Local Government Finances: London

Luke Taylor Excerpts

Wednesday 26th March 2025 Westminster Hall

[Luke Taylor (Sutton and Cheam) (LD)]

It is a pleasure to serve under your benevolent gaze, Ms Lewell. I thank the hon. Member for Leyton and Wanstead (Mr Bailey) for securing this important debate, and I point to my entry in the Register of Members’ Financial Interests, which shows that I still proudly serve as a councillor in my constituency in Sutton borough.

London faces a crisis in council funding unparalleled in living memory. We have a funding system that has been starved for years under previous Conservative Governments. As a result, our councils are now struggling to meet the growing demands of the communities they serve. This is not an exaggeration—this is an emergency. Since the onset of austerity in 2010, per capita Government funding has been reduced by more than a fifth, with boroughs now receiving 28% less funding per resident. Meanwhile, London’s population has skyrocketed, increasing by over 900,000 in the past 15 years. The city’s councils are crying out for a long-term funding solution.

Local government provides critical frontline services to our society. It is where people turn for help to meet their daily needs, and it is how communities are supported. Let us be clear: many councils that put in considerable effort to balance the books are not at fault here; they are simply not given enough financial support in the first place as statutory demands rise. It makes a mockery of our conversations about policy here in Westminster when people’s bins go uncollected and children are left waiting for their EHCPs. Our attention should be focused on helping local government, which is at the frontline of the state, to deliver the basics.

Outer London boroughs like Sutton, Kingston and Richmond are getting a raw deal on Government funding—in fact, some of the worst in the country. We see that in police abstractions and we see it in financial council funding.

[Andrew Rosindell]

The hon. Member mentions that the people of Sutton are getting a raw deal, and I am quite sure that they are. Does he think that the people of Sutton are getting good value for money from the precept we are paying to the Mayor and the Greater London Authority, or would he like some of that money put back into the local communities that he serves?

[Luke Taylor]

I thank the hon. Member for his intervention. Sutton has one of the lowest spends per resident by Transport for London of any of the London boroughs. We have no tubes, no overground, and half a tram stop in the very northernmost part of the borough, which shows how poorly we are served by TfL infrastructure, so I agree with the hon. Member’s point.

Outer London is being left behind, with some of the lowest support per capita. Our broken system means that inner London continues to be prioritised, despite the shifting needs across the city. There is a growing mismatch between funding allocations and local need, worsened by a funding formula that has not been updated since 2013. The data on which those allocations are based—population demographics and deprivation levels—are outdated and no longer reflect the reality on the ground. Research from the IFS in 2022 found a 17% gap between funding need and actual funding across London, the largest gap of any region in England. There is a temptation among many—we have all heard it—to paint London as a city where the streets are paved with gold and the challenges of poverty are less intense, which is nonsense. London has the second highest poverty rate in the country, second only to the west midlands. It has infrastructure problems, growing homelessness and millions of people suffering with the ever-rising cost of living, which is particularly pronounced in the context of London’s overheated property market.

The problem is diffuse, not concentrated in inner London. Indeed, poverty is shifting across London in ways we have not seen before, as working patterns change and jobs and industries ebb and flow. The outdated funding model forces outer London boroughs to tackle what are often characterised as inner London problems with far less support. The Minister must reassess the funding formula to ensure a fairer deal for boroughs like Sutton.

It is time to recognise the significant demographic and social changes that have taken place in London over the last 12 years. The homelessness crisis is an example of how poverty is shifting across London in unprecedented ways. Homelessness in my home borough of Sutton increased by 51% between 2018 and 2023. London is at the epicentre of the UK’s homelessness disaster, with the highest levels in the country. London Councils estimates that one in 50 Londoners are currently homeless and living in temporary accommodation. In Sutton every night 1,200 families are housed at the cost of the council. Nearly 90,000 children in the capital are homeless. That is one in every 21 children in London—at least one homeless child in every classroom.

As the Liberal Democrat MP for Sutton and Cheam, I am proud to live in a borough that is committed to housing the homeless where we can, but for the sake of such boroughs that hold that commitment it is essential that we address the gaps in support and provide long-term solutions to end homelessness for good. The financial strain currently put on councils to fight the crisis is utterly unsustainable. Boroughs are spending £4 million every single day on temporary accommodation, and those costs have shot up by 68% in just one year. If such trends continue, homelessness will bankrupt our boroughs and plunge our city back into the dark days of Victorian poverty and inequality. Municipal government will wither away and the fingertips of the state will succumb to financial frostbite, meaning we will no longer be able to reach out and rescue families from homelessness and communities from disintegration. Our city will be a plaything of the rich and famous—no longer a home, but a cold shell. Let us be under no illusion: that is what is at stake.

We are already seeing councils needing exceptional financial support just to survive. The housing revenue account is under unprecedented pressure, and with cuts to resources, capped social rents, rising inflation and ageing housing stock, London boroughs are being forced to cut £260 million over the next four years, making it harder to build new homes or to maintain the ones we already have. So we on the Liberal Democrat Benches urge the Government to urgently publish a cross-Whitehall plan to end all forms of homelessness and exempt groups of homeless people and those at risk of homelessness from the shared accommodation rate; ring-fence emergency funding for local councils for permanent accommodation of rough sleepers; increase the local housing allowance rates in line with inflation; and ensure sufficient financial resources for local authorities to deliver the Homelessness Reduction Act 2017. If we do not, I fear the consequences for the future liveability of our city will be existential.

Non-Domestic Rating (Multipliers and Private Schools) Bill (changed to Non-Domestic Rating (Multipliers) Bill)

Luke Taylor Excerpts

Consideration of Lords amendments
Tuesday 25th March 2025 Commons Chamber

[Munira Wilson]

I am very grateful for that intervention, because I gently remind the hon. Gentleman that his party won the election with less than 34% of the vote. I cannot remember what the turnout was, but—

[Luke Taylor (Sutton and Cheam) (LD)]

60%.

[Munira Wilson]

My hon. Friend tells me it was 60%. I cannot do the maths quickly enough—clearly, I need to do maths to 18—

[Luke Taylor]

One in five voters—one in seven adults.

[Munira Wilson]

There we go—basically, not many voters voted for Labour’s manifesto. I will happily let the hon. Gentleman continue to plough that furrow, because I have had that argument made to me before—for instance, in the petitions debate on VAT on private school fees just last week.

Planning and Infrastructure Bill

Luke Taylor Excerpts

2nd reading
Monday 24th March 2025 Commons Chamber

[Angela Rayner]

As my hon. Friend says, 10 colleges of excellence were announced as part of the £600 million funding and 60,000 new apprenticeships. By giving our young people opportunities, this is part of making work pay. It will be fantastic, and I hope my hon. Friend will be engaged in that process. My colleagues in Government will have heard what he said. As a fellow Greater Manchester MP, I feel that Greater Manchester definitely should be part of that process.

[Luke Taylor (Sutton and Cheam) (LD)]

To pick up on the tone of the comments made about blockers, I knock on many doors in my constituency and find the narrative about nimbys blocking housing and people not wanting homes built in their constituency to be untrue. People recognise the need for additional homes for themselves, their children and the growing population, but what they worry about is infrastructure. This Bill does not include mandatory infrastructure targets, and that is why residents are so sceptical. Given their inability to get GP appointments at the moment, with additional homes and additional demand they will struggle even more. How can we reassure them that those needs will be met in the future?

[Angela Rayner]

Let me be clear: I do not call people of this country the blockers. I do not see that when I am out and about; I never saw it during the general election campaign. People want this development. The hon. Member makes an important point about infrastructure; people often say that the infrastructure is not there. This Bill streamlines infrastructure. I think it goes some way towards doing the work. It is not everything; we have to do a lot of other things, like we have done with section 106, for example. Under the previous Government, we often did not get the benefit of that, because people wriggled out of their obligations. I appreciate the tone of the hon. Member’s remarks. This Government are going to make sure that we build the houses that people want, where they want them, with consultation and with the critical infrastructure that they need.

At the same time, we will unlock land for housing and infrastructure by reforming the compulsory purchase process, ensuring that important projects that deliver public benefits—such as many more social and affordable homes—are given the green light, and that compensation paid to landowners is not excessive.

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[Gideon Amos]

The hon. Gentleman is right to remind us of the letter left by the outgoing Labour Government for the incoming coalition.

We do need to tackle blockages in the system, and if those 13,000 homes in Somerset that have permission and are not being built were being built, we would already have eliminated the 10,000-plus housing waiting list in the county.

[Luke Taylor]

My hon. Friend is being very generous with his time. He is talking about planning permission being granted, but the homes not being built. In Sutton in 2023, I was a member of the planning committee that gave permission for the Victoria House site, which has lain dormant ever since. Permission was given for 74 homes, but they are not being built. It is a frustration for me every time I cycle past to see that potential not being realised. Does he agree that giving councils the power to take over sites that have permission but are not being built would be a really important part of delivering the homes that we need?

[Gideon Amos]

It is almost as though my hon. Friend had read a further section of my speech. That is exactly what we need to do in this country to unlock some of those sites.

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[Olly Glover (Didcot and Wantage) (LD)]

House building is essential to provide the homes that people need, but there are significant problems with our current approach to planning, and it is therefore welcome that the Government are giving time and attention to those topics.

My constituency and the areas surrounding it have seen 35% population growth in 20 years, yet the housing that has been built meets only some needs. South Oxfordshire housing association analysis highlights a serious shortage of social and affordable housing, particularly for one or two-person people households.

I have personally experienced the challenge of finding suitable and/or affordable housing, with very little to rent that is furnished. I appreciate that very few small violins will be played, but even as an MP on my salary, the place I have recently bought is wildly expensive, at nearly £300,000 for a small, two-bedroomed terraced house. In my case, building new housing has freed up an older house for me to buy, but the current market is not delivering for people on lower incomes.

Between 2012 and 2021, the Vale of White Horse local authority had the third highest net increase in dwellings as a proportion of their starting stock. I am proud that Liberal Democrat-led Vale and South Oxfordshire district councils have been proactive in developing a joint local plan, which has successfully combined meeting housing targets and five-year land supply requirements with gaining significant stakeholder support, for example from the Campaign to Protect Rural England.

The councils’ innovative and inclusive approach to consultation with the public meant that they were shortlisted for three national awards. They ran three stages of consultation to encourage as much engagement as possible. More than 5,000 responses were received from residents, parish councils and local businesses.

A key concern for my constituency is how any further increase in housing can be accommodated, given the dominance of lack of investment in infrastructure in recent years, leading to local concern about further housing. We need targets and measures for infrastructure, as well as housing, particularly given that local authorities do not have the powers or funding to deliver health and major transport schemes. The Bill does not remedy that.

[Luke Taylor]

My hon. Friend mentioned the capex costs of the infrastructure. Is it not also important that local councils and NHS integrated care boards are given increased budgets to maintain staffing for those facilities? There is no point in building a GP surgery if it cannot be staffed.

[Olly Glover]

My hon. Friend is right. Buildings need to be staffed, otherwise we will end up like the episode of “Yes Minister” with an empty building.

Key infrastructure needs and asks for my constituency include the Didcot-Culham relief road, with better walking and cycling provision than in the current plan. It is a controversial scheme, but I have given it my backing. They also include walking and cycling investment in new and existing areas of the towns; a new railway station at Grove; Didcot to Oxford line electrification; and health capacity to keep up with our growing population, particularly a GP surgery at Great Western Park in Didcot. That is why it is so critical that we link housing targets to targets and measures for wider infrastructure. Communities need housing, but they also need all the accompanying public and private amenities and services that are essential for happy and well-functioning communities.

Grenfell Tower Inquiry: Phase 2 Report

Luke Taylor Excerpts

Wednesday 26th February 2025 Commons Chamber

[Angela Rayner]

My hon. Friend is absolutely right to highlight that just about every system failed, as I outlined in my statement. Everybody needs to understand what led to what happened on that night in Grenfell. Action has been taken, and the regulatory system is not the same as the one in place back in 2017. There have been a number of Acts of Parliament, which have meant that there is more instruction and more legal requirements for building safety. We will continue to update that, and we have legislation going through at the moment in Parliament to hopefully deal with social landlords and give renters more protection, too. We know there is much more for us to do, and I hope that we will continue to work across the House to put safety at the heart of everything we do. The legacy of Grenfell should be that we take notice and do not just say warm words at this Dispatch Box, but take the action needed to protect people.

[Luke Taylor (Sutton and Cheam) (LD)]

First, may I thank the Deputy Prime Minister for bringing the report forward and the Government for accepting all its recommendations? I echo the points from around the Chamber that our thoughts today are with the survivors and the families of the victims. As is often said, justice delayed is justice denied. Will the Deputy Prime Minister please give a timeline for when the companies mentioned—Arconic, Kingspan and Saint-Gobain or Celotex—and the testing firms, which covered up these failed results, will face justice for their dishonesty and mis-selling, which so tragically contributed to the deaths of 72 innocent residents?

[Angela Rayner]

I echo what the hon. Gentleman says about where all our thoughts and sentiments are today in the Chamber. I spoke about justice being delayed, and it is awful that people still have not got justice and are fearful that they will never receive justice. The police have said that this will take time. This is one of the largest and most legally complex investigations ever conducted by the Metropolitan police, with more than 180 officers and staff dedicated to it. We will continue to support them in their important work. The police have recently confirmed that they have everything they need to do that work, and we will continue to support their efforts. I spoke in my statement about procurement and making sure that we can do something on construction products. My hon. Friend the Building Safety Minister is taking that forward.

Local Government Finance

Luke Taylor Excerpts

Wednesday 5th February 2025 Commons Chamber

[Jim McMahon]

There are, understandably, many criticisms of council tax. It is accepted that it is a fairly regressive tax in terms of the relationship between the ability of a household to pay versus a property’s value, but in the end it is a reliable tax that is understood by the taxpaying public. The framework of council tax will be maintained, in the same way as business rates, but that does not mean that we cannot do more to make it fairer. The best way to make it fairer in this settlement is for the Government to play their part. What we have seen over the past 14 years is that, despite an acceleration in council tax increases, councils have still found themselves impoverished: they cannot raise enough money locally, whatever they do, to fund the demand for local public services. We clearly see the role of the Government as an equaliser to the system. Taking into account the ability to raise tax at a local level, by providing a top-up the Government can ensure that every area gets decent local public services, and we can begin to get some fairness into the system. I take my hon. Friend’s point entirely, however, and I look forward to the work of the all-party parliamentary group.

[Luke Taylor (Sutton and Cheam) (LD)]

I echo the call for a replacement for the council tax system. We on the Liberal Democrat Benches have called for that for years. Please will the Minister and the Government consider bringing forward plans that retain the power for local councils to decide levels of taxation, but make it a much more progressive model of taxation?

[Jim McMahon]

I cannot commit to that today. What I can do is to commit, from a political point of view, that the Government are willing to work cross-party and through APPGs to understand the weight of the issue and the potential solutions. I will be honest, though: we need to manage expectations on whether we can get consensus in this place on a new form of council tax or local property tax, but that does not mean we are not willing to listen to arguments.

New Homes (Solar Generation) Bill

Luke Taylor Excerpts

2nd reading
Friday 17th January 2025 Commons Chamber

[Cameron Thomas (Tewkesbury) (LD)]

I pay tribute to my neighbour and hon. Friend the Member for Cheltenham (Max Wilkinson) for so boldly taking up this cause. His so-named sunshine Bill, which to my mind reflects his own disposition so brightly—as though it was his own glowing cranium—[Laughter.]

[Luke Taylor (Sutton and Cheam) (LD)]

I may only speculate what it was that attracted my hon. Friend to discuss a Bill regarding the promotion of shiny surfaces atop well-built structures—we can only guess. Does he agree that as this Bill moves forward, it is absolutely essential that the Government work across parties to build a consensus, including all those experts and those passionate in this subject, and to work together to ensure that it is successfully delivered for the betterment of all our residents?

[Cameron Thomas]

My hon. Friend has so eloquently put across the pragmatism that we can enjoy from Liberal Democrats in working across parties for the benefit of our constituents, and I thank him for that.

This undertaking by my hon. Friend the Member for Cheltenham has been brought up consistently on doorsteps across the Tewkesbury constituency in recent years. Widely considered to be a blindingly obvious antidote to rising energy bills and the phasing out of fossil fuels, people have tended to ask, with an exasperated tone, why on earth new homes are not built with solar panels by mandate. As my hon. Friend has described, the public roundly support such measures, with one poll registering 70% support. Whether or not the New Homes (Solar Generation) Bill goes to a vote today, I hope that the Government will recognise the alignment with their environmental pledges and that they will take the ball and run with it.

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[Claire Hughes (Bangor Aberconwy) (Lab)]

I thank the hon. Member for Cheltenham (Max Wilkinson) for bringing this sunshine to the Chamber today.

The horrific wildfires raging in California and the recent flooding that we saw provide yet more reminders that urgent action is needed to tackle the climate and nature emergency. I am proud that, under this Labour Government, the UK is once again showing climate leadership. We know that we cannot tackle the housing crisis without tackling the climate crisis. Nor can we achieve our core growth mission or increase living standards without acknowledging the huge impact of climate change.

The built environment is responsible for 40% of emissions, and decarbonising our housing stock is essential. As a member of the all-party parliamentary group on ClimateTech, which is chaired by my hon. Friend the Member for Exeter (Steve Race), I was pleased to attend a recent event in Parliament, where we met start-ups working on innovative solutions to decarbonise the built environment. The Government’s steadfast commitment to this agenda and to policies such as Great British Energy and the warm homes plan were warmly welcomed by the businesses I met.

Turning to my constituency, I want to share an example of how a local business can use the expansion of rooftop solar and of low-carbon heating and energy generation to help our Government achieve their mission of stimulating economic growth and raising living standards in all parts of the country. I recently visited a former Marks and Spencer on Mostyn street in Llandudno, which the owners are transforming into a massive indoor entertainment centre. That is exactly the kind of development that places such as Llandudno need. The owners have installed a huge solar array, which will save the business £32,000 a year and about 25 tonnes of carbon. For me, the most exciting part of that development is that the installation was part-funded by the local authority and done by a local business. We do not want just the cleaner, cheaper energy that rooftop solar will provide; we also want the jobs.

[Luke Taylor]

My hon. Friend speaks about precisely the jobs that the Bill would generate. I declare an interest in that between speeches I have been emailing to arrange the installation of a solar array on my home in the next couple of weeks. Although I will not benefit from the reduction in the cost of installation and of the panels themselves that the Bill would provide by boosting the market and demand for those skills, does she agree that the economic benefit and the skills brought to our residents are another incredibly positive reason why we should back the measures in the Bill and ensure they are implemented as soon as possible?

[Claire Hughes]

I absolutely agree, and that is why we need to get this right, not just on rooftop solar but on the skills for retrofitting and in low-carbon heating in general. A lot of work needs to be done to ensure that businesses have the skills so that we can expand and do what we need with this whole agenda.

We need to ensure that local businesses benefit from the jobs and supply chain opportunities that the expansion of low-carbon heating and rooftop solar would provide, because tackling climate change and increasing living standards go hand in hand. It is critical that we get this right across the piece.

Grenfell Tower Inquiry

Luke Taylor Excerpts

Monday 2nd December 2024 Commons Chamber

[Sir Bernard Jenkin]

I will be as quick as I can, Madam Deputy Speaker, but I am extremely grateful for the hon. Gentleman’s question, because that was a failure of regulation. The crucial point is this. In other safety-critical industries, such as the civil aviation, rail and marine sectors, there is no ban on the private sector being selected to perform inspections. Employees of airlines, of aircraft manufacturers and of aircraft engine manufacturers perform the inspections, but they are independently regulated, overseen and certified by the Civil Aviation Authority. The fact that they are employed by the airlines or by commercial interests does not make them incapable of objective judgment. The whole aviation sector flies incredibly safely on the basis of aircraft being inspected not by Government inspectors or public employees, but by the private sector.

[Luke Taylor (Sutton and Cheam) (LD)]

My experience in the aviation industry includes overseeing and being part of the record-keeping process for inspections. Does the hon. Member agree that the requirement to record and store all successful and unsuccessful testing results would resolve some of the issues that we saw in the Grenfell disaster, where unsuccessful test results were hidden and not made accessible to the public?

[Sir Bernard Jenkin]

I completely agree. The record keeping of airlines, air engine manufacturers and aircraft maintenance companies has to be absolutely meticulous. It is inspected by the CAA, but the information originally comes from inspections conducted by people who are employed by the private sector. I think the hon. Gentleman agrees that we need to tackle the regulation, not indulge in shorthand for saying that anybody making a profit must be guilty. I abhor the idea of people making a profit at the expense of safety, but that is not what happens in other industries.

The success of independent accident investigation and safety investigation branches in other sectors speaks for itself. Aviation and rail safety has much fuller public confidence and a lower accident rate under such models, delivering safety improvements faster, more effectively and at lower cost than traditional public inquiries. Reforming building control would ensure that all inspectorates operate under consistent and rigorous oversight, regardless of whether they are in the public or private sectors.

Our proposals are not just about learning from the Grenfell tragedy, but about preventing the next disaster. The inquiry shows the systemic failures in building safety and regulation that led to an avoidable tragedy. I regret to have to warn the House that if we do not get this right, and do not finish working on what the inquiry has presented to us and fill in the gaps, there will one day be another Grenfell, just as Grenfell was a repeat of earlier safety failures. We have an obligation to get this right finally for the Grenfell community, for the memory of those who died and for future communities. The Government now have the opportunity to follow up the inquiry, to build on its findings and to put in place institutional arrangements that will embed learning and safety improvement in residential building management in a comprehensive safety system that matches those of other safety-critical industries.

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[Luke Taylor (Sutton and Cheam) (LD)]

I associate myself with the remarks of the Deputy Prime Minister, who did well to capture the tragedy that we all experienced so many years ago. The tragedy of Grenfell Tower will forever remain in our collective memory. On the devastating night of 14 June 2017, 72 lives were lost and many more were impacted forever. The events of that night left a deep wound in London’s history, physically and mentally. I extend my deepest sympathies to the victims, the families and all those affected. The fire changed their lives in unimaginable ways.

Seven years on, justice for the victims is painfully overdue, yet thousands in the UK still live in buildings wrapped in dangerous flammable cladding. Of the nearly 5,000 buildings identified as having dangerous cladding, less than half have begun work and only a third have completed it. Between 4,000 and 7,000 buildings are still unidentified, highlighting the absolute failure of the last Government to get a grip on the crisis. That failure leaves an alarming number of buildings and residents still at risk. Just days before the publication of the final report in August, a fire broke out at a tower block in Dagenham. Thankfully, there were no fatalities, but more than 200 firefighters battled flames that spread rapidly due to non-compliant cladding.

These unsafe buildings are ticking time bombs. Residents in London live in constant fear of another disaster. Across London, including in my constituency of Sutton and Cheam, tower blocks still possess non-compliant cladding, which could pose a serious risk to residents. The previous Government mandated that local authorities must make these buildings safe; however, crucially, they provided no funding to support that, at a time when local authorities were already facing severe underfunding. As a result, millions of pounds were added to council housing revenue accounts as an unplanned financial burden. Worse, Government assistance through various schemes was exclusively directed towards leaseholders, leaving local authorities and tenants without support.

Although I welcome this new Government’s commitment to the replacement of all flammable cladding by 2029, urgency is of the utmost importance. It is essential that all dangerous cladding is removed as soon as possible and that leaseholders should not be required to pay a penny towards these necessary safety improvements. This work is as a result of the failure of builders, product manufacturers and regulators to ensure that the buildings that residents live in are safe. The report is utterly damning on the failures of the industry and the criminal negligence as a result of the failed safety tests that were hidden. The industry focused on contrivance and profiteering, instead of residents’ safety. We must all work to ensure that the mistakes of the past are never repeated. Another Grenfell must never happen. This tragedy will always serve as a stark reminder of the devastating consequence of neglecting safety and justice for local authority residents. Justice for the victims of Grenfell means a commitment to immediate action to implement the 58 recommendations of the phase 2 report. That is not just for them, but for every community still at risk.