Local Government Funding

Lloyd Russell-Moyle Excerpts

Tuesday 15th January 2019 Westminster Hall

[Preet Kaur Gill]

My hon. Friend is absolutely right. I hope that the Government really listen to what Members say today about the devastating impact of cuts to councils in their constituencies.

[Lloyd Russell-Moyle (Brighton, Kemptown) (Lab/Co-op)]

Does my hon. Friend agree that the problem is not just the direct cuts to councils, but the extra services that councils are expected to take on? In my area, the NHS has stopped funding the low vision clinic, so Labour-led Brighton and Hove City Council has had to pick it up—whereas my other local council, Conservative-led East Sussex County Council, is refusing to do so, leaving partially sighted people with nowhere to go for the vital adaptations that they need.

[Preet Kaur Gill]

My hon. Friend’s important intervention tells us about the plight of councils as a result of non-statutory services not getting the investment that they need. We will end up with councils delivering only statutory services, which will by no means meet the needs of our diverse communities.

In the context of Birmingham’s projected population growth of 121,000 by 2031, the cuts will mean even less money in real terms per person. Nor is the situation unique to Birmingham, as we have heard from many hon. Members across the country. The Institute for Fiscal Studies reports that

“funding from government grants, business rates and council tax is still set to be 1.4% (£0.6 billion) lower in real-terms than in 2015–16, which is equivalent to 4.2% per person after accounting for forecast population growth.”

Whatever the Minister and the Secretary of State may say, that means that councils will have less money to deliver services. This is not about the need to find minor efficiencies following a period of high spending; it follows a period of dramatic and coalition Government-enforced reduction of 22% per person, in real terms, in council spending on services between 2009-10 and 2015-16.

--- Later in debate ---

[Lloyd Russell-Moyle (Brighton, Kemptown) (Lab/Co-op)]

Last year’s bankruptcy of Northamptonshire County Council was the first of many, and although the Government’s answer to it may have been well meaning, it involved a totally pointless reorganisation that was a little like shuffling the deckchairs on the Titanic. A crisis in local government is also coming to my local authority. East Sussex County Council, which covers just over a third of my constituency, is following a similar path. It has declared that it can make only a core offer to meet its basic statutory duties to the very vulnerable, thereby undermining the principle of universality and its social contract with residents. The most vulnerable people will still be affected by cuts in East Sussex, with cuts to meals on wheels, which have gone in many places, the end to the locally supported bus service, and the closure of libraries and many residential centres—we have about heard that in other areas as well.

It is shocking and shameful that the most vulnerable and lonely in our society are being forced into further isolation, and it has been reported that the cash shortfall at East Sussex will leave the county bankrupt in under three years. We will see the human consequences of that dire situation for many years to come. Recent cuts to services for disabled children have led to the charity Embrace East Sussex being forced to pick up the pieces, and parents now have to crowdfund for clubs and support for their children. Local parish councils have to provide the medical support for disabled children that would otherwise have been provided by the local authority. How have we arrived at a situation where our communities rely on voluntary groups and crowdfunding donations to support our children?

East Sussex County Council has planned to cut £854,000 from safeguarding services such as training programmes, and numbers of social workers are to be slashed, leaving families vulnerable. We are literally putting our children in harm’s way. The council acknowledges that more children will now be subject to child protection plans and stay longer in care because of those cuts, which in the end will cost both us and our children’s future more.

Both in Westminster Hall and the main Chamber I have spoken regularly about the £1 billion cuts to youth services nationally, which is a real problem. In Brighton and Hove the local authority spends all its council tax budget on adult social care. We need a new funding formula. Funding for adult social care needs to come directly from the Government or the NHS. We must transform the way it is funded.

Oral Answers to Questions

Lloyd Russell-Moyle Excerpts

Monday 5th November 2018 Commons Chamber

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

I can tell my hon. Friend that £240 million of the £650 million will distributed in the same way as the budget for the current year and he should have received those figures already. We will shortly write to local authorities and colleagues about the distribution of the second tranche of £410 million.

[Lloyd Russell-Moyle (Brighton, Kemptown) (Lab/Co-op)]

T2. Last week, Southern Landlords Association filed for judicial review—[Interruption.]

[Mr Speaker]

Order. I can scarcely hear the hon. Gentleman. I want to hear his question. I do not know what all this baa-ing is about—something may have been said that has escaped my attention—but that does not remotely concern me at this moment. What does concern me at this moment is that the hon. Gentleman must be heard and he will be heard, however long it takes.

[Lloyd Russell-Moyle]

Thank you, Mr Speaker. Last week, Southern Landlords Association filed for judicial review on selective licensing in Brighton. The Government’s response was to revoke the licence to regulate the private sector. This is not the first judicial review to derail selective licensing. Irrespective of the particular issue I am working on with the Minister, is it now not time to review the way selective licensing works and to stop judicial reviews, particularly vexatious ones like those from Southern Landlords Association, derailing the ability of councils to regulate the private sector and rogue landlords?

[Mr Speaker]

The hon. Gentleman might like to secure an Adjournment debate on the subject.

Govia Thameslink/Rail Electrification

Lloyd Russell-Moyle Excerpts

Tuesday 3rd July 2018 Commons Chamber

[Joseph Johnson]

The Government are making a massive investment in transport in the north of England, but Labour Members seem to be intent on downplaying its scale. It is worth reminding the House that £13 billion is being invested in northern transport in the years to 2020, and £2.9 billion is being invested in the trans-Pennine route upgrade alone. It is entirely right for the Government to seek the maximum value for both passengers and taxpayers when it comes to how that money is spent.

[Lloyd Russell-Moyle (Brighton, Kemptown) (Lab/Co-op)]

It feels almost like groundhog day. Last night, again, it took me three hours to travel back to Brighton. What does the Transport Salaried Staffs Association, the union that represents staff—and I refer to my registered interest in that regard—say? It says that 95% of staff now face aggression from passengers whom they are unable to give any information, because the management does not give them any information, and 82% say that they have no trust in the management of the franchise any more. When will the Minister agree with passengers—and, now, with staff—and get rid of GTR?

[Joseph Johnson]

Obviously, no staff in GTR or any other train operating company should accept, or should expect to suffer, abuse of any sort from passengers in these circumstances. As the hon. Gentleman knows, a hard review of GTR’s performance is now under way, and all options will be on the table following that review.

Tenant Fees Bill

Lloyd Russell-Moyle Excerpts

2nd reading: House of Commons
Monday 21st May 2018 Commons Chamber

[Lloyd Russell-Moyle (Brighton, Kemptown) (Lab/Co-op)]

I congratulate the Conservative party on delivering yet another 2015 Labour election manifesto pledge. Page 62 of our 2015 election manifesto, which I stood on, pledged to ban unfair letting agent fees. I have some news for the Conservative Members, however, because we had a new manifesto in 2017, which was even more popular than our 2015 manifesto: it led to their losing seats and to our gaining them. The 2017 manifesto went even further:

“Labour will make new three-year tenancies the norm, with an inflation cap on rent rises... We will legislate to ban”—

all—

“letting agency fees for tenants. We will also empower tenants to call time on bad landlords by giving renters new consumer rights.”

It was a little bit disappointing that this Bill did not go quite so far. However, if the Government wish to continue their work in implementing Labour manifesto pledges, I am sure that they will meet no resistance from Labour Members and that it will be met with a great deal of praise from those who are suffering in the private rented sector.

The scandal of letting agent fees has gone on for far too long, and an audit of the private rented sector in Brighton and Hove shows exactly how out of control the fees are. In Brighton, agents’ fees start at £500 just for a holding fee, which is of course, as we have heard, non-refundable. If someone decides not to go for the property, they will lose the money. In the house buying world, someone can put in a bid for a property, agree an offer and get very far through the negotiations, but they can drop out with no financial charge. That seems manifestly unfair: for the rich, or for homeowners, there is one rule; and for renters, there is another whereby, if someone decides to change their view at the last moment, for whatever reason, they are charged. Ending that is a great opportunity that has been missed in the Bill.

In Brighton, admin fees are also common, at £250 on average per tenant, tenant substitution fees are as high as £420, and guarantor fees are £190. All in all, it costs more than £1,000 and we have not got started on the deposit. We have heard the same story from many constituencies throughout the country, particularly those in the south-east. We also have check-in and check-out fees, which are as high as £270 per check-in or check-out.

How has it got this bad? There is, of course, a fundamental power imbalance in the landlord-renter market. Often, young and insecure workers have no choice but to take what they are given, pay the fees and, sometimes, to do it with a smile because otherwise they would be rejected by the landlord. That is, of course, why it has been necessary in Brighton to establish renters’ unions. There are renters’ unions in my constituency such as Acorn, and I applaud the work it has done to fight for renters who are being abused by agents. We have heard a lot of talk about this being about only a few agents, but I am afraid that in my city it is, I think, a large number of agents. I would even go so far as to say that the majority of agents use these dirty tactics. That is why the Bill is needed; it is not about a few rotten apples but a systemic failure in the market.

The Minister will have received the same advice as I and many others have about some of the things that need to change, particularly the loophole in paragraph 4 of schedule 1, which has been mentioned, regarding tenants who have to pay a default fee. Again, that takes me to the point about the equality of the sides in this argument. While we still have no-fault evictions, where a landlord can decide to evict a person with notice and there is no charge or fee against the agent or landlord and no reimbursement for the person losing their house a few months early, it seems to be totally unfair to have any default fee on the other side without the situation being equally balanced. If the Bill were to introduce an equal default fee for no-fault evictions, this would be a measure that I could probably come to support.

Of course, the Bill also fails to provide a comprehensive definition of default fees and creates the ability for fees to be reintroduced by any other means. Of course, we know that in a capitalist world capitalism will use those loopholes to its best advantage. It seems that the Government never learn that if they do not close down loopholes, the people who will be abused are our constituents. I guess that it will take a Labour Government to implement Labour manifesto policies properly, but I support this measure, even if it does not quite yet go far enough.

Housing and Homes

Lloyd Russell-Moyle Excerpts

Tuesday 15th May 2018 Commons Chamber

[Emma Hardy (Kingston upon Hull West and Hessle) (Lab)]

It is a pleasure to follow the hon. Member for South Suffolk (James Cartlidge).

I want to focus my comments on private rented accommodation and fairness. We all know that there are many fantastic private landlords out there across the country who offer a high-quality service for the people living in their accommodation, but we also know that there are many who do not. The issue of fairness concerns who pays to regulate this sector. Who foots the bill for dealing with some of the problems that are identified? We have all, I am sure, had constituents come to us and say that they have had problems with their accommodation. One of my constituents came to me with her baby who was suffering terribly from asthma because of the damp in her private rented accommodation. I spoke to Hull City Council’s housing team, whose fantastic housing manager, Dave Richmond, dealt with the case and the landlords had to resolve the problem.

But what about all the people who do not go and see their Member of Parliament? What about all those to whom it would not even occur that they could go to their MP and they could help them to deal with the issue? Who goes to check that private rented accommodation is of a high standard? I have had this conversation with Hull City Council. I am sure that it would love to be able to go out there and check that some of the accommodation that people are living in meets the standard that it should, but who pays the bill? People who live in Hull are paying their council tax to deal with problems that are caused by private rented accommodation and private landlords. Can anyone name me another type of private organisation where the general taxpayer foots the bill to deal with problems created in its own industry?

[Lloyd Russell-Moyle (Brighton, Kemptown) (Lab/Co-op)]

My hon. Friend is making a powerful speech. Does she agree that that is why selective licensing schemes, which allow private landlords to be charged for some of that enforcement, are important? Does she share my bemusement and even frustration that the Minister has still not signed off numerous selective licensing applications, including mine in Brighton and Hove? The Government have been sitting on those for months now, and we are still not able to move forward in many of our cities where councils want to do exactly what she says.

[Emma Hardy]

I thank my hon. Friend for that contribution. That is exactly the point that I wish to make.

The Ministry’s data shows that in Kingston upon Hull there were a total of 22,132 properties in the local authority area with a housing health and social care rating category 1 hazard—all of them in the private rented sector. A category 1 hazard is one that poses a serious threat to the health or safety of people living in or visiting a home. It is estimated that the cost to the council of dealing with all those issues would run to £23.5 million. Surely that bill should not have to be footed by the people who live and pay their council tax in Hull.

I absolutely agree that there should be a local licensing system whereby those who own private rented accommodation make a contribution to the regulation and maintenance of some of their properties. That is the only fair way to do it. I am calling on the Ministry to make it easier for local councils such as Hull City Council to introduce landlord licensing, so that they can check that all these people living in private rented accommodation are not living somewhere that is a hazard to their health.

Oral Answers to Questions

Lloyd Russell-Moyle Excerpts

Monday 30th April 2018 Commons Chamber

[James Brokenshire]

I am grateful to my hon. Friend for flagging up this important issue. I will certainly listen to the points that have been made, look at the report and see what consideration either I or my hon. Friend the Minister for Housing can provide to engage in its recommendations.

[Lloyd Russell-Moyle (Brighton, Kemptown) (Lab/Co-op)]

T8. We are facing a housing crisis in both quantity and quality. The Housing, Communities and Local Government Committee outlined that one way to solve it would be selective licensing. Brighton and Hove put in an application in January, but five months later we are still waiting for the Secretary of State’s approval for the scheme. Will he make it one of his first acts in office to sign off the scheme, so that we can get on with improving our housing stock?

[Mrs Wheeler]

I thank the hon. Gentleman for his question on this very important matter. We are actually reviewing all licensing schemes across the whole country, and we will look into this one and get a decision to him as quickly as possible.

Northamptonshire County Council

Lloyd Russell-Moyle Excerpts

Tuesday 27th March 2018 Commons Chamber

[Sajid Javid]

I can give my hon. Friend that reassurance. As my hon. Friend the Member for Kettering (Mr Hollobone) has just said, this is a sad day for the council. Residents will reflect on this, but it is now important that we make the most of this difficult situation and that, when we have that reorganisation, we ensure that we listen to local residents, including, of course, the borough councils.

[Lloyd Russell-Moyle (Brighton, Kemptown) (Lab/Co-op)]

During the local government funding settlement statement, I asked about local government funding, and the response that I got from the Chief Secretary to the Treasury was that local government had plenty of reserves. She pointed out that it had £23 billion of reserves that could be used. First, has that set a dangerous tone to local authorities that they should be spending their reserves? Secondly, does the report suggest that the privatisation of services has meant that councils cannot properly control them?

[Sajid Javid]

No on both counts.