Oral Answers to Questions

Deirdre Costigan Excerpts

Monday 20th January 2025 Commons Chamber

[Angela Rayner]

The hon. Gentleman highlights an issue across the board: we do not have decent homes standards. We want to introduce them in not just the social rented sector but the private rented sector. We have seen far too many situations where tenants are too frightened to come forward with mould, damp and health issues in their properties. We have to ensure that those standards are upheld. It does not matter who it is or where it is; people should have safe, secure homes.

[Deirdre Costigan (Ealing Southall) (Lab)]

10. What steps she has taken with Cabinet colleagues to increase the supply of affordable housing.

[The Secretary of State for Housing, Communities and Local Government (Angela Rayner)]

Our plan for change sets out that the whole of the Government are committed to the biggest increase in social and affordable housing in a generation. The previous Government failed to take social and in particular council housing seriously. I am determined to put right that wrong. We have already taken decisive steps, including an injection of £500 million into the affordable homes programme, our consultation on the rent settlement and reforms to right to buy. We will set out more details in the spending review.

[Deirdre Costigan]

After 14 years of Conservative Government, Ealing council has thousands of families waiting for a council home and has an affordable housing programme that it does not have the money to deliver. A report from Southwark council released on Sunday found that 71% of councils will have to delay or cancel house building projects. Will the Secretary of State look at ways to finally make local councils’ housing budgets sustainable so that we can build the affordable homes that my constituents in Ealing Southall desperately need?

[Angela Rayner]

My hon. Friend raises an important point. Since taking office, we have set out a series of measures to support councils to increase their capacity, confidence and motivation to invest in new homes. We are providing £450 million to councils to house some of the most vulnerable in society through the local authority housing fund, as well as injecting an additional £500 million into the affordable homes programme to deliver 5,000 new homes. We are helping councils borrow from the Public Works Loan Board at a reduced cost until the end of 2025-26.

Non-Domestic Rating (Multipliers and Private Schools) Bill

Deirdre Costigan Excerpts

Report stage
Wednesday 15th January 2025 Commons Chamber

[Deirdre Costigan (Ealing Southall) (Lab)]

Thank you for allowing me to take part in this debate, Madam Deputy Speaker. Having been a member of the Bill Committee—my first Bill Committee in this place—I appreciate being able to contribute on Report in the Chamber.

Southall town centre is well known the world over as a great place to shop for an Asian wedding, with stunning lehengas, saris and sherwani on sale all down the Broadway, King Street and South Road. During the election campaign, I vividly recall seeing two clothes shop workers eating their lunchtime rotis behind the counter. When I commented that business must be good, they both said no. They said that a few years ago, they would never have had time for lunch, and would have worked right up until closing as they were so busy. They told me that they were suffering from being undercut by online retailers because they were paying through the nose for business rates, facing blitz robberies with no police around to respond, and constantly having to chase bigger businesses for payments.

It is ironic that the previous Government have suddenly decided they back local businesses after 14 years of ignoring their pleas. In fact, the only businesses they supported were the rail companies that could not run the trains, the water companies that could not keep our water clean, and, of course, the private sector mates they handed out dodgy covid contracts to. Indeed, the former Prime Minister and former Member for Uxbridge and South Ruislip, Boris Johnson, reportedly used a four-letter word beginning with f when making it clear how little he cared about business.

In contrast, this Labour Government are backing local businesses. We are already ensuring that suppliers pay small businesses within 30 days, and we are cracking down on retail crime, too. The Bill will deliver on our promise to ensure a fairer system of business rates that will help brick and mortar shops like those in Southall to compete with online companies. Finally, we will have a permanently rebalanced system that will stop local shops being undercut and stop the slow death of our high streets and town centres.

New clauses 1 to 3 and amendment 9 are all things that are already happening. We are already publishing a review of these measures as part of next year’s Budget, and there is already discretion for local authorities to look at the higher multiplier rate. Amendments 1 to 6 would add manufacturing to the Bill, which would, in my belief, dilute its effect. We have already prioritised manufacturing as part of the Budget, investing £3 billion into aerospace, automotive and the life sciences industries. We make no apologies for using this Bill to prioritise town centres.

Amendments 7, 8 and 10 all seek to either dilute or delay the changes in the Bill. The Bill already exempts all private schools that are wholly or mainly focused on educating children with special educational needs—that is already in the Bill. We know, however, that 93% of children in this country go to state schools. Politics is about priorities. Just as we are prioritising town centres in the Bill, we are also prioritising those 93% of children. Unless the Conservatives think it is okay to have children in state schools taught maths and science by unqualified teachers, they need to say where they would get the money from otherwise.

Although the Bill is about a fairer system of business rates that will help local businesses, many on the Opposition Benches have raised the issue of employer national insurance. Some 93% of businesses in Ealing Southall are microbusinesses. Most of those businesses will either pay less employer national insurance or the same as they currently pay. Some businesses will pay more national insurance, but that is because the previous Government ran up a massive £22 billion credit card bill making rash promises they did not even attempt to keep, while running public services into the ground. When the final demand letters started coming, they hid them in the back of a drawer and pretended everything was fine. Employer national insurance increases for some businesses will help us to pay for the triple lock on pensions, thousands of extra hip and knee operations, and more police on our streets. Again, unless the Conservatives think it is okay to reduce pensions in real terms, let waiting lists go up and up and give our streets over to criminals, they need to say where they would get the money from.

Before Christmas, I met the brewer Heineken at its pub the Star and Scorpion in west Ealing. Labour has already taken a penny off a pint in the Budget and our decision in the Bill to permanently lower business rates for retail and hospitality businesses will help to further protect local pubs like the Star and Scorpion. Without the Bill, the bars and restaurants of west Ealing and Hanwell would be facing a cliff edge in April, with big increases in their business rates as the sticking-plaster solution that the previous Government came up with ends. The Bill both extends temporary reductions in business rates for high street businesses and introduces a new permanent scheme that will level the playing field between the high street and the internet.

The one tax that the Opposition do not mention is the 10p crime tax: 10p added to every shopping basket due to the impact of shoplifting. The Tories did absolutely nothing about that, but this is a Tory tax that Labour is getting rid of. We are investing in neighbourhood policing, scrapping the Tory shoplifter charter that allowed thefts under £200 not to be investigated, and bringing in a new offence of assaulting a shopworker.

The Conservatives had 14 years to help out local businesses like those in Ealing Southall. Instead, they trashed our economy, destroyed public services and stifled business growth. The Labour Government are clearing up their mess. Through this Bill, we are ensuring fairer business rates for shops, restaurants and bars on Ealing Southall’s high streets.

[Mrs Sureena Brackenridge (Wolverhampton North East) (Lab)]

I, too, served on the Public Bill Committee and would like to put on record my thanks to all the witnesses who attended and gave evidence.

The Bill shines a light on how politics is about choices. At the general election, we promised a Labour Government that would make different choices: choices rooted in fairness and a commitment to levelling the playing field. Today, the Bill is a powerful example of how we are going to deliver on that promise. This is a Bill about the politics of equity. It is about ensuring that everyone—from small business owners to schoolchildren in Wolverhampton North East—has a fairer chance to succeed. For too long, the scales have been tipped in favour of the largest corporations, online giants and private schools, while businesses and state schools have been left to shoulder an unfair burden. The Bill changes that. We are delivering a permanent reduction in business rates for the hard-working small businesses that are the backbone of Wolverhampton North East. My constituency does not include a city centre, but it does contain plenty of brilliant small businesses: fantastic cafés, restaurants, beauty and hair salons, a micropub, larger pub chains and family-run shops. These businesses are the heart of our community.

For years, high streets have been forced to compete unfairly with massive online retailers and retail parks, but the Bill will ensure that the largest online retailers, supermarket chains and distribution warehouses finally pay a fairer share. Small businesses in Wolverhampton and Willenhall will now see permanent lower business rates, freeing up resources to invest in their workforce, improve security and grow. As Paul Gerrard of the Co-op has pointed out, this reform will strengthen the viability of small shops, ensuring that they can continue to provide jobs, beef up security, and uphold their community-centred values. The Association of Convenience Stores has said that these changes will save small stores money that can be used directly to hire more staff, install new CCTV, and invest in the future.

The Bill is, however, not just about businesses; it is about fairness in education. Private school fees have risen by about 55% in real terms over the last 20 years, while state schools’ funding has largely flatlined. State schools and academies are paying business rates right now while private schools enjoy business rates tax breaks, and that is simply unfair. This is the reality. Almost 50% of private school students achieved top GCSE grades this summer, compared with just 20% in state schools. Sports facilities in state schools are crumbling, with fixtures cancelled owing to a lack of minibuses or drivers. Private schools have more swimming pools than all the state schools, further education colleges and higher education institutions put together. Just 35% of children from low-income families can swim 25 metres unaided, compared with 82% from affluent families.

The Bill removes those unfair tax breaks for private schools and reinvests every single penny directly in state schools. That funding will recruit more specialist teachers, provide breakfast clubs in primary schools, and give schools the resources that they need to unlock every child’s potential regardless of their family’s wealth. This is the politics of equity in action. I will continue to support strong, vibrant high streets, brilliant schools, and a fairer future for all.

Renters’ Rights Bill

Deirdre Costigan Excerpts

Tuesday 14th January 2025 Commons Chamber

Ultimately, what our constituents want is simple: they want the security of a roof over their head for them and their family, a job that pays the bills, and healthcare that works for them when they need it. This Government are getting on with delivering all those things, and the Bill is a key part of that. It is a pivotal step towards a fairer, more just housing system. It reflects Labour’s unwavering commitment to protecting renters, supporting good landlords and rectifying the systemic issues that have plagued our rental market for far too long. I am proud to be supporting the Bill and the Government amendments tonight.

[Deirdre Costigan (Ealing Southall) (Lab)]

A third of people in my constituency live in private rented accommodation. That is already pretty high, and well above the national average of 19%, but in some wards, such as Southall Green, it rises to almost 50% of people living in rented homes. Ealing borough is what is known as super-diverse, with people from all over the world having made it their home. For many of my constituents in Southall, English is a second, third or even fourth language that they sometimes struggle with. That leaves them wide open to abuse by rogue landlords, and under the previous Government there was nothing they could do about it.

The Conservatives made promise after promise to renters but never delivered. In hock to vested interests, they reneged on every pledge they made to renters, and some of the amendments tabled by the Opposition today continue to prioritise the needs of bad landlords over those of renters.

In 2023, Generation Rent produced a report into renting by the British-Indian community, using data from renters in Southall. The report found that over a third had not received any of the six important documents they were entitled to from their landlord. A third stated that their landlord had threatened them with an unaffordable rent increase. Over half said that their rent had increased in the previous six months, with the average increase being £200 per month, and many were living in damp, overcrowded conditions. The Renters’ Rights Bill will ensure that vulnerable tenants such as those in Ealing Southall are able to go to the housing ombudsman for help. They will also be able to challenge arbitrary evictions and unfair rent rises.

I welcome the Government’s amendments today, which strengthen the Bill even further, particularly new clause 13, which will end the astronomical deposits often demanded from tenants in advance. That is a very important change, particularly in Ealing Southall, because where people face low pay and massive rent costs, it will reduce a barrier to them getting into good-quality, safe housing and ensure that we do not continue to see people sleeping on the streets.

The previous Government sat back while renters in my constituency were condemned to mouldy flats, huge rent rises and the threat of no-fault evictions, but Ealing’s Labour council took action. It introduced a new selective licensing scheme for private landlords, and these schemes were discussed in Committee. Selective landlord licensing schemes require private landlords to have a licence to rent out properties in designated areas of high deprivation or poor housing conditions. They have to meet certain conditions to obtain the licence, such as providing safe and suitable accommodation, complying with fire safety regulations and managing their properties in a responsible manner. In the absence of action from the previous Government, these schemes have allowed councils such as Ealing to enforce higher standards for renters, as the licensing fees and any fines raised from irresponsible landlords are ringfenced for enforcing standards. In Ealing it has also increased awareness for vulnerable tenants of the minimum standards to be expected in rented accommodation.

The previous Government were not big supporters of licensing landlords in this way. They preferred standing up for landlords, rather than standing up for renters. In fact, they changed the law to give the Secretary of State a veto on selective licensing schemes that covered more than 20% of a council area. It looks like the Conservatives still are not big supporters of these schemes, as one of the amendments they tabled in Committee would have removed selective landlord licensing altogether. That would be a massive backwards move, and I am glad the Minister agrees with me.

In fact, before Christmas the Minister announced that he would be removing the Conservatives’ veto, and councils will now be able to expand schemes such as the one in Ealing to the whole borough if they want to. I am delighted that the Government have taken fast action on this without waiting for the Bill to pass, and I look forward to more councils with poor housing and high deprivation levels being able to bring in successful licensing schemes such as the one in Ealing. I also welcome the Government amendments, which will give more power to local authorities to enforce renters’ rights and to pay for enforcement and investigation.

The Conservatives have proved today that they do not care about renters, and most of the points that they have raised are about protecting bad landlords—although so few of the party’s Members have turned up that I wonder whether they care about anything. By contrast, Labour believes that it is time we rebalanced the power relationship between landlords and tenants so that constituents such as mine know their rights and can enforce them, including the rights to fair rent, to safe homes and to secure tenancies. I welcome the real difference that this Bill and the Government amendments will make to the lives of families in Ealing Southall.

[Steve Yemm (Mansfield) (Lab)]

The reforms outlined in this Bill and the amendments are, of course, long overdue. When I stood for election last year, I promised that I would deliver on five missions for Mansfield, one of which was to fix our broken housing market and ensure that people have affordable homes to rent. Sadly, that mission is necessary because many of my constituents face the constant risk of eviction. They live in fear of massive rent hikes, or endure substandard and even dangerous conditions in their homes.

I will discuss two key aspects of the amendments. First, I support Government new clause 13, particularly in respect of rent and deposits in advance. I will read a few lines from a recent casework email that I received from one of my constituents:

“I saw a house listed for rent and paid a deposit and rent in advance to secure the property. There were a few things that needed doing, which the agency said they would let the landlord know about and get fixed. I received the keys and was shocked that the damp and mould was still there, the radiator in one of the bedrooms was left on the floor and the bathtub was still out of place. The agent told me that the gas engineers told them that ‘the pipes in the house are all botched’. Winter is around the corner and if the heaters were to stop working, I’d have to stay in the house freezing. I’m a nurse and it would not be ideal for me to be off work sick.”

My constituent further wrote:

“I tried every day to get an update and find out if the landlord had sorted out the problems. Every time I had to leave in disappointment. Expecting to move into the new house, I vacated my previous occupancy. I was so mentally, emotionally, physically and financially drained that I went to the agency and I gave them the keys back. I did not feel comfortable living in a house where the landlord is neglecting tenants. If I was to move in and something was to go wrong, he would never come out or get it fixed on time.”

Those are really powerful words from my constituent.

Following that, my constituent was denied any kind of refund for a period of months. They were only able to secure a refund due to a last-minute intervention by my office, after I had suggested that I would name the letting agent in my speech. The letting agent was kind enough to get back to my constituent and has provided them with a full refund today. That outlines the importance of Government new clause 13 and why I am pleased to support it, and it emphasises why the reform set out in the Bill and the amendments is needed. I understand that the decent homes standard outlined in the Bill will force landlords in the private rented sector to make their homes safe and secure, and to give tenants more avenues for financial redress when things go wrong, as in the case of my constituent.

My second point is that we have seen rents increase at a dramatic rate year after year, and it is time that people in the private rented sector got a better deal.

There are usually many applications from prospective tenants when a new property comes to market in my constituency, which often leads to bidding wars driving up the price that is paid to rent the property, pitting tenant against tenant. This leaves only one winner.

I am pleased that the Government have also set the target of building 1.5 million new homes in England over five years, which will make a huge difference. I recognise and welcome those measures.

Playgrounds

Deirdre Costigan Excerpts

Wednesday 8th January 2025 Westminster Hall

[Deirdre Costigan (Ealing Southall) (Lab)]

It is a pleasure to serve under your chairship, Mrs Lewell-Buck. I thank my hon. Friend the Member for Bournemouth East (Tom Hayes) for securing this important debate.

Playgrounds are not just nice things to have. They are vital spaces where children grow, learn and thrive. In densely populated urban constituencies, like Ealing Southall in London, they are often a precious escape from overcrowded homes. But 14 years of Conservative Government have seen playgrounds and public spaces suffer under successive cuts. With councils starved of funding, playgrounds became a luxury that they could barely afford. Budgets for parks were slashed by more than £350 million and the last Labour Government’s multimillion-pound playground programme was cancelled. That led to crumbling playgrounds that were starved of cash, with councils often having to remove equipment that they could not afford to repair, and a 15% drop in the number of adventure playgrounds since 2017. The results have been devastating: there are fewer public playgrounds, and that harms children’s physical and mental health, stifling their potential before it has a chance to bloom.

[Alex Ballinger (Halesowen) (Lab)]

I completely agree that the lack of funding for local authority playgrounds over the last 14 years has been catastrophic. In my constituency, we have had to rely on central Government funding to renovate playgrounds, in particular Haden Hill Park, next to Old Hill cricket ground. It is fantastic that we have been able to secure that funding through the towns fund—thank you, Minister—but we need to ensure that local authorities are focusing on this. Does my hon. Friend agree that it is not acceptable that, in the current environment, we sometimes rely on central Government funding to support playgrounds?

[Deirdre Costigan]

I absolutely agree that we need fair funding for local councils and for playgrounds.

Access to play is a fundamental human right. It is written down in the United Nations convention on the rights of the child. There should be no argument about it, so it is heartening that the new Labour Government has immediately shown its commitment to play as a human right that cannot be denied to our children. Our changes—in some ways radical—to the national planning policy framework will, for the first time, insist that playgrounds are a consideration in all new developments. It will force developers to provide them, if we can back this up with legislation. In these changes, the Government have demonstrated a renewed commitment to a child’s right to play and their right to be supported through development. I hope this can be followed by a new national play strategy for England—the first since the last Labour Government.

Research shows that many playgrounds fail to meet the needs of girls. In one study, 68% of girls said that there was nothing for them to do in the playground. Developers often tick the box by putting in a climbing frame but many girls prefer playground equipment that is social and collaborative: space to chat to their friends—swings are one example. Our future playgrounds must be inclusive, offering facilities for all children, and I hope that will be included in the Minister’s plans.

Despite years of funding cuts, Labour-run councils like Ealing, which covers my constituency of Ealing Southall, are leading the charge to transform playgrounds and put children at the heart of local plans. Ealing council has already committed £2 million to renovate a staggering 22 playgrounds across the borough, including Ravenor Park, Spikes Bridge Park, Southall Park and Lammas Park in west Ealing. Ealing has worked with developers, including the developer of the Green Quarter in Southall, to ensure that developer-built playgrounds are publicly accessible. All new projects in Ealing are being assessed to ensure a minimum of 50% inclusive play, and that refurbishments consider the Make Space for Girls guidance.

In my former role as deputy leader of Ealing council, I championed “play on the way”, where play features like stepping stones on the grass build-outs at the corner of a street, and a hopscotch marked on the pavement, can even weave play into a child’s walk home from school.

What councils need most is secure funding from central Government, so this year’s 3.5% real-terms increase in council funding—that is £69 billion for councils—is a hugely welcome first step. I know we will hear more on this in the upcoming spending review. We need to ensure that councils like Ealing can sustain and expand playgrounds, especially in urban areas, where green and outdoor spaces are more limited. Playgrounds are not just for children; they are investments in the fabric of our society and in our future generations. To continue to achieve this Labour Government’s mission to break down the barriers to opportunity for every child, we need to keep pushing forward with our radical plans for play. It is time to reverse the damage of the past and create spaces that truly reflect the vibrant, equitable future that we want for our children.

[Several hon. Members rose—]

Provisional Local Government Finance Settlement

Deirdre Costigan Excerpts

Wednesday 18th December 2024 Commons Chamber

[Jim McMahon]

I probably have to be a bit careful not to stray into that, given that this is a statement about councils in England, but the premise of the hon. Member’s question about adequate funding for local public services is correct. Let us remember that councils deliver more than 800 different services to local communities in England. They employ more than a million people, many of whom will be local people of the community. Councils are a huge power and force for good, and I will certainly ensure that the representation he has made is passed on to the Secretary of State for Northern Ireland.

[Deirdre Costigan (Ealing Southall) (Lab)]

Massive cuts to local government services by the previous Conservative Government have seen rough sleeping more than double and families in temporary accommodation regularly forced to move from hotel to hotel with their belongings in black sacks. I welcome the record £14.7 million in homelessness funding that the Minister’s Department has awarded to Ealing council. That is an increase of almost £4 million. Can the Minister outline how that will help those people sleeping out in West Ealing and in Southall town centre tonight? How will it end the use of hotels and bed and breakfasts for families in Ealing Southall?

[Jim McMahon]

That is precisely why we have provided an extra £233 million to meet the demand. We do not take any pleasure or pride in that, actually. It is a sign of a system that is not working that we must keep on providing more and more money for temporary accommodation, to the benefit of hotel owners and not to the benefit of the people who need a safe, secure and affordable home. This funding has to be part of a wider plan. That is why the 1.5 million new homes are so important. If we do not provide those safe, affordable homes for people, we will always be in this cycle of trying to play catch up, and that is not sustainable.

Non-Domestic Rating (Multipliers and Private Schools) Bill (Second sitting)

Deirdre Costigan Excerpts

Committee stage
Wednesday 11th December 2024 Public Bill Committees

[Ms Billington]

Q By how much?

Barnaby Lenon: I cannot answer that. We do not know, but I am quite confident that plenty of parents will have found it too difficult.

Simon Nathan: If you look at the number of pupils in independent schools over the last 10 years according to Department for Education data, on the face of it you could say, “Well, there’s 12,000 more,” but that is during a period when the overall school population went up by 800,000. The proportion of pupils educated in independent schools went down from 7% to 6.5%. There has been a proportionate decrease.

[Deirdre Costigan (Ealing Southall) (Lab)]

Q Thank you very much for your evidence. I am a former chair of the governing body of a state school, so this is a really interesting conversation. Mr Woodgate, you mentioned that private schools might need to look at redundancies to absorb the impact of the measure. I understand that the student-teacher ratio in private schools is double that in state schools. It is something like 8.5:1 versus 18:1 in state schools, so there are significantly more teaching staff in private schools. If there were to be redundancies, have you made any assessment of whether the impact would be similar to the impact on state schools?

David Woodgate: Pupil-teacher ratios are increasing anyway. Many schools are much beyond that. That is not a typical pupil-teacher ratio in one of our schools. Many are going up towards 20—the same kind of number that you are talking about in the state sector. Inevitably, if there are redundancies, there will be fewer teachers to go around and they will be teaching more pupils.

[Deirdre Costigan]

Q I was specifically asking for a comparison with the state sector. Do you think that redundancies will have a similar impact, a worse impact, or less of an impact in the private sector than in the state sector?

David Woodgate: Inevitably, if pupil-teacher numbers change, that will have a negative impact.

[Mr Sewards]

Q I understand that the Minister wanted to move on from this, but on your comments about aspirational parents, the simple fact is that all state school parents are aspirational, and in many cases they will never be in a financial position to send their kids to private school. I wanted to give you an opportunity to clarify that. Secondly, given that over 1,000 private schools closed between 2010 and 2024 without much media attention, how many private schools do you estimate will close as a result of the Bill?

David Woodgate: On your second point, we estimate that somewhere between 200 and 250 of our 1,300 schools are vulnerable to closure. They may look at mergers or other options—some might academise, for instance—but that is the kind of figure that we are looking at. I take your point about aspirational parents. We have to ensure that this does not impact on the bursary funding that is available for people from more disadvantaged backgrounds to get a place at one of our schools if they wish to go there. We have to ensure that, as far as possible, given these threats to our income, the funds available for bursaries are maintained.

--- Later in debate ---

[Patrick Spencer (Central Suffolk and North Ipswich) (Con)]

Q The premise of this policy change, as I understand it, is to rebalance fairness back towards local, community-based properties and businesses, which I am in favour of. But can you speak to the impact that the Bill will have on your institutional investors that invest in large warehouse space? What is the importance of that for the UK economy, in terms of supporting our distribution networks and the many businesses that provide goods to our doorstep? What impact will the change of policy have on those businesses?

Rachel Kelly: Our whole economy is interconnected. Those large logistics and distribution warehouses that you talk about will be servicing parts of our retail sector as well. I am sure there will be loads of impacts of this measure that are impossible to predict at this point, but ultimately, increasing the tax rate further makes investment in property harder, and it will make the occupation of property more expensive. Other than that, it is good that the whole economy is shouldering the burden of the higher tax rate, and we would not want that to be intensified further so that individual sectors are solely bearing that burden; I do not think that would be right or sustainable. Ultimately, the higher tax rate will make the tax system less competitive and the occupation of property more expensive.

[Deirdre Costigan]

Q You said at the outset, Rachel, that you wanted the tax system to be more responsive. Would you not agree that rebalancing the tax system in this way is being responsive to those empty shops on the high street, and to the feeling among small businesses and hospitality that it is the online distributors that are not playing on a level playing field and are getting away with being able to undercut them because the tax system currently does not work? The legislation will give us the responsiveness we need to level that up.

Rachel Kelly: Yes and no. Ultimately, if you take a step back, business rates are a tax on the occupation of property, and they are levied on the basis of the value of that property. If you occupy a more valuable property, you will pay more tax. The business rate system is working as the policy intended in that respect.

In terms of making it fairer, the best thing you can do is value property more frequently. Retail rents have been falling for the last 10 or 15 years. In the decade from 2010 to 2020, rents came down 30%, but business rates did not for that sector. Rents are negotiable—rents do respond—but it is business rates that do not. If valuations had kept up with rents, retail would have been paying much less, much earlier, and other sectors that had been growing would have been paying more much more quickly. To my mind, the best way to introduce fairness into the system is to value properties more frequently.

[The Chair]

That is the end of this session.

--- Later in debate ---

[The Chair]

We have eight minutes left, five people still to speak, and a vote is due any second now.

[Deirdre Costigan]

Q Thank you, Minister. I know you are a former local government leader. I want to ask about local councils and what support there will be to ensure that they can administer the Bill and help to support rebalancing the high street in a way that I know all local authorities want.

Jim McMahon: Again, there is a wider context. It is about ending the cap-in-hand bidding process, through which the previous Government aligned councils, one by one, getting them to compete with each other for a very restricted pot of money to support local high street improvements. In the end, we must provide a fairer way of funding local councils, which has to be based on need. I will be careful again not to get ahead of next week’s provisional settlement, but measures will be very clear in there about the intent and the direction of travel. In the end, it is about making sure that councils have the resources they need to ensure that wherever a council is—outside of the bidding war that we saw previously—they have the resources to intervene on the high street.

Resource is part of that, but the powers are also important. The community right to buy, the asset register and having a proper period to be able to self-organise are part of that. The measure is about making sure that when businesses are open and they are operating, they are sustainable businesses because their tax burden from business rates is fair and equitable.

Rough Sleeping

Deirdre Costigan Excerpts

Wednesday 23rd October 2024 Westminster Hall

[Deirdre Costigan (Ealing Southall) (Lab)]

I beg to move,

That this House has considered the matter of tackling rough sleeping.

It is a pleasure to speak under your chairship today, Sir Christopher.

Night after night in Ealing Southall, people bed down in front of the Quality Foods shop, where a canopy offers some shelter from the rain, although it does not offer much protection from the biting cold. They sleep there all night, wrapped up in cardboard and ragged sleeping bags. Up the road in West Ealing, it is the same story. Indeed, data show that on any night in England in 2023 almost 4,000 people slept rough—a 27% increase on the previous year. It is a daily tragedy for homeless people, and of course it is also intimidating for people passing by and it cannot help but make our town centres less attractive for shoppers and businesses.

I recently visited Southall community college, which is trying to offer its students a good learning environment, but it says that it is hard to do so when there are people sleeping under the college awnings every night who are still there in the morning. The college has decent people who want to help, but they do not know where to start.

Hope for Southall Street Homeless is a fantastic local charity that helps homeless people and those sleeping rough—I recently visited and saw the range of services it offers, from a hot meal to eye tests to a Bollywood movie on a big screen—but voluntary services are straining under the sheer weight of people now sleeping rough. There was a brief respite during covid when the Everyone In programme moved almost all rough sleepers into accommodation, but when the covid crisis was over, the previous Government squandered that opportunity. They refused to learn the lessons and now the numbers are swiftly moving back to the pre-covid record levels of rough sleeping.

Some people might think that rough sleeping is something we just cannot fix—a problem that will always be there—but the last Labour Government reduced rough sleeping by more than two thirds in their first term by taking a cross-departmental approach. I really welcome the new Government’s commitment to doing similar. I hope that the Minister will be able to outline the timeline for a strategy on rough sleeping and clarify which Departments are involved in the new interministerial group.

Rough sleeping has a number of causes, including a chronic lack of affordable housing. That is not surprising given that the previous Government presided over a net loss of 210,000 affordable homes over the last 10 years. I am delighted that the new Government are investing in 1.5 million new homes, creating a new generation of social homes in particular. Our low-wage economy also reduces the affordability of housing. Up till now, renters could be kicked out without a reason. I very much welcome the new Government’s plan to make work pay, which will ban precarious zero-hours contracts and fire and rehire, and our Renters’ Rights Bill, which will ban section 21 evictions, giving renters more rights.

Many of those sleeping rough have mental health problems or substance misuse issues—many have both. They need intensive support, but we know that the NHS is in crisis. The Secretary of State has taken decisive action with a new 10-year plan, but I hope the Minister will ensure that the needs of rough sleepers are taken into account when designing community mental health and addiction services that will help to reduce rough sleeping.

Although we are taking steps to reduce rough sleeping by building new housing, improving renters’ rights, making work pay and rebuilding our NHS, it is all being undermined by the previous Government’s broken immigration and asylum system, which literally creates rough sleepers. In Ealing Southall, many of our rough sleepers are single men in their 60s, although they look even older from their time on the streets. They often come from India originally and do not speak much English, despite having lived here for many years. They might have worked in construction or catering and rented a home, but something went wrong in their lives and when they went to look for help to avoid becoming homeless, they discovered that they did not have the correct visa. They get told they have no recourse to public funds—NRPF—and cannot access housing or welfare support. With no housing benefit or universal credit, some of them end up with no option but to sleep on the street. In some ways, their experience is similar to that of those affected by the Windrush scandal; they get asked for piles of evidence that they did not keep, because they never knew there was a problem with their papers.

Some 3.3 million people in this country have been told that they have no recourse to public funds. That is a massive increase in the number of people being denied access to basic services. Many have the right to services—they just need help to track down paperwork and to make their case—but in a Catch-22 situation, they are not allowed to access help to prove their status. Rightly, this Government have taken on the staff to start assessing claims to ensure that those without a right to remain in this country are removed, but I hope the Minister will consider what can be done to offer advice and support to those people who have a right to live in this country, so that they do not end up homeless.

Many of those with no recourse to public funds status who are sleeping rough have significant health issues, including heart disease and stroke, but they often cannot access the care they need. Local authorities are not aware of their duties under the Care Act 2014, and they worry about spending money illegally. Added to that, of course, local authorities saw their funding decimated under the previous Government, so there is not a lot of money to go around. I hope that the new Government will consider clarifying local authority responsibilities in that regard.

Another growing problem is people coming out of the asylum system and ending up on the streets. The new Government have finally got the system working again after the costly and ineffective gimmicks of the previous Government. Ironically, however, people who are assessed as refugees with the right to asylum in this country are being given no chance to make a life here. Under the previous Government, people granted refugee status were getting as little as seven days’ notice to leave asylum accommodation—eventually changed to 28—but that is still far too short a time, especially as the local housing duty does not kick in for 56 days. I hope that the Government will give consideration to whether it would be sensible to align those timeframes better, whether local authorities can be notified in advance, and whether improved support can be put in place, so that we end the frankly ludicrous situation in which we agree that people are refugees and have a right to be here but turn them out on to the streets.

In Ealing Southall, we also have a significant number of EU nationals sleeping on the streets. For reasons that can include chaotic lives or mental health issues, they may not have submitted their settled status paperwork on time; and now they are stuck in limbo. It is easy to say that they could go home but, as an immigrant myself, I understand how hard it might be to admit that the streets of London were not paved with gold—that they failed to make it. I hope that the Minister will look at simplifying the EU settlement system, offering more advice and support, and a better assisted voluntary return system for those who would consider going home.

A further issue to bring to the Minister’s attention is the chilling impact of the previous Government’s right-to-rent legislation, which has meant landlords wrongly think they need to see a passport before they can rent to someone. Many people born and bred in this country do not have a passport, and the policy is only legitimising discrimination, so I hope that the Minister will consider the impact it is having on homelessness. I am afraid it is not just the asylum and immigration system that is adding to the numbers of those sleeping on our streets; 15% of prisoners were released into homelessness in 2023, and 4,100 people were released from hospital on to the streets.

Money always helps, and I look forward to the Government making provision for tackling rough sleeping in next week’s Budget, but we can make a huge difference to rough sleeping just by stopping policies that create homelessness in the first place. We all want to end rough sleeping, and the new Government’s focus on building affordable homes, making work pay, rebuilding the NHS and strengthening renters’ rights will have an impact, but we will never solve the problem if the previous Government’s immigration and asylum system continues to be allowed to cause homelessness and rough sleeping. The system we inherited is creating destitution by its very design. Not only is that morally wrong; it is a false economy. It just creates a bigger problem that costs us more to fix through acute services, and it is impacting on our town centres.

The new Government have made rough sleeping a priority and committed to a cross-departmental approach. I hope that the Minister will work with her colleagues in the Home Office, and in the Ministry of Housing, Communities and Local Government, the Department of Health and Social Care, the Ministry of Justice and the Department for Work and Pensions to ensure that those making up their bed on the street tonight will not have to wait much longer for help to rebuild their lives.

--- Later in debate ---

[Deirdre Costigan]

Thank you, Sir Christopher, for your excellent chairing of this debate. I also thank the many hon. Members for their contributions.

I regret that the Opposition spokesperson, the hon. Member for Ruislip, Northwood and Pinner (David Simmonds), completely failed to take responsibility for the more than doubling of rough sleeping under the previous Government. He seemed to think it was more important to count rough sleepers than to do anything about them, and he failed to say anything at all about the almost a quarter of a million social homes that were lost under that Government. However, I appreciate his support on looking again at the no recourse to public funds designation and the massive expansion of that, under the previous Government, to 3.3 million people.

I thank the Minister very much for her response. I am delighted that the new Government are focusing on social housing, renters’ rights, making work pay, and rebuilding the NHS. I very much appreciate the cross-departmental focus that this Minister is bringing to this issue, and particularly the leadership from the Deputy Prime Minister, who I think will bring the priority we need to rough sleeping.

Question put and agreed to.

Resolved,

That this House has considered the matter of tackling rough sleeping.