(3 years, 1 month ago)
Commons ChamberUrgent Questions are proposed each morning by backbench MPs, and up to two may be selected each day by the Speaker. Chosen Urgent Questions are announced 30 minutes before Parliament sits each day.
Each Urgent Question requires a Government Minister to give a response on the debate topic.
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May I strongly associate myself with the praise for the courage of Azeem Rafiq, the condemnation of institutional racism at Yorkshire cricket club more generally and the concerns raised by my hon. Friend the Member for Bradford West (Naz Shah) about the lack of a Government-backed definition of Islamophobia? There are two other specific things the Minister should focus on. First, last year Sport England found a 14-point gap between the percentage of white British people participating in sport and of British Asians taking part in sport. So it would be good to know what the Minister is going to do to put a target in place to bring that gap down quickly. Secondly, members of Yorkshire cricket club were raising concerns about what was going on, but the governance structures at Yorkshire clearly did not allow those concerns to get to the very top and have an impact. There is, rightly, a campaign for fans to have a seat on the board of football clubs. Is it not time for consideration to be given to fans having a place on the board of cricket clubs as well?
The question about encouraging participation is a good one. My colleague the sports Minister, who deals with this on a day-to-day basis, in his dealings with various representative sports bodies and in the way he constructs funding arrangements, is resolutely focused on increasing participation in sports across all backgrounds in this country, both ethnic and social; there are other metrics and dimensions besides just ethnicity. That is an important piece of work that he is taking forward. On representation on boards, that is exactly the kind of question Cindy Butts’s review will be addressing. I hope she is listening to today’s proceedings and will take that as an idea for her review to carry forward, because I agree with the hon. Gentleman that there were catastrophic failings of governance over many years at Yorkshire county cricket club. That is why it is right that the chairman resigned and if anyone is left from that regime, they should resign as well.
(4 years, 3 months ago)
Commons ChamberI am delighted to report to the House that the recovery of our court system following the coronavirus pandemic is very well under way. The magistrates court is recovering strongly. Disposals last week exceeded 21,000, which is more than the number of receipts, and therefore the outstanding caseload went down, as it has gone down for each of the past five weeks. In relation to the Crown court, the recovery of jury trials continues strongly, and last week over 100 were held.
The hon. Lady is quite right to draw attention to custody time limits. Of course we want to get cases heard as quickly as possible because people on remand may well be found not guilty subsequently. I do agree with her sentiments about children. I know that when judges look at listing cases, they are very mindful of that. By the end of October, we will have 250 Crown court jury trial rooms operating, which will enable us to really get through these cases as quickly as we possibly can.
Shopworkers have faced rising violence in recent years, and yet too often the perpetrators are not being brought to justice, partly, at the moment, because of lengthy backlogs in court hearings. Industry experts, business and trade unions are all calling for greater legal protection for shopworkers and for more investment in the court system. When are Ministers going to listen?
Ministers have listened. I have already explained that we have just announced an extra £80 million to support court recovery, on top of the £153 million to improve the court estate just a short time ago. As regards sentencing, the hon. Member will, I am sure, welcome the sentencing White Paper published last week, which imposes tougher penalties on serious offenders and keeps them in prison for longer. He mentions outstanding caseloads. I would remind him that the outstanding caseload in the Crown court, even with coronavirus, is lower today than it was in 2010, so we have managed to run the court system more effectively with coronavirus than the last Labour Government did without it.
I beg to move, That the clause be read a Second time.
New clause 9 would add to the Bill a duty to promote lending to small and medium-sized house builders. There has already been some conversation in Committee about the need to do a little more to help a sector of the house building industry that has been struggling in recent years. Small firms lack many of the advantages of scale of larger house builders, particularly in terms of access to finance and access to land and other assets against which to borrow that finance on good terms.
Small builders are often very dependent on a smaller number of land sites and face, in the words of an economics report,
“lumpy, volatile cash flows as land is purchased, sites developed and sales made”.
Equally, small and medium-sized house builders are surely a crucial part of the sector, given their appetite for developing smaller sites that larger firms often do not want to develop themselves. SME house builders can often be more agile players in the housing market and can use local knowledge and expertise to make the most of small sites. In that way, the contribution of SME house builders also provides an opportunity to increase the number of jobs, to help economic growth and, obviously, to ensure that additional homes get built.
The National House-Building Council has charted the decline in the number of SME house builders from the mid-1980s. It notes that, in the mid-1980s, there were some 12,000 SME house builders, which by 2013 had declined to just under 4,000. Evidence presented to Labour’s Lyons review by the Home Builders Federation suggested that there were some 7,600 dormant SME house builders that were doing other kinds of construction work. The crucial point is that there is capacity that could be drawn back into the housing market to build additional homes in the right circumstance. The Lyons review heard that access to development finance, and its cost, was the key problem preventing many SME house builders from coming back into the market.
The current Federation of Master Builders survey, which came out in September, continues to highlight the scale of the problems that many house builders have in accessing finance. The responses to that survey from different house building firms might give hon. Members an additional indication of the scale of the difficulty. One talked about the disproportionate and high interest charges in relation to security held by lenders. One simply said that there is no finance available for small companies. Another said, “Unless you are an established developer with at least five years of profitable developments under your belt and are cash rich, there really isn’t any finance available to grow. The banks just aren’t interested.”
I draw hon. Members’ attention to my entry in the Register of Members’ Financial Interests. What the hon. Gentleman says is laudable, but I am unsure how the Secretary of State for Communities and Local Government can promote bank lending when he has no power to direct banks. Moreover, banks are constrained by Basel III, a set of international banking regulations, so I would be interested to hear the hon. Gentleman’s commentary on how the Secretary of State can influence bank activity.
There are a number of ways in which the Secretary of State for Communities and Local Government can intervene and promote lending to small and medium-sized businesses. Simply convening meetings with banks to encourage them and talking through the issues that they have in lending to small and medium-sized construction companies would be a start. The hon. Gentleman raises a separate point about Basel III, which I accept was a sensible reform, but the Secretary of State’s friend in the Treasury has introduced other measures that have also had an impact on the availability of cash for lending to small and medium-sized house builders, which the Secretary of State might be able to challenge more easily if the duty were in the legislation.
One way to help small firms to access the credit that they need might be to provide more guarantees for bank lending. A guarantor bank is one suggestion and would guarantee certain tranches of loans to small and medium-sized builders with the condition that funding be used to develop homes, helping to lower the cost of finance as well as increasing the availability of finance to small and medium-sized builders. That was proposed by Capital Economics to the Lyons review and mirrors the Government’s existing Help to Buy scheme. It would essentially be a help-to-build scheme—[Interruption.] I hear the hon. Gentleman heckling me from a sedentary position. If he wants to intervene to make a point, I am happy to take his intervention.
The funding for lending scheme is already doing very effectively exactly what the hon. Gentleman describes.
I say gently to the hon. Gentleman that I have not made up the Home Builders Federation’s concerns. The quotes that I have just given are real. There is a real problem preventing many small and medium-sized house builders from accessing finance. I suggest to him that more needs to be done and the new clause is a way of doing that.
Finally, there is one other option available if a guarantor bank or a help-to-build scheme were not acceptable. Government and Opposition Members will be familiar with the regional growth fund. A series of community development finance institutions occasionally work with construction firms but have difficulty in building their capital base. Regional growth fund moneys might be better used in increasing their ability to lend money to small businesses in their communities. In the context of the new clause, some of that financing could be directed at helping small and medium-sized house builders.
I beg to move, That the clause be read a Second time.
The new clause would require proposals to change offices in London into homes to go through a planning application process. Greater London has been particularly badly affected by the introduction of permitted development rights for those wanting to convert office accommodation into residential dwellings without seeking planning permission. There is a significant difference between office and residential values, which, combined with the high demand for housing and the scarcity of land, has created big incentives for landlords to convert, without planning permission, viable and occupied offices into homes. London Councils estimates that between May 2013 and April this year, at least 100,000 square feet of office floor space was lost. It argues that one consequence of that had been to drive up office rents in some parts of London, increasing costs for businesses; hon. Members know about all the implications of that.
London Councils has expressed concerns about the impact of the provisions on affordable housing in such developments. Because developers do not have to go through section 106 agreements when offices are converted into flats, there is no requirement to provide any affordable housing. London Councils estimates that some 16,000 new dwellings have avoided the full planning process and, as a result, many affordable homes that could have been built, had a planning application been required, have not been built. The LGA and London Councils have argued for change, and they support the intent of the new clause.
Does the hon. Gentleman agree that the permitted development rights legislation has enabled the creation of thousands of new units in London, which have all been very affordable? What would he say to the thousands of Londoners who have been able to buy relatively cheap flats using that excellent provision?
Absolutely not. I am simply saying that when there is a proposal to convert a big office block into residential accommodation, it is sensible to consider the full impact on the local community, both the benefit of the conversion to housing and the effect on jobs and businesses. The Opposition are pro-business, particularly pro-small business, and I am surprised that the Government want to damage the business communities in the boroughs in my examples.
In that spirit, I gently suggest to Government Members that the new clause would not stop conversions from office use to residential accommodation, but it would allow proper discussions to take place about the benefits and the balance between business and housing need.
Does the hon. Gentleman agree that article 4 directions can address the hon. Gentleman’s concern about that balance? Local authorities can exclude town centre areas, for example, from the provisions, as many London boroughs have. Islington, Richmond and I think Southwark and Croydon, actually, have all done that.
Typically where they have been unreasonable by requesting whole-borough exemptions, which have been quite rightly turned down.
As my hon. Friend the Member for Easington said, surely this is, perhaps inadvertently, an opportunity to continue to name and shame rogue landlords who are guilty of poor practice. For prospective tenants who are looking for a new home to move into, looking at a register and being able to judge whether the person who owns the place that they are about to move into is a rogue landlord is a basic defence. The hon. Member for Peterborough, I believe, wanted to hear more about the rogue landlord Andreas Stavrou Antoniades. As I said, he illegally converted a house near Finsbury Park—
That is the third time the hon. Gentleman has mentioned that.
(9 years, 1 month ago)
Public Bill CommitteesQ 129 Following on from Mr Philp’s interest in SMEs, presumably the situation facing SME house builders is even worse in a London context than it is nationally. Therefore, would you go into a little more detail about some of the other challenges faced by SME house builders, particularly those wanting to operate in London? With imagination—imaginative drafting, in particular—some of the issues that you have touched on, perhaps regarding access to finance and the skills shortage, might be able to be included in the scope of the Bill through possible amendments.
Brian Berry: As I said, access to finance remains a serious issue, so a help-to-build measure would be very useful in underpinning loans to SMEs. The availability of small sites has been a problem, because local plans have tended to allocate larger parcels, but our members need smaller parcels. The brownfield register of small sites—five units—is a step in the right direction.
The skills thing is actually a much bigger debate about challenging the perception of vocational training and about the university route not always being the best for every child when they could be learning a trade. We have a role within the industry to demonstrate and improve the image of construction, because this serious problem will only get worse.
The other thing is about making better use of existing buildings, 85% of which will still be in use in 2050. The changes to permitted development to bring more residential back into city centres are positive, particularly in creating sustainable communities. That mix of people living and working, for which there is provision in the Bill, creates dynamic cities. There is a lot in the Bill that is positive, but the finance side would be particularly helpful.
Q 159 That brings me on neatly to my final question. One proposal in the Bill is for social housing tenants, once they reach a certain level of salary at the end of the taper, to move to market rents. That will presumably encourage some people on higher earnings, who had moved into social rented but have progressed in their career, to move out of social rented and into some other tenure, creating space for exactly the kind of vulnerable people you are describing. I presume that therefore you would welcome that clause in the Bill.
Jon Sparkes: The principle that social tenants who can afford to do so should pay more is something that we are not against. There is a detail in there, which is about the onus of evidence. If someone is unable to provide evidence of their income we do not believe that they should be put on to a market rent by default. That will impact on vulnerable people, but the principle of paying more if you can pay more is not something we have a problem with.
Campbell Robb: I agree with that—we are not against the principle of it.
Q 160 Given the anticipated rise in population in London over the next decade, do you think this Bill will help us to tackle the housing crisis, or do you think the housing crisis in London will get worse?
Campbell Robb: Some of the policies, as we discussed earlier on, may not have as much impact in London as they will have in other parts of the country, as has been pointed out. Some of the sell-off of high-value council homes, in London in particular, will have a bigger impact in London to pay for the right to buy. Overall, I suspect that London will struggle without further measures to tackle the housing crisis.