Leasehold and Commonhold Reform

Jim Fitzpatrick Excerpts
Wednesday 2nd October 2019

(4 years, 6 months ago)

Westminster Hall
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Peter Bottomley Portrait Sir Peter Bottomley (Worthing West) (Con)
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I beg to move,

That this House has considered progress on leasehold and commonhold reform.

This debate is an opportunity for the Government to explain what progress has been made on this issue, describe what is in their mind at the moment, and give us some hope that there will be even more improvements in future.

Before I start in detail, I want to thank colleagues who have worked really hard on the issue. I welcome the fact that the Labour party has developed proposals of its own, and I know that the Liberal Democrats have done the same. In particular, I thank and praise the hon. Member for Poplar and Limehouse (Jim Fitzpatrick), who I think has done more on this issue than any other Member of Parliament. I also thank the hon. Member for Ellesmere Port and Neston (Justin Madders), who has joined in and helped to make the scandal of leasehold homes in the north-west so relevant.

I also pay tribute to the right hon. Member for Kingston and Surbiton (Sir Edward Davey), who was deeply involved in the early stages of the campaign by the Leasehold Knowledge Partnership. That charity’s campaign, both for the ordinary leaseholders of flats and houses and in the retirement field, has done so much to make it possible for the work of MPs to be well directed and well supported. With Louise O’Riordan, it acts as the secretariat for the all-party parliamentary group on leasehold and commonhold reform, and I think we can all say that we have made progress together.

I say to those in the Government field and in the Government’s Leasehold Advisory Service, or LEASE, that we often agree that problems exist. We agree more often now than we did five years ago, when a succession of temporary Housing Ministers could not see that there is a problem, which partly was because the Department did not have many officials working on the issue of leaseholds and commonholds. The attempt by Parliament and the Government to bring in commonhold failed because the responsibility for it was split with the Ministry of Justice, which had no resources whatsoever. As a result, nothing happened. When we put forward the case for uniting commonhold with leasehold, I understand that the predecessor Department to the Ministry of Housing, Communities and Local Government said that it would take responsibility if it received the resources, but there were no resources.

Jim Fitzpatrick Portrait Jim Fitzpatrick (Poplar and Limehouse) (Lab)
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I and other Labour Members are grateful to the hon. Gentleman for his generous comments, and I congratulate him on securing the debate. He does not have any support from other Government Members at the moment, whereas Labour Members are mob-handed in Westminster Hall today. However, I can assure him that we are here as his fan club and support structure, because it is the prominent role that he has played—leading the all-party parliamentary group, as co-chair—that has ensured that we have been able to press the Government on the issue. To the Government’s credit, they have made a number of commitments on leasehold during the past five years, and we are very keen to hear the Minister’s response to this debate.

Peter Bottomley Portrait Sir Peter Bottomley
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That is the sort of remark I can survive, and I am grateful for it.

I will say, as I try to in each of the debates on the issue, that I am a leaseholder of a small flat in my constituency, and with the other five leaseholders we bought the freehold. We had a good freeholder, good managing agents and we have had no problem whatsoever, and we know how the system can work. In effect, we are commonhold now, but we were originally freehold. Ground rents were low and we did not have the problem of ground rents doubling every 10 years.

We also did not have the kind of crooks, such as Martin Paine, who came in and gave informal leases, which really made a mess of people’s lives. We did not suffer from the Tchenguiz interests, which were responsible—both in the retirement field and in other fields—for some of the worst excesses. Frankly, the public authorities, such as the fraud people, the economic crimes people, the police and the Competition and Markets Authority people failed, and the Tchenguiz-controlled business got away scot free, when the people in that business should have been sent to jail and fined millions of pounds. The millions of pounds would have made up for the losses of the ordinary leaseholders who were failed by them.

I also pay tribute to Martin Boyd and Sebastian O’Kelly, chief executive and trustee of the Leasehold Knowledge Partnership, who have done so much, and they have now joined members of the National Leasehold Campaign and Bob Bessell, the former director of social services in Warwickshire, who in his retirement built 1,600 retirement homes without a single ground rent.

I thank my right hon. Friend the Minister for coming down on a fast train from Manchester, where she has given distinguished service over the past two days. I ask her to review whether it is sensible, necessary or right to allow ground rents in retirement properties. I look on the Churchill Group as the son of McCarthy and Stone, which was, with Peveril, at the foundation of some of the problems that hit previous generations. To any Treasury civil servant who reads the report of this debate, I would say that if we get leasehold and commonhold right, the value of homes will go up, not down, and the income to the Treasury will go up.

Building Safety

Jim Fitzpatrick Excerpts
Thursday 5th September 2019

(4 years, 7 months ago)

Commons Chamber
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Robert Jenrick Portrait Robert Jenrick
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My hon. Friend and I share a passion for doing that. We announced in the spring statement a new future homes standard that will ensure that no new home will be built in this country after 2025 without low or zero-carbon heating and the highest levels of energy efficiency. That is good for the environment and good for people on lower incomes.

Jim Fitzpatrick Portrait Jim Fitzpatrick (Poplar and Limehouse) (Lab)
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Can the Secretary of State say a bit more about his protection board? What kind of people will be on it, how many of them will there be, will they have staff or will they be carrying out inspections themselves, and will they monitor how local authorities spend this £10 million?

Robert Jenrick Portrait Robert Jenrick
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I am happy to write to the hon. Gentleman with more details of the board, but it will be a partnership between fire and rescue services and other appropriate experts. They in turn will commission probably regional teams of experts to ensure the consistent and competent inspections of buildings across the country.

Leasehold Reform

Jim Fitzpatrick Excerpts
Thursday 11th July 2019

(4 years, 9 months ago)

Commons Chamber
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Jim Fitzpatrick Portrait Jim Fitzpatrick (Poplar and Limehouse) (Lab)
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I am grateful for the opportunity to speak briefly in yet another leasehold debate and I am pleased to follow my hon. Friend the Member for Leigh (Jo Platt) in this very well-informed discussion. I thank the Housing, Communities and Local Government Committee for its excellent report. I thank the Leasehold Knowledge Partnership, Martin Boyd and Sebastian O’Kelly for their analysis of the Government’s response, their ongoing expertise and their unstinting support for the all-party group on leasehold and commonhold reform. It is due to their efforts, and those of the National Leasehold Campaign and others, that this issue has risen up the political agenda steadily in recent years.

The plight of leaseholders is not new. Governments of both colours have tried in recent decades to improve the position of leaseholders and to offer them more regulatory protection. That vulnerability has increased because of the explosion of tenure as the demand for new housing has grown and the profits to be made have been understood. Some of those profits have been entirely unearned and border on profiteering and ongoing criminal exploitation.

Poplar and Limehouse has the second-highest proportion of leasehold properties of any constituency. The tragedy at Grenfell only highlighted some of the problems that leaseholders have faced from some freeholders, developers and property management companies. That is only one example of the lack of protection that the law affords leaseholders, which led this Government to set aside £400 million for the public sector and £200 million for private sector blocks for fire safety work and repairs.

As my hon. Friend the Member for Leigh has just mentioned, there has been a lot of noise from the Government on other aspects: the 2017 housing White Paper; the 2017 consultation on ground rents; the 2018 consultation on leasehold sector reform; the report on the regulation of management agents and permission fees; the Government’s engagement with the Law Commission on commonhold; their commitment to consult on enfranchisement to help leaseholders buy freehold; and the Competition and Markets Authority’s announcement of an inquiry, having been written to by the Secretary of State.

The Chair of the Select Committee did an excellent job of introducing the debate. I want to make only a few points. First, the Government have repeatedly used the defence

“as soon as Parliamentary time allows.”

That appears in paragraphs 11, 36, 89 and 96 of their response to the Committee’s report, to mention just a few, and it has been used regularly at the Dispatch Box in recent years. If not now, in this Parliament, then when?

Secondly, I would be grateful if the Minister could reassure us that Lord Best’s inquiry into the regulation of property agents, permission fees and so on is still on track for the end of this month. Thirdly, the Government have announced for a third time that leasehold house sales, with exceptions, will be banned. Can the Minister confirm that Help to Buy has shut this down in the meantime? Fourthly, lease forfeiture is a source of major abuse, as we have heard, and many well documented cases have been supplied, yet the Government still seem hesitant. Perhaps the Minister could explain why.

On a separate matter, the Minister will know that the APPG’s officers, the LKP and others have been critical of the Leasehold Advisory Service—LEASE—especially following a recent meeting. Can the Minister advise when the APPG’s officers might receive a response to our request for an apology to our secretariat?

The Labour party has published its policy platform on leasehold. Its five strong pledges are very welcome, and I commend our shadow housing team for their excellent work—I look forward to hearing my hon. Friend the Member for Croydon Central (Sarah Jones) respond to the debate.

In conclusion, the Government have an impressive list of promises—I have mentioned some, but there are also ground rents on new leases at zero, and a new housing ombudsman. I commend the hard work of the many civil servants in the Department who have worked on the programme. However, most of the Government’s programme, if not all of it, is subject to that great “Get out of jail free” card:

“as soon as Parliamentary time allows.”

Leaseholders have been waiting long enough. Surely it is now time to deliver.

--- Later in debate ---
Justin Madders Portrait Justin Madders (Ellesmere Port and Neston) (Lab)
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I am delighted to take part in today’s debate on an issue close to my heart, having first been contacted by constituents back in March 2016 and having campaigned with the APPG of which I am proud to be the vice-chair under the wise stewardship of the hon. Member for Worthing West (Sir Peter Bottomley) and my hon. Friend the Member for Poplar and Limehouse (Jim Fitzpatrick). With the Leasehold Knowledge Partnership and the National Leasehold Campaign we have shone a light on these issues over the last three years. It has been a long journey. We have had some successes, but the further we have travelled the more deceptions, scams and greed we have uncovered, and the more it has become crystal clear that this has been nothing short of a national scandal.

As my hon. Friend the Member for Leigh (Jo Platt) mentioned, first there is the serious impact on mental health. A survey carried out by the National Leasehold Campaign found that 90% of leaseholders thought about their leasehold problems every single day and about a fifth thought of self-harm. We must never forget the human cost of all this.

It saddens me to say that while the Select Committee inquiry brought a sense of vindication and indeed hope among all those who campaigned on this issue, the Government response feels tepid in comparison. An example of that is the response to the Committee’s conclusion that leaseholders were treated as a source of steady profit, because it is not good enough just to say that the Government have noted the conclusions of the Committee. One campaigner said to me, “How do they think that makes us feel?” Having waited four months for a response, I agree.

We have had voluntary codes, which are doing some good, but that is not enough, and an example that has come to light recently in a new Redrow development just down the road from where I live shows why we need to do more to enforce these changes. The first phase of the development was sold on a leasehold basis—goodness knows why—but following some pressure locally, Redrow agreed that subsequent phases would be freehold and all those who had purchased leasehold properties would be able to purchase the freehold at 26 times the ground rent after two years; that was still too high, but at least Redrow was prepared to sell it back rather than send it to an offshore investor.

Several constituents have now contacted me because after the offer was made they inquired of Redrow whether they would still need to pay the ground rent during that two-year period and were told they would not need to, but now Redrow is sending out bills and denying ever having said that. That is rubbing salt into the wounds, because it has also asked for a legal contribution to its costs, and is refusing to disclose any information about other covenants that might go with the land should it purchase. That, along with the fact that Taylor Wimpey has got rid of doubling ground rents but has still left itself in control of advantageous leases, shows me why we need legislation. We cannot have confidence that the developers, who, after all, are the authors of this racket, can put right the wrongs they have created.

I look forward to hearing the outcome of the Competition and Markets Authority investigation. There is plenty of evidence out there for it to conclude that this was a deliberately constructed income-stream effort. I have seen many documents talking about leases being optimised. It does seem to me that there was a deliberate strategy.

Jim Fitzpatrick Portrait Jim Fitzpatrick
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Does my hon. Friend agree that one of the difficulties now is that though the CMA intervention is very welcome, it is going to take time, and its consultations and engagement just put everything back? It kicks the can down the road in a Parliament where we are not doing an awful lot of legislating.

Justin Madders Portrait Justin Madders
- Hansard - - - Excerpts

My hon. Friend is absolutely right. I do not see that we need to wait for the Competition and Markets Authority investigation to conclude before we come up with tangible legislation to help leaseholders now. It is important that that investigation is carried out, however, because I think it will shine a light on wholesale practices. I have seen evidence such as the CBRE market review of 2013 saying that “leases had been optimised” in terms of rent review clauses, notice fees and other provisions to maximise freehold sale receipts for developers. It talked about soft income being generated from insurance premiums, commission, service charges and enfranchisement premiums. There is clearly an industrial-scale racket going on, and it is important for the future of the industry that we get to the bottom of it and find out who is responsible and make sure that they never get the chance to do it again.

Perhaps what is most concerning in this respect is that evidence has emerged of what are described as forward purchase agreements. These are contracts between an investor and a house builder to acquire a scheme before the individual units have been sold off on long leases. These agreements can often be in place as construction is ongoing, or even before commencement. It would be interesting to know which developers had forward purchase agreements in place before completion of their developments, because if they did they surely had a responsibility to inform the prospective leaseholder prior to their making their purchase that such an agreement was in place.

Instead, what we have heard from constituents is that they were told the exact opposite: they were told freeholds would be available to purchase after two years. Was this a deliberate deception? What did the sales staff know? Just how deep does this scandal run? For those reasons and more, we need a fully independent inquiry into the whole scandal so that those responsible are held to account for their actions and we get a house building sector that works for everyone, not just itself.

Draft Community Infrastructure Levy (Amendment) (England) (No. 2) Regulations 2019

Jim Fitzpatrick Excerpts
Thursday 27th June 2019

(4 years, 10 months ago)

General Committees
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Jim Fitzpatrick Portrait Jim Fitzpatrick (Poplar and Limehouse) (Lab)
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It is a pleasure to serve with you in the Chair, Mr Gapes. I have three brief questions for the Minister, and I apologise if they touch on questions raised by my hon. Friend the Member for City of Durham. First, the Minister mentioned that less than £1 billion was raised in infrastructure levy money, but an additional £500 million was raised in London for the infrastructure levy. He then said that £5 billion was raised in section 106 money, but I did not catch the London figures, so I assume that the London section 106 money is included in that £5 billion. Is there a separate figure for London?

Secondly, outline planning approvals can last for some considerable time. In east London, as the Minister knows only too well from his experience, developers bank the land while they watch property prices change. He said that he was removing restrictions on the ability to change the levy when plans were changed—what was originally submitted against what is finally submitted. Has an assessment been made of whether that will work out to the advantage of local authorities or of developers? Is it expected to be six of one and half a dozen of the other?

Finally, restrictions on the section 106 money and pooling are being eliminated. Do the new regulations on accountability and transparency mean that councils will be more likely to combine infrastructure levy money with section 106 money, provided that they are more transparent and accountable? If that is the case, following the point made by my hon. Friend about communities tracking the money paid to developers and making them accountable, communities will be confident that they are getting the benefit.

Housing Associations

Jim Fitzpatrick Excerpts
Wednesday 12th June 2019

(4 years, 10 months ago)

Westminster Hall
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Jim Fitzpatrick Portrait Jim Fitzpatrick (Poplar and Limehouse) (Lab)
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I beg to move,

That this House has considered the accountability and role of housing associations.

I am pleased to see you presiding, Mr Owen, and to see the Minister in his place. I am grateful for the opportunity to raise this important issue. I thank the National Housing Federation; Grenfell United; the Deputy Mayor of Tower Hamlets, Councillor Rachel Blake; the House of Commons Library; the Charity Commission; the Leasehold Knowledge Partnership; and Poplar Housing and Regeneration Community Association for their briefings ahead of the debate, as well as Jenny Symmons in my office for pulling them all together.

I do not believe that what I will say today is at all controversial, which might reassure the Minister. There are more than 1,400 providers of social housing in the UK, and roughly one sixth of our households live in a housing association or council property. There is clearly agreement that the status quo on oversight needs changing.

On Monday, the Minister and I attended an event at Speaker’s House to mark the second anniversary of the Grenfell fire. A speaker for the group, Ed Daffarn, made the point that the regulator had let them down. We all know that disastrous decisions were made in the refurbishment of Grenfell Tower that led to the tragedy, and Ed identified that a key issue was the lack of regulation.

In the wake of Grenfell, the Government’s Green Paper on social housing, released last year, promised to create “safe and decent” homes,

“empowering residents and ensuring their voices are heard so that landlords are held to account”

and

“improving and speeding up how complaints are resolved”.

Those commitments were very welcome; however, we are yet to see the fruits. One of the biggest areas that needs tackling in the sector is the lack of clear regulation and accountability for housing associations. Solving that problem would surely lead to the delivery of safer homes, empowered residents and an effective complaints procedure.

I often find it confusing what the exact roles of the social housing regulator and the ombudsman are. Where are the lines of responsibility? It is unclear what the demarcations are in the roles of the two bodies, which causes serious problems not only for residents who need to report concerns, but for me. Currently, the social housing regulator seems to oversee financial regulation and value for money, and in extreme cases consumer standards, but does not handle routine customer service oversight. That lands in the jurisdiction of the local government ombudsman.

However, residents can turn to the ombudsman only if their complaint is rejected by the housing association in the first instance. Even then, many residents do not know that they have that option. I have been informed that even if a resident does know that they can escalate their complaint to the local government ombudsman, it can take at least a year for their case to be dealt with due to the huge remit covered and the high volume of complaints.

There is also the issue that two ombudsmen cover housing. The local government ombudsman technically covers social housing, but the housing ombudsman supposedly covers all housing. That leads to confusion about which body to turn to, and sometimes residents turn to both, which is a waste of time and resources. Labour’s Green Paper, “Housing for the Many”, makes it clear that the way forward is to have a single housing ombudsman who takes responsibility for the regulation of all housing, and who completely covers customer service and complaints handling. That dedicated service could deal with complaints in a shorter timescale, and would cut out confusion and restore authority to residents.

Tim Farron Portrait Tim Farron (Westmorland and Lonsdale) (LD)
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Does the hon. Gentleman share my concern that, owing to their status, neither housing associations nor private landlords are required to respond to freedom of information requests? Given that, tenants might therefore have no access to fire safety reports or other such important information?

Jim Fitzpatrick Portrait Jim Fitzpatrick
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I am grateful to the hon. Gentleman for his intervention, and I will come to that point later.

For residents, be they social renters, key workers, people with shared equity or leaseholders, accountability and transparency are key. For public sector home owners or renters, responsibility for their home maintenance is generally clear, but in the private sector it is not. A recent example of such confusion is the Barking fire on Sunday. There appears to be a complete lack of information on who owns the freehold. Responsibility for the failings therefore cannot be allocated. How are residents supposed to feel confident in their homes when no particular company or individual will take responsibility for their safety and welfare? A clear system of regulation for housing association homes would go some way to making residents feel comfortable and protected.

Jon Cruddas Portrait Jon Cruddas (Dagenham and Rainham) (Lab)
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This is an important debate. We had similar issues in Tower Hamlets, across Barking and Dagenham and Havering, with Old Ford, which was Circle Housing, and a notorious case on the Orchard Village estate because of a lack of effective regulation across the sector. At the same time, a number of housing associations increasingly saw their role as being developers, rather than fulfilling their historical ethical role of delivering for working people. Does my hon. Friend agree that the lack of regulation plays into the changing role of housing associations across the sector?

Jim Fitzpatrick Portrait Jim Fitzpatrick
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My hon. Friend makes a very good point, and I will come on to the role of housing associations and the change in their ethos. That will reinforce the concern that he expresses.

I hear all the time from constituents who are having trouble getting complaints about their housing associations dealt with. Issues such as above-inflation rent increases, unjustified service charges, unreasonable refurbishment costs and problems with repairs seem to be rife. The lack of information about tendering arrangements has also been a source of frustration. Residents often find it unclear who they can go to with their complaints, and do not have confidence that they will be given a fair hearing.

Accountability questions are all too common. In my constituency, there are many housing associations, many of which are very good. Some are average and some are poor. One of the best, if not the best, is Poplar Housing and Regeneration Community Association, commonly and locally known as HARCA. HARCA is a much-valued organisation in Tower Hamlets, going beyond its brief in housing to create community hubs and therefore maintaining a strong social ethos. It is also exemplary in its accountability. Its board has always had a majority of members from the local community, and it has created a tenant advisory panel with the aim of strengthening relationships with tenants and landlords. It was also an early adopter of the National Housing Federation’s “Together with Tenants” plan, again prioritising building good relationships with tenants.

In a recent consultation regarding plans for the Teviot estate in my constituency, there was a turnout of 81% of residents, 87% of whom voted in support of the plan. That demonstrates the high level of approval for HARCA’s work. HARCA also runs a resident-to-resident survey, where residents are trained to call other residents to get their comments on issues such as recent repairs, providing unbiased feedback for Poplar HARCA and involving the residents in shaping their local services.

Those initiatives have proved successful for Poplar HARCA not only in operating an efficient not-for-profit business, but in achieving high levels of resident approval. Its most recent survey, conducted in May, found that 83% of tenants and 75% of leaseholders were satisfied with the service. Clearly, involving residents in decision making at every possible level and seeking feedback regularly works in favour of both residents and housing associations.

However, that level of provision for, and investment in, tenants sometimes seems to be the exception rather than the rule. Housing associations are no longer obliged to have residents on their board. I urge the Minister to consider bringing back that requirement, as another means of making associations directly accountable to residents, and ensuring that executive boards have a local perspective.

At the opposite end of the spectrum to Poplar HARCA is A2Dominion, notorious in the housing world for its, at best, neglect of or, at worst, disdain for residents. The Daily Mirror recently reported that residents in Clyde House in south London are scared to sleep in their homes due to unsafe conditions. Thick mould covering pipes, water leaking into flats, vermin across the building and an assessment declaring it a

“moderate to high fire risk”

all appear in a new development.

A2Dominion is supposed to have the exact same social purpose as Poplar HARCA. However, residents are being ignored in their justified complaints. The lack of clear accountability means that it can get away with not taking responsibility for the necessary repairs and upkeep, while still charging tenants extortionate service charges. Associations such as A2Dominion need clear regulation, and residents need to know who they can turn to when they are not being taken seriously.

As the Minister knows, I have spoken several times in this place about fire safety in high-rise flats—not as often as him, of course—and the dangerous, highly flammable cladding that is still in place in too many blocks. If we want to show that we have learned the lessons from Grenfell, we have to bring in stringent legal oversight, so that no further lives are lost due to its absence, in addition to shoddy, cost-cutting workmanship, poor maintenance, wrong materials and weak fire regulations.

Another point of consideration is bringing local government into a more formal role in oversight. Local authorities are well placed to understand the performance, or underperformance, of housing associations through the relationships between councillors and residents, and through public realm services.

Dan Poulter Portrait Dr Dan Poulter (Central Suffolk and North Ipswich) (Con)
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The hon. Gentleman is making a good speech with many good points. On his earlier point about accountability in the context of having a more effective national ombudsman, given that we all, I hope, accept that social housing is a social good and, in many respects, a public service, the out-and-out free market approach that has been taken to its provision has not been effective and there is evidence of market failure. Does he believe that greater local oversight and giving local authorities a role in holding housing associations to account for how they treat their tenants are also important parts of improving the regulatory framework?

Jim Fitzpatrick Portrait Jim Fitzpatrick
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The hon. Gentleman makes a good point, which I am also trying to make. The Government’s proposals for a national regulator and beefed-up regulations are sound and welcomed across the sector—the House reinforced that last week during the Grenfell debate—but there is a gap that local authorities could easily fill. There could be local oversight through local authorities engaging with the housing associations that operate in their local authority area, as well as national scrutiny through the national regulator, so there would be a local and national partnership to hold housing associations to account. Some housing associations are getting so big that they are becoming far too remote from their residents.

On that point, local authorities have no official role in formal regulation. If councils were given a role locally, alongside a national social housing regulator that focused on customer service, associations could be held to account and complaints dealt with more directly. I would be grateful if the Minister commented on that possibility.

Another concern is the practice of under-the-table mergers between housing associations. Although the Government do not officially play a role in that, they have created an environment that has led to more mergers and takeovers of housing associations. Those have to happen sometimes, but as housing associations get bigger, whether through mergers or national expansion, their ability to be financially transparent and locally accountable reduces. That is a serious problem for residents who pay service charges, as it becomes less clear to them where their money goes. Bigger and more remote associations can also avoid being answerable to residents on other questions about repairs not being done, or not done to a high enough standard, or about costs going up or questionable rent increases.

My worry is that the bigger housing associations become, the more they become like money-driven businesses, rather than locally focused organisations with a social purpose, as my hon. Friend the Member for Dagenham and Rainham (Jon Cruddas) said. I am grateful for the commitments in the Government’s Green Paper, which was published last year, and for the matters raised by the Secretary of State in last week’s written ministerial statement, but we need progress to be made through regulation and legislation.

On a separate matter, I agree with Grenfell United, and the recent Labour party paper, that it is high time that the Freedom of Information Act 2000 covered housing associations, rather than just council properties, as mentioned by the hon. Member for Westmorland and Lonsdale (Tim Farron). Residents and the public should have the right to information about safety standards and the like, to ensure that conditions and costs are monitored.

The Green Paper and the written ministerial statement offer better protection, more transparency and real accountability for residents in social housing, and I would be grateful for any assurance from the Minister that those commitments will be met as soon as possible after the close of the consultation that was announced last week. We want to ensure that our social housing lives up to its purpose of providing comfortable homes that are considerately managed, and that residents feel empowered in decisions made about their homes.

As I said at the start of my speech, I do not believe this issue is controversial or rocket science. There is support across parties and across the housing sector for what the Government are proposing—more transparency in respect of housing regulation, policing and enforcement—through a more powerful regulator. We need a strong commitment from the Government that they will move with speed and efficiency. As we approach the two-year memorial to Grenfell, some recommendations in Dame Judith Hackitt’s report have been enacted, but the Grenfell public inquiry will likely not conclude or produce a report until 2021 or 2022.

As I think the Government recognise, they need to take action where and when they can to reassure the public that their safety and wellbeing are paramount. A new regulator would be an easy way to demonstrate that determination, as would the other ideas I have suggested. I look forward to the Minister’s response, and I would be grateful if he considered this speech my contribution to the Department’s consultation on the matter.

--- Later in debate ---
Kit Malthouse Portrait Kit Malthouse
- Hansard - - - Excerpts

My hon. Friend is quite right. As I said earlier, the serious detriment test is one of the hurdles that need to be passed before there is intervention. We have asked in the Green Paper whether this is at the appropriate level. I would just point out that there is a difference between detriment and harm. In a situation where there is the threat of serious harm, local authorities have powers to step in and do the work that is required to deal with any immediate threat to safety or life. We have enhanced the housing health and safety rating system assessment tool, which local authorities can use when they look at a particular property in order to detect whether there is a particular harm that will allow them to intervene. That has been very pertinent to safety, particularly on the cladding issue that we have been dealing with over the past few weeks. We expanded the test to cover the envelope of a building, so that the local authority can make such an assessment.

Jim Fitzpatrick Portrait Jim Fitzpatrick
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Have local authorities actually availed themselves of that power in respect of defective cladding? It is quite difficult for local authorities to step in, is it not?

Kit Malthouse Portrait Kit Malthouse
- Hansard - - - Excerpts

It is, and the bar for that is very high, because there has to be an immediate threat to life. With cladding, one of the things that we have tried to ensure is that everybody is safe tonight. I have just commissioned and received reassurance through a review that that is still the case—everybody is still safe in buildings. If interim measures are in place in buildings that have not yet been remediated, one hopes the immediate threat is receding. Nevertheless, the power is there for local authorities to use. That is not just the case in a situation involving cladding; it is available to them in any situation.

I shall move, rather conveniently, on to safety. The hon. Gentleman and I have both spent time this week with Grenfell United, and we will spend more time with the group later in the week. Safety is uppermost in our mind. When things do go wrong, particularly on safety, it is of the utmost importance that such concerns are resolved as soon as is practicable. Registered providers must ensure that properties meet, and are maintained at, the decent homes standard. The regulator’s standards also require landlords to provide a repairs and maintenance service that responds to the needs of tenants and offers them choices. The objective is for landlords to ensure that repairs and improvements are right the first time. When they are not, tenants should complain and have the right to expect that something is done.

I should point out that if hon. Members believe they have constituents living in properties with serious hazards that present a risk to health and safety, they can report that to their local council, which can inspect and assess properties using the HHSRS. Should the local council become aware of a category 1 hazard, it can intervene.

Grenfell Tower Fire

Jim Fitzpatrick Excerpts
Thursday 6th June 2019

(4 years, 10 months ago)

Commons Chamber
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Clive Betts Portrait Mr Clive Betts (Sheffield South East) (Lab)
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I will speak in particular about the work of the Housing, Communities and Local Government Committee. First, I congratulate my hon. Friend the Member for Kensington (Emma Dent Coad). I say in a heartfelt way that I do not think her constituents—particularly those most directly affected by this disaster—could have a better champion. She has the respect of Members across the House for what she has done to represent her constituents forcefully, with emotion and with detailed knowledge of these matters. She certainly has my respect for what she has done.

In looking at a disaster and a tragedy such as Grenfell, we can occasionally look at what can come out of it that will help others—in this case, what will help other people to be safer in their homes as a result. As a Committee, we have not looked at the causes of the disaster and the reasons for it, because that is a job for the inquiry to do. It was not our job to go into that area and second-guess its findings, but we have tried to follow up particularly on the work of the Hackitt report. We have looked at what improvements can be made to regulations and rules on buildings and building safety to make other people safer in their homes and other buildings they are in in the future.

We produced a report last July after taking evidence. Prior to that, we had had a session with Dame Judith after both her interim report and her final report. We have had Ministers before us on a number of occasions. I see the Minister for Housing in his place. He came most recently in January, and he is coming again in a few weeks’ time. Dame Judith came in January, and she is coming again at a session before the Minister. We have tried to follow through not merely on what the promises were, but on how far they have been implemented and what more needs to be done. We have had a very detailed exchange of correspondence with Ministers. Indeed, I am still waiting for some answers on the most recent questions we have asked. As I say, we tried to concentrate in our inquiry on the issues of cladding, building safety and building regulations.

In the end, this is a story of a response by the Government with a recognition that dangerous or potentially dangerous material on high-rise and high-risk buildings needs to be removed. However, it is also a story of probably quite a slow response in some respects, and of a response that is still completely inadequate in others and one that has not been finalised. I hope it has not been finalised because I hope that the Government will go further. It is a story about ACM cladding—the cladding on Grenfell—and clearly a requirement for that to be removed, and it is a story of other materials that may be just as dangerous as ACM cladding. It is a story of materials generally that are not of limited combustibility and what should happen to them. It is a story not merely of high-rise residential buildings, but of other high-risk buildings such as hospitals and old people’s homes. Very importantly, it is a story not merely about new building, but about existing buildings, and I will make particular reference to that in a few moments.

It was immediately agreed that the ACM cladding—the cladding on Grenfell—on other high-rise residential buildings should be removed. However, the Government initially produced no funding to go with that. It took till 16 May 2018—roughly a year after the disaster—for the Government to come forward with £400 million, which was welcome. It has generally meant quite a lot of progress on taking the cladding off high-rise social housing, and that progress is welcome. It is not quite complete, but it is welcome progress.

Alongside that, there has been a real problem in relation to private sector buildings and the refusal of the freeholders to accept responsibility. The Government’s reasoned response was that leaseholders should not have to pay for the responsibility. However, for a year after the announcement of the funding for social housing, there was virtually no progress at all on private high-rise buildings, except where some developers decided that they would accept responsibility for the material they had put on. We have to recognise that, in some cases, developers were no longer responsible for the buildings—they may have been bought out by other companies, which were often freehold companies with limited assets— while there were leaseholders who could not pay. It really was a situation that was never going to be resolved. Ministers kept saying—I think this was the famous phrase—“We rule nothing out”, but for the most part nothing actually got done for a long period of time. That was even though the Committee, when it did its report last July, recommended that an immediate fund be established, initially at a very low rate of interest, at least to provide the wherewithal to get this work done, and we could argue about who would pay for it afterwards. We are still very much in that position.

Jim Fitzpatrick Portrait Jim Fitzpatrick (Poplar and Limehouse) (Lab)
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Does the Chairman of the Select Committee accept that there was not only a financial impact on the leaseholders exposed to this pressure, but an emotional one on their mental health from the anxiety of living in what they thought was not a safe home and of worrying about where they were going to find the money to pay for the remedial work and other fire costs?

Clive Betts Portrait Mr Betts
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I entirely accept my hon. Friend’s point. I suppose I am trying to take a practical and financial approach to this issue. I recognise that that is all right for me sitting in here as a Member of Parliament, but for the people who actually live in these properties it is a very different experience, given the impact on their daily lives and their mental health, as my hon. Friend has rightly highlighted.

The Government then gave additional powers to local authorities. I am not sure that a single local authority has used any of those powers yet. Indeed, when the permanent secretary came to see the Committee, she said there was a risk to local authorities if they used the powers in relation to whether they could actually make them hold and make them effective, and whether local authorities could actually get any money back if they went in and spent the money themselves.

Now we at least have the £200 million fund that the Government have announced for private sector properties, but there are a lot of questions about it. First, who applies for the fund? Who ensures the work is carried out? Is there a timeline by which all this work has to be carried out? What happens if no one applies and the building is still there with this cladding on it? What happens to the local authority if it goes in and does the work in default: does it get the money back? What happens where a developer has already, rightly, paid for the work themselves: can that developer claim the money back from the fund, or does it apply only to work that currently has not been carried out? In the end, who is responsible for the work being signed off as satisfactory? There are a lot of questions that need addressing, and I have written to Ministers about them on behalf of the Committee.

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Jim Fitzpatrick Portrait Jim Fitzpatrick (Poplar and Limehouse) (Lab)
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I appreciate the opportunity to make a brief contribution to this very important debate. I commend my hon. Friend the Member for Kensington (Emma Dent Coad) for securing it, and for the role that she has played over the past two years as Member of Parliament for the constituency containing the Grenfell Tower. I am very pleased to follow my hon. Friend the Member for Hammersmith (Andy Slaughter), a fellow officer of the all-party parliamentary fire rescue group.

I will not refer to the housing, rehousing and social issues because they were ably covered by my hon. Friend the Member for Kensington and others much closer to the events than I. I want to focus on the response in terms of the fire aspects. I thank the London fire brigade, the Mayor of London, the Business Sprinkler Alliance, the Fire Brigades Union and the Local Government Association for their briefings and continued interest and continued pressing of Government on this issue—and, of course, the Library for its papers for the debate.

All those bodies agree, I believe, that there was not, and was never going to be, a quick fix. There were and are some things that the Government could do, some of which they have done, and others that they should be doing, but I suspect that until the public inquiry concludes, the full story will not be out, and I am sure that even then there will be disagreements about the inquiry’s conclusions and recommendations. There have been some interim actions from the Government via the Hackitt review and pressures from elsewhere, but as Dame Judith pronounced, we need a comprehensive cultural change, including the revision of fire guidance and regulations, and the updating of building design, construction, inspection and approval.

Fire protection through suppression systems like fire sprinklers has become a main focus for many, and that is the one area where the Government ought not to await the conclusion of the public inquiry. There is a consensus across the fire sector that the protection offered, the lives that can be saved, the reductions in systems costs and the understanding of what can be achieved ought to persuade Government to do more on this, and to do it sooner rather than later. That includes for new and refurbished schools. That is one area that the all-party group has been focusing on since the coalition Government reversed the Labour Government’s 2008 guidance to local authorities, which had stated that schools should be fitted with fire sprinkler systems. That reversal has cut the number of schools being protected by fire sprinklers by over half in the past six years.

The all-party parliamentary group, chaired so ably by the hon. Member for Southend West (Sir David Amess), has been pressing on that, and for a revision of Approved Document B, for some years. Government should act now. I was very pleased to read the written ministerial statement issued this morning—a little bit late, but at least it is out. It has some very important elements, especially on the first page in respect of a comprehensive duty holder regime, and the list on page 2 of the things that the Government have done so far, which at least demonstrates that they have been doing something. I acknowledge that another consultation will be necessary, but a brief one—to the end of July—so hopefully, given how much work has been done, and ought to have been done, by the Department so far, conclusions will be quickly reached at the end of the consultation and we can see further progress in respect of protection for people in their homes.

On removal and replacement of defective cladding, the Government moved to support the social sector more quickly than they did the private sector. It took a year—it was two years for the private sector—but at least there is £600 million out there and most council and housing association properties have been addressed, or are completed, or at least the process is under way. The much slower response of the private sector obviously meant that similar progress was not possible there, but to his credit, the Secretary of State’s decision to come forward with the £200 million, and to instruct the Department and give a directive that that money should be made available, is very welcome. As my hon. Friend the Member for Sheffield South East (Mr Betts), the Chair of the Select Committee, said, any more information in respect of application for and circulation of the £200 million will be extremely useful, because there is still great concern about who can apply, how to apply, when the money will be available and who can get it.

There emerged from evidence sessions at the public inquiry some very unhappy and unfair criticisms of individuals, particularly of London fire brigade personnel, who unfortunately, in terms of timing, were among the early witnesses before the inquiry. As we all know, the media are merciless when they have anyone in their crosshairs as a target. No one is individually to blame for Grenfell. Some will be more guilty than others, some more culpable than others, but that will only come out through the public inquiry in due course. This was a comprehensive and catastrophic failure of Government, local government architects, engineers, construction, building control, inspectors, fire authorities, fire brigades and, no doubt, others. Apportioning responsibility is important, and I am sure it will happen. What is more important, what is critical and what is life and death, however, is to make sure that we construct and maintain safe buildings for people to live in. We are not there yet, and we will not be there for some time, but the responsibility for progress lies with the Government. They have to recognise what needs to be done—I know they have recognised that to a degree—what can be done and how to do it before the public inquiry concludes. The House’s impatience is clear from today’s debate. The Government need to recognise that and move on with this as quickly as possible.

Buildings with ACM Cladding

Jim Fitzpatrick Excerpts
Thursday 9th May 2019

(4 years, 11 months ago)

Commons Chamber
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James Brokenshire Portrait James Brokenshire
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My hon. Friend rightly points out the contribution of many people in the steps that have been taken and in providing the essential technical and other information to inform and assist in the taking of robust action where required, and we will continue to engage in that. I pay tribute to my hon. Friend: he has been a passionate advocate of the rights of leaseholders and others across the House, and that pressure and contribution has helped to make a difference.

Jim Fitzpatrick Portrait Jim Fitzpatrick (Poplar and Limehouse) (Lab)
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This bail-out for unscrupulous freeholders and developers is welcome, especially to leaseholders such as mine at New Providence Wharf, so I thank the Secretary of State and his ministerial colleagues for the money, as will the UK Cladding Action Group, the Leasehold Knowledge Partnership mentioned by the hon. Member for Worthing West (Sir Peter Bottomley) and Inside Housing—this statement probably guarantees the Secretary of State a splash front page in its next issue, which cannot do him any harm. The steps the Government have had to take show the weaknesses of the unregulated leasehold sector. Can the Secretary of State confirm that his Department will redouble its efforts to fulfil the promises of comprehensive leasehold reform as soon as possible?

Private Tower Blocks: Removal of Cladding

Jim Fitzpatrick Excerpts
Monday 29th April 2019

(4 years, 12 months ago)

Commons Chamber
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Jim Fitzpatrick Portrait Jim Fitzpatrick (Poplar and Limehouse) (Lab)
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I congratulate my hon. Friend the Member for Bethnal Green and Bow (Rushanara Ali), my parliamentary neighbour, on securing this important debate and on representing the plight of her constituents so powerfully. It is a pleasure to follow her.

I am pleased that both the Minister for Housing and the Minister for Policing and the Fire Service have been listening to my hon. Friend’s presentation of her issues, and will be listening to the rest of us, who have an opportunity to contribute that was not entirely expected. I am grateful for the chance. There have been a number of opportunities to discuss this issue over recent months. On 9 April, I raised New Providence Wharf in my constituency, and the reluctance of the developer and freeholder, Ballymore, to conform to the Government’s expectation that it would cover the costs necessary for fire safety work for residents.

I gently remind the Minister for Housing, for whom I have the highest regard, as I have for the Minister for Policing and the Fire Service, that I was promised a written update. I have yet to receive that correspondence. I would be grateful if he ensured that his office got that out for me. My constituents are asking me about it; it is only fair that I pass that on.

I want to mention the Inside Housing campaign, “End our Cladding Scandal”. Last Friday, the publication launched a new campaign that calls on the Government to act and end the scandal of residents trapped in private residential blocks with dangerous cladding. The all-party parliamentary group on leasehold and commonhold reform has backed the campaign, as have many MPs, the National Housing Federation, the Chartered Institute of Housing, the Royal Institute of British Architects, the Fire Brigades Union and Grenfell United.

The campaign has three main aims: the Government should provide a fund to cover the cost of cladding removal and remedial works on private blocks—as they have, very positively, for the social sector; the Government should set out a firm timescale of no more than two years for the work to be carried out; and residents should be reimbursed for the interim fire safety costs incurred, and funding should be provided for necessary internal fire safety measures identified by a competent fire risk assessor. Will the Minister comment on that campaign?

Furthermore, as my hon. Friend the Member for Bethnal Green and Bow mentioned in her introduction, the UK Cladding Action Group has conducted a mental, social and physical health survey to support its campaign. Its key findings are that nearly 65% of respondents said that, as a direct result of the ongoing situation, their mental health has been hugely affected. More than 85% stated that their mental health is worse now than it was before the ongoing situation. Almost 70% of live-in leaseholders said that they feel anxious and/or worried daily when they think of their future in relation to the ongoing situation. More than 90% of respondents said that they have money worries. Some 84% said they felt unsupported by the Government, and more than 60% said that they had worries about their family members’ safety. Is the Minister aware of this survey, and have the Government given a response?

Finally, the Association of British Insurers has supplied a briefing for this debate. It does not really cover the issue of Government funding for removal of defective material, but it does call for a renewed testing framework, for fire sprinklers for buildings above 18 metres or even 11 metres in height, and for more urgent reassessment of modern methods of construction and building regulations generally, as both Ministers on the Treasury Bench are aware.

This is more than an important issue; as my hon. Friend the Member for Bethnal Green and Bow said, it is critical to tens of thousands of our constituents. We are indebted to her for securing this debate, and for giving the Minister another opportunity to state the Government’s position. That position is supported across the House, but we want more developers to support what the Government expect them to support.

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Kit Malthouse Portrait Kit Malthouse
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I am grateful to my hon. Friend. If he will bear with me, I will come on to some of those issues in my speech. If I have not addressed them by the end, he can by all means intervene on me again.

Owing to our continued pressure, following the Secretary of State writing to all building owners, there is a growing list of owners and developers who are agreeing to fund remediation. Leaseholders are currently protected from remediation costs in 83 out of 176 residential buildings. The growing list of owners and developers who have stepped in includes Barratt Developments, Mace Group, Legal & General, Peabody, Aberdeen Asset Management and Frasers Property. I am pleased to say that following regular engagement from the Secretary of State, me and senior officials, the building owners at Green Quarter in Manchester have now written to leaseholders to confirm that a fund has been established. This will ensure that leaseholders will not have to pay for the cost of remediating the ACM. We are very pleased at this outcome. I know residents feel strong relief that the uncertainty and anxiety over costs has come to an end.

We remain concerned, however, that some leaseholders are not yet protected from costs. They have found themselves in this difficult and stressful situation through no fault of their own, having bought their properties in good faith. I would like to assure Members that the Secretary of State and I, as well as senior officials, continue to press owners and developers of all high-rise buildings with unsafe ACM cladding to protect leaseholders from paying for this essential remedial work. Further to that, we have been engaged across Government to consider additional interventions, so that progress can be made more swiftly.

We also want to make sure that leaseholders can access independent initial advice. We have provided funding to the Leasehold Advisory Service, which provides a free, initial service to affected leaseholders. Its dedicated advice line and outreach helps leaseholders to understand their rights and the terms of their leases. The Leasehold Advisory Service has supported a number of affected leaseholders to understand the terms of their leases and the legal process for challenging a building owner if they attempt to pass costs on.

On the subject of pace, we are working with all relevant parties, including local authorities and building owners, to ensure remediation happens without unnecessary delay. Remediation does take time and it is important to get it right. The time to complete work varies considerably depending on factors such as structure, extent of cladding and existing fire safety systems. For many buildings, this is a complex job involving major construction work. I am aware that the removal of cladding in a number of buildings has revealed other defects and issues that have complicated matters and needed rectification.

Jim Fitzpatrick Portrait Jim Fitzpatrick
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I am grateful to the Minister for giving way. Before he moves off the point about discussions across Government of what further measures they might be able to take, is he able to articulate what they are tonight or will he lay them out in due course to the House?

Kit Malthouse Portrait Kit Malthouse
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The hon. Gentleman is quite right to press me, as is my hon. Friend the Member for Thirsk and Malton (Kevin Hollinrake). I am not able to say tonight what specific measures are likely, but I am hopeful that we will be able to do so shortly.

We have worked closely with local authorities and fire and rescue services to ensure that interim safety measures are in place, so that residents are safe in their beds tonight. The hon. Member for Bethnal Green and Bow referred to my wanting reassurance that people are safe tonight. In fact, I have ordered a review of all those arrangements to take place as soon as possible, so that I can reassure myself that that is still the case.

Local authorities have the power to enforce these improvements if building owners do not take action. We are backing local authorities to take action where building owners refuse to remediate, including with financial support where it is necessary for the local authority to carry out emergency remedial work. Where financial support is made available, the relevant local authorities will attempt to recover the costs from the building owner.

Housing

Jim Fitzpatrick Excerpts
Tuesday 9th April 2019

(5 years ago)

Commons Chamber
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Kit Malthouse Portrait Kit Malthouse
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The hon. Lady raises an issue that, in certain parts of the country—including in my constituency —can have an impact, albeit that I think it is sometimes overstated. Having said that, the Government have taken steps, such as giving councils the power to charge premium council tax on empty homes and second homes, which should help with that issue. In the end, however, in areas such as the hon. Lady’s, most of the problem will be solved by increasing supply. I recently attended a meeting with the Campaign to Protect Rural England down in her part of the world, where I tried to explain to 240 people who were not best pleased at the idea of having a significant number of homes in their area that this was their moral duty to the next generation and that they needed to accept the homes, control them, design them well, and make them fit in and enhance their local communities. We have a growing population and in popular areas where people want to live and from which young people are often driven out, the solution will be to build more homes.

Happily, the picture is also improving for renters. We are cracking down on rogue landlords and from 1 June, the Tenant Fees Act 2019 will come into force, banning unfair letting fees and capping deposits. These vital steps will protect tenants and save them millions. We will also set out our position shortly on longer-term tenancies, because those in the private rented sector can face a high degree of insecurity. It is time that we put that right. Indeed, landlords could also benefit from more stability. As well as feeling more secure, nothing is more important than people being safe in their homes, so we will also be implementing a new regulatory framework for building safety. It is no small task but it is the debt we owe to those who suffered so terribly from the Grenfell fire, because everyone must be safe and feel safe in their home, no matter where they live.

Jim Fitzpatrick Portrait Jim Fitzpatrick (Poplar and Limehouse) (Lab)
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The Minister knows that I have residents in New Providence Wharf who are being pressured by Ballymore to pay for the removal and replacement of defective cladding. He has kindly looked at that issue. Will he assure us that the Government will continue to press companies to accept their responsibility and the cost? Can he tell us anything about progress, particularly in New Providence Wharf?

Kit Malthouse Portrait Kit Malthouse
- Hansard - - - Excerpts

The hon. Gentleman has met me to press his constituents’ case. In turn, I have raised the matter face to face with the representative of Ballymore. We continue to put pressure on the industry generally to do its duty to leaseholders and critically, to remediate to ensure that everybody is safe in their homes. However, I am more than happy to write to the hon. Gentleman in the next few days about the progress we are making generally on the issue.

Local Government Funding

Jim Fitzpatrick Excerpts
Wednesday 27th March 2019

(5 years, 1 month ago)

Westminster Hall
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Jim Fitzpatrick Portrait Jim Fitzpatrick (Poplar and Limehouse) (Lab)
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It is a pleasure to see you presiding today, Mrs Main, and to follow my hon. Friend the Member for Colne Valley (Thelma Walker). She made a fine opening speech, and I congratulate her on securing this important debate. Attention has already been drawn to the imbalance of numbers in attendance, which speaks volumes. It is not rocket science to work out why, but perhaps the Minister, who is an honourable gentleman, might comment on the numbers attending the debate as well as responding to it.

I will make only a short contribution and refer to one briefing from my local authority of Tower Hamlets, and from our excellent Mayor, John Biggs, and the very respected cabinet member for resources, Councillor Candida Ronald. Colleagues will know that Tower Hamlets is one of the poorest boroughs in the country, but it has a rich past, with the Tower of London, Cable Street and the docklands. It has an exciting future as a key part of London’s regeneration engine.

Tower Hamlets Council voted to support the “Breaking Point” national campaign, which was set up to call for the Government to properly fund local authorities. Tower Hamlets core funding this year is £148 million lower than in 2010, which is a staggering reduction of 64%. Since 2010, around one third of the council’s staffing posts have gone. Future cuts mean that Tower Hamlets must save a further £44 million from its budget over the next three years. Will the Minister advise us how that might be achieved?

While the council has faced cuts from central Government, our borough’s population and demand for services have continued to grow. Like other councils, Tower Hamlets continues to face a crisis in adult and children’s social care and special educational needs funding. Demand is increasing. Last year alone, the council received almost 4,000 fresh requests for adult social care support—up 8.7% on the previous year.

At the Tower Hamlets full council meeting on 20 March, Mayor Biggs attacked the Government for

“putting frontline services at risk.”

An important consideration is how austerity has hit other local services such as policing, and the effect on the council’s priorities. We have lost more than 200 police officers from the streets of Tower Hamlets. The council’s response was to step in and invest £3 million to pay for some of its own officers. Regrettably, that is just one area in which Tower Hamlets Council was forced to cover the gap created by this Government, but it cannot be expected to replace everything.

On fair funding, Tower Hamlets responded to the Government’s consultation and raised the following concerns. The first is that it has less emphasis on deprivation. Secondly, it fails to factor in the impact of additional population, which is key in Tower Hamlets, where more than 200,000 commuters travel to each day. Thirdly, fair funding has a notional approach to council tax income and does not give an actual figure, which would significantly penalise authorities that have worked hard to keep their council tax rates low. Finally, the cost of homelessness and temporary accommodation does not adequately form part of the formula, which will impact on high-cost areas, especially London.

Even Tory councils are struggling to cope. It is well known that Northamptonshire County Council effectively declared bankruptcy last year. Nationally, councils now face plugging a further funding gap of £7.8 billion by 2025 just to keep services standing still and meet additional demand. I hope the Government accept that there is a crisis, even if it is not geographically universal. The Government might claim that the era of austerity is over, but it is not even in sight. We need them to step up and recognise that this is a problem.