Leasehold Reform

Jo Platt Excerpts

Thursday 11th July 2019 Commons Chamber

[Jo Platt (Leigh) (Lab/Co-op)]

First, I should declare an interest as I, too, am currently the owner of a leasehold property. As 66% of property transactions in Leigh now come with a leasehold, anyone would be hard-pushed to find someone in Leigh who is not affected.

I thank my hon. Friend the Member for Sheffield South East (Mr Betts) for securing this important debate. I also thank my hon. Friend the Member for Feltham and Heston (Seema Malhotra) for her work on this issue. I know that she has constituents here in the Public Gallery. I thank the all-party group on leasehold and commonhold reform and the campaigners of the National Leasehold Campaign, in particular Katie Kendrick, for their work in highlighting the scandal and for providing support to constituents all over the country. Their work has brought together the real injustices facing people who own their own home.

I represent a constituency in the north-west and the leasehold scandal is hitting our residents in particular. In 2017, 31% of house transactions in the north-west were leasehold properties, compared with a national average of 3%. In Leigh alone, more than half of all property transactions came with a leasehold. To understand the anger and sense of injustice that the residents of our towns feel, we must look at the history of how we have got to this situation today.

In our proud post-industrial towns, such as the ones that I represent, properties were often utilised by the once-dominant landowners and manufacturing industries as accommodation for workers with peppercorn rents. As our industries declined and our factories closed, those leaseholds were bought up by companies that now dominate the local property market—a feudal system of old transferred into a feudal system of the modern age. As we have heard, those freeholders set into contracts new clauses that double ground rents every few years. A peppercorn payment has turned into a sizeable rent that is hitting families across our constituencies.

This real and growing crisis has led to desperate families getting in touch with me to say that they are struggling to afford those payments, on top of their mortgage and bills. This is the important aspect of this situation: there is a real human cost. A recent survey carried out by the NLC and SOS Silence of Suicide found that spiralling bills and charges are taking their toll on people’s health and wellbeing. And why? It is all down to the fact that a loophole has been exploited and innocent families have been caught up in it based purely on where they have been brought up or where they choose to live. The scandal is also having an understandable impact on our property prices and restricting the prosperity of our towns.

Earlier this week, the shadow Housing Minister, my hon. Friend the Member for Croydon Central (Sarah Jones), pointed out that the Government have made 60 leasehold announcements since they came to power nine years ago, but have taken no action to clamp down on this injustice. I am glad that the Government recognise the crisis we in the north-west in particular are facing, but their proposals simply do not go far enough. Their proposals offer nothing to help the hundreds of families in Leigh who are already stuck in these contracts, they do nothing to help with their spiralling ground rents and they do nothing to enable homeowners to escape their leasehold trap.

That is why I fully welcome and support Labour’s announcement this week that we will not only ban new leaseholds, but cap existing ground rents at £140 per year in Leigh and enable homeowners to buy their freehold at no more than 1% of their house cost. Those are the type of bold interventions that we need if we are ever going to be serious about fixing our broken housing market. From my weekly surgeries, I know how urgently we need leasehold reform. We need a radical shake-up to get our housing market working again.

Shared Prosperity Fund

Jo Platt Excerpts

Tuesday 14th May 2019 Westminster Hall

[Jo Platt (Leigh) (Lab/Co-op)]

I congratulate my hon. Friend the Member for Barnsley Central (Dan Jarvis) on securing this important debate. It comes at a crucial time, as we leave the European Union, but we must realise that the existing fundamental imbalance of investment, decision making and power across the country is a major reason that we saw the Brexit vote. For too long, Westminster has held the purse strings, made the decisions and held power over our communities. Is it any wonder that northern towns such as the one I represent feel isolated from the economic progress of our cities and isolated from the decisions that impact their daily lives?

For the constituents of Leigh, such isolation is not only metaphorical, but literal. My town has no rail connectivity. Decisions made in this place mean that my constituents struggle to access the employment, educational and social opportunities of our nearby cities, while outside investment is effectively blocked from flowing into our towns. My constituents in Leigh are left believing that, after nine years of Tory austerity, the country does not work for them. That is why it is important that the shared prosperity fund not only replaces vital EU funding, but restores their faith in our communities, gives them a voice, a stake in society and empowers them to transform local economies for the 21st-century economy.

At the heart of the debate is not just a matter of replacing funding, but instilling a sense of agency in our communities. We must therefore adopt a place-based approach, putting our constituents at the heart of transforming their areas and not leaving them to feel that they are receiving a pity handout. Gone should be the days when a selected elite decide what is best for our local area. We must instead empower and entrust those whom the decisions impact the most.

One great example of how the current system is failing can be seen in the digital and cyber worlds. The Centre for Towns has found that 55% of digital jobs are in the south-east of England, with just 12% in the north. It is a tragedy. The only way we will reunite our country after years of austerity and Brexit-induced division is by empowering, entrusting and investing in our communities. We in this place must let local areas take back control to make the decisions that transform their towns while restoring their damaged trust and confidence in a society that should work for them.

Oral Answers to Questions

Jo Platt Excerpts

Monday 8th April 2019 Commons Chamber

[Mrs Wheeler]

My hon. Friend is a true champion for her area. The statistics in Cornwall show how this matter can be dealt with successfully when partners come together—a reduction of 40% in rough sleeping in one year alone is a true testament to the reason why we need to tackle this. We will not let it rest.

[Jo Platt (Leigh) (Lab/Co-op)]

10. What recent assessment he has made of the adequacy of local authority funding in Leigh constituency.

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

The local government finance settlement for 2019-20 confirmed a real-terms increase in resources available to local authorities. I am pleased to say that the hon. Lady’s own local council, Wigan, will see its core spending power increase by £4.6 million in this financial year.

[Jo Platt]

Under this Government, Wigan Council has seen £160 million taken from its budget—that is £160 million less to spend every single year. With children’s services as a top immediate pressure, how do the Government intend to respond to my local authority when it has to deliver services to some of our most vulnerable children without the funding that is so desperately needed?

[Rishi Sunak]

The recent Budget provided more than £400 million for children’s services but, beyond money, it is important to note that it is quality of leadership that makes the difference in providing for vulnerable children. The hon. Lady’s own council recently won a prestigious award for being the best council in the country, and its leader remarked that

“we are still able to give residents first class care”.

Local Government Funding

Jo Platt Excerpts

Tuesday 15th January 2019 Westminster Hall

[Jo Platt (Leigh) (Lab/Co-op)]

It is a pleasure to serve under your chairmanship, Mr Walker. I declare an interest as I am a vice-president of the Local Government Association. I congratulate my hon. Friend the Member for Birmingham, Edgbaston (Preet Kaur Gill) on securing the debate. I have the enormous pleasure of co-chairing Labour Friends of Local Government with my hon. Friend. I hope that the group will use opportunities such as this debate to shed light on the funding realities that councils face.

As a former councillor, I know at first hand the enormous pressures that councils face. I became a councillor in 2012, just as the austerity measures were about to be implemented. In 2014, I was appointed to the cabinet with the children and young people portfolio. It was not an easy time. Owing to the cuts, some difficult decisions had to be made. One included Sure Start. I was adamant that we were not going to lose our much-valued Labour policy, but I knew that changes were needed to ensure its survival. Those difficult decisions are made every day by councils, but they do not often receive the same publicity and attention as the decisions we make here, despite the enormous consequences for our constituents’ lives.

The coalition Government of 2010 knew that. They knew that if they heaped responsibility on to local authorities without the funding to deliver, councils would take the blame for cuts. There have been budget cuts of £160 million to the budget of our local council alone. That means that every year, £160 million has been taken. It would have provided services that we rely on. The £160 million has been found from libraries, roads, bin collections, social care and children’s services. Those are the stark decisions that councils are forced to make, and they all have far-reaching consequences. To put the challenge into perspective, by the end of the year, local authorities will have lost 60p in every pound from the funding that Government used to provide.

There is no light at the end of the tunnel. The Government want councils to be more and more self-sufficient, which means there will be less in grants from Government. Under the Tory proposals, areas less able to raise council revenue will have less to spend. Areas with the highest demands and council pressures will not have the budgets to cope. It is likely that in areas with the least pressures there will be council tax reductions. The Government tell us to trust them on the funding formula that we have yet to see, but with their record how can we possibly trust them?

Such pressing challenges are the reason why my hon. Friend the Member for Birmingham, Edgbaston and I established the Labour friends of local government group last year. It brings together councillors, MPs and stakeholders to call out the Government for their recklessness, and so that we can support one another and share ideas on how hard-working Labour councils can continue to deliver quality services despite Tory austerity. Most of all, we came together with one united message: hard-working Labour councils are not to blame for austerity and we have a duty as Labour MPs to make that crystal clear.

Councils are critical to our constituents’ social mobility, and to boosting young people’s life chances, but the Government’s contempt for local government, which is shown in their underfunding and under-resourcing, is restricting the economic and social transformation that town economies such as Leigh desperately need. I welcome the debate as an opportunity to highlight the damage caused from Westminster by Tory handling of local government, and the enormous challenges that the next few years will present to councils. We desperately need a fair funding settlement for councils that will not just give them the bare essentials to cope, but will utilise our incredible councils to get the best out of their areas.

[Several hon. Members rose—]

Shale Gas Development

Jo Platt Excerpts

Wednesday 31st October 2018 Westminster Hall

[Jo Platt (Leigh) (Lab/Co-op)]

I represent a coalfield constituency in Lancashire, and fracking is unfortunately a particular and common concern for residents. Six licences have been imposed on the people of Leigh, who have serious and legitimate concerns about the impact on their environment. Despite the sentiments we often hear from the Government, we have reason to be concerned. Earlier this year, we heard from Peter Styles, a former Government adviser, who found that fracking in former coalmining areas increases the probability of earthquakes on faults that have already been subject to movement through mining.

Given that vulnerability, I hope that the Minister will be able in his reply to detail the steps he is taking to protect our community and that he will accept the real anxiety that fracking has caused in our region, which has been left feeling singled out by the Government’s fracking regime. Ultimately, it is totally unacceptable to impose such a chaotic process on communities without giving them a say.

Local Authority Financial Sustainability: NAO Report

Jo Platt Excerpts

Tuesday 20th March 2018 Westminster Hall

[Jo Platt (Leigh) (Lab/Co-op)]

I thank my hon. Friend the Member for Weaver Vale (Mike Amesbury) for securing this vital debate. Local authorities across the country are at a tipping point. Eight years of Tory austerity have decimated our local councils, with my local authority of Wigan facing an additional 30% cut to its budget, which will mean £160 million taken out of its budget by 2020.

Prior to coming to the House, I was a local councillor. I saw at first hand the impact of the cuts inflicted to services, particularly on the most vulnerable. It is really important to note that cuts to local authorities are not just cuts to their services—the cuts to support services are just as barbaric. For example, in my area there has been a 20% rise in domestic violence, which is little wonder when local registered charities also lose their funding due to the financial pressures on local authorities via commissioning streams. The same can be said for homelessness, in which we have seen a huge surge nationally. Local cuts to early intervention and prevention grants have only exacerbated the problem. I urge the Minister to take that into consideration when she next thinks about the causes of homelessness.

Councils should have the resources to provide emergency accommodation and council housing to those most in need and to offer the support to transform people’s lives. However, the Government have time and again shifted the responsibility on to local authorities while dramatically cutting their budgets. Quite simply, our local councils are unable to cope any further with the increased responsibility placed on them by central Government without the means to deliver.

Without the resources to deliver, where do councils turn? As my hon. Friend the Member for Kingston upon Hull West and Hessle (Emma Hardy) mentioned, they turn to their reserves. However, reserves are not pots of money that councils sit on for fun, as they are often characterised by the Government. Local authorities rely on these reserves to transform their services, as has been the case in my local authority. They are also called on in emergencies to ensure that councils remain operational.

[Emma Hardy]

My hon. Friend is absolutely right about reserves. In 2007, Hull was hit by terrible flooding, which caused a lot of damage. One thing reserves are used for is for emergencies like that—to deal with unforeseen disasters. What will happen if we have a similar flood situation again and the council has spent all its reserves?

[Jo Platt]

I completely agree. We could all mention many instances where the reserves have come into play.

The scale of cuts faced by councils has meant that many have been forced to eat into the reserves to provide the everyday essential services that we all rely on. That is not only unsustainable, but reckless—we cannot play Catch-22 with the fate of our vital local councils. Doing so has led to the frankly astonishing reality of the National Audit Office warning that 10% of councils will exhaust their reserves within three years.

For me, there is another elephant in the room: Brexit. As the Brexit process continues, local authorities are still unaware of the impact that leaving the EU will have on their finances—business rates retention, for example. They also have to deal with the loss of EU structural funding: both areas on which the Government have not given sufficient assurances.

Our councils face the greatest crisis in living memory: an assault on their funding while also adopting ever more responsibility. Put simply, they have been passed the buck without the bucks. The Government’s unsustainable position must come to an end. If they are serious about delivering on housing, about social mobility and about giving powers to local communities, they need to provide the funding that our councils deserve.