English Devolution and Local Government

Clive Betts Excerpts

Wednesday 5th February 2025 Commons Chamber

[Angela Rayner]

I am disappointed when things are on social media first. I respect this House, Madam Deputy Speaker, and I have come here at the earliest opportunity to update the House.

On the cancelled elections, councillors in those areas are elected, and we have delayed for reorganisation only under exceptional circumstances, where councils have come forward. As I have made absolutely clear, the delay is for a year, from May 2025 to May 2026. As I stated earlier, I turned down many more councils because I believe that democracy is crucial. There is an active role for district councils. We are working with districts and local authorities to ensure that the consultation period and reorganisation are being done with them, not being done to them. It is incredibly important to stress that.

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

May I follow up on two issues? First, following the comments made by the Chair of the Levelling Up, Housing and Communities Committee, while devolution arrangements are being put in place, there is still pressure on councils to deliver existing services. Will the Secretary of State look at some additional short-term funding to help council officials with that process? Secondly, in the longer term, we will need a lot of very good councillors to deliver the new authorities. Will she look once again at reinstating the right of councillors to become part of the local government pension scheme, so that people who often give up financially in order to be councillors do not have to do so in the long term, with reduced pensions?

[Angela Rayner]

We recognise the pressures on councils. We are delivering a real cash increase to councils, with £5 billion more in the settlement. The Minister for Local Government and English Devolution will be leading a debate on that later today. We recognise that councils had it difficult under the previous Administration, which is why we are working with them. We are giving them real-terms increases to their budgets and we want to see reorganisation that focuses on the delivery of service for the people who desperately need it.

Local Government Finance

Clive Betts Excerpts

Wednesday 5th February 2025 Commons Chamber

[Jim McMahon]

I think that that is true up to a point, but we need to take a couple of factors into account. First, the payment relating to employer national insurance contributions goes straight to the council. Secondly, this needs to be taken in the round. For the right hon. Gentleman’s own council, the social care grant is £48 million, the social care change grant is £6.7 million, and when it comes to third-party providers, the market sustainability and improvement fund is £10 million. We are trying to meet the demand in a very complex environment, but, as I have said, there is no pretending that this will fix a broken system in one fell swoop. The reform will take time.

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

My hon. Friend has done an excellent job on behalf of local government with this settlement, in very difficult circumstances, and I think the sector recognises that. However, I have one caveat. In response to the questions about council tax, he said that there would not be unanimity, but I think there will be a great deal of consensus that if the former Secretary of State, Michael Gove, thinks the system is regressive, it is probably very regressive. I hope my hon. Friend is keeping his mind open—I think he did leave the door a little ajar—about the fact that at some point we will have to have a review of a system that is based on valuations that are more than 30 years old. This is simply not sustainable for the long term.

[Jim McMahon]

I take my hon. Friend’s points entirely. I credit him for much of the work that was done when he chaired the Select Committee, which he did for a long time, and I attribute to his intervention the credibility that it is due. We are focusing today on our immediate fiscal response to support councils over the current financial year, but we accept that to bring about long-term structural reform, such matters as addressing a council’s ability to raise local tax through business rates and council tax must be taken into account, alongside, of course, the cost of delivering public services, including the cost of rural service delivery. We are absolutely committed to taking all those factors into account.

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[Kevin Hollinrake]

I will come on to that, but we do have a different perspective. The point that I am making principally right now is that there are rising costs on councils, both in direct costs through national insurance and through indirect costs, which are not fully covered by this settlement, and I think the Minister accepted that fact earlier in his remarks.

The reality is that rural areas will face higher council tax increases to make up for reduced central funding, despite the cost increases of providing services in rural areas. To give the House an easy example of this, my local authority, North Yorkshire council, spends more on school transport than it does on the whole of children’s social care. That is the cost of delivering services in rural areas. Despite that, the Labour Government have chosen to scrap the rural services delivery grant. They have said that they are repurposing it, but it is now clear that this has not been repurposed to support rural areas in the way that the delivery grant used to do, despite the higher cost of service delivery in those areas.

The chairman of the County Councils Network, Tim Oliver, has warned that rural areas will lose hundreds of millions of pounds due to Labour prioritising urban areas over rural ones in the way that it distributes funds. The Government are moving distribution away from a needs-based formula to one based on deprivation. He has warned that Labour’s funding formula will mean that rural councils would lose an estimated £190 million in a single year. He has also stated that, when taking into account the moneys needed to cover the costs of the national insurance increases, this is the worst settlement for county councils in four years.

[Mr Betts]

Can the shadow Secretary of State just explain his comments? I agree with my hon. Friend the Member for Stoke-on-Trent Central (Gareth Snell) that the hon. Gentleman one of the more reasonable Members on the Conservative Benches. He said that the Government are switching money away from a needs-based formula to one based on deprivation. Is not deprivation very clear evidence of needs in the community? What is the difference?

[Kevin Hollinrake]

Of course there are some needs around deprivation, but that is not the entirety. The major cost drivers for local authorities are the things that I outlined earlier: adult social care, special educational needs and temporary accommodation. There may be some crossover, but the reality is that simply basing that on deprivation will not work for all authorities; some will be worse off as a result of moving from need to deprivation.

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[Florence Eshalomi (Vauxhall and Camberwell Green) (Lab/Co-op)]

I welcome the real-terms funding increase in the settlement, in the context of a decade of cuts and financial mismanagement. The Minister outlined the additional funding for the children’s social care prevention grant, which will help provide vital services for children in their formative years, which is really important. There is the £660 million recovery grant for places with greater need and demand for services. It is important that we continue to focus on prevention, to stop us getting to a situation where many councils are asking for a bail-out later on.

I would like to remind Members of the consequences of the situation that our councils face up and down the country. For some councils, it means the end of community programmes that keep people active, or that mean people can go out and speak to others. I hosted an event last week on loneliness. Many of our constituents report feeling lonely, and those vital community services keep them active. Because of the situation that councils face, some children who are in need of an education, health and care plan are not getting that support, and we see some parents and carers having to quit work just to get adequate provision for their young people. It means that more and more families are ending up in completely unsustainable temporary accommodation, and we hear stories of families having to travel three to four hours every day just to get to school or work. No one should have to go to bed at night and be unable to sleep because they fear that the accommodation they are in could harm their family. Seventy-four children have had their deaths linked to temporary accommodation in the last five years. We are one of the richest countries in the world. This should not be happening.

People rely on our council services for their wellbeing, and we need to end the chronic underfunding of those vital services. We must remember that what we see today is the result of a false economy of underfunding local government for over a decade. For years we have had to see councils cut vital prevention services just to make ends meet. The result is that more and more people are in dire need of those services, which are far more costly not just to the local authority, but to the livelihoods of the people who need them. We see that in private rented sector inspections, in maintaining and repairing our housing stock, and in providing the vital youth services that my hon. Friend the Member for Croydon East (Natasha Irons) referenced, which boost the life chances of teenagers and young adults. If we are honest, the tragedy of the last 14 years is that it has seen more costly services for our local residents.

This settlement is a welcome step in the right direction to help councils meet some of the pressures they face, but again, if we are all honest, many of our councils will still struggle to provide the vital services that residents need and deserve. I am sure that many Members eagerly anticipate the start of the Housing, Communities and Local Government Committee’s inquiry on local government finances. As Chair, I do not want to pre-empt what we will discuss over the next few months, but I want to raise a few specific points with the Minister today.

The Minister knows—he has received representations on it and Members have raised it—that because large councils are big employers, they will be impacted by the rise in national insurance contributions, as the shadow Minister, the hon. Member for Thirsk and Malton (Kevin Hollinrake), referenced. He also referenced the LGA data, which indicates that even with the additional generous funding outlined by the Minister, councils will still be short by over £100 million to cover the extra cost for directly employed staff. The Minister touched on the service expenditure cost, but there is still a gap that needs to be filled. Is the Minister considering the impact that will have on staffing pressures in our councils, and have the Government considered the effect of indirect costs through the commissioned providers? Our councils do not exist in a bubble. The impact of other Government spending areas, such as health and welfare, will have a drastic effect on the costs that our councils face.

I come back to an issue that I have raised multiple times, as the Minister knows. I remain concerned about the impact of freezing local housing allowance at a time when private rents have gone up by nearly 10%. That could create extra and significant burdens on the vital and well thought-out homelessness prevention work that our councils do. Will the Government finally confirm what work they have done to assess that risk; whether freezing LHA will impact on families who are struggling with rising rents; and what pressures—unintended, maybe—that could place on homelessness services across the country?

[Mr Betts]

My hon. Friend raises an important point on local housing allowance. When we considered that issue in the Public Accounts Committee, it was pretty obvious that officials had not done any proper assessment of the impact that freezing the allowance would have on homelessness. Something ought to be done. If the Government take the major step of freezing an important allowance, they ought to know what impact that will have on other services.

[Florence Eshalomi]

I thank the former Chair of the Housing, Communities and Local Government Committee —I know of the work that his Committee did on this issue. The reality is that we need to build more homes. The Government have an ambitious target, but our residents need somewhere to live in the interim. That will mean more strain on the private rented sector and on rents. I hope that the Minister is considering that impact in his work with officials from other Departments, including the Department for Work and Pensions.

Will the Minister inform the House about the details of the public health grant for 2025-26? That will play such a vital role in addressing major health inequalities, which we all want to see reduced in our respective areas. We are talking about treatment for drug and alcohol services and smoking prevention, for example. I declare an interest as a co-chair of the all-party parliamentary group on HIV, AIDS and sexual health. Vital sexual health services help to address health inequalities, so it is vital that councils get funding—and certainty about it.

Extra money is only part of the solution. Some residents will yet again face higher council tax bills next year. They have the right to scrutinise, ask and ensure that every penny of that is spent in the right places, but the reality is that accountability in local government is far too often not fit for purpose. As the Minister knows—he referred to it—the situation got so bad that the National Audit Office refused to sign off the whole of Government accounts for the first time ever in November last year. Only one in 10 councils submitted reliable data for 2022-23, and over 40% did not submit any data at all. The Minister outlined the mess that he inherited, and the measures that the Government are taking to deal with the backlog, but we must ensure that we do not find ourselves in this position again.

The Minister also referred to the local audit office. Will he confirm what additional long-term steps the Government will take to address local government auditing? The consultation closed recently, on 29 January, and I would be grateful if he would outline a timeline for updating the House on that. I know that he shares my desire to give councils the support and flexibility they need. The first step in that is to fix council finances. We welcome the Government’s commitment to multi-year settlements from 2026-27 to give our councils the certainty that they have lacked for so long. I hope that he and the Government will remain open-minded to some of the reforms that our Committee will look at, so that we can all see councils up and down the country delivering the effective services that our residents need and deserve.

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[Mr Will Forster (Woking) (LD)]

Local government should be the bedrock of our communities. Councils should be empowered to deliver local services and invest in infrastructure, and they should be planning to make sure their communities prosper. Instead, years of Conservative mismanagement have left councils across the country on the brink of financial collapse.

Nowhere is this clearer than in my constituency of Woking. Woking borough council faces debts of over £2 billion. That debt is a direct result of reckless local decisions made by the Conservatives, enabled by a former Conservative Government who refused to step in until it was too late. This catastrophic black hole has had devastating consequences for my constituents, and because of this crisis and that Conservative legacy, public services have been—and continue to be—stripped back. Community projects are now a second thought, and council tax has gone up. As Woking’s new Member of Parliament—elected seven months ago, mind you—I have regularly raised the plight of my council’s finances and those of the whole local government system with the Minister and the Department, and I will continue to do so.

[Mr Betts]

On these occasions, I always sit and wait for the Lib Dems to accept some responsibility for the financial mess they created in local government. There was a 50% cut in grants to local government during the 14 years, and the biggest part of that cut came during the coalition Government. Is it not time that the hon. Member stood up on behalf of his party and apologised for his role in austerity, which created this crisis?

[Mr Forster]

I was about to be nice to the Minister and the team before the hon. Member intervened, which is quite ironic.

I am very grateful that the Government have listened to the concerns of distressed councils, including mine. Unlike the previous Government, who imposed higher council tax rises and higher interest rates as a punishment for bankruptcy, this Government have listened, and I am grateful to the Minister for doing so. That has saved my council alone millions of pounds. What I found very surprising was the brass neck of the shadow Secretary of State, the hon. Member for Thirsk and Malton (Kevin Hollinrake), when he criticised this Government for their tax rises; the previous Government punished my council with a 10% council tax rise because it dared to go bankrupt as a result of Conservative decisions. I have urged the Minister to not impose the same level of council tax rises as the previous Government, and I hope he will not do so.

Thanks to the work of the Liberal Democrats who now run Woking council and the amazing council staff, Woking is turning a corner, but I really worry for its future and that of councils like them, and the District Councils’ Network worries as well. The Minister has highlighted that there is no reduction in any local authority’s funding this year, but the DCN says that 0.3% is the average cash increase in core spending power for boroughs and districts. That is not good enough. Those councils shape their areas—they protect homeless people—and a 0.3% increase in core spending power is just not acceptable.

Turning to county councils, the County Council Network says that four in 10 of its members say that they are in a worse position than before the autumn Budget and the financial settlement, and one third say that their service reductions next year will now be severe. Considering that there is very little fat left to cut, I really worry about those services.

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

I am pleased to say that this is one of the first occasions for many years when in speaking in this debate, I do not have to stand up and say how badly Sheffield is being treated, because we have got a fair settlement for the first time in 14 years. Sheffield is a well-run council, and I congratulate Councillor Tom Hunt, the leader of the council, and Kate Josephs, who is the chief exec. We are not at a financial cliff edge. This settlement will not resolve all the problems and difficulties that the council has, but it does mean that the cliff edge is a bit further away, and the council has a bit of room to look at and take serious decisions about resource allocation and trying to continue with—and in some cases hopefully improve—some of the services.

In this settlement, Sheffield council has received £16.5 million from the recovery grant, which is right. We have lost out in so many settlements, because we are a deprived community, and deprived communities had the biggest cuts of all during the years of austerity. That is the reality. Some 60% of our properties are in band A. Putting council tax up does not bring in the same amounts of money as it does in more affluent areas, and it is right that the Government have recognised that.

We have an increase in the grants for social care and homelessness provision, and that is welcome, though I have to add a caveat. The council is saying to me that those grants still do not cover the increased costs it is facing in those two areas. Indeed, the national insurance increase has not been totally compensated for by Government. There are some challenges and issues in the settlement. It is not 100%, but it is an awful lot better than where we have been previously, and that is what we must remember.

I am sure the Minister recognises that this is the easy year. We come to the real challenges next year with the longer-term settlement. A three-year settlement is absolutely right. Fair funding will be looked at, and that is absolutely right. It cannot carry on. The previous Government were going to do a fair funding deal 10 years ago, but they never got around to implementing it. Clearly that review is needed; it is just a question now of getting on and doing it. We recognise that is a massive challenge.

If we are going to get that settlement right for the three years, we have got to address children’s social care, SEND provision, homelessness and the fight for temporary accommodation between different Government Departments, which drives costs up. Those issues need resolution. We also need a resolution to adult social care, although I understand that may not come until a couple of years afterwards. If we can at least sort the other issues out, it will be a significant step forward.

I will raise three other issues briefly, because I appreciate the shortage of time. I can see the Chairman of the Public Accounts Committee, the hon. Member for North Cotswolds (Sir Geoffrey Clifton-Brown) on the Opposition Benches, and he will probably recognise this point. We have been told clearly by the Treasury that from next year, Departments must not spend money allocated for capital projects on revenue. The way that local Government has had to be bailed out in the past few years is by capitalising revenue expenditure. What happens if the Treasury locks down that activity? Has any thought been given to that? It clearly needs some thinking about.

The Chair of the Levelling Up, Housing and Communities Committee, my hon. Friend the Member for Vauxhall and Camberwell Green (Florence Eshalomi) mentioned public health. Why is the grant late once again? I accept that is probably not the Minister’s responsibility, but he referred to prevention being important, and it is, and that is exactly what public health is about. From next year at least, can we get the public health grant at the same time as the local government grant?

Finally, I echo the comments about the hard work of local government staff and councillors in particular. Many councillors lose money, and there is a real challenge about getting younger people to become councillors. I asked the Secretary of State earlier about that, but she did not respond directly to my question. When will the Government look at reinstating the right for councillors to join the local government pension scheme? For many younger councillors, that is a real difficulty. They come in, they lose money, but they also lose their pension in the longer term, too.

[Florence Eshalomi]

I declare an interest as I served as a local councillor, like many colleagues in this House. It is about not just the pension; the additional costs that younger councillors face now to go in and serve their local community may be off-putting. On top of that there is the level of abuse that local councillors face for carrying out their public duty. Does my hon. Friend agree that the Government should look at that?

[Mr Betts]

I do. I welcome arrangements being put in place for the police to give more protection to councillors in that space. Recognising the financial strains, particularly for younger councillors, does not take a lot of money. I ask the Minister to allow that to happen.

I forgot at the beginning to declare my interest as vice-president of the Local Government Association. I am sure that it is pleased with the settlement. The Minister recognises the challenges that have been outlined—they are to be faced in future years, but I thank him for this settlement today.

Oral Answers to Questions

Clive Betts Excerpts

Monday 20th January 2025 Commons Chamber

[Alex Norris]

I have no doubt that the Opposition will have all the information they need to scrutinise the Government of the day—we always provide that with full transparency. What I will not accept is that the sand our economy was built on after the past four years, under the Conservative Government of the shadow Minister and the shadow Secretary of State, is somehow this Government’s failure. In reality, the hon. Gentlemen knows, exactly as we do, that we are fixing the mess that they left. Of course, they will have the chance to oppose us along the way, but we will get on with delivering for the British people, and they will get on with carping from the sidelines. I know where I would rather be.

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

14. If she will take steps to support social housing providers to fund houses made available under section 106 of the Town and Country Planning Act 1990.

[The Minister for Housing and Planning (Matthew Pennycook)]

I recognise that social housing providers need support to build their capacity and make a greater contribution to affordable housing supply, including via section 106. To assist in that, we have proposed a new five-year social housing rent settlement and permitted councils to keep all their right-to-buy receipts.

[Mr Betts]

I know that my hon. Friend is committed to increasing the provision of social housing. In the past few years, most social housing has been provided through section 106 agreements. According to the National Housing Federation, thousands of houses around the country are available but cannot be purchased under section 106 agreements because registered social landlords simply do not have the resources. I am sure that he is aware of that problem, but does he have any plans to deal with it and bring those houses, which are badly needed, back into use?

[Matthew Pennycook]

The Government certainly recognise the ongoing challenge posed by the reduced appetite of registered providers of social housing to buy affordable homes delivered under section 106 agreements. As I hope my hon. Friend is aware, the Homes England section 106 affordable housing clearing service was launched back in December alongside the revised national planning policy framework, with the aim of supporting buyers and sellers of section 106 homes to find each other more effectively. We are calling on all developers with uncontracted section 106 affordable homes, as well as providers and local planning authorities, to engage proactively with that new service. We will consider what further measures may be necessary to address the problem, informed by data from that service.

Provisional Local Government Finance Settlement

Clive Betts Excerpts

Wednesday 18th December 2024 Commons Chamber

[Jim McMahon]

Given the hon. Gentleman’s background, I am surprised that he is displaying such ignorance of council finance. The Government’s role in local government finance is to be an equaliser. As he knows, everywhere has the ability to raise tax locally through council tax and business rates, but he also knows that some areas have the ability to raise far more than others because of their tax base. It is the job of the Government to equalise—to make sure that when it comes to demand for services, everywhere gets the service provision it needs. That requires the Government to provide more funding in some places to reconcile that lower tax base, so that everyone gets the services they are entitled to. The presentation that the hon. Gentleman has offered shows either ignorance or politics, but I think the country deserves better.

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

I very much welcome today’s statement and the extra funding that has been announced. I commend the Minister for repeatedly reminding the Conservative party of 14 years of austerity, during which local government saw bigger cuts to its budgets than any other part of the public sector. Of course, the Lib Dems were a party to the coalition Government when the worst of those cuts were made.

May I ask my hon. Friend two questions? First, when he comes to consider more fundamental reforms—which we accept will not be in place for another year—will he look at the council tax system as a whole? It is an unfair and regressive system that takes a disproportionate amount of money from the poorest people in the poorest houses. Secondly, can he confirm that the local audit office will be a stand-alone body that looks at public sector audit, not an add-on to the audit, reporting and governance authority—a previous proposal—which was basically to be a private sector body that looked at local government as an afterthought?

[Jim McMahon]

I thank the former Chair of the Housing, Communities and Local Government Committee for that question. I can confirm that the core spending power of that element in this settlement for Sheffield will be 8.5%, which is before the additional funds that will follow. Sheffield gets a good settlement from this, but we recognise that it is in a context of growing demand, so we hope councils see that we are meeting them on the challenge they face.

On whether we will review council tax, I think every Government recognise that there are huge limitations with council tax, and also huge geographical variations. It is regressive, which is the nature of a tax based on property values rather than the income of the people in them. However, council tax is understood, its collection rates are high and it is really the foundation—although not the total, as my hon. Friend knows—of the funding of council services. The urgent issue we need to face is that previous Governments moved away from their role as the equaliser in the system. Whereas the revenue support grant used to be in place to support councils by reconciling lower tax bases, recent Governments have been missing in action. We are saying to councils of all political stripes, across every type of authority and every part of the country, that we will reconcile that and work with them to equalise the situation.

On the local audit office, we are absolutely determined that this will not be a return to the Audit Commission. We are trying to do a number of things. First, we want to rebuild the early warning system to make sure that we see any systemic problems developing in the system. However, we also recognise that the cost of audit has increased by 150%, which is a direct cost to taxpayers, and that there is fragmentation in the market, and we need to look at the fall-back position as opposed to auditor supply. There is quite a lot that we need to deal with, but this is very much about the provision of audit and making sure the early warning system is rebuilt; it is certainly not a blow to the inspection regime.

Building Homes

Clive Betts Excerpts

Thursday 12th December 2024 Commons Chamber

[Matthew Pennycook]

I am afraid that I cannot give either, Madam Deputy Speaker, but I will add the invitation to the list of requests for visits that I receive from Members across the House. However, I commend the hon. Lady’s local authority for its focus on quality and good design. We want to see more of that across the country.

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

I declare my interest as a vice-president of the Local Government Association.

I welcome the commitment to overall house building targets—we cannot hit a national target with clear local targets. I welcome in particular the commitment to social housing. Will the Minister confirm that that means social housing, not the affordable housing that the shadow Minister mentioned? There is a big difference there. The viability of brownfield sites is lower and section 106 contributions will be lower, so if we are to concentrate on brownfield sites, will the Minister make the point to the Chancellor that to deliver social housing in the numbers needed, she might have to reconsider the amount of social housing grant that she provides?

[Matthew Pennycook]

My hon. Friend has real expertise in this area. We are making a distinction between social rented homes—the most affordable type of affordable housing—and others, and we have sought to express that through a change to the glossary in the framework that separates social rented housing from other forms of housing. He is right that brownfield delivery involves additional challenges. We are very cognisant of those, and we are exploring how the variety of Government funds that support the delivery of brownfield sites might be improved as we go forward.

Planning Committees: Reform

Clive Betts Excerpts

Monday 9th December 2024 Commons Chamber

[Matthew Pennycook]

I have to say, it is quite rich hearing the hon. Gentleman crow about planning permissions in the system. We are experiencing the lowest number of planning permissions and completions for a decade, as a result of the Conservatives’ changes to the national planning policy framework, made in December 2023, which torpedoed supply and hit growth across this country.

The hon. Gentleman also asked about the NPPF. We fully intend to bring forward a revised NPPF before the end of the year. These changes do not relate to the NPPF, as I made clear in my initial response. We are consulting, in an initial sense, on the changes before bringing forward formal proposals for consultation alongside the planning and infrastructure Bill—another part of the Government’s reform agenda.

The hon. Gentleman rightly made it clear that 96% of decisions are already made by planning officers. The other 4% of decisions, though, are incredibly important; they represent a substantial portion of total units in the planning process, because many major applications go to a planning committee for consideration. While we know that there is good practice out there, the number and type of applications that committees consider still varies widely between local planning authorities. Some committee decisions are not made in accordance with material planning considerations, and some committees repeatedly revisit or relitigate developments that have already been considered by elected members through the local plan process. We need to streamline the local planning system in order to provide the homes and places that we need, and to empower trained planning professionals to get the best use out of the system.

The hon. Gentleman also asked about neighbourhood plans. I have been very clear on several occasions in the House that the protections for neighbourhood plans in the NPPF will remain. As well as firm proposals on this proposition around modernising planning committees, we will bring forward further details about changes to the national planning policy framework in due course.

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

My hon. Friend will know that I am passionately committed to local councils and local democracy, but does he understand the frustration that many of us feel when a planning authority democratically approves a local plan after consulting the community, but then, when an application is made to build homes, the same councillors turn down the application, despite it being consistent with the local plan? Is the Minister’s main objective to try to remove that sort of decision making, which holds up the whole process, and to ensure, in consultation with the Local Government Association and others in local government, that we can find a better way forward, so that we can get the permissions to build the homes that the country badly needs?

[Matthew Pennycook]

I thank my hon. Friend for that question. He has huge expertise in this area from his time as Chair of the Housing, Communities and Local Government Committee, and he is absolutely right. We have been clear that the best way for local communities to shape the decisions about what to build, where, is through local plans. It is appalling that we have inherited a situation in which less than a third of places are covered by up-to-date local plans. We need to boost that, and—[Interruption.] If the hon. Member for Hamble Valley (Paul Holmes) will allow me, what we are looking at, in the changes that we are consulting on, in a soft form, through the working paper, is how we can ensure that planning committees make decisions on the most significant and controversial applications, including those that are not in line with local plans, rather than spending their time poring over decisions that have been made in an allocation framework through the local plan process. Hon. Members will see in the working paper that one of our proposals, for a national scheme for delegation, would require all applications that are in accordance with the development plan to be determined by officers. That will free up committees to focus on controversial development that is out of step with the local plan that elected members and officers put forward after consultation with their communities.

Grenfell Tower Inquiry

Clive Betts Excerpts

Monday 2nd December 2024 Commons Chamber

[Angela Rayner]

The hon. Gentleman is absolutely right. I was speaking to families of the bereaved earlier, and I made sure to reiterate that, while this Chamber might not be full, I think I speak on behalf of the whole House when I talk about making sure we continue to learn the lessons of Grenfell. As for working with the devolved Administrations to learn those lessons, that is absolutely important. We have seen other fires internationally, across Europe—some of the survivors and the families have told me this. It is not just here, but abroad too, that people are in this situation, and we need to make sure that we continue to keep our residents safe here.

I can announce today that we have published our response to the emergency evacuation information sharing plus consultation, which provides details of our new residential personal emergency evacuation plans policy to improve the fire safety and evacuation of disabled and vulnerable residents in high-rise and high-risk residential buildings. Under those proposals, residents with disabilities or impairments will be entitled to an assessment to identify necessary equipment and adjustments to aid their fire safety and evacuation. Fire and rescue services will also receive information on vulnerable residents, in case they need to support their evacuation. We have committed to funding next year to begin this important work by supporting social housing providers to deliver residential PEEPs for their tenants. Future years funding will be confirmed at the upcoming spending review, and statutory guidance has been updated to provide for evacuation alert systems in all new blocks of flats over 18 metres. This means that, with our most recent move to provide sprinklers in all new care homes—strengthening protections for some of the most vulnerable—we have now addressed all of the recommendations made by the Grenfell inquiry to the Government in its phase 1 report.

The Prime Minister and I, and the rest of this Government, are determined that industry will deliver real change. As the Government, our role is to ensure that that change is delivered—a generational shift in the safety and quality of housing for everyone in this country. We now need leadership from industry to step up the pace on cultural change across the construction sector, but more crucially, we need a cultural shift that is about empowering people so that we put people and safety first, not profits. That is what needs to change. It is in that spirit, inspired by the Grenfell community’s incredible strength and tireless campaigning, that we will continue to push industry to deliver the necessary changes. Let me be crystal clear: we will be holding industry to account as closely as we need to. I know that Members across this House share my desire that this report be a catalyst for change.

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

I thank my right hon. Friend for giving way on the point about industry’s responsibility. It is right that social housing tenants and leaseholders should not have to bear the burden of rectifying these buildings. Individual developers and the development industry have been financially held to account, at least to a significant degree, but the one part of industry that has got completely away with it so far is the product manufacturers. So far, they have not been asked to pay anything towards rectifying the buildings, and as the Grenfell inquiry showed, they are responsible for a lot of the problems. Will my right hon. Friend indicate what consideration is being given to a scheme to make sure the product manufacturers pay their fair share of the costs?

[Angela Rayner]

My hon. Friend is absolutely right. We are continuing to see what measures we can take, and I have taken nothing off the table. I am working with my officials to make sure that those who are responsible are the ones who pay, not taxpayers.

Important progress has been made since 2017. Fire and rescue services are better trained and better prepared for large-scale emergencies, improvements have been made to local authority building enforcement, and a poor culture among tenant housing associations is being tackled through regulation. However, we must go further. If you speak to those who live in unsafe buildings, it does not feel like there has been progress—it does not feel like progress to them. They still feel trapped, powerless in the face of a system that is not designed for them, so this Government are acting.

--- Later in debate ---

[Angela Rayner]

I have been very clear with developers by asking why somebody would want to purchase a home from a developer that is not seen to be taking action on remediation. That is why we have got many of them round the table to sign up to this acceleration plan. I do believe that they want to remediate this problem. It has been too long and things need to change. We are clear that there will be consequences for landlords for failing to act. With the support of Parliament, we will put in place legislation to ensure that they do.

The London borough of Tower Hamlets recently became the first local authority in England to successfully obtain a remediation order, and I expect to see many more in the future. To ensure that regulators can act, we will provide £33 million in the next financial year to local authorities, fire and rescue authorities and the Building Safety Regulator, so that they can tackle hundreds of cases per year. We will provide a further £5 million to the recovery strategy unit to increase its capacity to act. Let me be clear that this includes, where necessary, pursuing landlords in the courts. The industry must act now to fix the thousands of unsafe buildings that must be made safe. It must take seriously its obligations to remediate buildings and to design, construct and maintain buildings safely.

If you own an unsafe building or you are a landlord who is not fixing a building, this Government will make sure that you do, and we will propose legislation to ensure that you do. There can be no more delay, no more excuses and no more obstruction. To make the change that this Government and the Grenfell inquiry demand, we must build effective services that command public trust and confidence, and that are fit for the 21st century. Those who flout their responsibilities will have nowhere to hide. We will take direct action to hold to account those who are failing to meet their obligations. That is why we have committed to a system-wide reform of the construction products regulatory regime, and why we will consult on robust sanctions, penalties and liabilities against manufacturers.

I can update the House that we have made good on our pledge to write to organisations identified by the inquiry for their part in this tragedy. Organisations will hold different levels of responsibility, but I can announce that we will publish guidance early next year to support the first set of decisions that will stop the most appalling companies from being awarded Government contracts.

As I have said, the system itself needs reform. Statutory guidance on building regulations covering fire safety and building design is now subject to continuous review by the Building Safety Regulator, but I want to go further. I can announce today that I have asked the regulator to undertake that a fundamental review of the building safety regulations guidance will be produced, updated and communicated to the construction industry, because we must get this right.

[Mr Betts]

I thank my right hon. Friend for giving way once again. To go back to the issue of the product manufacturers, I am really pleased to hear what she says about Government contracts for the worst offenders, but will she consider giving guidance to local authorities and other public bodies, such as the NHS, to make sure that they are also aware of the need not to award contracts to these companies?

[Angela Rayner]

Yes, I am happy to look at that issue. The spirit I am trying to get across is that we have to have a cultural shift, and everyone has to play their part in ensuring that that happens. I am willing to look at anything the Government can do to make it happen.

--- Later in debate ---

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

The Grenfell Tower fire was an unthinkable tragedy that claimed 72 lives. It is one of the few moments in life when we all remember exactly where we were when it happened. Our thoughts are with those who lost loved ones, the survivors who endured unimaginable trauma, and all those who were affected by that devastating night. The state failed them in its duty to protect, and we must ensure that such failures are never repeated. We will work collaboratively with the Secretary of State and the wider Government in the interests of everyone directly and indirectly affected by this tragedy, and I very much welcome today’s announcement about the acceleration of remediation.

Following the tragedy, the Conservative Government took decisive action to uncover the truth, initiating a public inquiry to learn lessons and implement changes to prevent such a tragedy from ever happening again. The right hon. Lady may remember that we served briefly together on the Housing, Communities and Local Government Committee which, under the extremely capable leadership of the hon. Member for Sheffield South East (Mr Betts), led much of the thinking and debate following the tragedy. We successfully campaigned for a banning of combustible materials on the outside of new buildings over 18 metres, and for a Government remediation fund for existing buildings. I pay tribute to my right hon. Friend the Member for Richmond and Northallerton (Rishi Sunak) who was the first to properly grasp that nettle as Chief Secretary to the Treasury, Chancellor, and Prime Minister. More than £5.1 billion has since been allocated for building remediation, and we have acted to strengthen regulations and implement recommendations from the inquiry’s phase 1 report.

I also pay tribute to the right hon. Lady’s predecessor, the former Member for Surrey Heath, for his work in this area, not least the establishment of the building safety levy, which is the source from which much of the funds will flow. However, publication of the phase 2 report in September 2024 revealed the scale of failures that occurred over decades and across multiple sectors, making clear that much more remains to be done, as the right hon. Lady set out. Even those of us who have followed the inquiry closely find the report truly shocking to read. The phase 2 report, chaired by Sir Martin Moore-Bick and supported by panel members Ali Akbor OBE and Thouria Istephan, makes 58 recommendations to improve fire safety and address systemic issues within the construction industry. Crucially, the report concluded that the Grenfell Tower fire was the result of decades of failures by Government, regulatory bodies and the construction industry to act on the known dangers of using combustible materials in high-rise buildings.

One of the most alarming findings was the role of systemic dishonesty in the construction industry. Companies engaged in deliberate and sustained strategies to manipulate safety testing processes, misrepresent test data and mislead the market. For instance, the insulation product Celotex RS5000, used on Grenfell Tower, was found to have been sold using manipulated test results—incredibly, with the Building Research Establishment complicit in those practices.

[Mr Betts]

I thank the hon. Gentleman for his comments about the work of the Select Committee. On product safety and product testing, what the Hackitt report, as well as the Select Committee, found was the extent to which product manufacturers were going from one testing place to another until they found one that agreed that their product was safe. Products often failed the tests, but those failures were never in the public domain. Does he think that there ought to be a change of process, so that when a product fails in one testing place, that failure is made known publicly?

[Kevin Hollinrake]

I agree with the hon. Gentleman, as I did during much of our work on the Select Committee. One of Martin Moore-Bick’s recommendations was exactly that: that all test results should be published, not just the ones that support the safety of the product. That would go a long way towards ensuring that the true safety of the products is established.

The BRE findings highlight a shocking betrayal of trust, and a callous disregard for public safety, driven by financial gain. The report also identified severe leadership and management failings within the London Fire Brigade. It described a chronic lack of effective management, an undue focus on processes, and a complacency among senior officers regarding the brigade’s operational efficiency. Those weaknesses hindered the brigade’s ability to respond effectively to the crisis, and underscored the need for systemic reform and improved leadership in fire services.

To address those failings, the phase 2 report made far-reaching recommendations, including the establishment of a single construction regulator; centralising fire safety responsibilities under one Secretary of State, to end fragmentation across Departments; regular updates to approved document B, to keep fire safety regulations current; and the creation of a chief construction adviser and a college of fire and rescue to ensure high standards in fire safety training and practices. We fully support those recommendations and urge the Government to implement them swiftly and effectively. We will scrutinise their progress to ensure that the necessary reforms are delivered without delay.

Some have questioned the pace of the remediation efforts. I think the Secretary of State was right to do so. I emphasise that the remediation efforts prioritised the highest-risk buildings, and by July 2024, 98% of high-rise buildings with the most dangerous, Grenfell-style ACM cladding had either completed or started work. On the remaining buildings, enforcement action is being taken against non-compliant owners. The complexity of the buildings and legal disputes over responsibility have caused delays. Nevertheless, all building owners must step up, take responsibility, and act swiftly to address the issues, or face the consequences of their inaction. It is important to note that the building regulations regime was established under the Building Act 1984, and fire safety reforms were introduced by other Governments in previous decades, as the Secretary of State acknowledged.

From 2010, the coalition Government sought to remove unnecessary bureaucracy, but fire safety and building safety were explicitly excluded from those reviews. The inquiry acknowledged that key safety regulations, including the Regulatory Reform (Fire Safety) Order 2005 were excluded from deregulation initiatives. Under our leadership, safety was never treated as red tape. Nevertheless, as the report confirms, mistakes were made by Ministers and officials on our watch. The frequency of changes under Governments of different political stripes, and the frequency of changes in housing Ministers and Secretaries of State, would not have helped. I hope that Parliament may learn that lesson for the future. Since 2017, the Conservatives in Government led comprehensive reforms of building compliance and fire safety. Measures introduced include the Fire Safety Act 2021 and the Building Safety Act 2022, which created the Building Safety Regulator to oversee stricter compliance with standards.

Council Tax

Clive Betts Excerpts

Thursday 14th November 2024 Commons Chamber

[Matthew Pennycook]

The Government certainly recognise the pressures on local authorities and the burdens placed on households as a result of 14 years in which local government was run down. We are determined to turn that situation around, as I have said, by providing the headroom that local authorities need to get ahead of some of the challenges that they have faced for many years. That is why the more than £4 billion in new local government funding announced at the Budget, including an additional £1.3 million in the local government finance settlement, has been so warmly welcomed. That brings the total real-terms increase in core spending to around 3.2%. We remain committed to the 5% referendum cap—we believe that is the right threshold. To protect the most vulnerable, we are also committed to the single-person discount and local council tax support schemes, under which, as I am sure the hon. Gentleman is aware, more than 8 million households do not pay a full council tax bill.

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

I really do not know how the Opposition spokesperson, the hon. Member for Ruislip, Northwood and Pinner (David Simmonds), can stand there and talk about cuts and shortfalls with a straight face. We know where responsibility lies—and on the Lib Dem Benches as well. [Interruption.]

[Mr Speaker]

Order. I think that the hon. Member for Thirsk and Malton (Kevin Hollinrake) will want that Yorkshire cup of tea. It will come very quickly if he carries on. I call Clive Betts—another Yorkshireman.

[Mr Betts]

Let me take my hon. Friend on a trip down memory lane. When I first became a councillor—only 48 years ago—councils had the freedom to raise rates for domestic and non-domestic property. Should we not, at some point, start a conversation with councils and the wider public about whether thresholds at all are appropriate? Councils in this country have less freedom to raise local taxation than virtually any other councils in western Europe. Council tax itself is regressive, both between individuals and between different local authorities. Can we not start that conversation at some point?

Renters' Rights Bill (Seventh sitting)

Clive Betts Excerpts

Committee stage
Tuesday 5th November 2024 Public Bill Committees

[Matthew Pennycook]

I will happily try to do so: I will take away the point and try to get the hon. Member some reassurance in short order. I reassure him that we have drafted the clauses carefully, following extensive dialogue with local authorities and local authority stakeholders. We do not take the power lightly. If I understand him correctly, he is putting to me the reasonable point that such a power would never be necessary. If, in the course of our ongoing exchanges, I can give him an example in which it might be necessary, perhaps he will be reassured.

Question put and agreed to.

Clause 111 accordingly ordered to stand part of the Bill.

Clauses 112 to 133 ordered to stand part of the Bill.

Clause 134

Interpretation

Question proposed, That the clause stand part of the Bill.

[Chair]

With this it will be convenient to consider clauses 135 to 141 stand part.

Oral Answers to Questions

Clive Betts Excerpts

Monday 28th October 2024 Commons Chamber

[The Minister for Local Government and English Devolution (Jim McMahon)]

This Government are acutely aware of the impact of the cost of living crisis on working people, and that is firmly in our sights as we approach the spending review this week, but we will have to repair a fair amount of the system, not just the finances. The early warning audit has been left shattered following 14 years of mismanagement, and single-year settlements have left councils not knowing from one year to the next how much money they have to spend, so we will have to introduce multi-year settlements. There is a great deal of work to do, and we cannot repair 14 years of damage in three months, but we are well on the way to it.

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

Let me first draw attention to my declared interest as a trustee of Fields in Trust.

In the last Parliament, the Housing, Communities and Local Government Committee received a large amount of evidence concerning the importance of well-designed open spaces for children and young people, but the national planning policy framework mentions them once and mentions bats twice. Is it not about time we got our priorities right, and did more to improve the design of—

[Mr Speaker]

Order. Just a minute, please! One of us will have to give way.

The hon. Gentleman is one of the most senior Members of Parliament. He should be looking at me when he is asking a question, not at the Minister. Come on, Clive: I am better-looking.

[Mr Betts]

I will agree with you on the latter point, Mr Speaker.

Will the Minister tell us whether he will change the guidance in future to place more emphasis on the importance to children and young people of properly designed open space?

[Mr Speaker]

But not in this instance! [Laughter.]