Levelling-up and Regeneration Bill

Lord Bishop of Chelmsford Excerpts

Committee stage
Monday 22nd May 2023 Lords Chamber

[Baroness Bennett of Manor Castle (GP)]

My Lords, it is a great pleasure to follow what I have to say are two very important speeches. They were from two expert contributors and I have nothing to add except to say that they have certainly convinced me that there is grave cause for concern here.

I want to speak about another government amendment, Amendment 467F, about requiring local authorities to transfer land to academy trusts. We have to look at this in the context of the huge privatisation of public land—2 million hectares, 10% of the entire British land mass—over the past few decades. In 2018 prices, that was estimated to be worth £400 billion. It is also in the context of the Government in the past month having apparently won—certainly in the High Court anyway—a legal tussle with Annington Homes, owned by the private equity firm Terra Firma, over the privatisation of the Ministry of Defence housing portfolio, which the National Audit Office estimated had left the Government between £2 billion and £4 billion worse off.

The amendment is quite long and quite technical and I have done my best to grind my way through to make some sense of it. What we are seeing here is a swap. What is the Government’s assessment of the risk of this swap and of the lack of clarity that might occur in terms of local democracy and local understanding?

I have a couple of other things to ask about this amendment. Proposed new paragraph 9A(7) talks about the local authority bearing the costs of this swap. Why? There is also the underlying concern of many local residents around the country and many local authorities that potentially an essential resource disappears from public space for the interests of private profit. One of the case studies for this was the Durand Academy, a particularly infamous case in Lambeth where the Department for Education terminated an academy’s funding agreement and it maintained that it still owned the land on the school site, and accommodation and a leisure centre had been built there.

Speaking as a former school governor, I am well aware of the complications that have arisen from school buildings that are also mixed with private accommodation, private accommodation that is leasehold and private accommodation owned by the council. Very complex situations are being created so I am really seeking reassurance from the Minister that this amendment is not going to add further risks in terms of the transfer of lands to academy trusts.

[The Lord Bishop of Chelmsford]

My Lords, following the noble Baroness, Lady Bennett, I rise to speak in favour of government Amendment 467F and at the outset say that my right reverend friend the Bishop of Durham, who leads for the Church of England on education, very much regrets that he cannot be in his place.

We are grateful to the Department for Education and the department for levelling up for working together and with us in the Church to fulfil the Government’s commitment to bringing forward legislation to safeguard statutory protections relating to issues arising from the occupation of land by Church academies. The decision not to progress the Schools Bill might have meant that this uncontroversial but important change to legislation would have been lost, so it is very good to have the amendment in this Bill, which will maintain the important legacy of educational endowments that provide land for the purposes of a school with a religious character. This is important for all schools with a religious character, not just Church of England schools, and it will remove a significant barrier on the journey to academisation for Church schools, which is vital in the Government’s policy aims, as such schools make up one-third of the entire school sector and seek to serve local communities up and down the country.

As boards of education implement their strategies for the development of the family of Church schools in each diocese, they need to have confidence to do so in a way that ensures the security of that provision for the future. That still requires further work on governance arrangements which we are developing in partnership with the DfE through the use of the Church model articles, but it also requires legislation with regard to the way land is held on separate charitable trusts for use by academy companies. This amendment provides that legislation and captures clearly the issue as described in the fact sheet that accompanied the now withdrawn Schools Bill.

We therefore welcome this amendment to preserve trustees’ existing land interests once schools whose sites are held on educational endowments become academies. This amendment is a vital step towards ensuring that school sites continue to be used for original charitable purposes, enabling schools with a religious character to engage with the changing educational landscape. It will give greater certainty to the sector, the Catholic Education Service, the Church of England Education Office and our dioceses that together serve nearly 2 million children today and are at the heart of communities across our villages, towns and cities. It ensures that the distinctive Christian ethos of Church schools will be protected in the long term by reassuring the sector that on conversion to an academy, the nature and purpose of the trust deed of the school site will continue to be preserved if the academy needs to relocate. We therefore wholeheartedly support this amendment.

[Baroness Pinnock (LD)]

My Lords, I concur with and support entirely the comments made by my noble friend Lord Stunell and the noble Earl, Lord Lytton, about the amendments in this miscellany transferring the building safety regulator from the Health and Safety Executive. I hope the Minister will be able to give us a very clear reason why this change is being made in the Bill—indeed, why it is being made at all.

I want to focus my comments on Amendment 467F. It is a good job I am speaking after the right reverend Prelate the Bishop of Chelmsford, because it was not at all clear to me that that is what it is about. That is the problem with this group of government amendments; as I said earlier, a miscellany of issues has been put together because this is a levelling-up Bill and we can throw anything in. My guess was that it came from the Schools Bill, but reading the amendment without any explanation, it was not clear at all, so I have a few questions to put to the Minister.

First, can she assure us that the comments of the right reverend Prelate the Bishop of Chelmsford are accurate and this is entirely about schools with religious foundations, because that is not clear? In fact, I have a series of questions so that I can understand what the Government are seeking to achieve. Having been a school governor for very many years, I know that it is important that land use for schools is clear—whether they are part of a trust or a local authority—because otherwise future changes are very difficult. I speak from the heart in that regard.

This amendment puts forward four conditions that must occur. The heading of the new paragraph is “Compulsory transfer to trustees”, which is what first made me think that this perhaps needs more questioning. The idea is that a local authority has some premises, and an academy or trust has some, and they can do a swap. As this is to be a compulsory swap, what local consultation will there be and will it be a democratic decision? The implication is that it will not be a democratic decision of the local authority; it will be a compulsory land—or premises—swap. That is one issue on which I would like an answer. The second is, what if the premises to be exchanged are in a different location? If a school becomes located in a different part of the borough, what will that mean for the provision of school places within that council area? Would planning consent be required for schools to be relocated? Who will pay local authorities’ costs for the transfer? What if one set of premises was of higher value than the one that a school is taking over? How does that work? There is a series of questions to be answered. The Government had directed local authorities to sell their assets to help fund local services. What if the set of premises had been earmarked for sale for the benefit of the local authority? How does that work?

The noble Baroness, Lady Bennett, asked similar questions to mine, and the right reverend Prelate the Bishop of Chelmsford explained that it is all about religious foundation schools. That is not clear in the Bill, and there is no Explanatory Memorandum. Apparently, there was one in respect of the Schools Bill; well, that is not very helpful to us.

Having just resigned as a governor of a voluntary controlled school which had a lot of land issues when it became an academy because of land ownerships and trusts, I really do want answers to this series of questions. As far as I am concerned, the building safety regulator and the compulsory transfer of land to trustees are two major issues that should not have been put in this Bill. They are nothing to do with levelling up.