Building Safety

Debate between Baroness Laing of Elderslie and Luke Hall

Tuesday 29th June 2021 Commons Chamber

[Luke Hall]

I hope the hon. Gentleman will forgive me, but I must get through the many points that have been raised. I want to try to answer as many as I can and leave time for the Chairman of the Select Committee to sum up. If I get through all the questions, I will certainly give way.

We are trying to take a safety-led approach. We have prioritised high-rise buildings of 18 metres and above, a point that was raised a number of times today. We have put in place a funding package of more than £5 billion for the building safety programme. That is the largest ever Government investment in building safety and it has been designed particularly to accelerate the pace of work on remediating the highest-risk and most expensive defects related to unsafe cladding such as ACM cladding and high-pressure laminates, first filling in where developers or building owners have been unable or simply unwilling to pay. Despite many of the challenges of the past months, we have made significant progress. Over 95% of high-rise buildings with unsafe ACM cladding identified by the beginning of last year have now been remediated or works are on site right now getting on with the job. Some 15,000 homes are now clear of unsafe ACM cladding, with the work finished.

Support goes well beyond ACM cladding removal. Where there are buildings that have other unsafe cladding systems, we are taking measures to protect residents’ safety and their exposure to disproportionate costs. Our building safety fund will remove unsafe non-ACM cladding on high-rise buildings, get that cladding replaced, and get it done as fast as possible. Over 1,000 decisions have been made. Despite many building owners failing to provide the basic information required, we have already allocated over £400 million, with 685 buildings now proceeding with a full application. With the announcement in February of an additional £3.5 billion of funding being made available, we will soon be able to extend that support to even more affected households. The public funding does not absolve the industry from taking responsibility for failures that led to unsafe cladding materials being put on these buildings in the first place. We expect responsible organisations to live up to their obligations. Where they have not, we have supported, and will continue to support, enforcement actions to compel them to do so.

We are also determined to ensure that these high-rise buildings are somewhere decent, safe and secure, and can be bought with a mortgage sold without unnecessary red tape and insured at a fair price. The lending and insurance industries continue to be risk-averse when it comes to high-rise residential buildings. That is why we are working to inject a more proportionate approach into the market, and that is bearing fruit. The majority of lenders—about 80% of the mortgage market—now take a less risk-averse approach to the assessment of high-rise buildings.

I am pleased that the guidance from the Royal Institute of Chartered Surveyors means that nearly half a million flat owners will no longer need to go through the onerous process of requesting an EWS1 form. Recent data from one of the major lenders suggests that an EWS1 already exists for 50% of mortgage applications where one has been requested, and we are working to ensure that this picture continues to improve. Lenders are also reporting that fewer flats require an EWS1, and of that those that do, many do not need expensive remediation work to be carried out. This will make a huge difference to house owners and potential buyers as well.

For buildings that might need further investigations, we are making that easier by providing nearly £700,000 of funding to train up to 2,000 surveyors, working with the British Standards Institution to set standards and develop a bespoke insurance model to ensure that surveyors can continue to pick up this work. We recognise that access to affordable building insurance for high-rise buildings is an issue, and we are working with the industry to support market solutions. Some have already decided to step into the market for new customers, and of course we want others to follow.

The hon. Member for Edinburgh North and Leith (Deidre Brock) raised the issue of building industry contributions. We have been clear that building owners and the industry should make buildings safe without passing costs on to leaseholders. Owners should consider all routes to meet costs, protecting leaseholders where they can—for example, through warranties and recovering costs from contractors for incorrect or poor-quality work. We have seen many responsible developers and building owners doing this. Taylor Wimpey has set aside £165 million, Barratts £82 million, Persimmon £75 million, and Bellway £130 million. But where companies have not lived up to their responsibilities, it would be unfair for taxpayers, many of whom are not homeowners themselves, to foot the bill. That is why we have announced a new developer levy and a new tax ensuring that the industry makes a fair contribution to the cost of remediating historical safety defects. That will target developers seeking permission to build higher-rise buildings in England under the new regime that we are introducing through the building safety Bill, and we have already set out to consult on a new tax that would be levied on the largest housing developers.

I note the suggestion by my hon. Friend the Member for Kensington (Felicity Buchan) of a tax on building products. I thank her for that and I am happy to discuss it with her further. A number of hon. Members mentioned the building safety Bill, and the hon. Member for Sheffield South East (Mr Betts) asked when it will be published. I know he hears the word “imminent” many times, but this truly is imminent, and I can assure him of that.

We must ensure, as we look to the future, that nobody is put at risk by unsafe homes again. We must put in place proactive mechanisms for managing fire and structural safety risks, as well as ensuring that residents and leaseholders are kept safe and feel empowered to tackle safety defects and shoddy workmanship. That is what the building safety Bill aims to deliver through the biggest improvement to building safety for a generation. It will ensure greater accountability and responsibility for fire and structural safety issues throughout the life cycle of buildings.

Building on the Fire Safety Act 2021, the building safety Bill will establish a new building safety regulator to swiftly hold to account anybody who does not follow the rules. It will ensure that products used in the construction of buildings are bound by rigorous safety standards, and it will give residents a stronger voice in the system through the creation of a statutory residents panel, which will empower residents to influence and contribute to the work of the building safety regulator. Additionally, a new building safety charge will give leaseholders greater transparency about the costs incurred in maintaining a safe building in the new building safety regime, and the new homes ombudsman will improve redress for new build homebuyers, avoiding the need to pursue costly redress through the courts.

It is right that we have prioritised action on high-rise buildings, but where the risk to multiple households is greater when fire spreads, we are also acting decisively to remediate lower-rise residential buildings of between 11 metres and 18 metres. My hon. Friend the Member for Kensington again raised this issue, among many others. We are establishing a finance scheme to ensure that that cladding can be remediated where that is needed. It means leaseholders will never have to pay more than £50 a month. We are working now to develop the details of the scheme to ensure that it protects leaseholders, prioritises affordability and accelerates remediation. We will provide more detail on the scheme as soon as we are able to, and we are working hard to make progress now.

The right hon. Member for East Ham (Stephen Timms) talked about waking watch. We absolutely recognise that some leaseholders have been unjustly left picking up the bill for interim safety measures. That is why the Secretary of State announced a £30 million waking watch scheme. This is paying for the installation of alarms in between 300 and 460 buildings, benefiting over 26,500 leaseholders, who are expected to save over £137,000 a month.

The hon. Member for Cardiff South and Penarth (Stephen Doughty) talked about engagement with the Welsh Government. The letter he sent on 23 June raised a number of issues, and I will absolutely make sure that it is responded to.

My hon. Friends the Members for Stoke-on-Trent South (Jack Brereton) and for Stoke-on-Trent Central (Jo Gideon) talked about the need to invest in Stoke-on-Trent to make sure that regeneration opens up brownfield developments in the city. They took this opportunity to outline the components of their levelling-up fund bid. I absolutely note that and their enthusiasm for the success of the bid, and I thank them for it.

Despite the challenges of the pandemic, we have made progress. We have accelerated support to drive forward the remediation of unsafe cladding systems. Over 95% of high-rise buildings identified at the beginning of last year as having unsafe ACM cladding are now having it removed—the works are under way there. We have strong Government support to protect leaseholders from unaffordable costs. We want to be fair to taxpayers, while reassuring lenders that remediation costs will not become unmanageable. This will be a complete overhaul of the regulatory framework for fire and structural safety, led by a once-in-a-generation change to the building safety framework, with sanctions to tackle irresponsible behaviour to ensure people are safe and feel safe in their own homes. We will continue to work tirelessly to bring in the lasting change we need so that everyone in our country lives somewhere that is decent, safe and secure.

[Madam Deputy Speaker (Dame Eleanor Laing)]

The House may wish to know that England have beaten Germany 2-0.

Council Tax: Government’s Proposed Increase

Debate between Baroness Laing of Elderslie and Luke Hall

Monday 25th January 2021 Commons Chamber

[Madam Deputy Speaker]

Order. This is a debate; there are, therefore, differing points of view on either side of the House—[Interruption.] Do not shout at me in the Chair.

[Luke Hall]

The Opposition motion calls on the Government to drop

“plans to force local councils to increase council tax”—

another complete misunderstanding of the system of local government finance. Decisions on council tax levels are, of course, for local councils themselves. We are allowing councils the flexibility to raise council tax up to the ceiling that we have set, with a 2% council tax referendum limit—a ceiling that many Labour councils have been asking us to raise—and an additional 3% for adult social care responsibilities.

We are also giving councils the flexibility to defer rises in the adult social care precept for next year, if that is what councils locally decide and if local circumstances require that. Vitally, we are also providing councils with £670 million of new funding to enable them to continue to reduce council tax bills next year for those least able to pay—a point that was made so well by my hon. Friend the Member for East Surrey (Claire Coutinho).

We on the Government side of the House trust councils to make the right decisions on council tax; the Labour party cannot even persuade its own councils, which have been writing to us to ask for greater flexibility so that they can raise council tax even more. The Labour party cannot even persuade the Labour group on the LGA, which would see the cap on council tax rises scrapped altogether, as my hon. Friend the Member for Dudley South (Mike Wood) pointed out.

Several Members made points about the Government’s record on council tax. My hon. Friend the Member for Blackpool North and Cleveleys (Paul Maynard) put it very well: under the Labour Government, council tax doubled, it has trebled in Wales and the Labour Mayor of London wants to raise it by 10%, whereas under the Conservatives it has fallen in real terms since 2010. We have introduced council tax referendums, which put an end to the crude universal capping system of the past; we put in place voluntary council tax freeze schemes for five years, which helped to deliver the lowest average increases across England since council tax was introduced; we have introduced local council tax support schemes, requiring councils to set up schemes to help those least able to pay; and we have given councils flexibility over discounts and exemptions and helped them to better manage local housing markets through the introduction of the empty homes premium.

A number of Members raised the issue of social care and were absolutely right to do so. We are funding councils for social care into the future, as my hon. Friend the Member for Dudley South pointed out. The provisional local government finance settlement for next year will provide councils with more than £1 billion of additional funding for social care next year, including £300 million of new grant funding. That is in addition to the £790 million that can be raised through the adult social care precept, if councils decide to. That is, of course, on top of the £1 billion social care grant announced last year, which is being maintained in line with our manifesto commitment.

I was surprised to hear the hon. Members for Nottingham South (Lilian Greenwood), for Worsley and Eccles South (Barbara Keeley) and for Denton and Reddish (Andrew Gwynne)—the former shadow Secretary of State, for whom I have huge respect—all talk about the social care precept raising money in the wrong places. They obviously have not studied the detail of the settlement, which says clearly that we have put aside £240 million to equalise the differences in adult social care precepts. I am afraid they just have not read the detail of the settlement. My hon. Friend the Member for Middlesbrough South and East Cleveland (Mr Clarke) pointed out the pressures on household budgets, which are exactly why we have introduced the £670 million scheme.

The Opposition misunderstand and misunderstood the local government finance system. They cannot grasp the fact that it allocated over £1 billion more to local government than councils are spending in response to the pandemic. We take no lectures from a party that doubled council tax when in office and have trebled it in Wales. We are ensuring that councils have the resources they need to come out of this pandemic stronger, and that is why we are supporting councils with a £2.2 billion rise in core spending power and £1.5 billion of extra support to help with covid costs.

We are giving councils the flexibility to defer any increases next year if they believe it is right for their community. We are protecting residents from the sort of outrageous tax hikes that were so commonplace under the last Labour Government. Councils have done an incredible job of responding throughout the pandemic, and we are standing behind them.

[Madam Deputy Speaker (Dame Eleanor Laing)]

I should point out that in current circumstances, when hardly anyone is here, there is no question of my being able to decide this Division on the voices, as there are so few representative voices present. Therefore, I call a Division.

Question put.