Renters (Reform) Bill

Jim Shannon Excerpts

2nd reading
Monday 23rd October 2023 Commons Chamber

[Caroline Lucas (Brighton, Pavilion) (Green)]

rose—

[Jim Shannon (Strangford) (DUP)]

rose—

[Michael Gove]

I will not give way at this stage; I will make a wee bit of progress, then I hope to give way shortly.

I want to emphasise that a healthy private rented sector is in all our interests. Making sure that both landlords and tenants have a new deal and a fair deal is critical.

--- Later in debate ---

[Jeremy Corbyn (Islington North) (Ind)]

rose—

[Jim Shannon]

rose—

[Michael Gove]

I am happy to give way to the hon. Member for Strangford.

[Jim Shannon]

The Minister is right to say that the encouragement of private landlords is important to ensure that rental properties are available, but it is also incredibly important that unscrupulous landlords are not facilitated in avoiding their obligations. In relation to the obligations, Citizens Advice has recently announced some figures, which show that 48% of evicted tenants have been told that their landlord wanted to sell. This is a common reason for ending a tenancy. With respect, nothing in this legislation suggests that landlords must give evidence that they have followed through on their intention to sell. Will the Minister rectify that?

[Michael Gove]

Of course, landlords and any property owner must have the right to sell their home if they need or wish to do so; nothing should interfere with that. None the less, it is the case that there may be circumstances in which there will be some landlords who use an attempt to sell, or a claim to sell, as a feint in order to evict a tenant. In Committee, we will explain how we will ensure that, in those circumstances, the situation is effectively dealt with.

--- Later in debate ---

[Angela Rayner]

I agree. I hope I can bring the House together when I say that it is right that we get moving on this issue. The Secretary of State has made it clear that the Government will move on it, but I am concerned about potential delays. I will come to those points in more detail.

[Jim Shannon]

There may well be consensus in the House—I hope there is; we will see how it goes later on. A major issue that comes to my attention and that of many others is mould, condensation and damp in houses, about which tenants tell me regularly. Does the right hon. Lady feel that the Bill can satisfactorily address that to ensure the health and safety of tenants and their families?

[Angela Rayner]

We need legislation for decent homes alongside these provisions. I hope that we can get into that, and how we can protect people, in Committee. As the Secretary of State acknowledged, at the moment many families face a situation of inadequate housing, which goes beyond the scope of the Bill. I think we all agree that that needs to be addressed as soon as possible.

Oral Answers to Questions

Jim Shannon Excerpts

Monday 16th October 2023 Commons Chamber

[Rachel Maclean]

I can assure my hon. Friend that it is the Government’s policy to strongly encourage local authorities to make the most of brownfield land first, especially for new homes. It is right that if local authorities want to alter a green belt boundary, they have show exceptional circumstances. We Conservatives believe in preserving our green spaces, and it is interesting to hear the proclamations from the Opposition. I will be very interested to see whether they propose concreting over the green spaces surrounding their own constituencies.

[Jim Shannon (Strangford) (DUP)]

I chair the all-party parliamentary group for healthy homes and buildings. We have undertaken an inquiry and sent the report through to Ministers. The recommendations from that were clear: while it is good to have healthy, energy-efficient homes, it is really important to have green space around those houses. Has the Minister had an opportunity to read the report from the APPG? If not, I will ensure that she gets a copy, and I hope that she will then come back to me on the recommendations.

[Rachel Maclean]

I thank the hon. Gentleman so much for his comments, and I would be delighted to read the report from his APPG and respond to him. I fully agree with his broader point that green spaces are vital for mental health and wellbeing, as well as physical health.

Voter Identification Scheme

Jim Shannon Excerpts

Thursday 14th September 2023 Commons Chamber

[Rachel Maclean]

I will respond to that by asking the hon. Gentleman to reflect on his comments. Is he seriously suggesting that the introduction of photographic identification is not suitable? Does he seriously think that it should be harder to take out a library book than to vote in his constituency today? If he is seriously suggesting that, that—more than anything else—gives us evidence that the Labour party is in no way ready for government. It is not a serious party: it does not take seriously the threat to our democracy from international actors, and would do nothing to tackle the very real issues experienced by ethnic minorities in Tower Hamlets and Birmingham, who are being systematically disenfranchised by the corrupt practices of certain people in their local areas.

[Jim Shannon (Strangford) (DUP)]

I might be a lone voice on the Opposition side of the Chamber, but I reinforce what the Minister has said. The electoral voter ID system for Northern Ireland has been a tremendous success, as is proved at every election. It shows that the system can work.

A short time ago, along with my chief of staff, I visited the Electoral Office for Northern Ireland to be constructive and suggest how we could perhaps do some things better. The Electoral Commission is agreeing to set up hubs across Northern Ireland constituencies, giving people the opportunity to get their voter IDs in person. That has not always been possible in areas of my constituency, so I welcome that commitment, which will be announced, I understand, in early October. Will the Minister consider something similar for the United Kingdom so that everyone can have the advantage of getting their voter ID in person in their own constituency?

[Rachel Maclean]

I thank the hon. Gentleman for sharing his really practical and useful wisdom from the policy that has been rolled out in Northern Ireland—a valued part of our United Kingdom—where it has been working very well for many years. I note that a much smaller list of documents is used in Northern Ireland and that that has worked effectively. In the Electoral Commission’s recent 2021 public opinion tracker survey, not a single respondent from Northern Ireland reported that they did not have ID and had found themselves unable to vote.

Of course, we must always look at the sensible and practical recommendations from the Electoral Commission. We will continue to do that. Before this roll-out, we put a significant amount of investment into working with civil society and charities. We have made funding available for communications campaigns. It is just a shame that the Labour party and Liberal Democrats did not take the opportunity to amplify our messages among their own constituents. We all have a shared responsibility in this place to amplify messages and communicate effectively, particularly to ethnic minority and disabled voters. I know that is what I did ahead of local elections; I wonder what they did.

High Street Heritage and Conservation Areas

Jim Shannon Excerpts

Wednesday 13th September 2023 Westminster Hall

[Jim Shannon (Strangford) (DUP)]

It is a pleasure to speak in this debate on high street heritage and empty properties in conservation areas. I congratulate the hon. Member for Stoke-on-Trent South (Jack Brereton) on setting the scene with detail, information and evidence that encapsulates all our thoughts and puts on record what he wishes to see for his town.

It is a pleasure to see the strength of support from—I am not sure if this the right word—the Stoke cabal, who are all here. I mean that in a good way, because they have worked together very well and are a team. I have been impressed by them over the past few years, so I am really pleased to see everyone here and of the same mind. The hon. Member for Stoke-on-Trent North (Jonathan Gullis) will be coming to Newtownards, if God spares us until March next year. He will be my guest at a dinner, and I very much look forward to showing him a wee bit of Newtownards, so he will know for himself just what it is like.

I am pleased to see the Minister in her place. She has been in the vanguard, because she came to Newtownards last summer to see what it is like. We talked about her visit before she went and while she was there, and I know that she was in the Ards peninsula and in Newtownards town. She will understand well what I am going to refer to.

I am very proud to have an office in Newtownards town, which boasts a rich history as a market town. It is the major town in my constituency of Strangford. In 1605, Hugh Montgomery was granted the lands and set about rebuilding what was then known as Newtown; it was later expanded to Newtownards, because it took in the Ards district and the Ards peninsula, and that is the name that we have today. Official records show that the town was established in 1606. Montgomery built a residence in the ruins of the old priory, the tower of which remains, just off the main shopping street and its satellite streets with their smaller boutiques.

I have seen changes in Ards over the years, but I have also seen a commitment, from a Department that is not the Minister’s responsibility, to retain the high street’s heritage and some of the empty properties that needed extra attention. Newtownards became a market town, with the Market House in Conway Square constructed in 1770. The Market House is known today as the town hall, but the market still operates in the square every Saturday, come rain, snow or shine. It is very much one of the attractions of Newtownards, bringing lots of people into the town from not just the surrounding area but further afield. It is cosmopolitan: you meet people from all over the Province on a Saturday morning in Newtownards.

We have one of the few high streets to have bucked the trend. Of course, we have a shopping centre mall, but our high street is thriving—indeed, it won the high street of the year award last year and a bronze award this year. The right hon. Member for Rochester and Strood (Kelly Tolhurst) visited when she was a Minister, during the covid period, and we were all greatly impressed. Her engagement with the chamber of trade, businesses and elected representatives has left a lasting impression on us in Newtownards. Even today, she always asks how we are getting on in Newtownards; I always say, “Come back, and we will refresh your memory.” Hopefully, that opportunity will arise.

We have a rich blend of culture and couture, with numerous small boutiques and independently owned shops, which people from throughout Northern Ireland travel to and make the most of. The historic Saturday market has the oldest market cross in Northern Ireland. It was built in 1636, but destroyed by the Commonwealth troops in 1653. The present replacement building was finished in 1666—I am going back a few years there. Its conical roof was probably used as an office or shelter for the town’s nightwatchmen. Townspeople say that the cross used to flow with wine—it may still do so today—at the birth of a royal baby. That tells us a wee bit about the history. I know that all right hon. and hon. Members in this Chamber are, like me, committed to the Union of Great Britain and Northern Ireland, and the royal family have a key role for us in that.

The market cross is the only surviving 17^th-century example in Northern Ireland. The original cross resembled a similar structure in Edinburgh, being octagonal with a flat roof and was topped by a stone column some 20 feet in height, on which there was a carved lion. It is a rich piece of history in the middle of a thriving high street.

Carnduff Butchers, the only butcher in the town, employs some 45 people. There are bakers, shoemakers—yes, we have them all—and a variety of other shops. Warden Brothers, the biggest shop in Newtownards and one of the last independent stores, is 146 years old. It was established in 1877 and employs some 55 people.

These are all reasons why the right hon. Member for Rochester and Strood came over. She appreciated the abundance of variety in Newtownards town, and I know that the Minister will appreciate that as well. It has culture and modern shops, with something for everyone, all under the very energetic direction of the chamber of trade, led by its president Derek Wright.

However, as with most high streets, there are difficulties with some of the empty lots. We are fortunate that some of the empty lots are starting to fill up, as there is demand for properties in the town. I commend Ards and North Down Borough Council for running a scheme for the upkeep of those properties with frontage, which is so useful. That needs to be funded; I am ever mindful that how the streets in Newtownards and elsewhere in Northern Ireland are funded is not the Minister’s responsibility, but I know from our conversations that she has a deep interest in Northern Ireland, and these are things that we are concerned about.

On the funding that should be provided for these properties—especially for the listed buildings, additionally to the historic ones—I have a simple question for the Minister. I know she will come back with a positive response, as she always does. What engagement has taken place with the relevant Department in Northern Ireland to ensure that we can move forward together, sharing ideas and schemes perhaps, to maintain that cultural heritage in the high street that we so much wish to have?

Our high street is only as strong as the crowds who flock to it. Newtownards has much to offer, and the chamber of commerce and the local council must be commended. They have a strategy and they have a plan, but they must be supported to enable them to continue. That is what is needed from the Department back home in Northern Ireland, but also from this Government and from the Minister here.

I look forward to hearing what other hon. Members have to say. I am always encouraged by hon. Members who push for their towns in the way that they should, as I do for my town back home.

Social Housing (Regulation) Bill [Lords]

Jim Shannon Excerpts

Consideration of Lords message
Monday 17th July 2023 Commons Chamber

[The Parliamentary Under-Secretary of State for Levelling Up, Housing and Communities (Dehenna Davison)]

I beg to move,

That this House does not insist on its amendment 13 to which the Lords have disagreed, and agrees with the Lords in their amendment 13B in lieu.

We are bringing the Bill back to the House for what I hope is the final time, to get this vital legislation on to the statute book. It seeks to enable the biggest change in social housing regulation in a decade and to drive the change that is so desperately needed in the social rented sector.

When the Bill was last before the House, we made important amendments to clauses on competency and conduct standards in relation to mandatory qualifications. They made provision to require senior housing managers and senior housing executives of registered providers to have, or be working towards, appropriate-level housing management qualifications. We subsequently tabled amendment 13B in the other place to ensure that relevant managers employed by organisations that deliver housing management services on behalf of a registered provider are also captured by the legislation, as was our original policy intention.

[Jim Shannon (Strangford) (DUP)]

I have no doubt that we all welcome and support professionalism from those who check the regulations. I am always perplexed that we do not have the same regulations in Northern Ireland. Is it the Minister’s intention to ensure with the appropriate body in Northern Ireland that professionalism can also be effective there?

[Dehenna Davison]

The hon. Gentleman is, as ever, a fantastic champion for Northern Ireland and its people. We will, of course, continue to have conversations with the relevant bodies in Northern Ireland, because it is important that social housing, wherever it is provided within the United Kingdom, is up to the appropriate standard. I know he will continue to champion that cause.

In closing, I would just like to put on record one final time my and my Department’s heartfelt thanks to Grenfell United and all other stakeholders for their strong constructive engagement on this critical legislation. I hope that, following today, we will see it on the statute book incredibly soon.

Oral Answers to Questions

Jim Shannon Excerpts

Monday 10th July 2023 Commons Chamber

[Rachel Maclean]

No.

[Jim Shannon (Strangford) (DUP)]

I thank the Minister very much for her responses. One of the key issues is for urgent planning decisions to be made. The Minister has a keen interest in Northern Ireland, where the population has risen by about 100,000 up to 1.9 million. One thing that needs to be done is on infrastructure decisions, which need to be made here nationally, not regionally. What discussions has she had with the Northern Ireland Assembly to ensure that those decisions can be made to the benefit of all of us in the United Kingdom of Great Britain and Northern Ireland?

[Mr Speaker]

Only if the Assembly sits.

--- Later in debate ---

[The Parliamentary Under-Secretary of State for Levelling Up, Housing and Communities (Dehenna Davison)]

I am grateful to my hon. Friend for outlining the concerns of local residents, showing why levelling up is also needed in parts of the country like Bracknell. We will imminently announce full details of levelling-up round 3, and I will, of course, provide him with those details when we have them.

[Jim Shannon (Strangford) (DUP)]

To strengthen the Union, and with the Windsor framework not able to answer all the difficulties due to the Northern Ireland protocol, what recent discussions have taken place with Cabinet colleagues on pressing the EU for a common-sense approach and on making the necessary adjustments to keep Northern Ireland a functional and integral part of the UK, which is the will of the people?

[Michael Gove]

The hon. Gentleman is absolutely right that it is the clearly expressed will of Northern Ireland’s people to be embedded in the United Kingdom, and we need to make sure that the EU takes a constructive approach, following on from the publication of the Windsor framework. My right hon. Friends the Foreign Secretary and the Northern Ireland Secretary are taking that forward.

Freehold and Leasehold Reform

Jim Shannon Excerpts

Wednesday 5th July 2023 Westminster Hall

[Jim Shannon (Strangford) (DUP)]

I thank the hon. Member for Dartford (Gareth Johnson) for leading this important debate on leasehold reform, or fleecehold as it might be for some people—I think everyone who has spoken has said that. As often happens in this House, whatever our political aspirations or affiliations, we have been bought together by this joint issue. It is always a pleasure to follow the hon. Member for Congleton (Fiona Bruce). We have been together twice in one day in Westminster Hall—we were here at 9.30 am and came back for more at 2.30 pm—and we have also had many meetings today on various issues. It has been a busy day for us all.

I have spoken on this issue many times in Westminster Hall and in the Chamber. I have raised the importance of protection for tenants regarding their leases and concerns about rising costs for ground rent. Security of tenure is imperative for our constituents, and we have to do all we can to assist them in these matters. All Members present put forward a clear case on behalf of their constituents, and I want to do the same. I look forward to the response from the shadow Minister, the hon. Member for Greenwich and Woolwich (Matthew Pennycook), whose requests will be as illustrative as ours. I look forward to the Minister’s comments as well. As others have said, she has indicated a willingness to respond in a positive fashion to try to address these issues. Time is of the essence. That is the main point that has been put forward, and I wish to make that point as well.

In the past, colleagues of mine have raised the issue of leasehold reform in Northern Ireland. I will echo their comments and reinforce their importance. More than 4,000 Northern Ireland homeowners bought property under right-to-buy legislation, but they may struggle to resell their homes due to the fact that it is extremely difficult to obtain a mortgage on properties with less than 85 to 90 years left on the leasehold. Many constituents are only now becoming aware that many years of their leasehold have expired, making it extremely less likely that they will be able to sell their home. In addition, banks and building societies will not lend money to cash-buy those types of properties, so the hope that another cash buyer would even consider purchasing these types of homes in the future is slim or, indeed, non-existent. In theory, this will seriously disadvantage those working people and families who aspire to own their own homes but do not have the capital to purchase a home outright.

One of Margaret Thatcher’s policies—she had many policies; I did not agree with them all, by the way—was that people should own their own homes. I always thought that was as it should be; people aspire to own their own home and if we can help them to do so, we should. However, the Northern Ireland Housing Executive has stated that there is currently no statutory provision to help deal with the problem that we are discussing today. From 1 April 1997 to 31 March 1998, 4,111 flats were sold with leases of 125 years or less. That leads me back to my earlier point that people are less likely to purchase such homes because the leasehold and ground rent can be quite debilitating. The Northern Ireland Housing Executive does not hold information for housing associations—they are different organisations, but still control some properties—so the number of people affected will be much higher.

I am aware that this debate is centred on England, but I always like to give a Northern Ireland perspective. Everybody knows that; I think Members expect it to be the case. It is how we illustrate the issues. In this great House, of course, we represent four regions—four nations within one—and it is what brings us together that cements and strengthens our position. This issue is a UK-wide issue and it must be addressed UK-wide. When the Minister responds to the debate, I would be very keen to know her thoughts on where the discussions will go with the responsible organisations in Northern Ireland.

Given that there is no limit on service charges, insurance, ground rent and forfeiture charges, leaseholders have been left open to exploitation by their landlords. Given that there is no such cap, we actively allow leaseholders to be taken advantage of and there is no regulation or protection for them.

I have spoken in the past about the necessity of a fair fee for a fair service. Other Members have also referred to that idea. A Government survey has found that 70% of leaseholders regretted buying a leasehold property. That is a staggering figure—almost three quarters of them regret it. Although in Northern Ireland there is the option to buy out a ground rent, that often comes at a fee that people simply cannot afford to pay.

Furthermore, land and property service fees and solicitor fees are paid separately, placing an additional burden on leaseholders. There must be more onus on the responsibility that ground rent must be paid. In Northern Ireland, if an individual tries to buy out their ground rent but there is a record of a missed payment, the additional payment can be up to six times the missed amount, which again would be detrimental to the finances of some families. There is something wrong with a system that seems to penalise leaseholders, with all the advantage lying with those who have control of their ground rent, or indeed landlords or owners of land.

I strongly urge the Minister to engage with the Department for Communities back home to see what steps can be taken to address these issues, as they have proven to be prevalent in all of our constituencies, whether in Northern Ireland, England, Scotland or Wales. That means that these crucial issues need to be tackled UK-wide.

Economic Activity of Public Bodies (Overseas Matters) Bill

Jim Shannon Excerpts

2nd reading
Monday 3rd July 2023 Commons Chamber

[Michael Gove]

British policy is, as my hon. Friend knows, to promote a two-state solution. I know that he has a long, passionate and committed interest in this subject and I respect the compassion and knowledge that he brings to the debate but, respectfully, I disagree with him. I believe that a two-state solution is the right approach, which the BDS movement does not believe.

[Jim Shannon (Strangford) (DUP)]

I very much welcome the legislation that the Secretary of State is introducing, and we as a party will support it when the time comes tonight. There are many examples in Northern Ireland of councils having overstepped the mark by boycotting goods from Israel and penalising and focusing attention on the small Jewish community. Local authorities should be working hard to support diversity and good relations, not ridiculing and condemning our small and minority communities. It is clear to me that the point of the legislation is to make sure that that does not happen, so let us make sure that it goes through tonight.

[Michael Gove]

I agree, as I do almost always, with every word that the hon. Gentleman said.

--- Later in debate ---

[Jim Shannon (Strangford) (DUP)]

It has been a joy to hear the different opinions expressed in the Chamber today, both from those in favour of the Bill and from those against it. I have to say to my good friends, as I call them, sitting near me in the Chamber that my opinion differs from theirs, but that will not be a big surprise to them.

I am a well-known friend of Israel, and I make no apology for registering my interest and my support. Having said that, I know that it will—again—come as no surprise to any Member that I support the Bill, and, indeed, I said as much to the Secretary of State in an intervention earlier. The anti-Israel sentiment that flourishes in the absence of legislation must be addressed. I know that some Members who are present believe that the principle of boycotting has been used effectively for years, recalling the boycott of German goods, and I know of many a person who has boycotted a company in opposition to a decision or policy in that company. However, it is not the job of universities or other Government-funded bodies to make the decision to boycott for a political reason without an outright decision in this place, which is why the Bill is before us tonight. While some may also believe that only a principle is being debated today, the fact is that there is an active boycott against Israel in some political circles, and it does have an effect.

Let me give some examples from Northern Ireland. In 2014, the Sinn Féin mayor of what was then Newry and Mourne Council wrote to shopkeepers in the council district requiring them to inform him about all the Israeli goods that they stocked. In his capacity as mayor, he told local businesses in Newry that unless they immediately withdrew Israeli goods from sale, they were giving

“financial support, succour and legitimacy”

to “apartheid” and racism. Well, no, they were not. Those receiving the letter from the mayor—local shopkeepers and business people—understandably felt targeted, and some said that the letter struck them as deeply sinister, intimidating and extremely divisive.

This boycott is clearly racially motivated, which is underlined by debates taking place on the Israel issue. In a Belfast City Council debate on Israel in 2019, Israel was presented by nationalist and Marxist councillors as a unique evil in the world, requiring unique measures to be taken against it. People Before Profit councillors referred to Israel’s establishment and existence as a racist endeavour. Well, no, it is not, but they said that it was. The reality of any conflict in the middle east was denied; it was only their perceived Jewish oppression of Arabs. Concerns expressed about growing antisemitism were shamelessly deflected and ridiculed; it was just a deliberate tactic to silence criticism of Israel. It was suggested by some councillors that only Jews who held anti-Zionist positions deserved the council’s solidarity, a view that is perpetuated by the boycott of Israeli goods on a global scale in which this nation has been a silent partner for so long. That is why the Bill is so important.

Let me be clear: Israel’s existence and survival are vital to many in our Jewish community as a matter of their core identity, religious faith, family connections and sense of physical safety and security. Criticism of an Israeli Government or policy is one thing; demonisation of Israel as a unique evil, along with demands for the Jewish state’s elimination from the face of the earth, is quite another. Demonisation, boycotts and expulsions directed against the world’s only Jewish state do not sit well with me or with my colleagues, and, indeed, should not sit well with any member of this House. Local authorities in Northern Ireland, as elsewhere, should be working hard to support diversity and good relations, not isolating and undermining one of our smallest and much-cherished communities.

Recently, a media outlet in Northern Ireland published a letter from a self-styled interfaith group identifying the leadership of Ireland’s tiny Jewish community with genocide and apartheid in the middle east. Well, no, they do not do that. The letter called on the 80 Jews in Belfast to support their “moderate” aim of bringing down the Zionist regime. To put it starkly, this is where the so-called BDS campaign will lead if it is never properly called out and challenged: it will lead to the targeting and isolation of not just the Jewish state, but those of us—and I am one—who consider ourselves friends of Israel, including many members of our Jewish community.

Let me give some more examples in the last couple of minutes available to me. Family businesses in Northern Ireland, such as Wilson’s Country Ltd, were subjected to a vicious attack on social media because they stocked Israeli new potatoes. An Israeli-owned stall at CastleCourt in Belfast was regularly physically attacked, and its staff intimidated. Some of these attacks were so serious that they led to custodial sentences. The stall was forced to close and has never returned.

Staff at the Linen Hall library in Belfast complained of online bullying after it hosted an event celebrating the centenary of Chaim Herzog’s birth in Belfast. Library staff were harangued.

During the conflict in the middle east, Belfast’s synagogue had its windows smashed and the community’s rabbi received threats and needed escorts to and from the synagogue. The community has frequently been targeted by online abuse.

A County Tyrone sports personality with an online following tweeted, “If you’re lucky enough to know a Jew, punch him in the face.” The PSNI is investigating. Pubgoers in the Bogside were recorded by an undercover Israeli reporter telling him, “Jews are the scum of the earth. Hitler didn’t kill enough of them.” The PSNI is investigating.

There were calls to cancel a friendly football match between Northern Ireland and Israel. The Israeli national team is more diverse than any other team in the world, because it includes Jews, Muslims and Christians. Again, the line of abuse is incredible.

My last example is from 2016, when Derry City and Strabane District Council claimed to be the first local authority in Northern Ireland to pass a motion boycotting Israeli goods. In 2018, the same council voted that to have a Friends of Israel representative speak to the council to put their side of the case would be a disgrace to the city. It did not want to hear the other side of the argument. The voice of freedom and free speech was not heard.

I will not be siding with the threat of expulsions, boycotts and isolation. I therefore welcome this Bill, which will prevent our local authorities from being abused in this extreme and divisive manner. We in Northern Ireland have seen more of that than most.

Co-operatives and Alternative Businesses: Local Authority Support

Jim Shannon Excerpts

Tuesday 20th June 2023 Westminster Hall

[Dame Meg Hillier (Hackney South and Shoreditch) (Lab/Co-op)]

I beg to move,

That this House has considered the role of local authorities in supporting co-operatives and alternative businesses.

It is a pleasure to serve under your chairmanship, Mr Dowd. I am proud to declare my interest as a Labour and Co-op MP since 2005, and as a member of a co-operative society. I shall discuss the importance of co-operatives and alternative businesses. It is great to see the Minister here because I want to talk in particular about how councils have a role in promoting co-ops in their areas.

It is worth giving the basic background. Co-operatives are mutual societies, often locally based, that invest their profits with their members and services. That means that they are very much part of the local community, with their activity and finances in that local area. They put economic power directly in the hands of local people, ensuring that the benefits of economic growth are felt by those who create it.

As I said, I want to highlight the role of councils. There are now 41 councils up and down the country that are members of the co-operative councils’ innovation network. Those councils believe that traditional models of top-down governance and economic growth are not always fit for purpose. By being part of that network, they choose to reclaim the traditions of community action, community engagement and civic empowerment that can transform communities.

There were 7,200 co-operatives in the UK in 2021. Those include 2,500 social clubs in the trade union sector; 721 in retail; and 720 in housing, which is an area of particular interest to me. There are 14 million people in the UK who are members of co-ops. This is a significant sector that reaches into many areas of our lives. Co-ops directly employ 250,000 people. In 2015, co-ops produced 2% of the UK’s GDP. That is impressive enough but, compared with New Zealand where co-ops produce 20%, France and the Netherlands, where they produce 18% in each, and Finland where they produce 14% of GDP, there is still a lot of opportunity, to put it positively, for co-ops in the UK. There is also a lot of wasted opportunity, when considering what they could do to deliver for communities and the wider economy.

In 2021, UK co-operatives had an annual turnover of £39.7 billion, and they have grown every year since 2017. They are significant and important in economic terms. Some people might ask why promote co-ops rather than other businesses. Co-ops are more ambitious than other businesses, according to research by the Co-op party and its allies. As many as 61% of co-ops expressed ambitions to grow, compared with 53% of small businesses generally in the UK. That might be because some are smaller, so it is easier for them to have that ambition. Obviously, businesses are going through a difficult time at the moment. Nevertheless, that is a sign of people’s personal investment in co-operatives.

Co-operatives are more resilient. Co-op start-ups are almost twice as likely to survive the first five years of trading, compared with start-ups generally. Co-ops were more resilient in the pandemic, with the number growing by just over 1% between 2020 and 2021. It is interesting that co-ops have a smaller gender pay gap than other businesses: 9% compared with 12%, based on the median hourly wage in Great Britain, and covering Northern Ireland as well. That may be because co-ops have a flatter pay scale and less of a hierarchy, but that is nevertheless a significant fact when looking at that important issue.

I want to highlight what local government is doing to promote co-ops. I will start my canter around the country with Greater Manchester and its Co-operative Commission, which was established by the Greater Manchester Combined Authority and launched by Mayor Andy Burnham, to make recommendations aimed at enabling the co-operative and mutual sector to make the best possible contribution to Greater Manchester. Of course, that is very fitting considering where the Rochdale pioneers came from. Mayor Burnham is going back to the roots of his region.

The commission focused on recommendations in three sectors: housing, the digital economy and transport. They were all chosen because of their fit with the Greater Manchester strategy. The commission promoted co-ops to reduce inequality, improve education and employment. Its stated aim is

“To help co-ops to expand into other areas of the economy to make Greater Manchester the most co-operative region in the UK.”

I may have a bone to pick with Mayor Burnham, because I hope that east London might beat him to that title. Nevertheless, the Mayor accepted those recommendations by the commission, so that work is now under way to ensure that co-ops play an important role in the north-west.

Ownership hubs have been set up in several combined authorities across the UK. They began initially in South Yorkshire under the former Mayor, my hon. Friend the Member for Barnsley Central (Dan Jarvis). The ownership hub model has also been launched in Greater London. The aim of that is to promote both co-operative and employee-owned business growth. In South Yorkshire, the collaborative partnership works with the combined local authorities in the region and the South Yorkshire Growth Hub, where businesses can get support to set up or indeed convert their organisation to worker or employee ownership.

The South Yorkshire Growth Hub has experienced and knowledgeable advisers, who can offer support on setting up new businesses, upskilling workers and gaining access to finance. In London and Greater London, the London Growth Hub, under Mayor Sadiq Khan, will be tasked with increasing the growth of co-ops across different London boroughs, replicating—we hope—the successes of the South Yorkshire Growth Hub. It is significant that the hubs provide knowledge and expertise, because sometimes one of the barriers to setting up a co-op is that, seen from the outside, there are some seemingly complex legal models that have to be established, but they are not so complex if a business has a helping hand to guide it through.

Moving to the west midlands, Birmingham City Council has taken a community economic development planning approach, which engages residents, community groups, local businesses and voluntary sector organisations as part of its economic development projects. For example, a community building has been built on a disused playing field next to Edgbaston reservoir, and the land is now used for growing food. Again, that project is very much rooted in the local community.

In January, Liverpool City Council adopted a community-led housing policy, which aims to unlock vacant land and properties for community groups to convert into new homes. The policy was devised in collaboration with local community groups. These groups are already forming land trusts and co-ops, and they will work alongside council officers and community-led housing advisers to build new houses.

In my own constituency, I know the vital importance of housing, the problem of shortage, the overcrowding situation and how little empowerment there is for many residents, whether they are private renters or council tenants. Co-ops are a really great way to give people control and power over their own homes.

I have mentioned east London. As the MP for Hackney South and Shoreditch, of course I will focus on what my own borough is doing, under the excellent leadership of Mayor Philip Glanville, a Labour and Co-op mayor who was directly elected by the residents of Hackney.

In setting its budget for the current financial year of 2023-24, Hackney set aside £70,000 to support the creation of co-ops, in order to deliver services where there is market failure and no business case for in-sourcing. Hackney has a good track record of in-sourcing many services, including our street sweeping and cleansing, but where there is not the right case—perhaps because the service is too small—Mayor Glanville wants to consider alternatives. At the moment, these include social care, affordable childcare and community energy. Where Hackney cannot in-source services and there are existing co-ops, it wants to look to local businesses, social enterprises and co-ops first, working across departments to ensure that contracts are designed to make it possible for co-ops to tender.

I should perhaps flag to the Minister one of the challenges. Sometimes in local government it is difficult for co-ops to meet the required threshold, because of some of the restrictions set at different times, in different eras and by different Governments, including different central Governments, which perhaps do not understand the benefit of a local community co-op.

[Jim Shannon (Strangford) (DUP)]

First, I commend the hon. Lady for securing this debate. I have apologised to her already and I apologise now to you, Mr Dowd, as I am afraid I cannot stay for the whole debate, because I have another meeting to attend at 3 pm.

I also commend the hon. Lady for her leadership of the Public Accounts Committee. We are all very glad that she is there, because we believe that she gives the leadership and direction that that Committee needs. Does she agree that in these times of financial crisis, a mutually beneficial co-operative has never been more important? I know that from my own constituency. A local social supermarket in Newtownards, in my constituency of Strangford, operates almost like a co-operative—it is not an actual co-operative, but almost operates like one—in order to provide food at a lower price. This is something that our local council also needs to sow into, in order to facilitate and encourage people. If a lower price can be obtained by that shop in my constituency, the saving can be passed on to those who need it most. Clearly, that is what we need to do. It is for that reason that this debate is so important and I once more congratulate the hon. Lady on securing it.

[Dame Meg Hillier]

I thank the hon. Gentleman for his kind comments and for that valid point. One of the many advantages of local co-ops is that they and the benefits are owned by the local population, and the profit is redistributed to the very people who helped to generate it. Although I have talked about small-scale co-ops, of course they can be larger; there are many such co-operative businesses up and down the country. I am focusing on how councils can facilitate co-operatives in their own areas, so by definition I am talking about the local.

Mayor Philip Glanville has established, among the elected councillors, a member champion for inclusive business, social enterprise and co-operatives. The role is held by Councillor Sam Pallis, who does an excellent job in promoting these issues. There have been some success stories in Hackney. Hackney Co-operative Developments, which has been established for a long time, is being supported by the council through the provision of properties at sub-market rent, capital investment in those properties—that can be hard for small co-ops—and targeted funding for business support and outreach projects so that that fantastic project can spread its expertise to other organisations in Hackney and help to build the co-op sector. Hackney Co-operative Developments understands the technical and legal aspects of setting up a co-op better than anyone, as do similar organisations in other areas up and down the country, so it is right that the council supports it in that way. That relates to the ask that I will have for the Minister in a moment.

Hackney has also set up a community energy fund. A few years ago, it established Hackney Light and Power, which is the energy services arm of the council, and that local company launched a £300,000 community energy fund last year, which aims to support innovative community-led energy projects that benefit Hackney. That amazing programme ensures that Hackney generates its own energy for local use. That reduces energy costs for many consumers; long may it succeed. We must see locally generated energy for local use as a way to tackle the challenge of climate change.

The first round of funding from that £300,000 community energy fund provided funding for solar panels on the Hackney Empire, our fantastic local theatre. I say “local”—it is nationally renowned, but we are proud to call it our local theatre in Hackney. I should declare, as an interest, that I am a friend of the Hackney Empire—that will hardly surprise Members—and a regular visitor to its fantastic pantomime. The fund also provided solar panels for the Mildmay club in north Hackney, in the constituency of my right hon. Friend the Member for Hackney North and Stoke Newington (Ms Abbott), and Parkwood Primary School. Those panels provide enough electricity for one third of those properties’ energy use, equivalent to 35 homes. If the first round of funding can deliver that, it has real potential. The Minister is very welcome to visit if that would be helpful.

We need a real understanding in Government about what co-ops can deliver. Many years ago, when Labour was last in government—it does seem like a long time ago—I was looking to mutualise the then Forensic Science Service, and I asked for guidance from the Government. I was a Minister in the Home Office, which was, perhaps understandably, not an expert on co-operatives and mutual ownership, so it commissioned advice elsewhere in Whitehall. To my horror, what landed on my desk was a document about John Lewis. I feel no horror about John Lewis, I have to say, but its model of employee ownership was not what we were looking at. It was almost as if there was no real understanding of what mutualism was. Unfortunately, I was unable to get that mutual off the ground for various reasons—many co-ops face a challenge with capital funding—but that drove home to me the fact that we need a central hub in Government that can point people to advice about co-operatives, and I have been banging that drum ever since, in all these years in opposition.

The Treasury, the Department for Levelling Up, Housing and Communities, the Department for Business and Trade, and other Departments such as the Department for Environment, Food and Rural Affairs, would benefit from that understanding. We need a hub that is open to Departments so that when advice on alternative models is needed, co-ops are considered. The Minister making the decision must have full knowledge of the possibilities and possible challenges, and co-ops must be considered as part of the solution.

Short-term Holiday Lets: Planning

Jim Shannon Excerpts

Tuesday 23rd May 2023 Westminster Hall

[Jim Shannon (Strangford) (DUP)]

It is a pleasure to speak in this debate. I thank the hon. Member for Torbay (Kevin Foster) for setting the scene. He and I are good friends; we are always in debates together, and it is a pleasure to be in a debate that he has initiated. I acknowledge the massive difference in planning and procedure between Northern Ireland and his constituency, but the need is the same and the case must therefore be made for UK-wide reform.

I say this unashamedly: I am privileged to represent the most beautiful constituency in the United Kingdom, Strangford. No matter what other hon. Members may believe, that is an indisputable fact. With that knowledge comes a belief in what could be achieved if we utilise that potential through tourism. Tourism is a key economic driver for my constituency and we try to promote it wherever we can. We have everything you would need for a short or long break: matchless views, superior dining and coffee houses, outdoor activities, beautiful spas—the possibilities are endless. Indeed, I know that the Minister was suitably impressed when she and her husband visited last year for just a taste of what we have to offer. I know she cannot wait to get back once again and enjoy the wonderful times that she had there. I am not sure if the weather was good for her, but hopefully it was.

One of the results of covid and the escalating price of travel has been that people have remembered the beauty of staying and holidaying within their own nation. With that has come an increasing need for accommodation: many people are eschewing traditional hotels and choosing Airbnb lets where they can take pets and children and enjoy the experience of different surroundings, but put their children to bed and watch a film together in the evening, or leave the dog in the house and go for a walk.

It has become clear that demand for short-term lets far outstrips what is available. That is why I support the ability to build small lets in their beautiful country gardens, so that they can gain additional income and bring tourism to the area. I will give an example. I know of one such request, on the beautiful Portaferry Road in Newtownards, which is the most incredible stretch of road in the entire area. It is an area of outstanding natural beauty. I am privileged to live on the edge of Strangford lough, which is one of the UK’s largest sea loughs and one of the most important wildlife habitats anywhere in Europe. Strangford lough—one of only three marine nature reserves in the UK—is a water wildlife paradise. If people are lucky, they may spot seals, basking sharks or short-beaked common dolphins there—that is some of the marine biology we have there.

It is little wonder that one canny local realised that there was untapped potential for short-stay lets at Strangford lough. He drew up the plans, he made the business case and he put in the application. The planners turned down the application, saying that it was not a permitted development, and gave no thought to the tourism potential, which would have allowed the council to meet its tourism aims. I am thankful that good sense prevailed, and a wonderful councillor on the planning committee, Alderman Stephen McIlveen, was able to skilfully highlight the wrong decision, using the planning policy. The decision was overturned, and we now have a lovely Airbnb, which is in high demand, bringing money to the local economy. We need a UK-wide change of policy, so that weight must be given in decision making to the needs of the tourism industry. It should not simply be that permission can be given if the officer agrees.

[Richard Foord]

Is the hon. Member familiar with the concept of the digital nomad, and would he want them in his constituency? The digital nomad is somebody who has a first home, but can work elsewhere, in a second home. Unlike the traditional nomad, who moves seasonally, those people often have more than one home. Would he agree that local authorities ought to have regard to the concept of the digital nomad?

[Jim Shannon]

I agree. The thrust of the debate so far has been that councils should have a say on what happens. We all understand the need to protect beautiful areas in our countryside, but protecting does not mean abandoning. Tasteful, small accommodation can breathe life into villages and coffee shops; that must be taken into consideration, but in Northern Ireland, it is not the standard position, so there are some things we must change.

Although not every application enhances tourism potential, it is time for the House to make it clear that there should at least be consideration of the legislative aspect of this issue. I ask the Minister to ensure that devolved bodies throughout the United Kingdom follow that trajectory. We have the capacity to make the most of international city breaks and local holidays, but to achieve that we must sow into our facilities. A change to the law is necessary to do that. I know that the Minister understands the issues and will reply to everyone’s requests in a sympathetic way, thus getting the ball rolling in the House today.