Oral Answers to Questions

Lee Rowley Excerpts

Monday 5th June 2023 Commons Chamber

[Janet Daby (Lewisham East) (Lab)]

17. What recent progress he has made on cladding and non-cladding remediation for residential buildings.

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

The Government intend to enact reforms to improve the buildings insurance market by banning commissions, increasing the transparency of information and preventing unjustified legal costs when premiums are challenged. We are also pressing the insurance industry to launch its scheme. In 95% of all identified unsafe high-rise aluminium composite material buildings, and in 400 buildings supported by the building safety fund, remediation works have been either completed or started.

[Sir Stephen Timms]

I have raised before in the House the predicament of residents of Barrier Point, in my constituency, whose insurance premiums have risen sixfold. The Secretary of State told me in January that such insurers were

“squarely in our gun sights”.—[Official Report, 30 January 2023; Vol. 727, c. 55.]

Can the Minister offer any prospect of imminent relief to my constituents, some of whom face a demand of an additional £6,000 this year?

[Lee Rowley]

I completely appreciate the point the right hon. Gentleman makes. That is why I have met with the Association of British Insurers multiple times in the last few weeks alone. I am hopeful that the scheme it hopes to bring forward with the insurance industry will come forward in the next few weeks. Later today, I am meeting the British Insurance Brokers’ Association again to talk about how it will reduce commissions, in advance of the work that the Secretary of State has already announced to ban such commissions.

[Janet Daby]

In my constituency, there are two main housing developments where remediation work has been promised to fix unsafe cladding on buildings. I hope that the Minister is fully aware that living in unsafe buildings has meant individuals and families have had to put their lives on hold. Leaseholders cannot sell, move or staircase their homes, and some have had to put starting a family on hold. Will the Minister acknowledge that that is unacceptable? Will he agree to implement a timeframe so that work is prioritised by housing providers and building firms?

[Lee Rowley]

I am grateful to the hon. Lady for highlighting the challenges her constituents are facing. I appreciate the point that she is making about challenges. That is why we are trying to push forward with remediation as quickly as we are able to do so. Since the announcement by the big six lenders in December, taking effect in January, it should now be possible for more owners and leaseholders in properties like these to be able to buy, sell or remortgage. Early data received by the Department indicates that while the market will take some time to become more functional, it is moving in the right direction.

[Sir Robert Neill (Bromley and Chislehurst) (Con)]

Will the Minister recognise that this is not just a question of ridiculously escalating premiums? There is also the problem experienced by my constituents in Northpoint in Bromley, which I have mentioned in the House before. The previous insurer, Aviva, which had insured the building up until the Grenfell fire, is refusing to quote at all. That withdrawal from the market is putting many people under real pressure. The cladding has already been removed from the building, the risk has gone and there is a zero claims record, but a major firm like Aviva will not even quote. There is a market failure here. Just as we did with the EWS1 fire safety certificates, when there was a withdrawal of professional negligence insurance, please can we intervene and make sure that people at least come into the market properly?

[Lee Rowley]

My hon. Friend makes an important point. That is exactly why we are trying to encourage and work with the ABI and the large insurers, to bring forward this new scheme that should help with the kind of issues that he has highlighted. I hope we will have more news on that in the coming weeks. If not, I would be very keen to talk to my hon. Friend and his local residents about how we can move forward.

[Chris Elmore (Ogmore) (Lab)]

3. What assessment he has made of the effectiveness of the process of delivering funds for successful levelling-up fund bids.

--- Later in debate ---

[Ian Byrne (Liverpool, West Derby) (Lab)]

4. What steps he is taking to help local authorities with budgetary pressures caused by inflation.

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

I am not sure that I can respond with quite so much brevity, Mr Speaker!

In the most recent financial settlement, the Government provided billions more in taxpayer subsidy to support councils, including funds to mitigate inflation. Councils are always under a duty and a responsibility to improve and transform services and make them more efficient, but the Government continue to support them when we are able to do so.

[Ian Byrne]

A recent report from our Select Committee highlights the fact that local authorities’ revenue funding from central Government has been reduced dramatically since austerity began in 2010, and notes that levelling-up funds generally do not replace grant funding because they are capital, not revenue. Can the Minister be honest and admit that the latest local government finance settlement will entrench and widen already huge regional inequalities, leaving the levelling-up agenda in tatters?

[Lee Rowley]

Absolutely not. [Laughter.]

[Theresa Villiers (Chipping Barnet) (Con)]

I am sure that many Members of the House will share my experience that, on the doorstep, an issue that comes up almost more than anything else is potholes. Barnet Council is clearly failing in its duty to fill them in. Does the Minister have any advice for our failing local council on how it can improve its record on filling in potholes?

[Lee Rowley]

My right hon. Friend is absolutely right to say that one of the core responsibilities of local councils is to do the basics, and one of the basics is potholes. That is why the Chancellor recently announced additional money for local councils to ensure that they are filled, and it is for local councils to translate that into reality on the streets.

[Mr Speaker]

I call the shadow Minister.

[Sarah Owen (Luton North) (Lab)]

Under a Government who created a cost of living crisis that has sent inflation levels soaring, there are now 4.2 million children living in poverty, and 70% of them are in working households. One third of children in the west midlands and 200,000 children in the north-east live below the poverty line. Shockingly, a quarter of all children growing up under the Scottish National party in Scotland now live in poverty. What support can local authorities expect in order to deal with this increase in child poverty, and is the Department’s decision to award levelling-up funding to only one in four deprived areas a factor in the heartbreaking levels of child poverty we see in Tory Britain today?

[Lee Rowley]

The Government offer a huge amount of support to the most vulnerable in our society. We have seen that all the way through covid and through the inflation and energy issues, and we will continue to do it through the welfare system as a whole. The best way out of poverty, where it is possible, is to work, and that is why this Government are ensuring that work pays, work matters and work achieves.

[David Duguid (Banff and Buchan) (Con)]

5. What steps he is taking to level up all parts of the UK.

--- Later in debate ---

[Clive Efford (Eltham) (Lab)]

Residents in Master Gunner Place in my constituency are still paying for a waking watch, despite a new fire alarm being introduced. These properties were built with major defects by Countryside Properties, and they are now owned by Samnas. I want to know what the Minister is going to do to take these people to task, because they are costing my constituents a lot of money, which should have been resolved before.

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

The hon. Gentleman will have seen that we have recently reopened the waking watch fund, but on the specific issue he has raised, I would be happy to meet him, because I also want to understand why this has not been removed as a result of the money spent.