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.