Commonhold and Leasehold Reform
Lindsay Hoyle Excerpts(1 week, 4 days ago)
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Mr Speaker
Before we come to the statement on commonhold and leasehold reform, I once again note, for the second day in a row, my disappointment about briefings to the media before important announcements are brought to the House. As the Public Administration and Constitutional Affairs Committee recently stated,
“making the most important statements in the first instance to Parliament means doing so before they are made to the media and not at the first available opportunity thereafter”.
Those are the Government’s rules in their own ministerial code, and they must do better. I am defending Back Benchers on both sides of the House. They have been elected here to hear it. Hearing it on Sky News and the BBC is not the way we do business. If there are issues of market sensitivity, or indeed any other sensitivities, Ministers are welcome to seek advice through my office or the Clerks on how the best balance of these sensitivities might legitimate the need to update me before the media. We have to work together on this. The message is clear. I am not in charge of the code; the Prime Minister is. He needs to take the code more seriously.
The Minister for Housing and Planning (Matthew Pennycook)
My Department always strives to ensure that the House is updated at the earliest possible opportunity. I note and appreciate fully the points you have made, Mr Speaker, and will ensure that they are passed on to my ministerial colleagues.
With your permission, Mr Speaker, I would like to make a statement on the Government’s draft Commonhold and Leasehold Reform Bill. We made a clear and unambiguous commitment in our manifesto to act where previous Governments had failed and finally bring the feudal leasehold system to an end. We did so on the basis of a firm conviction that it is only by extinguishing fully the historical iniquities on which the present leasehold system rests that we can ensure that the dream of home ownership is made real for millions of households across the country.
Today, the Government have published and laid the Commonhold and Leasehold Reform Bill in draft for pre-legislative scrutiny by the Housing, Communities and Local Government Select Committee. This ambitious piece of legislation will modernise property law, deliver a fair and efficient modern housing market and, most importantly, transform the experience of home ownership for millions of leaseholders across the country.
The draft Bill includes the following key provisions: a new legal framework for commonhold to reform and reinvigorate this radical improvement on leasehold ownership; a statutory restriction on new leasehold flats to ensure that, in future, commonhold is the default tenure; a new process for converting to commonhold from leasehold to make conversion easier, so that more homeowners can enjoy this improved form of ownership; the abolition of leasehold forfeiture and its replacement with a fairer system of lease enforcement; the repeal of draconian powers relating to rent charges on freehold estates; and the capping of ground rent for older leases at £250 a year, changing to a peppercorn after 40 years.
Let me expand briefly on each of these core measures, beginning with commonhold. Commonhold is a modern home ownership structure that is widely used around the world. It is not merely an alternative to leasehold ownership, but a radical improvement on it. At the heart of the commonhold model is a simple principle: the people who should own buildings and who should exercise control over their management, shared facilities and related costs are not third-party landlords, but the people who live in the flats within them and who have a direct stake in their upkeep. Commonhold ensure that the interests of homeowners are preserved in perpetuity. It transfers decision making to them so that homeowners have a greater say over how their home is managed and the bills they pay, as well as the flexibility to respond to the changing needs of their building and its residents.
For a variety of reasons, commonhold failed to establish itself following its introduction in 2004. As a result, there are fewer than 20 commonhold developments in existence today and the 2002 legal framework is hopelessly outdated. The provisions in the draft Bill build on the publication of our commonhold White Paper in March last year, which confirmed the detail of our commonhold reform programme, and responded to the Law Commission’s thorough and expert review of commonhold law. The result is legislation that will reinvigorate commonhold through the introduction of a comprehensive new legal framework that will enable commonhold to be used in the widest possible range of settings.
To ensure that commonhold becomes the default tenure, as our manifesto promised, the draft Bill also includes provisions to ban the use of leasehold for new flats. Once enacted, this will ensure that, other than in exceptional circumstances, all flats are provided as commonhold. The provisions will work in tandem with the ban on the use of leasehold for new houses contained in the Leasehold and Freehold Reform Act 2024.
Alongside the publication of the draft Bill today, we are publishing a “Moving to commonhold” consultation, seeking input from industry and consumers on precisely how we implement the new ban. The feedback we receive will ensure that we can proceed with a smooth transition to commonhold for new developments, while at the same time protecting the supply of new homes and determining whether there is a case for any justified exemptions.
The draft Bill also includes measures to make it easier for existing leaseholders to convert their buildings to commonhold. The existing law already sets out a process for conversion, but it is one that requires consent from everyone with an interest in the block. This sets an unacceptably high bar and means that commonhold is not achievable if even a single unit owner, lender or the existing freeholder objects. The draft Bill will introduce a new process for conversion, one that brings conversion into line with wider enfranchisement processes and will make conversion possible if at least 50% of qualifying leaseholders agree.
The previous Government’s Leasehold and Freehold Reform Act does provide leaseholders with important rights and protections, but on the Labour Benches we have always maintained that it was a distinctly unambitious piece of legislation that left untouched serious problems, including the disproportionate and draconian threat of forfeiture as a means of ensuring compliance with a lease agreement. For too long, outdated forfeiture laws have allowed landlords to threaten people with losing their home and hard-earned equity over small debts of as little as £350, or any amount if left unpaid for three years. The draft Bill contains provisions to abolish forfeiture and replace it with a modern, proportionate lease enforcement system that addresses breaches fairly, with appropriate safeguards and judicial oversight.
Mr Speaker, you will know that before Christmas we launched two comprehensive consultations, seeking views on how best to implement new consumer protections for homeowners on freehold estates and the ways in which we might reduce the prevalence of privately managed estates over the coming years. To further enhance protections for homeowners on freehold estates, the draft Bill will also repeal enforcement powers that apply to estate rent charges on them. These powers, often difficult to find in deeds and poorly understood by buyers, can lead to rent charge owners taking possession of, or granting a lease over, a freehold home as a result of small sums outstanding. That is not just unfair; it creates real barriers to home ownership and property sales. We will remove these wholly disproportionate and outdated remedies for enforcing rent charges by repealing sections 121 and 122 of the Law of Property Act 1925, including estate rent charges.
The Government are acutely aware that the cost of living remains a pressing concern for leaseholders across England and Wales, and that those who remain subject to unfair and unreasonable practices need urgent relief. That is why last summer we consulted jointly with the Welsh Government on strengthening leaseholder protections over charges and services. That consultation included proposals to reform the section 20 major works procedure, increase transparency over service charges, and enhance access to redress through the relevant provisions in the Act. We thank all those who responded to the consultation and will set out details of how we intend to implement the measures in question as soon as possible. However, the Government are determined to go further to alleviate the cost of living pressures facing leaseholders. In our manifesto, we promised to tackle unregulated and unaffordable ground rent charges. The draft Bill honours that commitment.
As the House will know, historically, ground rents, which often entail no service being provided whatsoever, were of low or nominal value. However, over the past two decades a practice has developed of freeholders including high and escalating ground rent clauses in leases. Such clauses are causing leaseholders considerable financial strain and some are unable to sell or remortgage their properties as a result. The draft Bill will cap ground rents at £250 a year initially, changing to a peppercorn after 40 years. This will provide immediate financial relief for leaseholders with high and harmful ground rents, while the longer-term change to a peppercorn cap will eliminate the two-tier market between new and older leases, delivering a fair and efficient modern housing market.
The reforms will necessarily have effects on existing contractual arrangements and investments—something that the Government do not undertake lightly. However, the Government have a clear mandate to tackle unregulated and unaffordable ground rent charges, and our approach has been designed to strike a fair balance between the interests of leaseholders, freeholders and investors, maintaining the reputation of the UK as a safe place to invest.
Finally, as I have made clear to the House on previous occasions, the last Government’s Leasehold and Freehold Reform Act contains a number of specific but serious flaws that prevent certain provisions from operating as intended and that need to be rectified via primary legislation. While not included in the draft Bill, our intention is to rectify those flaws in primary legislation. Among other things, that will allow us to commence the 2024 Act’s enfranchisement provisions, making it cheaper and easier for leaseholders to extend their lease or buy their freehold.
To conclude, the publication of the draft Bill today is an historic moment. It marks the beginning of the end for the feudal leasehold system that has tainted the dream of home ownership for so many. I look forward to working closely with the Select Committee as it performs its invaluable role of scrutinising carefully this draft legislation, and I encourage hon. Members across the House to engage with it and the accompanying consultation on banning new leasehold flats. I commend the statement to the House.
Matthew Pennycook
I note the initial positive tone from the shadow Minister in welcoming the draft Bill. I am slightly reluctant, on what is usually a matter of cross-party consensus, to be too critical of him, but it is a bit rich to criticise this Government, given that the previous Government cherry-picked reform in a way that was at odds with the Law Commission’s recommendation to treat all three of its reports as a holistic package, and left us with an Act that we will have to make a series of changes through primary legislation to fix so that we can implement the remaining provisions. I will, therefore, not take any strictures on ambition from the shadow Minister when it comes to leasehold reform.
I say plainly to the shadow Minister that we have switched on a number of the 2024 Act’s provisions already. On coming into office, we immediately enacted a series of provisions on rent charge arrears, building safety legal costs, and the work of professional insolvency practitioners. On 31 October we enacted further building safety measures; on 31 January we switched on the two-year qualifying exemptions for leaseholders; in March we switched on the right-to-manage provisions; and we are working at pace to take forward the rest of the significant package of secondary legislation that was required. However, some parts of those provisions require us to make fixes to the Bill—sadly, something that the previous Government left us with.
The shadow Minister mentioned housing supply, but again, I am loath to take lessons from a party that torpedoed housing supply in the last Parliament by making a series of anti-supply changes to the national planning policy framework, including the abolition of mandatory housing targets. The shadow Minister’s criticism could be taken a little more seriously if his colleagues did not come to me week in, week out, objecting to housing applications, telling me how our reforms will make it more permissive in their local constituencies.
We are getting on and taking forward the reforms to the leasehold system that are already on the statute book. Through this Bill, we are bringing forward the wider reforms necessary to bring that system to an end, which will be to the lasting benefit of millions of leaseholders across the country.
Mr Speaker
I call the Chair of the Housing, Communities and Local Government Committee.
Florence Eshalomi (Vauxhall and Camberwell Green) (Lab/Co-op)
I pay tribute to the Minister for his hard work in getting us to this stage. There were a few occasions when he saw me and went the other way, because he knew what I was going to ask him, but we would not be here without his tireless work. I also highlight what the Minister said about this being a cross-party issue, and pay tribute to the former Member for Worthing West, Sir Peter Bottomley, for his work chairing the all-party parliamentary group on leasehold and commonhold reform.
For far too long, many leaseholders up and down the country have been caught up in this medieval system, leaving them with soaring rents and unreasonable fees—people who bought their homes in good faith and have seen a nightmare transpire. It is right that the Government are finally bringing in a change that will help millions of people up and down the country. The Minister has agreed to support the Committee’s inquiry with the necessary evidence. Can he also confirm that he will support us by providing the Government’s response to the 2023 ground rent consultation in the coming days, so that we can get a better understanding on how that underpins the Government’s decision to cap ground rents at £250?
There were some things that we were expecting to see in the draft Bill—yes, I have read it—that are not there, including the Law Commission’s unimplemented recommendations on enfranchisement and the right to manage, and Lord Best’s recommendations on managing agents. Lord Best has called for a regulator with teeth for proper enforcement; can the Minister clarify what work the Government are doing to ensure that this will be in the final version of the Bill, or if it will be addressed elsewhere? The Minister also outlined a rough timeline for implementation. Can we get more clarity on when we expect to see that, so that those leaseholders around the country who have been waiting for a long time will finally get the help that they desperately need?
Matthew Pennycook
I thank my hon. Friend, the Chair of the Housing, Communities and Local Government Committee, for those fair and pertinent questions. I will answer each of them in turn. We published a whole series of documents at 7 am, including a copy of the draft Bill. That also included a policy document setting out our rationale for the £250 per year ground rent cap, but we will make available to the Committee other information, evidence and documentation as needed and at the earliest possible opportunity.
As for the other recommendations made in the three reports from the Law Commission, the Leasehold and Freehold Reform Act 2024 implemented a significant number of the Law Commission’s enfranchisement recommendations, a small number of its right-to-manage recommendations, and none of its recommendations on commonhold. We cannot do everything in this Bill; hon. Members who have had a chance to look will have seen that is has a large number of clauses already. But we are committed to enacting those remaining recommendations relating to leasehold enfranchisement and other things over the course of the Parliament.
On implementation, different provisions will come into effect at different times. For example, we aim to switch on the rent charge provisions I described soon after Royal Assent. Other measures will require secondary legislation. We expect the ground rent cap to be in place in 2028. We will work with the Committee to ensure that it can do the fullest and most robust job possible when it comes to giving the Bill the enhanced scrutiny it deserves.
Gideon Amos (Taunton and Wellington) (LD)
The Liberal Democrats welcome the introduction of a commonhold framework, the abolition of leasehold for newbuild flats, and the end of forfeiture—all these are positive steps in the right direction. Our manifesto has been calling for an end to unfair residential leaseholds since Lloyd George called it “blackmail” in his 1909 People’s Budget. But while I welcome those measures, we should be going much further.
The Housing Secretary this morning called ground rents “money for nothing” and a “scam”, so why should leaseholders continue to pay £250 for nothing? The Government’s proposals need to go further. For freeholders trapped in the fleece-hold of unscrupulous property management companies, the blackmail of the great property rip-off is set to continue. There is nothing that will cap those charges in these proposals. Since residential leaseholds will still be with us for some time, millions of leaseholders need better protection from landlord costs being passed on to them. They need the capping of excessive service charges, like £400 to change a lightbulb and £4,000 to mow the grass. Help is also needed for those trapped in unsafe and defective buildings, hundreds of thousands of which are excluded from the building safety regime.
Will the Minister take forward Liberal Democrat proposals and immediately abolish residential leasehold charges, set ground rents at a peppercorn now, and regulate property and estate-management companies as recommended in the Best report, capping unreasonable service and estate management charges?
Several hon. Members rose—
Mr Speaker
Order. Can I gently say that I want to get everybody in, but I cannot do so if people are going to make longer contributions? I know there is a 40-year clause in the legislation hon. Members are discussing—I don’t want us to hit that today!
Matthew Pennycook
It is clear that this draft Bill cannot do absolutely everything, and it is the Government’s considered opinion that we do not need provisions on service charges in this Bill—not least because, for the reasons I have set out, we do not intend to implement a service charge cap—and that the provisions in the 2024 Act will do the job. Help is on the way, though, and I want to ensure that those provisions are switched on at the earliest possible opportunity.
Local Government Reorganisation
Lindsay Hoyle Excerpts(2 weeks, 2 days ago)
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Mr Speaker
Order. I have a lot of respect for the right hon. Member for Newark (Robert Jenrick), but I do not expect him to walk in and start mouthing off the moment he sits down. I am sure that he would like to catch my eye, and that is not the best way to do so.
Steve Reed
Indeed. It was the right hon. Member, the self-styled new sheriff in town—now, of course, a member of Reform UK Ltd—who made many of these decisions.
To those who say we have cancelled all the elections: we have not. To those who say it is all Labour councils: it is not. I have asked, I have listened and I have acted —no messing about, no playing politics, just getting on with the job of making local government work better for local people.
Chinese Embassy
Lindsay Hoyle Excerpts(3 weeks, 4 days ago)
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Urgent Questions are proposed each morning by backbench MPs, and up to two may be selected each day by the Speaker. Chosen Urgent Questions are announced 30 minutes before Parliament sits each day.
Each Urgent Question requires a Government Minister to give a response on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
The Minister for Housing and Planning (Matthew Pennycook)
This question relates to the proposals for a new Chinese embassy at Royal Mint Court. It is a decision to be taken by Planning Ministers, independent of the rest of Government. As I have said before in the House, this Government are committed to the probity of the planning process at all levels, to ensure robust and evidence-based decision making. Planning Ministers must take decisions following a quasi-judicial process, meaning that they must take decisions fairly, based on evidence and planning rules.
As the case is currently before the Department for consideration, and due to the statutory role of Ministers in the planning process, it would be entirely inappropriate for me to comment further on this live case. That said, I fully understand Members’ interest in the case, so I will briefly set out the process that the case has followed to date. A public inquiry into the applications was held by an independent planning inspector between 11 and 19 February 2025. The Department received the inspector’s report into the applications on 10 June that year. On 6 August 2025, a reference-back letter was sent to parties seeking further information, specifically in respect of the redacted plans and some issues raised by the Home Office and the Foreign, Commonwealth and Development Office. That was recirculated for further comment on 22 August, and again on 16 October, 2 December, and 17 December. It was recirculated for information on 6 January 2026. Referring back to parties is routine when further information is required.
As you know, Mr Speaker, the Government do not provide a running commentary on planning casework decisions, and it would be particularly inappropriate to make any comment on material that has been received. The reference-back material will be available on request when the decision is issued. The timetable has been varied to allow for full consideration of the applications, given the detailed nature of the representations provided, and the need to give parties sufficient opportunity to respond. A final decision will now be made on or before 20 January 2026. Such variation to the timetable is routine when additional time is needed for determination. Members can be assured—I am afraid I will be required to state the following ad nauseam, Mr Speaker—that Ministers will take all material planning considerations into account when the final decision is made, and Ministers will inform the House of the decision accordingly.
Mr Speaker
In fairness, you brought me into this by saying that I would know about planning—absolutely—but I did not choose for you to be the Minister who answered this. I would have thought it would have been someone from the Home Office, and the Minister for Security. I call Alicia Kearns.
Alicia Kearns
Thank you, Mr Speaker. It is very disappointing to get a technocratic history lesson rather than an answer to the meaningful question.
Two hundred and eight secret rooms and a hidden chamber, just 1 metre from cables serving the City of London and the British people—that is what the unredacted plans tell us the Chinese Communist party has planned for its new embassy if the Government give it the go-ahead. Indeed, we now know that it plans to demolish the wall between the cables and the embassy—cables on which our economy is dependent; cables carrying millions of British people’s emails and financial data, and access that would give the Chinese Communist party a launchpad for economic warfare against our nation.
The Home Office and the Foreign Office say that security concerns have been “addressed”, so I put this to the Minister: had any Minister seen the unredacted plans before The Telegraph uncovered them? If not, why not? Was Parliament misled when we were told that all documents were publicly available? Is it true that in December a briefing was given to our Five Eyes partners on these risks? Does the Minister really have no concerns at all over plans to install heavy ventilation equipment parallel to those cables? What is that for? If the Government are as shocked as we are today, have Ministers already called in the Chinese ambassador to explain those secret rooms? If not, why not? The embassy would create a daily headache for our security services. What confidence can we have that the CCP’s technological capabilities can be contained for a decade, let alone 10? I have consistently asked the Government to require the Chinese to pay for any re-routing of cables if they are to give this go-ahead, so will the Government commit to that today?
We understand that the Prime Minister is planning to visit Beijing this month. Is it true that the embassy will be approved this week? That the Prime Minister plans to reward the Communist party, which is holding a British national hostage and torturing him in confinement, and which put spies at the heart of our democracy, is bad enough, but to turn up with a gift in hand, begging for handouts, beggars belief. Labour promised a new relationship with China, yet UK goods exports are down 23%. Surrendering our security for Chinese trade was always a bad policy, but surrendering our security while exports plummet is, frankly, insanity. The Government can claim today they had no idea about the secret rooms, and we will take them at their word, but they cannot now say that they have no power to protect us. We must protect our economy, protect the British people, and deny the Chinese Communist party its embassy.
Matthew Pennycook
I thank my hon. Friend for her questions, and I note and appreciate her concerns. We need a consistent position on China, which cannot be boiled down to one word. We recognise that China poses a series of threats to UK national security, and we challenge those robustly. China also presents opportunities to the UK, as the world’s second largest economy and the UK’s third largest trading partner. We will therefore continue to develop a consistent and pragmatic approach to economic engagement, without compromising our national security. On Hong Kong in particular we will not tolerate any attempts by foreign Governments to coerce, intimidate, harass or harm their critics overseas, especially in the UK.
On the matter before us, which is the particular case in question, as I have stressed before—I am afraid I will have to do so repeatedly—no decision has been made. I cannot comment on any aspects of the case, which is a live case for Planning Ministers to determine. All material considerations will be taken into account when making a decision, but I am afraid I cannot comment on any specific national security concerns.
Calum Miller (Bicester and Woodstock) (LD)
The redacted plans for the Chinese super-embassy provide new reasons to reject this application. Will the Minister confirm whether the Government had access before today to the unredacted plans showing the proximity of basements to critical communications cabling? Will he, and other Ministers, ensure that the intelligence agencies update their risk assessments before a final decision is taken?
On 16 December, the Government told the House that an urgent review would be launched into foreign financial interference in UK politics, including by China. Will the Minister now agree to pause any decision on the super-embassy until the Rycroft review has reported? The new super-embassy would also condemn Hongkongers living in Britain to more surveillance, more intimidation, and more bounty hunting. On Saturday, hundreds of Hongkongers are expected to join a protest outside the proposed super-embassy site. Will the Minister, or a colleague, meet the protesters on Saturday outside the embassy, to listen to their concerns first hand?
Matthew Pennycook
I repeat what I said specifically about transnational repression. We will not tolerate any attempts by foreign Governments to coerce, intimidate, harass or harm their critics overseas, especially in the UK. The decision that is before Planning Ministers will be taken independent of the rest of Government. Planning Ministers must take decisions following a quasi-judicial process, meaning that they must make decisions fairly, based on evidence and planning laws. I stress again that all material considerations will be taken into account when reaching a decision.
Sir Edward Leigh (Gainsborough) (Con)
This is the national Parliament and it deserves answers. I have already asked this question to the Minister for Security, the hon. Member for Barnsley North (Dan Jarvis), and I got no answer at all. It may seem to be a subsidiary point, but it is important. On 14 January 2025, the Secretary of State wrote to the Chinese demanding an answer about whether there will be a perimeter wall so that the public can access the buried Cistercian monastery. With typical arrogance, the Chinese have not even replied. Why is that important? Because if Ministers insisted on what they wrote about last January, there would have to be an entirely new planning permission. The site is near the Tower of London, where so many prisoners of conscience died over the centuries, so—who knows?—maybe the prayers of medieval monks might finally stop this aberration.
Oral Answers to Questions
Lindsay Hoyle Excerpts(3 weeks, 5 days ago)
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Steve Reed
I am more than happy to add my congratulations to those of my hon. Friend to Wandsworth council on ensuring that it is increasing the supply of affordable housing around Battersea power station, where we desperately need more. There is a fantastic development there, but on the Wandsworth side there were inadequate levels of social housing under the previous Conservative Administration.
Gareth Bacon (Orpington) (Con)
At the outset of the Secretary of State’s answer to my hon. Friend the Member for Weald of Kent (Katie Lam), one could be forgiven for thinking that we had an entirely new Mayor of London. In fact, this year we celebrate, or perhaps more appropriately commiserate, a decade of Sadiq Khan’s tenure as London Mayor. In that decade, in the most prosperous city in Europe, Sadiq Khan has overseen not just stalling but consistently falling rates of private construction starts. Recent figures from Molior show that London began building just 3,248 new homes in the first nine months of 2025, leaving it on track to start building fewer than 5,000 in total in 2025.
Incredibly, the Government’s response has been to cut their floundering mayor’s housing targets by 11%, but skyrocket targets in outer London authorities, where the vast majority of greenbelt land is. That includes an increase of almost 400% compared with previously approved London planning targets in my local council area of Bromley. Will the Secretary of State please explain why people living in places such as Bromley and our local greenbelt must pay the price for Sadiq Khan’s decade of failure and uselessness?
Steve Reed
My hon. Friend describes a situation in Blackpool that I am sure Members across the House will recognise from many other constituencies, with the desperate need for more social and affordable housing. He will be pleased to be reminded that the new social and affordable homes programme of £39 billion, which will deliver the biggest increase in social and affordable housing in this country for a generation, opens for bids next month. I hope that his local authority will be keen to make applications to it.
Paul Holmes (Hamble Valley) (Con)
With a new year often come new year’s resolutions. Will the Secretary of State make a new year’s resolution to accept the truth that the Government will not meet their 1.5 million housing target, which he set out? Will he confirm that he still thinks his job is on the line if he does not achieve that? Huge focus has been placed on rural areas with no infrastructure, but cities—often Labour cities—have been left off the hook, so will he commit to changing the formula to make it fairer and, more importantly, more deliverable?
Matthew Pennycook
In general terms, anyone considering extending their lease or acquiring their freehold should obviously consider seeking specialist advice from a solicitor or surveyor, but I will ensure that the right hon. Gentleman receives a prompt answer to his question as to whether any of the reforms we are taking forward will give some redress to his constituent.
Florence Eshalomi (Vauxhall and Camberwell Green) (Lab/Co-op)
I thank the Minister for his answer. I know that he has been taking a lot of time to debate and look at the issue of leasehold, and he can see the cross-party concern on behalf of many constituents up and down the country on this big issue, as well as the support for tackling it. We on the Select Committee are ready to help him by making sure that the legislation is right, fit and proper. I just want to tease out a further answer from the Minister. Can he confirm for the House that he is still on track to ensure that we end the issue of leasehold and commonhold by the end of this Parliament?
Matthew Pennycook
The hon. Gentleman has written to me about that issue and he has, if I may politely say, generated a huge number of questions on it. We have met about it on one occasion, I think, and I am more than happy to have another conversation with him to try to get to the root of his concerns.
David Simmonds (Ruislip, Northwood and Pinner) (Con)
Leaseholders, like renters and prospective homeowners, have been made big promises by this Government. What assessment has the Minister made of the impact of botched local government reorganisation, cuts to the budgets of two thirds of England’s local authorities, delays to elections and the wholesale abolition of housing and planning authorities in England’s shires on the delivery of those promises? This is just another promise that the Government are not going to deliver, is it not?
Matthew Pennycook
Forgive me—I do not know whether the shadow Minister has come in on the wrong question—but I cannot see how local government reorganisation will, in any shape or form, influence in any way our ambitious leasehold and commonhold reform agenda.
Gideon Amos (Taunton and Wellington) (LD)
Fully 5 million leaseholders were plunged into the dark before Christmas and thousands report feeling angry and abandoned. Why, then, are the Government choosing to delay their ending of the feudal leasehold system? Will they go further and follow the calls from Lib Dems and others to regulate property agents and to cap extortionate service charges?
Several hon. Members rose—
Mr Speaker
Do you all represent Banbury? I am trying to find out why they all think they are in Banbury. I thought it had only one MP.
Sean Woodcock
Nearly 11,000 homes in Cherwell district have been granted planning permission but remain unbuilt. This causes understandable frustration for local residents and the thousands of people in housing need. Will the Minister set out what action the Government are taking to improve build-out so that much-needed homes are built and delivered?
Calum Miller
The hon. Member for Banbury (Sean Woodcock) referred to the wider Cherwell district council area.
Calum Miller
Mine is the neighbouring constituency, and many of my residents are placed in social housing in Banbury town.
Calum Miller
Thank you very much, Mr Speaker, and I am grateful to my constituency neighbour for raising this important matter. I wonder whether the Minister can reassure my constituents, many of whom are struggling to find social housing and many of whom end up in Banbury, having come from my constituency. Will the social and affordable homes programme pay due attention to the challenges of providing social housing in rural settings, so that those who wish to remain within their communities are able to do so and do not put extra demands on towns such as Banbury?
Matthew Pennycook
We will of course keep the implementation of the Act under continual review, but, as I have said, it allows tenants to challenge unreasonable rent increases at the first-tier tribunal, which will make a judgment on whether the increases are fair and meet that market-rate definition. We have, however, made it clear that the Government do not support the introduction of rent controls, including rent stabilisation measures, for the reasons that we debated at some length during the passage of the Bill.
Sir Edward Leigh (Gainsborough) (Con)
We all know that rent inflation, like all inflation, is caused by over-demand and lack of supply, and we can agree on the need to address problems by building more houses and tackling immigration, but does the Minister agree that the more controls and regulations are imposed on landlords, particularly small landlords, the more they will get out of the rented sector altogether, causing less supply and rent inflation which will hit vulnerable people?
Perran Moon
Meur ras, Mr Speaker. With your good grace, I would like to take this opportunity to thank members of the emergency services, who responded so courageously across Cornwall during and in the wake of one of the worst ever storms to hit the duchy. I also thank the 600,000 people of Cornwall, who heeded pre-storm advice and kept fatalities, mercifully, to a minimum. The loss of one life is too many, but it could have been far worse. Over 1,000 trees are down, and hundreds of thousands of people were plunged into darkness, with no power. I hope that Ministers will create the appropriate forum to discuss the lessons learned from Storm Goretti.
The Secretary of State has confirmed that, because of our unique status, Cornwall will be a single strategic authority for the purposes of devolution. The greatest threat facing the constituents of Camborne, Redruth and Hayle today is the lack of social and truly affordable homes, which is compounded by the 14,000 second homes and 25,000 Airbnbs, leading to an exodus of our young people and a chronic lack of key workers. Given these factors—
Mr Speaker
Order. I gave a lot of leeway at the beginning of the question. I think the Minister will have got the message already.
Matthew Pennycook
I think the thrust of my hon. Friend’s question was about what arrangements can be put in place for Cornwall so that it can better deliver housing and regenerate areas that have been identified by the council. As he will know, strategic place partnerships are reserved for mayoral strategic authorities that bring together more than one council into a combined authority. That said, and not least as a result of hearing representations from my hon. Friends who represent Cornish constituencies, I encourage Homes England to deepen its partnership with Cornwall council and to explore a memorandum of understanding or similar partnership agreement to support its ambitious housing and regeneration plans.
Peter Prinsley
I am concerned about the villages in my most beautiful constituency of Bury St Edmunds and Stowmarket; there, people tell me that they are increasingly concerned about the lack of affordable housing in rural communities. What steps is the Minister taking to increase the supply of affordable housing for local people in rural villages through reforms to the planning system, and how will those reforms support the rejuvenation and long-term sustainability of our villages?
Mr Speaker
Order. Can I just remind everyone that this is topicals? You are meant to set an example, Peter—come on.
Steve Reed
Our planning changes will support affordable rural housing by giving rural authorities greater flexibility to require affordable housing on smaller sites. Our £39 billion social and affordable homes programme, which opens to bids next month, is available to rural authorities as well.
Sir James Cleverly (Braintree) (Con)
I am sure we all agree that we cannot have sustainable communities if we do not have sustainable high streets. Would the Secretary of State agree that a fourfold increase in business rates over this Parliament does not make high-street businesses sustainable?
Alison McGovern
I am proud to say that this settlement reconnects council funding with deprivation, and I have already explained the detail of that to the House. We will ensure that all councils are heard during this consultation period, and I look forward to working with my hon. Friend as one of my good friends and colleagues from our city region, which is of course the best one in the country, as you know, Mr Speaker.
Mr Speaker
Definitely, after Lancashire. I call Max Wilkinson to ask the final question.
Electoral Resilience
Lindsay Hoyle Excerpts(1 month, 3 weeks ago)
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The Secretary of State for Housing, Communities and Local Government (Steve Reed)
Thank you very much, Mr Speaker, for granting the statement. When we each enter this Chamber, we carry on one shoulder the duty to represent our constituents and, on the other, the responsibility to protect this democracy. The case of the former MEP Nathan Gill has revealed the threat that our democracy faces today, and I know it has caused deep concern right across the House. On Friday 21 November 2025, Mr Gill was sentenced to 10 and a half years in prison for accepting bribes linked to the Russian state and attempting to advance that state’s twisted interests. It is the longest sentence handed down to a politician in such a case in our nation’s recent history.
While we must commend the work of the police and the Crown Prosecution Service, who successfully prosecuted this case, it is right that we now take a step back and look at how we can protect our democracy against such appalling crimes. Let me be clear about what the crime was. An elected politician took bribes to parrot the lies of a hostile state responsible for the death of Dawn Sturgess, a British citizen, on British soil. He took the side of those responsible for invading a sovereign European state, and he was prosecuted while Putin’s military targeted the civilian men, women and children of Ukraine. At the time, he was a Member of the European Parliament, supposedly representing the British people, and he went on to become a senior leader of a UK political party. We must learn the lessons, so that this can never happen again.
Following discussions with ministerial colleagues, I have today ordered an independent review into foreign financial interference in UK politics. It will be led by the former permanent secretary, Philip Rycroft, who will report both to me as Secretary of State responsible for elections and to the Minister for Security, as the chair of the defending democracy taskforce. The facts are clear: a British politician took bribes to further the interests of the Russian regime—a regime that forcefully deported vulnerable Ukrainian children and killed a British citizen on British soil using a deadly nerve agent. This conduct is a stain on our democracy. The independent review will work to remove that stain.
The purpose of the review is to provide an in-depth assessment of the current financial rules and safeguards, and to make recommendations. I will deposit a full copy of the terms of reference in the House of Commons Library. I have asked Philip Rycroft to report back by the end of March, when I will return to this House to set out his findings and the Government’s response. It is right that the review be independent of Government and independent of any political party. It is also important that I make it clear to the House that investigating crimes and examining broader allegations of wrongdoing remain the responsibility of the Electoral Commission and the police, not of this review. Individual Members should continue to refer to the National Protective Security Authority guidance, and to speak to the parliamentary security authorities if they have any specific concerns. The findings of the independent review will build on the Government’s election strategy and on the counter political interference and espionage action plan, and will inform the elections and democracy Bill that we will bring forward next year.
We published our strategy for modern and secure elections earlier this year. It will close loopholes that should have been closed long before we entered office. It will strengthen rules on donations, so that only legitimate donors can support legitimate campaigns. It will also clamp down on the free rein that shell companies and unincorporated associations have to make donations without first undergoing proper checks. However, since the strategy was published, events have shown that we need to consider whether our firewall is enough. The independent review will look at that, focusing on: the effectiveness of our broader political finance laws; the checks and balances in political regulations on identifying and mitigating foreign interference; safeguards against illicit funding streams, including cryptocurrencies; the rules governing the constitution and regulation of parties; and the Electoral Commission’s enforcement power. It is right that the review looks at these critical issues in depth, and I stand ready to do whatever is necessary to protect British democracy from foreign and hostile interference.
I mentioned the weight of responsibility that each of in this House should feel. Those who seek to disrupt or attack the foundations of our democracy will never prevail. Britain will always be a democracy, because the people of this country will never have it any other way, and because the choices of the British people will always be the guiding star for our nation. I thank all hon. Members who have come to the Chamber today. I am highlighting the threat of foreign interference because the first responsibility of His Majesty’s Government is to keep our people safe. Our ability to protect this nation and its values is always stronger when this Parliament presents a united front, so I hope that Members from right across the Chamber will offer their support for the independent review. I commend this statement to the House.
Local Elections
Lindsay Hoyle Excerpts(2 months ago)
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Urgent Questions are proposed each morning by backbench MPs, and up to two may be selected each day by the Speaker. Chosen Urgent Questions are announced 30 minutes before Parliament sits each day.
Each Urgent Question requires a Government Minister to give a response on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
Miatta Fahnbulleh
It is really important that we distinguish between two things. We have been absolutely consistent that local council elections are happening in 2026. We are cracking on with it and getting ready for them. I hope the Opposition parties are getting ready for them. We will crack on with them, but these are inaugural mayoral elections that are predicated on us laying a statutory instrument, which we are still to lay, and having the consent of constituent authorities. It is absolutely right that we take stock of where we are and the process that we are asking places to get through, to ensure that at the end of this, we have strong unitary councils that are going through the process of reorganisation, strong strategic authorities, and then a mayor. That is the right and rational decision. There is a clear distinction that I ask the House to make between local council elections, which are scheduled and run to a rhythm, and inaugural mayoral elections, which we have not had before.
On the economics, I will take the hon. Member’s question seriously, even though it was completely ridiculous. We are committed to unlocking areas’ economic potential, so we want to crack ahead with strategic authorities. We want to lay the SI, so that we can get the strategic authorities set up in the timeframe that we have been negotiating and agreeing with places. We are committed to that long-term investment. We will bring forward a proportion of that investment into next year and the year after in the transition, so that places can get on with their investment pipeline and their programme.
At the heart of this—I will keep coming back to this—is a determination on the Government Benches to work with every part of the country to unlock their economic potential. We will do that in good faith. We will do that without playing politics. We will do that in partnership with any leader, no matter which party they belong to. I hope all Members across the House will approach this in the same spirit.
Mr Speaker
I call the Chair of the Housing, Communities and Local Government Committee.
Florence Eshalomi (Vauxhall and Camberwell Green) (Lab/Co-op)
I thank the hon. Member for Ruislip, Northwood and Pinner (David Simmonds) for asking this urgent question and the Minister for responding. Real change is about having mayoral candidates rooted in their community, with an increase in power and funding so that they can deliver that change. There are many issues and challenges across local government, which we all talk about, from special educational needs and disabilities to temporary accommodation and children’s social care. These are big issues that our councillors are dealing with day in, day out.
On 11 November, the Secretary of State told our Select Committee that he did not think local government reorganisation was taking longer than planned and that elections scheduled for May would be going ahead. Less than a month later, the Minister is saying that more time is needed for local government reorganisation in some areas. Given that we are less than six months out, can the Minister reassure the House by confirming that local elections will be going ahead in areas that are seeing reorganisation into a unitary authority and that there will not be any additional delays? This will have an impact on the local people who are working hard on this and may be worried about their jobs, so it is vital that we get clarity from the Government on those areas where unitarisation is carrying on.
Miatta Fahnbulleh
My hon. Friend is right that this about local people and delivering for them. I reassure her that that same concern and commitment is at the heart of everything that we are doing. This is not about shifting the timescales for local government reorganisation; we are proceeding on the same timescales. Authorities across the country are putting together proposals and working to the timescales agreed, and we are committed to holding to that. This is about devolution in a subset of the areas that are going through local government reorganisation. It pertains to the four functional areas that are going through the process simultaneously: in those areas, it is the creation of not just unitary authorities, which is happening in lots of other areas, but strategic authorities and mayors at the same time. It is absolutely right that we take stock and create the space for them to do each of those things in a timeframe that ensures that we have institutions that are strong and work well at the end of the process.
We want to ensure that we are taking forward local government reorganisation at the timescale that we have agreed and talked about with our partners on the ground. We then want to ensure that strategic authorities are created within the timescales that we have talked about and agreed with our partners on the ground. Our proposals set out that we are minded to push the elections of mayors to 2028, so that we can ensure that the unitary authorities, strategic authorities and partnerships are set up and working well, and we then have the inaugural elections. That is a completely rational and sensible place to be, and we will try to do that in lockstep with our partners on the ground.
Zöe Franklin (Guildford) (LD)
Thank you for granting this incredibly important urgent question, Mr Speaker. I am sure colleagues from across the House will have been as shocked as I was to read in the media last night that the four priority strategic areas have had their elections cancelled and postponed until 2028, especially given the reassurances to the House that have been referenced by other hon. Members. Will the Minister explain why, yet again, information about election cancellations has been announced to the press and council chief executives ahead of MPs? Why have the Government chosen to cancel these important elections, which are a fundamental part of our democracy, and then told the media, not Parliament, first?
Will the Minister provide clarity on funding for local authorities, about which I am very concerned? The Government have repeatedly spoken about the importance of mayoral strategic authorities to unlocking investment and funding for authorities. Why are the Government limiting investment funding for the next two years, releasing only one third at a time, when local and upper tier authority leaders have already agreed the share of priorities? If mayors must work collaboratively with other local authority leaders and there is consensus on where investment is needed, why will the Government not release the funding now? Why will they hold that back by delaying the elections? Those authorities need the money now, so will the Government provide reassurance?
Oral Answers to Questions
Lindsay Hoyle Excerpts(2 months, 2 weeks ago)
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Steve Reed
The hon. Gentleman will be aware, as I am and as Shelter is, that we inherited a housing crisis from the previous Government, who failed to build sufficient numbers of social and affordable homes. The £39 billion that this Government are investing over 10 years will give us the biggest increase we have seen in a generation. We know that in the long term we need to go further than that, but I hope he will agree that this is a very positive first step.
Gareth Bacon (Orpington) (Con)
Ministers are claiming that this is a record amount of funding for affordable housing in South Shields and across the rest of England, but why are they consistently refusing to publish a breakdown of the annual funding under their 10-year programme? Is it because the majority of the cash is backloaded into future Parliaments and then exaggerated by inflation? The small-print prospectus says that the homes must be completed by 2039. That is 14 years away. As with Labour’s house building target, is this not just an exercise in hoodwinking people by promising homes that are never going to see the light of day in this Parliament?
Alison McGovern
There we have it: in a question about homelessness, we have a Tory MP getting up and asking how he can say no to more homes. [Interruption.]
David Simmonds (Ruislip, Northwood and Pinner) (Con)
When we look at the statistics, we see that homelessness and rough sleeping are surging under this Government, with London and the south-east hardest hit where social housing delivery has collapsed under the current Mayor of London. Will the Minister commit to lifting the restrictions that this Government have placed on councils’ use of the homelessness reduction grant, and will she commit to funding councils for the growing impact that asylum seekers are having on homelessness pressures, so that Housing First can become more than just a slogan?
Steve Reed
First, I recognise the circumstances that the hon. Member describes, which were left behind by the previous Government’s approach to local government funding. As I said earlier, it remains the Government’s intention that those elections will go ahead as scheduled, unless there is a very strong justification otherwise. That is what will happen.
Steve Reed
Perhaps to the Conservatives the word “consultation” means “diktat issued from the centre”, but to me it means listening carefully to the views of those who will be affected. My intention, and my preference, remains for the elections to go ahead on schedule.
Zöe Franklin (Guildford) (LD)
It has been very interesting to hear the back and forth on this question. It is not just about East Sussex, of course; it is about all the councils up for reorganisation. Councils across the country that are due to have elections next year have received letters asking them whether they would consider cancelling them. Will the Minister set out the content of those letters, and will he stand with the Liberal Democrat by backing our amendments, which seek absolute assurances for councils across the country that are putting money into organising those elections?
Alison McGovern
As I said in an earlier answer, we made a policy statement on the fair funding review consultation last week. In addition, as I have said, the vast majority of upper-tier councils will see their incomes increase in real terms over the next three years. More details will come as we finalise funding arrangements. The Department will work closely with Buckinghamshire and all other councils to ensure that their finances are stabilised after 14 rocky years.
Callum Anderson (Buckingham and Bletchley) (Lab)
Multi-year funding settlements can help councils such as Buckinghamshire to prepare for the future and ensure the continuity of local services, but that approach was not necessarily applied by the last Conservative Government. In the north Buckinghamshire towns and villages that I represent, there is particular pressure on the economic and social infrastructure that meets rural requirements. Will the Minister set out in a bit more detail how the fair funding review will take all that into account so that residents in my community have the services they need?
Several hon. Members rose—
Mr Speaker
Just to help Members, let me explain that this is a Cambridgeshire question so I am calling Cambridgeshire MPs, not anybody else. And here is a good Cambridgeshire MP, Daniel Zeichner.
Daniel Zeichner (Cambridge) (Lab)
The plans for Tempsford vindicate those of us who have long argued for East West Rail and the plans for the area between Cambridge and Oxford, but can my hon. Friend assure me and the House that this Government will be consistent in their support and will not wobble like the previous Government did, which led to a lost decade for these projects?
Alison McGovern
I refer the hon. Lady, who asks a very reasonable question, to the response I gave some moments ago. Collectively, we must leave no stone unturned when it comes to available land for housing, particularly in the capital, where we desperately need more social and affordable homes.
Mr Speaker
I call the Chair of the Housing, Communities and Local Government Committee.
Florence Eshalomi (Vauxhall and Camberwell Green) (Lab/Co-op)
I thank the Minister for outlining those points. The situation is not just isolated to London; many councils are seeing an overspend—still going up —in this really tricky area. Just today, Epsom and Ewell borough council reported an overspend of £500,000, rising to £800,000 by next year. Slough estimates a £22 million overspend on TA; Woking, a £330,000 overspend; Waverley, a £165,000 overspend; and Waltham Forest, a £31 million overspend. That is just on temporary accommodation. This situation is not sustainable financially for councils or taxpayers. What more can the Minister do? Can she speak to Treasury colleagues about the big sticking point: the increase in and freeze on local housing allowance, which is not allowing people to live locally and rent locally?
The Minister for Local Government and Homelessness (Alison McGovern)
I thank the hon. Gentleman—[Interruption.]
Mr Speaker
Order. The Minister is answering the question. Please, Mr Law: you could at least wait until she has finished before entering the Chamber.
Alison McGovern
The Government keep the homelessness code of guidance under regular review, and this will continue once we have published the strategy that I mentioned previously. We will develop further good practice guidance and toolkits to support local government to deliver homelessness services.
Steve Reed
My hon. Friend tempts me to venture into terrain that is properly within the decision-making jurisdiction of the Chancellor of the Exchequer. She only has to wait 48 hours to find out what the Chancellor has decided. I suggest that she ask the Chancellor on Wednesday, rather than me this afternoon.
Mr Speaker
It will all be on Sky News in between. I call the shadow Secretary of State.
Sir James Cleverly (Braintree) (Con)
The Prime Minister, the Chancellor and even the Secretary of State himself have said that they will not touch council tax bands in this Parliament. Does he not recognise that a new tax, or levy, revaluation or surcharge, would be a de facto breach of that commitment, and will he therefore rule it out?
The Minister for Local Government and Homelessness (Alison McGovern)
Under our new approach to funding, in places like Luton, which were starved of the resources that they needed for far too long, and for which we can evidence significant levels of deprivation, councils can expect to see the resources that they need in order to help people properly.
Martin Vickers (Brigg and Immingham) (Con)
Matthew Pennycook
I thank the hon. Gentleman for that question. Again, he will appreciate that, due to the quasi-judicial nature of the planning system, I cannot comment on individual applications. I am aware of the concerns that have been raised by Members from across the House about holding directions, issued in particular by National Highways. He may be aware of the reforms that we are making to the statutory consultation system as a whole, which are now out to consultation.
Jim Dickson (Dartford) (Lab)
I thank the Secretary of State and the Minister of State for Housing and Planning for visiting Ebbsfleet Garden City in my constituency last week. Does the Minister agree that, with an additional 10,000 homes to be built in Ebbsfleet over the next 10 years, to create great places to live we have got to build schools, medical facilities and green spaces—
Matthew Pennycook
We fully appreciate the importance of finishing Ebbsfleet Central, and while I cannot pre-empt the Department’s business planning, my hon. Friend can be assured that his championing of Ebbsfleet Garden City will ensure that it receives the support it requires through the new—
Sarah Pochin (Runcorn and Helsby) (Reform)
Matthew Pennycook
We are ensuring, through the new £39 billion social and affordable homes programme, for example, that the types of homes that need extra grant funding have that flexibility—that will include rural housing.
Wendy Morton (Aldridge-Brownhills) (Con)
What is grey belt, and can the Minister tell us what assessment he has made of the risk it poses to the integrity of the green belt in areas such as mine?
Supporting High Streets
Lindsay Hoyle Excerpts(3 months ago)
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Mr Speaker
I inform the House that I have selected the amendment in the name of the Prime Minister.
Helena Dollimore (Hastings and Rye) (Lab/Co-op)
The hon. Member is talking about the importance of high streets. In Hastings town centre, £150,000 of levelling-up money was provided to renovate the old Debenhams building and open a family fun factory. Sadly, that closed after a couple of weeks, the staff were not paid, and the building was boarded up. That taxpayer money was given to one of the biggest Conservative donors, Lubov Chernukhin. She has left with the money, and has not replied to my letter asking for it to be given back to the people of Hastings. Will the hon. Member, or perhaps the right hon. Member for Witham (Priti Patel)—who received £70,000 from that donor last year—help me to get a response about where our money is?
Mr Speaker
Can I just check that you have let the right hon. Member know that you intended to refer to her?
Andrew Griffith
I am sure that the hon. Lady will wish to take that matter up with Ministers through the appropriate channels, but there will not be many fun factories on our high streets when they feel the burden of Labour’s further changes.
Running a business—something that Conservative Members understand—is not easy at the best of times, but thanks to this Chancellor and this Government, these are far from the best of times. For the average pub, business rates have soared from £4,000 per year to over £9,000, and this morning, we have learned that the Chancellor is coming back for more. A year ago, she promised that she was done—that her tax raid on business was the end of it. She is leading us down the garden path. Spending is out of control, and she expects taxpayers, including businesses, to clean up her mess.
Harriet Cross (Gordon and Buchan) (Con)
Family businesses are crucial to our high streets, including mine in Inverurie, Ellon, Turriff and Huntly. Indeed, they are the backbone of our high streets, yet this Government’s national insurance contributions changes and Employment Rights Bill, and their slashing of business property relief, will have a huge impact on them and employment in them. What does the shadow Minister think of that, and what can we do to help our high streets and, in particular, family businesses in them?
Oral Answers to Questions
Lindsay Hoyle Excerpts(3 months, 3 weeks ago)
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Steve Reed
The hon. Lady will be aware that the Government have reintroduced home building targets that were scrapped by the previous Government. It is important that we have those targets and that they are achievable, and councils will be held to account to achieve them. I am working on an acceleration package to encourage more building in which local authorities will be key partners, and we will make announcements on that in due course. Of course, the hon. Lady will be aware of the changes we are making to drive up standards in council and other social housing, which we will insist are enforced and carried through.
Gareth Bacon (Orpington) (Con)
It falls to me to open the bowling for the Opposition Front Bench, so I congratulate the right hon. Gentleman on his appointment and welcome him to his place today.
The previous Government awarded the Mayor of London almost £9 billion of funding to build a total of 151,000 affordable homes in London. The second tranche of that money amounted to £4 billion, which was to build 35,000 homes between 2021 and 2026. To date, only 997 have been completed, with 443 of those homes being acquisitions rather than newly built. What plans does the Secretary of State have to hold the Mayor of London to account for this lamentable failure?
Steve Reed
First, I do recognise the challenges the hon. Gentleman has outlined. They should concern us all, and I thank him for raising them. He will be aware that we are making legislative changes right now, with the Planning and Infrastructure Bill that is going through Parliament, to speed up the planning system that is holding back so many homes from being built. We will be tabling further amendments to the Bill to tackle some of the challenges the hon. Gentleman is talking about.
I am working with the Greater London Authority and the Mayor of London on an acceleration package that targets London in particular. We will make announcements on that within weeks, and the hon. Gentleman will then see the action that we intend to take here in the capital city to ensure that home building continues apace. We will also be looking nationally, because every region of the country needs new homes built to meet people’s dreams of having somewhere affordable to rent or buy.
Gideon Amos (Taunton and Wellington) (LD)
In 2007, Ming Campbell launched the Liberal Democrats’ campaign for not just affordable but decent homes for our military. I congratulate the Secretary of State on his position. Will he join me in congratulating the forces families who backed my amendment to provide them with a decent homes standard, and will he agree that they deserve nothing less?
Matthew Pennycook
I am afraid I will take no lectures from the hon. Gentleman, as it was the previous Conservative Government—in which he served as a Minister—who lost control of our borders and presided over the complete breakdown of the asylum system. This Government are restoring order to that system, speeding up decision making and reforming the appeals process to cut the asylum backlog and remove those with no right to be here at a much faster rate than the previous Government. Our country has a proud history of providing sanctuary to those fleeing persecution. Genuine asylum seekers who have been granted refugee or humanitarian protection status should be welcomed. The hon. Gentleman would have said the same some years ago, and it is a sign of just how far his party has fallen that he cannot now bring himself to do so.
David Simmonds (Ruislip, Northwood and Pinner) (Con)
Despite that answer, it is clear that things are getting worse. Our councils are battling with the cost of this Government’s border failures. The 22% rise in small boat arrivals, combined now with Chagossians arriving in rising numbers, throwing themselves at the mercy of our local authorities as they escape Starmer’s sell-out, is stretching council housing budgets to breaking point. The Government have refused to answer my written questions about what financial support they provide to councils housing asylum seekers and refugees who are granted asylum in their areas. Can the Minister tell the House how much of the proposed rise in council tax is for the cost of the Government’s asylum failures, and will he publish the full costs and support in the interests of transparency?
Bradley Thomas (Bromsgrove) (Con)
The Parliamentary Under-Secretary of State for Housing, Communities and Local Government (Samantha Dixon)
Thank you very much, Mr Speaker. The Government want more empty homes brought back into use across the country, including through the steps we outlined in the English devolution White Paper to strengthen local authorities’ ability to take over the management of vacant residential premises.
Mr Speaker
I am intrigued to hear how coalfield regeneration relates to the hon. Gentleman’s part of Northern Ireland. I call Jim Shannon.
Jim Shannon
Thank you, Mr Speaker. I thank the Minister for that answer. The fact is that there were coalfields in Northern Ireland. There has been an opportunity—
Mr Speaker
Order. So the hon. Gentleman is saying that he has coalfields in his constituency? [Interruption.] Okay. I am going to allow the question, but I ask that we think about whether issues are relevant to our constituencies.
Jim Shannon
The question of who benefited from coalfields in the past is always relevant to people in Northern Ireland. Other parts of the United Kingdom of Great Britain and Northern Ireland have experienced coalfield regeneration, and people have come back from those areas on the mainland to Northern Ireland. Can we ensure that everyone has an equal opportunity to benefit from this? These benefits have been brought forward in England; bring them forward in Northern Ireland as well.
Miatta Fahnbulleh
We recognise that we need to support communities across the country who have been held back. We are working with the Northern Ireland Office to make sure that support is available for communities to renew and regenerate, so that they have the power to drive the change that they want to see.
Alison McGovern
The party of Liz Truss just doesn’t learn, does it? The Conservatives are happy to make tax policy that is absolute fantasy. People need real homes to live in, not this kind of thing, and the Conservatives simply will not get a hearing until they look at their record and learn to say sorry.
Florence Eshalomi (Vauxhall and Camberwell Green) (Lab/Co-op)
I welcome the Secretary of State and his Ministers to their positions. I very much look forward to welcoming them to meetings of the Select Committee; we are a fair and robust Committee. The Minister highlighted the inter-ministerial group, which the former Secretary of State chaired and saw as being very important. The issue cuts across all departmental groups. It is important, because within two months, as we go into the next year, and in the next financial year, we will see over 170,000 young children in temporary accommodation —in homelessness. That should worry all of us. The inter-ministerial group has met four times. Can the Minister confirm that the group will continue to be convened—and if it will, who will chair it?
Alison McGovern
I thank the hon. Gentleman for his point. Homelessness can be about rough sleeping, but there is also hidden homelessness. Our forthcoming strategy needs to consider all that in the round. He asks me what lesson I take from what happened a few years ago—and, I would argue, from how we reduced rough sleeping in the past. I would say that politics is about choices. We took the choice last week to invest, in-year, an extra £84 million in preventing and addressing homelessness. That is the right thing to ensure that everybody in this country is safe and has a roof over their head.
Paul Holmes (Hamble Valley) (Con)
I welcome the Minister to her place. Youth and overall homelessness have increased since the Government took office, and charities have been harmed by policies such as the national insurance rises imposed by the Chancellor. We welcome the additional money that the Government have allocated for tackling homelessness this winter, but it is an admission that they have failed in their pledge to reduce homelessness. The former Minister had a novel touch, and sent the figure the wrong way. I will ask this Minister the same question that I asked in the previous Session: does she accept that homelessness has risen under this Government, and will she commit to eliminating it by the end of this Parliament?
Matthew Pennycook
The hon. Gentleman has raised a number of issues. The best way in which local planning authorities can protect themselves from speculative development is to have an up-to-date local development plan in place. He touched on developer contributions; we remain committed to strengthening the existing system to ensure that new developments provide the necessary affordable homes and infrastructure. We will set out further details in due course.
When it comes to the prospective new town that the hon. Gentleman mentioned, I gently point out that it was not the Government but the independent, expert new towns taskforce that recommended to the Government that Adlington and 11 other locations in England should be the sites for the next generation of new town. On 28 September, we commenced a strategic environmental assessment to understand the environmental implications of new towns, and that will support final decisions. But no final decisions have yet been taken.
Mr Speaker
Order. I should say that that is the Adlington in Cheshire, not Lancashire.
Mrs Sureena Brackenridge (Wolverhampton North East) (Lab)
Steve Reed
I thank my hon. Friend, the Chair of the Work and Pensions Committee, for her work in supporting disadvantaged neighbourhoods in Oldham and her strong support for the Pride in Place programme, which offers a significant amount of long-term flexible funding and support to areas like Oldham. Best of all, it is local people who will take the decisions about what the investment needs to look like to make a real difference to their high streets, public services and public transport, so that they can take back pride in the place they belong.
Sir James Cleverly (Braintree) (Con)
Nobody but nobody believes that 1.5 million homes will be built under this Government. Although the Minister for Local Government and Homelessness, the hon. Member for Birkenhead (Alison McGovern), spent a lot of time at the Dispatch Box, she did not answer the question about whether the Treasury will be asked to scrap stamp duty. We know that 2.8 million people said that they would consider downsizing if stamp duty were abolished, freeing up family homes of all sizes. She would not answer, so I ask the Secretary of State directly: will he ask the Treasury to scrap stamp duty—yes or no?
Steve Reed
I know that the right hon. Gentleman was a strong supporter of Liz Truss when she stood for leadership of the Conservative party, but surely he cannot have forgotten what she did: she made multibillion pound unfunded spending commitments that crashed the economy, and sent wages down and prices, mortgages and rents skyrocketing. The last thing this country needs is tens of billions of pounds of more unfunded commitments, crashing the economy again and destroying people’s dreams of home ownership—
Mr Speaker
Order. There are lots of Back Benchers who wish to speak and this is topical questions. I call the shadow Secretary of State.
Sir James Cleverly
I asked for a simple yes or no, but the right hon. Gentleman struggled to give that. The truth is that we have outlined exactly where the money could come from and we have made it clear that if those on the Labour Front Bench have the guts to take on their Back Benchers, they will have the support of Conservative Members in making the expenditure cuts that are needed. The London School of Economics has estimated that £16,000 of economic activity comes with every house purchase, so if he will not agree to cutting stamp duty, will he at least agree to not putting up property taxes?
The Minister for Local Government and Homelessness (Alison McGovern)
It is important that we get that right, and we will have further discussions about it shortly. I might disagree with my hon. Friend on the importance of Pride in Place, which will turn around some of the decline created by the Conservative party.
Zöe Franklin (Guildford) (LD)
In June, the Department made the welcome announcement of legislation to allow proxy voting and remote attendance, which will help to drive up the diversity of councillors across the country, but the Government have not yet set out a timeline. Will the Minister advise the House on when a timeline will be shared, and whether the Government have considered including the changes in the English Devolution and Community Empowerment Bill?
Oral Answers to Questions
Lindsay Hoyle Excerpts(6 months, 3 weeks ago)
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Matthew Pennycook
Those house builders have expressed their confidence, and their gratitude for the reforms that the Government have carried out. It is slightly peevish of the right hon. Lady, who stood for election on a manifesto that committed her party to 1.6 million homes, to say that our 1.5 million homes target is unachievable. We quite regularly hear from Conservative Members that we are concreting over every inch of England, but at the same time that we cannot meet our targets. We will meet that target of 1.5 million homes.
Paul Holmes (Hamble Valley) (Con)
Lord knows who the Housing Minister is talking to, because time and again, developers have said that he cannot achieve his target of 1.5 million homes. As he knows, I have severe doubts about his ability to meet such unrealistic housing targets, and I suspect the Opposition will be proven right. However, if he does succeed, the quality of new homes must be maintained. Will he do what the New Homes Quality Board is calling for, and ensure mandatory board membership for developers of all shapes and sizes, and an empowered ombudsman, so that home occupiers are protected?
Matthew Pennycook
I thank the shadow Minister for that question. He is absolutely right that our target of 1.5 million new homes, which is extremely stretching—we have never said anything other than that—does not entail units at any cost. The design and quality of new homes and new places are incredibly important. He rightly cites the new homes code of practice, and we are giving consideration in the round to whether that can be strengthened—for example, whether it needs to be put on a statutory footing. In general, we want to drive up the quality of new homes in the places and communities we are creating.
Vikki Slade (Mid Dorset and North Poole) (LD)
The Competition and Markets Authority recently found that major house builders were preventing and distorting competition, including by matching prices and incentives to buyers. That further damages public confidence in house buying, and will have pushed home ownership out of the reach of many people. House builders have agreed to pay £100 million towards affordable housing schemes, but what redress is available for homeowners who have been misled? How will the Government achieve oversight of that funding to ensure that builders are held accountable, the additional homes are delivered, and there are effective disincentives to stop this happening again?
Rushanara Ali
The hon. Gentleman will be aware that we inherited a homelessness crisis, with record levels of people in temporary accommodation. Rough sleeping has gone up by 164% since 2010. The previous Labour Government cut homelessness and rough sleeping dramatically. We are investing to tackle the root causes of homelessness, and I look forward to working with the hon. Gentleman on those issues.
Paul Holmes (Hamble Valley) (Con)
Recent figures provided by CHAIN report a record 13,231 people sleeping rough in London—a 19% increase in the year since this Government took office, and a 63% increase since Sadiq Khan took office as Mayor of London. What conversations has the Minister had with the Mayor of London to tackle this failure in leadership, and will she commit to eliminating rough sleeping by the end of this Parliament? After a year of this Government, it has gone up.
Matthew Pennycook
I note my hon. Friend’s concerns in relation to the Tees Valley. In general, we are looking to streamline the powers given to development corporations—we took measures in the Planning and Infrastructure Bill to allow them, for example, to shape transport in areas—but if he wants to write to me or Ministers to raise more of the specifics of that case, we would be more than happy to take a look.
David Simmonds (Ruislip, Northwood and Pinner) (Con)
Community support is always vital for development, and with 95% of planning applications already decided by officials under delegated powers, it is clear that that democratic voice can be missing. Can the Minister tell the House why, taking that in tandem with the devolution White Paper, which envisages abolishing around 75% of councillors who represent their local residents on planning committees in England, local communities do not deserve more of a say, rather than less, in the planning process?
Angela Rayner
The Government have not set an affordable housing target to date, but we continue to keep the matter under review. Accurately trying to forecast long-term delivery is inherently challenging, but we believe that our new social and affordable homes programme could deliver around 300,000 social and affordable homes over its lifetime, with around 180,000 for social rent. The measures we have taken, alongside the commitment for rent so that there is this long-term programme, will hopefully help with the supply, and I have made it categorically clear to the sector that we want more social rent housing.
David Simmonds (Ruislip, Northwood and Pinner) (Con)
There has been a 66% reduction in new affordable housing starts in London under Mayor Khan, and I note that Hillingdon Labour vigorously opposes the Conservative council’s plans for a new affordable housing site at Otterfield Road in Yiewsley. Will the Secretary of State condemn the failings of these Labour politicians on housing, and will she acknowledge that whether someone is a homeless person, a rough sleeper or an aspirational first-time buyer, this Government are failing those in housing need?
The Parliamentary Under-Secretary of State for Housing, Communities and Local Government (Alex Norris)
I recognise the efforts of the Birnbeck Regeneration Trust. My hon. Friend is a doughty campaigner for his community. We announced support for 350 communities at the spending review, and further details will follow, but I would be delighted to meet him to speak about Birnbeck in particular.
Kevin Hollinrake (Thirsk and Malton) (Con)
The chair of the working group on anti-Muslin hatred/Islamophobia, Dominic Grieve, who was appointed by the Secretary of State, has previously stated a preference for a definition of Islamophobia that would shut down talk of religion in cases like the grooming gangs scandal. All other members of that committee—again, appointed by the Secretary of State—are adherents of the Muslim faith. Does the Secretary of State not share our concerns that their report and recommendations will be seen as predetermined and biased?
The Minister for Housing and Planning (Matthew Pennycook)
The Government support selective licensing as a tool to tackle the impact of poor housing management on local communities. The general approval that we granted in December gives councils full powers to introduce schemes, regardless of their size. My hon. Friend’s own authority will have heard loud and clear his call for it to consider doing so.
Vikki Slade (Mid Dorset and North Poole) (LD)
I refer the House to my entry in the register of interests. This weekend was a fantastic economic boost for many seaside towns, but along with the visitors, towns such as Poole and Bournemouth are blighted with illegal parking on roundabouts and across driveways and pavements. The Minister knows exactly what I am about to say: with 1,700 tickets issued, with the most dangerous cars towed away and with fines fixed for 20 years, does he believe that it is reasonable that council tax payers should pick up the bill of up to £200 per towed-away car for an illegal driver?
Siân Berry (Brighton Pavilion) (Green)
Matthew Pennycook
If the hon. Lady writes to me about the issue, I will certainly respond to her.
The Minister for Local Government and English Devolution (Jim McMahon)
The hon. Gentleman will know that it is Labour councils that are leading the charge at a local level to regenerate local communities and invest in local businesses—the evidence is there. They are supported by the plan for communities and the community right to buy; there is a real effort in this area. He did not give prior notice of his intention to raise the particular issue that he mentioned, but if he wants to follow up in writing, we will certainly look into it.
Mr Speaker
I call the Chair of the Housing, Communities and Local Government Committee.
Florence Eshalomi (Vauxhall and Camberwell Green) (Lab/Co-op)
This afternoon, I visited Centrepoint, where I spoke to young people living in self-contained flats and met the staff who are working to support those young people. The Secretary of State will be aware that a coalition of 150 charities supporting young people are calling for a specific youth-focused section in the ending homelessness strategy; estimates show that would save £8.5 billion a year. Does the Minister agree that it is not only morally right but economically smart to have a youth-specific chapter in that new strategy?
Jim McMahon
The real issue for most councils is that the Liberal Democrats did not make hay when the sun was shining in their coalition years. Let nobody in local government forget that the seeds of the erosion of local neighbourhood services started in those coalition years, when the Liberal Democrats more than ably abetted the Conservative Government at the time.
Perran Moon (Camborne and Redruth) (Lab)
Meur ras, Mr Speaker. Cornwall is desperate to access the highest level of devolution, but because of our national minority status, Cornwall cannot and will not join a mayoral combined authority. Before this House is asked to vote on a devolution Bill that discriminates against the people of Cornwall, will the Secretary of State meet me and colleagues to discuss a Cornwall-only devolution deal?