Oral Answers to Questions

James Brokenshire Excerpts

Monday 5th November 2018 Commons Chamber

[Liz Twist (Blaydon) (Lab)]

4. What recent steps he has taken to protect existing leaseholders from high leasehold charges.

[The Secretary of State for Housing, Communities and Local Government (James Brokenshire)]

Before I answer these questions, I am sure that the whole House will wish to join me in offering our condolences to the family and friends of Sir Jeremy Heywood, who passed away at the weekend. He demonstrated all that is precious in our civil service through the way in which he supported Governments of all colours, and the manner in which he supported four Prime Ministers. He showed leadership, real focus and ingenuity in dealing with challenging issues, as well as calmness and a real sense of humour. I know that he will be missed by everyone on both sides of the House.

Unfair leasehold practices have no place in a modern housing market, and neither do excessive ground rents that exploit consumers. I will be making clear to developers at a roundtable meeting later this week the need for the industry to provide greater support to existing leaseholders.

[Liz McInnes]

I thank the Secretary of State for his response, and I would like to associate myself with his remarks about the sad death of Sir Jeremy Heywood.

Will the Secretary of State explain how the steps he has outlined will help my constituent, Linda Barnes, who owns a flat that is valued at £80,000 and pays an onerous ground rent of £400 a year on it? What help will he give so that such flats can become attractive to buyers again?

[James Brokenshire]

I am conscious of some of the bad practices in the leasehold market, which is why I will be meeting the industry later this week to underline the need for redress and for solutions to be offered to people who have in some cases been mis-sold. I certainly take this seriously. I have also written to the Competition and Markets Authority and to the Solicitors Regulatory Authority, in the knowledge that there are serious questions about some of the practices involved, in order to ensure that we are taking action on a number of fronts in response to the challenges that the hon. Lady rightly highlights.

[Liz Twist]

Three weeks ago, members of the Housing, Communities and Local Government Committee held a roundtable for leaseholders at the start of our inquiry. They told us about the problem of escalating ground rents that trap them in homes that they can no longer sell. They made it clear that they wanted existing leaseholds to be ended; does the Secretary of State agree with them?

[James Brokenshire]

We are working with the Law Commission around greater enfranchisement in order to bring leaseholds to an end. I am also conscious that at least one provider in the market has offered some means of redress and of dealing with some of the issues, but the point is that we need to go further, and that is what I shall be challenging representatives of the industry on when I meet them later this week.

[Sir Peter Bottomley (Worthing West) (Con)]

The House will be grateful to the Secretary of State for saying that he is going to commit to doing all he can for residential leaseholders on existing leases, which are abusive. It is still not too late for the Competition and Markets Authority to declare some of those leases to be so unfair as to be unenforceable.

I hope that, in time, the Secretary of State will meet representatives of the industry, along with the Leasehold Knowledge Partnership and the Leaseholder Association —and perhaps the Chairman of the Select Committee, which is having hearings this afternoon—and that the campaigners and the industry will all meet together so that the Secretary of State is not hearing one thing in one ear and another thing in the other. We have to represent the leaseholders.

[James Brokenshire]

I hear my hon. Friend’s message very clearly indeed. We have been provided with a number of examples of egregious practice, and I intend to challenge some of the concerns that have been flagged to me. I am sure that we will continue to have this conversation, but I have noted his points.

[Sir Desmond Swayne (New Forest West) (Con)]

The Law Commission process grinds on, but what advice can be given in the meantime to constituents who present with the most outrageous charges?

[James Brokenshire]

Advice is being given by LEASE and others, but this is about transparency and providing more support, which is where the industry has a key role to play. That is why we will be making these points to the industry later this week, as well as looking at where the regulatory aspects might sit.

[Hilary Benn (Leeds Central) (Lab)]

Leaseholders in several private blocks in Leeds are being asked to pay huge bills to deal with unsafe cladding. The cost is between £10,000 and £28,000 for each leaseholder at Skyline Apartments, and the total cost of replacing the cladding in the Saxton development could be as high as £8 million. Given that my constituents are being asked to pay money that they do not have to deal with a problem that they did not create, when will the Government stop urging freeholders not to charge leaseholders and actually prevent them from doing so by law?

[James Brokenshire]

We have taken several steps and put significant pressure on the industry, and that is starting to have an impact as many freeholders take the necessary steps to make buildings safe without passing on the costs to leaseholders, who should not bear them. I am happy to consider the right hon. Gentleman’s specific examples, because we are in direct contact with several different agencies, and indeed with local government about taking enforcement action, to see that work is done.

[Bob Blackman (Harrow East) (Con)]

I thank my right hon. Friend for his answers. I urge the Government to bring in legislation to bar such charges in future, but we would still need to address those who have been unfairly put in this position in the first place. I therefore urge my right hon. Friend to consider not only legislation for the future, but retrospective legislation to address the egregious practices that have taken place.

[James Brokenshire]

As my hon. Friend will know, we are consulting on the implementation of a ban on inappropriate leaseholds on homes, which are the core of what we are discussing. Legislation will come forward once we have seen the responses to our technical consultation, and there will obviously be plenty of opportunity for colleagues to debate the matter further.

[John Healey (Wentworth and Dearne) (Lab)]

I start by formally echoing the Secretary of State’s comments about Sir Jeremy Heywood. Many of us were privileged to work with Sir Jeremy, and he was an exceptional civil servant who gave outstanding service to this country. Our deep sympathies are with his wife and family at this time.

As we have heard, many of us have constituents who bought their home but then found that they do not own it and feel ripped off by unfair leasehold contracts. When we hear, repeatedly, that leasehold buyers did not choose their own solicitor, were wrongly told that they could buy their freehold cheaply at any time, or found out later that they had to ask and pay freeholders for permission to own a pet, change their carpets or build a conservatory, the individual cases add up to something bigger. The Government must act, just as with other mis-selling scandals, such as on pensions, mortgages or payment protection insurance. Will the Secretary of State today back an inquiry into this systematic mis-selling to leaseholders?

[James Brokenshire]

I recognise and appreciate the right hon. Gentleman’s comments about Sir Jeremy Heywood. I know that that message will have been heard throughout the House.

The Housing, Communities and Local Government Committee’s investigation into leasehold is live, and I hope that the right hon. Gentleman recognises the seriousness with which we take the issues that he and others have flagged, and the troubling matters that pertain to some of the practices within the leasehold market. That is why I am taking action.

[John Healey]

It is not the Select Committee’s action that counts, but the Government’s action, which has been too weak and too slow and, critically, largely overlooks the plight of existing leaseholders. An industry survey shows that six in 10 leaseholders did not even know what being a leaseholder meant until after they had bought, and that nine in 10 regret having bought a leasehold at all. Those are classic signs of mis-selling—it is a national scandal. I will give the Secretary of State another chance: when will he stand up for leaseholders and launch an inquiry into mis-selling?

[James Brokenshire]

Nobody is ignoring the issue. That is not only why we are legislating to address the inappropriate use of leasehold for new homes, but why I have underlined today the requests that I have made of the Solicitors Regulation Authority and the Competition and Markets Authority. We recognise that there are serious issues, which is why we are taking action. We want to ensure that leaseholders’ concerns are heard and fully understood, and that redress can be provided.

[Ms Karen Buck (Westminster North) (Lab)]

2. What guidance he has issued to local authorities on accommodating homeless families outside of their home borough.

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[Sir Nicholas Soames (Mid Sussex) (Con)]

5. What steps his Department is taking to reduce the time taken to build new homes.

[The Secretary of State for Housing, Communities and Local Government (James Brokenshire)]

The publication of the national planning policy framework provides greater clarity and certainty for the development of homes. We are examining the recommendations of my right hon. Friend the Member for West Dorset (Sir Oliver Letwin) on the build-out review and will respond in full in February.

[Sir Nicholas Soames]

The Government would see greater progress in their quest to shorten the time it takes to build new homes if people were able to have greater confidence in the design and layout of large housing developments. I congratulate my right hon. Friend on the steps he is taking to get that done, but does he agree that what really worries people is not only the housing but the inability to provide adequate social infrastructure to cope with massive amounts of new housing where there simply is not currently the infrastructure to support it?

[James Brokenshire]

I recognise the points that my right hon. Friend highlights and welcome his support for the Building Better, Building Beautiful commission, which will look at that sense of place and the identity between our built environment and how we live our lives. He also rightfully highlights the issues relating to infrastructure. I hope that he will welcome the extra £500 million that the Chancellor committed in last week’s Budget to the housing infrastructure fund to deal with the issues that he rightly points out.

[Catherine West (Hornsey and Wood Green) (Lab)]

Some 140,000 children are waiting in temporary accommodation for new homes. In the meantime, how long does the Secretary of State think it is acceptable for a child to have to travel to school—two hours? Three hours? Some children are getting home at 9 pm because their school is so far away from where they are placed.

[James Brokenshire]

The point that the hon. Lady makes is about the need to build more homes, which is precisely what we are doing as a Government. We are ensuring that housing associations are building more with the £9 billion fund, and by lifting the borrowing caps we are ensuring that councils can build more, along with what the private sector is doing. That way, people can have strong communities and the services that they need close at hand.

[Mr Richard Bacon (South Norfolk) (Con)]

Does the Secretary of State recognise that one of the best ways to bring forward more new homes quickly is to support my Housing Reform Bill, which has support from Members from all parties, including some of the House’s most distinguished Members? The Bill’s requirement on the Secretary of State to provide serviced plots for sale or for rent to rich people and poor people, social tenants and others, would do a lot to solve our housing crisis.

[James Brokenshire]

I am grateful to my hon. Friend for his tireless championing of the issues that he has highlighted. The Minister for Housing will meet him shortly to discuss a number of the elements that he has highlighted. I hope that he recognises some of the steps taken through the national planning policy framework that will support his agenda.

[Mr Mark Prisk (Hertford and Stortford) (Con)]

6. What progress he has made on improving standards in the management of residential property in the (a) private rented and (b) social housing sectors. [R]

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[Lee Rowley (North East Derbyshire) (Con)]

11. What steps his Department is taking to deliver economic growth through the midlands engine.

[The Secretary of State for Housing, Communities and Local Government (James Brokenshire)]

My recent visit to India provided an important opportunity to promote the midlands engine in that significant market. This month, we announced funding to support the creation of a new locally led development body for Toton, as well as £70 million for the Defence and National Rehabilitation Centre, and we will refresh the midlands engine strategy.

[Lee Rowley]

A great example of the potential economic development in the midlands is the shortlisting of Barrow Hill in my constituency as the next potential site for the Spanish train manufacturer Talgo. Will my right hon. Friend join me in welcoming that shortlisting and—fingers crossed—hoping that we get it?

[James Brokenshire]

I note my hon. Friend’s fingers are crossed. I am delighted to hear that Talgo is considering investing in the UK. I hope he will understand that as there are still a number of locations under consideration, it would be wrong for me to comment further—although, having visited the potential site in his constituency this summer, I can say that it is clearly an excellent site for investment.

[Gareth Snell (Stoke-on-Trent Central) (Lab/Co-op)]

The midlands engine is working with Stoke-on-Trent City Council as part of the transforming cities fund and making bids for significant investment. It was heartening to hear the Chancellor refer to that in his speech last Monday. Could the Secretary of State put us out of our misery and announce from the Dispatch Box today that Stoke will receive that funding, which would save a further round of hoop-jumping?

[Mrs Wheeler]

Good try!

[James Brokenshire]

As my hon. Friend says, that is a good try. I recognise the way in which the hon. Gentleman has championed Stoke, this initiative and the funding. All I can say is that we will look at that carefully, but I hope he gets a sense of the attention and focus we are giving to the midlands engine.

[Martin Vickers (Cleethorpes) (Con)]

The midlands engine covers approximately two thirds of Lincolnshire—the county council area—but my constituency is served by the two unitary authorities in the north. Co-ordination of economic policies falls to both the Greater Lincolnshire local enterprise partnership and the Humber local enterprise partnership. Both the local authorities and LEPs would like to maintain the status quo. Could the Secretary of State bear that in mind in the upcoming review?

[James Brokenshire]

My hon. Friend will note the conclusions of the review, particularly in relation to governance and overlapping geographies. It is important that we have reform and work with the LEPs to take this forward, and I look forward to having discussions with the LEP chairs in the coming days.

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[Peter Aldous (Waveney) (Con)]

T1. If he will make a statement on his departmental responsibilities.

[The Secretary of State for Housing, Communities and Local Government (James Brokenshire)]

This week, I am meeting developers at a leasehold roundtable to press them to tackle onerous ground rents, and I will attend the Locality Convention in Bristol to acknowledge the hard work of our community organisations and set out our ambition for increased localism.

Wednesday’s celebration of Diwali will be a special moment to reflect and celebrate the triumph of light over darkness and good over evil. As we mourn the tragic events in Pittsburgh, especially in the context of this week’s 80th anniversary of Kristallnacht, we are clear that racism and xenophobia in whatever form have no place in our society and will be confronted in the strongest terms.

[Peter Aldous]

It was great that the Secretary of State and the Minister for Local Government were able to attend last Wednesday’s launch of the county all-party parliamentary group’s report on social mobility in county areas. Will my right hon. Friend work with the APPG to implement the report’s 11 recommendations, which will do so much to ensure that young people across the country have the opportunity to realise their full potential?

[James Brokenshire]

That sense of social justice to which my hon. Friend alludes and which was in the report profoundly reflects the Government’s aspirations and intent to see a country that works for everyone. I look forward to continuing to work with him and the APPG in considering the fair funding review and other steps to ensure that we realise that aspiration.

[Yvonne Fovargue (Makerfield) (Lab)]

Trading standards are the foot soldiers in keeping the public from falling victim to unsafe goods, yet cuts to local authorities mean that trading standards budgets have fallen by more than 50% between 2009 and 2019, with a 56% reduction in the number of offices. The Chartered Trading Standards Institute is warning that, as we approach Brexit, the role of those dedicated professionals will be even more crucial. How can they keep the public safe from dodgy and dangerous goods without sustainable funding?

[James Brokenshire]

We are providing a real terms increase in funding for local government this year and next year, recognising some of the pressures that exist. We continue to support local government and, in the context of Brexit, we are working with it to ensure effective preparations for protecting our communities.

[Kevin Foster (Torbay) (Con)]

T3. Like the Minister, I welcome the Budget’s announcements of £650 million extra for social care and £84 million for children’s social care programmes over five years. Will he confirm when local authorities, including Torbay Council, will be told what their share of this new money will be?

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[Jeff Smith (Manchester, Withington) (Lab)]

T4. When I was a local authority executive member back in 2012, we were often warned about the “graph of doom”, which showed that by about 2018 local authorities would be running out of money for everything but statutory services. At the time, the Government accused the Local Government Association and the National Audit Office of scaremongering, but given what has happened in Northamptonshire and elsewhere, those warnings were accurate, were they not?

[James Brokenshire]

We recognise the pressures on social care, which is why this year an extra £240 million has been committed and £650 million is being committed through the Budget to deal with those pressures. We are looking to long-term sustainability and valuing our local government sector, which is what we do.

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[John Spellar (Warley) (Lab)]

T5. As Brexit approaches, what is the Secretary of State’s Department doing to ensure that, when buying food, vehicles, furniture or any other goods and services, local councils follow Government guidelines to take local value into account and back British business and British workers by buying British first?

[James Brokenshire]

I welcome the right hon. Gentleman’s positive outlook as we leave the European Union. We will deliver a positive Brexit, looking outwards into the world and at how we have trade deals in the future. We continue to engage with local councils to ensure that we deliver a smooth and effective Brexit.

[Mr Simon Clarke (Middlesbrough South and East Cleveland) (Con)]

T8. Has my hon. Friend reviewed the better streets proposal from YIMBY and the Adam Smith Institute, which would allow residents of a single street to vote on giving themselves permitted development rights to build upwards to a maximum of six storeys and thereby address the housing crisis?

[Ian Austin (Dudley North) (Lab)]

T9. Does the Secretary of State agree that the establishment of the new all-party group on the national holocaust memorial, which is chaired by the hon. Member for Harrow East (Bob Blackman) and me, is very much to be welcomed? Is it not fantastic that so many Members from both sides of the House came together, at a time when antisemitism is on the increase, to establish this group and that we want to commemorate here in Parliament history’s greatest crime and support the establishment of this memorial, right here in Westminster, at the centre of not just our political life but our national life?

[James Brokenshire]

I absolutely recognise and commend what the hon. Gentleman said on how collectively we challenge antisemitism and stand up for the values of this country. I pay tribute to him for the personal contribution that he has made on this issue, and equally, I reflect on the statue of Frank Foley, which the hon. Gentleman was instrumental in bringing into effect. It recognises Frank Foley’s contribution in saving the lives of thousands of Jews fleeing from persecution in Germany, and we must never forget the contribution that he and others have made.

[Fiona Bruce (Congleton) (Con)]

Many of my constituents are suffering from severe stress following the purchase of their homes on unfair leasehold terms. Does the Minister agree that tackling leasehold abuse is a matter of urgency, and will she comment on a timetable for action?

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[Mr Philip Hollobone (Kettering) (Con)]

Will the Department work with the Department of Health and Social Care to use the local reorganisation of local government in Northamptonshire as an opportunity to receive local proposals to develop a pilot for a new integrated social care and health system in the county?

[James Brokenshire]

We are already taking such steps. On 18 October, we convened a meeting between leaders and chief executives of the Northamptonshire councils and representatives of the local health services to start discussions on how, in future, adult social care may be best provided and integrated with health.

[Daniel Zeichner (Cambridge) (Lab)]

The ill-fated regional fire control centre in Cambridgeshire continues to stand empty, costing £2 million a year. We keep being told that it has been let or that it is about to be sold. When is the Minister going to get a grip?

[James Brokenshire]

Fire control now resides within the responsibilities of the Home Office, but I will certainly look into the hon. Gentleman’s points in relation to ensuring good value for money.

[Sir Hugo Swire (East Devon) (Con)]

I warmly congratulate my right hon. Friend on the establishment of the Building Better, Building Beautiful Commission and the inspired choice of Sir Roger Scruton as the chairman, but, first, does my right hon. Friend not agree that this will only have any teeth if we can get the volume house builders to buy into it? Secondly, I think that the commission should be extended to look at the quality and the variable advice often given by local planning officers and at a full accreditation scheme for those planning officers on an annual basis to refresh them.

[James Brokenshire]

I certainly want the new commission to drive quality in the built environment, which is at the heart of what my right hon. Friend said. If we do that, we can speed up this process and get greater support and consent from the public in building the homes that our country needs. I therefore think that the house builders should very much embrace this.

[Ruth George (High Peak) (Lab)]

The Secretary of State says that local councils will see real-terms increases in their budgets. If so, why is Derbyshire County Council planning for £70 million of cuts, on top of the £260 million of cuts already made, and cutting the terms and conditions of its lowest-paid workers in school catering as well as services for the most vulnerable?

[James Brokenshire]

I recognise the challenges that local government has faced over the past few years and how councils have played their part in dealing with the public finance challenges brought about by the Labour party; let us not forget that when discussing the investment we are making to create that sustainable position for local government.

[Tom Pursglove (Corby) (Con)]

As the Minister will know, we are taking thousands of new homes in Corby and east Northamptonshire, and it is imperative that the infrastructure keep pace. Last week, the Chancellor very welcomely announced a new generation of enterprise zones. May I make an early pitch for Corby, because I would argue that we qualify given the housing growth we are taking?

[James Brokenshire]

I have just been told that it is my hon. Friend’s birthday today. I wish him a happy birthday and note his pitch for perhaps a birthday present. We will note it down.

[Rachael Maskell (York Central) (Lab/Co-op)]

A constituent of mine has been a faithful council tenant for 30 years. Over this time, she has invested much in her home. Her ex-partner served notice when he moved out, and now City of York Council is moving to evict her next week. This is having a serious impact on her mental health—among other things, it has led to her feeling suicidal—yet the council still plans to move her. Will the Minister urgently meet me to discuss this case and the mental health assessments of tenants that should take place?

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[Mr Stephen Hepburn (Jarrow) (Lab)]

Tyne and Wear fire service is facing £3 million of cuts, which could mean the closure of my local fire station. Will the Secretary of State look at the special problems with funding fire services that are facing local government in the north-east?

[James Brokenshire]

I will certainly raise the hon. Gentleman’s point with colleagues who lead on fire within the Home Office.

[Mr Marcus Jones (Nuneaton) (Con)]

The Labour cabinet in Nuneaton and Bedworth is imposing a £40 garden tax on green waste collection, despite pledging not to do so in May’s local election. Does my hon. Friend agree that such a fundamental change to how people’s waste is collected should not be made without full and proper consultation with the public and buy-in from local people?

[Mr Dennis Skinner (Bolsover) (Lab)]

Further to the Secretary of State’s answer to my hon. Friend the Member for High Peak (Ruth George) about Derbyshire County Council’s cuts, the cuts in question are worth more than £200 million, and they were made not by the Labour Government, as he stated, but by the Tory Government in alliance with the Liberal Democrats. To refresh his memory further, I should remind him that we also trebled the amount of money going into the hospital. Now a Tory county council at Matlock has decided to close 20 libraries in the county. That’s politics.

[James Brokenshire]

I will take no lectures from the hon. Gentleman about the steps the Government have had to take to put the public finances back on an even keel as a consequence of the Labour party’s actions, and he should well know our commitment to investing in the health service in a way the Labour party would not have done.