Rail Cancellations and Service Levels

Debate between Jeff Smith and Nigel Evans

Thursday 1st December 2022 Commons Chamber

[Mr Deputy Speaker (Mr Nigel Evans)]

I thank the Minister for responding to the urgent question for almost 45 minutes.

[Jeff Smith]

On a point of order, Mr Deputy Speaker.

[Mr Deputy Speaker]

If it relates to the preceding business, I will take it.

[Jeff Smith]

Thank you, Mr Deputy Speaker.

I thank those hon. Members who pointed out the slip of the tongue in my question to the Minister. Apparently, I said that the West Midlands Mayor was late for a meeting with the Secretary of State; I meant, of course, the West Yorkshire Mayor. I would not want to impugn Andy Street’s timekeeping, so I am grateful for the opportunity to correct the record. I am not criticising Tracy Brabin’s timekeeping either: the fault, as usual, lies with TransPennine Express.

[Mr Deputy Speaker]

Thank you very much. That is now on the record.

Sharing Economy: Short-term Letting

Debate between Jeff Smith and Nigel Evans

Thursday 16th June 2022 Commons Chamber

[Mrs Natalie Elphicke (Dover) (Con)]

The hon. Gentleman mentions Airbnb. In the town of Deal, which I represent, there is a particular problem of Airbnbs that are not registered. Does he agree that having a registration system for Airbnbs would be a sensible move to protect coastal communities and tourism in areas such as mine?

[Mr Deputy Speaker (Mr Nigel Evans)]

I was hugely generous, and so was the Front-Bench spokesman, in allowing that intervention, for obvious reasons.

[Jeff Smith]

The hon. Lady makes an important point. I will come on to registration, but clearly we do need to look at the options.

We have heard about the problems caused, with residents citing health and safety concerns where temporary residents are not familiar with or do not care about safety rules. There are issues with short-term rentals being used for parties, and we have heard about noise and antisocial behaviour. However, the longer-term concern, which I think is probably the more significant, is around the sustainability of communities when too many residential properties become short-term lets. I will talk about that in a second.

In London, as we have heard, the law currently allows short-term letting of residential properties for a maximum of 90 nights in a calendar year without planning permission. Since 2017, Airbnb has automatically limited entire home listings in Greater London to 90 nights per calendar year, to encourage compliance with that law. By February 2020 two similar platforms, HomeAway and TripAdvisor, had also implemented a cap. The Mayor of London has encouraged other platforms to do the same, but there are easy ways around those rules, as we heard earlier, and many properties are still being let out on a short-term basis for more than the permitted 90 nights. When the 90-night limit is exceeded illegally, the issues are compounded and likely to grow and grow.

Outside London, there is no specific limit on how long a property can be let out on a short-term basis, and it is up to local planning authorities to judge whether the letting amounts to a material change of use and requires planning permission. As well as the difficulties that we have talked about for residents, as my hon. Friend the Member for Westminster North pointed out, the complaints about antisocial behaviour are putting pressure on local authorities and their resources, already overstretched following years of Tory and coalition Government cuts to local authorities. That puts huge pressure on local enforcement teams.

The hon. Member for Cities of London and Westminster (Nickie Aiken) is calling for the introduction of a licensing scheme, making it mandatory for anyone renting out their property on a short-term basis to have to register it. That would make it easier for local authorities to tackle some of those issues and the law-breaking that might arise. I pay tribute to my hon. Friend the Member for Westminster North for her consistent campaigning on this issue and her work over a number of years, calling on the Government to give local councils more powers to manage how properties are used for short-term rentals. Those are all proposals that must be looked at seriously by the Government.

I know from my own constituency in south Manchester the problems that occur when houses become party let houses. It used to be in my area that it was only the student houses in multiple occupancy that became party houses and posed a real problem for long-term residents, but now a lot of our houses are let out by Airbnb and are causing real difficulties for the long-term residents with noise, litter and disturbance.

The hon. Member for Edinburgh East talked about control zones. When I was a councillor in Manchester, we introduced an article 4 direction to limit the number of HMOs that could be permitted in an area, and that kind of innovative approach is something we need to look at. It would be interesting to see how the control zones in Edinburgh work and how we can learn from them.

As well as the kinds of problems that my constituency and other urban areas are experiencing, the prominence of second homes and short-term lets is causing a housing and public services crisis in popular tourist destinations across some of the more rural parts of the UK. Cornwall, Cumbria, Northumberland, the west country, Shropshire, parts of Yorkshire, the Scottish highlands, as we have heard, and rural Wales have all suffered. To thrive, communities need investment, employment opportunities and, in many cases, thriving tourism industries, but they also need affordable homes for local people. Accelerated by the pandemic, many of these areas have seen house prices soar and availability drop as wealthy outsiders buy up second homes, often for buy-to-let, and then they discover that owners can often get more money from a short-term let than from a long-term tenant.

Properties that were previously for permanent rental are being turned into Airbnb holiday lets, which impacts directly on the affordability and availability of local homes, particularly for local first-time buyers and private renters. It also means that houses are left empty for large chunks of the year, reducing permanent populations. That can have pretty disastrous impacts on the local community, such as: school closures, because families are forced out and schools become unsustainable; cuts to transport services and buses; and health and other services disappearing as demand drops.

It seems pretty clear that the Government need to explore whether and how local authorities can be provided the powers to tackle this issue. We have heard a few examples. We can introduce licensing regimes for second homes and short-term lets, we can consider giving councils greater discretion over council tax regimes and we can look at allowing local authorities to levy more premiums or surcharges on second homes and long-term empty properties, if they believe it is needed in their locality. Some local authorities are backing calls for more powers in planning to recognise short-term rentals as a different use class, meaning that people who want to use their home exclusively for Airbnb would need planning permission. Local authorities could control how their local areas operate in a number of ways.

It is welcome that the Government committed to launching a consultation on the introduction of a tourist accommodation registration scheme in England. So far, we have seen no sign of it. It was promised in early 2022. We are mid-June, so we have probably passed “early 2022”. I would be very happy if the Minister could confirm when the consultation will open and how long it will run for. While we continue to wait for it, I welcome the news that the Labour Mayor of London has just launched his own consultation on the issue. I encourage everyone in London affected by this issue to participate before the consultation closes on 4 July.

The rise of Airbnb is just one example of the emergence of the sharing economy. Many businesses have become everyday fixtures of our modern lives. At their best, these platforms can be about reducing waste, pooling space, skills and items, and making life easier and more sustainable, but it does not always work like that, and when it becomes commercial, it can cause difficulties. When Airbnb and similar websites first emerged, it was about individuals occasionally making a bit of extra income on their spare room or own property, but things are very different now. A large part of the short-term rental market is now a wholly commercial enterprise. Residential properties are being used as letting businesses without the required planning permission, local authority oversight or protections for neighbours and communities. We clearly need to respond now to that different context.

Let us learn from the examples we have heard about from abroad. Let us look at the changes in Scotland and elsewhere. Airbnb has said that it is willing to work with the Government on regulation to ease some of the challenges to which it is contributing. It published a healthy tourism commitment and the “Short-term Lets Registration White Paper”, which calls for the introduction of a simple nationwide registration scheme for the short-term lettings sector.

The willingness is there from stakeholders. The political imperative is there, I would argue, and the political consensus is there that we need to get a grip of this. The need is certainly there, as has been well articulated today. It is now time for the Government to act, to start to tackle this issue and to get the balance right for our communities.

Rating (Coronavirus) and Directors Disqualification (Dissolved Companies) Bill

Debate between Jeff Smith and Nigel Evans

Report stage & 3rd reading
Thursday 9th September 2021 Commons Chamber

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

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

[Mr Deputy Speaker (Mr Nigel Evans)]

With this it will be convenient to discuss the following:

New clause 2—Guidance on non-domestic rating and coronavirus—

‘(1) The Secretary of State must, no later than three months from the day on which this Act is passed, publish guidance for local government bodies on the application of—

(a) the provisions of section 1 of this Act, and

(b) the wider local business support policy framework associated with that section.

(2) In preparing the guidance the Secretary of State must consult—

(a) independent experts, and

(b) representatives of companies whose non-domestic ratings determinations are affected by section 1.’

This new clause would require the Secretary of State to publish guidance to local government bodies on the application of the provisions of section 1 of this act. This guidance must be prepared following consultation of independent experts and businesses whose business rates appeals are affected by section 1.

Government amendments 1 to 6.

[Jeff Smith]

I am conscious that we have an important debate to follow and that time is pressing, so I shall be relatively brief. Labour’s broad support for this Bill has not changed. We recognise the urgent need to support businesses, as well as the Valuation Office Agency, and the need to close a legislative gap exploited by unscrupulous directors. The Bill remains lacking in some safeguards. Labour attempted to correct that in Committee, but we were unsuccessful. The new clause is concerned with the resourcing and capacity of the Insolvency Service to deal with the new measures relating to directors of dissolved companies.

As we heard from witnesses in July at the evidence sessions, unscrupulous directors can cause significant suffering to those who have invested in or loaned to their companies. Too often, these directors are able to absolve themselves of their financial responsibilities by dissolving their companies and creating a financial and time barrier to holding them to account. So clauses 2 and 3 of the Bill allow for a director to be investigated and disqualified before their company is restored. That plugs the important gap and is a welcome measure; it removes a costly barrier, both in monetary and time terms, to accountability and financial responsibility.

However, as Duncan Swift, the former president of R3 highlighted in the Bill’s evidence sessions, these provisions could see the Insolvency Service take on 10 to 15 times the number of investigations it currently undertakes. Despite that potential increase in workload, there is no indication in the Bill that the Government plan to increase funding and resources at all for the Insolvency Service, let alone to do so by the significant amount it might need to allow it to cope with the extra investigations. So Labour is calling for new clause 1 to be added to the Bill to ensure that there is appropriate, regular oversight and scrutiny of the Insolvency Service’s ability to carry out this increased workload. If it is not given the resources to carry out its increased responsibilities, clauses 2 and 3 of the Bill become, in effect, redundant. New clause 1 would ensure that parliamentarians and others are kept updated on the Insolvency Service’s ability to carry out its tasks and on any need it has for extra resources. We do not intend to press the new clause to a vote, but we think it is important to make this point, particularly given that the Insolvency Service cannot apply to court for the disqualification of a director whose company has been dissolved for more than three years. That means that the Insolvency Service does not just need extra resources to carry out the additional investigations; it needs them to carry out those investigations promptly, within that three-year timeframe.

As Dr Tribe summarised:

“The Insolvency Service needs to be properly funded to ensure that this additional disqualification work can happen.”––[Official Report, Rating (Coronavirus) and Directors Disqualification (Dissolved Companies) Public Bill Committee, 6 July 2021; c. 18, Q29.]

Although this Bill goes some way to helping tackle financial corruption, the Government could and should go further. The Bill is too narrowly defined for any financial amendments, but the Government could provide a stronger deterrent, beyond disqualification, for unscrupulous directors.

Let me briefly turn to the other new clause and amendments. New clause 2 stands in the name of the hon. Member for Richmond Park (Sarah Olney) and we do not disagree with it. However, we think we do not have to wait for this until the day the Act is passed. It is clear that there is cross-party support for the Bill, that it will pass and that businesses are desperate for support in the current circumstances. So we see no reason why indicative guidance cannot be published and sent to local authorities, as well as possibly indicative amounts for the grants that local authorities will receive, so that they can get on quickly with designing their schemes, ready for when the Act passes. I make the point that we made in Committee that this should not be on a per-head basis; it should take into account the effect of the pandemic on different regions and on different sectors of the economy. I also note the Government’s technical solution, which allowed the backdating of these grants so they effectively apply this financial year.

Business of the House

Debate between Jeff Smith and Nigel Evans

Thursday 9th July 2020 Commons Chamber

[Mr Deputy Speaker (Mr Nigel Evans)]

There are 16 Members still trying to catch my eye. I would like to get you all in, but succinct questions and answers, please.

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

Earlier this week, I chaired a meeting of the all-party parliamentary group on mental health. We heard about a worrying rise in urgent mental health referrals and a similarly worrying reduction in routine referrals, flagging up a probable pent-up demand on mental health services. May we have a debate on how the NHS can be helped to deal with the mental health consequences of the pandemic?