, their developers or the warrantee holder. She will know that we have spent a great deal of public money to remediate those buildings that are most in need of it, as I have described, but the responsibility of the developers—there are some very good developers out there—must be fully understood by us in this House and by them as an industry to remediate buildings that need it and to restore the reputation of their sector.

[David Linden (Glasgow East) (SNP)]

I congratulate the hon. Member for Sheffield South East (Mr Betts), the Chairman of the Select Committee, on securing the urgent question.

Despite the building safety programme applying only in England and Wales, its advice is still being used by insurance companies and mortgage providers in Scotland to guide decisions. This is leading to many people north of the border ending up in the same position as those south of the border: essentially mortgage prisoners and having their properties valued as worthless. The Minister knows that this is not just an issue of commonality for buildings over 18 metres; it includes those under 18 metres, too. So what measures will the Government be bringing forward, particularly with an eye to tomorrow’s spending review? What discussions has he had with lenders and insurance companies to make it clear that applying this process to Scotland is unfair? Will he agree to meet a delegation of Scottish MPs to look more closely at the issue impacting our constituents in this regard?

The problems for leaseholders arising from the 18-metre rule raise the question: why is the archaic and often unjust institution of leaseholding continuing in England at all? Might this, therefore, be an opportunity to follow Scotland’s example and abolish this outdated practice and the negative consequences that are so common with it?

[Christopher Pincher]

I am obliged to the hon. Gentleman for his questions. I will touch on two points that he raised. He is right that the financial services sector has commonalities throughout the United Kingdom: not simply in England but in Scotland, Wales and Northern Ireland. That is why the Secretary of State and Lord Greenhalgh have held a series of meetings with UK Finance and other components of the financial services sector. It is why an agreement has been reached that the EWS1 form should not apply to buildings without cladding, which, as I say, will help 450,000 or so leaseholders around the country. There is more work to do. I trust that the Scottish financial sector will take note of the advances we have made very recently in England and which we will continue to make. He raises the question of 18 metres. That is the guidance provided to us by Judith Hackitt and her committee and we are following that guidance. He also refers to leasehold reform. A leasehold reform White Paper will be forthcoming. Perhaps we may, at that time, be able to debate the advantages and disadvantages of the Scottish system and see where we are able to learn from them and possibly they are able to learn from us.[Official Report, 26 November 2020, Vol. 684, c. 9MC.]

[Sir David Amess (Southend West) (Con)]

A number of constituents in a low-rise block of flats in Southend West have been unable to get their properties insured because of cladding issues. It will cost £400,000 to remove the cladding and their service charges will escalate. Will my right hon. Friend please reiterate the principle that those costs should not be passed on to tenants or leaseholders?

[Christopher Pincher]

I am happy to reiterate that point to my hon. Friend. Lord Greenhalgh has had a series of meetings with the insurance industry to make sure it fully understands and takes on board that point. He will continue to do so, as my hon. Friend will continue to campaign doughtily on behalf of his constituents.

[Mr David Lammy (Tottenham) (Lab)]

I have to say to the Minister that I never dreamed that, three and a half years after my friend Khadija Saye died with her mother in Grenfell Tower, I would be here begging him to sort this problem out. I have over 1,000 residents in the Tottenham Hale Village in my constituency, a development built by Bellway Homes, which made £500 million profits in 2018, another £500 million profits in 2019, and has shown complete disregard for my constituents living in these buildings with combustible cladding. What is the Minister going to do about leaseholders in that situation when it is clear that his building safety fund is inadequate to meet the task? Will he meet me and my constituents, so we can sort this three and a half years after the Government promised it would be fixed?

[Christopher Pincher]

I am obliged to the right hon. Gentleman for his question. I sympathise with him for his personal loss and the loss of many of his friends and associates at Grenfell Tower. He asks what is being done to accelerate the pace of remediation in London, where there have been challenges that are unique to our capital. Lord Greenhalgh convened a summit of the London Mayor and the London Fire Brigade back in September to address an action plan to accelerate the work of London remediation. There was a further progress tracking meeting last month, and there are case conference meetings to address specific buildings in the capital and beyond. I remind the right hon. Gentleman that there were something like 2,700 applications for the £1 billion that we put aside for non-ACM cladding. We will work through those. We have now agreed that a significant number of them meet the criteria, and the first funding of those applications is about to begin. I am confident that the funding will be fully allocated by the end of the financial year in 2021, for which the money was made available.

[Dr Liam Fox (North Somerset) (Con)]

This is an issue of huge concern to many of my constituents in Portishead. It must be an absolute principle that leaseholders must be protected from the cost of remediation for safety issues that were not their fault. I welcome the Government’s support and approach. A £1.6 billion taxpayers’ commitment is huge, but the taxes of working families up and down the country should not be used to absolve developers, insurers and owners from their proper responsibilities. When will my hon. Friend come forward and set out how these responsibilities will be enforced?

[Christopher Pincher]

I am obliged to my right hon. Friend for his question. He is absolutely right. As I said in my earlier remarks, first and foremost the responsibility must fall squarely on the developers of these properties, their owners and warranty holders. There are some good developers that have worked hard to remediate ACM cladding; something like 50% of the buildings that have had ACM cladding remediated have been done, and are being done, by the private sector. Pemberstone, Mace, Peabody, Barratt Developments and others are all working to remediate their buildings. We have been clear that those that do not, such as those referred to by my hon. Friend the Member for Cities of London and Westminster (Nickie Aiken), must recognise that they will receive the full force of the law. I can tell the House that, from December, those responsible for buildings where remediation is not forecast to start by the end of 2020 will be publicly named, as a further incentive for them to get going.

[Tim Farron (Westmorland and Lonsdale) (LD)]

It would be an inexcusable outrage if the costs of making buildings safe in the light of the Grenfell tragedy fell in practice not on the developers or the governments, whose disregard of safety led to that tragedy, but instead fell on the innocent leaseholders; yet, in effect, that is the Government’s default position, as people are left with homes they cannot afford to make safe and homes that they cannot sell. Will the Government accept Lords amendment 13 to the Fire Safety Bill in the name of my honourable friends Baroness Pinnock and Lord Shipley in order to stop this injustice?

[Christopher Pincher]

The hon. Gentleman asks about an amendment that is being sent down to us from the other place. We will, of course, examine very closely the wording of that amendment, but my understanding is that it is a defective one, notwithstanding the issues that he raises and the concerns that he properly posits about leaseholders footing the bill. I hope that I have been clear to the House about my view on that. My understanding of the particular amendment is that it would be retrospective, which raises all sorts of legal challenges. It would also mean that building owners would be responsible for the normal wear and tear of buildings, which I am sure the whole House will accept would not be appropriate. We will look closely at the amendment, but I do not think that I can say at this stage that we can support it.

[Tom Hunt (Ipswich) (Con)]

I spoke about this issue soon after being elected. It affected one tower in my constituency. Since then, the problem has ballooned, and every week more of my constituents seem to be dragged into this. I agree that responsibility should ultimately lie with the freeholder, but the reality is that while the Government have that dispute with freeholders, it is the leaseholders in the middle who have this uncertainty hanging over them. Just last week, residents at Cardinal Lofts on Ipswich waterfront were all notified by quite a distant building manager that they had to pay £300 a month for a waking watch, at a time of uncertainty about employment for many of them because of the pandemic. That is completely wrong. I am glad that some support has been provided by the Government, but we need far more certainty far sooner. Will the Minister meet me and colleagues to talk in detail about the timeline for providing that certainty?

[Christopher Pincher]

My hon. Friend has raised this particular issue with me before, and I know that he has campaigned hard and long on it since his election just 11 months ago. I am happy to meet him to discuss that. The issue of waking watch has been raised by other Members. As I said, we want to ensure that leaseholders are aware of waking watch costs and the opportunities to mitigate them. It is the reason why we want developers to get on and remediate, and it is also why we have put £1.6 billion of taxpayers’ money aside to ensure that we can remediate those buildings where owners cannot, so that the waking watch issue becomes moot.

[Clive Efford (Eltham) (Lab) [V]]

It is a disgrace that three and a half years on, people still do not know whether the properties they live in are safe, and others cannot sell because they cannot get external wall system certificates. I am told by surveyors who would willingly carry out this work that they cannot do so because they cannot afford the huge premiums that are being charged by insurance companies. That is leading to a huge backlog in this area of work. It is essential to get that moving. What is the Minister going to do about that, and would he consider paying those premiums, so that we can remove the backlog and start to get some idea of the problem we are facing?

[Christopher Pincher]

The hon. Gentleman asks what we are doing to speed up the surveying process. We are making more professionals available to undertake EWS assessments. We are spending something like £700,000 to fund the training of those assessors, and we will produce about 2,000 of them over the next six months, which should help to speed up the process.

[Chris Grayling (Epsom and Ewell) (Con)]

In my constituency, the biggest concern for residents has been the inappropriate application of these rules and the EWS form to much lower-rise buildings than were ever envisaged and the resulting problems created for them in selling flats, moving flat and so forth. I welcome the announcements made by my right hon. Friend last weekend; I am grateful to him for that. Could I ask him to keep up the pressure on the different professionals and organisations involved, to ensure that this problem really does disappear? These homeowners should not be subject to pressures because of something that is not designed for their kind of property.

[Christopher Pincher]

My right hon. Friend can ask, and we will.

[Andrew Gwynne (Denton and Reddish) (Lab) [V]]

I often wonder how Ministers would react if they received a letter, often out of the blue, saying that the cost to make their home safe far exceeded their annual salary, sometimes by multiple amounts. We know that there have been more than 2,800 applications for the building safety fund. Can the Minister inform the House how many have been allowed to proceed to a formal application so far and how much has actually been paid out of the fund to date?

[Christopher Pincher]

I can tell the hon. Gentleman that 2,704 applications were received. A significant number of them, I regret to tell the House, were not sufficient to allow an immediate assessment, but more than 100 have been assessed successfully to move on to the next stage. The first tender for payment has been agreed, and I am confident that by the end of the financial year for which this money was set aside, it will have been fully allocated, and remediation work will have begun.

[Sir Roger Gale (North Thanet) (Con) [V]]

In his opening remarks, my right hon. Friend said that people should not be required to pay for faults that they did not cause, and he is absolutely right. Further to the point raised by the Father of the House, I have in my constituency one block that has social housing, private rented accommodation and full and shared leaseholders; will my right hon. Friend assure the House that the leaseholder element will not ever be faced with a disproportionate bill that will in effect pay for those who do not pay at all?

[Christopher Pincher]

I am obliged to my right hon. Friend for his question. As I said earlier, I cannot say that there will not be some cost that may occur at some point to leaseholders for historical defects work that may be undertaken, but we do want to make sure that, as a result of the work that Michael Wade is doing with the financial services and others, any such costs are fair and reasonable and can be carried. That is why we have put aside that £1.6 billion to make sure that the cost of cladding remediation for cladding such as ACM and high-pressure laminate can be funded by the taxpayer when the developers are not able to fund it, so that the cost does not fall on the leaseholder.

[Ms Karen Buck (Westminster North) (Lab)]

We have already heard about the difficulties that leaseholders have had with the EWS1 form backlog when they are seeking to sell. At the weekend, the Secretary of State claimed that his proposal to remove the requirement for this certification from properties without cladding had been cleared by and had the backing of mortgage lenders; in fact, UK Finance and the Building Societies Association both said that they did not back the scheme and had not been consulted, and that it did not solve anything and left 1.9 million homeowners in the lurch. Will the Minister tell us whether or not leaseholders who do not have cladding will be required to have the certification, and whether his proposal now has the backing of finance lenders?

[Christopher Pincher]

It is my understanding that buildings that do not have cladding will not need an EWS1 form. We clearly need to do more work with the financial services sector to advance the issues that have arisen with the EWS1 form but, as a result of the negotiations and the agreements made over the weekend, we anticipate that something like 450,000 holders will no longer need to use an EWS1 form.

[Dr Matthew Offord (Hendon) (Con) [V]]

I wish to press the Minister on that specific point. Will he confirm whether UK Finance has officially acknowledged that leaseholders of residential properties without external cladding do not need to provide an EWS1 form to finance, remortgage or sell their properties? Where can my constituents view that confirmation?

[Christopher Pincher]

As I said to the hon. Member for Westminster North (Ms Buck), my understanding is that the industry has confirmed that the EWS1 form will not be necessary for buildings that do not have cladding. As I am saying it from the Dispatch Box, I would imagine that is the view of the Government.

[Dean Russell (Watford) (Con)]

I welcome the EWS1 form measures as they will have a real impact and provide certainty for many in my constituency. However, a number of Watford residents, especially in places such as Outlook Place, are still finding it difficult to sell or remortgage their homes, so what reassurances can my right hon. Friend offer to those living in buildings with cladding that are under 18 metres?

[Christopher Pincher]

I am obliged to my hon. Friend, who I know has been campaigning long and hard on this issue in Watford. As I have said, as a result of some considerable and lengthy negotiations with the financial services sector, we have agreed that EWS1 forms will not be necessary for buildings that are for sale that are not clad in the same way as some buildings that are in grave difficulty. That will help 450,000 people around the country, a number of whom I suspect will be my hon. Friend’s constituents. There is more work to do on this matter and we will continue to undertake it.

[Meg Hillier (Hackney South and Shoreditch) (Lab/Co-op)]

I need to declare my interest in that I am a leaseholder in an affected block, but in my case, my developer is paying for the full remediation works. The Minister must acknowledge that this is one of the biggest consumer and safety failures in a generation. For all that I chair the Public Accounts Committee—we have published a report on this issue—and I watch taxpayers’ money very closely, surely the Government need to step up, just as they did when the former Secretary of State signed a ministerial direction sanctioning the expenditure of millions of pounds because he knew that it would take too long to go through the legal process of tracking down the actual owners of buildings for the most dangerous cladding. The Government need to step up. We need 10 times the amount that has been pledged. Surely the Minister must recognise this. Too many leaseholders are trapped and will never be able to move.

[Christopher Pincher]

I am grateful to the hon. Lady, and I know that she is a very considerate and assiduous Chair of the Public Accounts Committee. The Government, though, have stepped up. It is why we put £600 million on the table to remediate ACM-clad buildings, and about 79% of those have now either completed or begun their remediation. Ninety-seven per cent. of social housing buildings have had that remediation completed. It is why we stepped up again with £1 billion through the building safety fund to remediate buildings that have other non-ACM-style dangerous cladding, but we must not absolve the developers and the owners of their responsibility to make sure that remediation takes place in the buildings for which they are responsible. We work with them to make sure that happens while we keep the general situation under review.

[Felicity Buchan (Kensington) (Con)]

I welcome the additional money for training for assessors, because I understand from the industry that this is a very important issue, in terms of several of the delays. I am frustrated, however, that three and a half years on from the appalling Grenfell tragedy that happened in my constituency, we still have many outstanding issues. What assurance can my right hon. Friend give me that we will not be having the same conversation in six or 12 months’ time? Are there any interim measures that we can put in place to support leaseholders?

[Christopher Pincher]

I am obliged to my hon. Friend. I appreciate the very unique challenge that she has as the Member of Parliament for Kensington. As I said earlier, the £700,000 of public money that we are putting aside to support the training of assessors will deliver about 2,000 assessors—clearly qualified assessors—who will be able to undertake the assessment work over the next 12 months, so I trust that that will also be a means by which we will not be having this conversation again any time in the future. The public money that we have set aside beyond that—the £1.6 billion—is also designed to ensure that the worst, most dangerous buildings are dealt with quickly and effectively. I hope and trust that the conversations we have ongoing with developers and owners to make sure that they step up to the plate will mean that very soon, we will remediate all the buildings that are affected, and that we will be able to see value and trust restored to those buildings and the development sector.

[Chi Onwurah (Newcastle upon Tyne Central) (Lab)]

My constituent is a leaseholder in one of the 2,700 blocks —I think that is what the Minister said—that have applied to the building safety fund, which has approximately enough money to remedy about 600 blocks. She does not know whether her flat is safe. She cannot sell it and she does not know how much her liabilities may be. The Minister can talk about finding innovative solutions, but it is three and a half years since Grenfell and we still do not see builders, owners or developers paying for remediation. Will he guarantee to my constituent that she will not have to be liable—that she will not have to pay for these costs—and does he agree that this is just one more example that shows that the leasehold system is broken and needs to be reformed?

[Christopher Pincher]

The leasehold system and its reform will form part of a Government White Paper and separate debates in this Chamber, and I am sure that the hon. Lady will play her part in those.[Official Report, 26 November 2020, Vol. 684, c. 10MC.] It is not true to say that developers and others are not funding remediation. As I have described, firms such as Pemberstone, Mace, Peabody, Barratt and, I think, Legal and General are all stepping forward with funds to remediate buildings for which they are responsible, resulting in something like 50% of ACM-clad buildings being remediated by the private sector. I do not know the specific issues of the buildings in her constituency to which she refers, but I am happy to talk to her separately about them. I am confident that the £1 billion of public money that we will set aside through the Building Safety Bill will be allocated by the end of this financial year, as we said it would be, and that remediation of those non-ACM buildings will begin.

[Kevin Hollinrake (Thirsk and Malton) (Con)]

I draw the House’s attention to my entry in the Register of Members’ Financial Interests. In many cases there are insurmountable legal problems involved in trying to charge building owners and freeholders for these sums, and developers will often point the finger elsewhere. We know that responsibility lies with the developers and installers, with the manufacturers of insulation and cladding in many cases, and, let us be honest, with successive Governments for their approach to building regulations, which must be described as ambiguous. This cannot be left at the door of the leaseholders. Is it not right that the Government should now step in, increase the building safety fund, get the work done and claim back the moneys wherever possible and from whoever possible, and where they cannot, do so by means of a cross-sector levy?

[Christopher Pincher]

My hon. Friend is an expert in this field and I pay tribute to him for the work that he has undertaken. Mr Wade, our adviser, is working hard with us and with the sector to develop solutions that will provide help and support to leaseholders. In the meantime, as I say, the Government have stepped up and provided a significant amount of public money to remediate the buildings that are most in need of it where there is no other means of paying, but it must be right that we ask developers and those responsible for these buildings to pay. To signal that the state will simply step in and sub them will not encourage them to do the right thing, and it is for developers, owners and warranty suppliers in the first instance to ensure that the buildings for which they are responsible are remediated.

[Daisy Cooper (St Albans) (LD)]

Leaseholders in St Albans are already facing estimated bills of between £50,000 and £120,000 each for fixing safety defects in their buildings that they did not cause. These are not bills that are in the far-off distant future; these are costs that are being passed on to leaseholders right now, including through increased service charges. In the last three years, leaseholders in St Albans have seen their service charges rise from under £1,000 a year to £6,000 a year. Some of my residents cannot afford to pay these bills any more, and that will affect their ability to continue working in some professions, so will the Government get a grip and take urgent action to ensure that leaseholders no longer have to pay, as they are already doing, and that they do not have to foot the bill for these costs?

[Christopher Pincher]

I am obliged to the hon. Lady. She is right. We recognise, as she will, that there are many cases in which leasehold agreements allow the building owners—the freeholders or their managing agents—to pass on remediation costs to the leaseholders of individual flats. That is why we have instituted the work of Michael Wade to ensure that leaseholders are protected from any charges for historical remediation that are unfair. The fundamental responsibility—the first responsibility—for the remediation of those buildings must lie with the developers, the building owners and the warranty holders, and not with the leaseholders.

[Theresa Villiers (Chipping Barnet) (Con)]

I thank the Government for the substantial investment in tackling this problem, including for the social sector. Will the Minister encourage housing associations that have been funded to do this work to get it done as quickly as possible? That is the best thing to do to keep people safe, but also it is really tough on tenants effectively living in a building site for months on end, as has been the case in Desmond House in East Barnet in my constituency.

[Christopher Pincher]

My right hon. Friend is a doughty campaigner for her constituents in Chipping Barnet, and I will do exactly as she advises.

[Stella Creasy (Walthamstow) (Lab/Co-op) [V]]

Hundreds of families in Walthamstow have finally managed to get their foot on the property ladder through shared ownership and now, as a result of this crisis, find themselves in properties that are almost worthless and facing huge bills. Will the Minister reconsider the decision to exclude those bills that were incurred before 11 March, because many of those people have already tried to do the right thing and have incurred huge cost to themselves through the remediation works. Surely we should not penalise those people who have tried to act promptly on this matter.

--- Later in debate ---

[Christopher Pincher]

I am obliged to the hon. Lady. The decision of the Government was to make sure that those buildings that were most in need of remediation and where the owners could not pay should be, as it were, first in the queue for Government help. We want to work with the sector, with the leaseholder community and with the adviser Michael Wade to find solutions that will ensure that unfair bills do not fall upon leaseholders who are not responsible for the troubles that they face.

[Marco Longhi (Dudley North) (Con) [V]]

I should draw your attention, Madam Deputy Speaker, to my entry in the Register of Members’ Financial Interests. As a landlord myself, I make it my utmost priority to ensure that my tenants are safe in their homes. What steps is my right hon. Friend taking to ensure that all landlords are taking their duties seriously and acting on their tenants’ concerns?

[Christopher Pincher]

I can tell my hon. Friend that we have written to all those responsible for buildings, including their owners, where remediation has not started to remind them of their responsibilities and our expectation that remediation will begin by the end of the year. My hon. Friend the noble Lord Greenhalgh has convened roundtable meetings with owners and with local authority leaders to address the challenges that they face locally. We have made it clear that, from December, those responsible for buildings where remediation has not started and is not forecast to start by the end of this year will be publicly named. Those are active steps that we are undertaking to remind landlords and owners of their responsibilities.

[Ruth Cadbury (Brentford and Isleworth) (Lab)]

In October, more than 1,000 of my constituents—leaseholders, shared owners, tenants and students—were asked to leave the Paragon Estate in Brentford within seven days because the current owners, Notting Hill Genesis, found significant fire safety and structural issues. They were unrelated to flammable cladding, because that had been removed two years ago. In September 2019, Richmond House in Worcester Park, a four-storey block of only 23 leasehold flats, was destroyed by fire in 11 minutes. Both estates were developed by the Barclay Group, and both had the same significant fire safety defects. The week before last, the Sunday Times said that

“the scandal over building safety spreads far beyond dangerously clad tower blocks”

and could affect 4 million people. What are the Government doing right now to protect all those at risk of dying at home because of failures in the building safety regime?

[Christopher Pincher]

The building safety fund was designed specifically to deal with the removal of unsafe non-ACM cladding where the buildings are over 18 metres and where materials, even before the combustible cladding ban was put in place in 2018 under statutory guidance, should not have been used on high-rise buildings. That fund is available, and, as I have described to the House, it is already being disbursed round the country and will be completed by the end of this financial year. We will continue to work with the financial sector, as I have described, using Michael Wade. We will continue to work with developers to make sure that their responsibility is executed, and support for leaseholders is provided. As for the specifics of the case that the hon. Lady raised, I am not aware of it, but I am happy to discuss it with her outwith the Chamber.

[Bob Blackman (Harrow East) (Con) [V]]

As a member of the Housing, Communities and Local Government Committee, I have had the opportunity to scrutinise the draft safety Bill. The report that we published today has unanimous cross-party support, and I urge my right hon. Friend and his colleagues to look at it in very great detail indeed. I do not expect—it would be unreasonable to do so—an immediate reaction today following publication. However, during the inquiry, a concern arose from Lord Greenhalgh’s evidence about costs being passed on to leaseholders. My right hon. Friend has said that proposed amendments to the Fire Safety Bill are defective in some way, but would he commit, on behalf of the Government, to make it clear that the Government will ensure that it will be illegal for the cost of remediating unsafe cladding on buildings to be passed on to leaseholders in any shape or form?

[Christopher Pincher]

I am obliged to my hon. Friend. I can guarantee that we will look very closely at the report. As I have said, there are something like 80 pages and 40-odd recommendations. I shall look very closely at pages 22 to 39, which may include reference to proposals from another place.

[Patrick Grady (Glasgow North) (SNP)]

As my hon. Friend the Member for Glasgow East (David Linden) said, this is not a problem that stops at the border. I have constituents in the Partick area and elsewhere who are trapped in houses that they cannot sell and cannot get fixed as a result of advice assigned for an English model of ownership and management that does not apply in Scotland. When did the Minister last engage with his Scottish Government counterparts on this, and when will he next engage with them? Will he respond to the request from my hon. Friend to meet a delegation of MPs from Scotland to discuss how this particularly affects our constituencies?

[Christopher Pincher]

We discuss a range of issues with our colleagues in the Scottish Government—and officials discuss with officials—in the usual way, all the time. I am very happy to discuss with the hon. Gentleman any particular arrangements that he may wish to raise, and I will make sure that any such issues are raised with my noble Friend Lord Greenhalgh.

[Antony Higginbotham (Burnley) (Con)]

While discussions take place with property developers and freeholders about who will fund the cost of this, we should never forget that there are leaseholders and tenants living in these buildings, so would the Minister set out what steps have been taken to keep those people safe, as they are living in fear?

[Christopher Pincher]

We have put a great deal of public money aside to make sure that buildings that need remediation—and where there is no other means of making them safe quickly—are made safe through the ACM fund and the building safety fund. We will continue to work closely with the industry to make sure that other buildings are remediated and made safe. I look forward to further contributions from my hon. Friend in that regard.

[Andy Slaughter (Hammersmith) (Lab)]

The Minister answered a series of questions on this subject yesterday, and his answers all contained the same formulation of words: “to protect leaseholders from unaffordable costs”. Does he realise that that leaves leaseholders in limbo? What he needs to do now is either define what “unaffordable” means better than “just below the bankruptcy threshold”, as in a previous attempt by one of his colleagues, or he needs to recommit to exempting leaseholders from those costs, as well as social landlords, as there are costs not only for leaseholders but for tenants?

[Christopher Pincher]

As I said earlier, I cannot commit that there will be no costs that a leaseholder will ever have to pay with respect to some historical defect. We want to make sure, through the building safety fund and the ACM fund, and through our work with developers and owners, that the costs of cladding issues that confront many people and which are the subject of great debate in the House are protected for leaseholders.

The hon. Gentleman asks me about affordability, which is a very subjective matter. I want to make sure, through the funds we have made available and the work Michael Wade is doing with the sector, that people are able to get on with their lives, restore value to their properties and live as normally as possible without the spectre of costs hanging over them.

[Barry Gardiner (Brent North) (Lab)]

The Ministry of Housing, Communities and Local Government blames the building control inspectors. The building control inspectors blame the construction company. The construction company blames the developer. The developer blames the lack of proper regulation. What is clear is that no one blames the thousands of leaseholders in my constituency who are now trapped in their homes, paying for everyone else’s mistakes. So will the Minister accept that the buck stops with him to get those who are responsible to pay up, if necessary with a windfall tax on the industry, to sort out the regulation and to keep my constituents safe and solvent?

[Christopher Pincher]

The buck stops with those responsible for the development of these buildings, the owners and the warranty holders, and that—getting them to pay—is what we are working to make sure they do.

[Gareth Bacon (Orpington) (Con)]

I have been contacted by a number of constituents who are leaseholders in buildings under 18 metres in height that have cladding on them. They are unable to remortgage or to move home because mortgage providers are refusing to lend without the EWS1 form and the freeholder has not provided it. Will my right hon. Friend confirm whether or not an EWS1 form is required for buildings with cladding that are under 18 metres in height? If it is not, will the Government commit to reinforcing that message to mortgage providers, so that my constituents can move on with their lives?

[Christopher Pincher]

I can certainly confirm that buildings that are without cladding should not have an EWS1 form apply to them. EWS1 forms can be applied in other egregious circumstances, and we are working with the sector to make sure that we obviate, as far as is possible, the responsibility of leaseholders to provide those forms. There is more work to be done to ensure that buildings can have their value restored to them and that people can move effectively without recourse to an EWS1 form.

[Munira Wilson (Twickenham) (LD) [V]]

In my local authority of Richmond upon Thames, remediation work has either been started or completed on fewer than 50% of buildings with dangerous cladding. Leaseholders living in these buildings, such as the residents of the Sandy Lane estate in my constituency, are living at constant personal and financial risk. So may I press the Minister again: will he, in the first instance, commit to covering the costs of both the assessment and the remedial work, to keep not just my constituents safe, but leaseholders across the capital and the country, and claim the money back from freeholders and developers later?

[Christopher Pincher]

As I said a moment ago, some 79% of all identified high-rise ACM buildings have either completed or started their remediation, and some 97% of social sector buildings have either completed or started their remediation. I know that there are specific challenges in London, which is why the Secretary of State and Lord Greenhalgh have undertaken roundtables with the Mayor, the fire brigade and the sector to ensure that the pace of acceleration is speeded up. We want to make sure that this work is done. We will continue to work with the developer community and with leaseholders to make sure that it is. Where necessary, as we have already demonstrated, public money will be spent, but in the first instance the responsibility should fall on those who built these buildings or who own them.

[Huw Merriman (Bexhill and Battle) (Con)]

The Minister is quite right that the buck should stop with those who are responsible, but for the 66 leaseholders in the Landmark in Bexhill, their builder and developer have both gone out of business, and indeed the insurer is not in business either. Ultimately, while the freeholder should of course be responsible, legally they may not be. What can be done to ensure that leaseholders are not responsible and do not face years of court action or bankruptcy? Surely we need to look at an industry levy to make sure that the industry that is ultimately responsible carries the can.

[Christopher Pincher]

The work of Michael Wade is designed to address some of the challenges that my hon. Friend raises. In the interim—I am sorry to labour this point—that is why we put aside a very significant amount of public money to alleviate the risk to the buildings that are most at risk of fire and that are most dangerous, and where there is no other means of the owner paying, so that, fundamentally, leaseholders in those circumstances are made safe. The work of Mr Wade will focus particularly on the matters that my hon. Friend raises.

[Stephen Doughty (Cardiff South and Penarth) (Lab/Co-op)]

The bottom line is that this is a national scandal. It is a UK-wide problem that is going to require UK-wide solutions, such as the Minister has described, regarding the EWS1 forms that have affected my constituents. I have been absolutely appalled by the utterly amoral behaviour of many of the developers and construction companies, raking in billions while trying to dump the costs on to leaseholders in my constituency and so many others around this country. Has the Minister actually hauled in the likes of Redrow, Laing O’Rourke and Taylor Wimpey? If he is saying that they are ultimately responsible, what is he actually going to do to make them pay? Will it be a levy or some other measure? When will we see these innovative insurance products, because the reality is that my constituents are paying thousands in increased premiums right now?

[Christopher Pincher]

I understand the concerns of the hon. Gentleman and the passion with which he expresses the concerns of his constituents. We have named and shamed the owners and developers who did not step up the plate and properly and quickly remediate ACM-clad buildings. We made it clear that where we anticipate that the remediation of other buildings will not have begun by the end of this year, we will name and shame those owners and developers too. That is the work that Mr Wade is undertaking to develop the solutions that will mitigate the effect of any costs on leaseholders so as to make sure that we draw this terrible situation to a reasonably quick and satisfactory conclusion. I think that will answer some of the concerns that the hon. Gentleman has raised. We want to get on with this, and get on with it quickly, and that is the work that Mr Wade is undertaking.

[Stephen Metcalfe (South Basildon and East Thurrock) (Con) [V]]

Although I welcome the funding that the Government have made available to remove unsafe cladding and praise the owners who have stepped up to get the process under way, there are, sadly, many owners who have not done that, leaving residents in Basildon trapped in homes they cannot sell. Further to the point made previously, what more can the Government do, other than naming and shaming, to force building owners to start the process of cladding removal and to fund it where they can?

[Christopher Pincher]

Local authorities have a suite of measures with respect to enforcement—fines and the like that can be brought to bear to address the concerns, or some of the concerns, that my hon. Friend raises. As I have said previously and shall say again, the work of Michael Wade, a very experienced player in the insurance sector with 40 years’ experience behind him, is to bring the sector together to find sensible and innovative solutions that will result in the costs that may fall to leaseholders being mitigated. That is the solution to this problem, not simply writing a blank cheque on behalf of taxpayers, which would send entirely the wrong message to the developers and the owners of these buildings, who are, in the first place, responsible for remediating the issues that they have caused.

[Charlotte Nichols (Warrington North) (Lab)]

I should make a declaration of interest that I am a leaseholder, although I am personally unaffected by the matter we are considering. However, I have heard from a number of constituents who are—or whose children are—affected. Does the Minister agree that the principle is simple? They have purchased flats in good faith that have subsequently been shown to have been built potentially dangerously. As my hon. Friend the Member for Brentford and Isleworth (Ruth Cadbury) said, that extends far beyond combustible cladding. If they had bought some other item with inherent faults, they would not be expected to pay for repairs, so those leaseholders should not be liable for remedial works to make their homes safe, should they?

--- Later in debate ---

[Christopher Pincher]

Our actions are designed to ensure that the hon. Lady’s constituents and others around the country are not liable for the costs of cladding. I cannot say to her that there will not be some costs that fall on leaseholders that have some connection with defects in their properties, but we are working hard with Mr Wade and others to ensure that we have solutions to mitigate that, and we must make sure that developers and owners step up to the plate and remedy the situations that they have created. Where they cannot, thus far the Government have demonstrated that we will step in and support remediation of buildings, but we cannot and should not offer a blank cheque on behalf of taxpayers. The primary responsibility must reside with developers who built those buildings.

[Robert Halfon (Harlow) (Con) [V]]

I welcome what my hon. Friend is doing, particularly on fairness for leaseholders, but what measures can he take to support Harlow locally to improve the quality of social housing, given the urgent need to ensure that our social housing stock is fit for purpose and we can build an even better Harlow for residents, for the 21st century and beyond?

[Christopher Pincher]

My right hon. Friend campaigns for Harlow possibly like no other colleague campaigns for any constituency in the country. He was integral to our work on space standards for upbuilding and ensuring that buildings have light in all habitable rooms. In answer to his question, I point him to our affordable homes programme, under which £12.2 billion will deliver 180,000 affordable new homes in the next five years, and to our reforms to the housing revenue account, which will allow local councils more easily to build social homes if they wish. Harlow may wish to pursue those two endeavours.

[Lilian Greenwood (Nottingham South) (Lab)]

I have been contacted by numerous leaseholders in my constituency who, through no fault of their own, are worried sick because they are being told that they need to pay thousands of pounds for essential fire safety works, including the removal of unsafe cladding. Some are vulnerable or on low incomes and all fear losing their home or being trapped in a financial nightmare. I think that the Minister agrees with the Housing, Communities and Local Government Committee that leaseholders should not be required to pay for the remediation of historical building safety defects, but what is his advice to my constituents, who are receiving enormous service charge bills that they cannot afford and should not be asked to pay?

[Christopher Pincher]

I entirely sympathise with the situation that the hon. Lady’s constituents and those of other right hon. and hon. colleagues face. We are entirely cognisant of the fact that individual legal contracts between owners and leaseholders allow owners to pass on costs to their leaseholders. That is one of the reasons we invited Michael Wade to do the work that he is doing. We will work as fast as we can to ensure that the solutions that we are working through are available to mitigate any costs that leaseholders may fear they have to pay. That is also why we will continue to make public funds available, as we have through the ACM fund and the building safety fund to remediate buildings that are most in need and for which there is no other means of quick and easy remediation.

[Caroline Nokes (Romsey and Southampton North) (Con)]

Leaseholders are not just living in limbo. As we have heard this afternoon, they are living in fear. They are paying over the odds in insurance to live in fear, and in some cases they are paying well over £1,000 a year for waking watch charges. I recognise that my hon. Friend has done an enormous amount of work on that, but may I please impress upon him the urgency? At this economic time, people simply cannot afford those charges on an ongoing basis.

[Christopher Pincher]

I entirely accept the points made by my right hon. Friend. We will continue to work with the insurance sector on the insurance challenges that leaseholders face, with the financial services sector on the challenges with mortgage costs that leaseholders face, and with developers to make sure that remediation takes place swiftly and effectively, so that this problem is resolved.

[Stephen Timms (East Ham) (Lab)]

Will the Minister set out much more clearly the criteria for the much-needed grant funding? Residents at Waterside Park in my constituency are worried that their management company wants to apply to the building safety fund, even though the development recently received a B1 rating so remediation is not required. Would such an application be appropriate?

[Christopher Pincher]

I point the right hon. Gentleman to the specific criteria in the building safety fund, which was published earlier this year. As I have said and will say again, we will work with Michael Wade to make sure that there are solutions to what is a very complicated issue. There may be more than one element to the package of solutions to resolve this challenge. I do not want to give a running commentary to the House on the progress of that work, but it is ongoing, and we hope that we can make some further and concrete announcement soon to give succour to the points made by the right hon. Gentleman and reassurance to others in the House.

[Scott Benton (Blackpool South) (Con)]

I welcome the £1 billion the Government have made available through the building safety fund for the removal of unsafe non-ACM cladding. Is my right hon. Friend able to update the House with regard to the number of applications to the fund and how quickly those can be reviewed and processed so that the work can finally be done?

[Christopher Pincher]

I am grateful to my hon. Friend. He campaigns hard and long for his constituents in Blackpool South. We have now advanced more than 100 applications and the first payments for work will be made imminently. I am confident that the full allocation of £1 billion that the Chancellor made available in the Budget earlier this year will be made by the end of this financial year, for which the money was made available.

[Ms Lyn Brown (West Ham) (Lab) [V]]

Hundreds of constituents are affected by safety problems, from social housing tenants in Canning Town to leaseholders in Stratford. Those in the Prime Minister’s flagship Olympic park have had the Olympic dream turned into a nightmare. This crisis is getting worse. Just two weeks ago, four more blocks were placed on waking watch. They have been told there is a risk of fire, which increases their fear. They are trapped in unsellable homes and there is a dread that, at the end of all this, there is going to be an unaffordable bill for them to pay. Why can the Government not understand that this continuing uncertainty and punishing of leaseholders is plain wrong and that the notion of affordability is massively contentious and concerning? Perhaps we can have a meeting.

[Christopher Pincher]

I entirely understand the concern of the hon. Lady and her constituents. The Government are working hard and at pace to remediate these buildings and resolve the issues that her constituents face. I am very happy to meet her to discuss the specific issues in her constituency, but she can be assured that I have every sympathy with the plight of her constituents. We are working very hard, very quickly to make sure those issues are resolved.

[Neil O'Brien (Harborough) (Con) [V]]

Will my right hon. Friend update the House on what progress is being made in removing both ACM and non-ACM cladding in the social housing sector?

[Christopher Pincher]

Something like 97% of buildings with ACM cladding in the social sector have been remediated or have remediation under way. Of course, we continue to work on the remediation of non-ACM cladding, and we will work with local authorities to make sure that that is done as swiftly as possible. Another Member previously asked me if I would encourage housing associations to work more swiftly to remediate their properties—I think it was my right hon. Friend the Member for Chipping Barnet (Theresa Villiers)—and I said to her that, yes, we will. I say to my hon. Friend: yes, we will work harder with social housing operators to make sure that their properties are remediated.

[Stephen Hammond (Wimbledon) (Con)]

Like so many colleagues across the House, I have had many constituents write to me about the problems they are suffering with cladding, remediation and getting some answers from both finance and insurers, so I will not repeat all of what has been said before. Could I just say to my right hon. Friend that I have an outstanding meeting request with his colleague Lord Greenhalgh, and I wonder whether he might facilitate that for me?

I heard the Minister’s answer a moment ago to the question about whether or not the Government would look at the amendment from the House of Lords, and I listened carefully to his answer. Can he tell me whether or not the Government are sympathetic to the amendment, and whether or not the Government might bring forward their own amendment that would be in order?

[Christopher Pincher]

My hon. Friend encourages me to facilitate a meeting with Lord Greenhalgh, and I am happy to try to assist him in that regard. Regardless of the rather byzantine practices in the other place, I trust that we can make that happen for him.

My hon. Friend asks whether we have sympathy with the amendment sent down to us from the House of Lords. I understand what the amendment is trying to achieve. I believe it is defective, but of course we will look at it from the point of view that another Chamber in this Parliament has sent us an important amendment, and we will give it appropriate consideration.

[Florence Eshalomi (Vauxhall) (Lab/Co-op) [V]]

I receive emails from constituents in Vauxhall on an almost daily basis about this cladding scandal. My constituent who lives at Beregaria Court on Kennington Park Road emailed me yesterday and said:

“I am a leaseholder and do not own any other part of the building, I had no say in how this was built, until recently I didn’t know what cladding was, have just been working and saving for years and putting it all into 1-bedroom apartment that now is worth nothing.”

Such constituents bought their homes in good faith, so I have one question to the Minister: do the Government agree with me that in principle it is wrong to make leaseholders pay for these bills?

[Christopher Pincher]

I pay tribute to the hon. Lady. I know she campaigns hard for her constituents, and we have had many exchanges across the Chamber about the concerns that her constituents have raised with her. We entirely agree that it is not right that leaseholders who have done the right thing—who have invested in a property or have chosen a place to call home—should find themselves burdened by costs for which they are not responsible. That is why we are working with the financial services sector—Michael Wade is working on this—to try to make sure that any costs respecting historical defects of buildings are obviated. She will understand when I say that the taxpayer should not be held responsible for an open-ended cheque. We have already spent over £1.5 billion of public money to ameliorate those buildings most in need of it. The fundamental responsibility must lie with developers, but I entirely understand the point of view that the hon. Lady has raised on behalf of her constituents. Leaseholders who have done the right thing should not fall liable to unfair costs.

[David Johnston (Wantage) (Con)]

On behalf of my constituents who are affected by and anxious about this situation, can I add my voice to the cause that leaseholders should not have to pay for these charges? They have done nothing wrong. Can my right hon. Friend assure me that he will push lenders not to require the EWS1 form if it is not really needed, and also push the Royal Institution of Chartered Surveyors, which is training 2,000 other assessors, to deploy those in the areas of the country that most need them? If they are too thinly spread across the country, it will not do enough to reduce the delays.

[Christopher Pincher]

I am grateful to my hon. Friend for his thoughtful contribution. Yes, we will continue to work with the lending sector to ensure that the EWS1 form is fully and properly understood and is not misused, or that its use does not bleed across in a way that is inappropriate. We will of course roll out the 2,000 assessors as quickly as we possibly can. I will take on board his point and consider how those assessors can be best and most effectively deployed.

[Hilary Benn (Leeds Central) (Lab)]

For the past hour and a half, the Minister has had to listen to testimony about the nightmare that all our constituents, including mine in Leeds city centre, are living with. He knows that leaseholders simply do not have the billions that are still required to fix the problem. He knows that without funding from elsewhere, they will continue to live in unsafe homes, as waking watch and insurance bills mount. He knows that some of them will eventually lose their homes, because they will be made bankrupt by those costs. He knows how much anguish this nightmare is causing them. He also knows that an answer must be found, but I think the question that leaseholders who have been listening to this urgent question would like to put to him is: when will the Government come forward with that answer?

[Christopher Pincher]

I am grateful to the right hon. Gentleman. The question he puts is a fair one, and the way in which he puts the issues he raised was entirely reasonable and fair. We will bring forward proposals as quickly as we can, to ensure that costs to leaseholders are mitigated. He will understand that this is a complicated issue that tracks back over political generations. To unpick that challenge, and to ensure that remediation is done effectively, that liability falls where it should, that the taxpayer is not subjected to unfunded commitment and that leaseholders have the right thing done by them is a challenge, but one that we are rising to and one for which we will bring forward proposals as quickly as we can.

[Sir Robert Neill (Bromley and Chislehurst) (Con)]

The Minister may well have seen on Sunday on the television my constituent Ritu Saha talking not for the first time about the agony that she and her neighbours in Northpoint in Bromley are going through, for all the reasons that have just been set out by the right hon. Member for Leeds Central (Hilary Benn) and many others.

Of course there are complications in sorting out liability and dealing with some of the technical issues of remediation. I entirely accept that, and the work being done, but will the Minister recognise that the moral point is not complicated? At the end of the day, leaseholders who have done nothing to create this situation and who relied in good faith on a regulation that ultimately Government—of whatever description—own should not be out of pocket for whatever reason. If that takes more money, will he at least give the commitment that where it is a failure of regulation and no fault of the leaseholder, they will not ultimately have to pick up the tab?

[Christopher Pincher]

I am grateful to my hon. Friend. I have heard the testimony of Ritu Saha and others in his constituency. I understand the point that he makes. I hope that in answering him quickly, he will not in any way think that I am diminishing that point, because it has also been made by colleagues across the House. We will work at pace to ensure that leaseholders who through no fault of their own find themselves in this terrible situation are not subjected to unfair costs. Costs ought to fall in the first instance to the developers and owners—and their warranty providers—who built the properties. The Government have set aside funds in this financial year to support those buildings that require immediate remediation and where there is no other means of so doing. We will continue to keep the situation under review, but we will work with the sector to ensure that remediation is done by those where responsibility lies.

[Madam Deputy Speaker (Dame Rosie Winterton)]

I thank the Minister for his very comprehensive answers.

Virtual participation in proceedings concluded (Order 4 June)

Exiting the European Union (Building and Buildings)

Christopher Pincher Excerpts

Wednesday 18th November 2020 Commons Chamber

[The Minister for Housing (Christopher Pincher)]

I beg to move,

That the draft Construction Products (Amendment etc.) (EU Exit) Regulations 2020, which were laid before this House on 15 October, be approved.

The draft regulations were laid before the House on 15 October this year. They were debated and supported in the other place on 10 November. They are part of the Government’s programme to update European Union exit legislation to reflect the fact that we are now leaving the transition period under the withdrawal agreement and the Ireland-Northern Ireland protocol.

The regulations will amend existing construction products regulations in the United Kingdom using the powers in the European Union (Withdrawal) Act 2018. They will ensure that EU construction products legislation continues to apply in Northern Ireland, in accordance with the Northern Ireland protocol. They will also amend the remainder of the United Kingdom regime so that it applies to Great Britain only.

It is probably worth my taking a few moments to remind the House of some of the background. The EU construction products regulation, or CPR, is directly applicable in all EU member states and has applied across the United Kingdom since 2011. It seeks to remove technical barriers to the trade in construction products in the European single market.

The CPR harmonises the methods of assessment and testing, the means of declaration of poor performance, and the system of conformity assessment of construction products. It does not harmonise national building regulations. Individual member states remain responsible for safety, environmental, energy and other requirements applicable to construction works. Where an EU harmonised standard exists for a product, the CPR places an obligation on manufacturers, distributors and importers of that product when it is placed on the market. That includes a stipulation that the product must have been accompanied by a declaration of performance and affixed with a CE mark. This helps provide reliable information to industry and consumers about the performance of the product.

[Jim Shannon (Strangford) (DUP)]

One of the concerns I have in relation to this statutory instrument is the north-south movement of products for the construction sector, such as cement moving from Northern Ireland to the Republic of Ireland, and vice versa. There is also the movement of wood from the Republic of Ireland and across from Scotland and the mainland. Can the Minister confirm that a full consultation process has taken place with all those in the sector, and that they fully believe this will enable the construction sector to continue as it is? I say that because I believe the construction sector is able to lift the economy come 1 January next year, and the opportunity must be there. It should not be inhibited in any way.

[Christopher Pincher]

I am grateful to the hon. Gentleman for his intervention. He is a doughty campaigner for his constituents in Strangford and across Northern Ireland.

The amendments we are debating today are of a technical nature, but I can assure the hon. Gentleman that it is not the objective of these measures to inhibit in any way the transfer of goods between the Irish Republic and Northern Ireland or the transfer of goods between Northern Ireland and Great Britain. We want unfettered access to our mainland markets to continue, of course, for businesses and services in Northern Ireland. I will address those points in more detail in my remarks.

At the end of the transition period, the CPR becomes retained EU law and will form part of the United Kingdom’s legal system. We made the Construction Products (Amendment etc.) (EU Exit) Regulations in March 2019 to ensure its provisions will have practical application in the United Kingdom. That was, of course, before we had a withdrawal agreement or a Northern Ireland protocol.

Those 2019 regulations include the introduction of United Kingdom-wide provisions, such as the UKCA mark and UK-designated standards, in preparation for a no-deal Brexit but, of course, we have now left the European Union with a withdrawal agreement and a Northern Ireland protocol.

Without the amendments made by this instrument, the 2019 regulations would not be compliant with the Northern Ireland protocol, as they would have application to the whole United Kingdom, including Northern Ireland. Regulators would lack powers to enforce EU regulations in Northern Ireland, and manufacturers would not be able to test their products in the United Kingdom and affix the UKNI indication to place the product in the market.

The policy intent of these regulations is to keep the same requirements set out in the 2019 regulations in Great Britain but to introduce a Northern Ireland regime that complies with the Northern Ireland protocol. They do not change the key CPR requirements currently in place. The same standards will apply in Great Britain and Northern Ireland immediately after 31 December, as they did before the transition period, and products that meet Northern Ireland CPR requirements will have unfettered access to the market of Great Britain.

The effect of these regulations can be considered in three parts. First, they will amend the 2019 regulations so that current United Kingdom-wide provisions, such as UKCA marking and UK-designated standards, will become Great Britain-only provisions at the end of the transition period. A further effect of this territorial amendment is that it will ensure that EU construction products law will continue to apply in Northern Ireland, in line with the Northern Ireland protocol. As United Kingdom-designated standards will be identical to EU harmonised standards at the end of the transition period, there will be no change for businesses placing goods on the market in terms of the standards that must be met.

[Alan Brown (Kilmarnock and Loudoun) (SNP)]

I understand what the Minister is saying about standards still being the same when we leave the EU, but if we leave without a deal the UK will be a third country. What will that mean for the export to the EU of construction goods manufactured in the UK? Will a reciprocal arrangement have to be put in place to recognise those goods, so that they will not have to undergo additional checks and certification in the EU?

--- Later in debate ---

[Christopher Pincher]

We want unfettered access to the EU markets, and we want the same for them. That is why we are attempting to implement a trade deal. The standards between the United Kingdom and the European Union will remain harmonised, unless or until we introduce further regulations. Such regulations or changes will be available to debate, and I look forward to that opportunity.

Secondly, the regulations make provision for conformity assessment bodies established in the United Kingdom. They enable UK-approved bodies to continue testing against EU harmonised standards for the Northern Ireland market, and they introduce, as I have said, a new UK(NI) indication, as required under the protocol. Where the UK-approved body undertakes the conformity assessment activities required under an EU standard, the manufacturer must affix the CE marking together with the new UK(NI) indication. These regulations ensure that these CE plus UK(NI)-marked construction products will be recognised in Northern Ireland and in Great Britain. The details of the UK(NI) indication will be established under a separate instrument, led by the Department for Business, Energy and Industrial Strategy, and those regulations were debated in the House on 16 November.

Thirdly, these regulations amend existing UK-wide enforcement provisions so that they apply in Great Britain and restate EU CPR enforcement provisions in respect of Northern Ireland. For Great Britain, the regulations amend the enforcement rules to reflect that the CE marking on its own and the CE marking together with UK(NI) indicators will be recognised in Great Britain. For Northern Ireland, the regulations provide an enforcement regime in relation to the EU construction products law and the new UK(NI) indication.

Finally, the regulations make a small number of technical changes to correct deficiencies in the 2019 regulations arising from leaving the EU with the withdrawal agreement and the Ireland/Northern Ireland protocol.

To conclude, these regulations serve a very specific purpose: to amend the 2019 regulations to ensure that there is a functioning legislative and regulatory regime in both Great Britain and Northern Ireland. This is necessary in response to the withdrawal agreement and the Ireland/Northern Ireland protocol that the United Kingdom and the EU agreed in January 2020. Our overall approach to these amendments is entirely concurrent with both the policy and the legal intent of the European Union (Withdrawal) Act 2018, and enacts the policy that the Government set out in guidance to the industry in September.

I apologise for the detailed technicalities in these amendments, which are, effectively, amendments to amendments, but I hope that Members across the House will join me in supporting them. I commend the regulations to the House.

--- Later in debate ---

[Christopher Pincher]

We have had an interesting debate on what otherwise might be described as dry and technical matters, though in saying that I do not wish in any way to diminish or undermine the seriousness of the issues at hand, some of which I will address in my remarks. I thank hon. Members on both sides of the House for their contributions.



We are seeking a positive future trading relationship with the European Union that we hope will include a mutual recognition agreement on conformity assessment, supporting United Kingdom approved bodies and construction manufacturers alike. These regulations will come into force at the end of the transition period—in either scenario—and further legislation will be laid to implement such a trade agreement. The reason for these amendments is not a deal on free trade with the European Union, nor because we are attempting to diverge from the present harmonised rules on construction standards. It is simply that the present provisions, which will come into force at the end of the transition period, were made before the withdrawal agreement was agreed and before the Northern Ireland protocol was signed, and we need to amend them in the light of those—I think we would all agree—welcome advances.

I will address some of the points raised by hon. Members across the Chamber. With respect to building safety, I will not attempt to drain the debates that we have had across the Dispatch Box and around the Chamber over several weeks about the importance of dealing quickly with ACM and non-ACM clad buildings. As the House knows, the Government have put aside £1.6 billion for that purpose, and we keep the situation under review. We remain committed to maintaining the highest standards for construction products that are put on the market. Let me say to the hon. Member for Reading East (Matt Rodda) and to the shadow Minister, the hon. Member for Weaver Vale (Mike Amesbury), that the Building Safety Bill, which has been published in draft and will be brought forward as soon as possible, will implement the recommendations of the Hackitt review. We want to use that further to strengthen the regulatory oversight of construction products at a national level. This is not a race to the bottom; it is very much a race to the top in terms of standards.

The hon. Member for Kilmarnock and Loudoun (Alan Brown) also raised the question of where the CE designation will apply. The reason that we are transposing it into British law—Great Britain—is to ensure that businesses have an opportunity to prepare for any future changes in order to minimise business disruption. We are introducing the UK(NI) designation to ensure that any goods sold into Northern Ireland meet European Union CPR designated standards. Again, we want to ensure that the CE designation continues for a period of time. Will future regulations diverge? Well, that is a matter for the Government of the day. Any changes to our regulations will be debated in this place and the other place in the usual way, and the House will come to a conclusion. Should the European Union wish to change its designations, that is a matter for it. In those circumstances, the European Union would certainly have to comply with UK-wide designations, with the exception of the UK(NI) designation, which of course applies to Northern Ireland qualifying goods.

[Mike Amesbury]

What assurance can the Minister give the House that this divergence will not see a race to the bottom? We have talked about current standards, and it has been mentioned that there have been some major issues, including products that have been tested, and which have then been used either as fire breaks or to encase buildings. It has got to be a race to the top, rather than to the bottom. What assurances can the Minister provide?

[Christopher Pincher]

I am obliged to the hon. Gentleman for his intervention. We have always been at the forefront of good design and product safety, and I hope that nobody in the House will assume that somehow, because they are EU regulations, those regulations must ineluctably be better than our own. We will make sure that we have regulations that are suitable for our markets. We will make sure that we have really good regulations and that, as we leave the transition period, we maintain EU regulations, which are being incorporated, as I have said, into British law.

The hon. Gentleman asked a question about enforcement. One reason why we need to introduce the amendments to amendments is to make sure that local authorities, which are usually responsible for the enforcement of such regulations, have the wherewithal in England, Scotland and Wales and Northern Ireland to enforce the necessary regulations, whether they are the CE regulations that we are transposing in Great Britain, future regulations that we might apply or the construction products regulations that will continue to pertain in Northern Ireland. The enforcement regulations —I think Lord Blunkett asked about this in the other place, and my noble Friend Lord Greenhalgh replied—will be maintained as a result of these amendments.

What will happen in future? It is for my noble Friend Lord Frost and his negotiating team to win a great trade deal for the United Kingdom, and that is what he is endeavouring to do. I hope, given that the amount of trade in construction products is definitely in the European Union’s favour—something like £10.8 billion-worth of trade, compared with £4 billion and a bit the other way—it is in its interest to reach a good trade deal with the United Kingdom, to ensure that that trade continues to flow.

The Government believe that the regulations that we have laid before the House are needed to ensure that there continues to be a functioning legislative and regulatory regime for construction products at the end of the transition period and that it is, as I have said, in line with commitments set out in the all-important Northern Ireland protocol. I trust that I have answered all—or nearly all—the questions that have been put to me by Members in all parts of the House. If not, I am happy to write to them. With that, I conclude and commend the draft amendments to the House.

Question put and agreed to.

Resolved,

That the draft Construction Products (Amendment etc.) (EU Exit) Regulations 2020, which were laid before this House on 15 October, be approved.

[Mr Deputy Speaker (Mr Nigel Evans)]

Order. We are going to suspend for three minutes so that the Dispatch Boxes can be sanitised.

Leaseholders and Cladding: Greenwich and Woolwich

Christopher Pincher Excerpts

Monday 16th November 2020 Commons Chamber

[The Minister for Housing (Christopher Pincher)]

I congratulate the hon. Member for Greenwich and Woolwich (Matthew Pennycook) on securing this important debate on a matter of significant importance not only to him and his constituency but, as we have heard, to the hon. Member for Vauxhall (Florence Eshalomi) and my hon. Friend the Member for Carshalton and Wallington (Elliot Colburn), and to my hon. Friend the Member for Bromley and Chislehurst (Sir Robert Neill) and many other Members across the House. It is a national concern, and I pay tribute to the hon. Member for Greenwich and Woolwich for his remarks and his doughty campaign on behalf of his constituents, and I will try to address the points he raised during the course of my remarks.

First, however, I will provide some context. We established the building safety programme within days of the Grenfell Tower fire, and its aim has always been to ensure that residents of high-rise blocks are safe now and in the future. Our intention has been clear from the outset: that unsafe aluminium composite material of the type found on Grenfell Tower and other dangerous cladding must be removed from high-rise residential buildings. It is therefore our priority to ensure unsafe ACM cladding is removed and replaced swiftly, protecting leaseholders from unaffordable costs.

We want to see the completion of remedial works by the end of 2021, as the Select Committee report recommends. While many responsible building owners and developers—including Pemberstone, Barratt Developments, Legal & General, Mace, Peabody and Aberdeen Standard Investments—have taken action to remediate and fund the remediation of their buildings, some have not. Too many building owners and managing agents in the private sector have been too slow in getting remediation work started, and that is why the Government have intervened with the funding and the specialist support that we have provided. We will not tolerate any further delays. Where building owners are failing to make acceptable progress, those responsible should expect local authorities and fire and rescue services to take tougher enforcement action.

At the end of October, of the 460 identified high-rise buildings with ACM cladding, 363 buildings—that is 79% —have either completed remediation or had their ACM cladding systems removed. If we include the social housing sector, that figure rises to 97%.

We recognise that in London there is a disproportionate number of unsafe cladded high-rise buildings, so we have convened two London summits since September, bringing together the Mayor, key local authorities—including Greenwich—and the London Fire Brigade, to agree an action plan for accelerating the remediation of buildings, and my right hon. Friend the Secretary of State and my noble friend Lord Greenhalgh have been instrumental in that process.

Overall, the Government have set aside, as the House will know, £1.6 billion in funding. That covers the remediation not only of ACM cladding but of other types of unsafe cladding from high-rise residential buildings in the private and social housing sectors, and we have been guided in our approach by the recommendations of the Hackitt report. We made this money available to support the remediation of unsafe cladding, and a large proportion of that support will protect leaseholders from those costs.

We recognise that wider remediation costs will need to be met to ensure the safety of existing blocks of flats. However, as I am sure the House will accept, public funding does not absolve the industry from taking responsibility for any failures that led to unsafe cladding materials being put on these buildings in the first place. That is why we expect developers, investors and building owners who have the means to pay to take responsibility and cover the costs of remediation themselves, without passing on costs to leaseholders. We have heard that some are doing that, and they are to be commended, and others must follow their lead. That is the case for more than 50% of privately owned high-rise residential buildings with unsafe ACM cladding, and we expect developers and owners to step up in similar ways for other kinds of unsafe cladding.

We have always acknowledged that materials other than ACM are of concern, and we have been providing advice on their removal to building owners since 2017. The highest priority has, as we have heard, been the removal of the type of ACM cladding used on Grenfell Tower, because it poses the most severe safety risk, but other unsafe cladding materials must also be removed. As such, and for those cases where costs present a financial barrier to the pace of remediation, we have taken action. In March, we announced that additional £1 billion of funding, through the building safety fund, for the remediation of unsafe non-ACM cladding in the social and private residential sectors. The building safety fund is available for high-rise buildings with unsafe non-ACM cladding, such as those types of high-pressure laminate. We are already working to advance eligible applications to the fund to the next stage so that we can begin the remediation process as quickly as possible. The hon. Member for Greenwich and Woolwich suggested that there were very few processed applications, but I can assure him that there are many more than just a few. I look forward to presenting a fuller report, so that by the end of March 2021 we will see that that funding has been allocated in full, as we promised.

Although this funding is a much-needed step to make homes safer, we still expect a significant proportion of the remediation of unsafe non-ACM cladding to be provided by those responsible for the original work.

[Matthew Pennycook]

I thank the Minister for the detail he has provided in his response. I should make it clear that the statistics are his Department’s own published statistics, so if he has different figures, I urge him to bring those forward in the monthly publication so that we can see them. I am putting figures to him that his own Department has published. On developer liability, the Minister has again said “we expect”. I have sat in this Chamber and heard successive Ministers say that they “expect” developers and building owners to come forward, that it is morally right that they do so and that nothing is being taken off the table, but here we are in the same position many months if not years later. What are the Government actually going to do to compel developers and building owners to contribute more?

[Christopher Pincher]

I assure the hon. Gentleman that we have made significant progress with the processing of the applications. I look forward in due course—I hope it will be soon—to giving him better news than he supposes may be out there.

We have been clear that it is unacceptable for leaseholders to have to worry about cladding remediation costs to fix safety defects in their buildings that they did not cause. That is why—I say it again—where developers or building owners have been unable or unwilling to pay we have introduced funding schemes, providing that £1.6 billion of remediation to accelerate the pace of work and meet the costs of remediating the highest-risk and most expensive defects. We recognise that there will be wider works. We are accelerating work with leaseholders and the financial sector on solutions to deal with those wider works, and we believe that there will be a combination of options to deliver a solution—there will not be a quick fix, as the hon. Gentleman put it. I want to update the House and leaseholders on that set of options as soon as I can.

The hon. Gentleman also mentioned waking watch, as did the hon. Member for Vauxhall. I know that leaseholders have very significant concerns about the costs of interim measures, which have been heightened due to the covid-19 emergency. Waking watch is a short-term tool; it is no substitute for remediation. It is by targeting remediation funding where it is needed most—by removing and replacing dangerous cladding—that we can help make those homes safer more quickly and dispense with waking watches.

However, I recognise residents’ concerns about the costs of waking watch measures and the lack of transparency about those costs. That is why we have collected and published information on waking watches. The data will enable those who have commissioned waking watches to make comparisons and challenge providers about unreasonable costs. We have also identified, as a result of that work, that it can be cheaper to install alarm mechanisms rather than use waking watches. We will, of course, keep the situation under review.

[Florence Eshalomi]

On the specific issue of waking watches, a number of constituents represented by me, my hon. Friend the Member for Greenwich and Woolwich (Matthew Pennycook), the hon. Member for Carshalton and Wallington (Elliot Colburn) and many others are probably watching tonight and about to go to bed. Does the Minister agree that they will not be able to sleep because of not just the cost of the waking watch, but additional costs for which they may be billed?

The Minister talks about options, but these people have no option to rent or sell—there are no options for some of those leaseholders. They want the Government to step up now and look at how to address the interim costs—not costs in the future. For them, there are no options and there is no way out. They feel trapped, now.

--- Later in debate ---

[Christopher Pincher]

I am obliged to the hon. Lady; I entirely understand the great difficulty that many of her constituents and others will feel. It is a very worrying situation for them. That is why we have put aside so much money this financial year to help remediate those buildings that have no other way of speedy remediation and that need it most. As I said to her, we will keep the situation under review.

The hon. Member for Greenwich and Woolwich also raised the question of EWS1 and mortgages. It is wrong for leaseholders to find themselves unable to sell their homes due to lending restrictions. I am aware—we debated this earlier today—that EWS1 forms created by the industry to assist valuations of high-rise buildings of more than 18 metres are being asked for in some instances for buildings under 18 metres. The Government do not support that blanket approach to EWS1 forms or buildings. It is probably worth my repeating that, as the House will know, the EWS1 form is not a Government form but produced by the Royal Institution of Chartered Surveyors. Not all lenders require it; some lenders use other tools. The Secretary of State has been working with the finance sector and my noble Friend Lord Greenhalgh to find more nuanced mechanisms to deliver a satisfactory outcome for residents and leaseholders, but we do not support a blanket approach to the use of EWS1 forms on buildings. Buildings below the height of 18 metres should not have EWS1 forms applied to them. Buildings which do not have external wall systems should not have EWS1 forms applied to them. We must work with all the vigour and determination that we can muster with the financial services sector to persuade them to take a different course.

We want residents to feel safe in their homes and we want them to feel empowered. Residents will be back at the heart of the system and measures in the draft Building Safety Bill will make that a reality. The new regime will give residents a stronger voice in an improved system of fire and structural safety, overseen by a more effective regulatory framework, including stronger powers to inspect high-rise buildings and sanctions to tackle irresponsible behaviour. We remain consistent in our commitment to take forward a comprehensive programme of reform and to end unfair practices in the leasehold market.

Progress has been made since the hon. Member for Greenwich and Woolwich spoke in the Westminster Hall debate back, I think, in February. Homes are being made safer. Some 97% of buildings with ACM have, or are now in the process of, remediation. We are already working to advance eligible applicants for the £1 billion building safety scheme to the next stage, so we can begin the remediation process as quickly as possible. I can assure him that more progress than perhaps he thinks has been made and is being made.

[John Healey (Wentworth and Dearne) (Lab)]

Well, tell us then.

[Christopher Pincher]

All in good time. We have appointed a specialist set of consultants to increase the pace of remediation and we have introduced the Fire Safety Bill to strengthen enforcement action. The hard work continues. We have published the draft Building Safety Bill, which is a once-in-a-generation change to the building safety regime. It will be instrumental not only in shaping future policy to allow the new regime to prevent safety defects occurring in the first place, but in ensuring that people are safe and feel safe in their homes.

We will continue to work tirelessly and, I hope, across the Chamber, to bring about the lasting change we need, so that absolutely everyone in our country lives somewhere which is decent, which is secure, which is safe, which is their own and which they can be proud to call, and we can be proud to call, their home.

Question put and agreed to.

Oral Answers to Questions

Christopher Pincher Excerpts

Monday 16th November 2020 Commons Chamber

[Lucy Powell (Manchester Central) (Lab/Co-op)]

What support he is providing to leaseholders with properties that have dangerous cladding.

[The Minister for Housing (Christopher Pincher)]

We are providing £1.6 billion to speed up the removal of unsafe cladding and make homes safer, and to make them safer quicker. Where funding alone has not been enough to increase the pace of remediation, we are providing direct expert support to projects. We will continue to listen to leaseholders to resolve their concerns.

[Lucy Powell [V]]

I thank the Minister for his continued engagement on these issues, but, as he knows, the very difficult and serious issues now facing tens of thousands of leaseholders around the country are growing, not declining, and they are taking a serious toll on people’s lives and livelihoods. From buildings unable to get insurance, to the nightmares of acquiring an EWS1 form even for buildings with no cladding and the many now deemed out of scope of the building safety fund, this is becoming a national scandal and a real crisis for leaseholders. Will the Minister meet me and Manchester City Council to discuss an excellent piece of work that it has done on the wider and acute impacts of these issues on a place such as Manchester?

[Christopher Pincher]

I am obliged to the hon. Lady for her question and for the tone of it. Of course I will continue to engage with her and will happily meet her, as I think I did in July, to discuss these matters. She raised the EWS1 form particularly, and I think it would be worthwhile if I said a few words about it.

First, it is worth pointing out that the Royal Institution of Chartered Surveyors EWS1 form is not a Government document; it was devised by RICS and by the industry. Not all lenders require it; some use other tools. Lenders that do require it are working with us to ensure that there are more nuanced tools available to resolve leaseholders’ concerns. I should say, with respect to those lenders that use EWS1 forms for buildings less than 18 metres in height, that that is not something that the Government support. We do not support a blanket approach to the use of EWS1 forms. Lenders should use other tools in order to discuss the safety or otherwise of those sorts of buildings.

[Mike Amesbury (Weaver Vale) (Lab)]

Over three years on from the Grenfell tragedy and one year since the Bolton Cube fire, 203 high-rise blocks are still clad with flammable aluminium composite material, and many thousands more are clad with equally flammable high-pressure laminate. Minister, is it not about time to come clean about the serious limitations of the size and scope of the building safety fund? Up to 1.5 million people, such as Paul in Manchester, are desperate, trapped in this nightmare. What bold, urgent action does the Minister intend to take?

[Christopher Pincher]

I am obliged to the hon. Gentleman for his question. He will know, with respect to ACM cladding, that we have made £600 million available to remediate the most dangerous buildings. Something like 97% of buildings with ACM cladding have either completed or started their remediation. As a result of the expert support we have provided to private building owners, we have supported something like 100 ACM projects to remediation. With respect to the £1 billion fund for non-ACM-clad buildings, I can tell him that we have had a very significant number of applications, which have worked through. A very significant number have now been asked to make further information available, so we can advance those applications. We will get the money out of the door as quickly as we can. We will also encourage builders and owners to remediate the buildings themselves, because that is what they are obliged to do. It should not fall on the taxpayer to pay for remediation. It is the responsibility in the first case of building owners, through their warrantee schemes or through the original builders.

[Mr Clive Betts (Sheffield South East) (Lab) [V]]

Could the Housing Minister clarify the Government’s policy on what costs leaseholders should have to bear for the removal of cladding? On 20 July, the Secretary of State, in a written statement, very helpfully said:

“The Government are clear that it is unacceptable for leaseholders to have to worry about the cost of fixing historic safety defects”.—[Official Report, 20 July 2020; Vol. 678, c. 89WS.]

However, by the time we got to 16 October, the Housing Minister himself said we should look for solutions

“that protect leaseholders from unaffordable costs”.

So, not any costs, but unaffordable costs. When the Minister with responsibility for building safety came to the Select Committee on Housing, Communities and Local Government, he could only define “affordable” as costs that did not make someone bankrupt. Does the Housing Minister understand the great concern and upset that the change of policy has caused for leaseholders, who thought they would bear no costs but could now be faced with substantial bills? Will he explain the change of policy or, better still, go back to the original policy the Secretary of State identified that the costs should not fall on leaseholders at all?

[Christopher Pincher]

I am obliged to the Chairman of the Select Committee and I am grateful for the report that the Committee produced on cladding. There has been no change in policy. The Government are quite clear that we do not expect, and we do not want, leaseholders to bear the costs of remediation of unsafe buildings for which they were not responsible. That cost should fall on the owners, through the owners, the builders or any warrantee scheme the owners have.

[Mr Speaker]

Questions 20 and 21 have been withdrawn, so could we have the answer to the substantive questions, followed by David Linden from the SNP?

--- Later in debate ---

[Kenny MacAskill (East Lothian) (SNP)]

What recent discussions he has had with (a) firefighter unions and (b) local authorities on the Building Safety Programme.

[The Minister for Housing (Christopher Pincher)]

My Department is in regular contact with local authorities and the Local Government Association as part of the building safety programme. Local authorities play an important role in advancing remediation. They are routinely invited to meetings with officials and are represented on the early adopters group. Eleven local authorities across London attended the Department’s remediation summit in September.

[Kenny MacAskill [V]]

Difficulty in borrowing on or selling a home may be understandable when it is caused by unexpected natural events, climatic or otherwise. It is entirely unacceptable, though, when it is caused by obvious Government changes, especially to building regulations. The Fire Brigades Union and local authorities know what needs to be done, but it is only the Government who actually have the purse strings and can take the action to put homeowners out of the misery that they find themselves in. When will that be done?

[Christopher Pincher]

It is being done. We have made available £4 million to local authorities to support a data collection exercise looking at external wall systems. Together with the Home Office, we have made £20 million available to increase the capacity and capability of fire and rescue services in their conduct of fire protection activity. We are backing local authorities. We are backing the fire and rescue service. I only wish the hon. Gentleman knew that.

[Chris Bryant (Rhondda) (Lab)]

What discussions he has had with Cabinet colleagues on local authorities’ responsibilities for the stability and safety of disused coal tips.

[The Minister for Housing (Christopher Pincher)]

The Chief Secretary to the Treasury wrote to the hon. Member in October saying that he is expecting to provide £2.5 million needed for tip repairs in Tylorstown. The letter also clarifies that he is waiting to hear further from the Welsh Government on additional requests to access the reserve and is working with the Welsh Government’s Finance Minister on this very matter.

[Chris Bryant]

It is all very interesting that the Minister reads out a letter that I have already received, so I have actually read it, but it does not answer the question at all. My question is about how we are going to make sure that all the coal tips across the whole UK—because there is still no register of them in England and Wales—are properly accounted for and properly made stable and safe, so that we do not have another Aberfan disaster. I say this as much for constituencies in England as in Wales, because the real danger is that if we have had to find £12.5 million for a single tip in Tylorstown that fell into the river, imagine what the bill is going to be across the whole of England and Wales. It is time the Government woke up to this, and I really hope the Minister will answer the direct question about who is going to be footing the bill. Local authorities will be bankrupted by this if we are not careful.

[Christopher Pincher]

I was just checking that the hon. Gentleman had received the letter and that he had read it. He has, and I am pleased and grateful for his further contribution. He will know that Welsh local authorities started the 2020-21 financial year with over £1.4 billion of usable reserves. Of that, £200 million was general and unallocated. As I said to him, the Treasury is in discussion with the Welsh Government regarding the funding on this topic. Welsh authorities should discuss further funding with the Welsh Government and I encourage him to do similarly.

[Mrs Sheryll Murray (South East Cornwall) (Con)]

What financial support the Government is providing to local authorities during the November 2020 covid-19 lockdown.

--- Later in debate ---

[Mr Laurence Robertson (Tewkesbury) (Con)]

What steps he is taking to improve the supply of affordable housing.

[The Minister for Housing (Christopher Pincher)]

The Government are investing £12.2 billion in affordable housing over the next five years from next year. That includes £11.5 billion for the affordable homes programme, which we anticipate will provide up to 180,000 new affordable homes, should economic conditions allow. Furthermore, at spring statement 2019 we announced a new £3 billion affordable homes guarantee scheme, which will build on the success of the existing £3.24 billion scheme and support the delivery of new build affordable homes.

[Mr Robertson [V]]

I thank the Minister for that very full reply; it is good that so much work is going on. Does he think it might be useful to revisit the definition of affordable homes? In the past, we tended to use the definition of 80% of average market value, which, when prices are high—as they often are—is still not affordable. Will he consider that, please?

[Christopher Pincher]

I am always happy to consider my hon. Friend’s suggestions. He will know that the affordable homes definition in the national planning policy framework includes:

“Housing for sale or rent, for those whose needs are not met by the market”

and the assumption is that that is at 80% of average cost. Of course, we also have a social rent option that local authorities can leverage, and we have certainly allowed local authorities greater ease in developing their own social homes. I also point him to our first homes programme, which provides discounts of at least 30% on homes in perpetuity so that people can realise the dream of their own home.

[Jon Trickett (Hemsworth) (Lab)]

What assessment he has made of the adequacy of support given to local authorities in areas with high covid-19 infection rates.

--- Later in debate ---

[Andrew Selous (South West Bedfordshire) (Con)]

What steps he is taking to improve planning policy for Traveller communities.

[The Minister for Housing (Christopher Pincher)]

The Government’s response to the consultation on powers for dealing with unauthorised development and encampments proposed measures related to Traveller site provision and strengthening planning enforcement powers. I can confirm to my hon. Friend that further changes to planning policy will be considered as part of our reforms to the wider planning system set out in our White Paper, “Planning for the Future”.

[Andrew Selous]

In parts of the country, we have the double disaster of settled residents moving away in fear and Traveller children having the worst outcomes of any group of children. Can the Minister reassure me that the review that his Department is undertaking will put an end to the unacceptable situation in which both those groups find themselves

[Christopher Pincher]

My hon. Friend has campaigned long and hard on these issues, as have several others in the House. He will know that the Government’s overarching aim is to ensure fair and equal treatment for Travellers and their children, but we must not be blind to the rights of the settled community as well. The distress that some local communities face due to antisocial behaviour is unacceptable. Local authorities have a wide range of powers at their disposal, including the Anti-Social Behaviour, Crime and Policing Act 2014, but I can confirm to him that I will happily consider his and other proposals as we work through the contributions to the White Paper consultation, to ensure that our planning reform also encapsulates the concerns he raises.

[Alison Thewliss (Glasgow Central) (SNP)]

  If he will make a statement on his departmental responsibilities.

--- Later in debate ---

[Andrea Leadsom (South Northamptonshire) (Con) [V]]

My right hon. Friend might recall that back in the summer I wrote to him, along with my hon. Friend the Member for South Derbyshire (Mrs Wheeler), Lord Bird, who founded The Big Issue, and Robin Burgess, the chief executive of the Hope Centre in Northampton, who all wanted to recommend to him covid-safe sleeping pod-style accommodation for those who, despite the Government’s best efforts, will be sleeping rough this winter. Will my right hon. Friend tell me what steps he is putting in place to ensure that those who do end up on our streets are still safe and are not forced to be in night shelters, which for so many are truly terrifying places?

[The Minister for Housing (Christopher Pincher)]

I am obliged to my right hon. Friend for the concern that she evinces in respect of this matter. I am happy to update her. The Government are providing a £10 million cold weather fund to all local authorities, to help them to bring forward self-contained accommodation this winter. Our new £15 million protect programme is providing dedicated funding to local areas with the highest numbers of rough sleepers. Alongside that there is a £2 million transformation fund to help faith and community centres to move away from night shelters and into more innovative and positive options for shelter guests. I was pleased that my right hon. Friend directed me towards our noble Friend Lord Bird; I am happy to continue to engage with him and her, as is the Under-Secretary of State for Housing, Communities and Local Government, my hon. Friend the Member for Rochester and Strood (Kelly Tolhurst).

[Christian Matheson (City of Chester) (Lab)]

  Setting aside a general funding gap of about £56 million, and including an as yet unconfirmed £7 million income compensation scheme payment, Cheshire West and Chester Council will still be £1 million in the red because of covid activities. Will the Government refer back to the Chancellor’s promise to do “whatever it takes” and promise to make good on the covid funding gap? Or will they once again leave local governments dangling in the wind?

[Sally-Ann Hart (Hastings and Rye) (Con)]

My right hon. Friend and this Government have prioritised ending homelessness more than any other Administration. It is widely known that social housing can play a key role in preventing and ending homelessness by providing security of tenure, affordability and a safety net to thousands of individuals and families. This year’s affordable homes programme is welcome, but will my right hon. Friend please update the House on what measures he is taking to increase investment in social housing to help to end homelessness?

[Christopher Pincher]

My hon. Friend rightly points out the £11.5 billion that we have made available in the next five years to build 180,000 new affordable homes, a significant proportion of which will be for affordable or social rent. We have already heard about the £700 million or so in total that we are spending to tackle homelessness and rough sleeping, and I direct my hon. Friend towards the abolition of the housing revenue account cap, which allows local authorities to build social homes if they wish to. It is a local authority matter and we encourage them to do so.

[Chris Bryant (Rhondda) (Lab)]

Tempted as I am to ask a question about tips again, I am going to ask about something completely different: brain injury. Acquired brain injury is a hidden epidemic in this country, and local authorities often have to bear the significant costs when somebody’s neuro-rehabilitation has not been able to be followed through. With covid this year as well, there will be many thousands of families who would dearly love their loved one to be able to live an independent life, but they need local authorities to be able to step up to the mark. Will the Secretary of State meet me and others who are interested in the subject to see whether there is a way to get better co-reliance among all the different agencies that work with people with brain injury, including people who have neuro-cognitive problems from covid?

--- Later in debate ---

[Mrs Natalie Elphicke (Dover) (Con)]

For years, some water companies and Ofwat have failed to get a grip on repeated sewage and water flooding, including in the historic town of Deal. As a result, planning objections are mounting against the delivery of much-needed and wanted local homes. Will my right hon. Friend consider what more can be done to ensure that additional planned housing delivery can be matched by additional planned capacity in water, electricity and broadband utilities?

[Christopher Pincher]

I am obliged to my hon. Friend. She is a doughty campaigner for her constituents in Dover, and particularly, in this case, in Deal. She will know that the national planning policy framework makes it clear that local authorities should make provision for infrastructure, including water supply and energy, through their strategic planning authorities. As to what further we can do, our White Paper on planning reform proposes an infrastructure levy that will get that sort of infrastructure that she refers to in place at the get-go so that communities get not just the housing they need but the infrastructure to go with it.

[Mr Virendra Sharma (Ealing, Southall) (Lab) [V]]

Ealing Council is facing a funding shortfall of around £30 million even after efficiency savings and delaying investment. That is despite a promise from the Secretary of State that it would have everything that it needed to fight covid-19. Will the Secretary of State stick to his promise and give local authorities what they need, or will he be the one to explain why children’s centres, libraries and sports facilities have to close?

Draft Non-Domestic Rating (Rates Retention, Levy and Safety Net and Levy Account: Basis of Distribution) (Amendment) Regulations 2020

Christopher Pincher Excerpts

Tuesday 10th November 2020 General Committees

[The Chair]

Before we begin, I remind Members who decide to speak in these proceedings that Hansard colleagues would like any notes to be sent to [e-mail].

[The Minister for Housing (Christopher Pincher)]

I beg to move,

That the Committee has considered the draft Non-Domestic Rating (Rates Retention, Levy and Safety Net and Levy Account: Basis of Distribution) (Amendment) Regulations 2020.

It is a great pleasure to serve under your chairmanship, Ms Ali. I should begin with an apology, in that my hon. Friend the Member for Thornbury and Yate (Luke Hall) is self-isolating this afternoon. I am standing in for him as a small, but I trust no less perfectly formed, substitute.

The business rate retention scheme, which was introduced some eight years ago, allows local government to retain 50% of the business rates its raises locally and also keep 50% of the growth in business rates over and above the amounts delivered through the local government financial settlement. Authorities have estimated that, in 2019-20, growth in business rates will give them £2.5 billion of additional funding to support the delivery of local services. The underlying principle of the business rate retention scheme is simple. If an authority is responsive to local business and helps to grow its local economy, it will retain the resulting increase in business rates, which can be reinvested in its local economy and used to support local services.

However, as has often been said, particularly on the Floor of the House, the operation of the business rate retention scheme is technically very complicated. It is governed by a number of pieces of secondary legislation, which provide the framework for the calculations and rules that govern how and when the business rates collected from ratepayers are distributed among central Government, billing authorities, often district councils, and major precepting authorities, often county councils. The regulations before the Committee make several important technical amendments to the underlying regulations to update the existing framework. This is vital to the administration of the business rate retention system and will ensure that all parties receive the funding they are due.

The regulations make three main changes. They ensure that the correct calculation of the income retained by authorities that have, or have had in the past, a higher level of retained business rates income; they make the necessary changes to the rates retention system, following the most recent local government restructuring; and they adjust the calculation of retained rates income against which we determine levy and safety net payments, to ensure that local authorities are not doubly compensated for giving business rate relief for telecommunications infrastructure. I will deal with each change in more detail and explain why they are needed.

The rates retention scheme is governed by a number of pieces of secondary legislation, the most important of which are the Non-Domestic Rating (Rates Retention) Regulations 2013 and the Non-Domestic Rating (Levy and Safety Net) Regulations 2013. These regulations establish the key building blocks of the day-to-day administration of the rates retention system, including council shares of locally retained business rates income and their safety net thresholds and levy rates. Since 2017, we have allowed any number of local councils to keep more than 50% of their business rates income—the original top threshold, which was set in 2013. The devolution deal areas—Cornwall, the West of England, the West Midlands, Greater Manchester and the Liverpool city region—retain 100% of their business rates income. In the two subsequent years, following a competitive process, a number of other local authorities were chosen to be part of a business rate pilot programme, under which they retained 100% or 75% of their business rates income in 2018-19 and 2019-20 respectively. Regulations were made to give effect to those changes. Unfortunately, given the complexity of the 2019-20 regulations a few minor omissions or errors were made in the framework for that year’s pilots. Those include errors in some of the 75% pilot’s levy rates, the apportionment of the collection fund balance for one authority and the uprating of the top-up and tariff payments for London and those authorities that were 100% business rate retention pilots in 2019-20. The regulations simply put those errors right. In acknowledgment of that, they will be made free of charge to any party who purchased the 2019 regulations as local authorities often do. In addition to these changes, the regulations also provide for the uprating of the devolution deal authorities top-up and tariff payments in 2020 and 2021.

The regulations before the Committee also make minor changes consequent on Buckingham restructuring from 1 April 2020. The new Buckinghamshire unitary authority will replace its predecessor county council and its constituent district councils—Aylesbury Vale, Chiltern, South Bucks and Wycombe. For the most part, that requires no changes to the secondary legislation that governed the business rates retention scheme because all that happens is that the values that appeared in regulations in each of the predecessor authorities are simply aggregated to give the corresponding value for the new unitary. But we need to make a couple of changes when aggregated values would produce an incorrect result for the new unitary authority. Those are an adjustment to a figure that determines the cost of operating in Buckinghamshire and helps determine how much the new authority needs to cover the costs it will incur in collecting business rates and administering the tax and an updated value for the new Bucks unitary used to calculate its small business rate relief compensation.

Similarly, Bournemouth, Christchurch and Poole Council and Dorset Council have been in place from 1 April 2019 following the rearrangement of the Dorset authorities. Since that change, the two authorities have agreed on amended splits of their revenue support grants. Revenue support grant is included within the settlement funding assessment measure, which the business rates retention system uses as the basis for distribution of any surplus on the levy account. A surplus on the levy account occurs when levy payments exceed safety net payments in that year. The regulations therefore make a small amendment to the basis of distribution to reflect the revised split of revenue support grant. I should say at this stage that those changes are being made at the request of those authorities.

Finally, the regulations make an amendment to the calculation of retained rates income, against which levy and safety net payments for authorities are determined. To avoid doubly compensating local authorities for awarding telecoms relief, for which they are already given a section 31 grant of compensation, the levy and safety net calculations must add back the compensation for business rate reliefs received by the authority as a result of changes made by the Government—in this case, we add back the value of the telecoms relief awarded. By doing so, we ensure that local authority safety net payments are not artificially increased, or levy payments decreased, by the compensation that they receive.

In conclusion, the regulations are highly technical—I can well understand why my hon. Friend the Member for Thornbury and Yate did not want to be here to discuss it. They are required to make a series of minor amendment to update the framework on which rates retention is run for 2019-20 and 2020-21. In making those changes, no new policies are introduced. The regulations simply ensure the fulfilment of the original policy intention, as approved in previous years, via the settlement or by statutory instrument.

I commend the regulations to the Committee.

--- Later in debate ---

[Christopher Pincher]

I am grateful to the hon. Lady for what I think is her support for the amendments to the regulations, although I have to say that she is being a little ungenerous to the Government, given the support we have provided to local government in the last financial year of a 4.4% increase in real terms in core spending power—the largest injection of cash into local government in more than a decade—and the support we have given to local authorities that are working exceptionally hard to help their communities through the pandemic.

The hon. Lady will know that we have already allowed the award of £2.6 billion in business rate payments that local authorities would normally make to central Government. We have paid £1.8 billion in grant aid to local authorities, and £11.2 billion, which would otherwise have been paid in business rates via hospitality, retail and leisure, will be returned to local government. According to a quick, rough estimate on my part, that is £15.6 billion to local authorities. We should also remember that the Government have spent approximately £30 billion for local authorities, local communities and businesses as a result of the pandemic. We will keep the services and support we provide to local government and beyond under review.

The hon. Lady asked about future changes to the business rate retention scheme and any reliefs. Until we know what the business landscape is like in local government once the pandemic has abated, we cannot make any commitments to specific changes, but my right hon. Friend the Chancellor of the Exchequer will keep the situation under review. We will address future funding through the spending review—or before if necessary—in the usual way.

Question put and agreed to.

Housing: North Somerset

Christopher Pincher Excerpts

Tuesday 3rd November 2020 Commons Chamber

[The Minister for Housing (Christopher Pincher)]

I congratulate my right hon. Friend the Member for North Somerset (Dr Fox) on securing this debate and on his, as ever, eloquent contribution. I am always keen to hear his views. I am also keen and happy to look at his maths, and happy to discuss what the colouring of the maps might be. I am grateful for the insights that he has given to us. The issue of housing, including housing numbers, is of great importance to many Members across the House, including my hon. Friend the Member for Weston-super-Mare (John Penrose), who also spoke with great prescience and insight, and I am happy to discuss his ideas at some future point.

I think we would all agree that, to achieve the aims of our manifesto commitment of building 300,000 new homes a year by the mid-2020s, we need to find the right balance, which is ambitious in its vision for the future of our planning system and house building, and fair. That is why we recently set out our long-term vision in our planning White Paper, “Planning for the future”, the consultation on which closed last week.

We believe that the proposals will create a reformed system that not only delivers the houses that we need, but puts communities at the heart of a process that encourages more community engagement from the very beginning, so that people play a fuller part in the proactive place-making of their environment. Right now, something like 2% of local populations take an active role in individual planning applications. That percentage can fall as low as 1% in the development of local plans.

The proposals will also encourage fairer contributions from developers—a point made by my right hon. Friend the Member for North Somerset—with a new infrastructure levy to fund critical infrastructure and affordable housing. The proposals will contribute to more beautiful homes and communities through local design codes, as mentioned by my hon. Friend the Member for Weston-super-Mare, with pattern book approaches. They will also deliver stronger environmental outcomes, protecting our green belt and our precious green spaces.

At the same time as we launched the planning White Paper, we set out our proposals for the shorter term in our consultation on changes to the current planning system and local housing need calculation. As I said in the Backbench Business debate on the issue a couple of weeks ago, however, some of the numbers we have seen bandied around from the Commons Library or the Lichfields assessment are entirely speculative.

The consultation on the local housing need methodology closed on 1 October, and we are working through the feedback from it. I have heard today, in the Backbench Business debate and in discussions with right hon. and hon. Members across the Chamber, concerns that have been expressed about the proposed changes, in particular some areas that might see increased levels that they will find difficult to plan for.

We have tried to approach the process fairly, based on evidence, because the evidence shows that for too many people homes are simply unaffordable. That is why I should be clear that both the current and the proposed standard method have a focus on affordability, because it cannot be right that in areas where, historically, supply has simply not kept up with demand, people are prevented from living where they most want to, or where they most need to, in the places that perhaps they call home.



Indeed, it is a question of intergenerational fairness. We need to build more homes to help young people on to the housing ladder and also help some of the most vulnerable people in society—some of our elderly. We must consider the question of affordability. However, as I said, I have heard hon. Members, most recently my right hon. Friend the Member for North Somerset and my hon. Friend the Member for Weston-super-Mare, who are concerned about the effect that this might have on the geographical balance of our country—that there may be too many homes in the south and not enough in the north.

That is why we are looking at other levers, such as stock renewal—regeneration of places—where it is required, generally in the industrial west midlands and the industrial north. We are looking at all-important city regeneration, as mentioned by my hon. Friend the Member for Weston-super-Mare. We are committed, in the national planning policy framework and in our consultation proposals, to further brownfield development, and we are committed to reimagining our town and city centres.

That is why we have introduced permitted development rights statutory instruments that allow for the demolition and rebuilding of commercial property to make it easier to turn that into residential property. We have introduced changes to use classification to make it easier for town centres to accommodate more residential accommodation so that they can once again become the places they used to be before, perhaps, the 1970s and the 1960s—places where people live as well as work.

I am in no doubt that achieving the right balance is critical. We need to challenge the affordability issues that bedevil so many people in our country and the places that they want to live.

[Matt Western]

Will the Minister give way?

[Christopher Pincher]

I am happy to give way to the hon. Gentleman, because I am sure he wants to raise a point about North Somerset.

[Matt Western]

The Minister is very generous. I want to concentrate on that point about affordability. In his vision, does he see that there is a role for council house or council flat building? Surely, as the right hon. Member for North Somerset (Dr Fox) illustrated about his area—I am sure it is true across the country—truly affordable accommodation must be delivered through council house building as well.

[Christopher Pincher]

The hon. Gentleman will know that we have made it easier for councils to build council houses. He will know that, through the affordable homes programme that the Chancellor and my right hon. Friend the Secretary of State announced in September, over the next five years we will inject £12.2 billion into house building. We will build 180,000 new homes in our country, about 50% of which will be affordable and for social rent. I am pleased that the hon. Gentleman raised that point, and I am pleased to have been able to make the point to him that we are building those affordable homes where they are necessary.

That is why we are looking at housing need now, considering carefully how each element of the formula that I described works together so that we can ensure that we achieve the right distribution of homes in the most appropriate places and address any perceived imbalances. We have consulted, as I said, on each element of the indicative formula, and we are reflecting carefully on the feedback we have received.

[Dr Fox]

May I take my right hon. Friend back to what the market has actually delivered over time? Does he accept that if councils are given targets for housing that are utterly unrealistic in relation to the numbers that have been built over time, the Government are likely to miss their own house building target, because houses will not be built in those areas to the extent that the Government would like, and that the process can be self-defeating if the correct balance is not achieved?

[Christopher Pincher]

My right hon. Friend makes a good point. That is why I said that we are looking very closely at the consultation feedback that we have received. As part of the consultation on the “Planning for the future” White Paper, we have asked providers of feedback to consider how we can improve the duty to co-operate between local authorities so that we get the right sorts of homes spread over the regions of our country. We know that political geography does not always map easily on to economic or physical geography, so I recognise what my right hon. Friend says.

I will make a couple more points before the fickle finger of time points us towards the door of the Chamber. My right hon. Friend raised the issue of infrastructure. We recognise that the present system of infrastructure levy does not work. We have heard that 80% of local authorities think that the system of section 106 contributions is too slow, and negotiations between councils and developers cannot be relied on fully to provide what communities truly need, when they need it. That is why, in the White Paper, we have proposed a more widely set infrastructure levy. That will simplify the system and ensure fairer contributions from developers.

Crucially, we want to ensure that the levy provides funds up front for the required infrastructure—the schools, roads, clinics and playgrounds that local people expect to see if new, good-quality, sustainable homes are being built around them. We are consulting on whether the levy should be set nationally, or locally or regionally to take account of regional economies.

My right hon. Friend raised the question of build-out and land-banking. He will know that Sir Oliver Letwin produced a report on build-out a couple of years ago. He found no evidence of speculative land-banking, but we all recognise that developers do not always build out at the pace that we would like. Our proposals will help to achieve that speedier build-out, but I look forward to considering the ideas in the consultation, so that we can better incentivise developers to build out.

My right hon. Friend referred to flooding. He will know that we are considering carefully whether we need to make further changes to the national planning policy framework to protect areas at risk of flooding from unnecessary and inappropriate building. We should not lose sight of the Government’s successes over the past 10 years. There have been half a million additional new homes since 2010, and 240,000 of those were built in England last year alone. We can be proud of that.

I thank everybody who has contributed to this debate. We need to get this right, and that depends on what we build, and where we build. I look forward to reading the many contributions of my right hon. Friend the Member for North Somerset and my hon. Friend the Member for Weston-super-Mare to the two consultations that have just concluded, and look forward to further debates on this matter.

Question put and agreed to.

DRAFT COMMUNITY INFRASTRUCTURE LEVY (AMENDMENT) (ENGLAND) (NO. 2) REGULATIONS 2020

Christopher Pincher Excerpts

Monday 19th October 2020 General Committees

[The Minister for Housing (Christopher Pincher)]

I beg to move,

That the Committee has considered the draft Community Infrastructure Levy (Amendment) (England) (No. 2) Regulations 2020.

It is a pleasure to serve under your chairmanship, Mr Hollobone.

The regulations were laid before the House on 28 September. If they are made, they will provide for relief from the community infrastructure levy for First Homes—the Government’s proposal to ensure that a sustained and ongoing supply of new homes is available to first-time buyers for a discount of at least 30%. Local authorities will be able to prioritise local residents and key workers, when appropriate, and can increase the discount to 40% or 50% where affordability is most challenging. The properties will maintain their discount when they are sold on to all future purchasers in perpetuity, so the community will continue to benefit for generations to come.

The Community Infrastructure Levy Regulations 2010 came into force in April of that year. They enable local planning authorities to raise a levy on new development in their local area to fund a wide range of infrastructure to support development. Mandatory relief from CIL can be obtained for charitable developments, self-builders and certain types of affordable housing. The tenures currently benefiting from mandatory relief from CIL include social rent, affordable rent and shared ownership. That relief helps to fund the sale of those properties by the developer below the value that they may be able to achieve on the open market. Discretionary relief from CIL can also be provided for discounted market homes sold at at least 20% below market levels if the CIL authority adopts a policy of offering such relief in its area.

The draft regulations introduce a new mandatory relief from CIL for a new affordable housing tenure, namely First Homes. Introducing the mandatory exemption from CIL for First Homes will ensure that developers are not disadvantaged when delivering this new type of affordable housing tenure as it will receive the same relief from CIL as other forms of affordable housing. Our First Homes policy is the realisation of a manifesto commitment to allow councils to use developer contributions to discount homes in perpetuity. We published a consultation on the proposals on 7 February. It ran for 12 weeks, closing on 1 May, and we formally responded to it on 6 August.

As part of that consultation, we proposed implementing a mandatory exemption for First Homes from CIL in line with that for other forms of affordable housing. A large majority of respondents to the consultation agreed that that would increase the supply of First Homes, representing a strong mandate for proceeding with the proposal. The Committee will be aware that the Government are consulting on fundamental changes to the planning system, including an overhaul of developer contributions. I want to make it clear that the draft regulations make changes to the current system and have no bearing on those consultation proposals.

Turning to the detail of the instrument, regulation 49 of the 2010 CIL regulations provides for a mandatory relief from CIL for housing units that fall into certain categories of affordable housing. The instrument amends regulation 49 to add an additional criterion for CIL relief: the home must be sold for no more than 70% of its market value, with a planning obligation entered into to ensure that that will be the case for all future sales. That is a deliberately broad definition of a First Home. We always intended to put local flexibility at the heart of the policy and do not wish to fetter that flexibility by over-defining the exemption criteria in legislation. We will issue guidance to ensure that more detailed criteria, such as the prioritisation of first-time or local buyers, are implemented.

The draft regulations also specify the clawback period for First Homes—the period during which charging authorities are able to charge CIL if the relief conditions are not adhered to. They state that the clawback period for First Homes will end on the date of first sale, provided all the conditions have been met. We do not consider the seven-year clawback period for other affordable tenures to be appropriate for a product such as First Homes. Our view is that a developer will have fulfilled its obligations at the point that it sold the home for the appropriate discount as long as a legal mechanism to ensure that the discount is passed on exists.

The instrument makes a small amendment to regulation 49A of the 2010 regulations, which allows charging authorities to apply a discretionary relief from CIL for homes sold with a discount of at least 20% of market value—discount market sales, as they are known in national policy. Under the 2010 regulations, the clawback period for that discretionary relief is set at seven years. In the interests of consistency, the draft regulations ensure that the clawback period for discount market sale homes is the same as that for First Homes and ends at the point of the first sale, as long as the conditions are met.

Contributions from developers play an important role in delivering the infrastructure that new homes and local economies require. I assure the Committee that these minor technical amendments are designed to maintain the status quo and not disrupt it. Currently, the vast majority of homes produced by developers as part of their obligatory contributions already enjoy an exemption from CIL. Our policy is not to increase the contributions, but to ensure that, as part of them, a certain proportion of homes are delivered as First Homes. The draft regulations ensure that developers are not unduly penalised for delivering this new type of tenure, and I commend them to the Committee.

[The Chair]

The debate can last until 6 o’clock.

--- Later in debate ---

[Christopher Pincher]

I regret that the hon. Gentleman and his colleagues propose to vote against this small technical amendment, not least because they are essentially setting themselves against the 87% of people in our country, many of whom are young people, who say time and time again, when asked, that they want to own their own home. The measures before the Committee will enable young people more easily to own their own home, but unfortunately the Opposition are choosing to set their sights against that.

The hon. Gentleman cited many numbers in his remarks. May I gently remind him that last year we built 240,000 new homes in our country? We built more social homes—council homes—in one year than the last Labour Government did in 13. We have abolished the housing revenue account cap to allow local authorities to build homes. We have also extended the period within which they can use their right- to-buy receipts. We have therefore taken firm action not only to support the building of new homes, but to build the array of discounted homes that our country needs.

[Mike Amesbury]

In the last year of the previous Labour Government, 28,000 social homes were built. In the year to which I was referring, the figure was less than 6,300. That is a fact—it is on the record.

[Christopher Pincher]

The hon. Gentleman knows full well that Wales has been unable to build more council homes in a year than there are members of a Welsh rugby team, so we will not take too many lectures from the Labour party about building homes.

The hon. Gentleman talks about affordable homes, but let me remind him of the affordable homes programme that we announced only last month. We announced £12.3 billion of funding to build affordable homes in our country, which is the largest such cash injection for 15 years—and that is on top of the last affordable homes cash injection. We estimate that, economic conditions allowing, that will build 180,000 new homes, the majority of which will be for discounted or social rent. We have taken a firm stand to build the right homes that our people want and need.

The hon. Gentleman mentioned section 106. He will know that over 80% of local authorities and developers say that the present system is too opaque and too slow, and does not deliver the infrastructure and affordable homes that are required. That is one of the reasons why, in our “Planning for the future” White Paper, we are consulting on a change to the developer contribution levy: from a split between CIL and section 106, to a simple single infrastructure levy that might be set locally. I encourage him and his colleagues to look at that White Paper and the consultation, and to submit their thoughts accordingly.

I am confident that, as a result of the consultation that we undertook earlier this year, which received a great deal of feedback and closed on 1 May, in which 77% of respondents said that these proposals will bring forward more First Homes—they are right—

[Steve McCabe (Birmingham, Selly Oak) (Lab)]

Will the Minister give way?

[Christopher Pincher]

I am also confident that the proposals that we are considering today are right. I encourage the Committee to support them, and I discourage the Opposition from setting their face against the right to home ownership.

[The Chair]

Does the hon. Member for Birmingham, Selly Oak (Steve McCabe) wish to make a speech?

Capital Infrastructure Projects: Bristol

Christopher Pincher Excerpts

Wednesday 14th October 2020 Westminster Hall

[The Minister for Housing (Christopher Pincher)]

It is a great pleasure to serve under your chairmanship, Ms Ghani.

I congratulate the hon. Member for Bristol East (Kerry McCarthy) on securing this short but important debate. It seems to me that she has set up shop in Westminster Hall this afternoon. But in all seriousness, the debate that she has led is an important one. I also congratulate the hon. Members for Bristol South (Karin Smyth) and for Bristol North West (Darren Jones), and the honoured interloper, my right hon. Friend the Member for Kingswood (Chris Skidmore), on their contributions.

Let me begin on a very positive note, which is that I certainly enjoyed my visit to Bristol earlier this year, just before the covid emergency caused us to have lockdown. The rain did not alter the fact that it is clearly a buzzing and thriving city, as the hon. Member for Bristol East described it, and I shall be very happy to visit it again when circumstances allow, to see the work that she, her colleagues and other leaders from the city and the combined authority are undertaking.

As we lay the foundations for our recovery from the covid emergency, the Government are determined to invest in communities such as those in Bristol and across the western gateway, so that we can get them back on their feet and fulfilling their potential. I am heartened by what I have heard about the collaborative work being done across the community and across the city, between leaders and partners, to realise their vision for sustainability, activity and inclusive growth. It is right that we look to build on that momentum together and support our regions in this levelling-up opportunity, and that will be the focus of the upcoming spending review.

I understand that city leaders and the metro Mayor are working together across sectors in response to the pandemic to support the region’s journey to recovery. The Government are also committed to playing their part in providing immediate financial stimulus and capital infrastructure investment. The getting building fund is just one recent example of that commitment to job creation and the green recovery, accelerating shovel-ready projects in local areas. It is a £900 million fund targeted at places facing the greatest economic challenges as a result of the pandemic. We announced more than 300 successful projects in August, which were agreed with mayors and local enterprise partnerships to boost economies and local growth.

The west of England received £13.7 million in funding for seven projects through the getting building fund, and the seven projects are expected to directly create 1,144 jobs. In addition, the west of England has secured £202 million from the local growth fund, which has helped to fund a number of important projects in the city of Bristol, including £6 million for the Bristol Beacon, to transform that iconic music venue; £4.7 million for the city of Bristol’s Advanced Construction Skills Centre; and more than £7 million for the MetroWest phase 1, which was referenced by several colleagues earlier—a project that will see the reopening of the Portishead line and the introduction of half-hourly services on the Severn Beach line, significantly improving rail connections to and around Bristol.

The region has seen a further investment through an £80 million transforming cities fund and £6 million of funding to create an enterprise zone in the centre of Bristol, where small, innovative businesses can prosper. I make this commitment on behalf of my right hon. Friend the Chancellor: we will look carefully and considerately at all sensible projects that are brought forward. I will not make specific commitments on his behalf, but we are keen to ensure that, through the spending review and through other avenues, buzzing and thriving cities such as Bristol are supported. I encourage colleagues across the House and in local government to submit their thoughts and ideas for the spending review.

[Kerry McCarthy]

I got the impression the Minister was concluding, but maybe I am wrong and there is a lot more to come. It is important to stress that, although Bristol is a successful, buzzing, thriving city, there are inequalities, as we saw with the recent Black Lives Matter protest, and the constituency of my hon. Friend the Member for Bristol South (Karin Smyth) has the lowest staying-on rates in education and higher education in the country. Bristol is very much a city where there are inequalities and a need to level up.

[Christopher Pincher]

I hear what the hon. Lady says, and I will say a little more about the single housing infrastructure fund in a moment. She will know, of course, that a few weeks ago we announced our next iteration of the affordable housing programme with £12.3 billion of investment in affordable homes, the majority of which will be for discounted rents.

To address a point the hon. Member for Bristol South made about the Planning Inspectorate, I cannot comment on specific matters before it, but I am always keen to talk to colleagues there to ensure that the inspectorate is working at pace to quickly yet judiciously work its way through the applications and cases before it. Of course, it has the challenge of the covid backlog to deal with, but I know that people are working very hard in that regard.

The Government’s continued commitment to levelling up also means building the homes that this country needs, and I am glad to hear that Bristol has ambitious plans for house building. We remain committed to driving up supply in areas that really need it. I have mentioned the affordable homes programme, which we believe will support 180,000 new affordable homes for ownership and rent over the next four years in the percentages that I described.

We have also supplied an additional £450 million to boost the home building fund to help small developers—small and medium-sized enterprises are crucial in our recovery—to access finance for new housing developments. As the hon. Member for Bristol East will know, we have radical plans to reform our planning system to make it more democratic, transparent and speedy.

[Darren Jones]

Will the Minister set out how his Department works with the Department for Transport when allocating funds for significant housebuilding to ensure that transport infrastructure is funded alongside that? I and many of my constituents welcome the investment in housing—not just in Bristol, but in south Gloucestershire—but the commuter traffic problem is of great concern. The mass transit system, for example—the development of Bristol Temple Meads and the extension of the rail network—seems like an obvious investment that should go alongside housebuilding.

--- Later in debate ---

[Christopher Pincher]

The hon. Gentleman will know that the MetroBus system is already up and running, and there are plans to extend it further. As for his specific question, we work closely with other Departments on supra-regional issues—let us call them that. We also have the single housing infrastructure fund, which is an ambitious fund to ensure that we can provide the infrastructure required to unlock the housing that is needed by his community and others—I will say a little more about that in a moment. It is essential that we have the right infrastructure—the roads, schools and GP surgeries—and it is right that that is put in place before people move in. That is one objective of our new planning proposals and of the infrastructure levy that we will put in place alongside the single housing infrastructure fund to ensure that the right infrastructure is put in place at the right time.

In the short time remaining, I will say a few words about green recovery. Tackling climate change is also a priority for the Government. Last year, the United Kingdom became the first country in the world to put into law the ambition to wipe out our contribution to climate change by 2050. I am glad to hear from colleagues —either directly or outside the Chambers—that there are projects for sustainable energy infrastructure in and around Bristol, and I will keep my eye on them.

Investment is only part of the picture, however. If we are to secure a rapid recovery from the pandemic, as well as deliver on our levelling-up agenda, we will need a comprehensive place-based strategy with central Government and local government working in lockstep with businesses to target the specific challenges and opportunities that our communities face. The devolution and local recovery White Paper will be published by the Minister for Regional Growth and Local Government, who represents Thornbury and Yate and who will set out plans with cities such as Bristol, and their surrounding areas, at the heart of that vision.

I also want to mention the United Kingdom shared prosperity fund. I appreciate that local leaders want to be on a secure financial footing so that they can continue to drive innovation and invest in local infrastructure, and that includes the certainty of replacement of EU structural funds. The 2019 manifesto committed to creating a shared prosperity fund, which binds the whole United Kingdom, to tackle inequality and deprivation in each of our four nations. The Government will create a fund that is easier for local areas to access and will further support places to recover from the effects of covid-19.

We recognise the key role of local partners in EU structural funds, and we will continue to work closely with interested parties across the United Kingdom on the design of the new fund, taking into consideration what has worked in the past and how we can best deliver on domestic priorities. Final decisions about the fund will take place after the spending review. I look forward to further opportunities in this Chamber, or near to it, to further update the House and colleagues.

[Karin Smyth]

I appreciate the opportunity of yet another fund, but I gently say to the Minister that we have been talking today about projects that are ready and have been in the pipeline for a long time. We have gone through lots and lots of processes. We are all of one mind, and we would like the Government to talk across Departments, do a bit of joined-up thinking and focus, recognising how ready and willing we are to just get on with it.

[Christopher Pincher]

I am grateful for that prompt from the hon. Lady. I recognise the value engendered in the Temple quarter regeneration programme. All propositions that are put forward have to be considered carefully on their merits. There are some tight business case requirements to meet. If they are not met—as with the last housing infrastructure fund bid, unfortunately for the proponents—I would encourage people not to lose heart, but to redouble their efforts and submit again. Our ambitious fund is designed to help communities that need support, and we are determined to give that to them.

I thank the hon. Member for Bristol East for leading the debate, and I congratulate all Members, including my right hon. Friend the Member for Kingswood on his contribution in support of the Temple quarter. I look forward to looking closely at the propositions that have been made, and to debating them robustly, if necessary, across the Chamber in due course.

Question put and agreed to.

[Ms Nusrat Ghani (in the Chair)]

In order to allow the safe exit of hon. Members participating in this item of business and the safe arrival of those participating in the next, I am suspending the House for two minutes.