Local Government Funding Settlement

Jim Cunningham Excerpts

Thursday 13th December 2018 Commons Chamber

[James Brokenshire]

Clearly, it is for individual councils to make their decisions. I gently remind the hon. Lady again that these changes have had to be made to deal with pressures in the public finances, and that councils have had to make hard decisions because of the bigger macro issues we have had to deal with. However, I hope that she will recognise the increase in core spending power that Rochdale will see from the announcement I have made today. I encourage councils to do all that they can through local decision making, knowing that, yes, changes have had to be made, and that is a consequence of some of the implications we have had to pick up as a Government.

[Mr Jim Cunningham (Coventry South) (Lab)]

Over the past eight years, Coventry City Council has lost well over £100 million in resources from the Government. It faces pressures on children’s services, youth services and social care—and it is about time we had the Green Paper on social care. It would have been more welcome if we had been able to look at the overall picture and could ask questions now about the police precept, so that we could make a judgment about the 2.8% increase in cash terms. We would then have got a better judgment because, under the guise of local democracy, the Government are shoving their responsibilities for funding local services on to local authorities. Local authorities will then get discredited, and in three or four years’ time the Secretary of State will come along and talk about capping profligate local authorities. He needs to get real for a change.

[James Brokenshire]

I say gently to the hon. Gentleman that he will have an opportunity during the statement to follow to raise any questions about policing—or about what I have said today about flexibility on the police precept—with the Minister for Policing and the Fire Service, who has just joined me on the Front Bench. I am sure my hon. Friend listened very carefully to what the hon. Gentleman said. This is about providing our police with additional funding to meet their needs and those of local communities, and such flexibility is one of the means of doing so.

Oral Answers to Questions

Jim Cunningham Excerpts

Monday 10th December 2018 Commons Chamber

[Kit Malthouse]

My hon. Friend is quite right to raise the disappointment of his constituent. I am sorry that there were winners and losers in the ballot, but it was laid out early on in the pilot that the £200 million was capable of funding only a certain number of sales. We reckon that will be less than 6,000; we over-programmed it because not everybody will be able to proceed. Once the pilot is completed, and we can assess the results and the demand, we will be able to take a view on where we go next.

[Mr Jim Cunningham (Coventry South) (Lab)]

Will the Minister clarify the Government’s position in relation to the right to buy in the voluntary sector? As he knows, the voluntary sector is under a lot of pressure.

[Kit Malthouse]

As the hon. Gentleman will understand, the pilot is a voluntary pilot. We agreed with the National Housing Federation that the midlands was a good place to do it to assess, from both the housing association sector and the Government side, how we can best effect and fulfil the aspiration of the majority of housing association tenants who want to own—from a financial point of view but also from an effectiveness point of view. We want the pilot to bed in, to see how it performs over the next couple of years and then to reach some conclusions after that.

Housing Bodies: Accountability

Jim Cunningham Excerpts

Tuesday 20th November 2018 Westminster Hall

[Mr Jim Cunningham (Coventry South) (Lab)]

I beg to move,

That this House has considered the accountability of housing bodies.

You and I have known each other for a long time, Mr Hollobone, and I am not sure whether this is the first debate I have been at that you have chaired, but nevertheless, it is welcome to see you in the Chair.

I want to examine a number of core issues in this debate before giving some recommendations to the Government. First, I want to look at the adequacy of the assessment that is currently in place to examine the quality of the design and build of new houses. I also want to consider the accountability of housing organisations when they have made mistakes or are mistreating customers, as it is my opinion that currently, they are not adequately held to account. Lastly, I want to address the way in which data regulations apply to Members of Parliament. That issue has arisen in relation to a housing organisation through my casework, and I know that many other Members have encountered similar problems in their own casework.

We have had numerous debates on the urgent need for more, and better-quality housing. I support efforts to increase the number of houses being built, and that should be happening at a faster rate. It is also vital that those homes are council-owned—I have always believed in that, and the privatisation of housing since 1980 has contributed to the issues that I will be addressing.

In Coventry, we have had several problems with housing organisations’ unhelpfulness when responding to their residents’ concerns. A quick search of our casework database has shown that dozens of constituents have contacted me this year about their housing situation. Housing organisations seem to be particularly unhelpful when responding to complaints, and the same names of problematic housing organisations keep coming up.

[Tulip Siddiq (Hampstead and Kilburn) (Lab)]

I thank my hon. Friend for bringing this important debate before the House. Many of the concerns that he has cited, and those I am sure he will be citing later, have been represented to me by my constituents who face similar issues, especially Robert Taylor from the Camden Federation of Private Tenants. Does my hon. Friend agree that it is high time that a Select Committee inquiry takes place, examining the accountability of housing associations and their lack of oversight by both tenants and Members?

[Mr Cunningham]

I could not agree more. Such a review is long overdue, as even the data protection people do not give us clear answers about what information we are entitled to. They seem to forget that at the end of the day, we are the last line of defence for tenants—and anybody else who has problems, for that matter.

[Jon Cruddas (Dagenham and Rainham) (Lab)]

Does my hon. Friend agree that one of the major problems is the transparency of housing associations? We had a notorious case in Orchard Village in South Hornchurch, which was raised in a debate in this place. One of the big problems was that housing associations were departing from their historical, ethical role of filling gaps in the market and becoming housing developers themselves, lacking oversight and transparency, and therefore no comeback was possible on behalf of our constituents.

[Mr Cunningham]

My hon. Friend has highlighted another major problem: at times, housing organisations hide behind the Data Protection Act 1998 to obscure the fact that they are bad managers of housing estates. That suggests that there is a wider issue with competition in the market, allowing poorer customer service to go unchallenged. Like most parts of the country, Coventry has recently seen some new, small-scale housing developments, and issues have arisen in a significant number of those developments as a result of the quality of the build. One recent example in Coventry has been the Philmont Court development in Tile Hill. That development of 48 flats is actually in my neighbouring constituency, that of my hon. Friend the Member for Coventry North West (Mr Robinson), who cannot be here today because he has other business.

[Seema Malhotra (Feltham and Heston) (Lab/Co-op)]

My hon. Friend is making some powerful comments, and I thank him for securing the debate. Over the past few years, I have had considerable issues in my constituency, particularly with A2Dominion and FirstPort. Does he agree that the quality of build requires stronger regulation? I have had issues with letterboxes where mail can be taken from outside, and with residents saying that poor-quality materials are being used, particularly in areas where there is shared ownership rather than private ownership. All of that reduces confidence, particularly among first-time buyers, and those who are struggling and making ends meet in order to get on to the housing ladder and feel proud of the home they live in.

[Mr Cunningham]

That is why I mentioned the Philmont estate in the constituency of my hon. Friend the Member for Coventry North West. There, there has been bad workmanship—to say the least—and a bad build. Residents have been moved out of their houses for a period of about 40 weeks and cannot get any compensation. They have to rent privately to get accommodation; who is going to compensate them? My hon. Friend the Member for Feltham and Heston (Seema Malhotra) has highlighted similar problems to those we have in Coventry. The builders, Persimmon, have particularly let down residents by refusing to take any responsibility or pay compensation.

Of course, there are sometimes unforeseen issues with the quality of the design and building of a house. However, there seem to be widespread problems with new builds due to rushed building and substandard resources. I also hear from an increasing number of constituents about delays in moving into their new-build houses. I have one constituent who has had a seven-month delay in the building of her new home this year, which has made her and her children homeless: they are having to get by in a friend’s spare room. I am certain that that is the case across the country, as my hon. Friend touched on. I am also sure that there are many more people out there who are affected by delays, but who never contact us because they do not think they will get anywhere.

I would like the Government to review the checks that are currently in place regarding the design and build of houses. They should also look at the support offered to customers by housing organisations when issues arise. We must make sure that mistakes and errors are found early in the process, and that delays are lessened as much as possible.

[Mary Glindon (North Tyneside) (Lab)]

Can we please note that the things that are wrong with these houses are not simply minor issues? I spoke to a woman on Saturday whose staircase had twice collapsed. Another constituent had the roof of their new home collapse. These problems are really serious; they are not just little things that need to be put right after someone has moved in.

[Mr Cunningham]

I fully agree with my hon. Friend. Given local government cuts, trading standards officers cannot police this sector any more—it is as simple as that. That is one reason why these housing organisations are getting away with it, but the law should be tightened up as well.

[Seema Malhotra]

Does my hon. Friend agree that poor-quality materials can have other impacts, not just on the benefit of the asset if it is in shared ownership, but by creating situations where the quality of the ceilings or the walls results in greater noise going through from one property to another—people being able to hear each other’s toilets flush, for example? That impacts on neighbourly relations and puts residents in a difficult position. Finally, regarding the architecture of how blocks are built, there have been cases where bin storage areas have been built on the ground floor of flats. That has resulted in rats running riot through those properties, causing tremendous damage and requiring expense on the part of residents to put it right.

[Mr Cunningham]

I agree with my hon. Friend. We are building up health problems among future generations, particularly the young children who are growing up in these properties. We had thought we had moved away from the type of housing that people used to experience in the 1930s.

I now want to discuss the accountability that Members offer when we work on behalf of constituents through our casework.

[Dr Dan Poulter (Central Suffolk and North Ipswich) (Con)]

I congratulate the hon. Gentleman on securing the debate. He is making some very good points, but on the wider issue of accountability, rather than accountability just to Members, we are talking about a comprehensive public service that is offered to residents, including those with disabilities, older residents and people recovering from illness. Do we not need more oversight and more joined-up thinking between housing providers and other parts of the public sector? The current lack of oversight and lack of integration with the housing associations makes things very difficult. We end up further marginalising some very vulnerable people as a result.

[Mr Cunningham]

I agree with the hon. Gentleman, but I would add that we need the resources, too. We cannot have joined-up thinking without providing them. We have to provide the resources for resolution of the problems, even if we have joined-up thinking. I do not necessarily disagree with him, but it is a question of resources.

I recently had a piece of casework where a constituent had an issue with his housing association, Orbit Housing, in Coventry. Without going into too much detail, the constituent had a concern that Orbit Housing was not adequately dealing with. I wrote to Orbit Housing, and we had the usual initial exchange of correspondence before it investigated the matter further. However, the correspondence I was receiving soon stopped, and I had to chase it for what was an undetailed response. We have all had experiences of delayed and undetailed responses to casework correspondence—I would like to see an improvement in the speed and helpfulness of responses—but that is not the main issue arising from this case. When I eventually received a final letter from Orbit Housing, it was highly unsatisfactory after such a delay.

Orbit Housing said that it could not tell me what steps it was taking because of data regulations. I make it clear that I do not want to know what people have in their bank account or when they got married. We do not want that information; we want to know that the issues we are raising are being pursued, and we want to know the details of how they are being pursued.

[Grahame Morris (Easington) (Lab)]

I congratulate my hon. Friend on securing the debate. He is making an important point about how public bodies are using the General Data Protection Regulation to obstruct Members of Parliament seeking to represent their constituents. On a housing-related issue involving someone with disabilities, I had to table some written parliamentary questions, and I asked the Ministry of Justice to establish an MP hotline for the tribunals service due to the difficulties I have been experiencing in getting satisfactory answers. I have had to get in the habit of copying tribunal inquiries directly to the Minister in order to obtain a response. Does my hon. Friend believe that the Government should issue guidance to public bodies, explaining what implicit consent means and stopping them obstructing Members of Parliament in carrying out their duties on behalf of constituents?

[Mr Cunningham]

I could not agree more with my hon. Friend. In fact, on occasions when we have been dealing with constituency correspondence with outside organisations, we have also asked the constituent to sign a form giving us permission. We should not have to go to those lengths. When we talk about trust in politicians, that is a good example of where we are not being trusted. Our constituents trust us because we are the last line of defence. Where do they go after us, whatever the problem might be?

I have had the problem of organisations refusing to give me information on a constituent’s case many times. It used to happen a lot after the passing of the Data Protection Act 1998, before being somewhat dealt with by the Data Protection (Processing of Sensitive Personal Data) (Elected Representatives) Order 2002. However, it seems that more and more organisations are using the new data regulations to avoid responding to casework. I am clear that I do not consider the case closed with Orbit Housing, and today is a good chance for us all to recognise that we need to be bloody difficult people on behalf of our constituents to get results.

As I have already said, the problem I had with Orbit Housing is not unique. I have asked other Members whether they have had similar problems in conducting their constituency casework. Members have made clear through their interventions today that they have, as have many Members who cannot be here today. The vast majority of Members who replied to me said that they had faced some form of obstruction. That ranged from delays to a complete refusal to share information with Members due to the data regulations—at least, that was the excuse. After receiving the response from Orbit Housing, I started looking at how data regulations apply to Members. I also wrote to the Information Commissioner and the Leader of the House to request clarification.

The EU’s General Data Protection Regulation and the UK’s Data Protection Act 2018 are our core data regulations. According to the legislation, we are data processers when we are handling a constituent’s casework. Data processors have to make sure they have a specific reason to process someone’s information. We are covered in our casework by two of the reasons outlined in the legislation: consent and public task. When a constituent writes asking for us to take action on an issue, it constitutes them giving us consent to discuss their personal data with a third party. Some organisations, however, do not always accept a letter from a constituent. That is the whole point.

However, consent is not necessarily always required, as we have a good second legitimate reason. Public task is when data processing is necessary to perform a task in the public interest or for official functions. The 2018 Act outlines that that covers elected representatives fulfilling their parliamentary functions. Conducting casework is one of our core functions and therefore falls under public task. We are therefore usually covered by two clear reasons when discussing a constituent’s information with a third party. That is the case regardless of whether we are discussing someone’s name or email, or a special category of protected data such as health or sexual orientation data.

Ultimately, the legislation is clear that we can discuss a constituent’s details with third parties. However, the issue I encountered comes from how the legislation applies to the third party in the casework. When we write to an organisation, we expect them to respond saying how they will fix the issue, but the data regulations add a layer of complication. As the organisation is itself a data controller, it needs to judge whether it can give a constituent’s information to us. Despite the fact that Members of Parliament are completely entitled to act on their constituent’s behalf, the organisation in question can still decide that it cannot give us the information we need. The constituent’s case is then forced shut, with no room to challenge the decision. That is exactly what happened to me with Orbit Housing, and it has happened to many other Members.

In this instance, data legislation is actually weakening our constituents’ rights and empowering the organisations that hold their data. Members cannot solve every issue, but we should be able to advance a case more than a constituent could alone. If third-party organisations can refuse to share information on a constituent’s case with us, our constituents suffer and we are left failing them due to legislation.

In summary, I would like to see several things from the Government as a result of this debate. First, they should assess the effectiveness of the current methods used to judge whether a building has been designed and built adequately. The Government started to look at that in the aftermath of the tragedy of Grenfell. I implore them to renew their efforts, considering their stated aim of radically increasing the number of homes being built each year. It is important that their rush to build does not lead to substandard homes being built, as Members have mentioned and as has happened too many times recently.

Secondly, the Government should conduct a review of the accountability of organisations, especially large house builders and housing associations, as my hon. Friend the Member for Dagenham and Rainham (Jon Cruddas) mentioned. The Government’s stated aim to soon increase the number of homes being built will mean hugely increased business for the larger housing companies in the UK. It is right that they are held to account if they build inferior housing or ignore customers. Just last month, the chief executive of Persimmon Homes ignored questions about his record bonus of £75 million—quite a salary. It is wrong that in an industry where so much money is made by those at the top there is little accountability when customers or residents are let down.

Lastly, I ask that the Government consult Members to evaluate whether we are stifled by data regulations in our ability to conduct casework effectively. It is my opinion that the regulations give organisations a loophole to ignore accountability. Some organisations might do it innocently, but there are definitely organisations out there using that loophole inappropriately. That represents a serious threat to our ability to progress casework and to hold organisations to account. The law must be tightened up to empower us and, in turn, to empower our constituents.

[The Minister for Housing (Kit Malthouse)]

It is a pleasure to appear once again before your wise and well-tempered supervision, Mr Hollobone. I congratulate the hon. Member for Coventry South (Mr Cunningham) on securing this important debate on a number of housing issues, which I will seek to address.

First, I thank the hon. Gentleman and other Members for assisting their constituents with numerous housing issues. I know from my own experience that housing can form a large part of an MP’s postbag, and I am grateful for the liaison with landlords and the resolution that is brought about by the actions of Members when something has gone wrong and when a service has not been as expected.

Let me start with complaints. A good complaints process must start with landlords. The regulator of social housing expects all registered providers of social housing to have in place a complaints process that is clear, simple and accessible. Landlords are also expected to publish their performance against those standards through an annual report. The regulator does not proactively enforce standards on complaint handling. The onus is on individual landlords, working with residents, to set their approach and timescales for handling residents’ complaints. However, the regulator considers every referral made to it, signposting those not within its remit to other organisations, including the housing ombudsman service.

I stress that if any hon. Member acting on a constituent’s behalf is unhappy with the response provided by a registered provider of social housing, once the landlord’s complaints process has been exhausted, that hon. Member may take the matter further. Social housing residents can approach the housing ombudsman service at any time to seek advice. However, currently they must pass the democratic filter, either referring a complaint to a designated person—a local councillor, Member of Parliament or tenant panel—or waiting eight weeks after their landlord’s investigation has concluded before a complaint can be formally investigated by the housing ombudsman.

The Government’s social housing Green Paper consultation, “A new deal for social housing”, which closed on 6 November, sought views on how to improve the system for seeking redress for social housing residents. We engaged extensively with residents to inform and shape the Green Paper. We heard that residents want redress quickly when things go wrong, and want processes to be clearer and simpler. We want to ensure that residents receive the help that they need to put things right when they have a housing problem. The Green Paper asked a range of questions on how we could deliver that, including questions about the future of the democratic filter, which can delay the complaints process.

Alongside those questions, the Green Paper set out proposals better to hold landlords to account. We consider that stronger action is required against landlords who consistently fail their residents. Part of the solution is to enable residents to understand and compare the performance of landlords. We have proposed a limited number of key performance indicators to achieve that, including a potential indicator on the effective handling of complaints.

Following publication of the Green Paper, we continued our face-to-face engagement with landlords and residents across the country. We wanted to give them an opportunity to input into and influence the consultation outcome. I assure hon. Members that they had some strong views about the handling of complaints, both positive and negative, which I heard myself, having visited six such events across the country. We are currently analysing the findings of those events alongside the other consultation responses, and we aim to publish our response in the spring.

As Members will know, the General Data Protection Regulation, also known as GDPR, imposes new rules on controlling and processing personally identifiable information. In addition, the regulator of social housing is clear that registered providers of social housing should accept complaints made by advocates, including Members of Parliament authorised to act on behalf of a social housing resident. I am not aware of the specific circumstances that the hon. Member for Coventry South mentioned, but I reassure him and other Members that nothing in GDPR or in the Data Protection Act 2018 prevents us from acting on behalf of our constituents in discussions with a registered provider of social housing.

[Mr Jim Cunningham]

It would be helpful if the Minister circulated that advice on data protection to all concerned, so that the situation is perfectly clear. We often get conflicting views about it.

[Kit Malthouse]

That is a good suggestion. I have to stress that the hon. Gentleman, and other hon. Members who wish to act on their constituents’ behalf, must be instructed by the constituent before they can do so. That is no different from the arrangements that existed before the GDPR was introduced. In requesting assistance from their Member of Parliament, any resident is effectively giving consent for that MP to process their personal data. A housing association should normally accept a Member of Parliament’s word. However, I appreciate that a housing association or local authority landlord might, if the case is particularly sensitive or other individuals are involved, double-check with the tenant. I stress that that should not be used as a delaying or obstructive mechanism; it is merely an extra protection for the tenant in specific circumstances.

Of course, if the constituent or their MP considers that the processing of the concerned resident’s data goes beyond what the resident might have expected, they should be consulted first. Let me make it crystal clear to all landlords that they should co-operate and engage constructively with Members of Parliament when they act as advocates, within the constraints of data protection. I am pleased that the Information Commissioner has issued the following guidance:

“Consent can be implied from a relevant action, in this case the raising of the matter by a constituent with the Member in the expectation that his or her personal data will be further processed by the Member and relevant third party organisations.”

I can circulate the commissioner’s guidance after the debate.

Finally, I will talk about checks on the quality of building and design—an important issue, given the scale of house building that we are experiencing, and hopefully will in increased numbers in the years to come. As a Department, we are focusing on the quality of build and design as a critical issue for the future expansion of house building. I hope that the hon. Member for Coventry South accepts, though, that when it comes to a new building, the person carrying out the building work is responsible for complying with the requirements of the building regulations. That person remains legally liable for non-compliance.

All new buildings are subject to building control supervision, either by the local authority or an approved inspector. Both are required by law to take all reasonable steps to check on the compliance of building work. Where work is found not to comply, the building control body will require it to be put right before giving a compliance certificate. We are sending a clear message that if something goes wrong with a newly built home, house builders and warranty providers, including the National House Building Council, should fulfil their obligations to put things right.

In addition, on 1 October, the Government announced a new homes ombudsman to champion the rights of homebuyers and to hold developers to account. Once a building is occupied, social housing landlords are required to comply with the regulator’s home standard, which sets two clear outcomes. First, homes must be of good quality through meeting the decent homes standard. Secondly, landlords must provide a cost-effective service to homes and communal areas that responds to the needs of, and offers choice to tenants, and aims to complete repairs and improvements first time.

Once again, I thank the hon. Gentleman for securing this valuable debate. I hope that he and other Members will continue to support all residents, including those living in social housing, in dealing with housing complaints. We are committed to ensuring that social housing residents can seek timely and effective solutions when they have a housing problem. I also hope that in future all landlords ensure that issues such as those raised today do not hinder or delay their residents’ seeking effective and efficient redress.

Question put and agreed to.

Oral Answers to Questions

Jim Cunningham Excerpts

Monday 5th November 2018 Commons Chamber

[Mrs Wheeler]

Again, I reiterate how very important this question is to everybody on both sides of the Chamber. I had the great pleasure of talking last week to the chief executive of the council in Leeds about the strategy and about the money and the help we are giving to the city. It was a really useful conversation to find a chief executive who is so committed to the project.

[Mr Jim Cunningham (Coventry South) (Lab)]

Will the Minister say how much money to deal with homelessness she has given to the local authority in Coventry and the charities in Coventry, which tell me that their allocations have been cut? That is no way to deal with homelessness.

[Mrs Wheeler]

I am very sorry that the charities are telling the local Member that, because overall we are putting in place a £1.2 billion fund for homelessness. I would certainly be very happy to write to the hon. Gentleman. His area is part of the greater west midlands project, and the greater west midlands Mayor, Andy Street, has many millions of pounds to help with homelessness—going to Coventry as well as the other parts of the greater west midlands.

Beauty and the Built Environment

Jim Cunningham Excerpts

Tuesday 30th October 2018 Westminster Hall

[Mr Hayes]

That is a good and important point that relates to something I shall say later about taking a bottom-up approach to delivering better-quality housing, rather than imposing top-down targets. My hon. Friend is right that we need to inspire a new generation to believe that this can be done, because there are some who say that it does not matter or even that it cannot be done—that it is no longer possible to build wonderful, lovely things, and that we are no longer capable of imagining what generations before us created. I just do not believe that. I think we can and should do better, and my hon. Friend rightly describes one of the mechanisms that might achieve that.

To dismiss concerns about the quality of what we build is both wrong and, ultimately, destructive. We cannot hope to change the public perception of new development unless we fundamentally change its very nature. Beauty should be at the heart of the public discourse. It should be part of our conversation about housing and development. As the great philosopher Roger Scruton puts it,

“we are losing beauty, and there is a danger that with it we will lose the meaning of life.”

If I am right that the journey through life requires us to experience beauty to build the personal fulfilment and communal contentment necessary to make a society that works, ignoring beauty does not merely short-change future generations; ultimately, it will destroy our chance to make a nation of which we can all feel proud. There is a close relationship between the sense of place and the social solidarity necessary to build a harmonious society. I could say a lot about harmony, but that is a subject for another time or another debate and His Royal Highness the Prince of Wales has spoken about it far more eloquently than I ever could, so perhaps I should defer to him.

The first misconception that I would like to quash, which sometimes prevents the debate about quality from taking place at all, is that the kind of approach that I am trying to articulate, which concentrates on beauty, is both marginal and gets in the way of getting things done. According to that view, constantly demanding more of development—I am talking about commercial as well as domestic buildings, because this is not wholly about housing—somehow acts as a barrier, an impediment, to delivering the bigger objective of building to provide a basis for growth and prosperity. I just do not believe that. Actually, I think the opposite is true.

When Her Majesty the Queen came to the throne, her reign was marked by talk of a new Elizabethan age. After the destruction caused by the war, people looked to new development with optimism. They believed that we could create a society that both looked better and was better to be part of. How curious and how sad that during Her Majesty’s reign, attitudes to development have diametrically altered. Whereas people once anticipated development with joy, they now very often look on it with despair. Frankly, that is the result of successive Governments and local authorities of all political persuasions; I cast no slur on any single party in this House.

[Mr Jim Cunningham (Coventry South) (Lab)]

rose—

[Mr Hayes]

And certainly not on my dear friend the hon. Gentleman, to whom I am delighted to give way.

[Mr Cunningham]

As usual, the right hon. Gentleman takes a difficult topic and makes it understandable—to say the least—in a very jocular way. I am sure he will remember as I do when Governments used to announce at general elections that they would build about 300,000 houses a year. That has gone by the board now.

Planning is one issue when we talk about housing, and particularly social housing, in this day and age, but, more importantly, many years ago we used to have the Parker Morris standards for social housing. That is all gone now. Even in the private sector, we very often see houses that are nothing better than boxes. They look okay on the outside, but inside they are very small indeed. I do not think people are getting value for money. There is the design, but there is also the importance of bringing local people’s views into the discussion as well, and Members will probably have heard me talk of the King’s Hill area in Coventry, which is a beauty spot with lots of history where they now want to build houses. Before I sit down, I would just add that when we had a problem in Coventry with council houses, we let residents take part in the process of the design of alterations. That went very well. We have to get back to times like that—

[Ms Nadine Dorries (in the Chair)]

Mr Cunningham, that is a speech, not an intervention. I call Mr Hayes.

--- Later in debate ---

[Mr Hayes]

As a direct result of that intervention, let me make my first demand of the Minister. I have more demands to make at the end, so I will get this one out of the way now—I see the Minister glancing at his civil servants nervously.

It is critical that every local authority has a design guide that is not only particular to its locale, but that has site-specific design appraisals for those most important regenerative opportunities. It is not enough for a local authority to rely on some county-wide or area-wide design guide or very broad general motherhood-and-apple-pie design principles. There have to be specific requirements for developers, which allow places to continue to change in a way that is in keeping with what has been done before. That is about materials, scale and sometimes eclecticism; there are particular places that look a particular way. We do not want every high street and every housing development, every town and every city to be indistinguishable one from another, but that will happen only if we are very demanding of what we expect of developers.

As you know, Ms Dorries, I have been Minister or shadow Minister for virtually everything, and I was once shadow Housing Minister. I met many big developers, big names that we could reel off if we wanted to, and they all said to me, “John, if you are clear about the requirements, we will build our business plans to meet them. We understand that you want to build lovelier places, and we know that that is what people want anyway. We are quite happy to build things that people will like and want to buy, or places they will want to rent. Be very clear about your requirements and we will work to them.” It is not about taking on developers; it is about working with them, but being demanding of them.

[Mr Jim Cunningham]

One of the things I learned in local government when I was leader in Coventry was that if someone is clear about what they want to do, they do not get any major problems—that happens when they are vague and unclear. I was reading an article in one of today’s papers, which showed a link between crime among young people and the design of buildings, particularly social housing, and certainly in areas in London, for example. Has the right hon. Gentleman read that report? It is worth looking at.

[Mr Hayes]

The hon. Gentleman knows of my extremely strong views on social justice and the redistribution of advantage in society. If we are going to redistribute advantage, as I think we should, it is not good enough to suggest that people who are less well-off, people who need to rent a home or young people who are looking to make their first home could make do with something inadequate, while those who are advantaged and privileged can buy the kind of lifestyle that was available to my working-class parents. The lifestyle I enjoy in my constituency in Lincolnshire is a bit like the lifestyle I enjoyed when I was a little boy on that council estate. We still use local shops, we have a garden to play in, we have a nice home and we have what might be called a traditional way of life because I am in a position to be able to provide that for my children—going to the village school and all the rest of it—but if I went back to places such as the place where I was brought up, by and large that life would not be available to most people who are rather like my mum and dad were that short time ago. I emphasise that it was a short time ago, Ms Dorries, but you knew that anyway. I want beauty for all, not for some or for the privileged or rich alone.

Local Government Funding: Merseyside

Jim Cunningham Excerpts

Tuesday 30th October 2018 Westminster Hall

[Maria Eagle]

I agree with my hon. Friend. It is impossible to see how anybody looking at these facts could assert that austerity is either over or is even coming to an end. We obviously do not know what the Government think between those two poles, but it is one or the other, depending on where they are. From where we are, it does not seem that either assertion comes near to explaining the truth.

In Liverpool, £70 million less is being spent on adult social care alone due to the cuts caused by austerity—this political choice that Governments since 2010 have made. Thresholds for eligibility for that help have therefore clearly had to increase, so fewer people get it despite more people needing it. The lack of that support, which should be there and would have been in the past, creates extra burdens on individuals and their families. That is the direct consequence of these cuts in Government funding.

[Mr Jim Cunningham (Coventry South) (Lab)]

This is a timely debate. Coventry has experienced exactly the same sort of local government cuts as Liverpool, and through the loss of grants—that is what caused all this—well over 50% of its budget is really not there anymore. One big problem in Coventry—I am sure my hon. Friend will touch on it—is the funding of children taken into care. She just touched on social care. Lots of families now have to find money for social care that they can ill afford, driving them into the hands of money lenders.

[Maria Eagle]

My hon. Friend will know the figures for Coventry very well. He set some out, and they sound similar to some of the figures we have seen on Merseyside. Any application for Coventry to join Merseyside will of course be considered by the appropriate authorities, if my hon. Friend wants to take that back to Coventry.

Nationally, £7 billion has been cut from social care budgets, so the £650 million announced by the Chancellor yesterday—to much fanfare—will make little impact on the size of the problem created by the Governments he has been a member of since 2010. I saw today that that figure will cover not only adult social care but children’s, and it also apparently includes money for NHS winter pressures next year, so perhaps that figure is not quite all it was cracked up to be in the Budget statement. However, even if it were, it would not be enough to deal with many of the problems created by the cuts to Liverpool’s social care that have had to be made in the last eight years and are still ongoing.

What about reserves? Tory Ministers frequently answer questions about the scale of the cuts faced by suggesting that authorities should spend their reserves; we often hear that cry. Liverpool has spent £146 million of its reserves to support social care spending, even at the reduced levels it now provides. Its reserves are down to £17 million, so I hope that the Minister was not planning to tell me that Liverpool City Council should spend its reserves. It is clear that that is not a long-term solution. In fact, it is not a solution that will work for much longer at all. Indeed, the NAO says that one in 10 authorities nationally will have nothing left in three years’ time if they continue to use their reserves to pay for social care, as Liverpool has done. Even if those remaining reserves were spent only on social care and nothing else, local authority reserves would be completely used up by 2022.

What about new money? The Mayor of the city of Liverpool, Joe Anderson, has adopted—quite entrepreneurially, I think—an invest to earn strategy, for which he has been criticised but which has yielded so far an extra £13 million a year in new revenue. His original idea was to use that money to support growth in the local economy. However, because of the extent of the cuts in Government funding and the damage they have done—the dire impact that they have had on some of the poorest and most vulnerable members of society in Liverpool—he has had to use the money to support services that would otherwise have been cut even further. For example, all our Sure Start centres have been kept open, even though some of the services they provide have gone. However, the tide of extra need being caused by ongoing cuts in Government support and social security benefits is likely to overwhelm the extra funding that the Mayor has brought in via invest to earn, and to do so soon. In that regard, the roll-out of universal credit will mean 55,000 people in the city being transferred on to it.

Tenant Fees Bill

Jim Cunningham Excerpts

3rd reading: House of Commons & Report stage: House of Commons
Wednesday 5th September 2018 Commons Chamber

[Rishi Sunak]

I again thank my hon. Friend for all his work on the Select Committee in helping us to improve this legislation. I know that he has given great thought to the matters we are discussing today, and we have just heard another example. I can tell him that the word “reasonable” has been chosen very deliberately, because it is a commonly accepted legal term that is widely used in various pieces of legislation and is open to interpretation in a consistent way by the courts. Indeed, the Opposition have chosen the same term in amendment 3.

[Mr Jim Cunningham (Coventry South) (Lab)]

To come back to the question asked by the hon. Member for Harrow East (Bob Blackman), some weeks ago I watched a documentary about this. It looked at the safety of a particular house, and it ended up with the enforcement officers directing the landlord to replace the sort of very expensive locks that he mentioned. I do not know whether that is common, but the Minister may know more than me.

[Rishi Sunak]

That ties in nicely with the point made by my hon. Friend the Member for Harrow East (Bob Blackman), but it would not be right for me to stand at the Dispatch Box and define what is reasonable in any particular case. There is a general test of reasonableness, which will vary from circumstance to circumstance. A simple key for a garden gate with no security attached to it will rightly cost very little—people can go down to Timpson or wherever to replace it—but a security identity fob for an alarm system may be much more expensive. The point is that the charges could not exceed the reasonable commercial or market value of such goods or services.

On that point, I reassure my hon. Friend that we want to go further than amendment 3, which was tabled by the hon. Member for Great Grimsby, would have us do. We have listened to concerns about the fact that tenants may find it difficult to challenge the reasonableness of default fees, and we believe that it would be easier for them to do so if they were offered up-front evidence of default charges. That is why amendment 28 introduces a requirement for landlords and agents to demonstrate their loss proactively by providing written evidence—for example, in the form of receipts or invoices—of the costs incurred before charging tenants. That will put the onus on landlords and agents to be clear about the charges that they want to levy, and it will give tenants additional assurance that they are paying a fair and reasonable amount.

To return to the intervention by my hon. Friend the Member for Carlisle (John Stevenson), the Government maintain that it would not be appropriate to list default charges in the Bill, given the risk that such a list will be incomplete or insufficient. We believe it is for the tenant and the landlord to determine what it is necessary and fair to include as default charges, on a case-by-case basis. There are other potential default charges besides those for late payment of rent and lost keys. Charges might also result from not parking in the space allotted to a property in a communal area, from the loss of a home automation smart remote and from the misuse of a common space—perhaps for a barbecue or other party event. Our amendments will increase transparency and fairness by ensuring that landlords and agents can recover their costs, while providing greater protection to tenants over the level of fees that they can be charged and further minimising the risk of abuse.

I turn to our other amendments regarding permitted payments. We want to ensure that the Bill delivers on the policy intention that the party who contracts a service should pay for the service. We have already been clear that where tenants procure their own third-party services—for example, a reference check or an inventory—they should be responsible for the cost. The legislation allows for that, although agents and landlords cannot, of course, require a tenant to use and pay for a third-party service.

Similarly, tenants should be able to make payments to agents whose services they contract for the purpose of finding accommodation, provided that the agent does not work on behalf of the landlord. That may be the case if a tenant lives overseas or otherwise requires assistance in relocating. We do not wish to prevent relocation agents from charging a fee for their services. Amendment 7 is designed to ensure that tenants are free to contract the services of a relocation or similar agent should they wish to do so, provided that the agent does not also act on behalf of the landlord with whom the tenancy is being agreed.

There are some further minor amendments to clause 28. Amendments 20 to 23 ensure that if a payment, such as a default charge, is required under a tenancy agreement that was entered into before the ban comes into force, that payment will be prohibited where it is paid to an agent after a period of 12 months. The Bill already prohibits that in relation to landlords, and we want to ensure that there is consistency with respect to agreements with agents.

Further to that, amendments 24, 25 and 29 to 42 make some minor drafting changes to clarify that a person acting on behalf of the tenant, or someone who has guaranteed the payment of rent—a relevant person—can also make a permitted payment. That will ensure that if somebody guarantees a tenant’s rent, they can make payments on the tenant’s behalf to a landlord or agent if required.

We have also tabled several amendments to clarify the enforcement and repayment provisions in the Bill. The amendments will ensure that the legislation can be effectively and fairly enforced, and that tenants have proper access to redress when things go wrong. First, amendments 13, 14 and 44 to 48 ensure that if a landlord or agent charges the tenant an unlawful payment, the landlord or agent must repay it as soon as is practically possible. Currently, when a tenant seeks repayment through the local authority or first-tier tribunal, a landlord or agent has 14 days or 28 days, respectively, to return the unlawfully charged payment once an enforcement order has been made.

We are talking about tenants’ money, and we want to ensure that tenants can recover it in good time. It is not fair for a tenant to be out of pocket because a landlord or an agent has charged a fee or unlawfully required a tenant to pay a third party. Our amendments will require a landlord or an agent to repay unlawful fees within seven to 14 days of the making of an order by the enforcement authority or the first-tier tribunal. The authority or tribunal will have discretion over when the payment is required, within that narrow period. We expect that most repayments will be made within seven days, but we have provided for a range because in certain circumstances it may not be possible for a landlord or agent to repay the money within seven days. I hope that this amendment addresses the concerns that we have heard about the speed of repayment when a landlord or agent is at fault, and we hope that it reassures tenants about the recovery of their money.

--- Later in debate ---

[Mr Jim Cunningham]

The last time we debated the Bill, I raised the issue of who would enforce it. The Minister has mentioned the enforcement authorities. Is it still his intention that trading standards officers should be enforcement officers, or has that changed?

[Rishi Sunak]

That has not changed. In Committee and during the evidence sessions, there was overwhelming support for the idea of trading standards authorities playing a key role in enforcement, given their complementary responsibilities in similar legislation. We have heard good evidence for that, and they will be supported up front by half a million pounds from the Government in the first year of the implementation of the legislation.

We want to ensure that the enforcement authorities are required to notify the lead enforcement authority in the circumstances that I have set out. At present, they are required to notify the lead enforcement authorities only when they impose a financial penalty. Extending the notification requirement to criminal offences will help the lead enforcement authority more effectively to monitor and report on the effectiveness and operation of the ban. This will also help to support local authorities better with their own enforcement actions.

Fourthly, on enforcement, when a tenant takes action to recover their fees, they should have confidence that their local authority can assist them through the process. The Bill already provides that local authorities can assist an individual in recovering a prohibited payment via the first-tier tribunal.

Oral Answers to Questions

Jim Cunningham Excerpts

Monday 18th June 2018 Commons Chamber

[Nigel Adams]

My hon. Friend is well known for his work in ensuring that brownfield land is prioritised for development. The Government are currently working up the details of a new £1.1 billion land assembly fund to enable Homes England to work alongside private developers to develop strategic sites, including new settlements and urban regeneration schemes. Homes England is also encouraged to use its powers of compulsory purchase, where necessary, to deliver community regeneration.

[Mr Jim Cunningham (Coventry South) (Lab)]

18. Where local authorities have a shortage of brownfield sites, will they be exempt from the requirement under the new national plan proposals, and will the Secretary of State reserve the power to call in such a decision?

[Nigel Adams]

The Government do not have the ability to force local authorities to build on brownfield sites. I am sure we can write to the hon. Gentleman to get specific details of the needs of his local authority area.

Non-Domestic Rating (Nursery Grounds) Bill

Jim Cunningham Excerpts

2nd reading: House of Commons
Tuesday 5th June 2018 Commons Chamber

[The Parliamentary Under-Secretary of State for Housing, Communities and Local Government (Rishi Sunak)]

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

Agriculture is at the heart of our country’s rural life, and, moreover, at the core of our rural economy. It employs over half a million people and supplies almost half of everything we eat and drink in this country. In England alone, the rural economy is worth over £250 billion. We want our country to offer unparalleled business opportunities for an agricultural community that produces some of the finest food and drink in the world. At every stage of the food chain, the UK is creating exceptional food and drink enjoyed around the world, with lucrative opportunities for British exporters, international buyers, and investors. In just 10 years, global demand has grown by nearly a third, with total food and drink exports now exceeding £20 billion.

I am proud to represent a deeply rural and agricultural constituency, home to businesses like Wensleydale Creamery, HECK sausages, Stamfrey Farm yoghurt, and Thornborough Cider—all fantastic rural businesses producing food and drink that competes with the best around the world.

This Government are absolutely committed to supporting sustainable growth in the rural economy. Through the 2014-2020 rural development programme, we are investing almost half a billion pounds in England’s rural businesses. Our support for rural enterprises includes developing farm and horticultural companies. In February, the Government launched a wide-ranging consultation on the future of farming—one that supports farmers once the United Kingdom is outside the European Union. The Government are now analysing views and responses from all stakeholders who contributed. Our ambition is for a more dynamic and self-reliant agricultural industry. Supporting our rural economy and protecting farmers is an essential part of our exit from the European Union. Leaving the EU provides the Government with a unique opportunity to establish new frameworks that support our farmers to grow more, sell more and export more great British food and drink. As we develop this new approach to food, farming and fisheries outside the EU, we will not compromise on our high standards of animal welfare and environmental protection.

The Government are set to continue to commit the same cash total—£3 billion—in funds for farm support until the end of this Parliament. Then the Government will devise a new agri-environment system to be introduced in the following Parliament.

[Mr Jim Cunningham (Coventry South) (Lab)]

One of the big problems with regard to protecting farmers, as I am sure the Minister knows, is getting labour in from the EU and other parts of the world. That is where the big problem might lie after we have come out of the EU.

[Rishi Sunak]

It is not quite my place to comment on future immigration policy, but the hon. Gentleman will know that the new Home Secretary is devising a new immigration system for the UK after Brexit. Of course, ensuring that all businesses, not just in agriculture, have access to the talent and the labour they need will be at the forefront of that new system.

The Government have also said that they will use the structural fund money that comes back to the UK following the EU exit to create a UK shared prosperity fund. The needs and interests of rural businesses have to be addressed as part of any future plans.

We firmly believe that the business rates system plays an important role in supporting agricultural productivity. The agricultural exemption from business rates is a key part of this support. It is a broad-ranging and generous tax measure that ensures that no business rates are paid on agricultural land and properties.

Tenant Fees Bill

Jim Cunningham Excerpts

2nd reading: House of Commons
Monday 21st May 2018 Commons Chamber

[James Brokenshire]

My hon. Friend makes an important point. Let me be clear: the Bill is not an attack on good agents and landlords. We value the important services that they provide, but it will ensure a fair playing field for reputable agents by making it harder for rogues to operate. Letting agents and landlords who represent good value for money will continue to thrive, while those who rely on charging unfair and unjustifiable fees will have to reconsider their business models. We have also committed to regulation to prevent reputable agents from being undercut or undermined by rogues.

My hon. Friend makes her point very sincerely. The interesting point about some of the experience in Scotland is that the number of letting agents in Scotland, according to Companies House, has increased since 2012, when the ban on tenant fees was clarified there. That demonstrates that innovative and good agents can continue to thrive.

[Mr Jim Cunningham (Coventry South) (Lab)]

I welcome some of the measures that the Secretary of State is taking. Nobody wants to attack good landlords. We still have bad landlords and that is who the Bill is directed at. There is a problem with commitments that landlords make, then break. I have had cases where they have refused to carry out repairs or said, “Take me to court” and that sort of thing. The Secretary of State and I know that ordinary individuals, mainly young people in rented accommodation, cannot always afford to do that. How does the Bill deal with those sorts of issues?

[James Brokenshire]

The Bill seeks to address the application of unfair fees by, in essence, banning all of them unless they are then reapplied back by the terms of the Bill itself. This is an important step to provide reassurance and to deal with the rogue practices that the hon. Gentleman highlights. In that context it is important to stress some of the other steps that have already been taken in relation to rogue landlords and the abuses in the sector that need to be tackled. This is a further measure to address them.

Turning to the key provisions of the Bill, which apply to assured shorthold tenancies, tenancies of student accommodation, and licences to occupy, these will ban landlords and their agents from requiring tenants and licensees of privately rented housing in England, and persons acting on their behalf or guaranteeing their rent, to make any payments in connection with a tenancy, with some key exceptions: the rent; a refundable tenancy deposit capped at six weeks’ rent; a refundable holding deposit to reserve a property, capped at one week’s rent; a capped payment for changing a tenancy agreement when requested by the tenant; payments associated with early termination of the tenancy, when requested by the tenant; payments in respect of utilities and council tax; and payments in the event of a default by the tenant, such as replacing a lost key or late rent payment fine, capped at the level of the landlord’s loss.

In the Bill, the term “in connection” with a tenancy refers to any payments required by the landlord or agent throughout a tenancy. This is an important point, as we want to ensure that landlords and agents do not just transfer their fees to another stage of the tenancy, such as exit. The proposed legislation will also prevent tenants from being required to contract the services of a third party.

--- Later in debate ---

[Melanie Onn]

Labour absolutely recognises the—[Interruption.] Before the Under-Secretary of State for Housing, Communities and Local Government, the hon. Member for Rossendale and Darwen (Jake Berry) leaps on me—before I am able to make myself clear—Labour absolutely recognises the issue of the amount that people are paying in rent and recognises that there could be restrictions on the percentage of increases in rent, not a rent cap.

The pressure in the housing market is rapidly producing new forms of exploitation. For example, an alternative letting agency-cum-landlord service called Lifestyle Club London markets itself as a membership club. Tenants or members pay an annual fee instead of rent. Club staff are entitled to inspect rooms unannounced at any time and fines can be given for anything even as minor as dirty dishes. This is a fast-moving area. We can see that there are wildly differing practices in the world of private rental and that tenants have had difficulty in getting the treatment that they deserve, which is why groups such as Generation Rent and Marks Out of Tenancy have emerged to give a collective voice to private renters on matters of not only policy but practice.

Although the Bill is satisfactory in many respects, it still provides the opportunity for the continuation of an exploitative approach. For example, clauses 1 and 2 detail the prohibitions on landlords and agents applying fees in many circumstances. The cap of £50 for any of those charges is very welcome, but the explanatory notes go on to say

“or reasonable costs incurred if higher”.

That is a clear opportunity for a coach and horses to be driven through this otherwise very good Bill. We know that some letting agencies and landlords will push these grey areas, and without directly spelling out what charges are permissible and what “reasonable costs” are, there is undeniably room for incorrect interpretation.

The Government have so far given an indication that they will provide guidance on these and other issues, but how can that be enforced? If I speak to Shelter about how a renter can take a case against a banned fee being levied against them, the question then becomes a test of reasonableness. Whether or not such charges are reasonable, I know that it will say that if the Government want to genuinely give tenants additional powers, regulation is required to ensure that they are enforceable and meaningful.

The same goes for default fees, which are to be capped at the level of the landlord’s loss. At first glance, this seems eminently reasonable. A landlord should not be required to pay for a banking or other fine due to a tenant making a payment late or the replacement of a lost key or entry fob. However, the Minister must be aware of the scope for this to become a nice little earner for agents or landlords who would seek to unfairly penalise their tenants for minor errors.

[Mr Jim Cunningham]

I agree with my hon. Friend that there should be some form of adjudication or regulator, whichever way we want to put that argument. The weakness in the Bill, which is a good Bill by the way, is on enforcement, because as most people know, trading standards departments up and down the country in local authorities are totally underfunded.

[Melanie Onn]

My hon. Friend makes a very important point and I will come on to trading standards shortly.

There is no definition of what a landlord can include as a loss. If this includes the use of agents and agents opt to charge for their time—to replace a key or make some phone calls—charges may amount to far more than Government ever intended them to. This is one of the issues that we have seen with the scandal around excessive charges to private leaseholders: without a specified cap, there is scope for the unscrupulous to run riot.