Council Tax

Jayne Kirkham Excerpts

Thursday 14th November 2024 Commons Chamber

[Matthew Pennycook]

No, that is not the case. We are maintaining the policy of the previous Government, which, as per the OBR forecast, estimated that £1.8 billion will be raised through council tax. The position of the Government is that it will maintain the thresholds. If the hon. Gentleman thinks differently, he should tell House what his position is on thresholds: should they be reduced or increased?

[Jayne Kirkham (Truro and Falmouth) (Lab/Co-op)]

I am pleased about the support for first and second-tier councils and the commitment to fair funding, which will make a real difference in, for instance, Cornwall. However, in unitary authorities such as ours, where a great many services have been shared, larger town councils have had to step up and take the strain, but have not had the grants and other measures that have been available to those first and second-tier councils. Could the appropriate Minister meet me to discuss the position of larger town councils in Cornwall?

[Matthew Pennycook]

I am more than happy to commit the Local Government Minister to a meeting with my hon. Friend.

Holiday and Second Homes Regulation: Cornwall and Isles of Scilly

Jayne Kirkham Excerpts

Wednesday 23rd October 2024 Westminster Hall

[Andrew George]

That is absolutely the case. As a visitor to the Isles of Scilly, my hon. Friend knows that that is a significant problem, because people cannot commute to the Isles of Scilly to work. It is difficult to commute to work for businesses providing those kinds of jobs in many of the coastal areas around Cornwall, and many people find themselves living in very informal settings, including caravans, because nothing else is available to them.

I will rapidly run through some of the regulations concerned: council tax; small business rate relief; the furnished holiday lettings scheme; holiday business registration, which the last Government proposed, and the planning use class changes. First, on council tax, going back to the pre-history where this all originated, when the Conservatives originally introduced the council tax system—what they called the community charge—they introduced a 50% council tax discount for second homes, because they said second home owners were not using all the services and therefore should not have to pay for them. That was the justification back in the 1990s.

[Jayne Kirkham (Truro and Falmouth) (Lab/Co-op)]

The hon. Member mentioned some of the solutions. Would it not be a good idea to consider giving a suite of powers to a local authority so they could pick and choose which of those would suit that local authority and those particular circumstances?

Employment Rights Bill

Jayne Kirkham Excerpts

2nd reading
Monday 21st October 2024 Commons Chamber

[Kevin Hollinrake (Thirsk and Malton) (Con)]

I beg to move an amendment, to leave out from “That” to the end of the Question and add:

“this House notes the balanced reforms made by previous Conservative governments to improve workers’ rights, including the National Living Wage, the prohibition of the use of exclusivity clauses or terms in zero hours contracts and the introduction of shared parental leave and pay, and declines to give a Second Reading to the Employment Rights Bill because it has been rushed into Parliament without full consultation to meet an arbitrary 100-day deadline and Monday 21 October 2024 Business Today: Chamber 19 has not been accompanied by an Impact Assessment considering the impact on the Employment Tribunal, especially as a result of the removal of the qualifying period for the right to claim unfair dismissal or the impact of the extra red tape on SMEs or the impact of establishing the Fair Work Agency; because the repeal of trade union laws will lead to more strikes and intimidation in the workplace, and will force taxpayers to foot the bill for inflation-busting pay hikes without public service reform; because the Bill undermines choice for workers about whether they want to fund political campaigning and forces firms and public bodies to bankroll more trade union facility time, including trade union diversity jobs; and because the Bill is contrary to the Government’s stated goals of improving productivity and economic growth and will increase costs for businesses and consumers.”

The Conservative party will always be the party of business, but we are pro-business and pro-worker, not least because many Conservative Members have been both workers and people who have started and grown their own businesses. Those who have done so are the first to appreciate the symbiotic relationship between the two. We acted during our time in office to improve workers’ rights in several areas: flexible working, parental leave, redundancy protections, ensuring that workers keep the tips left for them by their customers, and significant increases to the national living wage.

I started my first significant business back in 1992. Over three decades, we grew to become a national business employing hundreds of people. We valued every one of those people. We were one of The Sunday Times’s best 100 companies to work for and were certified by Investors in People. I believe that business is a force for good and that businesspeople do great service to our communities and the wider economy. As Winston Churchill put it, they are the strong horse that pulls the whole cart.

The question I now ask myself is whether I would start that small business again today if the Bill were in place. Sadly, the answer is probably no—certainly not a business that employed any people. The very high cost of these measures will be borne by all companies and passed on in the form of higher prices, reduced wages and lost jobs. The measures will fall most heavily on small businesses, for which they could be existential.

[Jayne Kirkham (Truro and Falmouth) (Lab/Co-op)]

Does the hon. Member remember 1997 and 1998, when the Conservative party said that the social chapter and the national minimum wage would cost half a million jobs? In the late 1990s, half a million jobs were actually created.

[Kevin Hollinrake]

I was not here at the time, but it is clear nevertheless that the minimum wage and the national living wage have had a positive effect on prosperity in this country, and I would be the first to admit it. I want the hon. Lady, and other Government Members, to understand that those measures fell equally on all businesses across the UK. The measures in this Bill fall disproportionately hard on small businesses.

What the right hon. Member for Ashton-under-Lyne (Angela Rayner) fails to understand is that the implication of these measures, such as a day one right to an employment tribunal, is that even a spurious case of unfair dismissal costs time and money. It is potentially tens of thousands of pounds to defend that case. As one business organisation put it, “You lose when you are accused.” Most small businesses saddled with such a cost would be sunk without trace. It is not just that, but the deterrent effect, which it would have had on me, and which will be felt right across the economy and by every existing and aspirant business person across this entire nation. When the Deputy Prime Minister reflects on what she is hearing from people who have actually run a business, will she at the very least consider exempting small and medium enterprises from this catastrophic Bill?

--- Later in debate ---

[Jayne Kirkham (Truro and Falmouth) (Lab/Co-op)]

As an MP from Cornwall, where we have seasonal workers aplenty, I should say that although the Bill talks about a suggested reference period of 12 weeks, after which average hours will be offered, employees do not have to accept that if they do not want to. They can choose to stay on zero-hours contracts.

We have a large demand for social care in Truro and Falmouth. Our population tends towards an older demographic. As many people leave friends and family to retire to Cornwall, the availability of care is especially important. Assistance for people who have disabilities, so that they can live independent lives and be supported into work if they choose that path, is crucial. Skilled care workers are chronically underpaid for what they do—they are often on the minimum wage—and good people leak out of the system, as it pays more to work in the local supermarket.

I worked as a teaching assistant at a local secondary school—I declare my interest in the register as a Unison member—and I was also an equity partner in a trade union law firm, so I have some experience of employing people, too. The pay for working in a school in a supporting role can also be very low—sometimes minimum wage. What the care and school sectors have in common, apart from poor rates of pay, is that, as others have said, they involve highly skilled jobs that are incredibly important for our society, and those who work in them are far more likely to be women. The Bill has many provisions that will help with sick pay and parental leave, and will give protection from unfair dismissal from day one. It also improves family-friendly rights, provides for flexible working, and has measures to tackle zero-hours and minimum-hours contracts. However, it also specifically gives respect and recognition to social care workers and school support staff through a fair pay agreement for adult social care, and by reinstating the school support staff negotiating body. This will be a game changer for those low-paid workers, mostly women, who work in care and in schools. It will mean that pay, terms and conditions for care workers and school support staff are negotiated nationally, and that a minimum is set across the country.

I am so pleased that the Government have chosen those two sectors as the first to have the opportunity for fair pay agreements. Women with caring responsibilities are often limited in the hours they can work. Historically, that has meant that, however skilled and important their jobs are, they have not been properly rewarded or looked after. Changing that will be transformational.

Truro and Falmouth has Cornwall’s only acute hospital and the seat of Cornwall unitary council within its boundaries. That means that we have a large number of people who work in the public sector. Many of those jobs have been contracted out, and the terms and conditions for those roles have been gradually eroded. This Bill enables Ministers to create a code to prevent the emergence of a two-tier workforce when outsourcing occurs. A new national procurement statement will make sure that the Government use their contracts to raise employment standards, not dilute them. This employment Bill is a huge step forward, and I am proud of it.

Renters’ Rights Bill

Jayne Kirkham Excerpts

Wednesday 9th October 2024 Commons Chamber

[Jayne Kirkham (Truro and Falmouth) (Lab/Co-op)]

Recent statistics show that 50% of the private rented sector in Cornwall does not meet the decent homes standard, way above the average of 21%. Less than 20% of homes in Cornwall were in the private rented sector four years ago, yet a quarter of our children and young people were living in those homes, including a third of our under-fives.

That has been evidenced by the noticeable uptick in recent years of section 21 evictions that affect families with young children. Cornwall now has more than 800 households in emergency or temporary accommodation, and many of them are young families who have struggled to find somewhere else to live because of the cost, their children or even their cats. Because of our geographical spread, many of those families have ended up in holiday parks, caravan sites or hotels up to an hour and a half’s drive from home. With poor rural transport links, this often leaves families completely cut off from jobs, schools and support networks.

In September 2020, Cornwall council’s economic growth committee published an inquiry into the private rented sector in Cornwall and recommended a number of measures to extend licensing powers. It also recommended data gathering on landlords and tenants in the private rented sector, Disclosure and Barring Service checks, longer terms and the limiting of annual rent increases. However, covid happened, further local government cuts affected officers’ capacity and the council changed to a Conservative administration that was wary of upsetting landlords following covid, so none of the recommendations was enacted.

Regardless of the council’s caution, the private rented sector has still been decimated in Cornwall, with many landlords selling up or flipping to lucrative short-term holiday lets. Prices have skyrocketed, and many people are struggling to find a home, which is why I am so pleased and relieved that the Government have prioritised this Bill. It will bring in many of the measures proposed by that Cornish report—at last, we will end no-fault evictions, introduce longer protected terms and limit annual rent rises. Awaab’s law will force landlords to follow strict timescales to inspect and repair homes, including those with damp and mould, and the decent homes standard will apply to the private rented sector for the first time, with local councils given the power to fine landlords who fail to address serious hazards.

Many people are shut out of the market if they have children or pets, or are on benefits. Changes to stop that happening will prevent the most vulnerable in my constituency remaining unhoused, and the heartache as people have to decide to give up treasured pets.

[Andrew Rosindell]

The hon. Lady is making some compelling points and mention pets. Does she remember the Dogs and Domestic Animals (Accommodation and Protection) Bill of 2020, which I put to the House all those years ago? I am glad that the measures in that Bill now being brought into legislation. Does she agree that this Bill needs to be extended further, so those in social housing, as well as those in freehold accommodation, can have a pet, so everyone can have a pet at home, and not lose their home because they love and care about their cherished animal?

[Jayne Kirkham]

I was not here when the hon. Gentleman introduced his previous Bill, but I am sure the Minister has considered the importance of pets to people living in all types of housing.

The court system and local authorities will need extra capacity to deal with the extra work created by the legislation. I was pleased to hear the announcements about digitisation and the ombudsman. The proposed changes will support the security of privately renting families in Truro, Falmouth and across Cornwall. As I have said, many people in Cornwall have been evicted from their rented homes with two months’ notice, so they can be used as short-term or holiday lets. We know that Cornwall council is the local authority with the largest supply of short-term lets outside London.

There are 24,300 holiday let properties in Cornwall, up 30% on 2019. Statistics from the council tax base tell us that over 13,000 second homes are registered in Cornwall, which is nearly 5% of the total housing stock and five times higher than the average across England. There are also 27,000 families on the waiting list for social housing, but Cornwall has only 10,000 council houses and 22,000 housing association homes.

I am pleased that the Minister is considering a toolbox of measures that could be made available to local authorities to discourage the further depletion of the private rented sector and full-time residential housing in Cornwall, such as the higher council tax that is coming in, licensing and registration, planning restrictions and closing the business rates council tax loophole.

In conclusion, I very much welcome the Bill. It provides many benefits for the people in Truro and Falmouth who rely on the private rented sector for their home, and certainty for the landlords who provide those homes.

UK Shared Prosperity Fund

Jayne Kirkham Excerpts

Thursday 12th September 2024 Commons Chamber

[Lauren Edwards (Rochester and Strood) (Lab)]

Thank you, Madam Deputy Speaker, for the opportunity to hold my first Adjournment debate in this House. I sought this debate because I am conscious that the forthcoming Budget is rapidly approaching and I wanted to raise with Members and Ministers the issue of the cliff edge for funding of the UK shared prosperity fund. Any future funding of the UKSPF is of course a matter for the Chancellor, but I would like to use the debate today to discuss the merits of the fund, how we can learn from the experiences of implementing it over the past few years, particularly in local government, and the approach to local growth funds under the new Labour Government.

We know that the Government’s top mission is to boost economic growth across the UK. It is my firm belief that a new, improved version of the UKSPF could make an important contribution to that while also supporting local communities and boosting regeneration efforts. I thank the Under-Secretary of State for Housing, Communities and Local Government, my hon. Friend the hon. Member for Nottingham North and Kimberley (Alex Norris), for his attendance today; I know that he cares strongly about local growth and supporting community cohesion, and I look forward to hearing his response at the debate’s conclusion.

The UKSPF was introduced as the domestic replacement for the European structural and investment fund after Brexit. The previous funding provided by the Conservative Government did not match the European structural and investment fund but did provide local authorities with some devolved funding to support local priorities, with particular emphasis on regeneration, business support and skills.

The UKSPF began in December 2022 and is due to end in March 2025. Although it is by no means perfect, I believe it has had a broadly positive impact and I would like to draw on my own experience as a former Medway council cabinet member responsible for distributing the UKSPF. Feedback from Whitehall to officials at the council has been that Medway council’s approach was considered best practice, and hence I am keen that the Minister hears about our experience. I know he is a big supporter of local government and evidence-based policy making, and no doubt he will wish to hear from other Members of this House who also have direct experience of the UKSPF.

In Medway, we used our UKSPF allocation to support local community groups, businesses and charities, which we considered best placed to recognise what their areas needed in order to thrive. Rather than a top-down approach, we asked communities what they needed and functioned as the facilitator to make things happen, using the UKSPF. The feedback we received was that this approach was empowering for local communities and brought people together. An SPF network was established that created a mutually supportive community that led in later years to joint bids for community projects.

The UKSPF’s potential to support broader regeneration efforts to revitalise our town centres is significant. In Medway, small pots of money delivered significant economic and social benefits. One of the ways I was particularly keen to use the UKSPF was to help our town centre forums host high street events, on the basis that this would bring in thousands of extra visitors and benefit local businesses.

A notable example of this is the Chatham Chinese new year festival, held earlier this year in what is now my constituency. I was the biggest such celebration in the UK outside London and led to an approximate 25% increase in footfall on Chatham High Street. The festival was free to attend and saw a parade, street food, a market, traditional dancers and martial arts masterclasses. The Chatham town centre forum partnered with the local Chinese association, the shopping centre, Medway Youth Council, and local schools and charities to deliver the event. Feedback from residents and vendors was unanimously supportive. Materials purchased using the UKSPF will enable the event to run for future years without further financial support from the council, so the UKSPF will leave a lasting impact. This is important because we want schemes like the UKSPF where possible to deliver longer-term benefits.

I will briefly turn to a few other ways that we used the UKSPF to support longer-term improvements in Medway. We offered small feasibility funds—pots of as little as £5,000—to help groups demonstrate that an idea would work. They could then use that proof of concept to go on to attract funding from other sources to make it happen. We helped community groups, such as the Chatham Intra Cultural Consortium, to transition into a charitable incorporated organisation, or CIO. Achieving that new structure means that it can bid for other sources of funding and is less reliant on financial support from the council. That means it can continue its incredibly important heritage work.

Helping groups to get on a more financially sustainable footing is particularly important in the context of years of constrained local government finance. We also used the UKSPF to provide grants to help businesses to grow by purchasing modern technology and equipment. For instance, a gift business specialising in handmade travel keepsakes was able to use the grant to invest in a new fibre laser machine, which significantly enhanced the business’s productivity and efficiency, allowing it to handle larger orders. We also funded net zero audits and green grants for local businesses that wanted to reduce their operating costs by making their premises more energy-efficient, and we helped them get those green certificates that are now needed to bid for many contracts.

[Jayne Kirkham (Truro and Falmouth) (Lab/Co-op)]

Does my hon. Friend agree how important the SPF is to areas, including Truro and Falmouth in Cornwall, that lost their funding under the European regional development fund and the European structural fund when we came out of the EU under Brexit? Does she agree how fundamental it is that there is some sort of replacement fund for that?

[Lauren Edwards]

I absolutely agree, and I will be making the case for that replacement fund later. I thank my hon. Friend for her contribution.

In my constituency, more than 30 local businesses have so far been supported under these UKSPF-funded programmes to reduce their costs, to grow their business and to contribute to helping us reach net zero. We would not be able to do that without this replacement funding for the EU structural funds.

I am conscious that in this final funding year the focus of UKSPF spending is on people and skills. It will be important for Ministers and others to assess the impact that these projects have on helping economically inactive people into good-quality training and work. The examples I have given are just a snapshot of how local councils across the UK have used the UKSPF. Overall, I consider that the UKSPF has worked well in my constituency, and I understand that it has worked well in others too, which is great to hear. It has delivered the economic growth and regeneration aims that this new Government are committed to boosting further.

Despite those successes, there have been challenges with the UKSPF, and it is appropriate that we consider them now, as the existing funding cycle comes to a close. Broader feedback from local authorities to the Local Government Association has highlighted a number of issues. The first is short timescales from Whitehall. Local authorities were given just three months to develop UKSPF investment plans in collaboration with local stakeholders. We need to give people more time to get the right approach and to put more emphasis on long-term strategic planning. The LGA has proposed that any future version of the UKSPF considered by the Government should adopt a six to eight-year funding cycle, and I would certainly endorse that approach.

We also need to reflect on the impact of single-year funding. The annual funding allocation of the UKSPF often led to local authorities commissioning services for just 12 months in order to manage the financial risk. For some projects, that is perfectly appropriate, but for those local areas using the UKSPF for business or skills support, for example, it made it more difficult to address some of the longer-term issues and inequalities in our communities.

Another issue is central Government restrictions. The requirement that skills be addressed in year 3 was an unnecessary restriction. We should trust local authorities to collaborate with their local partners in order to address community needs without such restrictions. I also consider that there is scope to improve and streamline the UKSPF reporting process, which some feedback has indicated was overly bureaucratic. It is of course important that the Government receive assurance that funding has been spent appropriately and used effectively. A fine balance will need to be struck in future.

Finally, I am aware that there were some delays in getting money out the door to local authorities to fund agreed projects. It is important that that, too, is considered by the new Minister for any future approach to local growth funding.

I will return to the immediate challenge that we face: the expiration of funding to support the UKSPF at the end of March 2025. Without continued funding of some sort, the types of initiatives that I have highlighted will struggle to continue or be replicated. I am not aware of any existing funding that would help fill the gap. For longer-term services such as business support and employability programmes that rely on establishing trust and employing staff, the cliff edge is of particular concern. Providers are likely to see staff leave as contracts get closer to their end dates, putting at risk efforts to support businesses and help people get back into work and stay in good, stable employment.

For those reasons, I join with the LGA to urge the Minister to work with the Chancellor to include an additional one year of flexible revenue funding for the UKSPF in the forthcoming Budget. The LGA has suggested that such funding should equate to the value of year 3 of the UKSPF programme. I ask the Minister to consider that as part of his discussions with the Chancellor. Doing so would remove the immediate cliff edge and give Ministers time to consider what the new Government’s approach to local growth funds should be. As I have set out, I consider that longer term allocations are needed alongside a more flexible and lighter-touch national framework that supports even greater local decision making. That would also give time to assess the full outputs of the UKSPF and what improvements can be made for a future replacement fund.

I am pleased to say that the outcomes achieved by Medway council already exceed those set out in the original UKSPF investment plan submitted to Whitehall some years ago. That data, alongside data from lots of other local authorities, should be available to Ministers and could provide a valuable steer on what approaches proved successful and what did not work. I am really confident that by learning from the past and working in partnership with local government to deliver a more flexible, longer-term funding scheme, the new Government could provide a real boost to local economies and communities that goes beyond far beyond anything that we have seen in the current UKSPF funding cycle.

--- Later in debate ---

[Alex Norris]

My hon. Friend makes an important point about the health of local government. Like many colleagues, I am a veteran of local government, and I am very conscious of the pressures it is under. As we design a new model for local growth, I am also conscious that local authorities will be at the heart of making it effective. If they do not have the capacity because of those pressures, that will be a limiting factor on our success, and I am very mindful of that.

I have seen at first hand the good work that the UKSPF has done in my constituency, and I appreciate why there is such interest in its future. It has helped to support organisations that are addressing unemployment and providing training, such as the Bestwood Partnership and Evolve, which have made a huge difference to our community. It has also backed community projects such as the Kimberley community garden, allowing its members to redevelop their site and continue important community outreach work. So I understand very strongly why there is such interest in the fund.

As my hon. Friend the Member for Rochester and Strood said, future funding is a matter for the Chancellor and the Budget—of course, we have the ongoing spending review, and the budget on 30 October. I appreciate the frustration that comes with that answer, but I am afraid that that is where we are at the moment. However, that does not prevent me from addressing a number of the points that my hon. Friend made.

It is one of the beauties of the electoral cycle and of our democracy that a change election brings in colleagues with a lot of different experiences. My hon. Friend talked about the impact that the £3.3 million from the UKSPF has had in Medway and about what she did to design the work involved, and I am keen to learn from that. It is good to hear how the funding has supported growth in high streets and towns, increasing footfall, supporting local businesses and regeneration in the town centres of Chatham, Rainham and Gillingham, and addressing local challenges and, crucially, opportunities alongside community leaders. It has also supported projects such as Emerge Advocacy, which supports young people struggling with their mental health, and Mutual Aid Road Reps, which was formed during the covid pandemic to combat loneliness and isolation. Those hugely significant projects reach people who are often the hardest to reach, and the UKSPF has backed them.

Similarly, and very attractively, as my hon. Friend said, the fund has made sure that there have been great events in Medway, such as the Chinese new year festival, Easter celebrations, heritage awareness events and the Intra Lateral arts festival. There are lots of great things, and the model in Medway shows that putting local people in charge and letting them set local priorities yields great results, including a significant increase in town centre footfall and a greater sense of community. When my hon. Friend says Medway is a model, there is a lot of evidence for that, and I look forward to hearing about it.

[Jayne Kirkham]

My query is about the current version of the shared prosperity fund. Some of the capital projects going on at the moment are time-limited to the end of March. Some will not be finished by then, but local authorities are rushing to complete them and spending more money because they are worried that some of it—the current money, not the future money—could be clawed back. Will the Minister confirm that that will not be an issue with those existing projects and that that money will not be clawed back, so those projects can be completed?

[Alex Norris]

I am grateful for that intervention. As my hon. Friend knows, I have inherited 15, 16 or 17 strands of local growth funding, all at different stages, with the decisions made, in many cases, many years ago. We are trying to make the most sense of them and get the best value out of them. With regard to the projects she mentions, I encourage my hon. Friend to help her local projects to engage with my officials, so that they can give clarity on precisely what the timelines are in the context of what may well be discussed as part of the Budget. I am very happy to work with her to make sure that that happens.

Turning to some of the challenges to the UKSPF mentioned by my hon. Friend the Member for Rochester and Strood, we have to start with the future of the programme. Local authorities, right hon. and hon. Members, and organisations across the country that deliver projects have rightly been seeking clarity on what comes next. My mailbag is very full, and we are giving the matter full consideration. We recognise the hard work undertaken—it is important that that is stated from the Dispatch Box—and we recognise the challenges that time poses. Organisations traditionally funded in annual cycles constantly have to put hard-working members of staff on 90-day redundancy notices. That puts pressure on people who then perhaps seek other work, because it does not suit them and their life—and why would it? We understand that those cliff edges are not a good thing. They are at the forefront of our minds as we think about the future.

Short-term Lets: Regulation

Jayne Kirkham Excerpts

Thursday 12th September 2024 Westminster Hall

[Jayne Kirkham (Truro and Falmouth) (Lab/Co-op)]

This debate was called by a London Member, my hon. Friend the Member for Cities of London and Westminster (Rachel Blake). I am grateful to her, but I am happy that so many Members from across the country are here too. I wanted to make sure that our voice from Cornwall, where this is a really big issue, was heard very loudly. We have been running a “first homes, not second homes” campaign for a number of years.

Cornwall is the local authority with the largest supply of short-term lets outside London. There are around 24,300 properties in Cornwall, which is up 30% on 2019, while there are about 27,000 houses on the social housing waiting list—hon. Members can see the balance there. Statistics from the council tax base tell us that there are probably about 13,000 second homes registered in Cornwall. That is nearly 5% of the total housing stock, which is nearly five times higher than the average across England. Plus, we have roughly only 10,000 council houses and 22,900 housing association homes in Cornwall. We have 800 families in emergency or temporary accommodation. Lots of families have been evicted under section 21—a situation that will hopefully improve, now that the Bill has been introduced. Businesses struggle to get key workers. The private rented sector has all but collapsed in Cornwall, to be honest.

The taxpayer has lost about £20 million per year, as a result of the loophole allowing second homes to be registered as holiday lets for business purposes: they pay neither council tax nor business rates. During covid, approximately £170 million went to properties that were registered as business lets, with £100 million of that going out of Cornwall, which shows the ownership of the properties.

We have done an awful lot of work on this, and I suggest that the Minister should consider a toolkit of measures to deal with some of the issues. First, lots of people have talked about a licensing scheme obliging owners of short-term lets, including Airbnbs, to register them for a fee for three years, which seems like a sensible amount of time. We would then know how many there were and where, and could push for fire and safety checks to be mandatory. It would be a similar scheme to the licensing of houses in multiple occupation, which currently only applies to homes registered for five or more people; it would seem sensible to increase the scope of HMO licensing as well.

Secondly, we want the business rates/council tax loophole closed. It should not be possible to pay no council tax or business rates on a property; it is just not fair. Thirdly, Cornwall council has already voted to double the council tax on empty second homes, and has actually asked the Government if it can triple it. Given that the council is Conservative-run, and that this decision was agreed cross-party unanimously, it shows how severe the problem has become in Cornwall. If we were to implement that, every time the council tax was doubled it would raise £25 million.

Finally, we should create a planning use class for short-term or holiday lets, so that homeowners need to actively apply for permission for the change from “lived in” to “holidayed in”—flipping the default that the Conservatives suggested. Those are the four measures I would like to see in the toolkit, which could be given to local authorities or could form part of the devolution package.

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[Rushanara Ali]

I thank my hon. Friend for the offer on the Bill that she prepared earlier, and I know that officials listening to this debate will consider the range of suggestions and proposals that colleagues are making today.

We know that many local authorities are eager for the registration scheme to be operational as soon as possible. We share this view and officials are currently working at pace to operationalise the scheme. The Department for Culture, Media and Sport is now in the initial phase of a digital development process for the register, which will allow us to test and refine the possible options for design and delivery of the scheme. We will factor into that process the points made today and will update the House in due course.

As hon. Members have highlighted, London is unique in England in having certain powers regarding short-term lets. Since 2015, primary legislation has provided that homes in London that are liable for council tax may be let for temporary sleeping accommodation for up to 90 nights in a calendar year. Planning permission is required to let for more than that. However, as has already been pointed out today, in practice local authorities in London report that this limit is difficult to apply and enforce, due to a lack of data on addresses, ownership and the number of nights that properties are let for, and because of limited enforcement capacity. Points were well made in this debate about other parts of the country that do not have the London scheme.

We recognise that more needs to be done to ensure that authorities in London have the tools they need to enforce the limit. As we design the short-term lets register and consider future policy, we will keep in mind the uniqueness of each area of our country and in particular the interactions with the existing legislation that applies to London.

I recognise that the current taxation of short-term lets can be seen to incentivise such use. The Government have confirmed that we will abolish the furnished holiday lettings tax regime from April 2025, which will remove the tax advantages that landlords offering short-term holiday lets have over those providing standard residential properties.

At the end of July, the Government took concrete steps to abolish the regime by publishing draft legislation, which includes transitional arrangements to help landlords to adjust to the change. Councils will also be able to charge a council tax premium of up to 100% on second homes from April 2025. It is for councils themselves to decide whether to charge such a premium in their area.

[Jayne Kirkham]

I have just one small point to make about the furnished holiday letting scheme. There are some properties in Cornwall for which there are planning restrictions that say they can only be holiday lets and nothing else can be done with the property, because it may be on the same premises as the first property. I just want the Government to be aware of that when the regulations are developed.

[Rushanara Ali]

I thank my hon. Friend for her contribution.

Where a short-term let does not meet the relevant lettings criteria, it will usually be considered a second home and will be liable for council tax, including the council tax premium where councils have introduced it. However, we recognise that this may not go far enough towards ensuring that all short-term lets are properly contributing to the local tax system, as the premium will not impact those short-term lets that are eligible for business rates. We will continue to keep the tax treatment of short-term lets under review and will consider what more is needed to achieve our aims.

Short-term lets are just a part of the housing challenge in our country, which is why we are determined to address the issue of affordability and to do what is necessary to get Britain building again.

Housing: Cornwall and the Isles of Scilly

Jayne Kirkham Excerpts

Monday 9th September 2024 Commons Chamber

[Jayne Kirkham (Truro and Falmouth) (Lab/Co-op)]

Thank you, Madam Deputy Speaker, for granting extra time for a debate that is so important for Cornwall and for giving others a chance for speak about its very particular housing issues. I also thank the hon. Member for St Ives (Andrew George) for initiating the debate. As he said, about 27,000 people are on Cornwall’s housing waiting list, and about 800 are in temporary and emergency accommodation. Many of them are families with young children, who are placed in caravan parks and holiday homes that are up to an hour and a half or two hours away from their support networks, their schools, their jobs and where they live. This is really affecting community cohesion, upsetting families and causing real hardship.

The council is struggling with the need, and the cost is vast. It is providing bunk cabins in council car parks for people to live in as emergency and temporary accommodation, which is very difficult. So many people in Cornwall are now living in their vans, because they simply have nowhere else to go. I am finding that families are moving into emergency accommodation, and that the single people who were becoming homeless when I was first a councillor in Cornwall are now living in their cars. The situation has become really dire.

Businesses are now finding that key workers have nowhere to live, so we have people coming down to work in the hospitality sector or in agriculture. The same is true for professionals, such as teachers, nurses and doctors—a headteacher in Cornwall struggled to find somewhere to live, and she had to give up her job and move away again. There is now a movement called Homes for Cornwall, whereby businesses are coming together to try to find alternatives solutions to deal with the housing crisis, which has become so bad that they cannot find staff. As the hon. Member for St Ives said, we have a very low number of social houses in Cornwall—only 10,300 council homes.

I want to talk about the affordable housing programme grant, which a previous Secretary of State, Michael Gove, suspended for Cornwall because of the poor performance of the housing provider Cornwall Housing, which is an arm’s length company owned by the council. That performance has now improved, and the grant is desperately needed for a new social housing scheme in Redruth, but it has not been returned. I ask the Minister to look into that, and to see whether other local authorities in this situation have been treated in the same way and lost their grants. Has that grant moved to other registered providers in Cornwall, or has it left Cornwall completely? Is there any way we could get that back and backdate it?

The other issue, which the hon. Member for St Ives spoke about, is second homes and holiday lets, which have absolutely exploded in Cornwall, particularly since covid. The private rented sector has been decimated and is now virtually non-existent. We have struggled so much with section 21 notices, which explains to a great extent why so many of our families are now in emergency and temporary accommodation.

[Ben Maguire (North Cornwall) (LD)]

I thank the hon. Member for giving way, and I commend my hon. Friend the Member for St Ives (Andrew George) for securing this excellent debate. It is great to welcome him back to his place; he brings a wealth of expertise in this area. I also welcome the hon. Member for Plymouth Sutton and Devonport (Luke Pollard) to his place. I hope that he understands some of the issues that have been raised in this debate, given that he is a close neighbour of ours.

I welcome the cross-party co-operation that we are seeing from hon. Members across the House this evening—although not so much from the Conservative Benches, unfortunately. Cornwall faces a real housing emergency, and it is critical that we work together to fix it. As my hon. Friend mentioned, we must finally move away from building more and more executive housing that has little to no infrastructure, and focus on local need.

--- Later in debate ---

[Jayne Kirkham]

I thank the hon. Member for his intervention. I will shortly move on to some of the ways in which we can deal with the proliferation of second homes and holiday lets, and address the imbalance.

I want to reinforce the point that the hon. Member for St Ives made about the tax loophole. I think £18 million is now lost in council tax because so many housing providers have taken advantage of the loophole whereby they can claim business grants and the zero rate of exemption, rather than pay council tax, if their houses are let out for 10 weeks of the year. As the hon. Member said, so much money was lost in business grants during covid. I think £170 million in business grants went to properties that were registered as holiday lets.

I want to mention my hon. Friend the Member for Plymouth Sutton and Devonport (Luke Pollard), who cannot speak in this debate. He has worked hard with us in Cornwall on the issue of protecting first homes, rather than second homes, and he has supported us, as I know that the same issue applies up in Devon. We have spoken with the Minister about potentially having a toolkit of measures that could be used to deal with issues relating to second homes and holiday lets. I know that our Government will introduce one of those measures: the licensing of holiday lets, hopefully with fees and safety checks on those lets, which is not done at the moment—some properties are not checked for fire safety, or for safety in any way. That is a massive loophole that needs to be dealt with.

The hon. Member for St Ives talked about planning requirements. The previous Government had a review on introducing a use class for holiday lets—but then did not do very much about it—so that is one possible measure. The default could be second home owners having to apply for a change of use if they flip their homes to holiday lets.

[Andrew George]

On the C5 category, and further to the excellent point that my hon. Friend the Member for North Cornwall (Ben Maguire) made, the last Government tinkered with this, announcing and reannouncing on many occasions a proposal to introduce a use class for holiday lets, but does the hon. Lady not agree that that would be far better if it applied to all non-permanent occupancy, whether second homes or holiday lets? Otherwise, there will continually be flipping from one to the other to avoid regulation.

[Jayne Kirkham]

I thank the hon. Member for that point. I wanted to talk about council tax in particular, because, strangely, one of the few things that the entire council agreed on—we have a Conservative council in Cornwall at the moment—was doubling the council tax on empty second homes. In fact, we wrote to the Secretary of State at the time to ask whether we could triple the council tax on second homes, as they do in Labour Wales—that was a very unusual thing to do. Of course, as has been discussed, this is about looking at closing the loophole so that the owners of the property cannot flip between business rates and council tax. That would mean an £18 million a year gain in council taxes.

I agree with the hon. Member that we should encourage co-operative and community housing in Cornwall. That is very popular, and if it was supported more, there would be a great deal more of it. In fact, our cabinet housing member in Cornwall has said that if every village built 10 homes, that would deal with the housing crisis completely. Discouraging hope value, particularly in certain parts of Cornwall, would be very helpful. I know that forcing developers to deliver their affordables rather than relying on the viability defence is part of the Government’s plans, because so often developers get to a point and say that they cannot afford to build the affordable houses that they promised. Another real problem is that the cost of building has shot up because the contractors in Cornwall have dropped in number and have become a great deal more expensive.