Levelling-up and Regeneration Bill

Emma Lewell-Buck Excerpts

Report stage
Wednesday 23rd November 2022 Commons Chamber

[Dame Caroline Dinenage (Gosport) (Con)]

I rise to speak to new clause 7, which is tabled in my name. I thank Members from across the House for supporting it and the Minister for the listening to my pleas. In short, new clause 7 intends to prevent the imposition of council tax on individual tenants of a room in a house with shared facilities, or in a licensed house of multiple occupancy.

This issue came to light in my Gosport constituency where the high street, like so many others up and down the country, is in decline. A local businessman, Daryn Brewer, identified an opportunity to breathe new life into our high streets and at the same time create affordable accommodation for young professionals. He is doing that by buying up empty disused shops, redeveloping them and bringing local independent traders into the shop space while converting the spaces above into high quality shared living accommodation. The residents have high-spec individual ensuite bedrooms, but shared kitchen, laundry and workspaces. They are effectively professional houses of multiple occupation and are known as Pro Pods. This is levelling up in its most pure form: reimagining our high streets as places where we do not just shop, but live, work, socialise and spend our time. At a stroke, it makes low-cost, high quality affordable living accommodation and takes some of the strain off the housing market.

Generally speaking, HMOs are in band C or D for council tax and are therefore classed as one dwelling, meaning the landlord is legally responsible for paying the council tax for that single dwelling. However, over recent years there has been a growing trend for the Valuation Office Agency to start to re-band those bedrooms as individual dwellings in and of themselves, meaning residents across Gosport, Portsmouth and, increasingly, across the whole country, are being hit with unexpected and completely unaffordable council tax bills. The VOA has stated that it is not taking a new approach to HMOs or systematically revaluing HMOs. However, this is a growing issue, one that my right hon. Friend the Member for Portsmouth North (Penny Mordaunt) and I have brought to the attention of successive Ministers over the last couple of years, and one that colleagues across the House are increasingly seeing among their local landlords and developers. That is evidenced by the number of Members backing new clause 7.

There are several reasons why this issue poses a problem. First and foremost, it is placing a huge financial strain on people, often young professionals at the very start of their careers, who are suddenly landed with a council tax bill of up to £1,000, even after they have been allocated the single person discount. In some cases, it has even been backdated three years, so there could be a bill of up to £3,000. We can imagine how this is causing untold distress and misery, especially at a time when other living costs are rising. There have even been incidents of previous tenants being chased for a council tax bill they did not know they owed after they had moved out, due to reclassifying and backdating—a dreadful situation.

Shared housing is a core pillar of the housing sector. In 2018, HMOs provided up to 3 million sharers with rental accommodation across England and Wales. It is a significant contribution to the housing sector, so this issue has the potential to become a major problem. If these bedrooms start to be classified as dwellings and become band A, where the tenant is legally liable for paying the council tax, goodness knows where it will end. There are other knock-on impacts of this trend that I want, very briefly, to put on the record.

Disaggregation creates individual units, which are usually not self-contained. Once disaggregated, there is nothing to stop a landlord putting cooking facilities into these places retrospectively, thus creating miniature flats. Those do not meet housing standards or create quality living environments.

We also have the issue of housing numbers. Bedrooms within HMOs that are rebanded create a “dwelling” in law. That means that those bedrooms are added to the UK housing numbers, even though they do not meet the minimum national space standards and are not self-contained. Unwittingly, the VOA, local authorities and therefore, ultimately, the Government would be fudging the housing numbers. For each bedroom that is rebanded by the VOA as a dwelling, local authorities can claim on the new homes bonus scheme. That suggests that the Government could award those bonuses to local authorities without proper homes being created through the usual planning process.

If this continues and bedrooms keep being rebanded, the Government could be seen to be encouraging the creation of dwellings that simply do not meet national space standards. Unless they grip that growing issue, they will potentially create substandard rental properties that would contradict the renters reform Bill and the decent homes White Paper.

The Bill is fundamentally about levelling up our wonderful country. By not addressing this issue, we are doing a disservice to our constituents, many of whom are young strivers, simply trying to build their careers and make their way in life. They have been hit unexpectedly with an extra financial strain that they have not budgeted for and certainly do not deserve, at a time they can least afford it.

I deeply regret that I had to table an amendment to put a stop to this. I have frequently raised the issue with the relevant Departments, but it has fallen on deaf ears. It has led me to fear, until this point, that some people working in this area may have forgotten that council tax is a property tax, not a head tax. It should not be down to individuals who are paying simply for a bedroom to foot the bill.

That is why I am deeply grateful to the Minister and the Secretary of State for engaging with me so brilliantly and openly on this issue, and for confirming that they will have an accelerated consultation on the issue with a view, potentially, to introducing the relevant regulations to prevent this happening and to address it. That will need to cover how we deal with the sites that have already been revalued, the bills that have been issued and the arrears that have been incurred, so that is not straightforward.

I am grateful for the Minister’s commitment to address this matter, and I have no doubt that she will. I know that she cares deeply about levelling up. She is an excellent Minister and I know that she wants to seize this once-in-a-generation opportunity to get the Bill right and deal with this issue. I thank the Minister for her commitment. I will not push my amendment to a vote and I look forward to working with her to make sure that we solve this issue once and for all.

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

I will speak to new clause 82 and amendments 71 and 72 in my name and those of my hon. Friends. New clause 82 seeks to reinstate the standards board. Every single one of us in this place should be able to get behind that, as it is not partisan; it is about restoring the public’s faith in local politics.

We have all seen examples of councillors acting outwith their role and their code of conduct. We also see, often, that the act that eventually leads to their demise follows an established pattern of behaviour spanning many years. Those around them may have been fearful of calling out their behaviour for many reasons. Last year, a councillor was sentenced after pleading guilty to a charge relating to the abuse of public trust in public office, yet he remains in post. In another area, two former council chiefs and a county council leader are due to appear in court after being charged in connection with a long-running police investigation into allegations of financial irregularity.

We all know, of course, that those cases are in the minority and that the vast number of councillors work hard for their community. However, those who behave in that way are currently given a free ride, as the framework around complaints is largely kept in-house. Councils and fellow councillors should simply not be allowed to police themselves. Such an arrangement puts officers, and particularly monitoring officers, in impossible positions. Those officers, who are in contractually and politically restricted positions, somehow have to find ways to manage governance and the expectations and pressures of political groups when the sanctions available to the standards committee are very limited and its members are political colleagues of those they are investigating. That point was noted by the Committee on Standards in Public Life, which reported:

“We have heard of cases where Monitoring Officers have been put under undue pressure or forced to resign because of unwelcome advice or decisions”.

A Local Government Chronicle survey finds that 60% of monitoring officers do not believe that they have sufficient tools to tackle serious misconduct among elected members.

--- Later in debate ---

[Mr Betts]

One of the problems with the Standards Board was that it was simply overwhelmed with complaints because residents were allowed to go to it at first instance, rather than appealing to it if their local authority did not deal properly with their case. Another problem was that parish council complaints were allowed under it. If those two issues had been addressed, the Standards Board could have dealt with a smaller number of cases, as an appeal system. It would have been a very different arrangement.

[Mrs Lewell-Buck]

My hon. Friend is correct. It is simply not in the interests of local people to have no mechanism at all to remove someone from office who is acting inappropriately. People in my area who have experienced the damage caused by our previous council leader and his supporters find offensive the suggestion that removing that level of accountability has somehow given them more of a voice or restored any power to them.

It is the greatest honour to serve our community, whether at council level or in Parliament. With that should come appropriate checks, balances and levels of accountability. The public need confidence in the system. They need to know that cases such as those that I have mentioned will never happen again. My new clause would ensure that.

Amendments 71 and 72 simply ask that the Government align the levelling-up missions with the United Nations sustainable development goal to end hunger and ensure access by all people—the poor and the vulnerable, including infants—to safe, nutritious and sufficient food all year round, and that it be measured by tracking the prevalence of undernourishment in the population and the prevalence of moderate or severe food insecurity, based on the food insecurity experience scale. It is astonishing that a Bill that attempts to level up all parts of the UK does not mention hunger or food insecurity once, despite the Government acknowledging that it is not possible to level up the country without reducing the number of children going hungry and living in poverty.

[George Eustice]

The hon. Lady is right that this is an incredibly important issue, but is it not the case that all these issues were addressed through the Agriculture Act 2020, and the requirement to publish every three years a food security report that includes very detailed chapters on household food insecurity, which is what she is concerned about?

[Mrs Lewell-Buck]

I thank the right hon. Member for that intervention. He will know that those measurements have not resulted in reduced levels of poverty. The amendments would strengthen the Government’s commitment to reducing it.

There are 14.5 million people living in poverty across our country. Poverty among children and pensioners rose in the six years prior to covid, alongside a resurgence of Victorian diseases associated with malnutrition, such as scurvy and rickets. Surely the Government must have grasped that for at least five of their own missions to succeed people need access to food. Living standards, education, skills, health and wellbeing are all deeply impacted in a household impacted by hunger. The Government’s own reporting in the family resources survey, which was made possible only after years of campaigning to implement my Food Insecurity Bill, shows that households in the north-east are more likely to struggle to afford food than those anywhere else in the country. It would be totally misguided to think that we can level up the country without addressing that issue.

We know that the figures will increase. Already this year food insecurity has risen by almost 10%. Thanks to the Government’s economic mismanagement, the biggest fall in household incomes on record will only exacerbate those levels of hunger. The Food Foundation has found that levels of food insecure households are rising, with figures for September this year showing a prevalence in nearly 10 million adults, with 4 million children also suffering from hunger. If it were not for the over 2,500 food banks in the country, those adults and children would be without food. That should be a source of great shame for Government Members.

Regional disparities, which the Bill supposedly aims to level out, are more stark when we look at the fact that life expectancy in my part of the world, the north-east, is two and a half years less than in the south-east. Increasing healthy life expectancy is a huge challenge. The pandemic revealed the serious underlying health inequalities in this country. Public health funding will play a crucial role in helping to achieve the mission; however, in the most recent allocation councils faced a real-terms cut. That is just another example of where the Government’s actions do not meet their levelling-up rhetoric.

The Government commissioned a national food strategy, which found that diet is the leading cause of avoidable harm to our health; however, the Government have ignored Henry Dimbleby’s recommendation to increase free school meals eligibility. If the Government are serious about levelling up, tackling food insecurity is vital to achieving the levelling-up White Paper’s missions. As Anna Taylor, chief exec of the Food Foundation, said:

“If the Government wants to really get to grips with the issue, a comprehensive approach to levelling-up must tackle food insecurity head on.”

The Under-Secretary of State for Levelling Up, Housing and Communities, the hon. Member for Bishop Auckland (Dehenna Davison), claimed that the amendments in Committee were not needed as the Bill is

“designed to establish the framework for the missions”––[Official Report, Levelling-up and Regeneration Public Bill Committee, 20 October 2022; c. 859.]

not the content of them. That sums up the vacuous nature behind all the missions in the Bill. By making them as opaque as possible, and lacking such content, the Government will not have to bother delivering on a single one of them.

The Government should accept this amendment today. By doing so, they would signal that at long last they accept that people are going hungry on their watch and they are eventually prepared to do something about it. I sincerely hope that they will do this, but I expect that they will not. In any event, I look forward to the Minister’s response later on.

[John Stevenson]

I want to speak to new clauses 1 and 2, but particularly new clause 1, which relates to the election of Mayors. These are straightforward new clauses and I will not be putting them to a vote, but I hope that the Government will give serious consideration to new clause 1 in particular, because I think it addresses a gap in the current devolution discussions.

When it comes to devolution, my preferred option would be for far more radical reform. I believe that local government in England is in need of substantial reform and that the Government should embrace devolution. The way to do this is to have devolution settlements right across the country with the appropriate powers and responsibilities so that we properly decentralise and also have consistency. I also think that, as part of that, the introduction of Mayors everywhere is a positive thing.