Draft Building Safety (Leaseholder Protections) (Information etc.) (England) Regulations 2022

Debate between Kate Green and Marcus Jones

Monday 18th July 2022 General Committees

[Mr Jones]

I thank the hon. Member for Greenwich and Woolwich and other members of the Committee, who in many ways seem content to allow the regulations to pass. I will start by answering some of the questions raised by the hon. Member and the hon. Member for Stretford and Urmston. The hon. Lady mentioned landlords linked to the developer and the apportionment of costs. The regulations clearly set out a formula for how those costs will be apportioned. In cases where landlords or developers are no longer trading, as I am sure the hon. Member knows, there is a levy scheme where developers pay into that levy, so we can support those people who end up—through no fault of their own—in a situation where the people responsible are not likely to pay for the remediation.

The hon. Lady asked a question about enfranchised buildings and leaseholders, which I will come to when I respond to the hon. Member for Greenwich and Woolwich. The hon. Lady also mentioned management companies. The type of arrangements she was thinking about were those with non-resident owned management companies that are subject to tripartite leases and arrangements with the landlord and leaseholders. It is important and urgent to prepare these two sets of regulations in the way that we have, so that they enable the protections to take place. We are confident that the way the regulations have been drafted will be effective in ensuring that the qualifying leaseholders gets the right outcome for the type of arrangements the hon. Member has mentioned. We are absolutely clear that all types of management company should be covered by the regulations, and we will closely monitor the progress of cases. If it becomes apparent that changes are necessary, we will come back to Parliament with further proposals.

[Kate Green]

Perhaps I could write to the Minister to set out the specific circumstances that pertain to my constituency. The regulations were helpfully accompanied by some worked-through examples, so perhaps I could add another one that is being faced by my constituents at the moment and the Minister could respond in detail as to how they would be affected?

[Mr Jones]

I would very much welcome that correspondence. I would be more than happy to receive the example that the hon. Lady is talking about and to come back to her with a response.

The hon. Member for Greenwich and Woolwich mentioned that the protections came into force on 28 June, which was two months after the Act received Royal Assent. The regulations, along with the Building Safety (Leaseholder Protections) (England) Regulations 2022, which were laid on 28 June, will provide the detail to operationalise the new leaseholder protection regime. Landlords are now only able to pass on costs where the Building Safety Act permits them to do so, and that includes pursuing unpaid bills for historical safety remediation issued prior to commencement. As of 28 June, landlords must not pursue bills for historical safety remediation that are not in accordance with the Act. As the hon. Gentleman said, doing so would be illegal and I will come back to him on his point about the operation of that.

Leaseholders should seek to complete the leaseholder deed of certificate that is outlined in the regulations as soon as possible, so they can demonstrate to their landlord whether they qualify for the protections.

In an enfranchised building, the freehold is owned by some or all of the leaseholders. Capping leaseholder liability in a fully enfranchised or commonhold building would not have the effect of reducing or limiting leaseholders’ liability as leaseholders are the freeholder. The other complication is that often not all the leaseholders own part of the freehold, which is why my right hon. Friend the Member for Pudsey (Stuart Andrew) committed to bringing forward a consultation and a call for evidence on this important issue, which will be released shortly. It is important that we try to help clarify matters for people in that position.

On the report by the Joint Committee on Statutory Instruments, the Committee will know that the underlying statutory provisions for leaseholder protections were added to what is now the Building Safety Act 2022 about half way through its passage through Parliament, in recognition of the unfair and intolerable position that many leaseholders were in. They faced bills, as has been acknowledged across the House, running into thousands of pounds to fix problems that they had no part in creating. In many senses, as the hon. Member for Greenwich and Woolwich said, those people were put into significant financial distress as a result.

The leaseholder sections were devised and drafted at pace, drawing on expertise in a number of fields, including proposals put forward by Members of both Houses. I record my thanks for their time and engagement on that. The Act received Royal Assent at the end of April and the protections came into force two months later. It was therefore both important and urgent to prepare the two sets of regulations that will enable the protections to take practical effect. The urgency meant that we were not in a position to share the regulations in draft with the Committee, as is the usual practice. That meant, however, that the Committee and its staff had limited time to get to grips with both the regulations and the underlying primary legislation in what is in many ways a groundbreaking piece of law.

None the less, we engaged in two rounds of correspondence with the Joint Committee, culminating in the memorandum and response set out in Appendix 1 to the Committee’s report. Some Members will have read that report in full—I am sure the hon. Gentleman will have—and we have seen the detail of the Committee’s concern and the Government’s response.

To summarise, the Joint Committee raised a number of technical and legal issues with the draft instrument in respect of its drafting and of its vires. The Government have considered those issues carefully, including by working closely with the first tier tribunal about the way in which it will deal with appeals. The Government are satisfied that, notwithstanding the Committee’s concerns, there are no issues with the regulations that will prevent the process from operating successfully.

As I have described, the Government consider it imperative that the regulations come into force before the summer recess to alleviate the issues facing leaseholders in defective blocks. We will of course monitor closely the progress of cases. If it becomes apparent that changes are necessary, we will come back to Parliament with proposals. Therefore, as I said before, I ask colleagues to show some forbearance. I am glad that that seems to be the case, but that hon. Members will still feed in their particular cases.

On the final point made by the hon. Member for Greenwich and Woolwich on the memorandum from the Law Officers about confirmation of the retrospection on the 28th due date, if he will forgive me, I will take that away and come back to him with a fuller response. On that basis, and given that we have considered the draft regulations, I hope that the Committee will approve them.

Question put and agreed to.

Supported Housing

Debate between Kate Green and Marcus Jones

Thursday 21st December 2017 Commons Chamber

[Mr Jones]

My hon. Friend is a strong campaigner for the people of Stafford and Staffordshire. I would certainly be glad to meet him and his local YMCA and Women’s Aid to talk about short-term accommodation. I have already had meetings with several Members from all parties to discuss this issue, and I am happy to do so again.

[Kate Green (Stretford and Urmston) (Lab)]

I share the concerns of my right hon. Friend the Member for Wentworth and Dearne (John Healey) about moving away from a demand-led system for people in need of short-term supported housing. Will the Minister say what will happen if a local authority has no allocation left to meet the needs of vulnerable individuals? Will central Government underwrite the costs that might be faced in those circumstances?

[Mr Jones]

This policy is about getting the system right, and we have until 2020 to do that. We need to make sure that our assessment of needs in particular areas is right. Areas will have to set out a clear plan to say what the future need in their area will be. We will work with them on that because we are absolutely clear that we want people to have access to the various types of short-term supported accommodation.

Oral Answers to Questions

Debate between Kate Green and Marcus Jones

Monday 28th November 2016 Commons Chamber

[Kate Green (Stretford and Urmston) (Lab)]

Does the Minister accept that the report shows that although this was purportedly designed around the payment by results model, it was no such thing? Local authorities simply delivered the number of families for which there was funding. What do the Government intend to learn from the failure to design an effective contract? How will they ensure that in future taxpayers’ money is well spent?

[Mr Jones]

As I said in my previous answer, we are confident that a significant number of families have benefited from the programme, but the new programme will be subject to a more robust evaluation, particularly of its cost-effectiveness.

Amendment of the Law

Debate between Kate Green and Marcus Jones

Wednesday 23rd March 2011 Commons Chamber

[Mr Jones]

I am not giving way, I am afraid, because certain Members have taken far too long in the debate, thereby stifling others.

I am delighted that the personal tax allowance has been increased to more than £8,000 this coming year. It is vital that we free people from the shackles of tax, particularly those on lower incomes. It is excellent that 1.1 million people will be lifted out of income tax altogether—[Interruption.] The hon. Member for Stretford and Urmston (Kate Green) does not understand. The previous Government shackled people to income tax. They increased the minimum wage way above inflation year on year, but they did not increase the personal allowance, which meant that more and more people were sucked into income tax.

[Kate Green]

Will the hon. Gentleman give way?

[Mr Jones]

No. I am not giving way to the hon. Lady.

Moving on, I welcome the help that we are giving first-time buyers, although I would ask those on the Front Bench to consider a couple of issues. Can we build the properties that we need to sustain the scheme quickly enough? Would it be better to extend the scheme to older properties, as well as new-build properties? First-time buyers are the lifeblood of the property market and of any chain. I acknowledge that the policy will do a lot of good for the building industry, but we also need to put in place measures to ensure that the property market can sustain itself. Currently it is under intense pressure. Expanding the policy to cover the property market as a whole will do a lot of good and improve the situation for the industries that rely on it.

I make a plea for the Chancellor to look at stamp duty land tax in his next couple of Budgets, because it is quite punitive in terms of the slab rate, particularly up at the £250,000 threshold. Over this Parliament, if not during the next one, we need to look at putting in place changes to stamp duty land tax that result in more marginal rates, just as we have different levels of income tax.

I also make a plea for anything that is done in the property market to be implemented as quickly as is practically possible. Back in 2008, the Labour Government introduced a stamp duty holiday, but if I recall rightly, they suggested in the press that they were doing so about six or eight weeks before it was actually implemented. That had a dramatic and devastating effect on the property market and those involved in it during that interim period. Therefore, we need to ensure that we are expeditious in implementing policies.

This has been a great Budget for business, within the constraints that the Government face. I would like to mention fuel again. Many small and medium-sized hauliers in my constituency are struggling to cope with increases in the price of fuel. In the main, they have to pay for fuel at the pump, but they are not paid by those for whom they work for 60 to 90 days. I am sure that they will welcome the Chancellor’s announcement today.

Regulation is one of the biggest banes of business, particularly small and medium-sized businesses, and costs them £80 billion a year, so they will welcome a reduction in red tape and regulation. They will also welcome the fact that the Prime Minister is looking to reduce regulation in the European Union to make it more competitive as a whole, which is vital. I hope that Government Members will continue to press the Chancellor and the Prime Minister to ensure that those plans bear fruit, because they are important to freeing up our businesses and allowing them to expand and employ more people.

I want to mention the beer and pub industry. I am slightly disappointed that in today’s Budget we have not sought to do anything about the beer duty escalator introduced by the previous Government. Since 2008, beer duty has increased by 26%. Unfortunately, we have not looked to soften that blow today. However, I hope that those on the Front Bench will listen to what I am saying and look to soften the blow for both the brewing industry and the pub industry. We have hundreds of thousands of pubs closing every year. Our great British pub is under pressure, and we should look to support it. I hope those on the Front Bench will take that on board.

Finally, I want to mention the advances that we are making on skills, which are vital to ensuring that our work force can sustain the jobs that we will hopefully help to create in the economy with the additional measures that the Chancellor has mentioned this afternoon. It is fantastic that we will have another 250,000 apprenticeships over the next four years. I am heartened by that, because young people have for so long been cast adrift, and this will help to bring them into employment and training in a sustainable way, and also in a way that will perhaps enable them to garner the knowledge to create their own businesses one day and employ others, which is what we have seen over many years.

I welcome the university training colleges, and I am sure that the large industrial companies in the west midlands will welcome that approach. I hope that it will help people to acquire the skills to fill what those companies are describing at the moment as a void. Companies such as Jaguar Land Rover want to expand greatly, and they need a supply of skills to sustain any such expansion. They need skills from local people in the west midlands. We do not want to bring in people from other countries to fill that void.

Given the constraints that the Government are having to work under—it was far from a golden legacy that we inherited from Labour—this is a positive Budget with good intentions for business and for creating jobs with substance. It also contains measures to bring back to this country the prosperity that has been badly needed for many years.