Local Government Finance

Daniel Kawczynski Excerpts

Tuesday 5th February 2019 Commons Chamber

[Andrew Gwynne]

No, I am answering the hon. Gentleman, if he will do me the courtesy of listening.

Every local area has a different council tax base. I hazard a guess—I do not have the facts in front of me —that a 1% increase in council tax for Tameside Council, which I partly represent, will raise significantly less than a 1% increase in his area’s council tax, but the needs of Tameside are as great, if not greater, than some of the needs of his constituents.

[Daniel Kawczynski (Shrewsbury and Atcham) (Con)]

rose—

[Andrew Gwynne]

I will give way later if the hon. Gentleman will allow me.

According to the Local Government Association, the change in the revenue support grant has left local services today to face a huge funding gap of £3.2 billion. This is the Tory-led Local Government Association, so I hope that Tweedledum and Tweedledee sitting opposite will listen to this. It includes a £1.5 billion gap in adult social care funding, a £1.1 billion gap in children’s services, a £113 million gap in tackling homelessness and a £531 million gap in public health. By 2025, the gap facing local councils will rise to £7.8 billion, which is something that should shame us all.

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[Andrew Gwynne]

My hon. Friend is absolutely right. Scandalously, council tax now equates to 7% of the income of a low-income family, compared with just 1% for a higher income family. That is unfair. Some people say that we can merely reform the council tax by adding extra bands to the end. Let me tell my hon. Friend—I imagine his area is very similar to mine—that we can add as many extra bands on the end as we like, but it will not raise a single penny more for my council because we do not have houses that would fall into those bands.

[Daniel Kawczynski]

The hon. Gentleman has spoken a great deal about pressures on urban areas, but in my constituency in rural Shropshire there are additional costs involved in providing services across a very large, remote, rural area, and we have a lot more senior citizens than the national average. Is he saying that, under a future Labour Government, there will be more money for urban areas rather than rural ones?

[Andrew Gwynne]

I am afraid that the hon. Gentleman has fallen into the trap that has been set by his own Ministers. We should not be talking about urban versus rural, or cities versus towns and villages. What is important is not how we cut an ever-diminishing cake differently, which is the approach of Ministers; we need to grow the cake. Politics is a question of priorities and Labour has set out very clearly how we would put more money into local public services, meaning more money for the hon. Gentleman’s council as well as more money for mine.

Oral Answers to Questions

Daniel Kawczynski Excerpts

Monday 28th January 2019 Commons Chamber

[Mrs Wheeler]

My hon. Friend has been a thorough champion on behalf of residents of leisure park homes. The situation is iniquitous. The Mobile Homes Act applies to residents of sites with residential planning permission, but leisure home owners are protected under consumer rights legislation. My Department is working with the Department for Business, Energy and Industrial Strategy, which is responsible for consumer issues, to better communicate those protections to leisure home owners. I look forward to meeting my hon. Friend shortly to discuss the matter again.

[Daniel Kawczynski (Shrewsbury and Atcham) (Con)]

11. What steps his Department is taking to reduce the time taken to build new homes.

[Chris Davies (Brecon and Radnorshire) (Con)]

19. What steps his Department is taking to reduce the time taken to build new homes.

[The Minister for Housing (Kit Malthouse)]

As many Members will know, my mantra is “More, better, faster”, and we are very keen to accelerate the delivery of housing. Across England, house building is at its highest level in all but one of the last 31 years. We are going further by streamlining the planning system, creating more certainty for developers and local communities and looking at the recommendations of the build-out review conducted by my right hon. Friend the Member for West Dorset (Sir Oliver Letwin).

[Daniel Kawczynski]

There have been some real delays in the Shropshire planning authority. What is the Minister doing to give Shropshire Council more resources so that it can attract more and better-qualified staff to streamline the planning process? This is starting to be a real problem.

[Kit Malthouse]

I applaud my hon. Friend’s impatience to build more new homes in his constituency. He recognises that the next generation of Salopians would welcome the provision of those homes as soon as possible. We have already given local authorities a 20% uplift in planning fees, and we have consulted on further resources in the past, but I have given a public commitment that if it becomes clear that resources in planning departments are a constraint, we shall be more than happy to talk to our Treasury colleagues about what more can be done.

Tenant Fees Bill

Daniel Kawczynski Excerpts

3rd reading: House of Commons & Report stage: House of Commons
Wednesday 5th September 2018 Commons Chamber

[Rishi Sunak]

The specific issue of one tenancy ending, and the process for recovering part or all of the deposit and starting a new tenancy, is out of scope for this piece of legislation, but it will be a subject for the working group set up by the Government with the sector. There are some interesting ideas about how to solve the problem that the right hon. Gentleman outlines.

[Daniel Kawczynski (Shrewsbury and Atcham) (Con)]

The right hon. Member for Birkenhead (Frank Field) has quite rightly raised a horror story on behalf of his constituent, but will the Minister acknowledge that there are many highly professional letting agents throughout the country who seek to provide the very best service for their customers under the difficult circumstances that they sometimes face?

[Rishi Sunak]

I thank my hon. Friend for his intervention, and I entirely agree. The Bill is not about driving letting agents out of business, but about levelling the playing field so that the small minority of bad actors in the industry are not able to continue to the disadvantage of the vast majority of agents who do a terrific and valuable job, which we want to see continue.

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[Melanie Onn]

I hear what the right hon. Gentleman says, and I thank him for his intervention, but I repeat the point that the fine “must not exceed” £30,000 but need not necessarily be £30,000 in the first instance.

[Daniel Kawczynski]

The hon. Lady is eloquently highlighting the importance of protecting tenants, but I am a little concerned that in all her points there is little reference to protecting landlords and letting agents. I hope she will come on to that. When ARLA Propertymark surveyed Members of Parliament, one newly elected Member informed it that there should be no private sector rentals, that they should be abolished and that we should have either owner-occupier homes or social housing. I hope she does not agree with that and that she will put on the record her support for the private sector in providing jobs.

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[Mr Goodwill]

I was very pleased to serve on the Bill Committee and to hear the very good reasons why the Bill came forward. I am pleased that the Minister has responded to some of the points made in Committee with the Government amendments, which I am very pleased to support.

The picture painted by colleagues from the south of England, particularly from London, does not represent the position in places such as Scarborough in the north of England, where there is a very vibrant rented sector, with adequate supply and demand and where the sort of fees that some have been talking about are not extracted from tenants. However, it is obvious from what we have heard that the current system is not working to protect tenants. Ninety-three per cent. of local authorities have failed to impose a penalty, and with many letting agents not publicising their fees it is difficult for prospective tenants to know what they would actually have to pay and almost impossible to make comparisons. I have also spoken to local estate agents, who have told me about some of the charges they have to take on board. A credit check, for example, can cost as little as £15, but a rogue agent could be charging as much as £625, which is taking advantage.

[Daniel Kawczynski]

Does my right hon. Friend agree that in places such as Shropshire and Yorkshire the market is in the main regulating itself rather well and these changes might be perceived to be slightly excessive?

[Mr Goodwill]

Yes. As a landlord myself I am aware of how that operates. We have talked about private landlords and social landlords. I like to see myself as a social landlord: I do not see what I provide to my tenants as being any different from what is provided by a housing association or a local authority—indeed, I like to think I give a better service. Still, it is right that this legislation has been introduced, particularly as double-charging could take place, with both tenant and landlord paying fees to the letting agent and the letting agent doing very well out of that.

I do not agree with the Labour shadow Minister, the hon. Member for Great Grimsby (Melanie Onn), about the fines in amendment 1 and 2. A £5,000 fine for a landlord is already equivalent to a year’s rent for many properties in my part of the world. As I said, having much larger fines could jeopardise the business of such landlords. I also do not support amendment 4, tabled by my hon. Friend the Member for Shrewsbury and Atcham (Daniel Kawczynski). We must do everything we can to help people to get into housing—I would prefer that they were able to buy their houses, but if not, we must help them to get into the rented market. A problem people often face when moving house is that the deposit put on the previous house is not made available at the same time as the new tenancy takes effect. Therefore, having to find, for example, six weeks’ rent at £100 a week plus another six weeks’ rent at £100 a week, plus maybe a £300 fee, as the amendment suggests, means a person looking to rent a two-bedroom flat in Scarborough or Whitby would need to find £1,500 of cash just to make that house move.

I was appalled to hear the nightmare stories mentioned by the right hon. Member for Birkenhead (Frank Field). As my hon. Friend the Member for Thirsk and Malton (Kevin Hollinrake) made clear, the tenants’ redress scheme introduced in 2014 means that the landlord can no longer see that money as their own money that they can snaffle when the tenant moves; instead, they need to demonstrate that real damage has been done or there are real problems that require that money to be used. In the past, I am afraid, I have heard horror stories where reasonable wear and tear was put down as damage or a slight scratch on the wall was taken to indicate that a whole room had to be decorated. I was pleased to hear from the Minister that he is looking at the possibility of a passporting scheme for these deposits. That is desperately needed because it is so frustrating for a tenant wishing to move that their deposit, which they will get in due course, is frozen and cannot be used to pay the next deposit.

To return to amendment 4, it is not reasonable to introduce these fees of £200 or £300. That would become the norm and, to be fair, it is the landlord who is getting this service: it is the landlord who is interested in the creditworthiness of the tenant and who wants to see the legalities and the administration done correctly, and therefore it is not unreasonable for the landlord to pick up the bill. Indeed, many landlords will do much of this work themselves, and tenancy agreements are available to download which makes doing that much easier.

In supporting the Government amendments, I hope that my hon. Friend the Member for Shrewsbury and Atcham will not press his amendment. We certainly would not want the Opposition amendments to be pressed.

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[Matt Western]

The hon. Gentleman makes a valid and pertinent point. High deposits are very much part of the cause of homelessness in many areas, because people feel financially and socially excluded from the private rented sector. As I alluded to at the beginning of my speech, high deposits have made renting privately much more difficult. In the same period we have seen a 20% reduction in social rented properties, which are critical.

I will move on because of time. On the issue of compliance, the Select Committee heard how few authorities, whether it be because of less appetite or because they just do not have the enforcement officers, follow through on enforcement. As we have heard, 93% of authorities have not taken enforcement action against rogue landlords. Of course the shining exception is Newham, which, as the Select Committee heard, accounts for half those enforcement cases.

I urge the Minister to reconsider Labour amendments 1 and 2. If £30,000 is seen as too high a maximum, there should be flexibility for authorities to introduce a more appropriate figure, as my hon. Friend the Member for Great Grimsby said—the hon. Member for Harrow East mentioned that £5,000 is a cost of doing business. That is how this was all done in the past, and we have to break that for the future because of the growth and importance of the private rental sector.

I support and welcome the Bill, but I would just ask for tighter regulation of default fees.

[Daniel Kawczynski]

In the few minutes available to me, I wish to raise a few issues on behalf of my constituents who are involved in this sector, particularly those working for letting agencies. I thank the Minister for seeing me in the Department yesterday, along with the Secretary of State; he has been unfailingly courteous and very well informed. I thank him for listening to me, as he has to others, about some of the concerns I have shared with him on behalf of my constituents.

I had wanted to propose an amendment to cap the fees that letting agents could charge to £300 rather than abolishing these fees entirely, because this proposal directly contradicts the Conservative party’s long-held ethos of being a pro-business, pro-free market party. If these are the measures we are supporting, are we truly a pro-business party? Mr Paul Wallace-Tarry from Belvoir, a letting agents in Shrewsbury, certainly believes we are letting him down by implementing the Bill.

As someone who has rented a property in London for the past 13 years, I am acutely aware of the job that estate agents and letting agents perform. They carry out things ranging from the right-to-rent checks to negotiating contract changes, and from safety checks to organising the tenant move-in. Many times as a tenant I have called upon the agent for help. I believe it is very important to keep the equilibrium correct between the tenant, the landlord and the letting agent, and this Bill may be slightly tipping the balance in favour of the tenant, rather than the landlord.

The Government’s own findings revealed that the mean fee paid by tenants upon moving into their accommodation was £223. However, a ban on tenant fees will lead to rents increasing by around £103 per annum, so industry experts say. For a three-year lease, the tenant would therefore end up paying £309 in total, which is £86 more than the tenant fee. It has also been found that rents could increase by around £82.9 million as a result of the Bill. Clearly the services that the letting agents put in place are being implemented by professionals, and they have to be paid for in some way. The fear is that this will just go on to rents, which are less transparent and accountable than a clear, specific fee.

ARLA Propertymark has found that 90% of letting agents believe that a ban will lead to a rise in rents. Some 60% think that it will lead to lower property quality, and 40% think it will lead to a fall in employment in the medium to long term. If estate agents have to choose between their working relationships with tenants or with landlords, they will side with the landlords, given that there is no financial responsibility or duty of care between them and the tenant. This is what I want to see protected; I want that relationship to be very evenly matched.

I end by simply saying that if the Conservative party understands anything, it is the need to support small business. I feel passionately about the role that small businesses play in our constituencies. I never had the courage to set up my own business. I always worked for large-scale, multinational corporations, knowing that my mortgage would be paid at the end of the month and not having the responsibility of employing people. Many of the people we are talking about today did have the courage to set up their own business. They are entrepreneurs and they are employing professional people, and this is very important. I hope that the Minister will acknowledge the extraordinary amount of care and professionalism that many of these letting agencies in Shrewsbury implement on behalf of their constituents. The Conservative party must understand the need to support small business, with less regulation, less red tape and less taxation in order to empower entrepreneurship and empower people to create the wealth we need to fund our public services. This ban is in direct opposition to that.

As I have said already to the shadow Minister, when ARLA Propertymark conducted a survey of all Members of Parliament, a newly elected Labour Member—I would get into a lot of trouble if I named him—told ARLA that he was not interested because he wanted the whole private sector banned, leaving only owner occupiers or social housing. That is the sort of prejudice that we have to deal with, and it is important that the private sector is respected and supported.

Local Government Finance

Daniel Kawczynski Excerpts

Wednesday 7th February 2018 Commons Chamber

[Sajid Javid]

I can give my right hon. Friend some reassurance on that matter. I will come to it in more detail in a moment, and I hope that he will be genuinely reassured.

[Daniel Kawczynski (Shrewsbury and Atcham) (Con)]

When the fairer funding formula comes into being, I hope that my right hon. Friend the Secretary of State will work with other Ministers to really understand the huge gulf that is starting to appear between city metropolitan areas and rural shire counties. We are becoming second-class citizens in rural areas because of the lack of funding in comparison to socialist metropolitan areas.

[Sajid Javid]

My hon. Friend makes a very important point about ensuring full co-operation throughout all Government Departments working jointly with our local authorities on fairness and distribution. One way we have tried to make the settlement fair is by recognising the special factors that affect rural areas, including Shropshire. My hon. Friend’s council in Shropshire will benefit from £6.6 million in rural services delivery grant.

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[Daniel Kawczynski (Shrewsbury and Atcham) (Con)]

Shrewsbury is one of the most popular places to which to retire in the whole United Kingdom. The beauty of our historic town and the Shropshire countryside attracts a lot of senior citizens to come to live in our community. We celebrate their contribution to our constituencies and to the county, but with that increase in the number of senior citizens comes, of course, additional adult social care costs. I have become interested in the local government finance settlement because, as my hon. Friend the Member for Ludlow (Mr Dunne) said, our local council has faced increases of £10 million per annum in its attempt to grapple with the spiralling costs of adult social care.

When previously the Labour party ran the local council, it increased council tax by 16.6% in one year. That caused a great deal of distress and concern to people on fixed incomes, especially senior citizens, which is why we have encouraged the council to freeze council tax and do everything possible to limit the increases that local people will have to pay. I am proud that the council has managed to do that.

Shropshire Council has reduced some of the operating costs, as we have asked it to do since we came into office, and a lot of the fat has been cut away. In fact, the council is one of the most efficient in the whole United Kingdom. However, having made the efficiency savings, it is now really struggling to meet additional costs, which is why my hon. Friend the Member for Ludlow and I have spent so much time in discussions with the council leader, Peter Nutting, and the chief executive, Clive Wright, to hear at first hand about some of the difficulties they face.

As a result of those discussions, my hon. Friend the Member for Ludlow and I, along with other Conservative MPs from rural shire counties, decided to meet the Secretary of State and the Chancellor over the past few weeks to highlight the difficulties that rural shire counties face. I wish to put on record my thanks to my hon. Friend and my right hon. Friend the Member for North Shropshire (Mr Paterson). My right hon. Friend is not able to join us today because unfortunately he is in hospital after an accident but, as my hon. Friend the Member for Ludlow will acknowledge, my right hon. Friend has played an important part in the campaign for funding for Shropshire Council.

[Bill Wiggin (North Herefordshire) (Con)]

May I reciprocate by thanking my hon. Friend for the leadership he has shown in those meetings and for his determination, which has meant that rural counties have got a better deal? Equally, I thank the Front-Bench team for listening to us and being so helpful to people who need their help so badly.

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[Daniel Kawczynski]

I am grateful to my hon. Friend. Of course, we almost think of Herefordshire as part of our area.

[Bill Wiggin]

Love thy neighbour.

[Daniel Kawczynski]

My hon. Friend is not quite Salopian, but he is certainly our neighbour, and I thank him.

Whether we look at funding for local government, education or, indeed, health, we can see, as my hon. Friend the Member for North Herefordshire (Bill Wiggin) will acknowledge, large gaps in funding—a disparity between rural and inner-city areas.

[Michelle Donelan (Chippenham) (Con)]

I completely agree with my hon. Friend that rural sparsity and above-average ageing populations, such as Wiltshire’s, do increase costs. Does he agree that deprivation is not confined to urban areas, as the Opposition believe, but can actually be found in rural areas such as our constituencies?

[Daniel Kawczynski]

My hon. Friend makes a critical point. When Labour were in government, I brought Labour Ministers to parts of Shrewsbury, including Harlescott, Ditherington and Sundorne, where there are some of the highest levels of deprivation throughout our county and the region. They were amazed. The Opposition just think of Shrewsbury as a quiet, sleepy, beautiful little historic town. They do not understand that there are significant levels of deprivation in rural shire counties.

I am very grateful to my right hon. Friend, the Secretary of State, and to his colleagues in the Department for treating us with a great deal of civility and decency and for listening so attentively to our representations. I thank him for the additional £166 million, as a result of which Shropshire gets an additional £2.3 million. However, the taskforce that we have created will continue its work until we get a fairer funding settlement. I am very grateful to him for taking the first step in ensuring that the fair funding settlement is implemented. He has announced the start of a public consultation process, which is something that none of his predecessors did, so we can now acknowledge that he is taking our concerns seriously and is putting forward the mechanics to ensure that we finally have a fairer funding settlement between rural and inner city areas.

When the dust settles on this local finance settlement, I will continue to lobby my right hon. Friend, as will my right hon. Friend the Member for North Shropshire, to ask for Shropshire to be considered for the next tranche of business rate retention pilot schemes, because that is a very good initiative and something from which our county could benefit significantly.

I will end by inviting the Secretary of State to Shropshire. He has been there before—he represents a constituency not far from us—and we have been very grateful for those visits. None the less, I invite him again to come to spend a day looking at how services are provided across a rural county, and how there are huge additional costs in providing those services. I say to the hon. Member for Oldham West and Royton (Jim McMahon) that, in contrast to what he attempted to say in his contribution, those additional costs do exist. In dealing with a lot of very small schools in rural villages, meals on wheels and getting support to remote rural villages, there are, of course, additional costs, and until they are taken into consideration, we, in the shire counties, will continue to lobby strenuously on this matter.

Holocaust Memorial Day

Daniel Kawczynski Excerpts

Thursday 18th January 2018 Commons Chamber

[Mrs Ellman]

I thank the hon. Gentleman for his comments. I draw his attention to the official statement about what Holocaust Memorial Day constitutes. It states very clearly that in addition to recognising the holocaust, it recognises other atrocities that have taken place since that time, including in Darfur and Cambodia. That has always been written into the official remit of Holocaust Memorial Day.

[Daniel Kawczynski (Shrewsbury and Atcham) (Con)]

Further to that intervention, may I also say to the hon. Lady that at this time we ought to be celebrating and commemorating the Christians who gave up their lives to save Jewish families during the second world war? The brother of my grandfather, Jan Kawczynski, hid Jewish families on his estate. When the Germans found out, they shot his daughter and his wife, and then him. I think that this is a very important time to remember those Christians who sacrificed their lives to protect Jewish neighbours.

[Mrs Ellman]

The hon. Gentleman makes an extremely important point. Indeed, the people he named and others who contributed similar actions are recognised under a special category of the “righteous gentiles”. They are recognised in the Yad Vashem memorial in Jerusalem and also recognised in special British honours. They therefore have a very special place in our history and our minds.

Today we must reflect on the horrors of the past and the disturbing trends of the present. Together, as we commemorate Holocaust Memorial Day 2018, we must ensure that action is taken to tackle the longest hatred.

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[Bob Blackman]

I thank my hon. Friend for that intervention. It allows me to join others in congratulating Karen Pollock and her team on their wonderful work. I will never forget my visit to Auschwitz-Birkenau, and the young people who started out brightly at the beginning of the day, but who, as the horrors unfolded, became quieter and quieter. We ended the day on those terrible railway lines, with candles, and that place brings home to everyone what can happen if people stand idly by. We knew, and were instructed, about the systematic approach—this was not a few people who were mad or crazy; it was a systematic approach that involved hundreds, if not thousands, of people who co-operated with the attempt to eliminate the Jewish population.

We should also remember that there is not just Auschwitz-Birkenau but a whole series of other camps, and we should ensure that everyone is aware of the various different death camps that were set up by the Nazis to achieve their desperate aims.

[Daniel Kawczynski]

On that point, the BBC regularly refers to “Polish death camps”, but there was no such thing. These were concentration camps set up by the Germans in occupied Poland, and it is important to remember that.

[Bob Blackman]

I thank my hon. Friend for his intervention, and we must ensure that people are educated on that point.

I visited the original Yad Vashem museum and saw at first hand the work that was done. I have also visited the new museum that commemorates all the victims of the holocaust and describes it in some detail. The individual accounts of those who survived the holocaust, now recorded on film, are desperately important, and we must ensure that holocaust deniers, and individuals in society who seek to justify it in some way, are called out in the right way and with the appropriate testimony.