(5 years, 5 months ago)
Commons ChamberMy hon. Friend rightly makes the point about Sefton, and councils should absolutely be focused on delivering good-quality services and value for money. That is why we are investing in areas such as digital innovation and looking at how that can drive further support. My hon. Friend is also right about ensuring that good practice is shared, and we are working with the LGA and others on that.
I am sure the Secretary of State will accept that local government has had a 30% cut in spending since 2010 and also that councils have done incredibly well through efficiency savings and other measures to mitigate the worst impact of the cuts, but has he now seen the report by PwC for the County Councils Network saying that by 2025 there will be an £8 billion funding gap for councils? Does he accept that efficiency savings are not going to bridge that gap and that what we need now is an end to austerity and a major increase in funding for councils from the Government? Will he go to the Treasury and argue for that to happen?
I need no encouragement from the hon. Gentleman to make that case for local government and its power and ability to deliver good-quality local services. I recognise the challenge the hon. Gentleman brings to me in his question, but I highlight to him the real-terms increase in core spending power made available to councils this year. This Government have made that commitment to councils, but I absolutely want to be on the side of councils and commend them for their innovation and the work they do.
The Government have provided some funding for the removal of aluminium composite material cladding, and they are testing non-ACM cladding on hundreds of buildings. The Minister for Housing has accepted that, if that cladding proves to be as dangerous as ACM cladding, it will have to be taken off. In that case, will the Government also agree to provide funding for the removal of non-ACM cladding?
I recognise the important point the hon. Gentleman the Chair of the Select Committee has highlighted on building safety. It is why I took the exceptional step of making £200 million available for remediation. It required a ministerial direction to be able to do so, because of its significance. Clearly, we have the ongoing testing of non-ACM materials. I will be advised by my team—the expert panel—in relation to the next steps, and I am clearly keeping the situation under careful review.
(5 years, 7 months ago)
Commons ChamberI hope the hon. Lady will have noticed that, according to the latest figures, real wages are actually going up. I remind her of the fact that pay restraint across the public sector was a consequence of the mess that we inherited from the last Labour Government. I know that this has been difficult; it has been really tough and incredibly hard. Equally, we are determined to maintain the strong economic path for our economy and to ensure that our public finances are now back in the right space and not left in the fashion that the last Labour Government left them in. I am mindful of the essential role our local authorities play in helping the most vulnerable in our society, and I recognise the growth in demand in adult and children’s social care and the pressure that that brings.
I am interested in the exchanges across the Chamber about which party has been the best, or perhaps worst, at the devolution of council funding. It was actually the Thatcher Government who introduced the capping of rates—it continued with council tax—taking away councils’ freedom to set their own business rates. Is it not the reality that neither the previous Labour Government, nor the coalition Government nor this Government have done anything fundamentally to increase the freedom of councils to raise their own funding at a local level? I hope that the Secretary of State will address that when we finally see his devolution framework.
I look forward to engaging with the hon. Gentleman and the Housing, Communities and Local Government Committee on issues relating to the devolution of business rates and so many other things. I profoundly believe in the merits and benefits of decisions being taken more locally and of local government having a sustainable position.
I am conscious of the number of Members who want to participate in this debate, so I will now make some progress.
Coming back to social care, £650 million out of the more than £1 billion of extra funding committed to councils at last year’s Budget will be going towards adult and children’s social care in 2019-20. Of that, £240 million has been allocated to ease pressures on the NHS, which comes on top of the £240 million announced in October to address winter pressures. The remaining £410 million can be spent on either adult or children’s social care where necessary to take the pressure off the NHS, meeting the request from local authorities for greater flexibility. Taken with the adult social care precept and the improved better care fund, the Government will have given councils access to £10 billion of dedicated funding, which can be used for adult social care in the three-year period from 2017-18 to 2019-20.
When it comes to protecting our children, we are investing £84 million over the next five years to expand three of our most successful children’s social care innovation programme projects. The projects will keep more children at home safely in up to 20 local authorities, but in the long run our work will ensure that our health and care systems are better integrated. That will be our most powerful tool in ensuring we have a sustainable approach in the years to come.
Returning to troubled families, which the hon. Member for Erith and Thamesmead (Teresa Pearce) rightly highlighted, I believe that our programme is helping local authorities to support families with complex needs and to improve outcomes for individuals. The programme has been a catalyst for local services, transforming how they work together, making them more integrated and cost-efficient, and reducing dependency and demand on expensive services. The results speak for themselves. The latest national programme evaluation shows that, when compared with a similar group, targeted intervention saw the number of children going into care down by a third, the number of adults going to prison down by a quarter, juveniles in custody down by a third, and 10% fewer people claiming jobseeker’s allowance. While I recognise that there is more to do, the results are a tribute to the tireless efforts of family workers, local authorities and their many partners in our public services and the voluntary sector. This is about so much more than the financial boost that someone can get from a regular wage. It is also about the pride and the dignity that comes with someone being able to take control of their own life.
The future of this country is not about an ever-growing collection of handouts and entitlements, but about growing prosperity and independence, and that equally applies to local government. This Government are working to build a more confident, self-sufficient and reinvigorated local government. With the end of the current multi-year deal in sight, we clearly need to take a longer view of how we fund councils as we move to a stronger, sustainable and smarter system of local government. This year’s preparations for increased business rate retention, a new approach to distributing funding between local authorities, and the upcoming spending review will also be pivotal. Important work is also under way with authorities and the wider sector to better understand service costs pressures.
For years, councils have asked us for more control over the money raised, and we are giving it to them through our plans to increase business rate retention to 75%. In the process, we will provide local authorities with powerful incentives to grow, and authorities estimate that they will retain around £2.5 billion in business rate growth in 2019-20 under the current system—a significant revenue stream on top of the core settlement funding. In addition to more control, councils want and need to see a clearer link between the allocation of resources and local circumstances, and our new fairer funding formula will ensure a more transparent link between local needs and resources and the funding that councils get.
I pay tribute to the leadership and creativity of our councils, which deliver high-quality services for their residents and efficiencies for the taxpayer. We are determined to give them the freedoms and flexibilities they need so that local government can continue to flourish and deliver vital services to meet the challenges and opportunities that lie ahead. As voters go to the polls at the local elections, this Conservative Government are providing a real-terms increase in spending power for local government and giving councils the freedoms to deliver for their local communities, and hard-working Conservative councillors are providing value for money for hard-working families and the quality services that their residents deserve.
(5 years, 7 months ago)
Commons ChamberThe Secretary of State will have noted that the question is specifically about social rented housing. If we are to achieve an overall target of 300,000 homes a year, does he accept that it is imperative that more than 100,000 of those have to be social rented houses, built by housing associations and councils? Lifting the housing revenue account cap is welcome, but does he accept that if we are to deliver that number of homes, the Government will have to give more financial support to councils and housing associations?
I hope that the hon. Gentleman will recognise the £9 billion affordable homes programme, and equally the extra £2 billion that has been provided on long-term funding. He will have noted in the recent spring statement that we now have £3 billion to enable housing associations to have funding guaranteed for the delivery of those homes. I hope that he also recognises that the flexibility of the affordable homes programme allows more homes for every pound of Government investment. Clearly, I want to see more homes built, and I want to see more council homes built for social rent too.
(5 years, 8 months ago)
Commons ChamberI am sure that the whole House will want to send its condolences to the family of Jodie Chesney, my hon. Friend’s constituents, and equally, to the family of Yousef Makki, who also lost his life over the course of the weekend. My hon. Friend highlights the appalling situation with knife crime, which has claimed too many lives. I assure her that my Department is working closely with the Home Office to look at issues of prevention and, through programmes such as troubled families, is seeking to provide preventive services. In the last couple of weeks, I have provided £9.8 million for a fund supporting families against youth crime, to help workers to intervene early to prevent such senseless violence.
I have previously raised with the Secretary of State the Government’s proposal to remove deprivation as an element from the foundation funding part of the local government allocation. Is he aware of the research done by the University of Liverpool and the Institute for Fiscal Studies showing that although deprivation accounts now for only a 4% difference in spending, if we go back before austerity in 2010, in the early years before the disproportionate cuts in grants to the poorest communities, deprivation accounts for more than 10 times the amount of spending? In the light of that, will he review his decision to remove deprivation as a key element of spending allocations?
The hon. Gentleman, the Chair of the Communities and Local Government Committee, is obviously aware that there is an ongoing consultation on the formula. He highlights a point in relation to the primary formula and the way in which deprivation plays into that. We will look closely at the evidence that is presented to us and I encourage him to take part in that consultation.
(5 years, 8 months ago)
Commons ChamberMy right hon. Friend rightly makes the distinction between the two elements of the fund and the town deals that we want to see emerging from both of them. On the first element, we have allocated this on the basis of a number of different factors, but I will be publishing a prospectus—that is the next stage—to set out the application process and the basis for the applications we want to see coming through from the towns that can apply under the £600 million fund. We will be setting that out in detail so that towns such as Harlow, which I know he is so passionate about, are able to apply.
The Secretary of State will be aware that, if the UK were still a member of the EU after 2020, South Yorkshire would again be eligible for less-developed region status because its economy has fallen back against EU averages since 2014. If it were entitled to EU funding, South Yorkshire would receive £1 billion over seven years. So either his announcement today is totally inadequate, or he is going to promise that, under the shared prosperity fund, South Yorkshire will get exactly what it would have got under EU funding if we were still in the EU.
One of the things that would encourage investment in the right hon. Gentleman’s area is getting the devolution deal done in relation to South Yorkshire, Sheffield and the Sheffield city region, as he well knows. He makes an important point about the distinction between this fund and the UK shared prosperity fund, which will follow. Those are separate, and there will be a consultation on the prosperity fund and, indeed, the settlement of amounts in the spending review. There is more to come, so this fund should not be seen in isolation. It links into more funding and more structures that will support growth in all areas.
(5 years, 9 months ago)
Commons ChamberI congratulate my hon. Friend on the way in which he has championed his local area. As a former local government leader, he has shown what can be delivered through local authorities, and I commend him for that.
My hon. Friend highlights the increased spend that West Sussex will gain as a consequence of the settlement before the House, but obviously it is for local authorities to work smartly and thoughtfully in relation to their retained reserves. There is a clear need for reserves, which he will understand, but he rightly underlines the need to use those funds sustainably, appropriately and effectively.
The Secretary of State rapidly skipped over the funding review. Will he confirm that the consultation proposed in December to take deprivation out of the foundation element of the funding review? That would transfer money from deprived areas to non-deprived areas. Is that fair?
Obviously we will look at all the representations that continue to be made during the review of relative needs and resources, but our analysis in the review demonstrates that, overall, population is by far the most important cost driver for both the upper-tier and lower-tier foundation formulae. Although in aggregate terms deprivation is not shown to be a major cost driver for the services included in the foundation formulae, I am of the view that relative levels of deprivation remain an important cost driver for some specific service areas such as social care. I welcome views as part of the current consultation, and I am sure the Select Committee will continue to focus on this important work.
(5 years, 11 months ago)
Commons ChamberAs my hon. Friend has highlighted, we do intend to directly eliminate the £152.9 million negative revenue support grant using forgone business rates. That will prevent any local authority from being subject to a downward adjustment to its business rates tariffs and top-ups that could act as a disincentive for growth. I am sure that he will look at the detail of this. Obviously, we have the business rates retention pilots of 75% for London and that long-term sustainable funding arrangement for local government.
At the time of the Budget, the Local Government Association, of which I am pleased to be a vice-president, welcomed the £650 million extra for social care, but contrasted it very clearly with the funding gap in adult and children’s services of £2.6 billion. That, it said, would lead to more than 1 million people not getting the care they need and, in the LGA’s own words,
“threaten other services our communities rely on”—
such as libraries, street cleaning and parks. Will the Secretary of State confirm that, for the majority of councils, there is no additional funding in this statement over and above the amounts announced in the Budget, which the LGA described as “inadequate”, and that, for the next financial year, this will mean further cuts and more austerity still being the order of the day for most local councils?
(5 years, 11 months ago)
Commons ChamberI certainly recognise the need for more homes, including more rental and affordable homes for people, as we deliver against our agenda. The best way to do that is through local plans, which allow local councils to provide housing in suitable locations. Local plans will certainly ensure that local communities get the houses they need, but I take on board the point my hon. Friend rightly makes about communities and making sure that value is felt.
The Secretary of State will accept that, according to the Government’s own figures, when planning permission is given for housing to be built on agricultural land, that land increases in value, on average, by about 100 times. Does he accept that more of that increase in value should go to pay for public infrastructure and general community benefit? Will he therefore go further than he has promised and agree to look again at the Land Compensation Act 1961, to which the Select Committee on Communities and Local Government recommended a change, which was supported by a wide range of organisations and by hon. Members right across the political spectrum?
I am grateful to the hon. Gentleman and the Select Committee for the work that they have done in rightly highlighting an important issue. It is worth bearing in mind the fact that section 106 planning obligations and the community infrastructure levy levied in 2016-17 provided an estimated £6 billion of value. However, the point he makes is an important one. We wanted to see better utilisation of the existing rules, and the Letwin review makes further proposals, and we will be reflecting on those and coming back to the House in the new year.
(6 years ago)
Commons ChamberI am very conscious of the particular issue the hon. Lady highlights to the House, and indeed I greatly appreciated the opportunity I had to meet her constituents, to hear their stories and to hear about the impact the devastating incident has had on that community. I am still considering what the options are, to see how the regeneration can be provided and work can be conducted with the local authority, so I very much look forward to continuing to remain in discussion with the hon. Lady on what I know is a very serious and significant community issue.
Obviously the £650 million for social care is welcome, but does the Secretary of State accept the Local Government Association figures that the gap next year is actually £2.6 billion? Has he any concerns at all about comments from leaders in East Sussex, Surrey, Somerset and Lancashire, all Conservative county councils, that they are facing a cliff edge that they are likely to fall over at some stage unless the Government take more dramatic action?
There has been a recognition of the important step that has been taken in the Budget with the additional funding provided for adult and children social care and how that will make a difference. I will of course look carefully to the future in discussions I will have, through the spending review, on long-term financial support for our local government sector, the innovation and real value I see in local government—what it delivers for our local communities—and I will remain a proud champion for local government. But, as I said, local authorities also have a huge role to play in helping us to build the decent, affordable, secure homes that families and communities so desperately need and deserve. As the Prime Minister has said, this is our biggest domestic priority.
(6 years, 2 months ago)
Commons ChamberI beg to move, That the Bill be now read the Third time.
I thank Members on both sides of the House for their passionate and constructive contributions to the Bill’s passage through the House. We all agree that the Bill’s aim of making renting fairer, more transparent and more affordable for tenants is important. As such, it is a key part of the Government’s housing agenda. More people are renting, and they deserve help now, which is what the Bill is all about. We want to ensure that everyone, regardless of whether they own their home or rent, or whether they are in the social or private sector, has the security and dignity they need to build a better life.
The feedback and evidence we received recognised the challenges that tenants in the private sector face, especially regarding unfair fees and the need to rebalance the relationship between tenants, landlords and agents. Having listened, we introduced amendments on Report to ensure that the Bill better delivers on our commitment to create a system that works for everyone. I thank all those who have engaged with the process, from our initial consultation through to pre-legislative scrutiny and since the Bill’s introduction to the House. That includes members of the Housing, Communities and Local Government Committee, with their invaluable pre-legislative scrutiny of the Bill; those who provided written and oral evidence to the Committee; and the organisations that have engaged so constructively with my officials in drafting guidance for the Bill.
I thank the Secretary of State for his kind words about the Select Committee. Does he think that there is a wider lesson to be learned—that it would be helpful if the Government more generally provided draft legislation for Select Committees to consider, rather than simply coming to the House with proposals that they have already determined without any consideration in Select Committee?
I recognise the important contribution that Select Committees, and Joint Committees of both Houses, make to pre-legislative scrutiny of draft Bills, and we can point to a number of examples. As I am sure the hon. Gentleman will appreciate, at other times the Government need to act quickly. The Bill has been a good example of the balance needed between ensuring consultation and engagement.
I also wish to pay special tribute to the Under-Secretary of State, my hon. Friend the Member for South Derbyshire (Mrs Wheeler), for all her efforts to develop the Bill and ensure its successful introduction. We all send her our heartfelt best wishes.
I also wish to thank the Under-Secretary of State, my hon. Friend the Member for Richmond (Yorks) (Rishi Sunak), who has been instrumental in leading the Bill through the Commons and has been careful and conscientious in listening to the views of Members on both sides of the House.
We can all agree that the Bill has benefited from everyone’s input and, as a result, will be more effective in delivering on its promise to protect tenants from unfair charges. As we have heard, those charges can impose a significant burden on tenants, who often have little choice but to pay excessive and unjustified fees time and again for each property let or even just to renew an existing agreement. The Bill will put a stop to such unacceptable practices by banning unfair and hidden charges, making it easier for tenants to find a property at a price they are willing to pay and saving renters an estimated £240 million within the first year alone. The Bill will also help to introduce a level playing field for landlords and agents by protecting reputable players in the market from having their reputations tarnished by rogues.
I know that the changes have raised concerns in some parts of the letting market, but agents who offer good value and high quality services to landlords will continue to be in demand and play an important role in the sector. In addition, the Bill introduces a cap on tenancy deposits of six weeks’ rent, and we are not stopping there. We want to ensure improvements to how deposits are protected in the interests of both tenants and landlords, to reduce up-front costs to tenants. That is why we recently established a working group to look at the merits of innovative approaches to tenancy deposits, such as deposit passporting.
I am confident that the measures in the Bill will help to deliver the fairer, clearer and more affordable private rented sector that we all want to see—for tenants, yes, but also for decent, professional landlords and agents who are providing a vital service. I am happy to commend the Bill to the House.
(6 years, 5 months ago)
Commons ChamberI recognise the clear desire and intent to see to it that these buildings are made safe and that remediation is completed at the earliest possible opportunity. The works are complex and detailed, and they will take time. We continue to monitor and to work with local authorities to make sure that progress is made, recognising the real public safety issues that the hon. Gentleman underlines.
The Secretary of State is rightly consulting on banning all material that is not of limited combustibility from high-rise buildings, and the Housing, Communities and Local Government Committee hopes that he will bring in such a ban after the consultation. If he concludes that it is right to ban such material from all new buildings, does he accept that it would be completely untenable to leave the same material on existing buildings, and, in such a case, does he accept that the Government will have the responsibility to financially compensate the building owners affected?
The Chair of the Select Committee will know that we have committed £400 million to support the public sector in remediation costs and that, therefore, we are committed to seeing that the work is undertaken well. Obviously, we will reflect carefully on the consultation that will be launched and therefore look at its application. The key message is that we need to make progress and to get on with this, so that buildings that have been identified in need of remediation are dealt with.
(6 years, 6 months ago)
Commons ChamberUrgent Questions are proposed each morning by backbench MPs, and up to two may be selected each day by the Speaker. Chosen Urgent Questions are announced 30 minutes before Parliament sits each day.
Each Urgent Question requires a Government Minister to give a response on the debate topic.
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I am grateful to my hon. Friend for her question, because it touches on some of the issues in the Hackitt review about a culture change—a culture shift—across the whole sector in terms of the standards that should be applied. That is why I am determined that we will pursue this rigorously and follow through on the recommendations that Dame Judith Hackitt has given.
Last week, the Select Committee welcomed the Secretary of State’s decision to consult about banning all combustible material from the cladding on tower blocks. May I ask him, once again, whether he has given further thought to banning the material on existing blocks as well as on new blocks and refurbishment works? If he is minded to do that, does he accept that the Government would then have a responsibility to compensate building owners for the effects of building regulations that were changed retrospectively?
I welcome the action of the Select Committee in this regard. We are obviously working at pace to move forward with the consultation, which is intended to be forward-looking. I hear the hon. Gentleman’s point about building regulations that could only speak to the existing timescale. There is also an issue, which comes through very clearly in Dame Judith Hackitt’s report, about the risks of these sorts of systems and why these building owners need to take their responsibilities extremely seriously.
(6 years, 6 months ago)
Commons ChamberI am very grateful to my right hon. Friend for her question. I do understand the concerns that Members on both sides of the House, including those in London, understandably have following the appalling tragedy of Grenfell. I can tell her that we will be providing details for local authorities and housing associations about how they can access the funding. We are working at pace to ensure that the relevant information and guidance is given, because I am certainly very conscious that we want to allocate the funding for remediation as soon as possible. I will announce more details shortly.
I thank the Secretary of State for his statement. As he knows, the Housing, Communities and Local Government Committee is taking evidence from Dame Judith this afternoon. Once we have heard from her and had a chance to read the report in detail, I am sure the Select Committee will want to let him have our comments, and we will pass them on before the deadline of 25 July that he has set for such comments to be received.
May I ask about the specific issue of combustible materials used in cladding on high-rise buildings? Shortly after the interim report, the Select Committee called for such materials to be banned. We took up that issue with Dame Judith, and we wrote to the then Secretary of State and other Ministers about it. I welcome the fact that the Secretary of State is now going to consult on banning combustible materials. Will the consultation on a ban apply to regulations for new buildings and the refurbishment of existing buildings, or does he intend to apply the regulations retrospectively to all existing buildings, so that if the consultation goes in such a direction, combustible materials will be taken off all existing buildings to make people safe?
I certainly recognise the importance of the contribution made by the Select Committee on these issues and of the hon. Gentleman’s points. I note that Dame Judith is providing further evidence this afternoon, and I look forward to hearing from the Committee about its recommendations.
The point is that we firmly want to consult on the issue of combustible materials because of the concerns that the hon. Gentleman and others, including in the industry, have raised. I will come forward with further details, and I will obviously publish the details of the consultation’s scale and extent. The clear intent is to ensure that there are not combustible materials on buildings—fire safety issues are of paramount importance in what we are doing—and I will certainly reflect further and carefully on the points that the hon. Gentleman has made.