Levelling-up and Regeneration Bill (Twenty Second sitting)

Dehenna Davison Excerpts

Committee stage
Thursday 13th October 2022 Public Bill Committees

[The Chair]

With this it will be convenient to discuss new clause 53—Independent examination of locally-led urban development corporations—

“(1) A proposing authority must submit a proposal for designation of a locally-led urban development area in England under section 134A of the Local Government, Planning and Land Act 1980 to the Secretary of State for independent examination.

(2) The examination must be carried out by a person appointed by the Secretary of State.

(3) The purpose of the examination is to determine whether the proposal is in general conformity with national planning policy, the local development plan, and any other material considerations.

(4) Any person who makes representations seeking to change a proposal for designation of a locally-led urban development area must, if they so request, be given the opportunity to appear before and be heard by the person carrying out the examination.”

This new clause would ensure that proposals to designate land as an urban development area and to establish a locally-led urban development corporation to oversee it would be subject to independent examination at which the public would have a right to be heard.

Welcome, Minister.

[The Parliamentary Under-Secretary of State for Levelling Up, Housing and Communities (Dehenna Davison)]

Thank you, Mrs Murray. It is a pleasure to serve under your chairmanship, particularly for my first outing as a Minister. I would appreciate your going slightly easy on me on procedural matters—I will do my best.

As we know, the Government are committed to empowering local areas to drive forward growth and renewal without the need to establish a body accountable to central Government. Development corporations are powerful tools that can deliver large-scale development, and they have been successfully used to deliver more than 20 post-war new towns across England, such as Telford and Milton Keynes. They have also been instrumental in regenerating brownfield sites, such as Canary Wharf and the London Olympic site. However, the enabling legislation was designed for a different time and in response to very different circumstances, so there are now multiple types of development corporation, which have varying powers and remits that inhibit their use. Given the scale of the challenge to level up the country, provide the necessary infrastructure and deliver the growth and housing that current and future generations need, we want to ensure that development corporations are accessible right across England.

In October 2019, we consulted on the legislative framework for development corporations to ensure that they have the powers they need to deliver. The results of that consultation showed that there is a gap in the existing models. Outside of mayoral areas, there is no model available for local authorities to regenerate their areas, which is what the clause is intended to address. The clause introduces a new locally led urban development corporation model, which will be overseen by a local authority covering the area, rather than by central Government. It will also allow local authorities, rather than central Government, to put forward proposals to the Secretary of State to designate and create a locally led urban development corporation.

Subsection (4) sets out what authorities will need to do before submitting a proposal to the Secretary of State for designation. That includes what a proposal must contain, who is able to put forward a proposal and who can become an oversight authority. Local authorities will not be able to unilaterally decide to ask the Secretary of State to designate a locally led urban development corporation. Instead, the clause includes a statutory requirement for the proposing authorities to consult local residents, businesses, MPs and other local authorities before making a proposal to the Secretary of State. When the proposal is received by the Secretary of State, they will look carefully at the robustness of the plans, including community involvement and the views expressed, before making a decision. That is why new clause 53 is an unnecessary addition to the consultation requirements and would slow down the designation of development corporation areas.

The purpose of designating an area is to determine the area in which the locally led development corporation will operate and deliver a programme of urban regeneration, and there will be other opportunities for the local community to have their say on the planning proposals for the area through the planning system. Respondents to the consultation noted the considerable amount of up-front resource required to make the case for a locally led development corporation, expressing apprehension about the level of evidence that may be required.

The clause introduces a different test for locally led urban development corporations. Before they are established, the Secretary of State must assess whether it is expedient in the local interest, rather than in the national interest, to designate the development area, which means that local authorities will no longer need to prove that their proposal is in the national interest. A similar provision is introduced for locally led new town development corporations under clause 132. We will provide further guidance to ensure that the evidence required to meet the test is proportionate and provides the certainty that local authorities desire.

We also want to ensure that the proposals are implemented as planned. Subsection (7) requires the Secretary of State to give effect to the proposal, subject to its meeting the statutory test that it is expedient in the local interest. That will include the order providing for the name of the development corporation, the number of board members, who the oversight authority will be, and arrangements for the performance of functions by oversight authorities consisting of more than one local authority. The order must also provide for any other functions that the proposal sets out as planning powers.

Orders designating locally led development corporations will, as for mayoral development corporations, be subject to the negative procedure. That reflects the fact that local democratic scrutiny will have occurred prior to the proposal being permitted to be made. The clause will equalise mayoral and non-mayoral areas with locally led development corporations by standardising the parliamentary process, with democratic oversight at the local level.

We intend to use the powers in the clause as we did the locally led New Towns Act 1981 (Local Authority Oversight) Regulations 2018, which will be subject to the affirmative procedure. That includes setting out which functions will be transferred to the oversight authority. We will consult on regulations in due course to ensure that they are informed by both communities and stakeholders. In the light of that explanation, I ask the hon. Member for Greenwich and Woolwich not to press new clause 53.

[Matthew Pennycook (Greenwich and Woolwich) (Lab)]

It is a pleasure to reconvene under your chairmanship, Mrs Murray. I welcome the two new Ministers to their places. I want to speak to new clause 53, not least because I am not entirely convinced by the reassurances just given by the Minister. As she said, and as the policy paper accompanying the Bill sets out, this part of the Bill makes provision for a new type of locally led urban development corporation accountable to local authorities rather than the Secretary of State. It amends the process for establishing locally led new town development corporations and updates the planning powers available to both centrally and locally led development corporations, bringing them into line with the mayoral development corporation model in terms of enabling them to become local planning authorities for the purposes of local plan making, neighbourhood planning and development management.

In the view of the Opposition, part 6 of the Bill is largely uncontroversial, and we are broadly supportive of the measures contained within it. The development corporation model established by the New Towns Act 1946 was a key part of the post-war planning settlement and, as the Minister referenced, it proved remarkably effective in addressing the housing emergency faced in those years. The 32 new towns built under the post-war UK new towns programme today house over 2.5 million people. Funded by 40-year Government loans, they ultimately not only paid the Treasury back, but returned a surplus. The legacy of urban development corporations is more mixed, but their potential for large-scale regeneration is undeniable and their capacity to successfully deliver major projects, such as the London Olympics, is testament to their utility.

In a real sense, development corporations remain an answer to one of the core weaknesses of the planning system, which is that local planning authorities have the power to develop and set a strategy in a local area, but few powers and little capacity to ensure the necessary development to realise it is delivered. On the other hand, development corporations combine strategic planning capability with powerful delivery mechanisms that help ensure that the development objectives they set are realised. They can, for example, commission private sector companies, or establish their own, to deliver homes and infrastructure, and they can compulsory purchase the land they need to deliver a plan and then control consent to bring forward development. For all those reasons and more, we therefore welcome the fact that the Bill includes provision to amend and enhance the development corporation model. However, we need to ensure that the new types of development corporation provided for by part 6 of the Bill realise their potential and have legitimacy in the eyes of the public—the latter being directly related to the former.

When it comes to their likely efficacy as a means of regenerating areas, the decision to provide for locally led development corporations risks proving a double-edged sword. The advantage is, of course, that a local authority, or authorities, seeking to designate an urban development area and create an urban development corporation, as provided for by clause 131, or to oversee the creation of a new town in an area within their administrative boundaries, as provided for by clause 132, can determine their own priorities rather than having them determined for them by the Department. In that sense, the measures provided for in this part are in keeping with the spirit of the original New Towns Act 1946. The disadvantage is that, in practice, there is likely to be little incentive for a local authority, or authorities, to take the financial and political risk of designating a given area and establishing the necessary development corporation to regenerate it. The recent experience of four north Essex authorities, which attempted unsuccessfully to designate and oversee the development of three garden communities, is a stark illustration of the need for central Government to be far more active in supporting locally led initiatives if they are to succeed.

The success of the post-war UK new towns programme lay, in part, in the fact that each development corporation operated within the context of strong national policy and enjoyed the active and direct support of the Government of the day and their Ministers. It is telling that this part of the Bill places no duty on the Secretary of State to support—financially or otherwise—the locally led development corporations it enables to be established. As things stand, we have no sense of what the Government ultimately wish to achieve by means of the provisions in this part, not least how they believe such locally led development corporations will assist in levelling up, given the likelihood that most will come forward in the south and, I would wager, the south-east of the country. Our new clause 53 is not designed to address the potential challenges involved in ensuring that locally led corporations realise their full potential in that sense, as vehicles for regeneration and levelling up, but I hope the Government will carefully consider the points I have made in that respect.

When it comes to community consultation, I am afraid that I am not satisfied that the proposed measures are sufficient. In terms of the perceived legitimacy of these development corporations, it is essential that they provide for an element of public participation in any proposal to designate and establish such a corporation. At present, the process provided for by clause 131 entails no public inquiry before designation and no right for members of the public to be heard prior to a decision being made.

The same is the case for locally led new town development corporations, as provided for by clause 132. That means the Bill will allow land to be designated as an urban development area, and powerful new bodies to be established to oversee development on such land, without any rights for the local communities affected to have their say and at least test the evidence as part of that process. We believe that is an error, and new clause 53 simply seeks to ensure that proposals to designate land as an urban development area and to establish a locally led urban development corporation would be subject to independent examination, at which the public would have a right to be heard. As you will know, Mrs Murray, that is part of our ongoing efforts throughout the passage of the Bill to overhaul it to ensure that there is an ongoing role for the public in the planning process at these stages, with the obvious benefits that that entails for trust and confidence in the planning system. I look forward to any further thoughts the Minister might have having heard my argument.

[Dehenna Davison]

I thank the shadow Minister for not only expressing his concerns but indicating his broad support for part 6 of the Bill and the enhancements it will make overall to the development corporation model.

The point about trust and confidence in planning and the development corporation system is vital. On the point about consultation, I refer the hon. Member back to the comments I just made: there would be no unilateral ability for local authorities to go straight to the Secretary of State to request that a locally led urban development corporation be set up. There is a statutory requirement for authorities to consult local residents, businesses, MPs and other local authorities before making those representations to the Secretary of State.

On the resources for establishing a development corporation, we recognise that this can be a significant undertaking, but the Government have a range of programmes available to help support local authorities in their growth aspirations. We would encourage local authorities that are interested to approach the Department and see how we can work with them to provide that resource and confidence. On that basis, I once again ask the hon. Member not to press new clause 53, and I commend the clause to the Committee.

Question put and agreed to.

Clause 131 accordingly ordered to stand part of the Bill.

Clause 132

Development corporations for locally-led new towns

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

[The Chair]

With this it will be convenient to discuss new clause 54—Independent examination of locally-led new town development corporations—

“(1) A proposing authority must submit a proposal for designating an area of land as the site of a proposed new town under section 1ZA of the New Towns Act 1981 to the Secretary of State for independent examination.

(2) The examination must be carried out by a person appointed by the Secretary of State.

(3) The purpose of the examination is to determine whether the proposal is in general conformity with national planning policy, the local development plan, and any other material considerations.

(4) Any person who makes representations seeking to change a proposal for designating an area of land as the site of a proposed new town must, if they so request, be given the opportunity to appear before and be heard by the person carrying out the examination.”

This new clause would ensure that proposals to designate land as the site of a proposed new town and to establish a locally-led new town development corporation to oversee it would be subject to independent examination at which the public would have a right to be heard.

[Dehenna Davison]

As I said when discussing clause 131, the Government are committed to ensuring that there is a fit-for-purpose development corporation model for all circumstances. The current designation of a development area and the establishment process for a locally led new town development corporation are overly burdensome. As I have outlined, our consultation on development corporations highlighted the authorities’ concern about the up-front resource required to make the case for a locally led new town development corporation and about uncertainty regarding the process. It was suggested that streamlining the establishment process could go some way to mitigating those concerns.

--- Later in debate ---

[Matthew Pennycook]

I will speak to new clause 54, but I shall be extremely brief. As the Minister will know, the new clause seeks to achieve precisely the same outcome as new clause 53, in relation to locally led urban development corporations, but in relation to the locally led new town development corporations, as provided for by clause 132.

For the record, I reiterate that we are not reassured by the Minister’s comments about public consultation being intrinsic to the proposed measures. If I have understood her correctly in terms of that public consultation, we are talking about the ability for communities to comment after the areas of land in question have been designated and established. I suggest that the process of designating land to be developed in this manner and of establishing a corporation is a matter that local communities will want to have a say on, as is rightly the case, before they get a say on other elements of the process to follow.

We believe it is a mistake to establish a process for creating these corporations in which the public have no input into the designation and no right to be heard at the point that the land in question is delineated and the corporation established. I appreciate that the Minister will give me exactly the same answer she did in response to new clause 53, but I hope that the Government will at least reflect on what it will mean for trust and confidence in the planning system, which we know is extremely low, if local communities are cut out of this stage of the process entirely.

[Dehenna Davison]

Once again, I completely share the hon. Gentleman’s sentiments around trust in the planning system. It is absolutely paramount to the planning system operating and getting that local buy-in—it is really crucial. That is why it is a statutory requirement for a public consultation to be undertaken before the proposal is submitted to the Secretary of State, on the grounds that I outlined in the previous clause. I hope that that provides at least some reassurance that local residents will absolutely be consulted before these processes move forward.

Question put and agreed to.

Clause 132 accordingly ordered to stand part of the Bill.

Clause 133 ordered to stand part of the Bill.

Schedule 12 agreed to.

Clauses 134 to 137 ordered to stand part of the Bill.

Schedule 13 agreed to.

Clause 138

Removal of restrictions on membership of urban development corporations and new town development corporations

[Matthew Pennycook]

I beg to move amendment 183, in clause 138, page 157, line 26, at end insert—

“(4) In the case of a locally-led urban development corporation, the board must include no less than three community members who represent a local qualifying body.

(5) In this section, ‘local qualifying body’ means a parish or town council, or an organisation or body designated as a neighbourhood forum, authorised for the purposes of a neighbourhood development plan or such other bodies that reflect the cultural, social or environmental priorities of the locality to be designated as a locally-led urban development area.”

This amendment would ensure that local communities within the locality to be designated as a locally-led urban development area are represented on the board of a locally-led urban development corporation.

--- Later in debate ---

[Dehenna Davison]

I thank the shadow Minister and the hon. Member for Westmorland and Lonsdale for their contributions, and hope that I can provide a little bit of reassurance.

We feel that, while incredibly well intentioned, the amendments are unnecessary. The appointment of board membership for locally led new town development corporations is already addressed in the New Towns Act 1981 (Local Authority Oversight) Regulations 2018. Those regulations provide that

“the oversight authority must have regard to the desirability of appointing one or more persons resident in or having special knowledge of the locality in which the new town will be situated.”

That could include members from parish councils or local community groups, or organisations that reflect the cultural, social or environmental priorities of the locality.

We intend to replicate that approach for locally led urban development corporations. We intend to set out further details on the composition of board membership in regulations, which will be subject to parliamentary debate. As we did with the New Towns Act 1981 (Local Authority Oversight) Regulations 2018, the Department will consult on draft regulations to ensure that they are appropriate and permit local communities and businesses to have a say.

In appointing independent members, we expect oversight authorities to ensure that the board has the relevant skills and experience needed. That includes those with an understanding of the local area. In accordance with the principles of local authority appointments, the appointments of the chair, deputy chair and independent board members should be through an open, transparent and publicly advertised procedure, which I hope will provide some reassurance to the hon. Member for Westmorland and Lonsdale. I appreciated the examples from his own constituency.

Regarding the suggested minimum of three appointments, it is the Government’s view that it should be up to the oversight authority to determine the appropriate board composition and numbers, based on local circumstances. I hope, therefore, that the hon. Member for Greenwich and Woolwich will agree not to press his amendments.

[Matthew Pennycook]

I thank the Minister for that response and am partly reassured by it. As I hope I made clear, we are trying to drive at what I think is a very limited form of public participation on the boards. I accept what the Minister says, both on what is expected by the Government from oversight authorities in putting the boards together, and the further details, although what “a say” means is yet to be defined. We look forward to seeing in the regulations what those further details entail.

I hope the Minister has taken away our very firm view that there must be an appropriate level of community participation on the membership of the boards so that local communities have trust and confidence in what they are doing. However, I do not intend to press the amendment to a Division at this time. I beg to ask leave to withdraw the amendment.

Amendment, by leave, withdrawn.

Clause 138 ordered to stand part of the Bill.

Clause 139 ordered to stand part of the Bill.

Clause 140

Acquisition by local authorities for purposes of regeneration

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

[The Chair]

With this it will be convenient to discuss the following:

Clauses 141 to 144 stand part.

That schedule 14 be the Fourteenth schedule to the Bill.

[Dehenna Davison]

I will now explain clauses 140 to 144 and schedule 14. The Government want to see local authorities empowered to use compulsory purchase to regenerate their areas, so that places and regions can drive improvements in economic growth and pride in place. The levelling-up White Paper made it clear that we want local communities to be empowered to take the lead, and we want to ensure they have the tools they need to succeed. Key to that is ensuring that local authorities have the right compulsory purchase enabling powers and processes, and the confidence to use them. This is the intent behind the clauses, which focus on modernising and streamlining the compulsory purchase process to make it faster and more effective.

With clause 140, we are making it crystal clear in the Bill that local authorities in England have the power to use compulsory purchase for regeneration purposes and to bridge the gap the urban centre recovery taskforce identified last year, which we are keen to address. Currently, local authorities in England are able to use their compulsory purchase powers for development, redevelopment and improvement purposes.

Clause 140 will ensure that local authorities have the certainty to acquire land compulsorily for regeneration schemes too. That will align them with other public authorities such as Homes England and the Greater London Authority. That could, among other things, improve the social wellbeing of a local authority’s area, while not actually involving the construction or reconstruction of a building. For instance, this regeneration compulsory purchase order power could be used to transform a vacant commercial building into a community hub. Alongside this change, we will bring forward updated guidance to provide more clarity on the use of compulsory purchase for long-term strategic land assembly by local authorities.

On clause 141, we need to ensure that the CPO process is efficient yet accessible and fair for all involved in it. The clause retains the current requirements for the physical deposit of documents and service of notice. It remains the case that sufficient proof of delivery through electronic communications is difficult. Given the nature of compulsory purchase, it is crucial that affected parties receive—and can prove that they have received—the necessary communications. The clause also requires acquiring authorities to make CPO documents and notices available online, and it creates the flexibility for Ministers to direct, in extreme circumstances where the physical deposit of documents is impractical, that online provision is sufficient. Further provisions in clause 148 provide for the application of common standards to compulsory purchase data. As I have described, these amendments begin the modernisation of the CPO process, and I commend clause 141 to the Committee.

Clause 142 will create a faster, more effective confirmation process. At present, a single affected landowner can demand an expensive and lengthy public inquiry for any CPO. This can be used as a delaying tactic, slowing down the decision-making process and increasing the costs for the acquiring authority and others involved. As we know, cost for the authority means cost for the taxpayer. In turn, this can make acquiring authorities, such as local authorities, less inclined to use CPO powers. We believe that the confirmation procedure should reflect the complexity of the order. Many CPOs involve one or a very small number of properties, with little impact outside the boundaries of those properties. Confirmation proceedings for orders like these do not generally need a public inquiry.

We also believe that it is right to give the discretion to the confirming authority to determine the appropriate procedure based on the circumstances, while protecting the right for affected parties to have an oral hearing if they wish. In keeping with those ambitions, clause 142 enables confirming authorities to decide to hold a public local inquiry, or to follow the new representations procedure, which will include an oral hearing if objectors request one. We will engage with stakeholders in shaping the representations procedure to ensure it works practically and produces a faster and more efficient process.

On clause 143, we want to ensure that authorities have the confidence to achieve positive outcomes in making CPOs. Too often when there is a decision to confirm a CPO, the CPO is rejected because of a specific impediment at the point of decision, and that often results in significant delay or even the complete collapse of the scheme. We want authorities to know that where a specific impediment, such as funding uncertainty, remains outstanding at the point of decision, a condition can be imposed for that to be dealt with and discharged at a later point.

Clause 143 achieves that end by introducing the concept of conditional confirmation, which will allow decision makers to confirm CPOs subject to the conditions being met before the compulsory purchase powers may be used. That may assist progress-stalled developments, as conditions could be imposed to force a landowner to follow through on commitments to undertake developments, and if they fail to do that, that will allow a CPO to become operative.

We also want authorities to make their CPOs earlier in the delivery process of a scheme. That will encourage authorities to make their CPOs concurrently with seeking other consents, rather than sequentially after obtaining other consents. Introducing conditional confirmation will support that aim.

To reassure hon. Members, that does not mean that insufficiently prepared CPOs or CPOs without sufficient justification will be conditionally confirmed. The test of there being a compelling case in the public interest to confirm the CPO will absolutely remain. We expect only very specific conditions to be imposed in most cases—one or possibly two to a CPO that otherwise shows a compelling case in the public interest. Guidance will be updated to provide clarity on the imposition of conditions. Initial confirmations will be a significant lever to provide authorities with more confidence in using CPOs and to deliver schemes more quickly.

Clause 144 gives effect to schedule 14, which makes provision in relation to compulsory purchases by Ministers, corresponding to clauses 141 to 143. Given that Ministers may use compulsory purchase in a number of circumstances —for example, to deliver major highway or rail schemes—it is only right that those provisions benefit from improvements to the process. I hope I can get the support of all hon. Members for the clauses.

[Matthew Pennycook]

The Minister referred to at least two further sets of guidance that are to follow. Can she give the Committee any sense of the timeline for that?

[Dehenna Davison]

I cannot today, but I will endeavour to write to the hon. Gentleman within the next 48 hours to provide that clarity.

Question put and agreed to.

Clause 140 accordingly ordered to stand part of the Bill.

Clauses 141 to 144 ordered to stand part of the Bill.

Schedule 14 agreed to.

Clause 145

Consequential amendments relating to date of operation

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

[The Chair]

With this it will be convenient to discuss the following:

Clauses 146 to 149 stand part.

Government new clause 62—Prospects of planning permission for alternative development.

[Dehenna Davison]

I sincerely hope that we can get agreement for these clauses. New clause 62 goes further to deliver the Government’s priority to ensure that the compulsory purchase system is fit for purpose. It will build on other measures to ensure a fair balance between landowners and acquiring authorities in the public interest when it comes to the payment of compensation.

The Land Compensation Act 1961 contains the principal rules for assessing compensation relating to compulsory purchase. Under the current rules, when assessing the open market value of the land to be acquired, there are statutory assumptions that must be taken into account. They include the discounting effects of the compulsory purchase scheme, known as the no scheme principle, and considering the planning prospects of the land being acquired. The latter gives rise to landowners being able to claim hope value as part of their compensation—an issue that has attracted significant attention in recent years, including from the Levelling Up, Housing and Communities Committee.

One method of assessing the prospect of planning consent is to establish appropriate alternative development, namely development that would have received planning permission if the scheme underpinning the compulsory purchase were cancelled. Where appropriate alternative development is established, it may be assumed for valuation purposes that planning permission is in force on the relevant valuation date. That is known as planning certainty. Assuming the value of the appropriate alternative development is greater than the existing use value creates an uplift in the value of the land.

The 1961 Act allows parties concerned with a compulsory purchase to apply to a local planning authority for a certificate to determine whether there is development that, in its opinion, would constitute appropriate alternative development. Certificates of appropriate alternative development, CAADs, are used as a tool to establish whether there is appropriate alternative development on a site, and thus planning certainty for valuation purposes.

Under the current rules, there is no requirement for a CAAD to be applied to establish planning certainty and secure any resulting uplift in the value of land. In addition, when issuing a certificate, local planning authorities are required to identify all developments that they think are appropriate developments, not just developments that match the description of the development being applied for. That can increase the administrative burden on a local planning authority’s resources and the risk of a legal challenge, which results in further costs to the authority and the taxpayer. Expenses incurred by applicants submitting their CAAD applications must be paid for by acquiring authorities.

My Department has been working closely with stakeholders to develop a package of measures to reform the CAAD process and ensure that the assessment of the prospect of planning permission is aligned with normal market conditions. It is important that a balance is struck between landowners and acquiring authorities. We are therefore seeking to introduce Government new clause 62 to ensure that the compulsory purchase compensation regime does not deliver elevated levels of compensation for prospective planning permissions, which would result in more than fair value being paid. That will be achieved by ensuring that compensation attributed to alternative development is claimable only via the issuing of a CAAD and, further, that value attributable to potential alternative development in the future cannot be claimed. Although the prospect of planning permission will still be claimable, our new clause will bring the assessment of value attributable to prospective planning permission in line with the position in a normal market transaction. It will also ensure that valuations of hope value are not disproportionate.

We are very clear that those affected by compulsory purchase are entitled to a fair value for their land, but we want to ensure that the compulsory purchase compensation regime does not lead to elevated compensation, including costs being paid for prospective planning permission, which would result in more than fair value being paid by local authorities, and thus by the taxpayer. I hope that the whole Committee will support Government new clause 62.

[Matthew Pennycook]

I thank the Minister for that very detailed exposition of the purpose of the new clause. She will be pleased to learn that, in general terms, we are supportive of the provisions in part 7 of the Bill, which concerns compulsory purchase. They are sensible and proportionate measures that will give local authorities clearer, more efficient and more effective powers; greater confidence that they can acquire land by compulsion to support regeneration schemes; and greater certainty that land can be assembled and schemes delivered quickly through compulsory purchase.

We also support the Government new clause, which concerns compensation in relation to hope value. The cost of land is a major barrier—only one of many—to development across the country, and to increasing investment in infrastructure and affordable housing. As the Minister made clear, land values are frequently inflated well above agricultural or industrial values because of hope value—that is, the value attributed to the expectation that land could be awarded planning permission for new housing.

Hope value often makes social housebuilding and the provision of infrastructure unviable for local authorities and developers, and the fact that it is based on the assumption that each plot of land will maximise short-term profitability disincentivises long-term value generation. A landowner with a plot of land that might be ideal for specialist or affordable housing, or other essential uses that the market has no incentive whatsoever to deliver, can under the current regime always choose to refrain from developing it, in the expectation that they will receive a far better price in the future for a standard scheme dominated by market-sale homes at current prices.

The 2020 White Paper, “Planning for the Future”, rightly recognised that less than half of the uplift in land values created by the granting of planning permission is being captured by communities to help to pay for infrastructure and affordable housing. Given the demands on captured value when it comes to infrastructure and affordable housing, we agree with the Government that it is right to seek to reform the system, in order to ensure that assessment of value attributable to the likelihood of alternative development is more akin to what it would be in normal market conditions, and to rebalance the position with regard to costs and compensation between landowner and acquiring authority to make it fairer. To that end, we believe that the Government new clause, which proposes implementing a range of changes to section 14 and other sections of the Land Compensation Act 1961, as set out in the first part of the Government’s compulsory purchase compensation reforms consultation, published in June, is good. We are pleased that the Government felt able to bring it forward.

--- Later in debate ---

[Tim Farron]

Obviously, I extend big congratulations to the Government for taking up a proposal that was in the last two Liberal Democrat manifestos—it was one of the few bits I actually wrote. A revision of the Land Compensation Act 1961 is welcome, given that it inflates land prices, and therefore housing prices. That was clearly not the intention 60 years ago, but that has been the consequence. A revision is a very good thing.

As the hon. Member for Greenwich and Woolwich said, we need to consider this revision as part of a suite of measures, and I am keen to press the Minister to take advice and consult widely; there will no doubt be pushback and comments from landowners and developers. I particularly urge her to talk to housing associations, and to organisations such as Shelter, which has campaigned on this issue for decades with great wisdom and insight.

When hope value drives up the price of land, it does two things. First, it makes affordable housing more difficult to create. I have tabled amendments to the Bill that seek to increase local authorities’ powers to deliver affordable housing. That is much more likely to happen if we can make sure that those developments are viable by reducing the cost of land, making its cost fair, rather than inflated. The Government have pushed back on zero-carbon homes because of the cost element, but they may wish to reconsider that. I propose that they do so, and make zero-carbon homes and other environmental measures compulsory at the planning stage. They will be able to afford to do that, and those proposals are much more likely to be viable, if we can reduce the inflated cost of land.

The hope value of land is such a problem because it also stops land coming forward for development. People hang on to it for the sunny day. We need to very clear that there ain’t no sunny day coming, and to say, “This is what you’re going to get for this land. Do you want to help your community by building 40 affordable homes for it, or don’t you?” In the past, we had very restrictive planning rules in the national parks; the thinking was that the more restrictive and clear we were to people in the long term, the more unlikely it was that land would come forward. It is quite the opposite, because people do not hang on waiting for that sunny day—for that big moment at which extreme wealth lands in their lap. Instead, they realise that they will either get some money and do good by the local community, or get nothing.

I welcome the Government’s action, which I think is a valuable and important step forward, but I hope that they will consult widely, especially with those at the forefront of fighting for and developing affordable housing, as they consider perhaps a wider suite of issues to reduce the cost of building.

[Dehenna Davison]

I thank the hon. Member for Westmorland and Lonsdale for his comments. I loved his point about the Lib Dem manifesto; I would love to claim that it is my favourite bedtime reading, but I would not want to mislead the Committee this early in my ministerial career. I thank him for his recommendations about the bodies with which we should engage. We have already engaged with a wide range of stakeholders to ensure that we get the process absolutely right. I thank him also for his passion for affordable housing, which the Government absolutely share. We are keen to make the developments as straightforward as possible—hence some of the reforms that we are making today.

I will write to the shadow Minister, the hon. Member for Greenwich and Woolwich, with more points of clarity. On certainty, I assure him that that is absolutely the intention behind the new clause and the amendments that relate to CAADs. We want to provide certainty to landowners and local authorities about what the outcomes of the process may look like in order to speed up the process and prevent challenges and delay. I hope that reassures him. I will get back to him in due course on the other points he raised.

Question put and agreed to.

Clause 145 accordingly ordered to stand part of the Bill.

Clauses 146 to 149 ordered to stand part of the Bill.

Clause 150

Designated high streets and town centres

[Alex Norris (Nottingham North) (Lab/Co-op)]

I beg to move amendment 185, in clause 150, page 171, line 4, at end insert—

“(2A) Designations under subsections (1) and (2) can only be made following consultation with the local community.”

This amendment would require designation of a high street or town centre to be consulted upon.

--- Later in debate ---

To make amendments 185 and 186 make sense, amendment 195 defines who is considered local in this regard. It is a light provision: we specify “people in the vicinity” because we know who will be interested in these designations and who will not be. The risk of spurious outside efforts is very low, but the amendment adds protection from them. This is an important point; it is about demonstrating that levelling up is not something that is done to communities, whether by Whitehall or the town hall, but something that is done with them. As part of that, there need to be protections and powers for our communities, and our amendments are a very good way of ensuring that those exist.

[Dehenna Davison]

I thank the shadow Minister for his contribution and for his passion about levelling up, which is right at the heart of this Government—if I did not believe that, I could not in good conscience have taken on the job of levelling-up Minister, given that levelling up is so important to me, who I am and what I stand for.

I am particularly grateful to the shadow Minister for his passion regarding high streets, which are the heart of our communities. We need to do all we can to ensure that local authorities and local communities have the tools that they need to deliver and see their high streets thrive. I also thank him for his constructive approach to our policy regarding high street rental auctions, and I hope that we can have some good debates today to make that policy the best it can be, in order to deliver for local areas. He mentioned meeting CAMRA. I am always pleased to meet representatives of CAMRA—they tend to choose the best venues for meetings—so I will definitely take him up on that offer.

Turning to the shadow Minister’s amendments, amendments 185 and 186 relate to the designation of high streets and town centres for the purposes of high street rental auctions. Amendment 185 would require local authorities to consult the local community before the designation can be made. That is linked to amendment 186, which would allow the local community to apply for a street or area to be designated as a town centre or high street.

While I appreciate the genuine concerns behind the amendments, I do not think they are needed. Local authorities are uniquely placed to make that designation, based on their deep knowledge of their own area. Given that high street rental auctions are an additional tool to enable authorities to take control of regenerating their areas, we have to empower them to do so. As such, the Bill will empower local authorities to use high street rental auctions based on the definitions of “high street” and “town centre” set out in clause 150, which require the local authority to take into account the importance of a street or town centre to the local economy. The designation may also be informed by places defined as high streets or town centres in that authority’s local plan, where one exists. We therefore consider that amendments 185 and 186 add an unnecessary extra layer of complexity to the designation process and a further burden on local authorities, which we are concerned may hinder take-up.

Amendment 195 would define the term “local community” as a result of the proposed addition of amendments 185 and 186 to the Bill, which relate to the designation of high streets and town centres for the purposes of high street rental auctions. As I have explained, we do not think those amendments are necessary. I hope I have provided sufficient reassurance that consideration of the needs of the local community will be built into the high street rental auction process, and I ask the hon. Member for Nottingham North to withdraw the amendment.

[Alex Norris]

I am grateful to the Minister for her response. I am pleased to hear that the commitment to levelling up remains at the heart of the Government’s programme, but may I gently say that that remains to be seen? I am conscious that the Bill is obviously from a couple of Secretaries of State ago. Having seen briefing that a lot of what the right hon. Member for Surrey Heath (Michael Gove) did is now considered socialism, I must say that that is not a socialism I would recognise. The Government may need to re-earn that space and show that this really is a priority, and of course we will make significant efforts in this area.

I am slightly disappointed that the Minister is not minded to take up these proposals, particularly amendment 186. What we are actually talking about is community power, which is a crucial part of levelling up; it is absent from the Bill, and the Minister now has a chance to correct that error. There is an expectation during the levelling-up process that we will see a shift of power from Whitehall to town hall, and from Whitehall to communities. If what communities get out of levelling up instead is a shift of power from Whitehall to regional and sub-regional bodies, the Government will not have passed that test. The challenge here is to add that bit that says yes to town hall, but actually goes even further, to our local communities, and the community power we propose would have been the way to do it. I will not push the amendments to a Division, because we will cover community power in later proceedings, but I hope the Minister might reflect a little in the meantime on the points I have made.

I will conclude by saying that, whatever side of the Chamber colleagues are on, and whoever is sitting in our seats in three, four, five or maybe 10 years—I talked about the Localism Act with an 11-year perspective, and they might be here in 11 years—they will say that high street rental auctions are effective in some parts of the country but not in others. The reason will be that we have not given the public strong enough tools to involve themselves where their local authority does not involve them. I hope the Minister will reflect on that, but I beg to ask leave to withdraw the amendment.

Amendment, by leave, withdrawn.

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

--- Later in debate ---

[Dehenna Davison]

I am grateful to both hon. Members for sharing their thoughts, and particularly to the hon. Member for York Central—I have had a number of fantastic trips to York, and it is a brilliant place to go. I have never actually been to Spark, so that is definitely on my radar. I thank the hon. Member for mentioning it.

On the point about warehouses being excluded, this is largely because it is incredibly rare that warehouses are in the area that is determined as the high street. That is why we have excluded them in this way. I am certainly happy to sit down and have a conversation about it, if that would be helpful.

Question put and agreed to.

Clause 150 accordingly ordered to stand part of the Bill.

Clause 151 ordered to stand part of the Bill.

Clause 152

Vacancy condition

[Alex Norris]

I beg to move amendment 187, in clause 152, page 172, line 21, leave out subsections (5) and (6).

This amendment would remove the Henry VIII power for the Secretary of State to alter the circumstances of vacancy.

--- Later in debate ---

I understand that there are times when things are not foreseeable; my hon. Friend the Member for Greenwich and Woolwich still has the scars from the exit from EU legislation. This is not one of those times. I do not think the Government have got this right. I hope that the Minister will reflect on that, and will take the provisions out, so that we can proceed more clearly.

[Dehenna Davison]

Once again, I thank the shadow Minister for his incredibly constructive approach. I certainly hope to be in post long enough to see the Levelling-up and Regeneration Bill make it on to the statute books. Watch this space, but that is certainly my plan. I am grateful to the hon. Member for the points that he raised. As we have discussed, high street rental auctions are a new concept and power for local authorities. The amendments focus on the powers to amend elements of the process for introducing high street rental auctions. We believe that those powers provide much-needed flexibility to ensure that auctions deliver the intended policy outcome of regenerating our high streets and town centres.

Clause 152 sets out the criteria for the vacancy condition, which must be met before local authorities can consider premises for a high street rental auction. For the vacancy condition to be satisfied, as the hon. Member for Nottingham North has highlighted, the property must be unoccupied on that day, and have either been unoccupied for the last year, or for a total of 366 days in the last two years. That provision aims to ensure that only reasonably long-term vacant properties are subjected to high street rental auctions, and to set out where use of premises will not count as occupation when assessing the vacancy condition.

The vacancy condition will have an important bearing on how widely used the measure is, and on the frequency with which the power can be used by local authorities. As it is a new power, the vacancy condition may need to be changed in future. The experience of implementing high street rental auctions may lead us to want to alter the period, so that we can ensure that the measure targets the right premises. For example, there may be evidence that a longer or shorter period should be afforded prior to implementation. Amendment 187 would remove that power and flexibility. The Government accept that changing the vacancy condition would be a significant change. That is why any regulations to amend the vacancy condition will be subject to the affirmative procedure, which means that they will come into effect only if approved by Parliament.

Amendment 192 would remove the flexibility in clause 160 to allow for the addition, amendment or removal of grounds of appeal against a final letting notice set out in schedule 15. A final letting notice informs the landlord of a local authority’s intent to proceed to auction, and must be enforced for an auction to be carried out. I recognise that we may need to amend those grounds of appeal in the future in the light of experience in operating the new power. For instance, we may find a need to increase the safeguards available to landlords, or to revise the grounds of appeal where they are found to undermine the effectiveness of the measures and overall policy objective.

As we have discussed, we appreciate the significance of the change, and the importance of parliamentary scrutiny of the grounds of appeal. To reiterate, any change will be subject to the affirmative procedure, and the approval of Parliament, before coming into force. I hope that has provided reassurance, and I urge the hon. Member for Nottingham North not to press amendment 187 to a Division.

[Alex Norris]

I am grateful to the Minister for that answer, and I am glad that she accepts that these would be significant changes to make by regulation. I am glad of the confirmation regarding the affirmative procedure.

I am not sure that I can accept the argument of flexibility. I understand that we are talking about novel powers, and that we may learn by experience what does and does not work. However, I cannot believe that there would not be appropriate legislative vehicles, either in a local government, property or business space, that would give the Government the opportunity to alter the provision, rather than their doing things in the way that they propose, which I think is a cop-out and backing into the tackle, so I will press amendment 187 to a Division.

Question put, That the amendment be made.

--- Later in debate ---

[Alex Norris]

Very briefly, I have a similar question to the one I asked during discussion of clause 151, which was not quite addressed. Clause 153 reads as follows:

“the ‘local benefit condition’ is satisfied in relation to premises if the local authority considers that the occupation of the premises for a suitable high-street use would be beneficial to the local economy, society or environment.”

Again, whether the condition is met is sort of in the eye of the beholder. Presumably, that provision means that the whole process could be waylaid at the stroke of a pen if the local authority was so minded. To reiterate the question from clause 151, what protection is there if the power is not used appropriately?

[Dehenna Davison]

My apologies for not getting to that point. I will write to the hon. Gentleman with some assurances in due course.

Question put and agreed to.

Clause 153 accordingly ordered to stand part of the Bill.

Clause 154

Initial notice

[Alex Norris]

I beg to move amendment 189, in clause 154, page 173, line 5, leave out “ten weeks” and insert “28 days”.

This amendment would reduce the period after which an initial letting notice would expire to 28 days.

With clause 154, we are getting deeper into the detail of how the process is likely to work. It is right that it should be a tight process. Ultimately, we are talking about private assets, and it is important that the state does not act in an overbearing way; we must establish a balance between private and public interests. At the moment, the balance tilts entirely towards landlords, which leaves long-running vacant and derelict premises blighting our communities. This part of the Bill is about finding the balance, but it must be a fair balance.

That process starts with clause 154 and the initial notice. When a local authority identifies a premise that satisfies the condition of having been on a high street or in a town centre, and satisfies the vacancy condition, it can initiate a high street rental auction, which it does by serving an initial notice that basically tells the landlord to use the premise or an auction will take place.

Clause 154 sets out that an initial letting notice will be in force for 10 weeks, and that a final letting notice can be served only while the initial notice is in force; we will cover that shortly. In essence, I suspect that this 10-week period will act as a de facto time limit—a period during which the landlord must find tenants; otherwise, the local authority can move the process on. This is a point of taste, but our view is that 10 weeks is too long. If we add the 14 weeks of the final notice period, which we will get to shortly, that makes a 24-week process. Of course, the premises will have already been vacant for at least a year, or 366 days in the preceding two years. That is a long time on top.

We want the Bill to deliver swift action to bring about the change that people want in their communities; we do not want a long process. The amendment seeks to rectify that by specifying a shorter notice period of 28 days. We think four weeks is more agreeable than 10 weeks. Given how long the landlord will have had already, four weeks is ample time for them to understand what will happen, and to act promptly if they wish. Certainly once these powers are on the statute book, such a notice should not come as a surprise, especially as it will have been preceded by a long period of vacancy. It is the right amount of time to encourage landlords to find new tenants promptly as a last opportunity before the process starts. That speed strikes the fine balance between private and public interest.

[Dehenna Davison]

I thank the shadow Minister for his contribution. The Government are keen to get the process right, and to make it as speedy as possible. There is no one more keen than I to fill the vacant properties on our high street. He talked about getting the balance right between private and public interest, and we had that in mind when drawing up the legislation. As he outlined, the amendment seeks to reduce the initial letting notice period from 10 weeks to 28 days. It is set at 10 weeks to provide the landlord with a reasonable amount of time to work with the local authority to let the premises. If the landlord fails to let the property within eight weeks, the local authority will then have two weeks to serve a final letting notice. Reducing the initial letting notice period to 28 days increases the risk of a number of high street properties going through the auction process unnecessarily, as landlords will have significantly less time to find a new tenant once an initial letting notice is served. The point is that we want to get properties filled; that is the intention.

We do not think 28 days is a reasonable period for landlords to find a tenant and complete a letting once an initial notice is served. There is also a desire to allow local authorities to work with landlords where possible to find a tenant, and the additional time allows for that. I appreciate the desire from all of us to get vacant premises filled, but we need to strike the right balance, so that we can find sustainable tenants to drive up economic growth. I gently ask that the amendment be withdrawn.

[Alex Norris]

I am grateful for the Minister’s explanation of the Government’s thoughts. Again, as a point of taste, I think that four weeks would be reasonable because of the preceding period of time. I also expect that local authorities—who are very canny in these processes—will be engaging informally. There will be a whole informal discussion before we get anywhere near this process about what might happen if the premises are not used. I would hope that would salve some of the Minister’s concerns.

I am also not 100% convinced that the amendment would cause lots of properties to unnecessarily go through the auction process. If properties have had a year of vacancy, or 366 days of vacancies in two years, I find it difficult to agree with the idea of them just being sat there waiting to be rented out, and landlords having not quite got round to it. Nevertheless, this is a point of taste, and I do not intend to press the amendment to a Division. We will perhaps unpack the issue more when we get to the final notice element. I beg to ask leave to withdraw the amendment.

Amendment, by leave, withdrawn.

Clause 154 ordered to stand part of the Bill.

Ordered, That further consideration be now adjourned. —(Nigel Huddleston.)

Levelling-up and Regeneration Bill (Twenty Third sitting)

Dehenna Davison Excerpts

Committee stage
Thursday 13th October 2022 Public Bill Committees

[Alex Norris (Nottingham North) (Lab/Co-op)]

I beg to move amendment 190, in clause 155, page 173, line 14, at end insert—

“(c) transfer the premises to a related entity.”

This amendment would prevent the landlord from transferring the premises between related entities while the initial letting notice is in force.

It is a pleasure to resume proceedings with you in the Chair, Mr Hollobone. The amendment, which is in my name and that of my colleagues, deals with an important issue. Its substance is perhaps not my most elegant work, but I am interested to hear the Minister’s views.

With this clause we move on to what a landlord can and cannot do while operating under the initial notice. As the Minister explained, in practice the notices are likely to act as a kind of kick-up-the-backside provision—a shock to the landlords to get them moving and renting out their premises, lest they end up renting to someone they were not intending to rent to, or for less than they were hoping for.

Subsection (1) prohibits landlords from entering into contracts for the building—other than sale of the site—without the consent of the local authority. In reality, it is a limited provision, as the local authority, as covered in clause 156, must grant approval, provided that the landlord has agreed a lengthy tenancy that starts shortly. We will cover that more fully in the next debate.

The restrictions at least seek to prevent landlords from using chicanery to escape their obligations—for example, entering into a bogus tenancy including an immediate break clause. A new tenant—possibly a friend or family member—might be a tenant for a day, then the break clause could be executed, the premises vacated and the clock restarted. We think it is right that these sorts of loopholes are closed.

Subsection (1)(a) states that landlords of a premises may not

“grant, or agree to grant, a tenancy of, or licence to occupy, the premises”,

and paragraph (b) say that they may not

“enter into any other agreement”—

none of that—

“without the written consent of the local authority that served the notice.”

They can sell the property or enter into a proper tenancy arrangement, but nothing else.

With the amendment, I want to probe the Minister about whether the clause leaves a gap where a landlord might seek to pass ownership of a premises to a friend or family member, or perhaps a related company, in order to establish new ownership and restart the clock when in reality nothing has changed. As I said, the amendment might not be the most elegant way to do this, but I am interested in the Minister’s views on how to avoid any such loophole.

[The Parliamentary Under-Secretary of State for Levelling Up, Housing and Communities (Dehenna Davison)]

It is a pleasure to serve under your chairmanship, Mr Hollobone. The shadow Minister expressed a fair concern, and I hope I can reassure him.

The clause places restrictions on landlords in relation to any new lettings of the premises while the initial letting notice is in force. As discussed, the proposed amendment is intended to prevent landlords from transferring their interest to a related entity in order to avoid the high street rental auction process. We share the concerns that underpin the amendment, but we consider it unnecessary, because any related party that purchases the landlord’s interest will still be bound by the initial letting notice, as made clear by clause 173(7), which tackles exactly that concern and removes the incentive for landlords to transfer the property to related entities in order to avoid the auction process. I hope that reassures the shadow Minister.

[Alex Norris]

Yes, it does. I had not seen that, so I appreciate the clarity. That closes the point. I thank the Minister and beg to ask leave to withdraw the amendment.

Amendment, by leave, withdrawn.

Clause 155 ordered to stand part of the Bill.

Clause 156 ordered to stand part of the Bill.

Clause 157

Final notice

[Alex Norris]

I beg to move amendment 191, in clause 157, page 174, line 25, leave out “eight weeks” and insert “two weeks”.

This amendment would reduce the period of time before a final letting notice can be issued to two weeks.

Clause 157 establishes final notices. These are used when a premise has lain vacant for a year or 366 days over two years and has been served its initial notice, and still no action has taken place and the premises continue to lay vacant, obviously having an impact on its local community. On the face of the Bill, final notice has to take place after eight weeks have elapsed from the serving of the initial notice, but not before the notice itself expires after 10 weeks, as per clause 154(2)(b). A final notice of intent to carry out a high street rental auction can take place between the eight-week marker and the 10-week marker.

As we stated in the earlier debate, the Labour party feel that that period is too long. Those communities have waited long enough, and those landlords have had long enough. Instead, amendment 191 would allow for the final letting notice to be served after two weeks have passed following the serving of the initial letting notice. The amendment would have worked a little better had our earlier amendment been more successful in moving the Minister, because that would have established a regime whereby the initial notice lasted four weeks, with the final notice being served at any time after the first two weeks. As we said earlier, we believe that would be a good enough window to get the process going, but that was not the view of the Committee. On its own, this amendment would ensure that the initial notice still lasted for 10 weeks, but the final letting notice would be servable by the local authority at any time after the first two weeks. That is less good than it could have been, but it remains better than what is on the face of the Bill.

In our earlier discussion, we talked about the expectation that landlords would be using this time to seek a tenant, work with the local authority to find the appropriate tenant and move things on—which was why they needed 10 weeks rather than four weeks—and that the local authority would be an important part of supporting that process, both formally and informally. That probably leaves local authorities as good final arbiters to say, “Actually, this is not going anywhere. There is either no engagement, or no meaningful engagement. We have already been in this situation informally for a year, and have now been in the process formally for a couple of weeks. There is no prospect of this moving forwards.” That decision could be taken after two weeks and a day, after six weeks and a day, or—as is currently on the face of the Bill—after eight weeks, but nevertheless, we are giving them a bit of case-by-case flexibility. I do not want to rehash the argument about the premises having been vacant for long enough, because that point has been made, but our amendment would add a bit of flexibility for some common sense to be applied. I would be interested in the Minister’s views.

[Dehenna Davison]

I completely appreciate the concerns raised by the shadow Minister. I think he shares my real desire to get those vacant properties filled as quickly as possible, so we are at least starting from a common ground.

As has already been debated, the amendment relates to clause 157, which currently provides that a local authority may serve a final letting notice on the landlord of a vacant high street premises eight weeks after the initial letting notice has been served. The amendment would allow the local authority to serve a final letting notice two weeks after the initial letter had been served. It is important to note that service of the final letting notice allows the local authority to carry out a rental auction, and means that further, more significant restrictions on letting are imposed on landlords, as set out in clause 158. While reducing the period to two weeks could help to fill vacant premises more quickly, we consider that, on balance, landlords should be afforded a further opportunity for a reasonable period to fill the vacant premises after an initial letting notice has been served. We all know that property negotiations can be incredibly complex and often take parties several weeks to agree, so we consider a two-week period to be too short, and think that eight weeks is more realistic and reasonable.

We do want to enable local authorities to deliver high street rental auctions within 24 weeks when possible, as they are intended to be the quickest possible intervention that strikes the right balance between the public interest and the private interest. However, we need to provide landlords and local authorities with reasonable and realistic timescales and build appropriate safeguards into the process. That includes giving landlords a reasonable opportunity to respond to the initial letting notice by allowing them a further opportunity over an eight-week period to let the premises themselves, and a 14-day period to decide whether to appeal against a final letting notice.

Consideration also has to be given to the interests of the local authority, as making the process too quick could place an additional and unreasonable strain on local authorities that are looking to exercise these powers and deter them from using them at all. Local authorities are effectively given a 12-week period to run the auction process and complete the tenancy contract. Given those explanations, I really hope that the hon. Member will withdraw the amendment.

[Alex Norris]

I am grateful for that explanation. As we have discussed previously, there is a point of difference on what we consider sufficient time, notwithstanding that, as we have seen on other clauses, the period of time under a letting notice comes after a long period of vacancy already. I would make the case strongly that this is an issue of inclination rather than time for the landlords, but I accept the points that the Minister has made. We have different views on this issue. I am not going to pursue it today, but I suspect we will come back to it at a later opportunity. I beg to ask leave to withdraw the amendment.

Amendment, by leave, withdrawn.

Clause 157 ordered to stand part of the Bill.

Clauses 158 and 159 ordered to stand part of the Bill.

Clause 160

Counter-notice

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

[The Chair]

With this it will be convenient to discuss the following:

That schedule 15 be the Fifteenth schedule to the Bill.

Clause 161 stand part.

[Dehenna Davison]

Clauses 160 and 161, and schedule 15, deal with the issue of appeals by landlords against a final letting notice. Under clause 160, the landlord will be able to appeal against a final letting notice within 14 days of receipt by issuing a counter-notice to the relevant local authority. The counter-notice must set out the grounds for appeal.

Schedule 15 specifies what grounds of appeal are permitted. They include whether the vacancy condition and local benefit condition have been satisfied, the suitability of premises for high street use, and the opportunity for the landlord to re-let the premises within an eight-week window following the initial letting notice. Schedule 15 also provides for grounds of appeal based on redevelopment by the landlord or where the landlord intends to occupy the premises, which is taken from other similar contexts, such as the opposed lease renewal process in the Landlord and Tenant Act 1954.

The right of appeal is an important safeguard for landlords, and the step of issuing a counter-notice allows both parties to take stock before matters are referred to the county court. Clause 160 gives the relevant local authority early warning of the landlord’s intention to appeal, and clause 161 provides an opportunity to withdraw the final letting notice before any appeal application is made by the landlord to the county court. Local authorities may be reluctant to serve a final letting notice without that additional step, because they will want visibility on whether the landlord intends to appeal before matters are submitted to the county court. Clause 161 sets out further procedural requirements relating to the landlord’s appeal against the final letting notice, particularly the role of the county court in considering such an appeal.

An appeal by the landlord must be limited to the grounds specified in the counter-notice and can be brought only in the county court. The court will then have the power to confirm or revoke the final letting notice. An appeal must be brought within 28 days of receipt of the counter-notice by the local authority. Where the landlord appeals, the clause also extends the 14-week window set for the letting procedure, as set out in clause 157, so that the local authority has sufficient time to complete a high street rental auction process if the landlord’s appeal is unsuccessful.

These clauses and schedule 15 provide clear timeframes and requirements for a landlord to appeal a final letting notice. They also allow local authorities to establish quickly whether it is clear to proceed with the auction process without fear that a late appeal may disrupt it. On that basis, I commend the clauses and schedule to the Committee.

[Alex Norris]

We appreciate that this is an important part of the process, so I will be brief. We made the same point prior to the break for lunch, but again I find it odd that the Government think they need to reserve to themselves, in subsection (5)(a), (b) and (c), the power to add grounds for appeal through a counter-notice.

This is a serious thing. We are talking about a rare situation, especially for a Conservative Government, whereby private property will essentially be transferred to the state, in terms of its agency, so that it can be used properly—although the receipts will of course still go to the private landlord. I would be surprised if the Government do not know, or think they do not know, the grounds on which that decision would be appealable. I therefore wonder whether they have really bottomed out the process. As with previous parts of the Bill, I think they are retaining too much power for later. They have broadly got the measure right and should commit to it, so these are not necessary provisions, and I will be interested to hear why the Minister thinks they are.

[Dehenna Davison]

I am grateful to the shadow Minister for voicing his concerns; I completely appreciate them. As I said earlier, it is important that we get this process right. Given that this is a novel policy, we want to make sure we get it right. Through experience of implementing the rental auctions, we may want to alter the grounds of appeal to ensure that the measure can target the right protections and make sure they are in place if, for example, there is evidence that the policy is preventing landlords from using the property in ways that are beneficial and complementary to the policy. It is all about ensuring we have the flexibility to get this right and make sure it works. We want to fill vacant properties while ensuring that landlords have adequate protections. I hope that has provided some reassurance.

Question put and agreed to.

Clause 160 accordingly ordered to stand part of the Bill.

Schedule 15 agreed to.

Clause 161 ordered to stand part of the Bill.

Clause 162

Rental auctions

[Alex Norris]

I beg to move amendment 193, in clause 162, page 177, line 36, at end insert

“These regulations must be laid before Parliament before the end of a period of 90 days beginning with Royal Assent.”

This amendment would require the Secretary of State to lay any regulations under this section before Parliament within a period of 90 days.

The amendment reflects the Opposition’s anxiety, which the Minister has gone some way to assuage, that there are significant portions of the Bill—those to be discussed and those that we have discussed—that are not likely to see the statute book. I know we cannot live and die by briefing in the media, but it has a habit of being on the nose very often. There is a sense that we will lose provisions from the Bill, and this is one that we are most likely to lose. It is of its time, given the Secretary of State when it was written, and less so of the supposed direction today. I want to probe that a little.

Clause 162 sets the rules for rental auctions—or, to be more precise, subsection (3) says that there must be rules, and the Government have reserved the power to set them. I think that would have been better done by schedules to the Bill, but that is the path chosen. The rules do not have to be very difficult. Subsection (4) says that the local authority must designate suitable use of the premises. That seems reasonable. We always argue for public engagement, but I suspect that the existing use classes are likely to guide that.

Beyond that, there needs to be an advertisement and an auction held. We support subsection (8), which allows a degree of local variance, although subsection (7) slightly contradicts that, in the sense that regulations set by the Secretary of State are likely to constrain that. I want to hear from the Minister that that is likely to applied rightly. I hope that local authorities will have the headroom to hold auctions in a way that is practical, otherwise central Government might as well conduct them themselves.

I do not think all the subsections in sum create a particularly complicated picture. Actually, I think those of us in this Committee could design a system very quickly; I think it is quite obvious how to hold an auction on a premises that has a use-class designation. The terms of the clause, and in particular subsection (7), may delay the provisions coming into force, but public expectation is building and we must deliver on it. Amendment 193, perhaps ironically or perhaps elegantly, imposes a “use it or lose it” provision on the existing “use it or lose it” provision to ensure that the regulations must be laid within 90 days of Royal Assent. I cannot believe that that would not be enough time, so I am keen to hear from the Minister when we would be likely to see those regulations.

[Dehenna Davison]

Again, I am grateful to the shadow Minister for his clarity on the intention behind the amendment, which I think is well intentioned. It seeks to require that regulations to implement the rental auction process are laid within 90 days of the Bill gaining Royal Assent.

Clause 162 sets out the principles of the rental auction process. It is likely that a significant amount of detail will need to be provided in relation to the process that will be procedural and technical. I firmly believe that that would be more appropriately dealt with through regulations. Although we are looking to make those regulations as soon as possible, at this stage it is not possible to commit to a timeline of 90 days, because those regulations will be informed by extensive engagement with the sector on the rental auction process. There is a need to consult, and we would like the input of local authorities, which will be responsible for arranging the auction process, and landlords, who will have an interest in how that rental auction is run. We anticipate consulting on those measures shortly—this autumn—which will allow any feedback to be taken into account in the detail of the regulations. More details will be available later in the year, and I will ensure that I write to the shadow Minister as we have them.

Given that this is a new and innovative policy, the proposed engagement is crucial to ensure that rental auctions operate as intended and result in genuine regeneration and levelling up. I therefore ask the hon. Gentleman to withdraw the amendment.

[Alex Norris]

I am grateful for that response. I hear what the Minister says about the significant amount of detail and technical elements that are likely to follow. I am not 100% persuaded that auctions are that complicated. Anyone who has ever attended one will know that they are actually quite brutal and terrifying experiences, with very clear and defined outcomes. It never feels like there are many shades of the grey in the auction room. I hear what the Minister says, particularly about engagement, and I would never speak against that. I hope that there is a sense of purpose and a desire to get on with the provision, however, because communities are waiting for it, so the sooner we can do that, the better. On that basis, I am happy to beg to ask leave to withdraw the amendment.

Amendment, by leave, withdrawn.

Clause 162 ordered to stand part of the Bill.

Clause 163

Power to contract for tenancy

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

--- Later in debate ---

[Alex Norris]

I have three questions. Clause 163(1)(b) provides the power to contract for a tenancy if

“the period of 42 days beginning with the day on which that notice took effect has elapsed”.

I understand why there needs to be time, but I am not sure why a minimum time has been set quite so quickly. It might take a number of weeks to get a tenancy together, but why include a hard six-week period that will add to and elongate the process?

Clauses 164(5) and 166(3) address, respectively, pre-tenancy works and work that the local authority might have to do

“in order to make an effective grant.”

Are the costs incurred by a local authority in making a premises ready rechargeable?

Clause 165(7) provides for a reserve power to make regulation. I will not rehash that argument, but for clarity, do the Government expect a relatively simple tenancy equivalent to a general market or high street tenancy?

[Dehenna Davison]

I am grateful to the hon. Members for York Central and for Nottingham North for their remarks.

The hon. Lady raised a good point. On her drafting concern, clause 165(6) refers to schedule 16. Will she please let me know if that is not clear, and I will ensure that it is rectified? But my expert team have told me that that is the case. We can pick this up afterwards if need be.

[Rachael Maskell]

Schedule 16 refers back to clause 164, not 165, according to the note next to the schedule, on page 320. I am curious, shall we say, and that further adds to my curiosity, because there is no true cross-referencing, then, to the right clause.

[Dehenna Davison]

I will pick that up afterwards and write to the hon. Member with some clarity on that point.

On the point about larger properties—department stores and so on—I think that we all have that concern. We can probably all think of, in our high streets or the places where we grew up, department stores that are sitting empty and that we want to be filled, but filled in the right way. The hon. Member made reference to super-nightclubs. I am sure that there would be a few people in favour of such measures, but I think the local community would much rather see pop-ups and small independent businesses appearing in these places. Again, we want to absolutely ensure that we get this right. There is the definition of “premises” in clause 177(3). It does envision powers applying to part of a building. This could be a potential solution, but I am happy to sit down with the hon. Member afterwards to see what more we can do to reassure her and, indeed, people across the country on the point.

On the point about chargeable costs, this is something we hope will get picked up in the consultation, but the intention is to spread this between the landlord and the tenant as far as possible. Again, I am happy to take some time with the shadow Minister, the hon. Member for Nottingham North, to provide some clarity on the point after Committee has concluded.

Question put and agreed to.

Clause 163 accordingly ordered to stand part of the Bill.

Clause 164 ordered to stand part of the Bill.

Schedule 16 agreed to.

Clauses 165 to 168 ordered to stand part of the Bill.

Clause 169

Power to require provision of information

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

[The Chair]

With this it will be convenient to discuss clauses 170 to 172 stand part.

[Dehenna Davison]

Clauses 169 to 172 relate to the powers of local authorities to acquire information about commercial properties in order to facilitate the process of running high street rental auctions. They also deal with circumstances in which that information is not forthcoming.

As I have explained, local authorities will need information on qualifying high street premises in order to enable them to pursue the high street rental auctions process. That includes details of the landlord, to enable a local authority to serve the letting notices. It also includes information on the premises that will need to be provided to prospective bidders as part of the auction process. Some of the information may be publicly available, but much of it will be in the possession of the landlord or those who have an interest in the premises. Clause 169 therefore gives the local authority the power to request information about premises in a designated high street or designated town centre from persons who appear to have an interest in those premises.

Some landlords may be less co-operative than others in complying with this process. Without this power, landlords could easily frustrate the process by refusing to provide information about their premises. We also consider it necessary to incentivise landlords to provide this information through the backing of criminal sanctions. That is why this clause includes an offence. If a person, without reasonable excuse, fails to comply with a request for information about premises or gives false information, they are liable on summary conviction to a fine not exceeding £2,500.

Clause 170 deals with the circumstances in which local authorities may need survey information on the condition of qualifying high street premises in order to assess the suitability of premises for high street uses and the rental auction process. This clause gives local authorities the power to enter and survey premises situated in a designated high street or town centre to obtain survey information, if they so choose. The power is necessary to ensure the effectiveness of the measures. Again, some landlords might be less co-operative than others and could frustrate the process by refusing access to local authorities.

Clause 170, however, also provides landlords with certain safeguards that usually apply to powers of entry. For example, local authorities are required to give advance notice of at least 14 days to the landlord before exercising the powers; and local authorities may only exercise the power at a reasonable time, and not in a way that involves the use of force, except on the authority of the warrant issued by a justice of the peace. Given the safeguards, landlords will have the opportunity to grant access. The premises are likely to be non-domestic and vacant, so the exercise of the powers is unlikely to harm the interests of landlords and should be only a mild inconvenience.

Clause 171 sets out the offences that apply in relation to the power of entry under the previous clause. As I said, we believe it best to incentivise landlords to provide access to premises that may be subject to high street rental auctions through the backing of criminal sanctions. This clause therefore provides for a fine of up to £1,000 for obstruction. It also provides the landlord with a safeguard by making it a criminal offence punishable by up to two years’ imprisonment for a person in the exercise of their power of entry to disclose confidential information obtained in the exercise of the power for purposes other than high street rental auctions.

Finally, clause 172 gives local authorities the ability to apply to the county court for an extension to the period that applies to the high street rental auction process. That is considered necessary to prevent landlords from frustrating the process by seeking to time out the local authority by not complying with requests for information, providing false information or obstructing access to the premises. I commend the clauses to the Committee.

[Alex Norris]

I have two quick questions. First, I want to check that I am reading clause 169(5) correctly. When a local authority asks for information from a landlord—an important provision—that is in a non-prescribed form. The Government do not intend to prescribe the form; it will just be the form that the local authority sees fit to use.

Secondly, clause 172 is important and tries to prevent landlords from trying to take local authorities and communities for a long walk to run out the clock. The clause means that a court may add time, which is very welcome. Will the Government be clear about that to local authorities, because one thing that will put local authorities off is the possibility that they could just go on a quixotic journey through lawyers’ letters, never actually getting anywhere? However, clause 172 should give us confidence that that will not be the case. I hope that the Minister can address those two points.

[Dehenna Davison]

Again, I thank the shadow Minister for his questions. My understanding is that his understanding is correct about the information being provided, but I will write to him for clarity.

On the shadow Minister’s point about not wanting local authorities to go around the houses in this legal process, we are absolutely trying to make the process as straightforward as we can. Again, the ultimate aim is to get the vacant premises let out and in use, which is why we want to make the process as swift as possible, while ensuring that there are sufficient safeguards in the legal process.

Question put and agreed to.

Clause 169 accordingly ordered to stand part of the Bill.

Clauses 170 to 174 ordered to stand part of the Bill.

Clause 175

Compensation

[Alex Norris]

I beg to move amendment 194, in clause 175, page 185, line 16, at end insert—

“(1A) Compensation for damage under subsection (1) does not include damage that reasonably occurred gaining access to the site or premises where a landlord fails to grant such access.”

This amendment would exempt from compensation damage that is caused when the authority, or their agent, needs to force access to a site following the failure to allow such access by the landlord.

If this part of the Bill is used proactively by local authorities and communities, as we and the Government want, it will doubtlessly be a disruptive one—it is meant to be a disruptive one. I have no doubt there will be cases where some landlords think the best course of action is to ignore the process entirely, especially in the cases of landlords based a long way away from the communities where the premises may be based. There have to be powers, as covered in clause 170, for the local authority to enter a premises, and we fully support that. It is necessary to have a look at the place, for a start, but it is also necessary to let it out to the winner of the auction.

Clause 175 provides that where this power has been used and damage has been caused, the landlord has a right to compensation. That is fair; it is wrong that landlords might sit on assets and help drag the community down, but nevertheless the premises are their property, and it is right that they are treated with respect. When that is not the case, they ought to be able to seek redress and compensation. I want to try and square the two circles; in a case where damage has occurred as the landlord has not been willing to grant access to the premises in line with the provisions of the Bill, they perhaps should not get compensation. If they refuse to remove a lock, it is reasonable to think that the lock might be cut off.

Amendment 194 would cover this. It would mean that damage could not be claimed for where it reasonably occurred when seeking access. There are two protections; first, that the damage happens reasonably—for example, cutting off the lock by knocking a wall through would not be proportionate; and secondly, that it follows the refusal of a landlord who has not availed the local authority of the opportunity to enter, so a reasonable action has had to take place. That is a fair balance between the protection of property, and compliance with law and the rule of law more generally. I am interested in the Minister’s response.

[Dehenna Davison]

Again, I thank the shadow Minister for his clarity on the intention behind the amendment. He outlined that the amendment seeks to clarify circumstances in which compensation will be paid as a result of damage caused by the local authority or their agent entering the property, pursuant to their power of entry in clause 170 where a landlord has refused to grant access.

Although we fully understand the sentiment behind the amendment, we consider it more appropriate to provide landlords with a general entitlement to seek compensation for damage where local authorities have exercised their power of entry. The upper tribunal can then decide whether there are any circumstances that can be taken into account that affect the landlord’s entitlement to compensation, rather than providing for specific exemptions within the primary legislation. This is the approach we have adopted in other legislation, such as the compensation provisions in section 176 of the Housing and Planning Act 2016, which relate to the power to enter and survey land. On that basis, we are not able to accept the amendment, and I ask the hon. Member to withdraw it.

[Alex Norris]

In general, I am quite sceptical, where arrangements rely on what are often relatively small sums of money, that there will be formal court backing. Given what the Minister has said about alignment with other provisions, that is probably enough to give me reassurance for now. I beg to ask leave to withdraw the amendment.

Amendment, by leave, withdrawn.

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

[The Chair]

With this it will be convenient to discuss the following:

Clauses 176 and 177 stand part.

New clause 55—Resources—

“(1) Within a period of 90 days beginning from Royal Assent the Secretary of State must publish a report detailing the new resources made available by His Majesty’s Government to local authorities in order to exercise Part 8 powers.

(2) In order to discharge the powers under Part 8, Local authorities may charge landlords for associated reasonable costs.”.

[Dehenna Davison]

As we have already debated, clause 175 entitles a landlord to compensation for damage resulting from the exercise of the power of entry by local authorities. This is an established approach, as powers of entry on to private land where compulsory powers are being considered are typically given to statutory authorities on the basis that compensation is payable by those authorities for damage suffered by the landowner, and as a result of the exercise of the power. Subsection (5) provides that, aside from those arising from subsection (1) in respect of the power of entry, there is no other entitlement to compensation in respect of the exercise of the rental auction process as defined by the powers in part 8. I commend the clause to the Committee.

Let me move on to clause 176. There is certain legislation that applies to premises that are let. In order potentially to reduce cost burdens on landlords as an effect of high street rental auctions, clause 176 provides a power to disapply or modify relevant legislation to avoid unfairness on landlords. An example is the Energy Performance of Buildings (England and Wales) Regulations 2012, which apply minimum energy performance requirements. Compliance with those regulations may require works to be carried out to improve the energy performance of premises before they can be marketed and let. That work would fall on the landlord and may, in some cases, impose a significant burden. The Government have agreed that, due to the temporary and select nature of high street rental auctions, only very few properties will be affected, and we have agreed a review point after five years to assess the impact of the disapplication.

Clause 177 supplements the main clause in part 8 by giving definitions and clarifications of various terms used throughout the part. In particular, subsection (3) clarifies that the high street rental auction powers can be used in relation to premises that are the whole or part of the building, designed or adapted to be used as such, but, also, part of the building that

“could with reasonable adaptation be so used.”

[Rachael Maskell]

If premises were to be wholly let, but let in separate lots, how would that be covered by those clauses? It seems that the Minister is talking about, for example, half a building being let. However, if we are talking about half a building to be used in 10 separate sections, how would the legislation cover that scenario?

[Dehenna Davison]

I will write to the hon. Member on that specific scenario and provide additional clarity. The definition of short-term tenancy is also found here, which limits the term of tenancies granted under high street rental auction powers between one and five years. It also includes setting out what is meant by local authority. They are district councils in England, and county councils where there are no district councils, London borough councils, the common council of the City of London and the councils of the Isle of Skye. The clauses underpin the workings of this part of the Bill, and I urge the Committee to support them.

On new clause 55, I am grateful to hon. Members for seeking to ensure that local authorities have the resources necessary to auction vacant high street premises. I agree that is incredibly important. I want to reassure hon. Members that we intend to work with local authorities to produce detailed guidance to help them through the auction process, minimising burdens wherever possible. The provision would permit local authorities to charge landlords for costs associated with the high street rental auction process. The details of the rental auction process, including how we will distribute the costs of the process, will be set out in regulations following consultation with local authorities, landlords and tenants. I do not believe publishing a report within three months of the Act being in force, when local authorities may only just be starting to engage with the process, will benefit the aims of the Bill.

To go back to the point about premises being partially or fully let, as raised by the hon. Member for York Central, we will consult on a standardised lease that will deal with sub-lettings. There will be a consultation on that point to ensure that we get the policy right.

[Rachael Maskell]

I am grateful to the Minister for raising that, but I wonder how will relate to the legislation. Obviously, this is the authoritative source. While the Minister may be consulting, is she saying that there will be greater clarity brought within regulations? How will that come forth? I think it will be of real interest across the country. It is the very scenario that the clauses are trying to address. Can the Minister bring more clarity?

[Dehenna Davison]

Absolutely. I go back to my earlier point; we all see those larger units that need to be let out, and we know that smaller businesses or community groups would be able to benefit from those smaller spaces. We intend to set this out later in regulations once we have consulted again to ensure that we get this absolutely right. It is a novel policy, so it will take some tweaking. We want to get it right to ensure that it works and fulfils the ultimate aim of getting our vacant high street premises filled.

[Alex Norris]

I shall speak to new clause 55. In an earlier answer, the Minister made the case for this measure because she characterised the new process as a strain—that is the word she used—on local authorities, and that is true. It is a new burden for which local authorities currently are not and will need to be funded for. The impact on local government funding over the past decade or more has been well stated, not least in this Committee. Our local councils have been hammered. The Government’s best record on localism is localising blame by cutting budgets and shifting difficult decisions. That seems to be the phase we are—bewilderingly—entering into again, and I dare say it will happen again.

Local authorities are incredibly hard-pressed. Unless there is proper support, that will be a limiting factor on the success of the process, because many local authorities will be so hard-pressed that they will say, “We just can’t get to that.” The Minister has already resisted community rights to initiate the process, and I fear that will act as a handbrake on it. I strongly argue—I feel certain in my case—that the Minister could help us and give us some comfort on this point. I have managed to go all day—a new record—without mentioning the publication of the impact assessment for the Bill. We are trying this with Whip No. 3, and Ministers 9 and 10. We feel such a level of disregard and discourtesy because the Government will not produce an impact assessment. We know it exists. The Regulatory Policy Committee, on the Government’s website on 19 July, said that the document exists.

The Minister is new to her role, but I know she is a plain speaker. I ask her please to release the impact assessment. If there is concern, as I think there might be on the Government Benches, that it will be writ large to the public that perhaps the provisions on levelling up will not make much of a difference, I gently say: the public already know. In the next stage of the Bill we will deal with hugely important decisions relating to planning, and we have no idea what the Government think the impact of those will be. That is no way to run a country. The Minister is not minded and I will not push the matter to a Division, but at some point that question needs to be addressed. I beg the Minister to do that at the earliest possible opportunity.

[Dehenna Davison]

I take issue with one thing that the shadow Minister said—we have done well today; we have got through almost two full sittings—about localism. I do not think that is to do with shifting blame. It is about empowering local areas. That is why we are running a very ambitious devolution agenda to make sure local areas have the powers and resources they need to succeed. We have seen fantastic examples in Tees Valley, Greater Manchester and the West Midlands. The powers really come into their own, and show what devolution and localism can do for local areas and the people living there. I had to get that on the record. We needed a point of proper disagreement today, and we have managed to find one.

I will take away the point made by the hon. Member for Nottingham North on the impact assessment and come back to him on it as a matter of urgency.

Question put and agreed to.

Clause 175 accordingly ordered to stand part of the Bill.

Clauses 176 and 177 ordered to stand part of the Bill.

Clause 178

Requirements to provide information about ownership and control

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

[The Chair]

With this it will be convenient to discuss clauses 179 to 183 stand part.

[Dehenna Davison]

Part 9 of the Bill will greatly enhance our understanding of who owns or controls land and property. To assist the economy to grow, the Government need to break down any barriers and find key tools that ensure our property market is fair, open, competitive and resilient. One big barrier at the moment is information asymmetries. The land market in England and Wales currently lacks full transparency, particularly when land control arrangements are used—opaque arrangements short of ownerships such as options and conditional contracts.

The Government are determined, for the benefit of us all, to shine a light on complex arrangements used to control land and property. Clause 178 allows the Secretary of State to expand the collection of information about legal and beneficial ownership of land and property in England and Wales. We intend to use the power to dig deep into opaque ownership, and to control structures into narrow use cases.

First, the power will ensure that landlords responsible for the cost of remediating unsafe buildings under the Building Safety Act 2022 do not avoid their liabilities. Some are seeking to avoid their remediation responsibilities and frustrate the Act through the use of obscure structures. A targeted power will help to cut through that, and will allow us to ensure that works are carried out swiftly, so that we avoid continued costs for leaseholders and calls on the Government’s legal budget. Secondly, the power will allow the intelligence and security agencies to identify opportunities for hostile actors to misuse properties in the vicinity of sensitive sites and put national security at risk.

Clause 179 further expands the Secretary of State’s power to collect information on certain specified types of arrangements used to control land. The powers will allow us, for the first time, to collect information on arrangements used by developers and others to control land. I would like to share some facts and statistics about the extent of land control arrangements, and the impacts that the practice has on the housing market, but I cannot, because Ministers and the public are blindfolded on that point. We have no accurate data on the area of land that is subject to such controls, although we suspect that it is substantial. That means that it is hard for local authorities, communities and businesses to identify who controls developable sites. In many areas, that hampers good place-making and slows down development of new areas for people to live in and thrive in.

Collecting and publishing information about land control arrangements will give communities and local authorities a better understanding of who controls land in their area, and addresses those barriers. It will also provide Government with additional information that will allow them to understand who exercises control over land and property, even where that person is not the legal owner. It will provide the basis for assessing that hidden market and producing evidence-based policy.

To implement these powers effectively, we must retain the flexibility to respond swiftly to attempts to avoid or evade this legislation, and ensure that we have all the information we need to unpick the complex and opaque structures used by some to hide their ownership or control. Clause 180 specifies the key information that must be set out in statutory instruments before the powers under the previous two clauses can be used. Parliament will have the opportunity to debate and approve all regulations made under this part of the Bill before they come into force, and all draft instruments will be laid before the House under the affirmative procedure.

Clause 181 allows for the retention, sharing within Government and publication of information collected under clauses 178 and 179. In her Second Reading speech, the shadow Secretary of State, the hon. Member for Wigan (Lisa Nandy), expressed concerns that we were seeking to withhold information on arrangements used by developers to control land. I am pleased to reassure her, and members of the Committee, that we will publish such data as machine-readable open data, in line with our commitments, set out in the 2017 housing White Paper, to improve the transparency of those arrangements and—our key motivations behind the measure—to make the land market more transparent and competitive.

Bearing in mind privacy and security considerations, it is the Government’s intention that other types of information collected—but not published—will be shared with and used by Government bodies to carry out their functions; for example, they could be used for the enhancement of national security and the implementation of the Building Safety Act 2022.

Clause 181 allows for the payment of fees to cover the costs of collecting that information. As our proposals are designed to work with the grain of existing processes, we expect that any fees, if charged at all, would be modest. To be clear, regulations creating any such fee must be made under the affirmative procedure, so Parliament would have to approve them first.

Clause 182 allows the creation of criminal offences by regulation, so that penalties could be imposed on those who failed to comply with requirements to provide information, or who provided false or misleading information. In the overwhelming majority of cases, we expect that people will comply, but the steps that we are taking through this legislation to increase transparency about the ownership and control of property will be disruptive to dishonest actors, or those seeking to conceal their ownership or control of land and property. The stringent transparency measures are, in part, designed to deter nefarious activity or the avoidance of other initiatives aimed at increasing transparency. It would be naive to assume that there are not those who will try very hard to avoid their obligations. That is why that power is so important. The final clause in this part, clause 183, is a technical clause that sets out key definitions. I hope that is non-contentious.

In summary, together, these clauses will provide crucial tools to ensure that our property market is fair, transparent, competitive and resilient. I commend them to the Committee.

[Matthew Pennycook (Greenwich and Woolwich) (Lab)]

Part 9 is one of the less remarked-on parts of the Bill, but it contains important measures. As the Minister outlined, it provides for enabling powers that require the disclosure of information relating to the ownership and control of land in England and Wales, including transactional information.

Labour fully supports the goal of increasing transparency and accountability in respect of the ownership and control of land that could be used for development, as well as transactional information relating to instruments, contracts and other arrangements. We agree with the Government that reform in this area has the potential to help expose anti-competitive behaviour by developers, tackle strategic land banking, aid smaller-sized enterprises to acquire land for development, facilitate more effective land assembly by local authorities and others, and help communities to better understand the likely path of development in their area. As the Minister rightly said, reform will also help to ensure that where buildings are defective in terms of building safety and require remediation, those works are undertaken as swiftly as possible.

--- Later in debate ---

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

It is a pleasure to serve under your watchful gaze, Mr Hollobone. I do not want to add much, and I will not repeat what was said by the Minister and the shadow spokesperson, the hon. Member for Greenwich and Woolwich. This is an important part of the Bill. We are talking about disclosure relating to those who would seek to keep their ownership of land out of the public eye, and therefore away from the interference of local authorities and others. That is crucial, and this is an important part of the legislation. I am glad that the Government are pursuing the issue.

I echo the questions levelled by the hon. Member for Greenwich and Woolwich, but I also have a question. We are talking about the disclosure of information where somebody, at least, knows who owns the land. However, clarity of ownership is equally important when nobody knows who owns certain land. In communities such as mine—more than many others, I imagine—which are more rural, or semi-rural, and were first developed long ago—some areas are medieval—there are significant chunks of land that are considered to be potentially common spaces. Nobody knows who owns them. Generally speaking, the desire is not to develop them, but to enhance them as public spaces—to make use of them as parkland, children’s play areas and the like. As the Government explore this part of the Bill, it would be useful if they thought about the extent to which they are seeking clarity of ownership, or the extent to which who owns what can be adjudicated. To use a medieval term, could wastes of the parish be declared where ownership is unclear but the use of a piece of land is potentially in the hands of the local authority or local parish?

That could add real value—probably not in the development of commercial or residential property, but in terms of public amenity. In most parishes in my community, and in Cumbria as a whole, there will be at least one space that falls into that category. The issue is not just disclosure when someone is nefariously keeping the knowledge to themselves; it is clarity where there is none.

[Dehenna Davison]

I thank the hon. Members for Greenwich and Woolwich, and for Westmorland and Lonsdale, for their broad support for this package of measures. I will do what I can to reassure them on the points that they raise, but I hope that they appreciate that we will follow up on some of them in writing. I am relatively new in post, and still getting on top of the detail. I feel as if I am doing okay, but on certain points I do not want to mislead the Committee, so I will write to ensure that I hit all the points raised.

I referenced the publication of data and its accessibility by the public. The data that is made available through machine-readable open data will be accessible to the public, but further gathered data will be retained—for instance, for national security purposes—and held by Government, but will not be publicly available.

On exemptions for information, I will write to the hon. Member for Greenwich and Woolwich to clarify that point further. We aim to make the land market as transparent as possible, and as much data available to the public as possible, while ensuring that the privacy of personal data is absolutely protected. That is a very fine balance, but I hope that hon. Members appreciate that the intent is to make a more open, competitive and transparent land market, which will benefit all of us, and all parts of the UK.

Question put and agreed to.

Clause 178 accordingly ordered to stand part of the Bill.

Clauses 179 to 183 ordered to stand part of the Bill.

Ordered, That further consideration be now adjourned. —(Nigel Huddleston.)

Levelling-up and Regeneration Bill (Twenty Fourth sitting)

Dehenna Davison Excerpts

Committee stage
Tuesday 18th October 2022 Public Bill Committees

[The Chair]

I have a few preliminary reminders that Mr Speaker has asked me to read out for the Committee. Please switch electronic devices to silent. No food or drinks are permitted during sittings of this Committee, except for the water provided. Hansard colleagues would be grateful if Members could email their speaking notes to [e-mail].

Clause 184

Pavement licences

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

[The Parliamentary Under-Secretary of State for Levelling Up, Housing and Communities (Dehenna Davison)]

It is a pleasure, as ever, to serve under your chairmanship, Mr Hollobone. The temporary streamlined route for pavement licences implemented in 2020 has been successful in supporting the expansion of outdoor dining during the covid-19 pandemic and the economic recovery. To continue supporting the hospitality sector, and to encourage better use of our high streets for our communities, we are making that measure permanent.

Clause 184 inserts a new schedule that amends the Business and Planning Act 2020, making the measure permanent subject to the amendments set out within the schedule. The clause is necessary to ensure that businesses, communities and local authorities have a sustainable process going forward, which balances the interests of all and enables better use of outdoor spaces. I commend the clause to the Committee.

Question put and agreed to.

Clause 184 accordingly ordered to stand part of the Bill.

Schedule 17

Pavement licences

[Alex Norris (Nottingham North) (Lab/Co-op)]

I beg to move amendment 199, in schedule 17, page 321, line 27, at end insert—

“(A1) In section 1 of the 2020 Act (Pavement licences), in subsection (5)(b) at end insert ‘but includes any part of a vehicular highway which is adjacent to a highway to which part 7A applies.’.”

This amendment would enable the pavement licence to include part of the carriageway, where the carriageway were adjacent to, for example, an eligible pavement. This would enable a licensing authority to grant licences which occupy part of the highway shared between space for pedestrians and vehicles.

It is a pleasure to resume debate with you in the Chair, Mr Hollobone. We support the principle of pavement licences, along the lines of the Minister’s introduction, but we have tabled a few amendments that would enhance them. We are interested in getting some views on the amendments, to ensure that the scheme works as well as it can, taking into consideration concerns about its implementation, whether of road users, walkers, businesses or disabled people. We need to ensure that all voices are heard, and the Bill provides a good moment to do so. As the Minister said, this was a very challenging time for business, but having gone through a dreadful couple of years of collective sacrifice we should seek to grab whatever good we can get from it.

One of the issues, with the benefit of hindsight, with the Business and Planning Act 2020, which legislated for pavement licences, is that a licensed area may take up part of the pavement but not part of the carriageway unless vehicles are already restricted or excluded from it. The existing provisions therefore protect vehicular space but reduce pedestrian space, which is contrary to the aims of “Gear Change”, the vision of the Department for Transport to make England a great walking and cycling nation. If it is right to license extra space for use for commerce, I do not think that we should put a blanket limitation on the nature of the space available, and not include highways when local space could sensibly accommodate it. Again, it would be a matter for local discretion whether it was reasonable to encroach on the space used primarily by motor vehicles, not just by pedestrians.

The amendment would allow a pavement licence to use part of the carriageway adjacent to a pavement. Local authorities would then be able to decide where it was appropriate to allow use of the carriageway. We would expect them to refuse the use of busy roads, but perhaps to license space in other roads and to use road furniture creatively, just as a build-out can accommodate a bus stop, to ensure that the space is still available in its usage. The amendment would empower local authorities, which know best in this regard, to make the decision, thereby giving a bit of flexibility. I am interested in the Minister’s thoughts.

[Dehenna Davison]

The Government are incredibly supportive of provisions making it as easy as possible for businesses and authorities to facilitate outdoor eating and drinking through the use of the streamlined pavement licence process. I am grateful for the shadow Minister’s broad support for this measure.

There are already a number of ways in which a local authority can consider the pedestrianisation of a street—for example, through traffic regulation orders under the Road Traffic Regulation Act 1984 and through a pedestrian planning order under section 249 of the Town and Country Planning Act 1990. That includes facilitating the placement of furniture on the highway for al fresco dining. The regimes already in place to consider pedestrianisation include important processes to allow the consideration of any issues, including whether vehicular access is required at any time of the day. Pavement licences can then be granted for highways that have been considered under those processes. We have seen the success of that in practice across the country, including in Soho in London and in the Northern Quarter in Manchester, so I kindly ask the shadow Minister to withdraw his amendment.

[Alex Norris]

I am grateful for the Minister’s answer. I felt that there was a contradiction, however, because she started by talking about a desire to streamline the process, but it was explained essentially as a double process. Not only will there be a pavement licence process, but the local authority will then have to do the other process that she detailed in order to change the use of the space. I am not sure that that is streamlined. Nevertheless, the facility is there to do it and I think that I have made my point, so I will not labour the argument any further. I beg to ask leave to withdraw the amendment.

Amendment, by leave, withdrawn.

--- Later in debate ---

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

It is a continuing pleasure to serve under your guidance this morning, Mr Hollobone.

The amendment moved by the official Opposition gives us something to consider. For someone who represents an area such as Cumbria, where it is always sunny and al fresco dining can therefore happen at any time throughout the year, it is hugely significant. One of the learnings in the development of the pandemic that could have a positive ongoing legacy is the move towards dining and drinking outside, and making better use of the public realm. That is a positive thing.

Let us remember that pubs in particular have never been under more pressure than they are now. We lose many every week, with people losing their livelihood and communities the thing that holds them together. It is deeply troubling to see that happen. We should allow smaller pubs especially to gain the full benefit of anything that they can from the provisions allowing use of the pavement and parts of the highway to expand capacity and therefore increase profit.

I agree, however, that with larger employers and businesses we absolutely need to ensure shared benefit from the development for two reasons. First, we are giving local authorities more responsibilities. Planning departments—we have discussed this throughout the Bill—have an enormous role to play in ensuring that communities have genuine power. If we are devolving power to communities, we have to allow planning departments that work on behalf of those communities the resources—the scope—to be able to enforce their rules. This is an additional responsibility, so we should enable additional finance to go to the planning authorities to make sure that they can uphold the rules, protect the community and ensure that the costs to the local authority, the community and the council tax payer for highways, refuse collection and other things are borne jointly.

Secondly, many people will observe that throughout there has been a disconnect between the interests of the local authority and the business community. The proposed measure would integrate them—the fact that there is joint benefit shows that it is in the interests of the council tax payer and the business rate payer to do the same thing. Organised synergy is almost a consequence of the two amendments, which is why they are important. I hope that the Government will take them seriously.

[Dehenna Davison]

The thing that is most wonderful about today is that only seven minutes into the Committee’s sitting, we have found some cross-party agreement, which is on the quality and value of a good pub garden. I hope that at some point we can share a pint in one, when the Bill Committee is over.

Clearly, in my last few trips, I have been in Cumbria on those incredibly rare rainy days, but the hon. Member for Westmorland and Lonsdale made a good point that pub and hospitality businesses are under pressure. According to our most recent stats, 73% of hospitality firms have outstanding debt as a result of the pandemic, so at this point we really do not want to put additional undue pressure on businesses.

In developing the proposals to make the streamlined pavement licensing process permanent, we have worked closely with local authorities, business, leaders of the hospitality sector and the community. That is why we are increasing the fee cap from £100. We will take detailed analysis of the actual cost to create a sustainable process, which will cover the cost to local authorities of processing, monitoring and enforcing the powers, while remaining affordable and consistent for businesses around the country. Businesses have seen inflated fees reaching thousands of pounds per application under the previous process.

Local authorities maintain flexibility to set fees at any level under the fee cap, to respond to local circumstances. For example, we have seen some areas make licences completely free in order to support their local high street. At a time of rising costs, we are not seeking to impose additional charges on business, in particular given that the hospitality industry was one of the hardest hit by the pandemic. On that basis, I ask the hon. Member for Nottingham North to withdraw his amendment.

[Alex Norris]

I am grateful for the contribution of the hon. Member for Westmorland and Lonsdale. His point about joint benefit is a good way to characterise this—we do not envisage a situation in which business and local authorities scrap it out, but take a sharing approach, with the benefit going to local rate payers as well.

I am also grateful for the Minister’s response. She addressed well the point on cost, and we would not want local authorities and therefore rate payers to be out of pocket for the processes, so there should be cost recovery. However, I do not think she has addressed the point on the enhanced value through use of a public asset. As drafted, the amendment is not quite ready for inclusion in the Bill, but I hope that the Minister will reflect further on the point that it makes. We will certainly return to it in due course, but for the moment I beg to ask leave to withdraw the amendment.

Amendment, by leave, withdrawn.

--- Later in debate ---

[Alex Norris]

Under the current provisions of the 2020 Act, the application and consultation process for a pavement licence do not adequately protect the public interest, particularly with regard to having suitable time to engage in a consultation. As it stands, the process is such that the applicant for the licence must immediately display a notice on their premises. The date of the application is the date on which it is sent to the local authority and that display is made. The local authority must then publicise the application for public comment. The public consultation period lasts seven days, starting the day after the application has been made. The Bill amends that to 14 days—that is welcome—but that is the sole change to the process. We think the process could be further improved and my amendments seek to do that.

Amendment 200 delays the date on which the application is deemed to have been made until the local authority issues a receipt. That delays the start of the clock on the public consultation period until the local authority has been able to act and do something about it. Amendment 201 builds on the increase to 14 days and instead increases the period to 28 days, therefore protecting the public with such a period of engagement. As the 2020 Act currently applies, if the local authority fails to publicise the application until a week after receipt, the public have no time to respond. That is assuming that they have not seen the site notice, and we know there is a challenge there. That cannot be right or fair for the public, and is probably reflected in the decision to move to 14 days. However, we still think that is not enough time, especially if we consider that we are often talking about the summertime. We know local authorities already have limited resources. If the appropriate officer is away or unavailable, there might be a delay to that process, when the clock is running down and the public do not know that.

That is worthy of consideration in and of itself, to ensure that the right balance is struck regarding the public interest. I am also interested in the Minister’s views on the following matter. In the 2020 Act, section 3(6) says that there may be circumstances in which the granting of a licence would have unacceptable effects on the use of a highway. That makes sense because, otherwise, why have a process? There are circumstances where the answer might be no. However, at the moment, if the local authority does not act quickly enough, the licence is granted notwithstanding those effects. There is a contradiction there. Can the Minister say whether the Government wish to draw the line at 14 days? Is it clear that there could not be a situation where what ought to be a rejected grant could, through delay, be granted anyway?

[Dehenna Davison]

I thank the shadow Minister for his clarity on the purpose of his amendments. The pavement licence process that we are seeking to make permanent has been successful over the past few years because it provides a simpler and more streamlined process to gain the licence. We feel that the amendments would place unnecessary new administrative processes on local authorities by requiring a receipt to be sent to all applicants. They also have the potential to create a delay in the process, meaning that licences could take longer to be determined should receipts not be processed within reasonable timescales. We are, however, seeking to double the consultation and determination periods, compared with the temporary process, to ensure that communities have sufficient opportunities to comment on applications.

We have worked closely with stakeholders, including groups representing disabled people, local community groups, businesses and local authorities, in considering the consultation period when making the streamlined pavement licence process permanent. In working with those groups, we have sought to achieve a balance between a quick and streamlined process and ensuring that process is sustainable for the long term and gives communities an opportunity to comment on applications. That is why we are setting the consultation period at 14 days—double that of the temporary process. We feel that the amendments would create a slower process than that which it replaces, adding unnecessary administrative burdens for local authorities.

The shadow Minister is correct that if the local authority does not decide within the 28 days, the licence will be deemed granted, but local authorities still hold control, as they are able to publish conditions in advance that will automatically apply to any deemed licence. That provides an additional layer of protection, so I kindly ask him to withdraw the amendment.

--- Later in debate ---

[Alex Norris]

I beg to move amendment 203, in schedule 17, page 322, line 31, leave out paragraph 7 and insert—

“7 (1) Section 3 of the 2020 Act (determination) is amended as follows.

(2) After subsection (8) insert—

‘(8A) A local authority, in deciding whether to grant a pavement licence under subsection (3), shall have regard to the desirability of maintaining the free flow of pedestrians and other road users along the highway, and the avoidance of inconvenience to such persons.’.”

This amendment would confer discretion on a local authority to have regard to the needs of road users in deciding whether to grant a pavement licence.

As I said in the previous debate, under the 2020 Act the local authority can refuse to grant licences that prevent traffic from passing along the highway or that inhibit the passage of, say, mobility scooters. However, the Act is not clear—I want to test the Minister’s views on this—about whether a local authority can refuse a licence that inhibits or unduly influences the free flow of people or their enjoyment of the public amenity. For example, what if an authority believed that the use of the licence would substantially interfere with the free flow of pedestrians or cycles at a peak time or deprive people of the use of street facilities such as benches? If residents living nearby, or in flats above shops, would be disturbed by the use of the licence above and beyond what we would normally expect under the alcohol licensing process, would an authority be able to refuse the licence on that ground alone? The Government’s guidance states that

“1500mm clear space should be regarded as the minimum acceptable distance between the obstacle and the edge of the footway”,

but 1.5 metres is not a particularly generous allowance in a shopping street. Would the Minister be comfortable with a local authority seeking more than that?

The amendment proposes a solution to the examples I have listed. It proposes that an authority should be able to refuse a licence if the use of it would interfere with pedestrian flow—for example, if it would leave the pavement so narrow that pedestrians might feel they had to step into the carriageway to pass each other, which obviously is not very desirable. I am keen to test the Minister’s views on that, and to get on record the level of flexibility that local authorities have to balance the enjoyment of the amenity across various, possibly competing, interests.

[Dehenna Davison]

I thank the shadow Minister for raising an important issue that local authorities must consider when determining applications, which is the continuing flow of pedestrians and other road users on the highway. The Business and Planning Act 2020 already requires that local authorities take that into consideration when determining applications through section 3(6), and it prevents licences from being granted where they would prevent pedestrians or other non-vehicular traffic from entering or passing along the highway or having normal access to premises adjoining the highway.

Ensuring that pavements remain accessible to everyone, including disabled people, is a condition of the temporary pavement licences issued by councils. Where that condition is not met, licences can be revoked. To provide some reassurance, we have worked with the Royal National Institute of Blind People and the Guide Dogs for the Blind Association to refine the guidance to ensure that local authorities consider the needs of people who are blind when setting conditions and making these decisions.

We have carefully considered the issue of minimum distances, which the shadow Minister raised, and we judge that we should leave some room for reasonable local discretion, given the different physical environments involved. However, we have made it clear that 1.5 metres will be the minimum acceptable width in most circumstances. We therefore resist the amendment on the basis that the existing legislative framework already requires local authorities to consider these issues, and they cannot grant a licence if pedestrians are prevented from using the highway as they usually would. I therefore kindly urge the shadow Minister to withdraw his amendment.

[Alex Norris]

I am grateful for that answer. On that basis, I beg to ask leave to withdraw the amendment.

Amendment, by leave, withdrawn.

[Alex Norris]

I beg to move amendment 202, in schedule 17, page 322, line 32, leave out “14” and insert “28”.

This amendment would allow a local authority 28 days to determine the application, instead of 14.

If this feels a bit like a replay of the debate on amendments 200 and 201, I assure colleagues that it is slightly different—they might just have to squint to see that.

At the moment, the Bill retains the stringent regime whereby a local authority must determine an application for a pavement licence within a fixed period. Formerly, that period was seven days; it will now be 14 days. If the local authority fails to do so, the application is deemed to have been granted. Labour wanted to extend the period for consultation purposes, but we have not succeeded. I want to test the point of potentially amending it to give the local authority

“28 days to determine…instead of 14”,

as it says in amendment 202.

We remember well the quick passage of legislation during the early knockings of the pandemic. As the Minister said, the industry was struggling and we needed to support it, and quick action was integral to that. The times for consultation and determination in the 2020 Act reflected that, but now that we do not have such time pressures, it is reasonable to expect a little more time for determination, not least because local authorities are hard-pressed. They will probably have only a single person, not teams of people, working on these applications.

The two-week period would not align with most applications people might make to their local authorities. For example, it would certainly not align with an alcohol licence—ordinarily, that would not be determined in 14 days, and it definitely would not be deemed to be granted if the clock had run out. Labour feels that having a little more time—28 days, rather than that two-week period—would give space for creative solutions in line with those the Minister set out in the previous debate and would ensure a fair balance between the business, the public and the local authority.

[Dehenna Davison]

We have worked closely with stakeholders, including groups representing disabled people, local community groups, businesses and local authorities, in considering the determination period when making the streamlined pavement licence process permanent. In working with those groups, we have sought to achieve a balance between a quick and streamlined process and ensuring that the process is sustainable for the long term and gives local authorities sufficient time to consider any issues and determine the application. That is why we are setting the determination period at 14 days—double that of the temporary process.

I refer the shadow Minister to comments I made on the previous amendment. Local authorities can publish conditions in advance, which will automatically apply to any deemed licence. However, even if a licence is granted, local communities will still be able to contact local authorities about any concerns they have, and authorities will have enforcement powers to tackle any issues raised. We deem that the period is lengthy enough, but local authorities will of course continue to have those enforcement powers should any issues arise. We fear that the amendment would create a slower process than that which it replaces. I therefore urge the shadow Minister to withdraw it.

[Alex Norris]

It absolutely would create a slower process, but that was the intention. I will not press it to a Division, but I hope the Minister will reflect on the fact that it seems considerably out of kilter with other decisions of this nature that are made for licences and permits. I cannot think of another that would be as quick as 14 days, with a deemed acceptance if the clock runs out. In those others cases—say, for a parking permit or an alcohol licence—there is good reason to have a little time for reflection, and I think those reasons probably apply here.

This is perhaps not a point to labour any further today, but I hope the Minister will keep thinking about it. We could be in danger of being just a little too streamlined. I beg to ask leave to withdraw the amendment.

Amendment, by leave, withdrawn.

--- Later in debate ---

[Alex Norris]

I beg to move amendment 206, in schedule 17, page 323, line 5, at end insert—

“(8A) (1) Section 5 of the 2020 Act (conditions), is amended as follows.

(2) After subsection (7) insert—

‘(7A) The conditions to which a licence granted by a local authority may be subject include—

(a) a condition that any furniture which may be placed on the highway under the licence must be removed from the highway at times when the premises are not open to the public;

(b) a condition that, where the furniture to be put on the relevant highway consists of seating for use by persons for the purpose of consuming food or drink, the licence-holder must ensure that smoking or vaping does not affect others.’.

(3) After subsection (8) insert—

‘(9) But regulations under subsection (8) must not prevent a local authority imposing a condition, nor affect a condition imposed by a local authority for the purposes of subsection (7A)(b).’”

This amendment would allow a local authority to require that furniture is removed from the highway when it is not in use, as well as imposing a condition to require the licensee to prevent smoke-drift affecting those in the vicinity.

Me again. Sections 5(4) to (6) of the 2020 Act cover the imposition in a licence of a “no-obstruction condition” and a “smoke-free seating condition”. These conditions require the licensee to avoid the effects specified in section 3(6), including

“preventing traffic, other than vehicular traffic, from…passing along the relevant highway”

and to make reasonable provision for seating where no smoking is permitted. The Bill does not affect these requirements, which the Opposition support. However, we might want to tighten up these provisions to ensure they have the desired effect.

Local authorities are already required to impose a smoke-free seating condition to ensure that reasonable provision is made to accommodate non-smokers. A smoke-free seating condition, however, does not give the public, people using the highway or neighbouring premises, or people living above the premises explicit protection to ensure that their enjoyment of the amenity is not affected by people smoking. Smokers are more likely to go to outdoor tables because they cannot smoke inside, and that can throw down a gauntlet, in that the public have to run through a cloud of smoke.

Amendment 206 would expressly enable local authorities not just to lay down conditions about smoke-free seating, but to require in those conditions that the licensed area should not affect passers-by, neighbouring shops or homes. If, for example, there are flats above a café, a condition could require steps to avoid the occupiers being affected by smoke drift. We are seeking a balance, so that people using a highway can do so peacefully and with the full enjoyment of the amenity. I hope the Minister will say that local authorities can already do that, but if that is not the case and if this amendment is not the right answer—though I think the principle is likely one that is shared—how do local authorities ensure that balance for people?

[Dehenna Davison]

I thank the shadow Minister for his dedication on this point. Pavement licences may be granted subject to any condition that the local authority considers reasonable, as set out in section 5(1) of the Business and Planning Act 2020. We are aware anecdotally of conditions that would, for instance, require licensed furniture to be removed when not in use and that go further than our national smoke-free condition.

We are all about empowering local areas and relying on local leadership. That is why we consider that local authorities have the local knowledge and appropriate powers to impose such conditions, should they consider that necessary. A number of local authorities have already implemented local smoking ban conditions for outdoor seating, including the City of Manchester, Newcastle and North Tyneside, so it is clear that local conditions can be implemented where it is appropriate and desired. On that basis, we do not think it is necessary or appropriate to create national conditions, and there are circumstances where it may not be necessary or appropriate on a local level. I would therefore ask the shadow Minister to withdraw his amendment.

[Alex Norris]

I am grateful for that very clear answer. There are areas where this is still a point of debate. I think the Minister’s answer alone will resolve that. I beg to ask leave to withdraw the amendment.

Amendment, by leave, withdrawn.

--- Later in debate ---

I am pleased to have support on this issue from the Local Government Association, the Institute of Licensing and the National Association of Licensing and Enforcement Officers. They support these amendments, so I think we are in the right place regarding practicalities. I hope the Government, either today or at a later stage, will also back this approach, because it would give just a little more flexibility.

[Dehenna Davison]

The Government recognise the importance of having a system that can be properly enforced to deter and tackle the unauthorised placement of furniture. Powers introduced in the Bill enable local authorities to serve notice requiring that businesses remove furniture that has been placed on the pavement without a licence. If that notice is contravened, local authorities can remove furniture themselves or issue an instruction to have it removed, and can then recover the costs of that and go on to sell the furniture and retain the profits.

The Government’s position is that the introduction of the powers proposed will lead to appropriate protection of our communities by giving local authorities powers that work as a deterrent and to directly tackle issues where notices are ignored, ensuring that the licensing system operates appropriately. Ultimately, local authorities will still have the power to revoke a licence.

It is also important to note that highways authorities already have powers in the Highways Act 1980 to tackle obstructions on the highway. That includes section 148, which creates an offence of depositing, without lawful authority or excuse, things that cause interruption to users of the highway.

The shadow Minister mentioned some of the groups that he has worked with, and I would be delighted to sit down with him to discuss their response. However, at this stage, I ask him to withdraw the amendment.

[Alex Norris]

I am grateful for that. It is of note that those who know of what they speak in this area, particularly on a day-to-day basis, feel the way they do. However, the Minister’s offer is a good one and I will take her up on it. I beg to ask leave to withdraw the amendment.

Amendment, by leave, withdrawn.

Schedule 17 agreed to.

Clause 185

Historic environment records

--- Later in debate ---

[Lee Rowley]

I am grateful to the hon. Member for his questions, which are entirely reasonable and on which I hope to provide some assurance. First, he asked why the Government are asking for this power, given that the Bichard review has outlined a process to resolve the current situation. The view of the Government and of previous Ministers who instigated this was that a process was likely to be under way, but equally there is value in the Secretary of State having this power, should it ever be necessary in the future, which obviously we hope it would not, and we have indicated that it would be used extremely sparingly. The principle of having the ability to instigate a review is one that the Government believe is reasonable and proportionate.

Secondly, the hon. Gentleman asked how the terms of reference would differ from an independent review. That question would have to be asked in individual circumstances, so I hope he will accept that it is a difficult one to answer. However, I understand the sentiments behind the point he makes.

Finally, the hon. Gentleman asked whether the Government have given serious consideration to the impact of this approach on the ability of RICS and other bodies to operate. I am happy to confirm that the Government and I will engage in discussion with RICS about this in the coming weeks before further stages of the Bill, and I will be keen to discuss with RICS all elements of the Bill, to understand its concerns and to see what reassurances I can provide.

Question put and agreed to.

Clause 186 accordingly ordered to stand part of the Bill.

Clause 187

Vagrancy and begging

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

[Dehenna Davison]

We recognise that this is an issue on which there is a great deal of passion and heart. The Government agreed that the Vagrancy Act 1824 was antiquated and not fit for purpose. That is why we committed to repeal the Act once an appropriate and modern replacement was in place. I pay tribute to those who have campaigned so passionately on this issue, such as my hon. Friend the Member for Cities of London and Westminster (Nickie Aiken).

It is important that we balance our role in providing essential support for the most vulnerable with ensuring that the police and other agencies can protect communities, while embedding rehabilitation and support at the heart of our approach. We launched a public consultation to seek views and inform any replacement for the Vagrancy Act. This placeholder clause will allow Government to introduce appropriate legislation once the results of the public consultation have been analysed.

In the meantime, the Government have made the unprecedented commitment to end rough sleeping within this Parliament. We remain steadfastly committed to that goal. By autumn last year, rough sleeping levels were at an eight-year low, having reduced by 49% since 2017. In September we published a bold new rough sleeping strategy, backed by £2 billion of public money, which sets out how we will end rough sleeping for good. I commend the clause to the Committee.

--- Later in debate ---

[Rachael Maskell]

I, too, rise in disgust at the piece of legislation before us today, and I urge the Government to think again. It is an insult not only to Parliament, which strongly voted to abolish the Vagrancy Act 1824 just this year, but to those incredibly vulnerable people who find themselves on our streets, for whatever reason. It is not for us to judge them; we should provide support and pathways for people out of that situation.

Yesterday at the Dispatch Box, the new Chancellor announced a new era of compassionate Conservatism. Today, we have this legislation before us, which is anything but. It is about othering people—the most vulnerable people in our society. It is about calling them out, and using despicable language to describe them: “vagabonds” and “rogues”. These people are incredibly troubled. Today, language has moved on. We recognise that people who have serious mental health problems or addictions need support. We recognise people who simply do not have the money to survive in our society. That population is growing. There are three people officially registered as on the streets in York, yet when I went out the other morning, there were 23 people sleeping rough.

This is not just about people who are sleeping rough. Many people who are living in hostel accommodation, sofa surfing, and so on find themselves begging on the street. Many people I talk to—and this is where the Government must engage with the community—simply find applying for social security too complicated. They are fed up of being rejected by the complex process of getting access to the public money to which they are entitled. They therefore turn to begging as a mechanism by which to survive, feed themselves and get through the day or night. Many people have multiple challenges pressing down on them, including financial debt and other things that they owe.

To put into legislation once again, having just repealed them, measures that criminalise people who are trying to find their pathway through life—trying to survive—is an abomination. It is completely unacceptable to criminalise those individuals. This measure is not just about civil penalties; it is about the criminalisation of the most vulnerable people. Any compassionate Government would reach out and recognise their duty, and would recognise their blame and responsibility for allowing people to fall into that state. The language used is horrific. It is a horrific piece of legislation. I urge the Government to U-turn on it, and will praise them for it if they do. It is prejudicial and insulting, and it is certainly not beign done in my name, or in the name of my hon. Friends who are signed up to the amendment, which is significant.

Although the Conservative party is desperately trying to rebrand itself, deep down the roots of prejudice seem to continue to exist. If this Government spent time with those vulnerable people across our society, and understood their pathways and stories, they would not write such appalling pieces of legislation. It is not for any of us to judge those individuals, or to place our prejudices on them. It is for us to provide support and pathways out, so that they have the future that we have been afforded, and the opportunities we have had the privilege of having. We need to enable people to have that fresh start, however many attempts it takes. We need restitution and opportunity, not blame and criminalisation of the most vulnerable people in our communities. It is therefore disgraceful to see this measure before us, and I trust that the Minister will withdraw the clause.

[Dehenna Davison]

The hon. Lady made a very good point when she said that it is for us not to judge, but to provide support and pathways, and the Government are absolutely committed to that. I have already outlined the rough sleeping strategy, which was announced just a few weeks ago.

I want to reassure the Committee that the Government are absolutely committed—we have repeatedly been clear about this—to not criminalising anybody simply for having nowhere to live. The intent of any replacement legislation will not be to criminalise people for being homeless. I want to put that point very firmly on the record.

On our support for rough sleepers, we want to ensure that rough sleeping is ended in a way that is sustainable in the long term. That means preventing people from needing to sleep rough where possible and, where rough sleeping does occur, ensuring that those spells are rare, brief and non-recurring. We recently published our strategy, which is backed by more than £2 billion of funding over the next three years. As part of that, we announced the new £200 million single homelessness accommodation programme, which aims to provide up to 2,400 supported homes for rough sleepers by March 2025, and £500 million to provide 14,000 beds for rough sleepers and 3,000 staff to provide tailored support across England. That support is absolutely crucial in ensuring that those who are homeless can get back on their feet. The support includes helping individuals to find work, manage their finances and access mental and physical health services. We will fully enforce the landmark Homelessness Reduction Act 2017, which we believe is the most ambitious reform to homelessness legislation in decades.

[Mrs Emma Lewell-Buck (South Shields) (Lab)]

The Minister is asking us to have faith that the Government do not want to criminalise rough sleeping, but is asking us to approve a clause that will allow them to do just that. We are not debating what the Government are doing on rough sleeping; we are debating this legislation.

[Dehenna Davison]

That is why I made the point about the consultation we are running. We want to make sure that we get this right, which is why we sought views on this issue in a public consultation that closed in May. Analysis of those responses is ongoing and will form the backbone of our response to any new legislation. The measure is a placeholder until we can bring something forward. I recognise that it is not an ideal situation, but that is where we are.

[Matthew Pennycook]

I want to challenge the Minister on that point. If I heard her correctly, I think she said that the intention behind the clause is not to recriminalise homelessness.

[Dehenna Davison]

Absolutely.

[Matthew Pennycook]

Can she explain why subsection (2) allows regulations to include provision to create criminal offences, in similar ways to sections 3 and 4 of the Vagrancy Act 1824, which the House voted to repeal? It effectively will allow for the recriminalisation of homelessness. I think she is wrong on that point, but if she could provide further clarification, I would appreciate it.

[Dehenna Davison]

As I outlined, this is a placeholder, and we are analysing the consultation responses. The commitment I have given is that no criminalisation will result from the fact that someone is homeless. I want to put that point on the record incredibly strongly.

I cannot pre-empt the outcome of the consultation, but I have spoken to the Minister with responsibility for rough sleeping, who has committed to writing to Committee members to outline the next steps. As I say, this issue does not usually sit within my brief, but we are limited by the number of Ministers we can have in Committee today. Hopefully, that Minister will be able to provide additional reassurance.

[Rachael Maskell]

This measure was not brought forward in the Police, Crime, Sentencing and Courts Bill, so we have had a period in which the Government have not had the opportunity to criminalise people for being homeless or begging on our streets. Nothing has changed since Parliament as a whole gave the Government a clear indication that it wanted to see off a 200-year-old piece of legislation, yet today, Government are trying to resurrect the opportunity to criminalise people.

The Minister says that there is no need for the measure, but it is hardwired into the legislation. It is the text of the statute, not what the Minister says, that decides what the Government have the capacity to do. The clause is completely unnecessary, yet the Government push it before us. Will the Minister explain the context of having such measures written into the Bill? We have not had them for the past six months; indeed, she says, while still analysing her consultation, that we will not need them moving forward. The measure is seen as a draconian move, and should be taken out of law.

[Dehenna Davison]

I genuinely thank the hon. Member for her passion on this issue, which is prevalent in the City of York, and she has campaigned on it well and strongly in recent years. The best thing that I can do is ask the Minister with responsibility for homelessness to write to her directly. Indeed, he has committed to writing to all Committee members to set out the next step. I hope that he can provide some reassurance. However, at this stage, I ask that the clause remain part of the Bill.

Question put and agreed to.

Clause 187 accordingly ordered to stand part of the Bill.

Clause 188

Data protection

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

[The Chair]

With this it will be convenient to discuss clauses 189 to 191 stand part.

Levelling-up and Regeneration Bill (Twenty Fifth sitting)

Dehenna Davison Excerpts

Committee stage
Tuesday 18th October 2022 Public Bill Committees

[The Parliamentary Under-Secretary of State for Levelling Up, Housing and Communities (Dehenna Davison)]

It is a pleasure to serve under your chairmanship, Sir Mark. I am grateful to the hon. Member for South Shields for raising this matter. As MPs for the north-east, we are acutely aware of the value of manufacturing. She referred to her manufacturing powerhouse, which the north-east certainly is. We want it to continue to thrive, but we also want the entire UK to thrive when it comes to manufacturing.

Manufacturing is vital to levelling up as it provides high-skilled and well-paid jobs. It is supported by the Government, including through a new £1.4 billion global Britain investment fund, with grants to encourage internationally mobile companies to invest in the UK’s critical and most innovative industries.

There are already publicly available official statistics covering matters in the new clause, such as the number of manufacturing jobs by region. We are a little concerned that the new clause would require an additional and disproportionate burden on businesses to collect data in a timely manner at a time when they are already facing unprecedented rising costs, which are particularly acute for manufacturing businesses. We therefore feel that the new clause is unnecessary at this stage.

The hon. Member for Westmorland and Lonsdale talked about having real metrics at the heart of levelling up, which the Government are certainly passionate about. We want to be able to measure levelling up to show that we are successfully delivering it. That is why we are already taking steps to improve the quality of the spatial data that we have available.

My Department has established a new spatial data unit to drive forward the data transformation required in central Government. The unit supports the delivery of levelling up by transforming the way the UK Government gather, store and manipulate sub-national data to underpin transparent and open policy making. On that basis, I think we are reaching for the same end here. I reassure the hon. Member for South Shields that the spatial data unit will be pivotal in this matter. The Department for Education is also working to deliver a better understanding of local area skills demand and supply through its unit for future skills.

[Mrs Lewell-Buck]

I referred to the fact that the Government’s technical annex to the White Paper identifies an issue with measuring and understanding pay, jobs, living standards and productivity. If the Government do not want to put an extra burden on businesses, who will they ask to get this data for them? How will they do that?

[Dehenna Davison]

This is a matter for our excellent new spatial data unit, which is doing valiant work. It will really help us to understand the scale of the challenges, as well as the progress that we are making against the levelling-up missions. As a Government, we are determined to level up and make progress against those missions.

We are doing a lot of great work in this area and the spatial data unit really will be revolutionary in how we gather this data. For the reasons I have outlined, I ask the hon. Lady to withdraw her new clause.

--- Later in debate ---

[Ben Bradley (Mansfield) (Con)]

It is a pleasure to serve under your chairmanship, Sir Mark. I want to give the Committee a change of scenery for five minutes, before I let somebody else speak. I will not develop these points; I will just add a thought that the Minister might wish to take away and consider in further conversations.

The Bill will, I hope, create numerous mechanisms and levers to incentivise local areas to bring forward brownfield sites, not least development corporations, combined authorities and the investment zones that have been the subject of much conversation. I should declare an interest, because I am the leader of a local authority and I am involved in a devolution conversation in the east midlands. At a regional level, we have been given funding to bring forward brownfield sites for development, and we are considering how we might use that funding locally to achieve this goal. Perhaps the Minister might consider whether some of the levers, funds and opportunities that my hon. Friend the Member for Buckingham has proposed would sit better at a devolved, local level within one of the mechanisms created by the Bill, rather than in the Bill itself.

[Dehenna Davison]

It is a pleasure to speak to this amendment from my hon. Friend the Member for Buckingham. We have done some great work on it together, and I hope we can continue in that spirit. Members will know that the Government strongly encourage the use of brownfield land over greenfield, and in national policy there is an expectation that local planning policies and decisions will give substantial weight to the value of using suitable brownfield land to meet our communities’ housing needs and other identified needs.

My hon. Friend was right to highlight the cost differential that developers face. We are investing significant funding to support brownfield development, including in some of the schemes that he has mentioned. I will rattle through them one more time for the Committee’s benefit. There is the £550 million brownfield housing fund and the £180 million brownfield land release fund 2, which builds on the success of the £75 million first brownfield land release fund. In addition, later this year we aim to launch the £1.5 billion brownfield, infrastructure and land fund, which will unlock sites around the country.

We are particularly sympathetic to this cause, which is why we are setting out a range of new measures and powers in the Bill to support brownfield development. My hon. Friend the Member for Mansfield is right to talk about local empowerment—something that I know he is a real champion of in his other role, at local government level. We are keen that the Bill in its entirety will empower local leaders to regenerate towns and cities through a range of provisions, including new locally led and locally accountable development corporations, which my hon. Friend mentioned, and support for land assembly and regeneration through enhanced compulsory purchase powers.

My hon. Friend the Member for Buckingham mentioned the infrastructure levy introduced in the Bill. It provides a framework in which, where increases in land value are higher—as is often the case with greenfield development—higher rates can be set. This mechanism would allow differential charging rates to be set by local planning authorities for different types of development, so that more could be levied on greenfield land as compared with brownfield land to incentivise development on that brownfield land.

We will also continue to work on wider planning proposals that will give the public an opportunity to shape our future national planning policy, and in relation to which the Government have committed to consult the public.

On that basis—because we are already taking such strong steps to encourage brownfield development and have a commitment to review national policy—we do not feel that the new clause is necessary, so I kindly ask my hon. Friend to withdraw it today.

[Greg Smith]

I very much welcome the Minister’s commitments. She is absolutely right in outlining the various schemes to support brownfield development. I guess the thought I will leave her with is the reflection that, rightly, there is a lot of carrot in those schemes; where I do not think we have quite enough at the moment is the stick to dissuade people from greenfield development. We need to ensure a proper balance of incentivising, through grant funding or whatever it might be, development on the brownfield sites, and also something to actively dissuade developers from looking at the greenfield sites. If we can carry that conversation on through to Report, I am content to withdraw new clause 23 at this time. I beg to ask leave to withdraw the motion.

Clause, by leave, withdrawn.

New Clause 24

Report on measures to improve the efficiency of the housing market

“(1) The Secretary of State must, within 60 days of the day on which this Act is passed, establish a review of the merits of measures to improve the efficiency of the housing market.

(2) The review must, in particular, consider the impact of—

(a) a stamp duty exemption to encourage elderly homeowners to downsize,

(b) an additional stamp duty surcharge on purchases by person not resident in the UK,

(c) a stamp duty surcharge on second home purchases,

(d) a reduction in the highest rates of stamp duty, and

(e) measures to promote an active market in long-term fixed rate mortgages to encourage lending to first time buyers.

(3) The Secretary of State must lay a report on the findings of this review before Parliament no later than one year after this Act comes into force.”—(Greg Smith.)

This new clause would require the Secretary of State to review the merits of measures to improve the efficiency of the housing market and to report the findings to Parliament.

Brought up, and read the First time.

--- Later in debate ---

[Greg Smith]

New clauses 25 and 26 are quite important to free up for good use properties that may have fallen into disrepair or been unoccupied for a long time. I am sure that we could all name properties in our constituencies that we have canvassed for five elections running but nobody is ever behind the door. We put leaflets through the door, but the post reaches almost as high as the letterbox itself. Those are homes that I hope all Members, of whatever political persuasion, would acknowledge really should not be sat empty, but should have a family or whoever living in them. Of course, the wider public good is also served by not allowing properties to fall into disrepair and become eyesores or perhaps hotspots for disorderly behaviour, as people seek to take them over illegally.

New clause 25 does not contain specific legislative measures to deliver the outcomes we are seeking, but it creates a duty on DLUHC to report on how better to ensure that empty properties that have fallen into disrepair and are perhaps causing other public health hazards can be more easily brought back into the housing supply chain for social rent, for part rent, part buy, for discount market housing, or for whatever it might be.

New clause 26 is about ensuring that the compulsory purchase powers available to local authorities are suitable, if I may put it in those terms, to enable them not just to get those properties back into productive use and put a roof over human beings’ heads, but to ensure that local authorities that often bang their heads against a brick wall when it comes to certain compulsory purchase powers are freed up to make the right decisions for the communities they represent.

[Dehenna Davison]

I completely agree with the sentiment behind these new clauses. We can probably all think of examples in our constituencies of the sorts of vacant properties that my hon. Friend mentioned. Indeed, I was out in Eldon Lane with neighbourhood wardens, local police and local councillors—I think last week or the week before—looking at streets where most of the houses sit empty and can become hotbeds for antisocial behaviour and petty crime, so this is certainly something we want to tackle.

I agree with the benefits of promoting development in areas that are already developed, but I do not think that new clause 25 is necessary. We have already debated the Government’s national planning policy framework, which promotes the development of previously developed land and makes it clear that local plans should also include sufficient provision for affordable housing. I share the interest in novel ways of increasing the supply of affordable housing. The Government’s affordable housing guarantee scheme is a good example of this kind of innovation. The same is true of the proposal in the Bill to secure affordable housing contributions in future through a new streamlined mandatory and locally determined infrastructure levy.

My hon. Friend also made the case for housing associations to purchase homes that are empty or not currently fit for human habitation. I agree that this can play a valuable role in expanding the availability of affordable housing and improving the overall quality of our housing stock. Local authorities and other social housing providers can access funding to acquire empty homes on the market and bring them back into use through programmes such as the affordable homes programme and the rough sleeping accommodation programme.

Briefly, on new clause 26, I strongly share my hon. Friend’s desire to ensure that the compulsory purchase system is fit for purpose and can play its part in delivering our levelling-up agenda. My officials have worked incredibly closely with key stakeholders to review the current system and develop the package of measures in the Bill. We believe that these measures, supplemented by improved and updated guidance, will together ensure that local authorities have the powers they need to bring forward the regeneration of their high streets and town centres, and to deliver much needed housing and infrastructure. We also believe they will deliver a faster and more efficient compulsory purchase system and make compensation simpler and clearer. I have also asked the Law Commission to undertake a review and consolidation of the existing legislation on compulsory purchase and land compensation, which will begin shortly.

On that basis, I hope that my hon. Friend will agree that a statutory review is not necessary and ask him to withdraw the new clause.

[Greg Smith]

On the back of those commitments, I am happy to withdraw the motion.

Clause, by leave, withdrawn.

New Clause 27

Deliberate damage to trees linked to development

“(1) Section 210 of the Town and Country Planning Act 1990 (penalties for non-compliance with tree preservation order) is amended as follows.

(2) After subsection (4) insert—

‘(4AA) Subsection (4AB) applies if—

(a) the court is considering for the purposes of sentencing the seriousness of an offence under this section, and

(b) the offence was committed for purposes connected to planning or development.

(4AB) The court—

(a) must treat the fact mentioned in subsection (1)(b) as an aggravating factor (that is to say, a factor that increases the seriousness of the offence), and

(b) must state in open court that the offence is so aggravated.’”—(Greg Smith.)

This new clause would make damage to trees or woodland in contravention of a tree preservation order an aggravated offence if it was committed for purposes connected to development or planning.

Brought up, and read the First time.

--- Later in debate ---

[Tim Farron]

The two new clauses are about trusting local communities. We are not saying that every meeting must be held virtually, but that local authorities—in this case, planning authorities—should have the power to do so, and for good reason. My preference is for in-person meetings, but for the reasons that have been set out, especially by the hon. Member for Buckingham, local authorities should have that power.

Every part of my patch is parish. There are 67 parishes, and some of them are bigger than most Members’ constituencies and have not very many people living in them. To get from one end of the Lakes parish to the other, people have to pass three or four lakes. We should consider the age profile of some of the members of the parish councils and the distances involved. I said earlier that it rarely rains in the lakes, but occasionally it might. It certainly gets dark at certain times of the year. On a wet November night, holding a meeting on screen rather than physically is probably safer and better for everybody. Let us trust communities to make those choices on the go, and not impose.

The pandemic has been a traumatic and formative experience for us as a culture, as a society and as representatives of the people. We have learned many lessons, and some of them we should carry on with. I was disheartened and disappointed that some members of the Government seemed to be almost determined, as a point of principle, to close down any virtual operation of democracy during the pandemic—never mind at the end of it. It is encouraging to hear a cross-party outbreak of common sense today. It would be great if the Government listened.

[Dehenna Davison]

As a millennial Minister who is used to swiping and not to turning pages, Members might expect me to say that I prefer virtual meetings, but actually I do not. In-person meetings and the social element are important, yet we saw the value of virtual meetings during the pandemic, at the time when we needed them most. Hon. Members will remember the powers granted through the Coronavirus Act 2020, which allowed local authorities flexibility on remote and hybrid meetings, in certain circumstances. They will also know that those regulations expired back in May 2021. Since that date, all council meetings have had to be in person. The new clauses lean into the terms of those previous provisions and seek to replicate them on a permanent basis, but only for planning committees. I heard the points made by my hon. Friend the Member for Mansfield.

Looking beyond the circumstances of the pandemic, the Government considered that there may be benefits to permanent provisions for remote meetings, and that local councils may be keen to have the flexibility to use that provision as they see fit. I have been lobbied by a lot of my local parish councillors on the benefits that remote meetings can bring.

As my hon. Friend the Member for Mansfield highlighted, the Government conducted call for evidence last year to test the views of those who had participated in and experienced councils’ remote meetings to inform our decision on this matter. I thank the shadow Minister, the hon. Member for Greenwich and Woolwich, and the hon. Member for Westmorland and Lonsdale for their points on trust in local governance and local planning, which we all agree is paramount. Increasing participation is only ever a good thing.

The Department has considered the responses to the call for evidence and we have been weighing the benefits, which hon. Members have highlighted, against views that physical attendance remains important to deliver good governance and democratic accountability. I take on board the point made by my hon. Friend the Member for Mansfield about the investment in the technology that a lot of local authorities had made, which must also be taken into account.

I genuinely thank my hon. Friends for tabling the new clause, but we need to first consider the call for evidence. We will issue our response, which will set out the Government’s intentions. I ask for a tiny bit more patience and for the new clause to be withdrawn.

[Greg Smith]

The self-styled millennial Minister makes the commitment. Asking for slightly more time seems reasonable to me. However, if we are to be true to localism, I would double-underline and highlight the need to ensure that local people are able to participate in proceedings. Just as we can still have a witness virtually at a Select Committee in this place, councils should have the discretion to use virtual proceedings, to maximise participation locally. I beg to ask leave to withdraw the motion.

Clause, by leave, withdrawn.

New Clause 29

Local authorities to be able to raise planning fees to cover costs including planners

“(1) Section 303 of the Town and Country Planning Act 1990 (fees for planning applications etc.) is amended as follows.

(2) After subsection (5) insert—

‘(5A) Regulations made by the Secretary of State under this section may provide for local planning authorities to vary fees or charges under this section payable to the local planning authority to cover the reasonable costs of their exercise of planning functions.

(5B) In subsection (5A), “reasonable costs” includes the employment of qualified planners.’”—(Greg Smith.)

This new clause would enable the Government to allow local planning authorities to vary planning fees and charges to cover their costs relating to planning, which could include the employment of qualified planners.

Brought up, and read the First time.

--- Later in debate ---

[Rachael Maskell]

I beg to move, That the clause be read a Second time.

It is a pleasure to move the new clause and to give the hon. Member for Buckingham some respite. The new clause relates to fiscal responsibility in local government. Without proper viability being sought, local authorities can pay millions of pounds on projects and never reap the return. That is why the new clause relates to capital investments and economic appraisals, which should be undertaken and understood, but without a Green Book-style appraisal, local authorities can end up paying and developers and landowners gaining, with ultimately no reward and benefit to the local community. The new clause is designed to ensure that the finances on any project are transparent and for the benefit of local people. It would ensure that there is gain for all and not ultimate loss, not least given that we are talking about the use of public resources. That is why the new clause is important.

The case study to which I want to refer particularly is that of the York Central site. The cost of bringing that site forward is now believed to be £200 million of public funding. As that project moves forward, more and more is being demanded from public sources to fund it, and yet the local authority may never see a return on that investment. City of York’s infrastructure investment was planned to be around £35 million, but it has now been given an estimated debt cost of £57 million based on April interest rates, which will clearly be significantly higher now.

The Department for Levelling Up, Housing and Communities has also put in £77 million and it is believed that more than £50 million will have to come through the Mayor’s budget once it is approved and in place—we are expecting that to be in 2024. In a briefing, councillors were told that the council would need to put in £85 million and debt costs to fill the gap, but we could now be talking about nearer £100 million rather than the £35 million once rejected. As a result, it is necessary to weigh up the viability of the site not for the developers, as set out, but for the local authority. It is that check that is not required for such a project today, but it is really important, not least because local authorities simply do not have the necessary margins and, as a result, have to cut back on vital services to fund such capital projects.

My amendment therefore calls for prudence. On sites where any capital investment over the value of £2 million is made, there must be an economic appraisal commissioned and then published assessing the financial viability of the site to the authority. York Central has been developed for housing, so it will not reap the opportunities that a larger business owner could bring in nor those to do with council tax, as most of the properties being developed will be for investment, not for local residents to live in. They will either be empty units, leading to a cost to our city, or will be turned into Airbnbs, a matter that I will turn to later. Of course, Airbnb falls under the thresholds of flipping the property, not paying council tax and not paying business rates either, so the local authority loses millions of pounds as Airbnbs dodge the system.

At a time of significant austerity in local government, it is crucial that more scrutiny is given to the costs it has to expend on sites. My amendment simply calls for proper governance over finances and, at a time when the whole nation is looking at how Governments at all levels are more prudent with the spending of their money, it is right to bring forward such a measure to ensure that public money is spent in a way that will see its return and will be for the benefit of the people, not the developers and landowners who ultimately gain from such development.

[Dehenna Davison]

I am grateful to the hon. Member for York Central, who always talks incredibly passionately about her constituency. I thank her for bringing her experience of the capital project she mentioned to the Committee. As a Conservative, my ideology tells me that ultimately we always need to get best value for taxpayers’ money.

The Government recognise the importance of local capital investment for economic growth, improved public services and meeting our priorities, such as on housing delivery. That is why we need a robust system that supports the benefits of local decision making and allows sensible investment while safeguarding taxpayer’s money and protecting the local government finance system. Unfortunately, in recent years a small minority of local authorities have taken excessive risks with taxpayers’ money; they have become too indebted or have made investments that have ultimately proved too risky. That is why we need to ensure that the system is fit for purpose.

The changes made through clause 71 provide a flexible range of interventions for the Government to investigate where capital practices may have placed financial sustainability at risk and to take steps to remediate issues if necessary. We think that that is sufficient to address risk.

We have recently taken a number of steps to improve the transparency of local authority capital investment and borrowing. Last year we completed our data survey, which is designed to extract new data from local government and fill our identified information gaps. As of February 2022, we amended our regular statistical returns to obtain more detailed data on local authority investment activity. That will provide the Government with the clarity they need on the performance of investment assets as well as the location and risk management of investment properties.

--- Later in debate ---

[Rachael Maskell]

I am grateful for the Minister’s contribution. However, will she acknowledge that even if the viability of a site stands up, some of the investors in it may not? What ultimately happens is that local authorities become the backstop for financing and have to fill the gaps in order for those sites to be brought forward. As a result, the benefit goes to the developer and the risk sits with local authorities.

[Dehenna Davison]

I have certainly heard what the hon. Member has said, and we all have examples from our own constituencies and authorities. The current legislation and statutory codes allow local government to appraise risks as they stand. Alongside that, the monitoring and provisions that we are seeking through clause 71 will provide central Government with assurance. We think that the new clause is unnecessary, and I ask the hon. Member to withdraw it.

[Rachael Maskell]

I am grateful to the Minister for giving way again. Reflecting on the example that I gave, will she say how her Department would scrutinise the funding of sites such as the one in York Central to assess the viability of the local authority’s having to make increased contributions? Has the Department done that?

--- Later in debate ---

[Dehenna Davison]

I will be happy to follow up with the hon. Member on that point in writing.

[Rachael Maskell]

I thank the Minister for her response, but I am not satisfied that what she says will be sufficient to ensure that there are safeguards on local public resourcing that is brought forward on a site, particularly one as important as the York Central site, where eye-watering sums of money are being spent. I will therefore read with care what she writes to me to see whether there are sufficient safeguards. If I am not satisfied, I will want to return to this issue at a further stage of the Bill, but for now I beg to ask leave to withdraw the motion.

Clause, by leave, withdrawn.

New Clause 38

New use classes for second homes and holiday lets

“(1) Part 1 of Schedule 1 of the Town and Country Planning (Use Classes) Order 1987 (S.I. 1987/764) is amended as follows.

(2) In paragraph 3 (dwellinghouses)—

(a) for ‘whether or not as a sole or’ substitute ‘as a’, and

(b) after ‘residence’ insert ‘other than a use within Class 3B)’.

(3) After paragraph 3 insert—

‘3A Class C3A Second homes

Use, following a change of ownership, as a dwellinghouse as a secondary or supplementary residence by—

(a) a single person or by people to be regarded as forming a single household;

(b) not more than six residents living together as a single household where care is provided for residents; or

(c) not more than six residents living together as a single household where no care is provided to residents (other than a use within class C4).

Interpretation of Class C3A

For the purposes of Class C3A “single household” is to be construed in accordance with section 258 of the Housing Act 2004.

Class C3B Holiday rentals

Use, following a change of ownership, as a dwellinghouse as a holiday rental property.’”—(Tim Farron.)

This new clause would create new class uses for second homes and short-term holiday lets.

Brought up, and read the First time.

Question put, That the clause be read a Second time.

Levelling-up and Regeneration Bill (Twenty Sixth sitting)

Dehenna Davison Excerpts

Committee stage
Thursday 20th October 2022 Public Bill Committees

[Rachael Maskell]

It is a pleasure to serve with you in the Chair, Mr Hollobone, on the final day of our proceedings on this incredible Bill. I want to place on record my thanks to all the Clerks for the support they have given the Committee, particularly when writing our amendments.

There are omissions in the levelling-up agenda. Future generations, let alone the current one, will not forgive a levelling-up plan that fails to focus on the natural environment and to ensure that people have equal access to our greatest assets. Equitable access to the environment needs to be in the Bill through a specified mission. Some 70% of UK adults have said that being close to nature improves their mood, saving the NHS at least £100 million a year, with a nature-rich space leading to healthier and happier people. One in three people in economically deprived areas does not have access to green spaces within 15 minutes of where they live. These measures are therefore vital for our mental and physical health. It is often those who live in urban, deprived communities with the least connection to our natural environment who suffer the most. Making tacking that issue a central mission of the levelling-up agenda would prove that this Government understand that enrichment is for everyone and would bring Government focus to it.

I have constituents who have never been to the country, children who have never run along a beach and adults who have never climbed a mountain, never got lost in a forest and never been to a place where they can breathe the cleanest air. Without nature, our wellbeing is impaired, productivity falls and poverty rises—that is inequality, not levelling up. Access to the natural environment must therefore be a central mission if levelling up is to have any purpose at all.

New clause 46 would place a duty on Ministers to identify and maintain a network of sites for nature, to protect at least 30% of the land in England for nature by 2030, and that land must be monitored and managed for conservation and restoration. If, like me, you miss hedgehogs—perhaps they have no connected corridors—or birds, bees and butterflies, which we have failed to protect from pesticides and whose habitats we have failed to save, you will understand why this new clause is important. If you live somewhere like York and see more and more severe flooding because grouse moor shooting practices have damaged the upper catchment, you will want to see that practice stopped and the land restored. Our incredible natural environment was created to be in perfect balance, but our interference has caused so much harm.

We have a serious duty to monitor the natural environment, end the harm and restore nature before it is too late. Homing in on key sites must be our priority. We have heard so much this year about the climate emergency, and COP15 is highlighting the ruinous state of our natural environment. Just over the weekend, I was reading a WWF report that states that, on average, 69% of populations of mammals, birds and fish have vanished since 1970. We have to stop and save. My new clause would be the first step in that and would show that the Government were serious, not grandstanding, on such a serious issue.

[The Parliamentary Under-Secretary of State for Levelling Up, Housing and Communities (Dehenna Davison)]

It is a pleasure to serve under your chairmanship again, Mr Hollobone. I am again delighted to find some common ground so early in the Committee sitting; I think we were three minutes in when the hon. Member for York Central mentioned her love for hedgehogs—something that I definitely share. I thank her for these proposals, which aim to address the importance of the environment within the levelling-up framework.

New clause 44 concerns the inclusion of a specific mission on environmental equality. While I fully appreciate the sentiment behind it, the missions as depicted in the levelling-up White Paper are the product of extensive analysis and engagement already. They are supported by a clear range of metrics, which will be used to measure them at the appropriate levels of geography. They take into account the wider range of inputs, outputs and outcomes needed to drive progress in the overall mission. They cover a wide range of policy issues that are all clearly linked to the drivers of spatial disparities.

The Government have already explicitly acknowledged the importance of natural capital in the White Paper. As an asset, it underpins sustainable GDP growth, supports productivity over the medium term and provides resilience to future shocks. Natural capital has been estimated to be worth £1.2 trillion in the UK alone. It also has a place under the 25-year environment plan, which sets out the Government’s plans to help the natural world regain and retain good health. It pursues cleaner air and water in our cities and rural landscapes, protection for threatened species and provision of richer wildlife habitats. Importantly, the Environment Act 2021 already contains provision for the setting of long-term environmental targets for England, which is also referenced in the levelling-up White Paper, so the Government’s commitment to the environment is incredibly clear.

The Bill is designed to establish the framework for the missions, rather than the individual missions themselves. The framework provides an opportunity to scrutinise the substance of the missions and further environmental protections against a range of existing Government policy.

New clause 46 aims to establish a duty on relevant Ministers to identify and maintain a network of sites for nature. The Government have already committed to protecting 30% of land for nature by 2030 and to developing the most appropriate approach to increasing and enhancing protected land as we do so. Protected sites are our best existing areas for nature, providing places within which species can thrive, recover and disperse. The nature recovery Green Paper sought views on how the protected site system in England could be improved to better deliver our domestic and international biodiversity objectives, including our commitment to protect 30% of land by 2030 and wider species recovery. We are considering responses to the Green Paper and will be publishing our response in due course. This is the means through which the Government will implement and identify sites for the 30 by 30 commitment, but I hope the Government will be given the opportunity to respond on the Green Paper first. On that basis, I hope I have provided enough reassurance for the hon. Member for York Central not to press her new clauses.

[Rachael Maskell]

I have to disagree with the Minister that such priority is being given to the natural environment. This has to be a central mission, not least because of the recognition that she has given to the value of natural capital. While the 25-year environment plan sets out an ambition, it is weak on targets and monitoring. We need to go far further, which is what this proposal will do if it is a central mission in levelling up.

On new clause 46, I note that the Government are consulting on the issue, and I am interested in the responses. I will not push these new clauses today, save to say that the natural environment does not have high enough priority in this legislation, but it is essential for our future. I beg to ask leave to withdraw the motion.

Clause, by leave, withdrawn.

New Clause 45

General duty to reduce health inequalities and improve well-being

“(1) For the purposes of this section ‘the general health and well-being objective’ is the reduction of health inequalities and the improvement of well-being in England through the exercise of functions in relation to England.

(2) A public authority which has any functions exercisable in relation to England must prepare and publish a plan to be known as a health inequalities and well-being improvement plan.

(3) A relevant planning authority must have regard to the general health and wellbeing objective and that plan when preparing relevant plans, policies and strategies.

(4) A relevant planning authority when making a planning decision must aim to ensure the decision is consistent with achieving the general health and well-being objective.

(5) In complying with this section a relevant planning authority must have special regard to the desirability of—

(a) delivering mixed-use walkable neighbourhoods which accord with the 20 minute neighbourhood principle; and

(b) creating opportunities to enable everyday physical activity, through improving existing and creating new walking, cycling and wheeling routes and networks and natural spaces.

(6) For the purposes of subsection (5)(a), neighbourhoods which accord with the 20 minute neighbourhood principle are places where people can meet most of their daily needs including food shops, schools, health services and natural space within a 20 minute return walk of their home.

(7) Where the relevant authority is a local authority, in complying with this section, the authority must—

(a) include specific objectives for access to natural spaces and ensure that those objectives are met;

(b) ensure that the objectives established under subsection (a) set out standards for high quality accessible natural green and blue spaces, using Natural England’s Accessible Natural Greenspace Standards as a baseline, and going beyond these standards where possible; and (c) implement and monitor the delivery of those objectives.”—(Rachael Maskell.)

Brought up, and read the First time.

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

It is a pleasure to serve under your guidance today, Mr Hollobone. On this last day of the Committee, I want to put on record my thanks to the Clerk here and those who are not present for their work and support throughout the Committee. I also thank colleagues on both sides. Although I have been disappointed that the Government have not accepted amendments from the Opposition or from their own Back Benchers, I have nevertheless appreciated the courtesy with which that has been done. I have enjoyed this time on the Committee with all Members present—I genuinely mean that.

I have a few words to say on the new clause. Health inequalities are hugely significant for levelling up, and I want to pick just two issues that affect rural communities—not just mine, but others too. I will start with GPs. In my constituency alone there has been a 17% drop in the number of GPs in the past five and a half years—that is more than one in six GPs gone—and the average GP there serves 403 more patients than they did in 2016. Any Government criticism or implied criticism of GPs not seeing people quickly enough needs to be seen in that context. Let us support our GPs with the resources they need, rather than lambasting them.

It is worth pointing out that that period coincides with the time since the Government got rid of the minimum practice income guarantee, and I am going to argue that those things are connected. The minimum practice income guarantee was money that supported small, often rural, surgeries to ensure they were sustainable. Its removal has led to the closure of a number of surgeries, including the current threat to the Ambleside and Hawkshead surgeries in my constituency. A new small surgeries strategic rural fund could support those surgeries, make sure we do not lose more and bring some back.

The second issue is about cancer. In the north of Cumbria, 59% of people with a cancer diagnosis are not seen within two months of their diagnosis—they are not being treated for the first time for more than 62 days after diagnosis. In the south of Cumbria, the figure is 41%. Either way, that is outrageous. People are dying unnecessarily.

There are a whole range of reasons for that. One is the lack of easy access to radiotherapy. According to the Government’s national radiotherapy advisory group, any patient who has to travel more than 45 minutes one way for radiotherapy treatment is in receipt of “bad practice”. That information was published a few years ago now, but it still absolutely stands, clinically and in every other way. There is not a single person living in my constituency who can get to treatment within 45 minutes—not one. Mobile or satellite units at places such as Kendal and Penrith are absolutely essential. If we are going to tackle levelling up and health inequalities between rural areas and others, we need to ensure that small rural surgeries are properly funded and that there are satellite radiotherapy units.

[Dehenna Davison]

I am grateful to the hon. Member for York Central for raising this incredibly important issue. All hon. Members will agree that it is vital that we safeguard the health and wellbeing of our nation. The Health Secretary talked about the ABCD of national priorities—ambulances, backlogs, care, and doctors and dentistry—and giving her time to tackle them is incredibly important. That is why the Government have introduced a new approach to co-ordinating local efforts to improve health outcomes, and why we have already set clear expectations through planning policy.

--- Later in debate ---

[Dehenna Davison]

The shadow Minister is absolutely right: this is an area where we have found a lot of common ground in the few days that I have been serving on Committee. Long may that common ground continue. We can all recognise the incredible value of our hospitality businesses. I am sure that for many of us in this room, myself included, it is where we got our first experience of the job market in our first roles that gave us some of the skills that we needed to move through our careers. For many people, as the shadow Minister rightly outlined, it is not just a pub or a restaurant; it is somewhere we go to have a bit of company, to have a chat, to celebrate or commiserate, so it is right that we do all we can to get hospitality businesses through what has been a really difficult few years. That is why we have recently taken steps through the energy bill relief scheme to try to provide support for hospitality businesses and recognise the unique challenges that they face. That will be a vital tool to ensure they get through this difficult winter; and through kickstart we are helping businesses to recruit more staff.

On the specifics of the amendment, data on the hospitality sector is already available. The Office for National Statistics publishes a range of regional data, including on the output of the sector, the number of hospitality businesses and the number of workers they employ. I am keen not to duplicate the incredible work of trade bodies such as UKHospitality, the British Beer and Pub Association and the British Institute of Innkeeping, as well as organisations such as Statista and IBISWorld, who provide regular updates and industry statistics and reports detailing the state of the hospitality sector from its position of incredible expertise.

I am concerned that if we implemented the amendment, we would create an extra reporting requirement, putting an additional requirement on businesses at a time when they are already facing unprecedented costs and challenges. As I have already outlined, the Department has established a new spatial data unit to drive forward the data that we have in central Government. That could have a role to play when it comes to the hospitality business. More broadly, the amendment is unnecessary, so I ask the hon. Gentleman to withdraw it, although we are all on the side of hospitality businesses at this difficult time.

[Alex Norris]

I am grateful for that answer. I have a slight concern that relying on the data alone might make us a little reactive in this space, but I hope the Minister will think more about the idea of having it as part of a spatial data suite. That would be a valuable thing. I note her previous commitment to meet the Campaign for Real Ale, which is very interested in this. On that basis, I beg to ask leave to withdraw the motion.

Clause, by leave, withdrawn.

New Clause 57

Review of England's public conveniences

“(1) The Secretary of State must, within 6 months of the day on which this Act is passed, appoint commissioners to consider the level of need for public conveniences in England and the extent to which current provision matches that need.

(2) The Secretary of State must publish the report of the Commissioners before the end of the period of 12 months beginning with the day of their appointment.”—(Alex Norris.)

Brought up, and read the First time.

--- Later in debate ---

[Alex Norris]

Yes, changing place toilets are hugely important. I pay tribute to Martin Jackaman, the pioneer of those places and a Nottinghamian. Where available, changing places have been life-transforming for some of the most profoundly challenged families in the country. We want more such places, and to be clear that everyone going out in their city or town centre should have access to such provision—with a hoist and all those things that make the difference. That is why the issue is important.

On my new clauses, first, new clause 57 proposes a review of public conveniences. The Government would be asked to form an independent panel to assess the level of need for public conveniences within various communities and, having determined that need, to assess the level of provision. If there is a gap—I suspect there might well be—the panel should ascertain its root causes and make recommendations about what might be done to rectify the situation. I hope that the Government will encourage the devolved Administrations to undertake similar exercises.

Secondly, as addressed in new clause 58, one of the barriers to improving provision is a bit of a gap in ownership of the problem. Therefore, my new clause suggests that there should be a new duty on tier 2 councils to produce a local public convenience plan. That is not to dictate how councils use their resources, but it seems reasonable to have a plan for provision in the area. One would hope to work with partners for public convenience provisions and accountability.

Thirdly, new clause 59 is one proposal that could close the gap more quickly. Where businesses—we should recognise that many businesses up and down the country already do this—allow their toilet facilities to be used by non-patrons, that is a wonderful thing. If they do so, that could be reflected in the business rate. I am interested in the Minister’s views. My new clause might not be ready for the legislation today. That range of things would help close the gap in provision. We cannot afford to do nothing in this area. The gaps should close, but they continue to be a limiting factor on our high streets and in our town centres. I am interested to hear the Minister’s views.

[Dehenna Davison]

I have just taken the Committee on a virtual trip to the pub, so it only seems right that we should go to a public toilet on the way back. We know how important public toilets are for all of us, but in particular for some of the more disadvantaged groups, such as the disabled or those with young children. The shadow Minister was right to outline some of the particular challenges.

I thank the hon. Member for York Central for talking about changing places. As she will know, in the past year we have introduced a £13 million changing places fund, which has been fantastic in allowing local authorities to improve their provision. We all recognise that public conveniences are incredibly important, but they are very much a local issue. Local areas know best what provision they need—be that of public toilets or other amenities—alongside other local priorities that they hope to deliver.

New clause 57 would require the appointment of a commissioner to consider the level of need for conveniences, and public convenience plans would be required under new clause 58. Such changes would risk increasing bureaucracy, while decreasing the importance of local decision making. The shadow Minister will have heard me banging on in Committee about this, but it is certainly not what the Bill is about; it is about empowering local decision making and local leaders. It would be disproportionate for the Government to legislate on such a fundamentally local issue. Many local authorities already operate local community toilet schemes to encourage cafés and other businesses to open their toilets to the public. The Government welcome that and we encourage all local authorities to consider whether such a scheme would be beneficial in their area.

I will keep my points on new clause 59 brief, because the shadow Minister said that he did not intend to press it today. However, I pay tribute to my hon. Friend the Member for North West Durham (Mr Holden), who does not sit on the Committee but campaigned passionately to have business rates removed from public toilets. He ran an incredibly successful campaign, and it was implemented through the Non-Domestic Rating (Public Lavatories) Act 2021.

On the amendment generally, our concern is that we would legislate on this, but the impact on the overall business rates bill would be incredibly minimal given the relatively small floor space. On that basis, we do not think the clause is necessary or proportionate at this stage. I hope the shadow Minister will withdraw his new clause.

[Alex Norris]

I am grateful for those answers. On the point about increasing bureaucracy, I do not think it would be a huge increase. I also think areas might benefit from a bit more bureaucracy and professional interest. I accept the points on localism, which has been a theme of many of the amendments we have moved. I think when we seek to understand and configure the state here—and we can talk for hours about devolution—it is about local leadership and circumstance, but there also has to be something about the national environment setting. I felt that the clause had passed that test.

This issue is not going to go away. I hope the Minister will keep reflecting on it as she spends longer in her brief. There are many interesting stakeholders in this space, who I know will be keen to meet with her. I suggest that they get in touch. I do think this is an important issue, and I do not think the current circumstances reflect that, nor will they get better if left alone. At some point, we will have to enter this space, but it probably is not today. I beg to ask leave to withdraw the motion.

Clause, by leave, withdrawn.

New Clause 63

Minimum carbon compliance standards for new homes

“(1) The Secretary of State must make Building Regulations under section 1 of the Building Act 1984 providing that new homes in England must meet the full requirements of the Future Homes Standard from 1 January 2023.

(2) A local authority in England may choose to require and enforce minimum carbon compliance standards for new homes in its area which exceed the Future Homes Standard from that date.” —(Tim Farron.)

This new clause would bring forward from 2025 the date for which the Government’s Future Homes Standard for carbon compliance of new homes would apply. It would also give local authorities the option of imposing higher standards locally.

Brought up, and read the First time.

--- Later in debate ---

[Tim Farron]

I beg to move, That the clause be read a Second time.

In the least surprising development of this entire Committee, I will talk about electoral reform, which, on the day after the centenary of Lloyd George’s leaving office, seems like the entirely right and appropriate thing to do. If only he had done it when he had the chance.

This is a serious point about devolution. The reality is that we have been permitted over the past few years to have different electoral systems, such as the supplementary vote used for electing Mayors and police and crime commissioners. In Scotland, the single transferable vote operates successfully for local government, and Northern Ireland has its own separate arrangements. If we trust local people, and if the Bill is about devolving power to local communities, it seems entirely reasonable to suggest that the Government allow local authorities to choose from a range of reasonable options the system that they deploy—and to do nothing more than use the system that the Conservative party normally uses for electing its leader. I point out that I am moving the new clause only because the Government chose recently to remove the supplementary vote from the election of Mayors and police and crime commissioners.

Before I shut up and sit down, I wish to reflect on the fact that in the past couple of years the Government have demonstrated an interesting example of changing the electoral system without a referendum. That makes one think, does it not? If the party or parties who form the next Government have a commitment to electoral reform in their manifestos, there is no need for a referendum. It is a precedent that the Government may wish they had not set.

[Dehenna Davison]

If it is no surprise to the Committee that the hon. Gentleman brings up electoral reform, it will be no surprise to him that I stand to ask him kindly to withdraw his new clause, because the Government absolutely cannot accept it. We are all clear about the merits of first past the post as a robust and secure way to elect representatives. It is well understood by voters and provides for strong and clear local accountability, with a clear link between elected representatives and those who vote for them, in a manner that other voting systems may not.

It is important that the voting system is clearly understood by electors and they have confidence in it. We have spoken a lot in Committee about local confidence in local politics. Ensuring confidence in the voting system is paramount. Having different systems for neighbouring areas risks confusion for electors. We are a very mobile population: we could work in one area and have family in another. That confusion could be a real risk and could weaken public confidence in the local electoral process.

There is also the risk of political manipulation. For example, the current controlling group on the council could seek to choose and implement a system that it believes would favour it. Although I accept that there could be various safeguards to mitigate that risk, I do not consider that it could be entirely removed.

Elections are the foundation of local democracy, which is central to our values and to our being a free society; we should protect and nurture it. I could talk about this all day, but I will not detain the Committee any further. I ask the hon. Gentleman to withdraw the new clause.

[Tim Farron]

I will not press the new clause to a vote, but I will comment on the irony of the Minister saying that parties should not support electoral systems that advantage them, and of suggesting that there is some kind of automatic stability and clarity about Governments that are elected via first past the post. It is all going swimmingly at the moment.

There is this idea that there may be confusion between different systems. As a Cumbrian, I can completely cope with the fact that the Scots, just over the border, have a totally different electoral system for local and parliamentary elections. My Conservative friends in Westmorland and Eden are perfectly capable of voting by alternative vote for their leader and by first past the post for their Member of Parliament or councillor. The arguments made by the Minister do not hold water, but I will not trouble the Committee by pushing the new clause to a vote. I beg to ask leave to withdraw the motion.

Clause, by leave, withdrawn.

New Clause 65

Review into business rates system

“(1) The Chancellor of the Exchequer must undertake a review of the business rates system.

(2) The review must consider the extent to which the business rates system—

(a) is achieving its objectives,

(b) is conducive to the achievement of the levelling-up and regeneration objectives of this Act.

(3) The review must consider whether alternatives of local business taxation would be more likely to achieve the objectives in subsections (2)(a) and (b).

(4) The review must in particular consider the effects of business rates and alternative local business taxation systems on—

(a) high streets, and

(b) rural areas.

(5) The review must consider the merits of devolving more control over local business taxation to local authorities.

(6) The Chancellor of the Exchequer must lay a report of the review before parliament before the end of the period of one year beginning with the day on which this Act is passed.”—(Tim Farron.)

This new clause would require the Secretary of State to review the business rates system.

Brought up, and read the First time.

--- Later in debate ---

[Tim Farron]

I beg to move, That the clause be read a Second time.

Me again—sorry. The Government have made quite a thing recently about their investment zones, which are interesting. We talked about them earlier in Committee. One idea behind them is that they create a low-tax environment, which misses the major point that faces most of Britain and certainly the whole of the north of England: business rates are the high tax that destroys high streets, puts off entrepreneurs, snuffs out young and small businesses and damages local economies, rural and urban alike.

New clause 65 would require a review of the business rates system to ensure that business rates are reformed and, indeed, replaced. They are harmful to our economy. They directly tax capital investment in structures and equipment, rather than taxing the profit of a fixed stock of land. We should abolish the business rates system and replace it with a commercial landowner levy, shifting the burden of taxation from tenant to landowners. That would benefit deprived communities in particular. In terms of business rates, the whole of the north is over-rated—I should be very careful: it is over-business rated. It is not over-rated; it is of course the best part of planet Earth.

Kendal, Windermere, Penrith and communities throughout Cumbria are thriving compared with many places—we are lucky to have so many independents—but the gaps that we have in our high street we have in large part because business rates are totally unfit for purpose. They are a drag on investment and snuff out entrepreneurial zeal. If the Government really wanted to create investment zones, they would create them on every high street in the country by scrapping or reforming business rates.

[Dehenna Davison]

I am grateful to the hon. Gentleman for raising this issue, about which we have all had local businesses, shop owners, shop workers and other constituents contact us. I am sure the hon. Gentleman will be aware that the Government reported on the business rates review, which was published with the 2021 autumn Budget. We will respond to the ongoing technical consultation in due course. At the Budget we also set out a range of measures to reduce the burden of business rates on all firms, including freezing the business rates multiplier, new support for businesses that are improving and greening their properties and additional support for high street businesses. It was a package worth more than £7 billion to businesses over the next five years.

I will keep this relatively brief. I understand the hon. Gentleman’s intention, but I suggest that the provision is unnecessary. Should the Government wish to undertake a further review of business rates, we would not require legislation to do so. I fear that putting that requirement into primary legislation would be unduly restrictive, create unhelpful bureaucracy and actually slow the possible rate of change.

[Tim Farron]

The Government do not need legislation to do most of what is in the Bill—just get on with it. Levelling up is something they can just crack on with. Business rates are a massive drag on investment in our high streets. If I heard in what the Minister said any commitment to look at that seriously, so that the obvious burden was addressed, those with the wealth to pay business-related taxes pay more, and communities in the north of England as well as those struggling in the south paid a fairer and lower rate through a new system, I would be prepared to withdraw the motion. On the condition the Government are seriously looking at that, I beg to ask leave to withdraw the motion.

Clause, by leave, withdrawn.

New Clause 66

Disability accessibility standards for railway stations

“(1) The Secretary of State must take all reasonable steps to ensure that railway stations in England—

(a) provide step-free access from street to train, and

(b) meet in full and as soon as possible the disability access standards in the Design Standards for Accessible Railway Stations Code of Practice published by the Department for Transport and Transport Scotland in March 2015.

(2) Any requirements made in conjunction with that duty may not make any exemptions or concessions for small or remote stations.

(3) In undertaking the duty in subsection (1) the Secretary of State may—

(a) make an application to the Office of Rail and Road under section 16A (provision, improvement and development of railway facilities) of the Railways Act 1993;

(b) revise the code of practice under section 71B (code of practice for protection of interests of rail users who are disabled) of the Railways Act 1993;

(c) amend the contractual conditions of any licenced railway operator;

(d) instruct Network Rail to take any action the Secretary of State considers necessary in connection to the duty.

(4) The Secretary of State must report annually to Parliament on performance against the duty.” —(Tim Farron.)

This new clause places a duty on the Secretary of State to ensure that railway stations meet disability access standards.

Brought up, and read the First time.

Levelling-up and Regeneration Bill (Twenty Seventh sitting)

Dehenna Davison Excerpts

Committee stage
Thursday 20th October 2022 Public Bill Committees

It is clear that the current system is not working. It is opaque and open to abuse. As more powers are devolved to local areas, with that should come more accountability and robust improvements in standards. The handling of complaints in relation to councillors should be through a fully independent standards board for England. It is the greatest of honours to serve your community, be it at council or parliamentary level, but that should come with the right checks and balances. The public need confidence in the system; they need to know that those in charge of their local services and budgets are always acting in the service of their residents and not in their own service.

[The Parliamentary Under-Secretary of State for Levelling Up, Housing and Communities (Dehenna Davison)]

It is a pleasure to serve under your chairmanship again, Mrs Murray, in this last sitting of the Committee. I know everyone in the room is incredibly saddened about that.

I am grateful to the hon. Member for South Shields for tabling this new clause. She is right that it truly is an honour for anyone in elected life to be able to serve their community. We all must do so with the highest regard for integrity and public service. However, we will not accept the new clause. I will outline a few reasons why.

The Standards Board for England, which was established under the Local Government Act 2000, was a flawed regime. It was a deliberate decision in the Localism Act 2011 to abolish it. During its short existence, the Standards Board for England allowed politically motivated and vexatious complaints, which had a chilling effect on free speech within local government. As a central Government quango, it was clearly incompatible with the principles of localism.

The Government’s position remains unchanged since then. That was recently restated in our response to the Committee on Standards in Public Life’s review of local government ethical standards. The Government consider that it is the right of the electorate to determine who represents them and that local issues are best resolved locally. The abolition of the Standards Board restored power to local people. The new clause would effectively reinstate that flawed regime. All councillors are ultimately held to account via the ballot box. On that basis, I ask the hon. Lady to withdraw the new clause.

[Mrs Lewell-Buck]

I thank the Minister for that response. We could rehash all the arguments that were heard last time, but I will not detain the Committee for long. The Minister claims that there were politically motivated and vexatious complaints. The other argument is that there were some genuine complaints. Sanctions were put on councillors and it stopped them from acting in such a manner in the future. Of course the electorate can decide, but sometimes they cannot decide for four years, which is a long time if somebody is abusing public money and their position. For now, I beg to ask leave to withdraw the motion.

Clause, by leave, withdrawn.

New Clause 78

Responsibility of executive councillors to answer questions

“(1) Chapter 2 of the Local Government Act 2000 (executive arrangements) is amended as follows.

(2) After section 9DA (functions of an executive: further provision) insert—

‘(9DB) Responsibility to answer questions

A councillor who is a member of an executive must take all reasonable steps to give a timely answer any question about the executive, its functions or the local authority (including about standards of conduct) from any councillor of the local authority that is asked—

(a) in writing, or

(b) orally in a council meeting.’”—(Mrs Lewell-Buck.)

This new clause would establish a legal requirement for executive councillors to answer written questions from fellow councillors and oral questions in council meetings.

Brought up, and read the First time.

[Mrs Lewell-Buck]

I beg to move, That the clause be read a Second time.

The new clause is in my name and that of my hon. Friend the Member for York Central. I will be brief; I sense that the mood of the Committee is that everyone would like us to finish as soon as possible. This new clause is in much the same spirit as new clause 76 and new clause 79, which we will consider later. Local government can be a mystery to many people. Anyone logging on to their council’s website or attending a meeting would testify to how confusing procedures can be. In this place, those who hold the position of Secretary of State or Minister are rightly asked questions in the Chamber, in the public domain. We may not always like the answers—in fact, I very rarely do—but the process allows a level of public accountability. In local councils, though, it is up to local councillors whether they answer questions from other members. I am aware that the executive members of many councils already do, but I have also witnessed the opposite approach, where every single question is dismissed, shut down or deferred for a written response. Surely those in senior elected positions, such as council leaders, or cabinet members who hold responsibility for a service and budgets, should answer questions from other members. To refuse to do so is to be unaccountable. New clause 79 seeks to positively enhance the public’s faith in their local government representatives. Once again, I look forward to the Minister’s views.

[Dehenna Davison]

I am grateful to the hon. Lady for the new clause, which has a noble aim. I think we all believe that the transparency of any executive, national or local, is incredibly important. Accountability is equally important, particularly considering the point about trust in politicians and politics.

As the hon. Lady outlined, the new clause would put into statute a requirement for executive councillors to answer questions from other councillors. It is vital that back-bench councillors be able to hold the executive to account. In their published constitutions, many councils will already set out the procedure for both elected members and members of the public to ask questions at full meetings of the council, or at any other committee meeting. However, we firmly believe that the Government would be going beyond the role that they should play in local matters if they required in law that such councillors answer questions. Local authorities are already subject to checks and balances as part of the local government accountability framework. In addition, authorities with executive governance arrangements are required to have overview and scrutiny committees, governed by statutory guidance, to ensure that members of the authority who are not part of the executive can hold the executive to account. It would not be right for central Government to dictate the minute details of local authority arrangements, although I appreciate the noble aim behind the new clause. I kindly ask the hon. Lady to withdraw her new clause.

[Mrs Lewell-Buck]

I thank the Minister, and I am happy to beg to ask leave to withdraw the motion.

Clause, by leave, withdrawn.

New Clause 79

No role for councillors in recruitment or duties of monitoring officers

“(1) The Local Government and Housing Act 1989 is amended as follows.

(2) In section 5 (designation and reports of monitoring officer), after subsection (1) insert—

‘(1ZA) No elected councillor of a relevant authority in England may have any role in—

(a) the recruitment or selection of the officer designated monitoring officer under subsection (1), or

(b) the performing by the monitoring officer of the functions imposed by this section and, where relevant, section 5A.’” —(Mrs Lewell-Buck.)

This new clause would prohibit the involvement of elected councillors in the recruitment or duties of officers appointed to monitor lawbreaking, maladministration, failure and injustice within a local authority or its executive.

Brought up, and read the First time.

[Mrs Lewell-Buck]

I beg to move, That the clause be read a Second time.

I appreciate that the majority of local authority appointments of chief officers such as chief executives or monitoring officers are made after a robust interview that has followed human resources processes. Those processes can involve senior elected members. However, I have witnessed, and am aware of local authorities that experience, inappropriate or partial influence being exerted when officers are conducting operational business. I recall once sitting with a chief executive and a leader, and the leader was demanding that something be done that the officer was deeply uncomfortable with. The leader shouted at the chief executive, “I hired you; I will fire you if you don’t do this.” I could go on, but I think the point is made.

It is clear why there should be no elected member involvement whatsoever in the appointment of any local authority monitoring officer. These officers work hard and are incredibly professional. They are already working in politically restricted, tightly governed senior roles. They should never be exposed to unacceptable scenarios, such as the one I just outlined. That is why new clause 79 is important. I hope the Minister agrees.

[Dehenna Davison]

I am sure the hon. Lady will not be surprised to hear that we will not accept the new clause. First, I want to say that the example of terrible practice that she witnessed is not isolated. All examples of bad practice absolutely must be called out, but there is a strict framework already in place. The new clause appears to seek to protect the objectivity of monitoring officers, and their ability to speak truth to power—that is, to elected members. The new clause requires that elected councillors have no role in the selection or recruitment of a relevant authority’s monitoring officer. Of course, the monitoring officer is one of three crucial statutory officers that any principal local authority must have, the other two being the chief executive and the section 151 officer. Some councils may already have designated the responsibility for appointing the monitoring officer to the head of paid service, but we must remember that councils are independent, democratic bodies that have the freedom and flexibility to manage their workforce. If they choose to operate a member appointment panel, it would be neither appropriate nor consistent with the principles of localism to prevent them from doing so.

The new clause would also mean that elected councillors played no role in a monitoring officer’s performance of their duties. However, monitoring officers’ specific speak-truth-to-power role is already protected in their responsibilities under sections 2 and 5 of the Local Government and Housing Act 1989. Those statutory responsibilities include reporting anything that they believe to be illegal or to amount to maladministration relating to the conduct of councillors and officers, or to the operation of the council’s constitution. On that basis, we do not feel that the new clause is necessary, and it is contradictory to the core principles of localism in which we so strongly believe. I ask the hon. Lady to withdraw it.

[Mrs Lewell-Buck]

I thank the Minister for that response. My new clause would have given an extra layer of protection. She has misunderstood how impossible an environment can make it to speak truth to power. The clause would have helped people who are stuck in that situation, but I am happy to withdraw it. I beg to ask leave to withdraw the motion.

Clause, by leave, withdrawn.

New Clause 80

Licensing scheme: holiday lets

“(1) The Secretary of State must make regulations to require each relevant local authority in England to introduce a local licensing scheme for holiday lets.

(2) Any local licensing scheme introduced pursuant to regulations made under subsection (1)(a) must require any owner of a holiday let to—

(a) obtain any fire, gas and electricity safety certificates as specified by the scheme;

(b) ensure that the holiday let complies with any health and safety regulations specified by the scheme, including the completion of any risk assessments required by those regulations;

(c) secure a licence for the holiday let from the local authority prior to trading;

(d) obtain a licence and renew this licence—

(i) every three years,

(ii) when the property changes ownership, or

(iii) when there is a change in the person holding day to day responsibility for the property; and

(e) not let out a property without a valid licence.

(3) A local authority introducing a licensing scheme must—

(a) outline—

(i) the terms and conditions of the licence,

(ii) the application process for securing the licence, and

(iii) the licence renewal process;

(b) determine an annual licence fee for each licensed property;

(c) inspect any property prior to issuing a licence;

(d) require the owner of a short term holiday let to —

(i) apply for and hold a licence to operate for each property they let prior to trading,

(ii) pay a licence application fee and annual charge for the licence,

(iii) renew the licence as required by the local authority under their licensing scheme,

(iv) pay any fines associated with breaches of a licence as laid out in the local licensing scheme,

(v) ensure that the holiday let complies with any health and safety regulations specified by the scheme, including the completion of any risk assessments required by those regulations, and

(vi) provide up to date property details including details of who will hold responsibility for the day to day management of the property;

(e) maintain an up to date list of all licensed short term holiday let properties within the local authority area to include—

(i) the address of the property,

(ii) whether this is a shared property occupied by the owner or a separate let,

(iii) how many people are eligible to stay at the property, and

(iv) how many days of the year that the property will be advertised for letting and be let;

(f) inspect the property following a report from the public of an issue of concern relating to the property or to any other property owned by the same person;

(g) monitor compliance with the licensing scheme;

(h) publish an annual report on the number and location of licences including the number and location of licences in each ward and their impact on local residential housing supply and details of any breaches reported and fines issued; and

(i) provide residents adjacent to the short term holiday let contact details of their enforcement officer should they experience any issue at the property.

(4) A licensing scheme must allow the local authority to—

(a) set out details of any area where the granting or renewal of licences will be banned, suspended or limited;

(b) set limits and or thresholds on the level of the licencing permitted in any area;

(c) require property owners to renew their licences every three years, or when a property changes in ownership;

(d) issue fines or remove a licence of a property if—

(i) fire, health and safety conditions are breached,

(ii) criminal activity occurs at the property, or

(iii) excess noise and nuisance or anti-social behaviour rules as set out in the licensing conditions are repeatedly breached, or

(iv) the registered owner or the person listed as holding responsibility for the property has had licences on other properties removed; and

(e) issue penalties or licensing bans on those renting properties without a licence.

(5) In this section—

An ‘area’ may be—

(a) a polling district;

(b) a ward; or

(c) the whole local authority area;

‘holiday let’ means—

(a) a dwelling-house let for the purpose of conferring on the tenant the right to occupy the dwelling-house for a holiday, or

(b) any part of a dwelling-house let for the purpose of conferring on the tenant to occupy that part of the house for a holiday;

‘relevant local authority’ means—

(a) a district council in England;

(b) a county council in England for an area for which there is no district council;

(c) a London borough council;

(d) the Common Council of the City of London.”—(Rachael Maskell.)

This new clause provides for the introduction of a licensing scheme for holiday lets.

Brought up, and read the First time.

--- Later in debate ---

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

I want to say a big thank you for your role in chairing many sittings of this Committee, Mrs Murray. I also thank the Clerks, who have supported you and all of us.

Earlier this week, we offered Government Members the opportunity to vote to enable local authorities to compel developers to build only affordable housing for a period of time, and they rejected that. Now, the hon. Member for York Central has put forward a very reasonable and timely suggestion about how we might do something about the stock that we have. If they will not do one or other, what is meant to happen to our housing stock? The reality for communities such as mine in Cumbria is that the evaporation of the long-term housing rental market has led to enormous hardship. It is a catastrophe.

It was a problem before the pandemic, but the combination of the stamp duty cut, introduced by the last Chancellor but three at the beginning of the pandemic, and a failure to acknowledge the consequences of the staycation boom, meant an absolute avalanche of full-time residential property going into either the second home market or the short-term rental market. That has had absolutely devastating consequences.

The fact that the Government have not kept their manifesto promise to scrap section 21 evictions means that there is literally an open door for any landlord to get rid of the people they have in those homes, and those homes then go into short-term holiday let usage. In South Lakeland, in my constituency, in one year we saw a 32% rise in the number of holiday lets. As hon. Members can image, South Lakeland had tonnes to start off with, so that is a vast number. Where did they come from? They were not new build properties, but existing homes that were lived in by families and others who have now been evicted, not just from those homes but from those communities.

I do not want to make any assumptions, but I imagine that in a community such as yours, Mrs Murray, the situation is similar and you have lost some of the full-time population. What then happens to the working-age population? I can think of successful primary schools that have lost 20% to 40% of their pupils for that reason in the last two years.

Cumbria Tourism undertook a survey of its member organisations and businesses, which work throughout the lakes, dales and other parts of Cumbria, and found that some 63% could not work at capacity over the last year because they did not have the staff to do the job. The lack of affordable housing kills economies as well as ruining family life and undoing the fabric of our communities, including schools, churches, pubs, businesses and bus services, the demand for which dries up.

The situation is catastrophic. If the Government will not accept the amendment proposed by the hon. Member for York Central, the amendment I proposed or any of the other amendments that have been proposed, what are they going to do about the crisis in our existing housing stock in communities such as those in York, Cumbria and many other areas of the country? They might nod and show their concern, but they must act. This is an absolute emergency, so act. This is something they could do, so why would they not do it?

[Dehenna Davison]

I am incredibly grateful to the hon. Member for York Central for raising the issue so passionately. I know she is deeply concerned about it and has been campaigning incredibly hard on it throughout her time in Parliament. I note she mentioned her private Member’s Bill. I have already offered to engage with her on issues that we have discussed previously in Committee, and I am happy to engage with her on that as well.

Online platforms have enabled greater choice in accommodation for holidaymakers and have brought benefits to the tourism sector. On the one hand, it is an incredible compliment to a place to see a lot of Airbnb rental properties popping up, as the area becomes a tourism hotspot and a lot of people want to visit incredible places such as York and Cumbria, but unfortunately we know the issues that can come with that as well.

The hon. Member for Westmorland and Lonsdale mentioned local school numbers declining and local shops and pubs seeing their year-round trade turning to seasonal trade, which is not something they necessarily expected or planned for. Many hon. Members from across the House are familiar with such arguments and have raised them in debates. I have had particular representations from hon. Members from Cornwall and Devon, who I know face similar issues.

The hon. Member for York Central mentioned illegal activity and gave examples from her constituency. That is another area where it is crucial that we get our policy right. That is why DCMS launched the call for evidence on this topic, which she made reference to, as an important first step in understanding how we can continue to reap the benefits of short-term lets, while also protecting holidaymakers and local interests.

The Government are now carefully analysing over 4,000 responses to this exercise. What local people and affected stakeholders have said will help to inform the development of evidence-based and proportionate policy proposals. Accepting this amendment before we have analysed those responses would pre-empt the necessary policy development needed. We plan to publish our response to the consultation in the usual way. We want to make sure we get the policy right because we recognise that there are so many issues related to it.

[Rachael Maskell]

I have two points. First, could the Minister set out a timeline? This is so urgent because of the pace of change, so we really need to understand what the timeline is. There has been a lot of talk and debate in this place; many colleagues from across the House have articulated the pain this issue is causing their communities. Secondly, would the Minister be willing to hold a cross-party roundtable to enable Members to get a full understanding of those experiences? The most acute problems are essentially occurring in holiday destinations and places that people come to visit, so it would be important to ensure a combination of coastal, rural and urban. That could help to move the debate forward and land the legislation in the right place, so that it pays heed not just to what are seen as the benefits of the short-term holiday let industry, but to our communities.

[Dehenna Davison]

I am grateful to the hon. Lady for the constructive way she is approaching this important debate. As I say, this is a DCMS consultation, so I cannot provide a timeline today, but I will write to her to follow up and try to provide as much clarity as I can on that point. I would certainly be happy to hold a roundtable, but this specific policy does not actually sit within my brief. However, I will endeavour to write to the relevant Ministers and encourage them to take this up. As I say, I will follow up in writing on those points.

[Rachael Maskell]

If I may, I seek the indulgence of the Committee a little longer. The Minister has raised a real issue here: the matter now needs to move into the Levelling Up Department. The impact on housing is enormous. Although I appreciate that it started in DCMS, it now needs to move, because this is essentially a housing issue. It is about how the housing sector is working, rather than about the tourism sector. The industry has grown and become far more professionalised; it now clearly needs to move Departments in order to bring forward the legislation.

[Dehenna Davison]

On that point, I have heard from my colleague sitting beside me, the Housing Minister, my hon. Friend the Member for North East Derbyshire, that he is happy to meet with the hon. Lady to discuss the matter in further detail.

[Rachael Maskell]

I am grateful to both Ministers for that, and I welcome that opportunity. I am quite relaxed about other colleagues also bringing their experiences to that meeting. It is important that we get this nailed now and get it right for all our communities. It is far too important. Time is of the essence. I will most certainly take up that offer.

I will not push the new clause to a vote today, although I will bring it back on Report. I cannot wait around—people in my community are exiting at such an alarming rate that I need to get this addressed. However, I thank the Ministers for being able to debate this matter this afternoon and to have a bit more time on it. It is of real importance for all of us and we have to get it right. I beg to ask leave to withdraw the motion.

Clause, by leave, withdrawn.

New Clause 81

Cycling, walking and rights of way plans: incorporation in development plans

“(1) A local planning authority must ensure that the development plan incorporates, so far as relevant to the use or development of land in the local planning authority’s area, the policies and proposals set out in—

(a) any local cycling and walking infrastructure plan or plans prepared by a local transport authority;

(b) any rights of way improvement plan.

(2) In dealing with an application for planning permission or permission in principle the local planning authority shall also have regard to any policies or proposals contained within a local cycling and walking infrastructure plan or plans and any rights of way improvement plan which have not been included as part of the development plan, so far as material to the application.

(3) In this section—

(a) ‘local planning authority’ has the same meaning as in section 15LF of PCPA 2004;

(b) ‘local transport authority’ has the same meaning as in section 108 of the Transport Act 2000;

(c) ‘local highway authority’ has the same meaning as in the Highways Act 1980;

(d) a ‘rights of way improvement plan’ is a plan published by a local highway authority under section 60 of the Countryside and Rights of Way Act 2000.”—(Rachael Maskell.)

This new clause would require development plans to incorporate policies and proposals for cycling and walking infrastructure plans and rights of way improvement plans. Local planning authorities would be required to have regard to any such policies and proposals where they have not been incorporated in a development plan.

Brought up, and read the First time.

--- Later in debate ---

[Rachael Maskell]

I beg to move, That the clause be read a Second time.

I hear a cheer in the room as I rise to my feet for a final time. I thank you, Mrs Murray, for your chairing of the Committee. I also thank your colleagues, the Clerks and Hansard. We have had a lot of really important debates.

New clause 83 stands in my name and that of my hon. Friend the Member for Oldham East and Saddleworth (Debbie Abrahams). Reviewing our public health policy is really important. Understanding its context and impact on poverty is at the heart of what levelling up is all about. The new clause would ensure a real focus on the data that is required and a proper review of public health policies, which is vital, with a report being laid before Parliament within six months of the passing of the Bill. That would ensure that Parliament’s eyes are on the issue.

The new clause focuses on relative and absolute poverty, and putting forward the data that has often been debated and disputed in the House, so that we can see what is happening from an authoritative source. We ultimately have to measure what is happening. Levelling up cannot be just about the infrastructure and the pounds spent; it has to be about the outcomes that really impact people. When poverty is such an issue in our country, we have to look at the inequality and disparities that we see. Having data to properly manage the system and drive inputs and outcomes is really important.

The new clause also looks at the socioeconomic inequalities and population groups with protected characteristics. We all know that black, Asian and minority ethnic, LGBT, elderly, young and disabled people experience disparity when it comes to so many issues within the levelling-up missions. It is important to look at ensuring that people with protected characteristics have the necessary assessment to ensure that they, too, are levelling up and not being left behind. Covid was a real example of why that is so necessary; we saw it for whole swathes of communities, particularly those from the black, Asian and minority ethnic community, who faced the worst impact because of their socioeconomic status.

Life expectancy, and healthy life expectancy, is really important for planning an economy for the future. We need to understand its impact, particularly on excess deaths due to poverty, to ensure that we are monitoring what is happening among those communities. In my constituency there is a 10-year disparity in life expectancy between the poorest and the richest communities. That is a really serious issue within levelling up. I appreciate that there is a debate within that about extent of life versus quality of life, but those with shorter lives also do not have a good quality of life on many occasions. We have to drive down inequality in that area.

The new clause also looks at funding for public health provision. We know that there is a real deficit in areas of deprivation, and we need to ensure a proper matrix for health spending as we move forward. The new clause is about providing the good, solid data that is required to analyse what is happening with the levelling-up agenda, and putting that before Parliament and Ministers to ensure that the right policy decisions are being made to level up our country.

[Dehenna Davison]

I thank the hon. Member for York Central for these proposals, which speak to an objective that I think we all share of reducing the entrenched spatial inequalities across the UK. That is fundamentally what levelling up is all about.

While I appreciate the sentiment behind the new clause, the specific mechanisms proposed may not be the best way to add value in this area for a couple of reasons. First, there are robust and long-standing mechanisms in place to assess trends in public health and poverty already, including through the public health outcomes frameworks, relevant statistics for which are regularly updated and published by the Office for National Statistics. Additionally, the Bill will create a statutory responsibility on the Government to define and report against long-term levelling-up missions to address spatial disparities. The missions in the levelling-up White Paper, for example, include living standards, pay and productivity, and healthy life expectancy. Those are particularly relevant in addressing the themes and concerns that the hon. Member raised.

The Government have established cross-departmental structures to measure long-term progress against their levelling-up missions and to assess how their policies and programmes are contributing to making progress towards those missions. I refer the hon. Member to comments that I have already made about the spatial data unit, and the role it can play in helping on that assessment. The measures in the Bill will not operate in isolation but as part of a much wider range of both legislative and non-legislative measures, which will in turn shape outcomes on the ground. It is right that we should pursue our policy objectives through the more systemic frameworks that I have outlined rather than what could be seen as more fragmented reports and reviews, as called for in the new clause.

The hon. Member will be aware of the well-established mechanisms overseen by His Majesty’s Treasury and highlighted in “Managing Public Money” and elsewhere to assess the impact of policy interventions on the public finances and to allow Parliament to hold the Government to account on their expenditure. As such, we do not feel that an additional specific assessment of the impact of measures in the Bill would add value as we pursue our aim to level up the country. I hope that I have provided enough reassurance for her to withdraw the motion.

--- Later in debate ---

[Alex Norris]

I want to put on record for myself and on behalf of my colleagues our thanks to you, Mrs Murray, and your colleagues in the Chair; to the world-class Clerks for all their assistance; to the Doorkeepers and the Hansard Reporters for all their work; and to Government colleagues, both Front Benchers and Back Benchers, for the discussions and debates. I know that they have been lengthy, but that is because the Bill is important, and we appreciate the spirit in which that has been done. I extend that to the Government’s officials, as well as our own staff. I am very grateful. Thank you.

[Dehenna Davison]

For fear of this sounding like an Oscars acceptance speech, I have an awful lot of thank yous to say. First, I express my sincere thanks to the shadow Ministers. This is my first Bill Committee as a Minister. Hopefully it will not be my last, but given today, who knows? I thank them for the very constructive and warm way in which they have engaged with me, and with my colleague beside me, the hon. Member for North East Derbyshire, on the Bill. There are some incredibly important debates to have. We have had some of them, and I know that many more happened before I took over as the Minister in this area. The fact that they have all been conducted in such a constructive and jovial way is something that I am certainly very grateful for.

I am also incredibly grateful to the officials who got us briefed on the Bill and got us through it, and to the Clerks and all Chairs of the Committee, including you, Mrs Murray. I am very grateful to members of the Committee of all colours for the spirit in which we have conducted it today, and to Whips past and present, Parliamentary Private Secretaries past and present, and Doorkeepers. I think I have pretty much everyone covered. A huge thank you from me. I am delighted to see the Bill through to the end of Committee stage.

Question put and agreed to.

Bill, as amended, accordingly to be reported.

Levelling-up and Regeneration Bill

Dehenna Davison Excerpts

Report stage
Wednesday 23rd November 2022 Commons Chamber

[The Parliamentary Under-Secretary of State for Levelling Up, Housing and Communities (Dehenna Davison)]

I beg to move, That the clause be read a Second time.

[Madam Deputy Speaker (Dame Rosie Winterton)]

With this it will be convenient to discuss the following:

Government new clause 62—Functions in respect of key route network roads.

Government new clause 65—Participation of police and crime commissioners at certain local authority committees.

New clause 1—Power to provide for an elected mayor—

(1) Part 1A of the Local Government Act 2000 is amended as follows.

(2) After section 9K insert—

“9KA Power to provide for an elected mayor

(1) The Secretary of State may by regulations provide for there to be a mayor of a local authority.

(2) Before making regulations under subsection (1), the Secretary of State must publish a report which contains—

(a) an assessment of why it is in the interests of economy, efficiency, effectiveness or public safety for the regulations to be made, and

(b) a description of any public consultation the Secretary of State has carried out on the proposal for the regulations to be made.””

This new clause would allow the Secretary of State to provide for there to be a mayor of any local authority if they deem appropriate.

New clause 2—Resignation requirements for MPs serving as elected mayors—

“(1) The Police Reform and Social Responsibility Act 2011 is amended in accordance with subsection.

(2) In section 67 (Disqualification of person holding office as police and crime commissioner), leave out paragraph (a).

(3) Schedule 1 to the House of Commons Disqualification Act 1975 is amended as follows.

(4) In Part 3 (Other Disqualifying Offices), at the appropriate place insert—

‘Mayor who is to exercise the functions of police and crime commissioner’”.

This new clause would allow an MP who is elected as a mayor who is to exercise the functions of a police and crime commissioner to remain as an MP until the next parliamentary election.

New clause 4—Housing Act 1985—

“In section 618 of the Housing Act 1985 (The Common Council of the City of London), omit subsections (3) and (4).”

This new clause would correct a disparity which applies uniquely to Members of the City of London’s Common Council in relation to their ability to discuss or vote on local authority matters relating to land, for example housing, by removing a prohibition on participating on such matters.

New clause 7—Council tax: properties of multiple occupancy—

“(1) The Local Government Finance Act 1992 is amended as follows.

(2) In section 3 (meaning of “dwelling”), after subsection (4A), insert—

‘(4B) Subject to subsection (6) below, the following property is not a dwelling—

(a) a room or bedroom subject to a tenancy agreement that does not contain bathroom and cooking facilities within its physical curtilage;

(b) a room or bedroom subject to a tenancy agreement which includes bathroom facilities but does not include cooking facilities within its physical curtilage;

(c) any rooms or bedrooms within a licensed House of Multiple Occupancy; and

(d) any room which is not in law a self-contained unit regardless of any clause, term or condition of any contract, license of agreement conferring a right to occupy that room.’”

This new clause is intended to prevent the imposition of Council Tax individually on tenants of a room in a house with shared facilities, or in a licensed House of Multiple Occupancy.

New clause 41—Duty to provide sufficient resources to Combined Authorities and Combined County Authorities—

“(1) This section applies where the Government has committed funding to a Combined Authority or a Combined County Authority in order to deliver a specific project.

(2) The Secretary of State must provide commensurate financial resources to a Combined Authority or a Combined County Authority to enable the delivery of the project mentioned in subsection (1) as agreed in full.

(3) The Secretary of States must, by regulations, amend the value of this funding to reflect inflation.”

This new clause would commit the Government to fully funding combined authority and combined county authority projects they have committed to in the case that costs rise due to inflation.

New clause 45—Local authorities to be allowed to choose their own voting system—

“(1) The Secretary of State must by regulations provide that local authorities may choose the voting system used for local elections in their areas.

(2) When determining whether to seek to introduce a new voting system a local authority must have regard to the benefits of reinvigorating local democracy in its area.

(3) Regulations under this section must provide that local authorities may choose to elect councillors—

(a) by thirds, or

(b) on an all-out basis.

(4) Regulations under this section must provide that local authorities may choose to elect councillors using—

(a) first-past-the-post;

(b) alternative vote;

(c) supplementary vote;

(d) single transferable vote;

(e) the additional member system;

(f) any other system that may be prescribed in the regulations.

(5) Regulations under this section may make provision about—

(a) how a local authority may go about seeking to change its voting system,

(b) the decision-making process for such a change,

(c) consultation, and

(d) requirements relating to approval by the local electorate.”

This new clause would enable local authorities to choose what voting system they use for local elections.

New clause 46—Review into business rates system—

“(1) The Chancellor of the Exchequer must undertake a review of the business rates system.

(2) The review must consider the extent to which the business rates system—

(a) is achieving its objectives,

(b) is conducive to the achievement of the levelling-up and regeneration objectives of this Act.

(3) The review must consider whether alternatives of local business taxation would be more likely to achieve the objectives in subsections (2)(a) and (b).

(4) The review must in particular consider the effects of business rates and alternative local business taxation systems on—

(a) high streets, and

(b) rural areas.

(5) The review must consider the merits of devolving more control over local business taxation to local authorities.

(6) The Chancellor of the Exchequer must lay a report of the review before parliament before the end of the period of one year beginning with the day on which this Act is passed.”

This new clause would require the Secretary of State to review the business rates system.

New clause 70—Duties in connection with the European Framework Convention for the Protection of National Minorities—

“(1) The Cities and Local Government Devolution Act 2016 is amended in accordance with subsection (2).

(2) In section 16 (Power to transfer etc public authority functions to certain local authorities), after subsection (1) insert—

‘(1A) In deciding how and whether to exercise his power under section 16(1), the Secretary of State must have regard to the existence, within a local authority area, of a national minority as defined by the European Framework Convention for the Protection of National Minorities.’”

New clause 71—Extending level 3 devolution deals—

“(1) The Secretary of State must, by regulations, make provision for local authorities to be granted a Level 3 devolution deal, without the requirement for a directly-elected leader across the entire authority.

(2) When making regulations under subsection (1), the Secretary of State must have regard to the benefits of such a devolution arrangement given any existence, within a local authority area, of a national minority, as defined by the European Framework Convention for the Protection of National Minorities.”

New clause 34—Review of compulsory purchase powers—

“(1) The Secretary of State must undertake a review of whether the powers of compulsory purchase available to—

(a) local authorities, and

(b) the Secretary of State

are adequate to meet the objectives of this Act.

(2) In undertaking the review the Secretary of State must, in particular, consider—

(a) whether existing statutory time limits for compulsory purchase action are appropriate,

(b) other means of accelerating compulsory purchase action with particular reference to properties to which subsection (3) applies, and

(c) the adequacy of compulsory purchase powers in relation to properties to which subsection (3) applies.

(3) This subsection applies to—

(a) properties that have been unoccupied for a prolonged period (with reference to the vacancy condition in section 152), and

(b) buildings of local public importance such as hotels and high street properties.”

This new clause would require the Government to review powers of compulsory purchase and whether they are adequate to meet its levelling-up and regeneration objectives.

New clause 74—Commencement of Section 81 of the Police Crime Sentencing and Courts Act—

“The Secretary of State must, by regulations, bring into force the provisions in Section 81 of the Police, Crime, Sentencing and Courts Act 2022 no later than 31st December 2022”

New clause 75—Review of the effectiveness of the Housing First Scheme—

(1) The Secretary of State must establish an annual review of His Majesty’s Government’s progress on reducing homelessness.

(2) The review must include an assessment of—

(a) whether the Housing First scheme is achieving its objectives,

(b) the support provided to local authorities to meet their homelessness duties,

(c) the merits of ensuring that local authorities have at least one provider of the Housing First model, and

(d) the Government’s progress towards ending rough sleeping.

(3) The Secretary of State must prepare reports on these reviews in accordance with this section.

(4) The first report under subsection (3) must be laid before each House of Parliament before the end of a period of one year beginning on the day when this Act was passed.

(5) After a report has been laid before Parliament under subsection (4), the Secretary of State must publish it as soon as is reasonably practicable.”

New clause 76—Publication of the Consultation on the Vagrancy Act—

“(1) The Secretary of State must, before the end of 2022, publish a report setting out the results of the Review of the Vagrancy Act: consultation on effective replacement.

(2) he report under subsection (1) must, in particular, set out—

(a) how to replace the offences in the Vagrancy Act which prohibit begging and rough sleeping in an appropriate way that prioritises getting individuals into support, and

(b) the Government’s legislative plan to support these changes.

(3) The Secretary of State must lay a copy of the report in subsection (1) before both Houses of Parliament.”

New clause 82—Standards Board for England—

“(1) There is to be a body corporate known as the Standards Board for England (“the Standards Board”).

(2) The Standards Board is to consist of not less than three members appointed by the Secretary of State.

(3) In exercising its functions the Standards Board must have regard to the need to promote and maintain high standards of conduct by members and co-opted members of local authorities in England.

(4) The Secretary of State must by regulations make further provision about the Standards Board.

(5) Regulations under this section must provide for—

(a) a code of conduct of behaviour for members and co-opted members of local authorities in England,

(b) the making of complaints to the Standards Board a member or co-opted member has failed to comply with that code of conduct,

(c) the independent handling of such complaints in the first instance by the Standards Board,

(d) the functions of ethical standards officers,

(e) investigations and reports by such officers,

(f) the role of monitoring officers of local authorities in such complaints,

(g) the referral of cases to the adjudication panel for England for determination,

(h) about independent determination by the adjudication panel its issuing of sanctions,

(i) appeal by the complainant to the Local Government and Social Care Ombudsman,

(j) appeal by the member or co-opted member subject to the complaint to the Local Government and Social Care Ombudsman, and

(k) the governance of the Standards Board.

(6) In making regulations under this section the Secretary of State must have regard to the content of Chapter II (investigations etc: England) of Part III (conduct of local government members and employees) of the Local Government Act 2000, prior to the repeal of that Chapter.

(7) The Standards Board—

(a) must appoint employees known as ethical standards officers,

(b) may issue guidance to local authorities in England on matters relating to the conduct of members and co-opted members of such authorities,

(c) may issue guidance to local authorities in England in relation to the qualifications or experience which monitoring officers should possess, and

(d) may arrange for any such guidance to be made public.”

This new clause seeks to reinstate the Standards Board for England, which was abolished by the Localism Act 2011, but with the removal of referral to standards committees and the addition of appeal to the Local Government Ombudsman.

New clause 84—Levelling-up mission: adult literacy—

“(1) Each statement of levelling-up missions must include an objective relating to reducing geographical disparities in adult literacy.

(2) In pursuance of the objective in subsection (1), the Secretary of State must, during each mission period, review adult literacy levels in the UK, to inform measures with the purpose of reducing geographical disparities in adult literacy and eradicating illiteracy in adults.

(3) The findings of any review under this section must be published in a report, which must be laid before Parliament.

(4) When a report under this section is laid before Parliament, the government must also publish a strategy setting out steps it intends to take to improve levels of adult literacy and eradicate illiteracy in the UK.”

This new clause would require the government to include the reducing of geographical disparities in adult literacy as one of its levelling up missions, and it would require them, during each mission period, to review levels of adult literacy in the UK, publish the findings of that review and set out a strategy to improve levels of adult literacy and eradicate illiteracy in the UK.

Amendment 8, in clause 1, page 1, line 14, at end insert—

“(c) the independent body that His Majesty’s Government proposes to use to evaluate progress in delivering those levelling-up missions (‘the independent evaluating body’).”

This amendment would place a responsibility on the Government to commission an independent body to scrutinise their progress against levelling-up missions.

Amendment 9, page 1, line 14, at end insert—

“(c) the resources made available by His Majesty’s Government to nations, regions, sub-regions and local areas in order to level-up.”

This amendment would place a responsibility on the Government to publish the resources made available to communities in order to level-up.

Amendment 71, page 1, line 14, at end insert—

“(c) details of how His Majesty’s Government will ensure that the levelling-up missions are aligned with the United Nations Sustainable Development Goal to end hunger and ensure access by all people, in particular the poor and people in vulnerable situations, including infants, to safe, nutritious and sufficient food all year round.”

This amendment would require that levelling-up missions align with the United Nations Sustainable Development Goal to end hunger and ensure access by all people to safe and nutritious food.

Amendment 69, page 1, line 14, at end insert—

“(2A) The first statement of levelling-up missions must include a requirement that by 2030 the number of people successfully completing high-quality skills training will have significantly increased in every area of the UK.

(2B) For the purposes of subsection (2A), ‘high-quality skills training’ must include training for the purpose of proactively supporting workers in high-carbon industries wishing to transition to careers in the green energy sector, with cross-sector recognition of skills and regardless of their current contract status.”

Amendment 70, page 1, line 14, at end insert—

“(2A) The first statement of levelling-up missions must include a mission to expand public access to waterways, woodlands, Green Belt and grasslands and reduce geographical inequalities in access to open access land.

(2B) In this section, “waterways” includes any river, stream, lake, pond, canal or other waterway physically capable of navigation, and any such river banks or land adjacent as necessary for the act of navigation and for other purposes incidental to navigation or to bathe.

(2C) A levelling-up mission under this section must be accompanied by a statement of the Government’s legislative plan to support the mission, including proposals to amend the Countryside and Rights of Way Act 2000.”

Amendment 72, page 2, line 3, at end insert—

“(3A) The mission progress methodology and metrics must include the following indicators—

(a) prevalence of undernourishment in the population, and

(b) prevalence of moderate or severe food insecurity in the population, based on the Food Insecurity Experience Scale (FIES).”

This amendment would require that the mission progress methodology and metrics include the prevalence of under-nourishment and the prevalence of food insecurity in the population.

Amendment 10, page 2, line 6, at end insert—

“(4A) A statement of levelling-up missions must be accompanied by an action plan which sets out details of how His Majesty’s Government intends to deliver these missions by the target date.”

This amendment would require the Government to publish an action plan alongside a statement of levelling-up missions which sets out how they will deliver the missions.

Amendment 11, in clause 2, page 3, line 7, leave out subsections (4) and (5).

This amendment would remove the provision allowing the Secretary of State to discontinue a levelling-up mission.

Amendment 12, in clause 3, page 3, line 28, leave out “120” and insert “30”.

This amendment would reduce the period of time by which a report under section 2 must be laid before each House of Parliament to 30 days.

Amendment 13, page 3, line 32, leave out “120” and insert “30”.

See explanatory statement to Amendment 12

Amendment 14, page 4, line 2, leave out clause 4.

This amendment would remove the provision allowing a Minister to make changes to mission progress methodology and metrics or target dates.

Amendment 64, in clause 4, page 4, line 18, leave out from “which” to end of line 19 and insert—

“both conditions in subsection (4) have been met.

(4) The conditions are that—

(a) the House of Commons,

(b) the House of Lords

have passed a Motion in the form in subsection (5).

(5) The form of the Motion is—

That this House approves the revisions to the levelling-up mission progress methodology and metrics or target date made under section 4 of the Levelling-up and Regeneration Act 2022 and laid before Parliament on [date].”

Amendment 15, in clause 5, page 5, line 18, at end insert—

“(ca) state whether the independent evaluating body considers that pursuing the levelling-up missions in that statement is effectively contributing to the reduction of geographical disparities in the United Kingdom,”

This amendment would require the report on a review of statements of levelling-up missions to include the assessment of the independent evaluating body.

Amendment 16, page 6, line 5, leave out from “which” to end of subsection (11) and insert—

“both conditions in subsection (12) have been met.

(12) The conditions are that—

(a) the House of Commons, and

(b) the House of Lords

has passed a Motion of the form in subsection (13).

(13) The form of the Motion is—

That this House approves the revisions to the statement of levelling-up missions made under section 5 of the Levelling-up and Regeneration Act 2022 and laid before Parliament on [date].”

This amendment would require both Houses of Parliament to approve revisions to the statement of levelling-up missions to be approved by both Houses of Parliament before they have effect.

Amendment 17, page 12, line 24, leave out clause 16.

Government amendments 29, 45 and 46.

Amendment 18, in clause 52, page 45, line 16, leave out “may” and insert—

“must, within 6 months of the day on which this Act is passed,”.

This amendment would require the Secretary of State to produce guidance on the establishment and operation of CCAs within 6 months of this Act receiving Royal Assent.

Amendment 19, page 50, line 24, leave out clause 58.

This amendment would remove Clause 58, which allows an elected mayor to assume policing responsibilities without the consent of the combined authority.

Government amendments 47, 40 to 44, 1, 60, 51, 61 and 62.

[Dehenna Davison]

It is a pleasure to be here for the next stage of this vital Bill. My right hon. Friend the Secretary of State recently set out his guiding principles for the Bill: beauty, infrastructure, democracy, environment and neighbourhoods—or, for acronym fans, BIDEN. We want to ensure that people across the country have the opportunity to live and work in beautiful places, supported by the right infrastructure, with strong locally accountable leadership and with better access to an improved environment, all rooted in thriving neighbourhoods of which they can be proud. Regrettably, though, there are areas of the country that are long neglected and that will require a concerted effort from us all. We have to put an end to the shameful waste of potential that has held so many of our constituents and our country back for so long.

This is why the ambitions set out in the levelling up White Paper are so crucial. If we are going to achieve our ambitions, we have to be focused. That is why the first part of the Bill creates a self-renewing national focus on this endeavour, through the setting of and reporting on missions to level up. These missions, with their clear, measurable objectives, will drive the action needed to reduce geographic disparities. One such mission is our vision for devolution across England. This is why the Bill creates a new model for devolution: the combined county authority. It also improves existing models thought the combined authority and county deal models, making devolution easier to achieve, extend and deepen.

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

One of the disappointments with this Bill is that, although it extends the principle of combined authorities to county areas, it does not actually transfer any new powers to local government as a whole that are not currently available in some authorities. Could the Minister point out one place in the Bill where a new power that is currently not devolved to local government will be devolved after the Bill is passed?

[Dehenna Davison]

The Chair of the Select Committee is a passionate campaigner on these issues. He will know that the Government are incredibly keen on empowering local areas to take on their own devolution deals, and that is why we are in the process of negotiating a large number of deals, including trailblazer deals with Greater Manchester and with the West Midlands, which I know Members right across the House are incredibly passionate about. We are looking at new powers and new funding to ensure that those devolution deals deliver for local people.

We are making it easier to achieve, to extend and to deepen devolution. At the same time, the Bill is making it easier for local authorities to regenerate their areas by providing them with new and improved tools for that purpose, including a new locally led model for urban development corporations, changes to ensure that any former development corporation can have conferred on it the functions most useful to its purpose, and improvement to the compulsory system to remove barriers so that authorities can assemble land, including brownfield land.

[Mr Betts]

Often, when compulsory purchase powers are used by local authorities, the value of the site they are purchasing is enhanced because they are using those powers and the owner of the site gets a “hope value” addition to what they receive. Would the Minister consider ensuring that, where a CPO has been put in place, no extra value is generated for the owner because the CPO itself is operated or because it is part of a regeneration site as a whole?

[Dehenna Davison]

I am happy to discuss that with the hon. Member in further detail following the debate today. It is certainly something that we are exploring behind the scenes with a view to taking action at a later date.

We are also looking at introducing discretion for local authorities to increase council tax on second homes and long-term empty homes, together with innovative high street rental auctions to tackle the damage that the gradual erosion of high street occupancy can cause.

Hon. Members will recall that the Government have already made provision for the full repeal of the Vagrancy Act 1824. As the Secretary of State has said, the Vagrancy Act is outdated and has to go. This Bill was introduced initially with a placeholder clause, allowing for a replacement to the Act to be added. During the passage of the Bill, however, we have listened to the depth of feeling from Members across the House, and particularly from my hon. Friend the Member for Cities of London and Westminster (Nickie Aiken), who has campaigned passionately on this issue. After working with Members across the House and having reflected on the right approach to the replacement legislation, I have tabled amendments to remove the placeholder clause. I can commit to the House that the Government will not bring forward any amendments to the Bill on this subject. We will, though, be working with the Home Office to make sure that the police and others have the tools they need to protect communities and ensure that people feel safe.

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

I absolutely welcome the Government’s action on this. Does the Minister agree that the best way to deal with the street population is through proper outreach and not through criminalising their behaviour?

[Dehenna Davison]

I completely agree with that sentiment. Any new legislation that may be introduced at a future date will not be looking to criminalise anyone for just being homeless. That is a firm commitment that I can make here today. My hon. Friend is absolutely right. Let us look at the Government’s rough sleeping strategy as an example, and at the other ways we can outreach to ensure that those who find themselves homeless, often through no fault of their own, find the support they need to get back on their feet.

On vagrancy, my colleagues and I look forward to continuing to work with Members across the House on our goal of ending rough sleeping and ensuring that people in need receive appropriate support to help them move away from life on the streets for good.

Strengthening our communities also means strengthening local leadership. We all know from our constituencies that Whitehall, however well intentioned, cannot always understand a community as well as the local people who live and work within it, so our ambition is for local areas to determine their own futures, allowing local leaders to take charge and enable their communities to thrive. We therefore want to offer the option of a devolution deal with a directly elected leader to every part of England that wants one by 2030, creating clear local leadership and greater accountability for any new powers conferred on them.

Members will recall that the Bill puts in place a framework to achieve this by creating a new model of combined authority—a combined county authority—which is more suitable for areas outside urban centres. This means that areas and communities everywhere, not just in major cities, can benefit from bespoke devolution deals that work for them. Providing these opportunities for all communities across England will increase innovation and enhance local accountability. This in turn will lead to more co-ordinated decision making with greater flexibility over funding, all of which will empower areas to attract more inward investment.

My right hon. Friend the Secretary of State and I have been grateful for the support that our reforms have attracted in our discussions with hon. Members and local areas, and Members will be aware that our devolution negotiations and conversations are continuing at pace. In the summer, we announced new devolution deals with York and North Yorkshire, and with parts of the east midlands: Derby, Derbyshire, Nottingham and Nottinghamshire. There are more deals to be signed soon. Implementation of the east midlands deal is dependent on provisions in this Bill gaining Royal Assent and coming into effect, but they will of course be subject to statutory processes, including parliamentary approval of secondary legislation on creating new institutions with the devolved powers. The invaluable feedback from our discussions so far has allowed us to table three amendments today to put some matters beyond doubt.

[John Stevenson (Carlisle) (Con)]

The Minister is talking a lot about those areas where there is devolution already or where there is the potential for devolution, but what about those areas where there seems to be an absence of any discussions?

[Dehenna Davison]

As I say, we have discussions under way at the moment and we are looking ahead to which new devolution deals we can start exploring. I am certainly happy to work with my hon. Friend to see if this is something we can deliver in his local area in Cumbria, too.

Our first amendment relates to clause 16, which allows the conferral of local authority functions, including those of county councils, unitary councils and district councils, on to a combined county authority, or CCA.

[Richard Graham (Gloucester) (Con)]

I am grateful to the Minister for giving way, because this is of seminal importance to all second-tier councils around the country. I therefore welcome Government amendment 29. Can she confirm, for the avoidance of any doubt, that this means, as the explanatory statement suggests, that there is no question of the functions of a district council in a two-tier area being handled by a combined county authority and that, although it says

“a CCA may make provision”,

a CCA cannot make provision where there is a second-tier council?

[Dehenna Davison]

I can confirm that, and my hon. Friend pre-empts the next bit of my speech, which will hopefully provide some reassurance.

Clause 16 is essential to enable CCAs to be conferred with, for example, the economic development and regeneration functions of a council so that it can deliver them over a wider area, thus driving growth. Although it was never the Government’s intention, we have heard concerns from colleagues on both sides of the House, as well as from local authorities and the District Councils Network, that the clause could be used for the purpose of upward devolution. So there can be absolutely no doubt, we are explicitly precluding the conferral of two-tier district council functions on to a combined county authority. This amendment reflects the Government’s commitment that devolution legislation will not be used to reallocate functions between tiers of local government.

Government amendment 29 will still allow for combined county authorities to exercise functions with district councils concurrently or jointly, facilitating joint working on important issues where there is a local wish to do so. I hope that addresses the concern embodied in amendment 17, tabled in the name of the hon. Member for Wigan (Lisa Nandy), who is not currently in the Chamber.

Our second amendment provides for the effective co-ordination of highways infrastructure, to enable key route networks to operate effectively. Improving key route networks across towns and cities is a Government priority, and we want to facilitate the improvement of transport links as much as possible. The co-ordination of transport across the area of a combined authority or combined county authority is a tool that local leaders across the country have told us is valuable. We therefore propose an amendment to meet the commitment in the levelling-up White Paper to provide a new power of direction for Mayors and combined county authorities, to increase Mayors’ control over key route networks. This will enable them to better co-ordinate the delivery of highways infrastructure, which is needed for effective key route networks across the whole of their authority area.

Our third amendment is a small amendment to improve the partnership between police and crime commissioners and local leaders by clarifying legislation to ensure that PCCs can participate in local government committee meetings. Stronger partnership working between local leaders is central to the Government’s priority of ensuring that local voices are heard on important issues and that decision making is informed by a variety of perspectives in order to deliver our ambitions.

These three amendments add to the strong foundations the Bill already provides for devolution, by going further to solve the specific issues that areas face. In that spirit, I can announce that we will shortly be consulting on how houses in multiple occupation are valued for council tax purposes. The consultation, to be launched by January, will look at situations where individual tenants can, in certain circumstances, be landed with their own council tax bill and will consider whether the valuation process needs to change. Our clear intention is for HMOs to be classed as single dwellings, other than in exceptional circumstances.

[Mrs Natalie Elphicke (Dover) (Con)]

It is important to look at the balance of council tax attributions for HMOs, but will the Minister confirm that any local authority that has such HMOs will have its council tax settlements adjusted, should a decision result in it making a net loss in such a situation?

[Dehenna Davison]

We will be consulting on this as a matter of urgency, and I am happy to take this away and to work with my hon. Friend to make sure we find a settled solution that works for local authorities.

If regulation is required, the measure will allow that regulation to be in place before the Bill receives Royal Assent. I thank my hon. Friend the Member for Gosport (Dame Caroline Dinenage) and my right hon. Friend the Member for Portsmouth North (Penny Mordaunt) for their campaign highlighting this issue, which I know affects other MPs. The Secretary of State and I look forward to meeting their local businessman, Mr Brewer, in the coming days.

Separately, I can confirm that, during the Bill’s passage in the other place, we intend to table amendments addressing circumstances in which authorities have to pay hope value when they compulsorily purchase land in an effort to regenerate their area.

Finally, we have also tabled amendments to make minor corrections and clarifications in support of high street rental auctions and compulsory purchase reforms. These amendments will ensure the policy objectives of these measures can be achieved in full.

[Richard Graham]

I am grateful to the Minister for giving way a second time. I thank her and the Department for Levelling Up, Housing and Communities team for listening so carefully to the concerns of Members on both sides of the House. What she says about new clause 7, tabled by my hon. Friend the Member for Gosport (Dame Caroline Dinenage), is incredibly reassuring for people who are renting in HMOs. The ability to fine tune legislation is so precious.

[Dehenna Davison]

I am grateful to my hon. Friend for his incredibly kind words.

I thank Members on both sides of the House for the constructive way in which they have engaged with this important Bill. I look forward to hearing their contributions to today’s debate, and I commend our amendments to the House.

[Alex Norris (Nottingham North) (Lab/Co-op)]

It is a pleasure to speak for the Opposition in these proceedings.

The Public Bill Committee had 27 sittings over four months. The Government enjoyed it so much that they sent seven Ministers and three Whips to share the joy of line-by-line scrutiny. Which was my favourite? How could I choose between those 27 glorious sittings? They were very good debates, as the Minister said.

When it comes to levelling up, we have been clear from the outset that we feel the Bill is a missed opportunity. It ought to have been a chance for the Government finally to set out what their levelling-up agenda really is and what it means for the country. It was a chance to turn the rhetoric and all the press releases into reality. Instead of translating three years of promises into genuinely transformative change, we do not feel the Bill takes as much further forward. After the White Paper and now this Bill, we are still searching for the big, bold change for which the country is crying out and that the Government promised. The Bill has squandered that opportunity, and it seems those premises will be broken.

Levelling up is supposedly the defining mission of this Government but, after all the talk and all the promises, all they could muster was bolting a few clauses on to the front of a planning Bill. It serves no one to pretend that that is not the reality. Where is the plan to tackle entrenched regional inequalities? Where is the plan to unleash the wasted potential of our nations and regions? And where is the plan to get power out of Whitehall and into our towns, villages and communities?

Part 1 of the Bill establishes the levelling-up missions and the rules for reporting progress made against them. The missions are an area of consensus. Who in this House does not want to see a reduction in the disparities in healthy life expectancy, regional investment and educational outcomes? The problem is that, although the Government set out their supposed policy programme to deliver on these missions in their White Paper, it is in reality a mishmash of activity, much of which is already happening. We seek to improve this with amendment 10, as the missions should be accompanied by a full action plan setting out the activity taking place and how it will contribute to delivering the missions. I would hope that the Government already have such action plans, if levelling up really is such a totemic priority, but I fear they do not, because levelling up is not a priority.

--- Later in debate ---

[Dehenna Davison]

I thank right hon. and hon. Members for their contributions, and I put on record again my thanks to all the Members who served in Committee during the somewhat lengthy consideration of the Bill. I will endeavour to respond to the points that have arisen today, but before I do, I re-emphasise the importance that the Government place on the three interconnected themes from our debate: devolution, regeneration and levelling up. Local power exercised accountably is the only way that we will extend opportunity throughout our country. Too often, Governments have fallen into the trap of thinking that controlling more will make local areas more effective, but the lessons of the past 70 years are clear: that approach does not work and we must trust local areas with the tools to build their futures.

Let me turn to some of the individual matters that Members raised. My right hon. Friend the Member for Camborne and Redruth (George Eustice) is not yet back in his place, but I was grateful for his incredibly passionate contribution and his rousing speech about the wonderful, unique qualities of Cornwall. I look forward to visiting Cornwall soon and to working with him and other Cornwall colleagues on progressing a deal that works for the people of Cornwall.

My right hon. Friend spoke to amendment 70, on which I point him and other concerned Members to clause 68, which would amend the statutory test so that the Secretary of State has to consider

“the economic, social and environmental well-being of some or all of the people who live or work”

in an area. That means that the impacts of devolution on an area’s community, including those identifying as belonging to a national minority, such as the Cornish, would be duly considered under social wellbeing when deciding whether the test is met. Hopefully, that provides some reassurance.

My right hon. Friend also spoke about new clause 71, on whether the framework for a tier 3 deal is accessible without a Mayor. We in the Government are committed to that framework. We believe that directly elected Mayors with a clear path of accountability and a convening power to make change happen is really important, but the key point is that there will be no imposition from Government to have a Mayor. It is for local areas to decide what tier of deal they want to access. If they do not want to access a tier 3 deal and impose a Mayor, clearly, that option is available to them. Also, if they wish to, the framework allows them to deepen devolution later at their own pace. The Government are not imposing these measures. It is for local areas to decide what will work best for them in the framework that we have set out.

My hon. Friend the Member for Leigh (James Grundy) is a great and passionate advocate for his constituents and his constituency. I heard loud and clear his point about Leigh station and I will raise that with colleagues at the Department for Transport. He raised the point about how a one-size-fits-all approach does not necessarily always work. That is why it is so important that we negotiate deals on a local basis, so that every deal we have is negotiated with local authorities and other local stakeholders to ensure that it will work for the local area.

My hon. Friend raised a good point about engagement with Members of Parliament. Although I am relatively new to my role, I certainly want to endeavour to do that better as we progress devolution, either in existing deals or when we look at new devolution deals in the future.

I am incredibly grateful to my hon. Friend the Member for Carlisle (John Stevenson) for his support on devolution and on the importance of strong, accountable local leadership. I am pleased to see his gung-ho passion for rolling out Mayors across the country, but as my hon. Friend the Member for Leigh says, not every area wants a Mayor. I do not believe that we should be imposing Mayors without local consent, but I agree with my hon. Friend the Member for Carlisle that we do not want any areas being left behind. I am happy to engage with him and with the Northern Research Group on the question of how best to further the devolution agenda in his region and across England.

My hon. Friend the Member for Mansfield (Ben Bradley) made the crucial point that timing is vital. We need the Bill to get Royal Assent in a timely fashion to ensure that some of the devolution deals we have agreed get over the line in time for the elections in 2024. I know that my hon. Friend recognises the incredible opportunities that a devolution deal can bring to his local residents. He spoke about the need for simpler funding; the Department is exploring the issue and will publish a funding simplification strategy in due course.

[Margaret Greenwood]

I am not sure whether the Minister was in the Chamber for the remarks that the hon. Member for Mansfield (Ben Bradley) made about new clause 84, which would require the Government to make

“reducing geographical disparities in adult literacy”

one of their missions, and to set out a plan

“to improve levels of adult literacy and eradicate illiteracy”.

The hon. Member seems to think that the Bill makes provision for that. It does not. Does the Minister agree that addressing adult literacy is a core issue if we are to get the very best out of everybody and give everybody the opportunities they need?

[Dehenna Davison]

The hon. Member must have read my mind, because hers is next on my list of points to address. I am grateful for her passionate contribution on adult literacy. We all agree in this House that education is vital to levelling up, but the Bill is designed to provide a framework for the formation of missions rather than to set out the missions themselves. She will have seen in the White Paper some of the missions that we have published, which refer to educational attainment. I also point her to the Government’s work in other areas, such as funding courses for adults who do not have a level 2 English or maths qualification so that they can get those skills.

The hon. Member for Hemsworth (Jon Trickett) raised several issues relating to social mobility. I was most struck by his point about inter-village transport; I face that issue in my constituency, so I can very much relate to it. Some of the devolution deals that we have negotiated and are looking to negotiate will mean more transport powers being conveyed to local areas and Mayors. That provides an opportunity for a rethink of how local transport is operated. As we spread more devolution deals around the country, that opportunity will be brought to more local areas. The hon. Member’s point has been heard loud and clear.

[Jon Trickett]

The Minister is making an interesting speech. I hope in due course she will come to the question that I raised about powers for parish and town councils.

[Dehenna Davison]

I had not planned to do so, because of the breadth of contributions that we have had today, but I am happy to write to the hon. Member on that point after the debate.

The hon. Member for South Shields (Mrs Lewell-Buck) spoke to amendments 71 and 72. She is incredibly passionate about this important matter, as she has demonstrated not only today but in Committee and in other contributions. I go back to the point that I made to the hon. Member for Wirral West (Margaret Greenwood): the Bill is designed to set out not the missions themselves, but the framework for them to exist. That is why we will not enshrine any particular missions in the Bill. [Interruption.] The hon. Member for South Shields and I had the same debate in Committee; I see her shaking her head, but I do not think that she is surprised by my response.

Let me very briefly address a point that the shadow Minister, the hon. Member for Nottingham North (Alex Norris), and the SNP spokesperson, the hon. Member for North Ayrshire and Arran (Patricia Gibson), made about the levelling-up missions. They spoke about removing the ability to amend the methodology and the matrices. I am concerned about that, not because it is some kind of cynical aim, as has been suggested, but because data will be incredibly important in assessing our success in addressing the levelling-up missions. As we get new data sources, new datasets and new ways of presenting the data, it is important that we have the flexibility to access and use the data to its maximum potential. That is why I do not agree with amendment 14.

[Patricia Gibson]

The Minister says that flexibility is important, so can she explain what the Government will do about the first successful bids, which are now falling short because of inflationary pressures on labour and materials?

[Dehenna Davison]

The hon. Member will be pleased to know that I have a note to return to that in a moment.

My right hon. Friend the Member for Chipping Barnet (Theresa Villiers) and my hon. Friend the Member for Isle of Wight (Bob Seely) raised some important points. We will come to many of their amendments on the second day of Report, when they will have an opportunity to speak on them in more detail. That will be coming soon. Both Members highlighted the passion around high streets, which, as we all know across the House, are vital to the heart and soul of any community. I am grateful to them for raising new clause 34 on compulsory purchase orders. The measures already in the Bill put it beyond doubt that local authorities have the power to use compulsory purchase for regeneration processes, but we are modernising the process to make it faster and more efficient.

As I announced in Committee, we are going even further by asking the Law Commission to undertake a review and consolidation of the law on compulsory purchase and compensation, to make it more accessible and easier to understand. As part of that work, the Law Commission will review existing CPO enabling powers to ensure that they are fit for purpose, and will make recommendations where appropriate. I do not believe that the new clause is necessary; however, I put on the record my gratitude to both Members for the incredibly constructive way that they have engaged on not just this part of the Bill but all of it, particularly regarding planning and housing matters. My hon. Friend the Member for Isle of Wight said that I promised a visit. I am very much looking forward to visiting the Isle of Wight in due course.

[Mr Betts]

On the CPO powers, the Law Commission will not look at the valuations. Who will do that review work? Also, could the Minister set out very simply how the new arrangements will be simpler and quicker for local authorities to organise?

[Dehenna Davison]

One reason that we have asked the Law Commission to undertake the review is to ensure that we deliver in the most appropriate way, but I am happy to follow up separately with the hon. Member on hope value, because it is something that we will come to in the future.

The hon. Member for Westmorland and Lonsdale (Tim Farron) and I had a great time in Committee during the few days that I was there in my role as Minister. It was always incredibly good natured, and I thank him for that. He spoke on new clause 46, as did the hon. Member for North Shropshire (Helen Morgan), which is on business rates reform. As both hon. Members are no doubt aware, the Government recently conducted a business rates review, and the report was published at the time of the 2021 autumn Budget. A package of reforms announced then was worth £7 billion over five years. In the autumn statement incredibly recently, the Government went even further and announced a broad range of business rates measures worth an estimated additional £13.6 billion over the next five years, including freezing the multiplier. The Chancellor of the Exchequer also announced the extension of the retail, hospitality and leisure relief scheme, and a transitional relief scheme for the 2023 valuation.

[Helen Morgan]

I appreciate the points that the Minister makes, but they are tinkering around the edges of the existing system. We are asking for root and branch review of how business rates are levied.

[Dehenna Davison]

While I understand the intention behind the new clause, we consider it unnecessary on the basis that a review has been concluded only recently, and we have put in place an incredibly robust support package.

[Tim Farron]

I am grateful to the Minister for what she is saying. To add to what my hon. Friend the Member for North Shropshire said, there may be much to commend that particular part of the autumn statement, but is the very package not an admission that the system is broken? Tinkering on the edges will not help. Surely it needs full reform and replacement if we are to support our town and village centres.

[Dehenna Davison]

I am grateful to the hon. Member, and indeed all colleagues who have engaged with us on business rates reform. I will not go over arguments that I have already made. We will not accept the new clause, but I hope that hon. Members recognise that we are very much committed to ensuring that business rates are not an impediment to businesses investing in and residing within our high streets.

The hon. Member for Westmorland and Lonsdale also spoke to new clause 45 on electoral system reform. It was no surprise to hear the Lib Dems talking about electoral reform, and I do not want to rehash debates from Committee. I know that he and his party are passionate about this subject, but he will not be surprised to learn that the Government will not accept the new clause.

Turning to my hon. Friend the Member for Cities of London and Westminster (Nickie Aiken), I want to put on record my sincere praise for her campaigning on the repeal of the Vagrancy Act. She is so passionate on this issue and I am grateful to her for her positive engagement. I look forward to working with her as this progresses. On her new clause 4, I have to admit that I would not want to make a commitment today, but I am keen to work with her to understand the issue of local voting rights in her constituency more fully. I would love to get a meeting in with her in due course to see whether this is something that we can review.

The hon. Member for Brighton, Pavilion (Caroline Lucas) made an impassioned case on an issue on which I know she is very passionate. It was great to find agreement with her, as we both believe in devolving power to a local level to tackle local challenges. In the White Paper we set out a skills mission which set a target to increase the number of people completing high-quality skills training in every area of the UK by 200,000, with 80,000 more people competing skills training in the lowest skilled areas of the UK. The White Paper also highlighted the importance of the Government’s net zero target in helping to achieve that mission. The Government’s net zero strategy also makes a commitment to ensuring that the skills system is incentivised and equipped to deliver the skills necessary for the transition to net zero, as well as a commitment to growing post-16 training programmes such as green skills boot camps, apprenticeships and T-Levels. We will not be accepting the hon. Member’s amendment today, but I hope she recognises that there is a commitment from the Government, through the White Paper and other strategies, to ensure that we hit those net zero targets.

I want to make two quick final points. First, I want to say how grateful I am to my hon. Friend the Member for Gosport (Dame Caroline Dinenage) for her positive engagement on the issue of council tax for houses of multiple occupancy. We have reached a good position and I look forward to working with her and her constituent Mr Brewer throughout the consultation and beyond to ensure that we get it right.

Finally, the hon. Member for Sheffield South East (Mr Betts) raised points on the standards board and compulsory purchase orders, but I want to latch on to something he said about his belief in devolution—something that he and we in the Government absolutely share. He talked about brownfield land, and he will know about the brownfield land release fund, which has been so crucial in helping to support and regenerate brownfield areas. I would be happy to engage with him and I look forward to working with him and the Committee in my wider ministerial role.

In closing, I hope that hon. Members can see from the amendments that the Government have tabled today that we have listened to the concerns that have been raised since the Bill was introduced and that we are determined that the Bill will make a tangible difference in communities up and down the country.

Question put and agreed to.

New clause 61 accordingly read a Second time, and added to the Bill.



New Clause 62

Functions in respect of key route network roads

(1) The Local Democracy, Economic Development and Construction Act 2009 is amended as follows.

(2) In section 104, in subsection (10), for “An” substitute “Except as provided for by section 107ZA(7), an”.

(3) In section 107D, in subsection (9), for “An” substitute “Except as provided for by section 107ZA(7), an”.

(4) After section 107 insert—

“Combined authorities: key route network roads

107ZA Designation of key route network roads

(1) A combined authority may designate a highway or proposed highway in its area as a key route network road, or remove its designation as a key route network road, with the consent of—

(a) each constituent council in whose area the highway or proposed highway is, and

(b) in the case of a mayoral combined authority, the mayor.

(2) The Secretary of State may designate a highway or proposed highway in the area of a combined authority as a key route network road, or remove its designation as a key route network road, if requested to do so by—

(a) the combined authority,

(b) the mayor (if any) of the combined authority, or

(c) a constituent council.

(3) A designation or removal under this section must be in writing and must state when it comes into effect.

(4) The Secretary of State must send a copy of a designation or removal under subsection (2) to the combined authority in question at least 7 days before the date on which it comes into effect.

(5) A combined authority must publish each designation or removal under this section of a key route network road within its area before the date on which it comes into effect.

(6) A combined authority that has key route network roads in its area must keep a list or map (or both) accessible to the public showing those roads.

(7) The requirements in section 104(10) and section 107D(9)(a) do not apply to provision under section 104(1)(d) and section 107D(1) contained in the same instrument so far as that provision—

(a) confers a power of direction on an existing mayoral combined authority regarding the exercise of an eligible power in respect of key route network roads in the area of that combined authority,

(b) provides for that power of direction to be exercisable only by the mayor of the combined authority, and

(c) is made with the consent of the mayor after the mayor has consulted the constituent councils.

(8) When a mayor consents under subsection (7)(c), the mayor must give the Secretary of State—

(a) a statement by the mayor that all of the constituent councils agree to the making of the order, or

(b) if the mayor is unable to make that statement, the reasons why the mayor considers the order should be made even though not all of the constituent councils agree to it being made.

(9) In this section—

“constituent council” has the meaning given in section 104(11);

“eligible power” has the meaning given by section 88(2) of the Local Transport Act 2008;

“key route network road” means a highway or proposed highway designated for the time being under this section as a key route network road;

“proposed highway” means land on which, in accordance with plans made by a highway authority, that authority are for the time being constructing or intending to construct a highway shown in the plans.””—(Dehenna Davison.)

This new clause provides for designation of “key route network roads” in combined authorities and makes provision about consent requirements for orders that both confer a power of direction concerning such roads and make the power exercisable only by the mayor. It will be inserted after clause 58.

Brought up, read the First and Second time, and added to the Bill.

New Clause 65

Participation of police and crime commissioners at certain local authority committees

In section 102(9) of the Local Government Act 1972 (appointment of committees), for “to which the commissioner is appointed in accordance with this section”, substitute “described in subsection (6)”.”—(Dehenna Davison.)

This new clause makes clear that the restriction in section 102(9) of the Local Government Act 1972 applies only to participation at meetings of the committees described in section 102(6) of that Act. The new clause will be inserted after clause 68.

Brought up, read the First and Second time, and added to the Bill.

New Clause 41

Duty to provide sufficient resources to Combined Authorities and Combined County Authorities

“(1) This section applies where the Government has committed funding to a Combined Authority or a Combined County Authority in order to deliver a specific project.

(2) The Secretary of State must provide commensurate financial resources to a Combined Authority or a Combined County Authority to enable the delivery of the project mentioned in subsection (1) as agreed in full.

(3) The Secretary of States must, by regulations, amend the value of this funding to reflect inflation.”—(Alex Norris.)

This new clause would commit the Government to fully funding combined authority and combined county authority projects they have committed to in the case that costs rise due to inflation.

Brought up, and read the First time.

Question put, That the clause be read a Second time.

Levelling-up and Regeneration Bill

Dehenna Davison Excerpts

Consideration of Lords amendments
Tuesday 17th October 2023 Commons Chamber

[Rachel Maclean]

I will give way shortly.

We have committed to resolving a related anomaly by reinstating a devolved regulation-making function for the Scottish Government on Electricity Act 1989 consents. That was lost following the repeal of the European Communities Act 1972. Our Governments will work together to transfer functions so that powers lost in the repeal of that Act can be reinstated, using existing processes under the Scotland Act 1998.

Since the Bill left this House, the Government have made a number of amendments to improve it. For example, we have addressed the issue of the payment of compulsory purchase hope value compensation by removing hope value from certain types of schemes where there is justification in the public interest. Part 11 of the Bill has been refined in response to concerns raised by the House about the need to specify the purposes for which the new information-gathering powers may be used. To bolster the Bill’s benefits for the environment, we have reduced opportunities for incentives for site clearance before development, just as we heard from my right hon. Friend the Member for Epsom and Ewell (Chris Grayling), and included a clear requirement for plan makers to take into account the content of local nature recovery strategies.

I turn to the changes added by peers in the other place. Part 1 of the Bill provides the foundations to address entrenched geographic disparities across the UK. We have heard calls to be clearer on the third round of the levelling-up fund and tabled an amendment that adds a duty to lay a statement before each House of Parliament within three months of Royal Assent about the allocation of levelling-up fund round 3. Our views differ from those in the other place. We do not think that there is any connection between that further clarity on the levelling-up fund and the publication of the statement of levelling-up missions. Therefore, we do not think it is necessary to bring forward the laying date of the statement of levelling-up missions as proposed in Lords amendment 1.

We have been clear that the first statement of levelling-up missions will contain the missions from the levelling up White Paper. Missions may need to evolve over time and, if the detail of missions appears in the Bill, the process to adjust them in the future will become unhelpfully rigid and time-consuming. Therefore, in response to Lords amendments 2 and 4, seeking missions on child poverty and health disparities, the Government have tabled an amendment that requires the Government to consider both economic and social outcomes in deciding their levelling-up missions. That means that we retain that vital flexibility for future Governments to set missions according to the most important pressing issues of the day, while recognising that social outcomes such as child poverty and health inequalities are essential factors when deciding missions.

We are not able to accept Lords amendment 3, which would define criteria for assessing the success of levelling up, because those criteria will inevitably change as the data we have evolves. However, given the strength of feeling, I am pleased to announce that the Government can commit to publishing an analysis of geographical disparities alongside the first statement of missions. Linked to that, there have been calls for more specific reporting on levelling up and rural proofing in Lords amendment 6. We strongly agree that levelling up must work for all types of communities, not just those in urban centres.

[Dehenna Davison (Bishop Auckland) (Con)]

Will my hon. Friend give way on that point?

[Rachel Maclean]

I will just finish this remark, and I will certainly give way to my former ministerial colleague.

The Department for Environment, Food, and Rural Affairs already publishes an annual rural proofing report, which reflects the Government’s consideration of rural challenges across policymaking.

[Dehenna Davison]

As someone proud to represent a predominantly rural community, does my hon. Friend agree that one of the best ways to level up in rural areas is by ensuring that those areas get strong devolution deals with strong local leadership?

[Madam Deputy Speaker (Dame Rosie Winterton)]

Order. Just a little reminder that if Members intervene on a speaker, it is customary to stay until the end of their speech.