Levelling-up and Regeneration Bill (Twenty Seventh sitting) Debate

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Department: Department for Levelling Up, Housing & Communities
Alex Norris Portrait Alex Norris
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I am grateful for that answer. I am not particularly excited by how this happens; my wish is just that it does happen. But I am grateful for the Minister’s answer and his explanation of how he feels. I have absolutely no issue with it sitting as a departmental prerogative. I do not think the two things need to be in tension. The thing for me is that we will keep pushing on this point. I was not as clear, I have to say, from the hon. Gentleman’s answer as I have been from previous answers from previous Ministers that it remains the position of the Government. Perhaps that is something that will be followed up on in due course, because this is really important. The one thing we know about levelling up is that it takes active interventions and that if we leave things to the market or to how things currently are, that will not deliver, so there has to be something different in this regard. I think that this measure was something different, and improving. It has not been successful today and I will not push it to a Division, but we will, again, stay on this point. I beg to ask leave to withdraw the motion.

Clause, by leave, withdrawn.

New Clause 76

Standards Board for England

“(1) There is to be a body corporate known as the Standards Board for England (‘the Standards Board’).

(2) The Standards Board is to consist of not less than three members appointed by the Secretary of State.

(3) In exercising its functions the Standards Board must have regard to the need to promote and maintain high standards of conduct by members and co-opted members of local authorities in England.

(4) The Secretary of State must by regulations make further provision about the Standards Board.

(5) Regulations under this section must provide for—

(a) a code of conduct of behaviour for members and co-opted members of local authorities in England,

(b) the making of complaints to the Standards Board a member or co-opted member has failed to comply with that code of conduct,

(c) the independent handling of such complaints in the first instance by the Standards Board,

(d) the functions of ethical standards officers,

(e) investigations and reports by such officers,

(f) the role of monitoring officers of local authorities in such complaints,

(g) the referral of cases to the adjudication panel for England for determination,

(h) about independent determination by the adjudication panel its issuing of sanctions,

(i) appeal by the complainant to the Local Government and Social Care Ombudsman,

(j) appeal by the member or co-opted member subject to the complaint to the Local Government and Social Care Ombudsman, and

(k) the governance of the Standards Board.

(6) In making regulations under this section the Secretary of State must have regard to the content of Chapter II (investigations etc: England) of Part III (conduct of local government members and employees) of the Local Government Act 2000, prior to the repeal of that Chapter.

(7) The Standards Board–

(a) must appoint employees known as ethical standards officers,

(b) may issue guidance to local authorities in England on matters relating to the conduct of members and co-opted members of such authorities,

(c) may issue guidance to local authorities in England in relation to the qualifications or experience which monitoring officers should possess, and

(d) may arrange for any such guidance to be made public.”—(Mrs Lewell-Buck.)

This new clause seeks to reinstate the Standards Board for England, which was abolished by the Localism Act 2011, but with the removal of referral to standards committees and the addition of appeal to the Local Government Ombudsman.

Brought up, and read the First time.

Emma Lewell-Buck Portrait Mrs Emma Lewell-Buck (South Shields) (Lab)
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I beg to move, That the clause be read a Second time.

It is a pleasure to see you in the Chair, Mrs Murray. As this is probably one of the last times I will speak in this Committee, I want to thank you, your fellow Chairs, the Clerks of the Committee and all House staff.

I am presenting new clause 76, in my name and that of my hon. Friend the Member for York Central. It would increase accountability and transparency and restore public faith in local government. Since the Standards Board for England was abolished by the coalition Government in 2011, local authorities have been tasked with making up their own rules and standards of conduct for local councillors. As the current system stands, the monitoring officers, who work side by side with councillors every day of the week, are the very ones tasked with handling complaints about those same councillors. Should they feel that a complaint warrants further investigation, they can ask that the local authority’s standards committee looks further at the matter and decides on suitable sanctions. The committee can be comprised of other councillors, largely from the authority’s majority ruling group. They then decide what happens to their close colleagues and friends. They can decide whether the hearing is in public or not. If they decide to put any sanctions in place, they may be limited to, at most, simply barring them from meetings for a few weeks or taking away their ICT resources. It is abundantly clear that that system is totally unacceptable. Councillors should not be free to police themselves, and monitoring officers should not be put in such potentially impossible situations.

In 2019, a report by the Committee on Standards in Public Life highlighted the fact that the vast majority of councillors and officers maintain high standards of conduct. However, there is clear evidence of misconduct by some councillors. The majority of these cases relate to bullying or harassment, or other disruptive behaviour. We have also heard evidence of persistent or repeated misconduct by a minority of councillors. This misconduct occurs at both principal authority level and at parish or town council level.

I know all too well from my own local authority the consequences of limited checks and balances, and of processes open to interference. In 2020, the former leader of my council resigned suddenly in the wake of allegations of bullying and financial concerns, just weeks after our chief executive walked out after 10 years in post. Police and other investigations are ongoing.

--- Later in debate ---
Dehenna Davison Portrait The Parliamentary Under-Secretary of State for Levelling Up, Housing and Communities (Dehenna Davison)
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It is a pleasure to serve under your chairmanship again, Mrs Murray, in this last sitting of the Committee. I know everyone in the room is incredibly saddened about that.

I am grateful to the hon. Member for South Shields for tabling this new clause. She is right that it truly is an honour for anyone in elected life to be able to serve their community. We all must do so with the highest regard for integrity and public service. However, we will not accept the new clause. I will outline a few reasons why.

The Standards Board for England, which was established under the Local Government Act 2000, was a flawed regime. It was a deliberate decision in the Localism Act 2011 to abolish it. During its short existence, the Standards Board for England allowed politically motivated and vexatious complaints, which had a chilling effect on free speech within local government. As a central Government quango, it was clearly incompatible with the principles of localism.

The Government’s position remains unchanged since then. That was recently restated in our response to the Committee on Standards in Public Life’s review of local government ethical standards. The Government consider that it is the right of the electorate to determine who represents them and that local issues are best resolved locally. The abolition of the Standards Board restored power to local people. The new clause would effectively reinstate that flawed regime. All councillors are ultimately held to account via the ballot box. On that basis, I ask the hon. Lady to withdraw the new clause.

Emma Lewell-Buck Portrait Mrs Lewell-Buck
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I thank the Minister for that response. We could rehash all the arguments that were heard last time, but I will not detain the Committee for long. The Minister claims that there were politically motivated and vexatious complaints. The other argument is that there were some genuine complaints. Sanctions were put on councillors and it stopped them from acting in such a manner in the future. Of course the electorate can decide, but sometimes they cannot decide for four years, which is a long time if somebody is abusing public money and their position. For now, I beg to ask leave to withdraw the motion.

Clause, by leave, withdrawn.

New Clause 78

Responsibility of executive councillors to answer questions

“(1) Chapter 2 of the Local Government Act 2000 (executive arrangements) is amended as follows.

(2) After section 9DA (functions of an executive: further provision) insert—

‘(9DB) Responsibility to answer questions

A councillor who is a member of an executive must take all reasonable steps to give a timely answer any question about the executive, its functions or the local authority (including about standards of conduct) from any councillor of the local authority that is asked—

(a) in writing, or

(b) orally in a council meeting.’”—(Mrs Lewell-Buck.)

This new clause would establish a legal requirement for executive councillors to answer written questions from fellow councillors and oral questions in council meetings.

Brought up, and read the First time.

Emma Lewell-Buck Portrait Mrs Lewell-Buck
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I beg to move, That the clause be read a Second time.

The new clause is in my name and that of my hon. Friend the Member for York Central. I will be brief; I sense that the mood of the Committee is that everyone would like us to finish as soon as possible. This new clause is in much the same spirit as new clause 76 and new clause 79, which we will consider later. Local government can be a mystery to many people. Anyone logging on to their council’s website or attending a meeting would testify to how confusing procedures can be. In this place, those who hold the position of Secretary of State or Minister are rightly asked questions in the Chamber, in the public domain. We may not always like the answers—in fact, I very rarely do—but the process allows a level of public accountability. In local councils, though, it is up to local councillors whether they answer questions from other members. I am aware that the executive members of many councils already do, but I have also witnessed the opposite approach, where every single question is dismissed, shut down or deferred for a written response. Surely those in senior elected positions, such as council leaders, or cabinet members who hold responsibility for a service and budgets, should answer questions from other members. To refuse to do so is to be unaccountable. New clause 79 seeks to positively enhance the public’s faith in their local government representatives. Once again, I look forward to the Minister’s views.

Dehenna Davison Portrait Dehenna Davison
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I am grateful to the hon. Lady for the new clause, which has a noble aim. I think we all believe that the transparency of any executive, national or local, is incredibly important. Accountability is equally important, particularly considering the point about trust in politicians and politics.

As the hon. Lady outlined, the new clause would put into statute a requirement for executive councillors to answer questions from other councillors. It is vital that back-bench councillors be able to hold the executive to account. In their published constitutions, many councils will already set out the procedure for both elected members and members of the public to ask questions at full meetings of the council, or at any other committee meeting. However, we firmly believe that the Government would be going beyond the role that they should play in local matters if they required in law that such councillors answer questions. Local authorities are already subject to checks and balances as part of the local government accountability framework. In addition, authorities with executive governance arrangements are required to have overview and scrutiny committees, governed by statutory guidance, to ensure that members of the authority who are not part of the executive can hold the executive to account. It would not be right for central Government to dictate the minute details of local authority arrangements, although I appreciate the noble aim behind the new clause. I kindly ask the hon. Lady to withdraw her new clause.

Emma Lewell-Buck Portrait Mrs Lewell-Buck
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I thank the Minister, and I am happy to beg to ask leave to withdraw the motion.

Clause, by leave, withdrawn.

New Clause 79

No role for councillors in recruitment or duties of monitoring officers

“(1) The Local Government and Housing Act 1989 is amended as follows.

(2) In section 5 (designation and reports of monitoring officer), after subsection (1) insert—

‘(1ZA) No elected councillor of a relevant authority in England may have any role in—

(a) the recruitment or selection of the officer designated monitoring officer under subsection (1), or

(b) the performing by the monitoring officer of the functions imposed by this section and, where relevant, section 5A.’” —(Mrs Lewell-Buck.)

This new clause would prohibit the involvement of elected councillors in the recruitment or duties of officers appointed to monitor lawbreaking, maladministration, failure and injustice within a local authority or its executive.

Brought up, and read the First time.

Emma Lewell-Buck Portrait Mrs Lewell-Buck
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I beg to move, That the clause be read a Second time.

I appreciate that the majority of local authority appointments of chief officers such as chief executives or monitoring officers are made after a robust interview that has followed human resources processes. Those processes can involve senior elected members. However, I have witnessed, and am aware of local authorities that experience, inappropriate or partial influence being exerted when officers are conducting operational business. I recall once sitting with a chief executive and a leader, and the leader was demanding that something be done that the officer was deeply uncomfortable with. The leader shouted at the chief executive, “I hired you; I will fire you if you don’t do this.” I could go on, but I think the point is made.

It is clear why there should be no elected member involvement whatsoever in the appointment of any local authority monitoring officer. These officers work hard and are incredibly professional. They are already working in politically restricted, tightly governed senior roles. They should never be exposed to unacceptable scenarios, such as the one I just outlined. That is why new clause 79 is important. I hope the Minister agrees.

Dehenna Davison Portrait Dehenna Davison
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I am sure the hon. Lady will not be surprised to hear that we will not accept the new clause. First, I want to say that the example of terrible practice that she witnessed is not isolated. All examples of bad practice absolutely must be called out, but there is a strict framework already in place. The new clause appears to seek to protect the objectivity of monitoring officers, and their ability to speak truth to power—that is, to elected members. The new clause requires that elected councillors have no role in the selection or recruitment of a relevant authority’s monitoring officer. Of course, the monitoring officer is one of three crucial statutory officers that any principal local authority must have, the other two being the chief executive and the section 151 officer. Some councils may already have designated the responsibility for appointing the monitoring officer to the head of paid service, but we must remember that councils are independent, democratic bodies that have the freedom and flexibility to manage their workforce. If they choose to operate a member appointment panel, it would be neither appropriate nor consistent with the principles of localism to prevent them from doing so.

The new clause would also mean that elected councillors played no role in a monitoring officer’s performance of their duties. However, monitoring officers’ specific speak-truth-to-power role is already protected in their responsibilities under sections 2 and 5 of the Local Government and Housing Act 1989. Those statutory responsibilities include reporting anything that they believe to be illegal or to amount to maladministration relating to the conduct of councillors and officers, or to the operation of the council’s constitution. On that basis, we do not feel that the new clause is necessary, and it is contradictory to the core principles of localism in which we so strongly believe. I ask the hon. Lady to withdraw it.

Emma Lewell-Buck Portrait Mrs Lewell-Buck
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I thank the Minister for that response. My new clause would have given an extra layer of protection. She has misunderstood how impossible an environment can make it to speak truth to power. The clause would have helped people who are stuck in that situation, but I am happy to withdraw it. I beg to ask leave to withdraw the motion.

Clause, by leave, withdrawn.

New Clause 80

Licensing scheme: holiday lets

“(1) The Secretary of State must make regulations to require each relevant local authority in England to introduce a local licensing scheme for holiday lets.

(2) Any local licensing scheme introduced pursuant to regulations made under subsection (1)(a) must require any owner of a holiday let to—

(a) obtain any fire, gas and electricity safety certificates as specified by the scheme;

(b) ensure that the holiday let complies with any health and safety regulations specified by the scheme, including the completion of any risk assessments required by those regulations;

(c) secure a licence for the holiday let from the local authority prior to trading;

(d) obtain a licence and renew this licence—

(i) every three years,

(ii) when the property changes ownership, or

(iii) when there is a change in the person holding day to day responsibility for the property; and

(e) not let out a property without a valid licence.

(3) A local authority introducing a licensing scheme must—

(a) outline—

(i) the terms and conditions of the licence,

(ii) the application process for securing the licence, and

(iii) the licence renewal process;

(b) determine an annual licence fee for each licensed property;

(c) inspect any property prior to issuing a licence;

(d) require the owner of a short term holiday let to —

(i) apply for and hold a licence to operate for each property they let prior to trading,

(ii) pay a licence application fee and annual charge for the licence,

(iii) renew the licence as required by the local authority under their licensing scheme,

(iv) pay any fines associated with breaches of a licence as laid out in the local licensing scheme,

(v) ensure that the holiday let complies with any health and safety regulations specified by the scheme, including the completion of any risk assessments required by those regulations, and

(vi) provide up to date property details including details of who will hold responsibility for the day to day management of the property;

(e) maintain an up to date list of all licensed short term holiday let properties within the local authority area to include—

(i) the address of the property,

(ii) whether this is a shared property occupied by the owner or a separate let,

(iii) how many people are eligible to stay at the property, and

(iv) how many days of the year that the property will be advertised for letting and be let;

(f) inspect the property following a report from the public of an issue of concern relating to the property or to any other property owned by the same person;

(g) monitor compliance with the licensing scheme;

(h) publish an annual report on the number and location of licences including the number and location of licences in each ward and their impact on local residential housing supply and details of any breaches reported and fines issued; and

(i) provide residents adjacent to the short term holiday let contact details of their enforcement officer should they experience any issue at the property.

(4) A licensing scheme must allow the local authority to—

(a) set out details of any area where the granting or renewal of licences will be banned, suspended or limited;

(b) set limits and or thresholds on the level of the licencing permitted in any area;

(c) require property owners to renew their licences every three years, or when a property changes in ownership;

(d) issue fines or remove a licence of a property if—

(i) fire, health and safety conditions are breached,

(ii) criminal activity occurs at the property, or

(iii) excess noise and nuisance or anti-social behaviour rules as set out in the licensing conditions are repeatedly breached, or

(iv) the registered owner or the person listed as holding responsibility for the property has had licences on other properties removed; and

(e) issue penalties or licensing bans on those renting properties without a licence.

(5) In this section—

An ‘area’ may be—

(a) a polling district;

(b) a ward; or

(c) the whole local authority area;

‘holiday let’ means—

(a) a dwelling-house let for the purpose of conferring on the tenant the right to occupy the dwelling-house for a holiday, or

(b) any part of a dwelling-house let for the purpose of conferring on the tenant to occupy that part of the house for a holiday;

‘relevant local authority’ means—

(a) a district council in England;

(b) a county council in England for an area for which there is no district council;

(c) a London borough council;

(d) the Common Council of the City of London.”—(Rachael Maskell.)

This new clause provides for the introduction of a licensing scheme for holiday lets.

Brought up, and read the First time.

Rachael Maskell Portrait Rachael Maskell
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I beg to move, That the clause be read a Second time.

It is a pleasure to see you in the Chair, Mrs Murray, for the last time on this Bill. The new clause is in my name, and the name of hon. Members from across the House; it also has much support from colleagues who have not been able to sign their names to it because of their position in Government.

I hope that the Government will buck the trend and accept the new clause, because it is so important. Up and down the country, there is a sharp rise in the number of Airbnbs. Across the world, jurisdictions are licensing Airbnbs in order to control what is happening not just in the holiday industry, but in housing. This new clause would address the crisis in communities.

Over the last five years, there has been a sharp rise in Airbnbs in my community; the number is 2,118 and still rising sharply. The reason is that private rented accommodation is being flipped into Airbnbs because of the differentiation in tax introduced by George Osborne to try to address the buy-to-let market. Unfortunately, that is having serious consequences. Our stock of housing for purchase is also being hoovered up, mainly by purchasers from London and the south-east. They are buying family houses as assets to turn them into Airbnbs. That impacts not just housing, but communities, which are becoming more fragmented and fractious. Weekend after weekend, there are parties in these properties—that happens in the urban setting that I represent—and it causes people to feel unsafe in their community. It is breaking up communities.

It is vital that the Government moves forward by supporting this new clause. They should also look at what is happening in Scotland, where the Government have just passed legislation to license Airbnbs, not just register them. I appreciate that the Government Whip, the hon. Member for Mid Worcestershire, took forward a consultation on Airbnbs in his former role; however, any scheme has to go further than registration.

This evening, Councillor Michael Pavlovic in York will move a motion that would allow local authorities to go as far as they can on the issue, but it will not be far enough. That is why we need legislation to license Airbnbs. I draw the Minister’s attention to my private Member’s Bill, which is due for its Second Reading on 9 December. I trust that we can work together to ensure that that will be the moment—if not today—that we see the full licensing of Airbnbs.