Oral Answers to Questions

Debate between Helen Morgan and Lee Rowley

Monday 10th July 2023 Commons Chamber

[Lee Rowley]

My hon. Friend highlights an important place where further progress is needed. We recognise that there are challenges in this area, and I know that the Minister of State, Department for Levelling Up, Housing and Communities, my hon. Friend the Member for Redditch (Rachel Maclean), who is the Housing Minister, and the Secretary of State are well aware of these challenges and seeking to address them. My portfolio includes nationally significant infrastructure programmes, and we have brought forward the NSIP action plan, demonstrating our commitment to speed up projects and decisions within them as much as we can.

[Helen Morgan (North Shropshire) (LD)]

Shropshire’s Conservative-run council is trying to save £1 million a week just to balance its budget this year and restore its reserves to a safe level. Part of its problem is that the funding allocated to rural councils does not reflect the additional cost of delivering services in rural places. Will the Minister consider reassessing that allocation, so that rural councils can get the revenue they need to support the cost of the services they need to provide?

[Lee Rowley]

We are absolutely aware of the challenges that rural councils face. That is one of the reasons why we increased the rural grant within the most recent financial settlement by £10 million. Where there are pressures in local government finance in the coming years, we will continue to work with colleagues across the House to address them.

Non-Domestic Rating Bill

Debate between Helen Morgan and Lee Rowley

Committee of the whole House
Monday 22nd May 2023 Commons Chamber

[Helen Morgan (North Shropshire) (LD)]

I rise to speak to amendments 1, 2, 3 and 20, as well as new clauses 1 and 2, tabled in my name. I note the excellent speech by the hon. Member for Waveney (Peter Aldous), who tabled amendments with very similar objectives to my own. This Bill is a disappointment to all businesses who are struggling through tough financial conditions. Not only are prices going up for every single purchase that they make, but many small businesses were forced to lock into gas and electricity contracts at astronomical rates last year and are no longer receiving any meaningful support with those energy costs. They may also be struggling with interest rate rises on their borrowings following the period of economic chaos caused by the Government last autumn.

This Government committed to reviewing the system of business rates fundamentally in their 2019 manifesto, but this Bill offers only peripheral changes to an outdated system that does not work for a modern economy. The Bill offers to change the timescale of revaluations from every five years to every three years. This is a welcome reduction, but Liberal Democrats believe that it does not go far enough. The reality for businesses is that a three-year gap between revaluations means that they will continue to pay rates that are far from reflective of the real economic conditions they are operating in. Amendments 1, 2 and 3 would require non-domestic rating lists to be compiled every year and make every year from now on a relevant period for transitional provision under the Local Government Finance Act 1988. Annual revaluations are possible. We only need to look to the Netherlands, where they have been taking place since 1995. There, rateable values are allowed to move with the local economy. This means the tax that businesses are required to pay better reflects the conditions that they face.

I also want to spend a little time on amendment 20, tabled in my name. It is estimated that as a result of the Bill as it stands, 700,000 small businesses who currently pay no business rates at all will need to submit annual reports to the Valuation Office Agency, even when there has been no change to the premises they occupy. These small businesses, like many in North Shropshire, are already plagued by seemingly endless monthly and quarterly Office for National Statistics returns, along with their ongoing tax and financial reporting requirements.

The Bill adds yet another administrative hoop for these businesses to jump through and threatens hefty penalties if forms are completed incorrectly. This piles unnecessary pressure on to small businesses and it will not raise any more tax for public services. These businesses already receive a notification to inform the VOA if there is a material change in their premises, so there is nothing to be gained from this element of the Bill. Amendment 20 attempts to deal with this problem by removing the requirement for annual reporting of no change for those businesses in receipt of small business rate relief. I urge the Minister to support amendment 20, which I intend to push to a vote, and to cut unnecessary red tape for the small businesses we desperately need to help, in order to drive economic growth and breathe new life into the high streets of our historic market towns.

I also wish to speak to new clause 1, tabled in my name. It seems very one-sided to impose punitive fines on businesses for failing to report updates to the VOA on time, without any reciprocal expectations of that agency. As I outlined on Second Reading, dealing with the VOA over changes to a premises can be a protracted affair, and all the time that that is going on, businesses face uncertainty about their rates liability and, critically, cannot plan their cash flow. New clause 1 would require the VOA to report to the Secretary of State on its performance in detail at least once a year. This report should correspond to targets to be set by the Secretary of State. The new clause also calls for the findings of these reports to be laid before Parliament. I have suggested targets, rather than legally binding levels of service, to reflect the fact that no two premises are the same and that updates can be complex and can be challenged, but those targets would at least set an expectation of performance and ensure some accountability for the VOA.

Lastly, I wish to draw attention to new clause 2. I think there is general agreement on both sides of the Committee that we want to see our high streets and market towns thrive. This is especially true in places such as the five historic towns in my North Shropshire constituency, where the local high street is not just a practical place to go to but a social lifeline for many residents. Those high street shops are in competition with online retailers whose warehouse premises have a much lower rateable value per metre squared, putting the high street at a disadvantage. This was confirmed in the Treasury Committee’s “Impact of business rates on business” report in 2019.

Disappointingly, however, the Bill does not take this discrepancy into consideration. Instead, the Government will continue to drain physical retailers through rates that do not reflect the challenges they are already facing, leaving many at a tipping point and struggling to compete on an unfair playing field. New clause 2 would require a review of the impact of non-domestic rateable values on competition in different parts of the retail sector, so that Members could understand the true scale of the issue and inform policy accordingly. This review should be commissioned within six weeks after the date this Act is passed. Overall, I urge Ministers to support these amendments and new clauses in order to improve the Bill, which is just not ambitious enough in fundamentally reforming an out-of-date tax system.

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

I am grateful to all colleagues across the Committee for their contributions today. I think all of us spoke on the Bill’s Second Reading, and we have rehearsed the arguments on a number of these points already. It is important to reiterate from the Government Front Bench that this Bill delivers significant reforms for the business rate system. It increases the frequency of revaluations, which I think has been generally welcomed across the Committee today. It also modernises the administration of the tax and it provides new reliefs to support things such as property improvements. Taken along with the nearly £14 billion-worth of taxpayer subsidy for businesses this year, it helps to manage the tax burden amid the ongoing pressures that the hon. Member for North Shropshire (Helen Morgan) mentioned.

I will now turn to the contributions that hon. Members and hon. Friends have made today. My hon. Friend the Member for Waveney (Peter Aldous) made an incredibly constructive set of comments, and I completely understand the sentiments behind many of the amendments he has tabled. He set a challenge at the outset of his speech, saying that he is looking to move towards annual valuations, the removal of complications and the adoption of digitalisation. We are making progress in two of those three areas, which I hope is not bad, and he has indicated that, overall, this is a step in the right direction. We are moving from five-yearly valuations—in reality, they have happened every seven or eight years in some instances in recent years, for good reason—to three-yearly valuations. We are moving towards the collection of further digital data, and we are continuing to support businesses, where we can, through the reliefs we have put in place.

--- Later in debate ---

[Helen Morgan]

rose—

[Lee Rowley]

The hon. Lady is going to tell me exactly where she would find several hundred billion pounds to fill her black hole.

[Helen Morgan]

Amendment 20 is about cutting red tape for small businesses. Does the Minister agree that he is talking about policy objectives that are not relevant to the Bill?

[Lee Rowley]

That tells us everything we need to know about the Liberal Democrats. They want to talk about only this Bill, ignoring every other policy. They look one way when talking to one part of the country, and the other way when talking to the other part of the country. That shows the Liberal Democrats’ lack of seriousness in understanding how taxation actually works, in understanding how to run a modern, dynamic market economy and in understanding how we need to pay our way to make sure our economy is successful in the long term. It is for those reasons that we oppose amendment 20.

Adult Social Care

Debate between Helen Morgan and Lee Rowley

Wednesday 8th March 2023 Commons Chamber

[Lee Rowley]

As I think the hon. Gentleman is aware, substantial additional funding has gone into the system. I am always happy to discuss the best way that that should be structured—obviously that is a multi-departmental discussion—but I hope there is an acknowledgement that additional funding has gone into the system and continues to go in. The additional information given in our announcements about the remainder of the spending review, over the coming financial year and the year after, demonstrates our commitment to do that. We hope that will have a positive impact on the challenges that have been articulated.

Finally, I want to talk about the long term, which hon. Members from across the House raised in their speeches. We acknowledge that there is a desire, and it is important to try to plan for the long term. We will bring forward a plan for adult social care reform in the spring. I hope that will answer some of the questions that hon. and right hon. Members have raised and assuage some of their concerns locally. To answer the challenge from the hon. Member for North Shropshire (Helen Morgan) about a long-term settlement for councils, while some of the long-term nature of that is debatable, I hope that the broader policy statement, which the Government announced several weeks ago with the local government finance settlement, demonstrates our intent to move forward with a longer-term understanding of what councils can expect to receive from Government, where we are able to do that. As I have highlighted, in the long term we are also seeking to introduce new elements to government, such as the office for local government, which hopefully will provide information not just about what is happening, but information that explains in more detail how local government is spending that money.

[Helen Morgan]

rose—

[Lee Rowley]

I have detained the House, but I will be happy to give way briefly.

[Helen Morgan]

I am grateful to the Minister. The point about long-term funding is so important. Until a couple of weeks ago, care providers in Shropshire did not know by how much their rates would increase in the new financial year, and they were considering handing their contracts back. It would have cost the council a fortune just to find someone who was willing to fulfil some of those care packages. Councils need long-term funding for their own financial stability and to find care packages at an achievable cost.

[Lee Rowley]

I am happy to confirm that the Government are trying, where we are able, to offer greater visibility of what is coming and greater long-term understanding. We will continue to try to do that across the local government finance settlement, and I hope this policy statement is an indication of that.

Voter Identification

Debate between Helen Morgan and Lee Rowley

Tuesday 21st February 2023 Commons Chamber

[Helen Morgan (North Shropshire) (LD)]

(Urgent Question): To ask the Secretary of State for Levelling Up, Housing and Communities if he will make a statement on the roll-out of voter identification.

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

Democracy is precious. The United Kingdom’s electoral system has a hard-earned reputation for transparency and integrity, and that needs regular review and, where appropriate, enhancement to ensure that it works today just as it did in the past.

One of the most basic principles of voting is that the people who cast their votes are eligible to do so. The introduction of voter identification at polling stations from May will be another lock in ensuring that the integrity of our democracy is protected for the long term. Nor is this anything new: voter identification has been in place in Northern Ireland for nearly 20 years. As for elections in Great Britain, this Government stood on a manifesto that said we would introduce it, won on the basis of doing so, introduced legislation to fulfil that commitment, and are now delivering on that promise. We will not shirk our responsibilities to protect the integrity of the ballot box.

According to Government research, about 98% of the electorate already have an accepted voter ID, whether it is a passport, a driving licence or one of nearly 20 other eligible types of identification. That includes, for some, expired identification, in order to maximise participation. The reality is that the overwhelming majority of people already have what they need to fulfil this new protection at the ballot box. For those who do not, the Government have made available a voter authority certificate, which can be applied for today. It is free of charge and can be issued to everyone who wants it in readiness for May. To date, more than 21,000 applications have been made. Hon. Members will likely have seen—as have I, along with many millions of others—the extensive communications campaigns now under way, run by the Electoral Commission and, at a local level, by individual councils. Those will continue all the way up to May.

There are few tasks more important in public life than maintaining the trust of the British public in our electoral institutions and our electoral processes. A huge amount of work is under way, and that will continue until May. I am grateful to officials, to the Electoral Commission and to councils up and down the land for the work that they are doing. We are taking action to strengthen the integrity of those institutions and processes and to protect the sanctity of the vote. It is now incumbent on all Members—having had the debate and having resolved to do this last year—to send a collective clear signal that this change is important to protect the integrity of the ballot box, and that we should all get ready for this to happen in May.

[Helen Morgan]

For months and months, Members on the Opposition side of the House have fought the Government’s voter ID plans tooth and nail. We have warned that this is using a sledgehammer to crack a nut, at an exorbitant cost to the taxpayer, and that it is a thinly veiled attempt to make it far more difficult for people to vote.

This morning I was appalled to read new statistics relating to the Government’s botched roll-out of voter ID, revealing that of the estimated 2 million people who will now need a new form of ID—a voter authority certificate—in order to vote, just 1% have applied for it. And of that tiny number—not even 21,000—a tiny minority are older people or young people, groups who we were warned risked being disenfranchised under these new plans. We are just 10 weeks away from the local elections. Safeguarding our democracy and the fundamental right to vote should be the priority of any responsible Government.

I therefore urge the Minister to answer the following questions. What are the Government going to do to fix this? In particular, how are they going to target groups who have limited access to the internet to ensure that they do not lose out? What engagement will take place with local authorities and what support will be provided? It seems absurd that local authorities might have to pay the cost of the Government’s botched roll-out of voter ID.

Will the Minister commit to, at the very least, pausing this year’s roll-out? He will be aware of the Electoral Commission’s analysis that this roll-out means that the May elections cannot be run in a

“fully secure, accessible and workable”

manner. Will the Government expand the list of acceptable forms of ID so that fewer people have to apply for a local authority certificate? Many Members were rightly concerned when it was revealed last autumn that some forms of student ID were not included in the list. Do the Government have any handle on the level of awareness among the general public regarding the need to bring ID with them to vote in May? I would say that the Government were sleepwalking into a disaster, but I am afraid that, to me, this looks a little more cynical.

[Lee Rowley]

We are clearly going to have a discussion today in which hon. Members have every right, should they wish, to use quite outrageous rhetoric in relation to this basic, fundamental change to ensure that we protect the integrity of the ballot box. I would encourage them to think carefully about how they approach this during the urgent question.

To answer the hon. Lady’s questions specifically, I need to take on this notion that there are 2 million people who need voter ID. That is absolutely not correct and I hope that hon. Members will stop reiterating it. Of those 2 million people—which is an estimate—a large number will not have elections in their area this year. Secondly, of that group, a number will choose not to vote, much as we would like them to do so. They may have chosen never to vote, and although we would encourage them to do so, that is ultimately the purpose of a democracy: people have a right to vote and a right not to vote. We are seeking to encourage them to vote and seeking to guarantee that integrity. There may also have been a choice for people to change to postal votes. We are continuing to work to encourage take-up where it is necessary, but it is fundamentally incorrect for hon. Members in this House to suggest that some form of target is being missed.

The hon. Lady also asked what we were going to do to target groups. We are already doing that. We have engaged on multiple levels at multiple times with those who could be hard to reach, and we will continue to do that all the way up until May. It is not correct that local authorities are paying the cost, as she suggested. New burdens funding has been paid and there will be a true-up process afterwards to ensure that people are not out of pocket. The list of means of identification that the hon. Lady asked to be expanded already had more than 20 on it, including passports and driving licences. As I said in my initial response, that includes some instances where expiration had happened. I would encourage the Liberal Democrats and other hon. Members to understand that we are seeking to ensure that the sanctity of the ballot box can be protected, and I wish that they would support these reasonable and proportionate measures to do that.

Oral Answers to Questions

Debate between Helen Morgan and Lee Rowley

Monday 20th February 2023 Commons Chamber

[Munira Wilson (Twickenham) (LD)]

17. What assessment he has made of the implications for his policies of trends in the level of local authority budgets.

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

The local government finance settlement 2023-24 recently made available nearly £60 billion of funding for local government in England in the coming financial year, responding to the requests of the sector for clarity, space and additional resources.

[Helen Morgan]

Shropshire Council has recently reported that it needs to find £10 million of cuts this quarter and £50 million in the coming years. Some 85% of its budget is spent on social care, so 97% of residents are going to pay more for reduced services. Will the Government consider reviewing the fair funding formula, so that councils in rural areas can continue to provide proper services to their constituents?

[Lee Rowley]

The main message we heard from the local government sector in the past 12 months, after covid, inflation and all the pressures it had, was that it wanted stability. What we have tried to offer as part of the financial settlement for 2023-24 is a stable platform upon which colleagues in local government can plan, reform and work through where they are going in the future.

Unfinished Housing Developments: Consumer Protection

Debate between Helen Morgan and Lee Rowley

Tuesday 18th October 2022 Commons Chamber

[Lee Rowley]

I will come to those two points, because I agree there are different elements that we need to consider and unpack. I would be happy to discuss the second point with the right hon. Gentleman in more detail, should he wish.

On completing new housing developments—I accept the hon. Member for North Shropshire made a broader point about further down the chain—the Government are clear that developments should be built out as soon as possible once planning permission is granted. The frustration of local communities where that does not occur is completely understandable. We expect developers and local authorities to work closely together to make this happen.

The Levelling-up and Regeneration Bill, which is in Committee today, will increase transparency on build-out, helping councils and residents to better understand what they can expect from development proposals and putting in place sanctions should the homebuilder fall short. Of course, there are examples where developers will need to vary their approach to building and constructing properties, and of course timeframes will both elongate and reduce as part of that process, but in general we are keen to see that when development is granted permission, often through difficult and sometimes controversial processes, and the clock starts ticking, the development should get moving and conclude as soon as possible.

The hon. Member for North Shropshire rightly highlighted infrastructure. Taking roads as an example—she mentioned a number of examples—when a new development is granted planning permission, councils can currently use section 106 planning obligations, as she indicated, to secure a commitment from developers to construct roads to a standard capable of being adopted by the local highway authority. It is up to developers and local planning authorities to agree on specifics such as timescales and funding, which may include the provision of a bond. This is currently a local decision and, notwithstanding the difficulty she rightly highlighted—she made a constructive suggestion on potential compulsion in this area—there are going to be different circumstances in different instances.

I encourage councils to use bonds where they think it is appropriate. Equally, I do not know whether we want to be so prescriptive as to mandate that from the centre, as there may be instances where it is neither appropriate nor necessary. Hundreds of thousands of houses are built each year in very different parts of the country, so we have to have regard to the fact there are different circumstances. None the less, I accept the premise of what the hon. Lady indicates and, where good practice exists—she indicated the good practice in Oxfordshire, and it also happens in Derbyshire—I encourage councils to use it, where appropriate and reasonable.

[Helen Morgan]

If compulsion is not appropriate, what about disseminating best practice to all councils in England to encourage them to use this mechanism, where appropriate, to avoid the situation that my hon. Friend the Member for Caithness, Sutherland and Easter Ross (Jamie Stone) and I have described? That would be a positive way forward to prevent this happening in future.

[Lee Rowley]

Within the bounds of localism, and without an individual Minister directing councils to do so, I think it is reasonable to indicate that, where possible, reasonable and proportionate, and where councils think it is appropriate, they should consider using bonds, which are a helpful lever and tool to be used where possible, while accepting that individual local authorities may have different reasons and different views on either using them or not using them. Ultimately, I will leave it to the discretion of individual local authorities to determine the appropriateness of that utility.

Returning to the point about roads, the Government believe it should be made clear to potential purchasers what the arrangements are for the maintenance of roads. Section 38 agreements facilitate the adoption of such roads as highways maintained by the public purse. It is certainly possible for local authorities to adopt streets and roads. Ultimately, though, that is a decision that is taken in relation to how these estates are created and how local authorities want to approach ensuring that they have highways that are at a standard that they can then maintain.

Although I recognise, as has been indicated, that this does not work in a number of instances, if we can balance the appropriateness of localism—of making sure that local areas have the ability to vary how they approach this—while also ensuring that there is a general usage of the tools that are available, I hope that will be reasonable and proportionate.

The other element of the discussion is effectively around the quality of what is delivered at the end of the process when people move in—or by the time they move in. The Department for Levelling Up, Housing and Communities has also provided local planning authorities with tools to enforce requirements with strong penalties for non-compliance. Again, we encourage councils to use them where possible, and, again, through the Levelling Up and Regeneration Bill we are seeking to strengthen those measures.

I should add that when residents have a complaint about the local planning and highways authority that has not been adequately resolved, they may be able to complain to the Local Government and Social Care Ombudsman. I know that, in at least one incident, as the hon. Lady said, the residents of North Shropshire tried to do that. Obviously, the ombudsman is independent, but it is worth reiterating that it is there to redress issues, and I hope that anybody watching this debate who has a similar concern will consider its usage should that be appropriate.

On the matter of delays to completion, warranties and the actual quality of new homes themselves, I know of the problems that new home buyers face regularly and we do not underestimate the detrimental impact that this has. Most new-build home contracts typically have a “short-stop” date, which is an estimated completion date, and a “long-stop” date, which is the date by which a home must be completed in the contract. The rights and responsibilities of the homebuyer and developer should be set out in that contract, including the circumstances in which a deposit and other money is returned.

There are other routes to redress, which we are strengthening, and I will come to those in a moment, because they offer alternatives that the hon. Lady may wish to consider. The status quo currently is that most new-build homes are issued with a 10-year new-build warranty. Home buyers may also be able to complain to the Financial Ombudsman Service about their insurance cover.

Within the first two years of most warranties home buyers may be able to seek to resolve issues with their new homes through that warranty provider. If the new home is covered by one of the consumer codes, they may also be able to help resolve the issues that residents unfortunately face.

Even with those options available to home buyers, we recognise that the system is not in a perfect place. That is why the Government have committed to taking further steps to improve consumer redress. Through the Building Safety Act 2022, we have included a provision that contains a statutory new homes ombudsman scheme, which will place greater accountability on developers and make it easier and simpler for new home buyers to seek redress when things go wrong, which perhaps will move us closer to the Northern Ireland model in terms of outcomes.

In the meantime, and as we consider the next steps for the statutory scheme, the independent New Homes Quality Board has progressed work to set up the voluntary New Homes Ombudsman Service, which will launch shortly. My second visit was to see the launch of a New Homes Quality Board and to see the first developers to be brought onto that scheme. I went to Solihull a couple of weeks ago, and I am grateful to the chief executive for meeting me. It is an important step forward. The scheme is voluntary at the moment, but, equally, that voluntarism gives the opportunity for home buyers to see the different ways in which developers are engaging with that system, and I hope that most developers will in the end engage with that system.

The hon. Lady talked about leasehold at the end of her speech and I just want to dwell on that for a few seconds. We acknowledge that there are practices that are not where they need to be within the leasehold sector, and the Government and previous Ministers have given commitments that we will reform leasehold. We remain of the view that that is what should be done. Although I cannot give the hon. Lady the date she seeks, I am personally committed to trying to take the matter forward and I hope I will be able, with my colleagues, to give further information in fairly short order on the process for that.

In conclusion, this is an important area of policy, and I am grateful to the hon. Lady and all those who have contributed to the debate tonight for the opportunity to talk about it. It is important to note that there are processes already in place that homeowners should use if they are in the unfortunate place described by some people in North Shropshire, which I know is also the case elsewhere. They should seek to use those and seek to—