Budget Resolutions and Economic Situation

Desmond Swayne Excerpts

Tuesday 21st March 2023 Commons Chamber

[Michael Gove]

I appreciate the point that the hon. Lady makes, and she is right to draw attention to and thank those who exercise caring responsibilities. The family is the foundation of our welfare society, even before the creation of the welfare state, and we need to work in partnership with carers everywhere. I know that she and others—including, if I may say so, the leader of the Liberal Democrats, the right hon. Member for Kingston and Surbiton (Ed Davey)—have come forward with proposals to ensure that we can better support carers. It is the mission of the Secretaries of State at the DWP and the Department of Health and Social Care to see what more can be done, particularly in the wake of the covid pandemic, which has placed particular pressures on some of the most vulnerable in our society.

[Sir Desmond Swayne (New Forest West) (Con)]

Where families make a choice that one parent will remain at home for full-time childcare, their tax treatment is much, much less eligible than for couples where both parents work. If we are to have true freedom of choice in childcare arrangements, there is an agenda on taxation that we need to address.

[Michael Gove]

I know that my right hon. Friend and other Members of this House, including my hon. Friend the Member for Penistone and Stocksbridge (Miriam Cates), have raised interesting questions about how we can better support families overall. Both the Prime Minister and the Chancellor of the Exchequer are absolutely determined to explore what more we can do, but tax changes are, and always have been, above my pay grade. They are a matter for the Chancellor of the Exchequer in consultation with the Chief Secretary to the Treasury, and I know better—particularly after recent weeks—than to try to guide their hands.

Private Rented Sector

Desmond Swayne Excerpts

Thursday 16th June 2022 Commons Chamber

[Eddie Hughes]

I guess I should begin with an apology, saying I am sorry that the document was available at such short notice, although there is going to be considerable opportunity over the next couple of months for me and Members right across the House to discuss its content. I look forward to doing that either in formal settings or in the Tea Room with Members from all parties, right across the House.

But I am not going to let the hon. Gentleman rain on my parade on a sunny day like this. He is looking very serious, but I know that, deep down, Opposition Members welcome this legislation. They may be disappointed that it has taken a while to get to this point, but they may remember—it feels like a distant memory now—that we have had two years of a global pandemic in the meantime. The Government have done everything they could to support renters during that period. We have given furlough payments that have allowed renters to continue to occupy their properties and keep arrears as a result of the pandemic to a limit. We have also invested heavily in things such as discretionary housing payments to help people where arrears have been built up. So we have been doing an awful lot of work in the past two years and I think he should acknowledge that.

As I say, this is a White Paper; it is not the legislation. We have the opportunity now to discuss, as Members of Parliament and with stakeholders, what they think about the legislation and perhaps see if there is an opportunity to improve and enhance it, provided they are reasonable with their suggestions, before we get to the legislation.

On when that might happen, hon. Members will appreciate that our Department has an intense legislative programme. We have the Levelling-up and Regeneration Bill and the Social Housing (Regulation) Bill. As you will be aware, Madam Deputy Speaker, the Social Housing (Regulation) Bill has already life in the other place, so progress is being made with our legislation. However, clauses have been sent for drafting and work is already under way. People are beavering away on the construction of that document, so I hope we will see it in quick time. Once it gets to Parliament, I am expecting its passage through Parliament to be pretty smooth and fast because I think it is going to be welcomed by Opposition Members.

On the point about the abuse of mandatory grounds that we are strengthening for landlords, I understand completely the reservations of the hon. Gentleman. I commit to work closely with him to make sure that that legislation is tough and there is not the opportunity for rogue landlords to thwart it in some way, given our best intentions.

On how we might enforce the powers, I fully appreciate that councils are under intense pressure, so we are going to work with councils on a number of pilot schemes so we can test what the best way is for them to enforce good-quality housing within the private rented sector, and then we can develop best practice and I hope share that across the country.

On rent rises, one of the things we should appreciate with regard to the cost of living is that, if somebody is forced to move tenancy, perhaps because of a no-fault section 21 eviction, on average, that costs approximately £1,400. So if we can limit the number of times people move, we are going to make sure that they do not experience those unfortunate and unnecessary costs. However, as a Government, we are clearly not committed to the idea of rent control. We have seen that experiment carried out recently in some places in Europe and all it does is stop investment in properties. That is the last thing we want to do.

This White Paper commits to a fairer private rented sector for both tenants and landlords, and I look forward to working with Opposition Members to deliver it.

[Sir Desmond Swayne (New Forest West) (Con)]

Madam Deputy Speaker, can I refer you to my entry in the Register of Members’ Financial Interests?

Rents are rising because of a shortage of properties in the market as landlords flee from it. Has the Minister considered that these measures may have the very reverse effect of that which he intends?

[Eddie Hughes]

I always love to hear from my right hon. Friend. His powerful oratory suggests some things sometimes that may not necessarily be quite the case. The English housing survey tells us that as many landlords are talking about selling some of their stock as are talking about buying new stock, so I think the equilibrium within the market is likely to be marginally less dramatic than he has suggested. Clearly, as a Government, we will be keeping a watchful eye on these things to make sure there are no unintended consequences. Given the work we have put in to reassure landlords and the consultation we have had during the creation of this White Paper, I think he may find that they are less frightened of the White Paper than his oration might suggest.

Levelling-up and Regeneration Bill

Desmond Swayne Excerpts

2nd reading
Wednesday 8th June 2022 Commons Chamber

[Michael Gove]

I am allergic to power grabs. I am entirely in favour of relaxing the grip of central Government and strengthening the hand of local government, which is what the planning reforms here do. The reference to the national development management policies is simply a way to make sure that the provisions that exist within the national planning policy framework—a document that is honoured by Members on both sides of the House, of course—do not need to be replicated by local authorities when they are putting together their local plans. It is simply a measure to ensure that local planners, whose contribution to enhancing our communities I salute and whose role and professionalism is important, can spend more time engaging with local communities, helping them to develop neighbourhood plans, and making sure that our plans work.

[Sir Desmond Swayne (New Forest West) (Con)]

May I suggest some powers that the Secretary of State might like to grab?

[Michael Gove]

Yes.

[Sir Desmond Swayne]

I suggest that the Secretary of State addresses a problem to which national parks are particularly prone, where a historic lawful development certificate is acquired because a caravan was previously located there, affording huge development on the basis of permitted development rights over which the national park authority and the planning authority have no control. That is a power that needs to be grabbed and given back to local authorities.

[Bob Seely (Isle of Wight) (Con)]

And areas of outstanding natural beauty.

Leasehold Reform (Ground Rent) Bill [Lords]

Desmond Swayne Excerpts

Report stage & 3rd reading
Monday 24th January 2022 Commons Chamber

[Mike Amesbury]

I thank my hon. Friend for that intervention and all the work he and the Select Committee have done to move the matter forward. Together with the Select Committee and many others, I certainly want to see this system kicked into history.

I reaffirm that campaigners have waited long enough for change, and we should not keep them waiting any longer. A former Secretary of State, the right hon. Member for Newark (Robert Jenrick), referred to the Bill as the “appetiser” before “the main course”. Again, I affirm that what we need is an all-you-can-eat buffet of reform here and now.

Amendment 1, tabled by the right hon. Member for New Forest West (Sir Desmond Swayne), would prevent some retirement properties from being bound by the legislation. Unfortunately, we are not able to support the amendment. In fact, in Committee I tabled an amendment that would have done quite the opposite. Those who buy retirement properties should have been able to benefit from this new legislation and be put on par with everybody else. Justice is justice. The right hon. Member has certainly been consistent, but consistently wrong on this matter.

[Sir Desmond Swayne (New Forest West) (Con)]

Has it occurred to the hon. Gentleman that for many purchasers it will be in their interests to pay a lower purchase price and pay a ground rent, rather than to have to pay a very much higher price at the outset?

[Mike Amesbury]

I will agree to disagree. The Government have proposed a compromise, giving a longer transition phase for retirement properties, and we will support that approach, as was stated in Committee.

I find that the concerns of retirement community developers do not outweigh the need for those buying retirement properties to be treated fairly as consumers. Given the notice that the retirement community has had about the change, the transition period is generous enough. Many in the industry have done the right thing and already moved away from this income stream model, and I ask that their colleagues do the same.

In conclusion, the Bill marks another milestone in the slow journey to put the feudal system of leasehold into the history books. I thank all those campaigners who have educated legislators and the Government to secure change. The investigation and intervention from the Competition and Markets Authority have shone an authoritative light on the leasehold scandal. Developers have been exposed and are now responding by ditching the practice of doubling ground rents every 10 years. I urge Ministers to strengthen the Bill for all leaseholders and back new clause 1.

[Sir Desmond Swayne]

I draw your attention, Madam Deputy Speaker, and the attention of the House to my entry in the Register of Members’ Financial Interests.

I am deeply embarrassed about the way that the retirement living industry has been treated over the past few years in the progress to this Bill. In recognition of the significantly greater capital costs of building developments that have communal areas, which have traditionally been funded through an income stream of ground rent, the industry was granted an exemption, or an assurance that it would be exempt from the provisions of the Bill, back in June 2019. That exemption was then withdrawn in January 2021. I understand that the decision to withdraw the exemption was made almost a year earlier, in February 2020, and that discussions about revoking the assurance of exemption had actually begun in August 2019. Throughout all that period, the industry continued to be reassured that the exemption was good and would hold, and it was not.

Throughout that period, the industry continued to raise capital on the basis of the model with which they had been told they could continue. The amendment goes one tiny little bit towards trying to remedy the damage that has been done. It accepts that the practice will have to end, but it asks for one tiny concession, namely that, when the provisions of the Bill bite in March 2023, properties that are part-sold can continue to sell the residual remaining flats or properties on the basis of a continued ground rent. Without that, what we will have is some properties within a development being worth significantly more in terms of the purchase price than others, and some properties paying a ground rent and others not. It will be hugely complicated and divisive. Therefore, the amendment merely asks for that to be addressed. At the most, if the provision were to pass, we anticipate that this would account for about 2,000 properties. I ask the Minister to reflect on this, and, even at this late hour, accept the amendment.

[Justin Madders (Ellesmere Port and Neston) (Lab)]

I rise to speak in support of new clause 1, tabled by my hon. Friend the Member for Weaver Vale (Mike Amesbury).

To respond to the previous speaker, the right hon. Member for New Forest West (Sir Desmond Swayne), on the issue of ground rents, it is clear that service charges are for communal areas. Indeed, McCarthy Stone’s website says very clearly—

[Sir Desmond Swayne]

rose—

[Justin Madders]

Go on then.

[Sir Desmond Swayne]

It is unlawful to charge ground rent for the maintenance of a communal area. They are clean different things.

--- Later in debate ---

[Eddie Hughes]

I would love to be tempted by something like that, but given that we have just gone through two years of a rather unexpected global pandemic, it is best not to pin these things down too firmly.

Unfair practices have no place in the housing market, and the Government are committed to ending them. That is why, in addition to our proposed reforms, we asked the CMA to carry out an investigation into the potential mis-selling of homes and unfair terms in the leasehold sector. We are clear that we want to see existing homeowners who have been affected obtain the justice and redress they deserve. During 2021, through determined negotiations, the CMA secured commitments from Aviva, Persimmon, Countryside Properties and Taylor Wimpey to amend their practices, which included righting the wrongs of doubling ground rents and houses being sold as leasehold. These settlements will help to free thousands more existing leaseholders from unreasonable ground rent increases. I am sure the whole House will join me in welcoming the progress the CMA has made.

Indeed, the investigation continues, and we are closely monitoring those developers and landlords that have failed to sufficiently change their practices, such as those described by my hon. Friend the Member for Warrington South (Andy Carter). The action against major industry players serves as a warning to other developers with similar arrangements in place. Let me be absolutely clear in reiterating the Government’s position: we want to see other developers come to the table.

Again, I reassure hon. Members that we take the plight of existing leaseholders extremely seriously, and we are making moves across a number of areas of Government policy to reflect that commitment. It is on that basis that I ask the hon. Member for Weaver Vale to withdraw the new clause, and to work with me on the development of further reforms to support existing leaseholders, as I have described—or, alternatively, the hon. Member for Greenwich and Woolwich (Matthew Pennycook) and the hon. Member for Ellesmere Port and Neston (Justin Madders), with his experience through the work of his APPG.

On amendment 1, which is in the names of my right hon. Friend the Member for New Forest West (Sir Desmond Swayne) and my hon. Friend the Member for Waveney (Peter Aldous), as hon. Members will know, it is our intention to protect leaseholders from unfair practice through this Bill by ensuring that in future regulated leases are restricted to a peppercorn rent unless excepted. The Government believe that those who purchase retirement homes should benefit from the same reform as other future leaseholders. While we would like the provision of the Bill to come into effect as soon as possible, we have decided to give the retirement sector additional time to prepare for these changes. The transition period for retirement properties is being granted in recognition of the fact that the sector had previously been informed that it would be exempt. We have provided this additional time—first announced over a year ago, on 7 January 2021 —for the sector to prepare for these changes. As such, the ground rent Bill will come into force no earlier than 1 April 2023 for retirement homes. We have carefully considered this to ensure we are striking the right balance—giving the retirement sector time to transition and ensuring that protection for leaseholders comes as quickly as possible.

Amendment 1 seeks to exempt retirement properties from the peppercorn rent provisions where part of the development remains unsold at the commencement of the Bill and where the development itself was commenced prior to 6 July 2021. There is a simple reason why I am rejecting this, which is that we want to protect more leaseholders. The amendment would mean that many new leases enter the market charging a monetary ground rent, with more consumers of retirement properties being left outside the Bill’s protections.

[Sir Desmond Swayne]

What was the rationale for granting the exemption in the first place? Surely the Minister recognises that, for many people in the retirement sector, it will be in their financial interest to pay a lower purchase price and have a continual ground rent, rather than to pay a significantly greater capital sum upfront. Individual circumstances will of course differ.

[Eddie Hughes]

I was delighted when I was appointed as a Minister for the Department on 16 January 2021. The negotiations to which my right hon. Friend refers pre-date my time at the Department, so I will have to take his word for what happened. It is important that as many people as possible benefit from the provisions of the Bill. We have offered a generous transition period and many people have already adopted their operating models, so he can be reassured: the sector will cope.

The amendment could serve only to incentivise any retirement developer to sell simply one unit on a development before commencement of these provisions in order to continue to charge ground rents on all the properties in that development. The amendment would risk providing a loophole. Throughout consideration of the Bill, arguments concerning the transition period have been made on both sides: there have been those who wished to extend the period, including by application to part-sold properties, and those who wished to remove the period entirely.

On Second Reading, we heard arguments by my right hon. Friends the Members for Chipping Barnet (Theresa Villiers) and for New Forest West in favour of amending the transition period for the sector. Subsequently, I had helpful conversations with representatives of the retirement development sector, whom I met on 8 December. I am grateful to them for taking the time to explain their position to me.

We appreciate that there are likely to be some developments that will continue to include a mixture of properties with monetary and peppercorn ground rents. That will not be limited to retirement properties, and we do not consider that that is a compelling case for retirement sector leaseholders to be exempted or treated differently. I put it to you, Madam Deputy Speaker, that there is a simple way to avoid this: reduce all ground rents to a peppercorn.

The Bill provides a clear-cut date for consumers. If a regulated lease is sold after the date, there can be no monetary ground rent. That is transparent and easy for consumers to understand. Indeed, many consumers may already be planning their purchase based on that date, secure in the knowledge that they will be protected from pointless monetary ground rents from that point forward. To bolster the clarity and transparency provided by the Bill, we will of course ensure that all relevant leaseholders are aware of the legislation and the impact that it will have on them, before the Bill comes into force. I therefore ask Members not to press the amendment.

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

Leasehold Reform (Ground Rent) Bill [Lords]

Desmond Swayne Excerpts

2nd reading
Monday 29th November 2021 Commons Chamber

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

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

As hon. Members may know, I have long championed a root and branch comprehensive reform of our leasehold system. It has been a long journey to get here from my private Member’s Bill—Ground Rents (Leasehold Properties) Bill—to try to overhaul the regulations on ground rents. It is particularly gratifying to be standing here today as the Minister responsible for this hugely important legislation.

The Bill will make home ownership fairer and more transparent for future generations of leaseholders. We will do this by reducing the ground rent on new residential long leases where a premium is paid to a peppercorn. I am sure that this change, which will benefit thousands of future leaseholders, will be welcomed right across the House.

[Sir Desmond Swayne (New Forest West) (Con)]

I lobbied for an exemption for the retirement living industry, which was granted and then withdrawn in January this year. Why was that?

[Eddie Hughes]

I appreciate my right hon. Friend’s strong lobbying on this matter. I think the Government decided that it was appropriate to treat all leaseholders the same and therefore we made that change, although we did allow an extension in the introduction of that to April 2023.

--- Later in debate ---

[Eddie Hughes]

Once again the right hon. Gentleman points out an egregious and unfortunate practice that hopefully we will be finding ways to address in future.

[Sir Desmond Swayne]

That prompts the question of what proposals the Minister may have to enable leaseholders to enforce the purchase of freeholds from such companies. Does he have plans for that?

[Eddie Hughes]

As my right hon. Friend will know, unfortunately I am not the Secretary of State, much as I would like to be. [Interruption] Not yet, anyway. It is best to leave the fine detail of the formation of future legislation to the Secretary of State to decide. However, I look forward to discussing the matter further with my right hon. Friend as we progress.

--- Later in debate ---

[Lucy Powell]

Absolutely. My hon. Friend makes a really good point. People are trapped in this situation, because we all know that when we look to buy a home, we look at the overheads, and the ongoing service charges, ground rents and other costs. In recent years, those things have rightly been added to the affordability criteria, so people often cannot get a mortgage for these homes. That leaves the people living in them trapped in that situation with an unsellable home.

[Sir Desmond Swayne]

Does this not give rise to an extraordinary question about the legal advice provided by solicitors to those who made such purchases?

[Lucy Powell]

I am glad the right hon. Gentleman raises that point, because I am sure colleagues around the House will be keen to highlight—

--- Later in debate ---

[Robert Jenrick]

I think it should be kept under review, like any permitted development. As we have seen with past examples, there are always cases at the edges that concern us, and there are usually ways to refine the permitted development over time to ensure that those cases do not happen again. With the permitted development that the hon. Gentleman mentions, I think—from memory —that we ensured that the developer has to work with the local council to ensure that there are not issues with building safety or loss of amenity to the leaseholders in the building, and that the design of the extra storeys is broadly in keeping with the neighbourhood. I certainly think that the issue should be kept under review.

[Sir Desmond Swayne]

Will my right hon. Friend give way?

[Robert Jenrick]

I will, but I appreciate that many other hon. Members want to speak.

[Sir Desmond Swayne]

As I do!

It would be quite unlawful for the capital cost of the communal areas in a retirement living community to be paid for through an administration charge, so we come back to the question whether it is in the interests of the purchaser to pay a ground rent or to pay the up-front cost in the purchase price. For a category of elderly people, it may well be in their interests to pay the former.

[Robert Jenrick]

My right hon. Friend gets to the nub of the issue. The debate, exactly as he says, was whether it would be better for a retired person looking to move into such a community to pay a somewhat lower purchase price for the property or the share in it that they were taking, and then, for as long as they live there, pay a ground rent, which might escalate at an unfair level, and a service charge. That is not a system that occurs in any other country in the world, including countries such as the United States that are far more advanced in their take-up of retirement properties. I took the view that it would be much fairer and more transparent for an individual to know exactly what they had to pay from the outset: they pay their purchase price and then their service charge, but they do not have to face escalating ground rent. That makes sense to me; I appreciate that there will be differences of opinion, but it was done as a matter of basic fairness.

I make it clear that the reason for the Bill’s very limited scope was to bring an end to unfair practices as quickly as possible. That was the advice of the Law Commission, which said that it was better to have a two-step process so that the iniquity of escalating ground rents could be brought to a close, and then we could move on to the much more complex piece of legislation that will inevitably take the Department and Parliament a great deal of time to prepare and pass. I think that that was probably the best way to proceed.

Two further points emerge as a postscript to the events of the past few years. First, as my right hon. Friend the Member for New Forest West (Sir Desmond Swayne) said, we need to think about the conveyancing solicitors who gave or failed to give advice in the process of house sales. They failed in their duty to their clients: many constituents have come to my surgeries who were oblivious about the homes that they were buying. That applies not only in the situation we have discussed, but with respect to management fees, which may be very high or—as the right hon. Member for Alyn and Deeside (Mark Tami) mentioned—may involve charges, for example for putting up a satellite dish, building a conservatory and so on. Conveyancing solicitors need to take much greater care to bring such matters to the attention of their clients.

Secondly, the work of the Competition and Markets Authority must move forward at pace. It has already ensured that some of the major developers have settled, but I encourage all developers behind the sale of these properties, many of which they mis-sold to members of the public, to do the decent thing—the inevitable thing—and settle, so that the purchasers get some compensation for the issues that they have faced. I see that many are on the cusp of doing that, but I hope that the remaining ones will do so quickly.

I also hope that the Government will ensure that the second Bill features in the next Queen’s Speech and is delivered early in that Session. There is, as I have said, a great deal of work for the Department to do in preparing that Bill and ensuring that it is sufficiently comprehensive, but I think it extremely important that it does so, and that within the course of this Parliament we deliver comprehensive reform to leasehold. It should include 990-year leases, a simpler, cheaper enfranchisement process, ending marriage value, improving the position of leaseholders in the management of buildings, and ending—as has already been suggested—the building and selling of new houses as leasehold, because there really is no justification for that.

Finally, I hope that that Bill will look to the destination of a world beyond leasehold. That is the end point towards which we must work. I established the Commonhold Council to see how we could chart that course, and it seems to me that all the complex issues that are raised are surmountable—that is the evidence from the council so far. It also seems to me that commonhold will never take shape to any substantial degree in this country without a major Government intervention, which means indicating that it is our tenure of preference, or setting an end date for new leasehold properties. I favour the latter: I think we should say clearly that, beyond a certain date, no property, whether it be a flat or a house, should be built unless it is commonhold. I hope that the Bill to be introduced in the next Session will set that course, because I think it would be an important step towards ending a feudal system and helping us to move forward as a country.

--- Later in debate ---

[Sir Desmond Swayne (New Forest West) (Con)]

I have had the nub of my argument with my right hon. Friend the Member for Newark (Robert Jenrick), but it comes down to this: the retirement living industry’s business model funds the capital requirement for the communal areas through a flow of future ground rents from the outset. The Minister said that he has given the industry time to change its business model. My answer to that is: if there was a problem with an escalating ground rent, it would be perfectly appropriate to have dealt in a measure such as this with that specific problem, rather than telling the industry to change its entire model. Nevertheless, this is where we are.

The business model must therefore have changed by 1 April 2023. The difficulty is with the time it takes to sell properties in the retirement living sector. The industry’s estimate is that some 4,000 apartments will remain unsold in part-sold developments. If someone was to complete on one of those properties on 1 April, they would be paying all the capital costs up front, whereas someone who had completed on 31 March would be expecting to pay a ground rent for the remainder of their tenure. That creates a huge legal confusion and a sense of injustice among the tenants in those properties. So I put a solution to the Minister: a technical amendment to the Bill to enable part-sold developments to continue to sell the unsold properties with a ground rent, provided those properties were built when it was lawful to charge a ground rent. That strikes me as proportionate. We are not dealing with a huge problem or a huge number of properties, but with some 4,000. My proposal seeks to avoid the confusion and difficulty that would arise with two different types of tenures in the same development. That seems a not unreasonable thing to ask Ministers to consider in Committee and on Report.

--- Later in debate ---

[The Minister for Housing (Christopher Pincher)]

I thank the Front Benchers from the official Opposition for their support for the Bill. I am grateful to them, as is the whole House. It is a pleasure to see them still in their places. We know there is an Opposition reshuffle going on. It must feel to them that it is taking as long for the Leader of the Opposition to conduct his reshuffle as it is to reform leasehold. We trust that we can get on a little bit quicker than he can.

It has been a real pleasure to listen to the debate unfold. We have had a valuable and considered set of speeches. One of the ornamentations, one might say, of our Standing Orders is that they allow right hon. and hon. Members to range freely across the terrain in a Second Reading debate, and that is what has happened tonight. As the House will know, the Bill is narrowly focused on leasehold ground rent reform, but the debate has allowed the House to debate more freely the wider question of leasehold reform, retrospection and other matters. We will be addressing them in future, but let me say, before I make some further and more detailed points, that I am grateful to the hon. Member for Reading East (Matt Rodda) for his very thoughtful contribution. It sounds to me as though he is going to write me and the Under-Secretary of State for Levelling Up, Housing and Communities, my hon. Friend the Member for Walsall North (Eddie Hughes), a very long letter. We look forward to working with him to resolve the issues he raised.

I am grateful to my right hon. Friends the Members for Chipping Barnet (Theresa Villiers) and for New Forest West (Sir Desmond Swayne), and my hon. Friend the Member for Loughborough (Jane Hunt) for raising the issue of retirement sector ground rent reform. As the Under-Secretary of State for Levelling Up, Housing and Communities, my hon. Friend the Member for Walsall North, said, we have made it absolutely clear that the retirement sector has had an exemption of a further 12 months to get its business model in order. We believe that that is a right and proper amount of time, because there are a number of business models that the sector can use to effectively and appropriately levy reasonable charges that are transparent and fair on residents. It sounds as though my right hon. and hon. Friends may be interested in amendments. They know the process by which to pursue those, if they so wish. However, there will always be disparities between one set of buildings and another and between new buildings to which ground rents will not apply and older buildings to which ground rents will apply. I suspect that those differences will be factored into market calculations or will have little effect on the actual challenges that face residents.

[Sir Desmond Swayne]

The case for an amendment—I thank the Minister for his guidance in that respect—on the retirement sector is that it was clearly given an exemption and was assured throughout last year that that exemption would hold, but that exemption was suddenly withdrawn in January this year. Given the time that it takes to change the model and to sell such properties, this is crying out for amendment.

[Christopher Pincher]

I am grateful to my right hon. Friend; he is not so much an ornament as an energetic battery in this House. We look forward to seeing what further proposals he has in due course.

My hon. Friend the Member for Wimbledon (Stephen Hammond) put his finger on it when he described how complicated the matter of wider leasehold reform is. He asked whether the Solicitors Regulation Authority and conveyancers will be engaged; whether tighter definitions will be employed; what happens in more complex developments to repair charges; and what the interaction is with the Building Safety Bill. That is why the Bill is so narrowly defined, as the Law Society advised—so that we can get on and deal with the most egregious offences on ground rents and then move on to the more complicated matter of wider leasehold reform.

As my right hon. Friend the Member for Newark (Robert Jenrick) said in what I thought was a very eloquent and forceful speech, making it clear without saying a word how integral he has been to the advancement of these reforms, they are really quite challenging. We know that leasehold is woven into the tapestry of our law and our tort. We know that in parts of the country, particularly the north-west—I think you know it as well as anybody, Mr Deputy Speaker—businessfolk of yesteryear, factory owners, would buy land in order to build houses and tie workers to those factories. Unpicking those sorts of complicated arrangements needs to be thought through carefully. With an all-you-can-eat feast, as the hon. Member for Weaver Vale (Mike Amesbury) knows full well, if someone stuffs themselves rather too quickly and rather too much, there may be unfortunate consequences down the line. We want to avoid those sorts of challenges with this Bill.

A great deal of thought has gone into the definition of rent to avoid the sort of loopholes that the hon. Member for Manchester Central (Lucy Powell) mentioned. We want to ensure that we close loopholes that would allow freeholders or landlords to collect ground rent. We considered a closely defined meaning for “ground rent”, but at the end of the day, we came to the conclusion that that would be something of a fixed target, because experience teaches us that clever operators with clever lawyers often find loopholes in such circumstances. A flexible definition of rent will help us to ensure that the tribunal will have the flexibility to consider what actually represents a prohibited rent, even if it is not explicitly called “ground rent”—the sorts of prohibitive and prohibited charges to which she referred.

We have made it absolutely clear that we will introduce legislation to ban leasehold houses; we have made that manifesto commitment and will introduce legislation as soon as we are able. We will also ensure that the second part of our legislative reform addresses the challenges with respect to existing leaseholders and retrospection, because we are committed to addressing the historic imbalance in the system.

Meanwhile, I am grateful for the work that the CMA has done, which I hope the whole House will welcome. We want to make sure that the CMA moves as quickly as possible to tighten up on egregious practices; we look forward to its report and to the next steps that we will then undertake. I assure the House that we will move as rapidly as possible.

My hon. Friend the Member for Blyth Valley (Ian Levy) is not in his place, but he has certainly raised with me the issue of ground rent in future long leases. In January, we announced that we would legislate to change the way in which the cost of buying a freehold or extending a lease is calculated to make it cheaper and easier for leaseholders. I hope that that gives my hon. Friend some reassurance.

The Bill is the beginning of a process that we, the Conservative Government, have started and that others, for too long, have shirked. It will ensure fairness and transparency in our leasehold system. I look forward to working with right hon. and hon. Members across the House in the coming weeks to get this vital legislation on the statute book and working for leaseholders. I commend it to the House.

Question put and agreed to.

Bill accordingly read a Second time.

Leasehold Reform (Ground Rent) Bill [Lords] (Programme)

Motion made, and Question put forthwith (Standing Order No. 83A(7)),

That the following provisions shall apply to the Leasehold Reform (Ground Rent) Bill [Lords]:

Committal

(1) The Bill shall be committed to a Public Bill Committee.

Proceedings in Public Bill Committee

(2) Proceedings in the Public Bill Committee shall (so far as not previously concluded) be brought to a conclusion on Thursday 9 December 2021.

(3) The Public Bill Committee shall have leave to sit twice on the first day on which it meets.

Proceedings on Consideration and Third Reading

(4) Proceedings on Consideration shall (so far as not previously concluded) be brought to a conclusion one hour before the moment of interruption on the day on which those proceedings are commenced.

(5) Proceedings on Third Reading shall (so far as not previously concluded) be brought to a conclusion at the moment of interruption on that day.

(6) Standing Order No. 83B (Programming committees) shall not apply to proceedings on Consideration and Third Reading.

Other proceedings

(7) Any other proceedings on the Bill may be programmed.—(Craig Whittaker.)

Question agreed to.

Leasehold Reform (Ground Rent) Bill [Lords] (Money)

Queen’s recommendation signified.

Motion made, and Question put forthwith (Standing Order No. 52(1)(a)),

That, for the purposes of any Act resulting from the Leasehold Reform (Ground Rent) Bill [Lords], it is expedient to authorise the payment out of money provided by Parliament of any increase attributable to the Act in the sums payable under any other Act out of money so provided.—(Craig Whittaker.)

Question agreed to.

United Kingdom Internal Market Bill

Desmond Swayne Excerpts

Tuesday 22nd September 2020 Commons Chamber

[Mr Deputy Speaker (Mr Nigel Evans)]

Amendments and new clauses to be moved on Report may now be tabled. Members should table them through the Public Bill Office inbox: [e-mail].

[Sir Desmond Swayne (New Forest West) (Con)]

On a point of order, Mr Deputy Speaker. Some of the orders that we are about to deal with are quite dated, but I assume that they have been debated in a Committee upstairs. They touch on very intimate parts of our liberty and our choice. Is there any protocol on the circumstances in which they could be debated on the Floor of the House, rather than upstairs in a Committee stitched up by the Committee of Selection?

[Mr Deputy Speaker]

The default procedures of the House, as the right hon. Member knows, are designed such that these measures are not debated on the Floor of the House. Of course, any Committee stages upstairs could have been attended. If any of these measures do not quite fit with his understanding as to what is acceptable, he is able to shout “Object”. I will take that objection, and he will have the opportunity to have his name recorded in a deferred Division tomorrow.

Oral Answers to Questions

Desmond Swayne Excerpts

Monday 20th July 2020 Commons Chamber

[Robert Jenrick]

We said at the outset of the crisis that we would ensure that councils have the resources they need, and that is exactly what we are doing. We have now brought forward over £4 billion of funding for covid-related expenditure. We have also created the income guarantee of 75p in the pound for lost income on sales, fees and charges, and I am working with the Chancellor with respect to tax losses so that councils have the confidence to move forwards and end the financial year in good financial health.

[Sir Desmond Swayne (New Forest West) (Con)]

What will the Secretary of State do to increase development on brownfield land?

[Robert Jenrick]

The Chancellor announced the other day our £400 million brownfield fund, which will support projects across the country, and our planning reforms that we have already announced, such as the right to demolish a vacant building and turn it into new housing, are exactly designed for brownfield sites.

Terms and Conditions of Employment

Desmond Swayne Excerpts

Tuesday 3rd March 2020 Commons Chamber

[Paul Scully]

The statutory instruments implement a new entitlement to paid leave for employees who lose a child under the age of 18, or whose baby is stillborn. There is currently no specific statutory right to take time off work to grieve following the loss of a child, and although there are many excellent and supportive employers, some sadly do not extend the same compassion to their employees when these tragic circumstances occur. The SIs will ensure a statutory minimum provision on which all working parents can rely in the event of a child death or stillbirth. They will also establish a clear baseline of support for employers when managing bereavement in the workplace. Fortunately, the number of child deaths is relatively small—every year, there are around 7,500 child deaths in Great Britain, including stillbirths—but behind each individual death of a baby or child, there are parents, and a wider family, for whom the sadness and pain of that loss are unquantifiable.

[Sir Desmond Swayne (New Forest West) (Con)]

It is right that the provisions address the death of a child who has been placed for adoption, meaning that the adult who intended to adopt that child will be covered by them. Why have adults in such a situation been excluded if an objection to the adoption has been raised? Surely the grief will be no less whether or not the adoption is unopposed, yet the regulations specifically exclude an adult from receiving the provision if there had been an objection to the proposed adoption.

[Paul Scully]

I am grateful to my right hon. Friend for his question. A lot of consideration went into how to define bereaved parents, and we have extended the provisions, after a discussion following the introduction of the private Member’s Bill of my hon. Friend the Member for Thirsk and Malton (Kevin Hollinrake). Hopefully I will be able to develop that point as we continue our debate, and perhaps answer my right hon. Friend’s question.

I am conscious that many Members have personal experience of the issue, or stories of constituents who have been through this. I admire the bravery and honesty that they have displayed when speaking about the issue in the Chamber, and I hope that they will be proud of their contribution to effecting this change in the law. I extend special thanks to my hon. Friend the Member for Thirsk and Malton for promoting the original Parental Bereavement (Leave and Pay) Bill, and to my hon. Friend the hon. Member for Colchester (Will Quince) for his work to raise the profile of the issue in Parliament.

The draft Parental Bereavement Leave Regulations 2020 will give all employees a right to a minimum of two weeks off work in the event of their child’s death or stillbirth, regardless of how long they have worked for their employer. The draft Statutory Parental Bereavement Pay (General) Regulations 2020 implement a new statutory payment for parents who are taking time away from work following their bereavement, subject to the same eligibility criteria as all other statutory family leave payments.

The impact assessment that was published alongside the Parental Bereavement (Leave and Pay) Act 2018 set out that the impact on business is small, at approximately £1.2 million per year. That is unchanged by the content of the draft SIs. The policy has undergone thorough consultation with the public, and stakeholders representing bereaved parents and employers. The views expressed by Members during the passage of the 2018 Act have also been taken into account. I will now set out how the Government have decided to exercise the powers given to them through that Act.

[Sir Desmond Swayne]

Before the Minister continues, may I withdraw the awkward question that I put to him earlier, as I find that it is adequately answered in part 3 of the relevant regulations?

[Paul Scully]

I thank my right hon. Friend for his diligent examination of the papers before him. I am glad he is informed.

The regulations define a “bereaved parent” in broad terms by reference to the employee’s relationship to the child. That reflects the diversity of existing family structures, taking account of biological and adoptive parents, as well as certain foster carers and kinship carers. As far as possible, we have sought to base the definition on facts that are easily identifiable to the employee and their employer.

Bereaved parents will be able to take two weeks’ leave from their job, and they will have the choice of whether to take those weeks consecutively or non-consecutively. The regulations provide a window of 56 weeks, beginning with the date of death, in which the entitlement can be exercised. Bereaved parents will therefore be able to take time off in the immediate aftermath of the death, at a later point—for example around the first anniversary of the death—or on both occasions, as they see fit.

Consistent with other rights to family-related leave, the employee will be required to give notice to their employer before taking parental bereavement leave, and such notice can be given orally. The notice required for leave will vary depending on when leave is taken in relation to the date of death or stillbirth. A very short notice period is required for leave taken soon after the death, whereas one week’s notice is required for leave taken later in the 56-week window. In both cases, the notice required for leave is designed to be minimal and to place as little burden on the employee as possible.

To claim statutory parental bereavement pay, the employee must provide notice to their employer in writing. Notice for pay can be given after the leave has been taken, meaning that that requirement will not create a barrier to a bereaved parent taking time off. In no circumstances will an employee be required to produce their child’s death or stillbirth certificate in order to access that entitlement. The regulations mean that no evidence is required for a parent to exercise their right to take leave, but to be eligible for pay, an employee will be required to provide minimal evidence. Such evidence will be a written self-declaration that they meet eligibility conditions regarding their relationship with the child, together with confirmation of their name, and the date of the child’s death or stillbirth.

Throughout my remarks I have referred to employees, and that is because parental bereavement leave and pay are employment rights, meaning that individuals who have a different employment status will not qualify. That is consistent with all other statutory parental leave and pay entitlements.

The provisions in the statutory instruments will provide bereaved parents with an important space to grieve following the death or stillbirth of their child. The change in the law will also send a signal to employers about the importance and value of recognising bereavement, and of providing adequate support for parents in such circumstances. I commend the regulations to the House.

Terrorist Offenders (Restriction of Early Release) Bill

Desmond Swayne Excerpts

Committee stage & 3rd reading: House of Commons & Committee: 1st sitting: House of Commons & 3rd reading & Committee: 1st sitting
Wednesday 12th February 2020 Commons Chamber

[Nick Thomas-Symonds]

I know the hon. Gentleman nods his head, but I am not comfortable with that position.

The second point is that I firmly believe we can tackle this issue of terrorism and remain signatories to the European convention on human rights. That is essentially the Government’s position here today, and I really do not think that we need to get into this debate because the Government have clearly stated that the Act—or the Bill, as it currently is—is compliant with article 7. If people wish to challenge that in the courts, that is a matter for them, but the Government must be confident in their legal position.

Under the Human Rights Act, each Bill that comes before the House contains a sentence on its front page to show that Ministers have considered whether it is compatible with that Act. If they had wished, the Government could have stated in the Bill that they did not think it compatible with the Human Rights Act, but they wanted us to proceed regardless. They did not do that, however, and they clearly state on the Bill their belief that it is compatible with the Act. We have heard a case law of history from the hon. Member for Stone (Sir William Cash), and others, but that is the Government’s position, and for those reasons I cannot support the amendment. I understand that he will not push it to a vote, and the debate will continue in the other place, but this is not an amendment that would have found favour on the Labour Benches.

Let me return to new clause 1. I will not push the idea of an independent reviewer to the vote—I will not frustrate the passage of the Bill in that way. However, it would assist the Committee if the Minister set out how Members will be able to scrutinise the programme of de-radicalisation over the next few years, and how we can have the information before us—whether from the Ministry of Justice directly or in another way—to assess how it is working.

The former Prime Minister, the right hon. Member for Maidenhead (Mrs May), intervened on the Justice Secretary during his opening speech, and said that she felt there had been a lack of success in the de-radicalisation programmes. She is right, and we need to see some success in the years ahead. I will not push new clause 1 to the vote, but I hope the Minister will provide some assurances about how such scrutiny could take place.

[Sir Desmond Swayne (New Forest West) (Con)]

I do not intend to detain the Committee long, Dame Eleanor, and the Minister should consider this not so much a probing amendment as a prodding amendment—it is my intention to prod the Minister.

The purpose of my amendments is stunningly obvious. At lines 34 and 37 I wish to remove “two-thirds”, and insert the words “nine-tenths”. In reality, many sentences, even for acts of terrorism such as the possession of terrorist promotional material with intent, give rise to a surprisingly short sentence, such as four years. In such a case, the difference between half the sentence, as currently served, and two-thirds, is a mere six months. Admittedly, extending that to nine-tenths of the sentence does not address the nature of the problem—that is why this is a prodding amendment—but the fact is that sentences are too short.

There is a general problem of honesty in sentencing. When a judge hands down a sentence in court, all those in the know work out on the back of a fag packet what it means in terms of imprisonment, but the public, who are generally not in the know, do not understand that the sentence is not that at all. They would be scandalised if they knew.

[Sir William Cash]

Does my right hon. Friend remember a recent case of two treasure hunters who I think got as much as 10 years because they had not declared a treasure trove? Compare that with somebody who is intent on murdering people on the streets of London, or anywhere else.

[Sir Desmond Swayne]

That is the random caprice of the judiciary! Returning to the issue before us, on the specific point of sentencing for terrorist acts, we must be clear in our minds about what intention lies behind our whole sentencing policy. I believe that fundamentally it must be to secure the reformation of the offender before he is released. The problem is that existing strategies for reforming offenders, and de-programming them from their ideology, are somewhat untested. Those that are tested—such as the programme run in Saudi Arabia, which has been shown to be effective—take a relatively long time. I suggest, therefore, that that lends itself to an indeterminate sentence to detainment at Her Majesty’s pleasure until a licensing authority, the Parole Board, has decided that the offender is safe to be released. That is the purpose of my amendment: merely to contribute to that debate.

Criminal Law

Desmond Swayne Excerpts

Tuesday 28th January 2020 Commons Chamber

[Chris Philp]

It has been 47 days since the general election, and these measures deliver on a crucial manifesto commitment. Taken together, they will ensure that the most serious violent and sexual offenders spend two thirds of their sentence in jail, rather than half their sentence, as is currently the case. By making this change, we both protect the public and ensure that justice is better done. We protect the public because while someone is in prison they cannot commit any further offences, and we will be increasing the length of time they spend in prison. Secondly, this change will build public confidence in the justice system in general and the sentencing regime in particular.

[Sir Desmond Swayne (New Forest West) (Con)]

Would the public’s confidence not be served if prisoners served the sentence that was delivered in court, rather than this fabrication whereby the sentence is announced and everybody works out on the back of a fag packet what it actually in means for the sentence that will be served? Why go for two thirds, up from a half—why not have the sentence that was delivered in court by a judge served?

[Chris Philp]

There are provisions, which I shall explain in a moment, to make sure that many of the most dangerous offenders serve all of their sentence in jail, but for many offenders the sentence has two parts: the part served in jail and the part supervised on licence following their release from jail. Together, those two parts make up the sentence. Moving the release point to two thirds for the category of offences we are talking about will make sure that more of an offender’s sentence is served in jail and less of it is supervised under licence. For certain categories of serious offender, as my right hon. Friend mentions, there is a legitimate public expectation that more than half the sentence will be served in prison, rather than automatic release happening at the halfway point. As the Minister responsible for sentencing, I get quite a lot of correspondence from the public and from victims of crime asking why some very serious violent and sexual offenders are released at the halfway point, which is what currently happens.

Let me be clear what this debate will not cover. The regulations do not cover serious terrorist offenders, who will be dealt with separately in a piece of primary legislation that we intend to bring forward shortly to honour a manifesto commitment. Nor will we cover the wider issues to do with sentencing, which we will consider via a sentencing White Paper and sentencing Bill later this year.