Lord Beecham
Main Page: Lord Beecham (Labour - Life peer)Housing and Planning Bill
Lord Beecham Excerpts
Baroness Gardner of Parkes (Con)
My Lords, this amendment is self-explanatory, and people in this House have heard me speak before on the issue of sinking funds. It was drawn to my attention particularly by people who bought their council flats in the days of Margaret Thatcher. No sinking funds were set aside at all and, if you are a tenant in a local authority block, you do not have to pay for sudden repairs. However, the case I quote to the House is of a woman who has an income of £10,000 a year and received a bill, this year, for £12,000 for her part of the roof repairs. When I followed this up with the housing association that owns the property, it said the problem is that there are 26 people in exactly the same position. To avoid this, from the day that you own a leasehold, you should really be part of a sinking fund so that you do not suddenly find yourself threatened with losing your home altogether because you cannot find the money. What happens if she does lose her home? The local authority has to pick it up again, so it seems that the fund is necessary.
It is also very necessary and important that a sinking fund exists in private blocks. We do not have one in the block that I own a flat in and, some years ago, someone suggested that we have a voluntary scheme. The scheme came into force and we all put our money in, and it was great because it paid for all the repairs for the year—some minor and some less minor. Then, a new tenant bought a leasehold in the block and said, “I don’t want to pay a sinking fund; there is nothing in the lease about it”. They had to give us all back our money, whereupon, years later, we will be faced with another giant bill for a new boiler system or new central heating or something.
It really is so much better if people have a sinking fund for repairs, and it is important that this should be a possibility for people in local authority housing and people who have a right to manage, even if their lease does not have provision for a sinking fund. My aim is to put in a clause that would enable people to decide that by a majority. If a majority want it, it should come into force, and it should not be the case that it can be withdrawn at a later date, which was what threw our system into complete chaos, it having been done on a voluntary basis. I beg to move.
Lord Beecham (Lab)
My Lords, I sometimes think that the noble Baroness’s title is not really adequate: “Baroness Gardner of Leaseholds” would have been better than Baroness Gardner of Parks. She is an expert in these matters and deeply committed to improving the situation of leaseholders, and on that she is to be congratulated. It is fair to say that the aspirations in these amendments are to be welcomed. However, I have some difficulties with the drafting.
In Amendment 84E there is a reference to:
“The buyer of a leasehold in a shared residential building”.
However, not every owner is a buyer—they may inherit or be given the property, and so “buyer” is not the right term. That also applies to subsection (4) of the amendment’s proposed new clause. It is also not clear in proposed new subsection (1) how the requirement is to be made. Normally, of course, provision is made within the lease. The implication here is that, somehow, legislation should overtake the provisions in an existing lease, which I think is a somewhat difficult concept. Furthermore, proposed new subsection (3) says that:
“The sums to be deposited and the timetable for their deposit shall be determined by those holding rights in the shared building”,
but it does not indicate how many of the leaseholders would be required—I suspect that a majority is what is intended, as it is in subsection (1) of the new clause proposed in Amendment 84F. That needs to be tidied up.
Having said that, there will be a chance, if I may say so respectfully, to improve the wording of the amendment before we get to Report. I hope that the Government will be sympathetic to this and possibly work with the noble Baroness in coming to an agreed position. She has highlighted a significant issue that is having adverse consequences for many occupiers of leasehold properties; at any rate, those with common parts. Perhaps the Minister will undertake to look at that with her and others to see whether the Government might bring forward an amendment to meet the objectives set out here but, as I said, unfortunately with drafting that may not achieve them.
Lord Campbell-Savours (Lab)
My Lords, I do not like either of these amendments. I want to make it quite clear that I think they are wrong in principle. For a start, Amendment 84E states that the buyer of a leasehold “is required”—in other words, it would be mandatory. There are blocks of flats—particularly where there is self-management, as in the case of my arrangement in Maidenhead—where resident committees agree that a sinking fund is not needed. We simply agree to turn up the money when a large expenditure is required. A couple of years ago, we had to spend £80,000 on a roof repair, but we agreed in advance that we would not levy for it until the expenditure needed to be incurred. It should be left to people in blocks of flats to decide whether there is a sinking fund, because there are varying views. Therefore, I am against that provision.
I am also opposed to Amendment 84F, and I will explain why. It is being suggested here that a majority—51%—of leaseholders could change the terms of the lease. If the terms of a lease were changed in such a way whereby a minority objected, and that objection was so strong that they just become awkward, which is what happens, they would simply default on the payment of their service charges. You cannot divide leaseholders in that way. In the case of the block in Maidenhead, where we have shared freehold interest, every time we enter into major works—indeed, any works—we agree in the resident committee. Because we are also the management company running the organisation, in which I take a very active part, we make sure that everybody agrees. Indeed, we get letters or emails from them confirming that they agree to any change that we wish to make. The reason is very simple. We have people that live both within and without the United Kingdom. In the event that we were to take an action which in any way they found unacceptable, I know that people would say, “Well, I’m sorry. I just do not agree with what you’ve done. I know I was invited. I know it said that in the event that I was unable to be there I would be deemed to be in favour of the proposal”, but irrespective of that they would feel that they were being manipulated into taking a decision to which they object.
Lord Beecham
My Lords, I am sorry to intervene, but surely the noble Baroness is moving on to other groups. She seems to be responding to the ninth group. Perhaps I am making a mistake. If it is the right group, I beg noble Lords’ pardon.
Baroness Evans of Bowes Park
I apologise if I repeat myself as I find my place again.
As I have said, this would apply only in rare cases. These cases would be when a local planning authority has failed to decide what action to take in response to the recommendations of the independent examiner or where the authority disagrees with an examiner’s recommendations and wants to modify the plan or order proposal against the wishes of the neighbourhood planning group, unless the modifications are to ensure compliance with EU or human rights obligations, or to correct errors. We anticipate that this power would be used only in exceptional circumstances. We have been very clear that communities and local planning authorities should be working very closely on the neighbourhood plan or order proposal throughout the process. However, we are aware, as the noble Lord suggested, that in a small number of cases there have been disagreements between groups and authorities. There is currently no mechanism to resolve these disagreements. In extreme cases those disagreements have blocked the progress of a proposal by more than a year, even though it is supported by the community and has been approved by an independent examiner. We do not believe that that is an acceptable situation. Regulations would set out the procedure to be followed when a request to intervene is made and the proposals for these are also the subject of public consultation. While this power to intervene would remove some responsibility from the local level, we believe that it is necessary in the rare cases that I have outlined.
Although I fully understand the good intentions behind my noble friend Lord True’s amendment, unfortunately we believe that it would diminish the ability of the Government to meet their manifesto commitment of speeding up and simplifying the neighbourhood planning process. The amendment would unnecessarily restrict and potentially even nullify the proposed power and would mean that some plans or orders could be indefinitely blocked by an authority or amended without the support of the community. However, I can assure my noble friend that we very much support and encourage local planning authorities such as Richmond-upon-Thames, which works proactively with communities to prepare other types of community plans. Indeed I congratulate Richmond-upon-Thames on taking such a comprehensive approach to delivering community-led planning through its series of village plans.
Neighbourhood plans are a powerful tool, because they become part of the statutory development plan, which is the starting point for planning decisions. They are subject to two consultations and must pass an independent examination and a local referendum before becoming part of the development plan. We believe that every community that passes the independent examination stage should have the right to request that the Secretary of State intervenes if that plan is blocked by a local planning authority, or amended in a way that the examiner did not recommend. It would not be right to restrict this power where an authority has adopted in the past, or says it will be adopting in the future, other kinds of supplementary planning document, and there is no guarantee that other types of documents are up to date or have the same level of genuine support as a neighbourhood plan.
We have learned from the experience of communities undertaking neighbourhood planning and believe that the proposed new power in the Bill is already limited to the right set of very specific circumstances. Indeed, the Government have further explained, in our recently published consultation document, that the Secretary of State will, in considering a request, consider the plan or order plans positively for local development needs, taking account of the latest evidence. Let me reassure my noble friend that the proposed power does not affect a local planning authority’s ability to progress other types of planning document where it is already working with its communities. I also assure the noble Lord that the proposed power does not enable the Secretary of State to intervene in any other stage of the neighbourhood planning process. For these reasons, I hope that noble Lords will withdraw or not move their amendments, and ask that Clauses 125, 126 and 127 stand part of the Bill.
Lord Foster of Bath (LD)
My Lords, I am delighted to follow the noble Lord in what he said, and I hope that in my very brief remarks about neighbourhood planning I can reassure him that in this area there is so much enthusiasm at the local level that central government prescription is not really going to hold sway. That is what is so exciting about what happened with the Localism Act. It really has liberated local communities in so many different ways to take on and run local assets, to take on and run local services and, of course—as we have heard—to introduce neighbourhood planning. I intervene merely to express my huge enthusiasm for neighbourhood planning, to share a couple of experiences and then to ask one simple question of the Minister, which may help provide information to the House that may help us move forward on these issues.
It is worth recording, notwithstanding what my noble friend said a few minutes ago, that we have already seen 126 successful referendums; interestingly, in every single referendum that has taken place the plan has always been passed, which is huge testimony to the work that local communities have done to engage the local community before the plan is finalised and brought to the referendum stage. I acknowledge of course the 10% figure we have heard which relates to the way in which those plans have often led to developments of housing, for instance, far greater than they were in the local plan. I have had the opportunity to see first-hand a number of examples where, as a result of local involvement, things that were perhaps initially not very acceptable to the local community have suddenly been embraced because the community has been involved and engaged in the detailed decision-making process.
In one case there was a plan to have a supermarket in a relatively small town. There was huge opposition to it and a neighbourhood planning group was brought together. Residents discussed what they wanted in the neighbourhood plan and eventually decided that it might be a good idea to have a supermarket after all if they could determine its location, the routes people would use to get to it, the parking arrangements, and so on. Eventually, a supermarket was included in the neighbourhood plan. It has been to a referendum and been accepted, and the supermarket is being built.
Back in February 2013, when I had the opportunity to engage with neighbourhood planning, I and the other Minister involved, Mr Nick Boles, went to a windswept Upper Eden in Cumbria a few days before the first referendum on the first neighbourhood plan was due to take place, when we had an opportunity to talk to councillors and members of the local community. We were under strict instructions from the civil servants that in no way were we to express a view on whether we were for or against the neighbourhood plan, which proved rather difficult for two Ministers who are passionately supportive of the principle. But we more or less stuck by that, although we both left wearing “Yes” badges on our lapels on the way out. It was exciting to see the first plan going through.
The crucial bit, which relates to Amendment 88B, was that only a few weeks following that visit I was able to announce a £9.5 million fund for a two-year period to provide more financial support to communities that wanted to develop a neighbourhood plan. To reflect the point in my noble friend Lord Greaves’s amendment, further money was then made available to give local councils financial support for their work in supporting and dealing with various aspects of neighbourhood planning.
We were also able to announce the establishment of the My Community website, which has subsequently been a very good source of information for people looking to develop their own neighbourhood plan, and after that there was also a scheme to introduce 40 neighbourhood planning champions, many of whom operate up and down the country; they are people who have led their own neighbourhood plan, local councillors, planning officers and so on. Members of your Lordships’ House who are interested in this matter may like to have a look at the recently established website, where these neighbourhood planning champions now share their own experiences and so on.
The reason I intervened, apart from perhaps to show my enthusiasm for neighbourhood planning, was to ask the Minister a very specific question in regard to my noble friend’s Amendment 88. As various pots of money have been made available—initially, for instance, £7,000, now £8,000, potentially with a further addition of £6,000 in difficult areas to support neighbourhood planning development—the Government announced an additional pot of money for pilots for councils to look at best ways of helping to promote neighbourhood planning in their areas. They made £600,000 available and various bids were sought.
Since then, I have been unable to find any further information as to what has happened to that particular pilot scheme. It was designed to help us identify the best way of moving forward in promoting and supporting neighbourhood planning, which is the thrust of my noble friend’s amendment. So I think that the House would be delighted to hear from the Minister details of how the money has been spent, what sort of projects have been brought forward and what lessons have been learned from which we can all benefit.
Lord Beecham
My Lords, I join other noble Lords in welcoming the concept of neighbourhood planning, particularly where it takes a positive attitude to development in the area. I acknowledge that there is real potential both in urban and in rural areas. The noble Lord, Lord True, is right that we need to be a little cautious about the implications within urban areas. I can best illustrate that from the ward that I represent in Newcastle. It has 18 or 19 discernible communities within it and I think now nine residents associations, each with its own particular perspective on what is going on.
It is not just a question of planning; it is a question of involving the community in a whole range of issues, be it social care, policing or other matters. It is important to involve local people, but your Lordships must bear in mind the constraint these days on the capacity of planning departments to cope with their ordinary business. It is well known that the number of planning officers is being reduced substantially as a function of the cutbacks that are being suffered. That does not make it any easier, to put it no higher, to support the valuable process of neighbourhood planning. In this context, I recall the words of one of our most famous poets, John Donne:
“No man is an island, entire of itself”.
In my judgment, no neighbourhood is an island entire unto itself unless it happens to be physically remote from others.
The experience of planning generally is that often planning applications evoke a negative response rather than a positive engagement. I recall particularly some occasions of that close to my heart. One was over 20 years ago when the noble Lord, Lord Shipley, and I were opposing one another. I was leader of the council and he was the leader of the opposition. He will recall that there was a proposal for building on greenfield rather than green-belt land towards the north of the city. This was part of a major plan that we were bringing forward as a council. It was opposed by the noble Lord and some of his more vociferous colleagues, as he will recall, on the grounds that it was unnecessary and so on. In fairness to them, they were reflecting the views of at any rate some of the people living in private housing estates which themselves had been built on green fields perhaps 20 to 30 years beforehand. These people would not contemplate the possibility of housing on the green fields that were in the vicinity of their estate.
More recently I encountered a similar and disturbing attitude while canvassing in a ward—not my ward—on the edge of the city. Again there were proposals about potentially building on greenfield sites. Here the houses from which we were somewhat vainly endeavouring to elicit support were part of a housing estate built within the last few years. I felt almost constrained to nominate myself for the Nobel Prize for self-restraint when one woman on whose door I knocked said that it was bad enough having any sort of housing built on the fields behind her, which of course a few years before would have encompassed her house, but at least there was not going to be social housing there. We have to take cognisance of the fact that there will be tensions and priorities to be assessed by local authorities which will perhaps transcend the immediate interests or concerns of local communities expressed through their neighbourhood planning or otherwise.
Lord Shipley
My Lords, does the noble Lord agree that he has in fact made a very good case for the neighbourhood planning process? It is a process that engages people in decision-making rather than huge numbers of houses being proposed from a centralised planning function in a civic centre and not commanding the support of local people because it has not been discussed with them. Does he further agree that the concept of permission in principle could well make things worse rather than better?
Lord Beecham
I think that we will shortly be spending a good deal of time on permission in principle and, judging by what the noble Lord has just said, there may be a degree of agreement. I repeat that people have to look beyond their immediate circumstances and geography. They have to acknowledge that there are needs beyond that immediate locality which have to be reflected in an overall plan. There needs to be a significant contribution from localities to the overall plan but not one that is limited purely by locality in the narrower sense; otherwise, particularly in the present circumstances, we will not get, for example, the required number of houses, although that is not the only issue that needs to be considered in terms of development.
However, there are housing shortages and physical constraints in some areas. One immediately thinks of London in that context, but other areas also have restrictions. My noble friend Lady Hollis may well say that Norwich, for example, is tightly constrained, and other urban authorities would say the same about their areas. One thinks of Stevenage, for example, which is built to its limits and has no option but to seek—unavailingly, as it turns out—collaboration on development from its neighbouring authorities. There is a balance to be struck, so up to a point I agree with the noble Lord. However, I notice that the noble Lord’s former colleagues are effectively trying to resurrect Gosforth Urban District Council, promoting the concept of the parish council there, which, of course, is entirely unrelated to the fact that they may feel a little under pressure politically.
Lord Shipley
My Lords, the noble Lord is very keen to talk about a place other than your Lordships’ House. It would be part and parcel of successful neighbourhood planning. It is very difficult to organise neighbourhood planning without a formal structure to enable it to happen. Therefore, I entirely subscribe to promoting town councils in the north of Newcastle upon Tyne and I sincerely hope that he will too.