Oral Answers to Questions
Michael Gove Excerpts(2 years, 10 months ago)
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Alexander Stafford (Rother Valley) (Con)
The Secretary of State for Levelling Up, Housing and Communities and Minister for Intergovernmental Relations (Michael Gove)
I am grateful to the hon. Member for Bootle (Peter Dowd) for the brief, tantalising preview of what is to come. The levelling-up fund is allocated according to objective criteria, including value for money, strategic fit, deliverability and the characteristics of place. I am therefore delighted that places such as Rotherham, Liverpool and Newcastle upon Tyne have already secured funding through our levelling-up funds, which include the towns fund, the levelling-up fund itself and the previous local growth fund.
Peter Dowd
A bit more tantalisation here: how can the Government’s levelling-up allocations possibly be equitable and transparent when the Government’s own index of multiple deprivation indicates that the constituencies of the Secretary of State for Digital, Culture, Media and Sport and the Secretary of State for Health and Social Care—numbers 254 and 268 of the 310 on the index—received £27 million and £14.5 million respectively, while an area in the top 0.5% of the index, which includes my constituency, where my constituency office is based, received nothing? The question is: is that equitable, transparent and fair? Will the Secretary of State or a Minister meet me and my neighbour, my hon. Friend the Member for Sefton Central (Bill Esterson), to discuss our concerns?
Michael Gove
It is certainly equitable, transparent and fair, and should the hon. Member wish, there is an explanatory memorandum on gov.uk, which would take him, as it would any hon. Member, through the process by which funds have been allocated. I should say that the whole Liverpool city region received £37.5 million through the levelling-up fund, but I would be delighted to talk to him and the hon. Member for Sefton Central (Bill Esterson) to ensure that future bids can land carefully, safely and successfully.
Chi Onwurah
In Newcastle, we have been waiting seven years—seven years—for real-time integrated bus information of the type that Londoners take for granted. Now we hear that the £3 billion bus improvement funding is less than half that, and much of that is going on zero-emission buses, meaning even less money for our bus improvement plan, which includes real-time information. Will the Secretary of State commit to levelling up bus transport in the north so that we are no longer under-served, overcharged and underinformed?
Michael Gove
Having spent some of the happiest months of my twenties on buses in Newcastle, I can absolutely sympathise with the hon. Member. It is the case that her constituency received £20 million from the levelling-up fund, but I look forward to working with her, the North of Tyne Mayor and Newcastle City Council to see what more we can do to improve public transport.
Alexander Stafford (Rother Valley) (Con)
I welcome the £11 million from the levelling-up fund that has already gone to Rother Valley, including £4.5 million to transform Maltby, and I am glad that Rotherham Council is again putting in another bid for Rother Valley to get another £9 million for Dinnington High Street. Can the Secretary of State tell me what future funding pots will be available for other parts of Rother Valley, so that the whole of the constituency can be levelled up, especially the likes of Thurcroft, Swallownest and Kiveton Park?
Michael Gove
My hon. Friend is right that there has already been significant investment in Rotherham. Of course, one of the beneficiaries of that is the shadow Defence Secretary, whose impassioned advocacy on behalf of his constituents has not gone unheard; however, there are a number of communities in Rother Valley. The community ownership fund, which we will be expanding, is just one route, and I hope that my hon. Friend will be able to take it with me to ensure that the villages and communities that he serves get the services they deserve.
David Mundell (Dumfriesshire, Clydesdale and Tweeddale) (Con)
Does my right hon. Friend share my concern that smaller and rural local authorities often do not have the capacity to deal with complex application processes? What steps will he take to address that concern?
Michael Gove
My right hon. Friend is right. He represents, I think, the largest, and certainly the second-most attractive constituency in Scotland, which covers three excellent local authority areas. There are excellent local councillors in all of them but, essentially because they lack the economies of scale, we need to work with those local authorities to ensure that, from Lockerbie to Moffat, the communities that deserve investment secure it.
Mr Clive Betts (Sheffield South East) (Lab)
I am sure the Secretary of State will agree that the success of levelling up will depend in large part on how much money is available and how it is distributed. I do not know whether he has had a chance to look at the recent research by Teesside University, which shows that over the past seven years the amount of money coming through EU funding and the local growth fund has been £2.1 billion a year, while the amount for the next few years from the shared prosperity and levelling-up funds is projected to be only £1.5 billion a year—a significant cut. In addition, the cuts in his own Department’s funding have hit the poorest local authorities the hardest, so when he produces his levelling-up White Paper, will he produce a comprehensive list of spending per head by region for each Department and show how the policies he is advocating will change those funding levels for the benefit of the poorest areas, which have suffered most in the past 10 years?
Michael Gove
I would gently contest the argument that the poorest areas have suffered most in the past 10 years, but the Chairman of the Select Committee makes an important point about transparency in the allocation of funding, and I look forward to working with him to ensure just that.
Andrew Bridgen (North West Leicestershire) (Con)
Given current media speculation about the allocation of levelling-up funding, and given that I am a Member of this House who has unfortunately had to vote against the Government on several occasions recently, will the Secretary of State reassure me on whether there is any point in North West Leicestershire reapplying for levelling-up funding? Does he agree that, were Coalville to be successful in the next round of bidding, it would demonstrate that the Government are not engaging in pork barrel politics?
Michael Gove
My hon. Friend, like me, abjures the whole idea of pork barrels. What we both believe in is allocating funding on the basis of merit and need. I can assure him that he has been in the same Division Lobby as me more often, I believe—although I stand to be corrected by the Whips—than the deputy leader of the Labour party, the shadow Defence Secretary, the shadow Work and Pensions Secretary, the shadow Culture Secretary or the shadow Social Care Secretary, all of whom have benefited from levelling-up funds. If a requirement for Government funding were voting with the Government, I fear that the deputy leader of the Labour party, my dear friend, would have lost out. However, I am delighted that her constituents in Ashton-under-Lyne have benefited from our funding, because we are committed to levelling up and uniting the country, irrespective of political colour.
Alex Norris (Nottingham North) (Lab/Co-op)
Analysis of levelling-up funding published recently by NPC—New Philanthropy Capital—found that, despite strong public support, homelessness is not being properly addressed. It found that communities with the highest concentrations of black, African and Caribbean communities fared poorly, and that four of the most deprived communities missed out entirely. Both the Secretary of State and the Under-Secretary of State for Levelling Up, Housing and Communities, the hon. Member for Harborough (Neil O'Brien) have sought to make a supposed joke of this, but I do not think it is laughing matter that while poorer communities have missed out, the constituencies of at least three Cabinet Ministers, which are considerably more affluent, were successful in their bids. Beyond the jokes and the spin, does the Secretary of State honestly expect the House to believe that the Government have acted equitably rather than defaulting to the usual approach of pursuing narrow self-interest?
Michael Gove
I cannot see how it would be in the narrow self-interest of the Government, if operating on partisan lines, to have given the hon. Gentleman’s constituency £18 million for transport improvements from the levelling-up fund. These are not jokes; these are serious matters. We work with people across this House, including and especially in the Labour party, to ensure that funding goes where it is required. Lying behind the allegations made by him and others is a suggestion that somehow civil servants would conspire with Ministers deliberately to favour constituencies on the basis of political colouration.
My new opposite number, the hon. Member for Wigan (Lisa Nandy)—I offer her my congratulations on her elevation—recently wrote to me to ask whether we would make transparent the basis on which we allocate that funding. We have: it is published on a website called gov.uk. Google can sometimes be helpful to all of us.
Patricia Gibson (North Ayrshire and Arran) (SNP)
Notwithstanding the Secretary of State’s earlier comments, I am sure that he would never accuse a fellow Tory MP of misleading the House. Will he therefore comment on the veracity of the specific remarks made by the hon. Member for Hazel Grove (Mr Wragg) about threats made to Tory MPs to withdraw investment from their constituencies and release negative press stories as punishment for supporting a no-confidence vote in the Prime Minister? Will he outline what investigations he intends to undertake to look into the abuse, or possible abuse, of levelling-up funds?
Michael Gove
There is no evidence of any abuse of levelling-up funding. If anyone has it, I hope that they will bring it to the House’s attention. As for any suggestion that someone may be on the receiving end of lots of negative press stories for voting against the Government, as someone who is solid, 100%, totally behind the Prime Minister and yet also on the receiving end of a plethora of negative press stories, I can tell the hon. Member that there is no correlation between the two.
Dame Caroline Dinenage (Gosport) (Con)
On every single criterion, my Gosport constituency should qualify for levelling-up funding, but our recent bid for funds was unsuccessful. Quite simply, we have a small council that lacks the resources to compete with the big guys for the funding, and there is also a strong feeling that our south coast location could disadvantage us. If, as the Secretary of State said, impassioned advocacy is a recipe for attracting funding, can he please give me a glimmer of hope for the future? Will he tell me that the levelling-up White Paper will also offer us hope, and when it will be published?
Michael Gove
Few people put more passion into their advocacy than my hon. Friend. While in levelling up we must have a proper focus on the midlands and the north, other parts of the United Kingdom, including the area around the Solent—Gosport, Portsmouth and Southampton—also require investment. I will work with her to ensure that that investment is forthcoming.
Dr Philippa Whitford (Central Ayrshire) (SNP)
The Secretary of State for Levelling Up, Housing and Communities and Minister for Intergovernmental Relations (Michael Gove)
The Government are committed to ensuring that devolution works across the United Kingdom. We hope to deepen and extend devolution within England.
Dr Whitford
Unfortunately, the levelling-up fund is already being used to bypass the devolved Governments, and the United Kingdom Internal Market Act 2020 could enable UK Ministers to overrule the Scottish and Welsh Parliaments’ policy decisions. Does the Secretary of State not recognise that riding roughshod over devolution will force the people of Scotland and Wales to choose between a return to direct rule by Westminster and controlling their own future through independence?
Michael Gove
I appreciate the point and the way in which the hon. Lady makes it, but it is the case that a number of constituencies in Scotland received money from the levelling-up fund, and that money was allocated on the basis of bids supported by Scottish National party MPs and championed by Scottish National party-led councils. I enjoy working with the Scottish Government to ensure that we can work collectively together. Whatever our views on constitutional questions, the fact that we can work together on such issues is a credit to those Ministers in the Scottish Government who want to take that pragmatic approach and to her parliamentary colleagues who champion funding for their constituencies.
Virginia Crosbie (Ynys Môn) (Con)
Freeports are one of the ways this Government are levelling up across the devolved Administrations, and I am delighted that there is to be at least one freeport in Wales. Can the Secretary of State update the House about ongoing discussions with the Welsh Government and when we can expect the Welsh freeport bidding prospectus to be published?
Michael Gove
I can confirm that we have had very fruitful negotiations not just with the Scottish Government, but with the Welsh Government. I want to place on record my thanks to Vaughan Gething and other Ministers in the Welsh Government, and I hope that we will be able to make an announcement shortly about the process by which we will allocate freeports in Wales. At the moment the proposal is for one freeport in Wales, but I recognise that both south Wales and north Wales have significant potential for freeports in the future, and there are few better advocates, in particular for Anglesey, than my great hon. Friend.
Patricia Gibson (North Ayrshire and Arran) (SNP)
The current Tory leader in Scotland and two former Tory leaders in Scotland, alongside every single Tory MSP, are calling for the Prime Minister to resign after their Scottish branch office leader was sneered at by the Secretary of State as just a man “in Elgin” and the Leader of the House decried him as a “lightweight”. In view of this, can the Secretary of State clarify how the self-declared Prime Minister of the Union will increase devolution while Scots calling for his resignation believe he is actively harming the Union?
Michael Gove
I am terribly sorry but I did not realise or appreciate that saying someone came from Elgin was an insult as far as the SNP is concerned; in my view, it is a compliment.
Mr Richard Holden (North West Durham) (Con)
The Secretary of State for Levelling Up, Housing and Communities and Minister for Intergovernmental Relations (Michael Gove)
We welcome and encourage the steps the Church is taking to make more of its land available for affordable housing. Since the Archbishops’ debate in March 2021 and the publication of the report from the Archbishops’ Commission on Housing, Church and Community, my officials have engaged with representatives to consider how we can provide support for that, and that is expected to continue.
Richard Graham
The Secretary of State will know that the Diocese of Gloucester has been doing a lot to help implement the important report from the Archbishops, “Coming Home”. I particularly want to thank Bishop Rachel and all involved for their work in funding the national housing executive and delivering projects such as St Aldate’s and Hardwicke. The Secretary of State will however also know that housing is a complicated issue for the Church and the draft legal reforms on ownership are stuck with the Church Commissioners and the Archbishops’ Council, so what more can my right hon. Friend do, perhaps in conjunction with the Second Church Estates Commissioner, to make sure that the Church of England lives up to its leaders’ social mission and helps provide more space for homes for some of those most in need?
Michael Gove
I am tempted to quote from the Gospel, John 14:2:
“In my Father’s house are many mansions”,
and it is certainly the case that we want to work with the Church of England to unlock more land and support its drive to secure greater access to affordable housing. I have recently been in touch in particular with the Bishop of Kensington, Graham Tomlin, and I know he will be taking forward further conversations in order to achieve the goals he and I and the Second Church Estates Commissioner share.
Wera Hobhouse (Bath) (LD)
The Secretary of State for Levelling Up, Housing and Communities and Minister for Intergovernmental Relations (Michael Gove)
Active travel is central to levelling up the nation’s health, air quality, social connectedness and prosperity. The Government committed £710 million of new active travel funding at the spending review and are establishing active travelling to support places. The White Paper will discuss transport’s contributions to levelling up, including of course active travel.
Wera Hobhouse
I thank the Secretary of State for that answer. He knows of course that travel accounts for nearly a third of the UK’s carbon dioxide emissions, with the majority coming from petrol and diesel vehicles. In my constituency of Bath the council is working very hard to get to net zero by 2030, and active travel is a key part of that. So in the upcoming planning reforms will the Secretary of State include the 20-minute neighbourhood principle, which ensures that people can access services and goods within a 20-minute return walk?
Michael Gove
That is a very good principle—I completely agree with it. For those who do not follow our proceedings with the same intensity as top political commentators and all the rest of it, active travel refers to walking and cycling. I completely agree with hon. Lady. What we want to do is create communities where people can walk or cycle to all the facilities and amenities that they need. That is one reason why I am such a great fan of the work of His Royal Highness the Prince of Wales and the developments for which he has been responsible, as they embody that principle more effectively than the work of almost anyone I know.
Tom Hunt (Ipswich) (Con)
Grassroots sports clubs and facilities are crucial to levelling up in some of the most deprived parts of Ipswich, whether it is a BMX club in Gainsborough, a boxing club in Nacton or Ipswich Vale Exiles FC: Maidenhall and Chantry. Will the Secretary of State confirm today that that is something that will be acknowledged in the White Paper and that when it comes to the second tranche of the levelling-up fund there is a possibility for it to be a grassroots clubs and facilities fund to back levelling up in such an important way?
Michael Gove
My hon. Friend is absolutely right. It is the case that the levelling-up fund and the community ownership fund are oriented towards ensuring that cultural and sporting activities can be supported. I should remark that just over a week ago I had the pleasure of visiting Bury where, through the community ownership fund, we could give the fan-led consortium the resources needed to take Gigg Lane back into its ownership. Only a few days later, the hon. Member for Bury South (Christian Wakeford) defected to the Labour party. Once a Shaker, always a Shaker, I was told in Bury, but there are some people who are steady on parade and there are some people who shake it all about. I think in Bury we prefer those who are steady on parade, rather than those who wobble under pressure.
Mr Speaker
And Gigg Lane has the finest playing surface. We now go to topicals, with Paul Blomfield.
Paul Blomfield (Sheffield Central) (Lab)
The Secretary of State for Levelling Up, Housing and Communities and Minister for Intergovernmental Relations (Michael Gove)
On Thursday this week, it is, as the House knows, Holocaust Memorial Day. My hon. Friend the Minister for Levelling Up Communities will lead a debate on that day. It is important that we all recognise that the work of the Holocaust Memorial Day Trust and the Holocaust Educational Trust are absolutely invaluable, not just in challenging the unique evil of the holocaust and the poison of antisemitism but in reminding us that we need to be vigilant against prejudice of all kinds: anti-Muslim hatred, the persecution of Christians and any prejudice that is based on religion, ethnicity or any of our protected characteristics.
Paul Blomfield
I certainly endorse the comments by the Secretary of State in relation to Holocaust Memorial Day.
The latest figures for Sheffield from February 2020 to April 2021 show a 46% increase in the number of private renters claiming housing benefit, because wages are simply not keeping up with rising rents. Some 28% of private rentals in the city contain category 1 hazards, which involve serious risk of harm, compared with just 4% of social housing. As the cost of living crisis deepens and energy bills rise, what are the Government doing to alleviate pressure on private renters and when this year will the Secretary of State publish the rental reform White Paper?
Michael Gove
The hon. Gentleman makes a very good point. It is the case that there are a number of people in the private rented sector who are not getting the deal that they deserve, both regarding the level of rent and the decency of their homes. I look forward to working with the hon. Gentleman on that.
Mr Laurence Robertson (Tewkesbury) (Con)
Matthew Pennycook (Greenwich and Woolwich) (Lab)
Would the Secretary of State give the House a clear and categorical assurance that if he cannot ultimately extract enough money from industry finally to fix the building safety crisis he will not allow the Chancellor to raid his Department’s budgets, including funding already allocated for new affordable homes, to make up the shortfall?
Michael Gove
I am grateful to the hon. Gentleman for giving me an opportunity to update the House on the conversations we had with developers last Thursday. Those conversations were cordial and constructive, but we were also clear about the obligation developers have. I am confident that they will meet it.
Marco Longhi (Dudley North) (Con)
David Johnston (Wantage) (Con)
Michael Gove
We absolutely will consider that. I know there are innovators in my hon. Friend’s constituency who are leading work in that precise area, so I look forward to working with him and those in his constituency to achieve just that goal.
Jessica Morden (Newport East) (Lab)
Martin Vickers (Cleethorpes) (Con)
Dame Diana Johnson (Kingston upon Hull North) (Lab)
Michael Gove
I absolutely will do that. Although the White Paper will include a number of proposals to help to reduce health inequalities, as Professor Michael Marmot’s report and work—alongside the all-party group’s work—have demonstrated, significant work is required to be done on everything from obesity to cramped housing in order to deal with those issues.
Dr Luke Evans (Bosworth) (Con)
Almost a year ago, the Minister for Housing, who has responsibility for planning, wrote to Liberal Democrat-run Hinckley & Bosworth Borough Council to say that it does not have an up-to-date local plan and to ask it to do more to get it updated. In his answer to my hon. Friend the Member for North Wiltshire (James Gray), the Minister said that part of the problem is that areas become open to speculative developments. One way to strengthen the position is by having a neighbourhood plan, as in vanguard places such as Market Bosworth. The problem is that they are being ridden roughshod over. Will he look to strengthen the role of neighbourhood plans in future, and failing that, in the meantime, will he encourage Hinckley & Bosworth Borough Council to get its plan sorted and up to date?
Andrew Selous (South West Bedfordshire) (Con)
Will the Secretary of State take steps to make sure that when we build very large new housing developments, it is easy for new residents to get into their local surgery or new health centre?
Michael Gove
My hon. Friend makes a very important point. We absolutely need to make sure that easy access to infrastructure and public services is part of significant housing developments, and I look forward to working with him to ensure that that is true in South West Bedfordshire and elsewhere.
Clive Lewis (Norwich South) (Lab)
In my city of Norwich, we have had less levelling up and more vital services simply levelled. Will the Secretary of State stop fobbing us off with insufficient, ad hoc pots of money and ensure that sustainable, long-term funding is given to my city and county councils, the real engines of any levelling-up agenda?
Ronnie Cowan (Inverclyde) (SNP)
The Secretary of State cannot fail to have noticed the number of questions in this session that have centred on the White Paper. Councils around the UK want to know what the timetable is, what the criteria are and when it will be published. Inverclyde wants to apply for this levelling-up funding. Will he help me? Does he want to visit Greenock, so I can show him the projects?
Michael Gove
I have spent many happy hours in Greenock and am looking forward to many more. I imagine that time there can only be enhanced, whether in Cappielow or anywhere else, with the hon. Gentleman. The key thing about the levelling-up fund is that constituencies across the United Kingdom, including in Scotland, have benefited. I look forward to working with him and others to ensure that—[Interruption.] As a Morton fan, he will appreciate that patience is a virtue.
Richard Fuller (North East Bedfordshire) (Con)
The forthcoming levelling-up White Paper is an opportunity to undo the imbalance in investment in active travel networks between towns and urban areas, which get the lot, and villages, which get very little to connect them. Will my right hon. Friend arrange for a meeting between me and one of his Ministers, together with members of Potton Town Council and Sandy Town Council, to talk about their active travel network?
Matt Western (Warwick and Leamington) (Lab)
The Secretary of State will be aware that Warwickshire County Council is keen to have some sort of county unitary deal, but he will also be aware that Warwick District Council and Stratford-on-Avon District Council recently voted for a combined council—probably with the intent of a unitary one as well. Should it not be down to not the councillors or the Secretary of State, but the public to decide the future of local government across our country?
Michael Gove
I welcome the moves across Warwickshire to consider how services can be delivered even more efficiently as part of the economic success story that is the greater west midlands. In particular, I commend the leadership of Izzi Seccombe, the leader of Warwickshire County Council. The fact that she and her group continue to be re-elected with ever greater levels of support indicates that she is in a strong position to help bring people together across the constituency.
Dr Neil Hudson (Penrith and The Border) (Con)
Volunteers who serve on our parish councils do an amazing job. In rural communities such as mine, there are significant challenges to attending meetings, such as transport, adverse weather, work and caring responsibilities. In the pandemic, we have seen that the virtual or hybrid format works well. Moving forward, will the Secretary of State look to allow parish councils to sit in virtual or hybrid format to increase and widen access and to help them work to the best of their ability?
Michael Gove
If during the pandemic we had not allowed councils to meet virtually, not only would we have impaired the effective working of local government, but we would never have known about Jackie Weaver and the country would have been the poorer for it. I commend the work of parish councils and others. I am strongly in sympathy with the view that hybrid meetings should continue in order to ensure the maximum amount of efficiency. There is a case for saying that certain significant local authority meetings should occur with all councillors present, but I want to proceed with the maximum amount of consensus to reflect the maximum level of efficiency and in particular of sensitivity to those who serve in constituencies such as my hon. Friend’s, where the rurality and dispersed nature of representation are important.
Review of Intergovernmental Relations
Michael Gove Excerpts(2 years, 10 months ago)
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The Secretary of State for Levelling Up, Housing and Communities and Minister for Intergovernmental Relations (Michael Gove)
Today the UK Government have published an update on how the UK Government and the devolved Administrations intend to conduct formal intergovernmental relations with each other. All four Governments have agreed to work under these new arrangements. I will be depositing the Review of Intergovernmental Relations in the Libraries of both Houses.
The Review of Intergovernmental Relations, developed jointly by all four Governments, provides an up-to-date and fit-for-purpose system, introducing new structures for more regular, formal intergovernmental engagement and new processes to increase impartiality and to avoid, resolve and, where necessary, escalate disputes. It is a commitment to a co-operative spirit and to constructive collaboration with the devolved Administrations, through more transparent and accountable arrangements, and will be to the benefit of citizens in every part of the UK.
[HCWS536]
Building Safety
Michael Gove Excerpts(2 years, 10 months ago)
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The Secretary of State for Levelling Up, Housing and Communities and Minister for Intergovernmental Relations (Michael Gove)
With permission, Mr Speaker, I would like to update the House on building safety. Before I do so, I can confirm that I have asked the permanent secretary in my Department to conduct a leak inquiry. It was a matter of considerable regret to me that details of the statement that I am about to make were shared with the media before they were shared with Members of this House, and indeed with those most affected.
It is worth pausing at the start of any statement to reflect on why building safety is an issue of concern to all of us in this House today. It took the tragedy at Grenfell Tower on 14 June 2017, as a result of which 72 innocent men, women and children lost their lives, to put building safety properly on the political agenda. Families were living in a building that was literally a death trap because of failures of enforcement and compliance in our building safety regime. This Government must take their share of responsibility for those failures.
Over four years on from that terrible tragedy, it is clear that the building safety system remains broken. The problems that we have to fix have been identified by many across this House, from all parties. I would like at this point to register my appreciation of the work that the late Jack Dromey did on this issue. He was shadow Housing Minister for three years and he did a great deal, both as a trade unionist and as the Member of Parliament for Birmingham, Erdington, to bring to light the plight of those affected by this crisis.
As we know, there are still a small number of high-rise buildings with dangerous and unsafe cladding that have to be fixed. We know that those who manufacture dangerous products and develop dangerous buildings have faced inadequate accountability so far, and shown insufficient contrition. We also need to ensure that we take a proportionate approach in building assessments overall. There are too many buildings today that are declared unsafe, and there are too many who have been seeking to profit from the current crisis.
Most importantly, leaseholders are shouldering a desperately unfair burden. They are blameless, and it is morally wrong that they should be the ones asked to pay the price. I am clear about who should pay the price for remedying failures. It should be the industries that profited, as they caused the problem, and those who have continued to profit, as they make it worse.
Mr Speaker, we will take action on all of these fronts. To ensure that every remaining high-rise dangerous building has the necessary cladding remediation to make it safe, we will open up the next phase of the building safety fund early this year and focus relentlessly on making sure it is risk driven and delivered more quickly.
We will also ensure that those who profited, and continue to profit, from the sale of unsafe buildings and construction products must take full responsibility for their actions and pay to put things right. Those who knowingly put lives at risk should be held to account for their crimes, and those who are seeking to profit from the crisis by making it worse should be stopped from doing so.
Today, I am putting them on notice. To those who mis-sold dangerous products, such as cladding or insulation, to those who cut corners to save cash as they developed or refurbished people’s homes, and to those who sought to profiteer from the consequences of the Grenfell tragedy: we are coming for you. I have established a dedicated team in my Department to expose and pursue those responsible. We will begin by reviewing Government schemes and programmes to ensure that, in accordance with due process, there are commercial consequences for any company that is responsible for this crisis and refusing to help to fix it.
In line with this, just before Christmas, I instructed Homes England to suspend Rydon Homes, which is closely connected to the company that refurbished the Grenfell Tower, from its participation in the Help to Buy scheme, with immediate effect. I also welcome the decision by the Mercedes Formula 1 team and Toto Wolff to discontinue sponsorship from Kingspan, the cladding firm, with immediate effect. The voices of the families of the bereaved and the survivors of the Grenfell Tower were heard, but this is only the start of the action that must be taken.
We must also restore common sense to the assessment of building safety overall. The Government are clear—we must find ways for there to be fewer unnecessary surveys. Medium-rise buildings are safe, unless there is clear evidence to the contrary. There must be far greater use of sensible mitigations, such as sprinklers and fire alarms, in place of unnecessary and costly remediation work.
To achieve that, today I am withdrawing the Government’s consolidated advice note. It has been wrongly interpreted and has driven a cautious approach to building safety in buildings that are safe that goes beyond what we consider necessary. We are supporting new, proportionate guidance for assessors, developed by the British Standards Institution, which will be published this week.
Secondly, we will press ahead with the building safety fund, adapting it so that it is consistent with our proportionate approach. We will now set a higher expectation that developers must fix their own buildings, and we will give leaseholders more information at every stage of the process.
Thirdly, before Easter, we will be implementing our scheme to indemnify building assessors conducting external wall assessments, giving them the confidence to exercise their balanced professional judgment. We will audit those assessments to ensure that expensive remediation is being advised only where it is necessary to remove a threat to life.
I will be working closely with lenders over the coming months to improve market confidence, and I have asked my colleague Lord Greenhalgh to work with insurers on new industry-led approaches that bring down the premiums facing leaseholders.
Further, we will take the power to review the governance of the Royal Institution of Chartered Surveyors, to ensure that it is equipped properly to support a solution to this challenge. Those in the industry who refuse to work with us in good faith to take a more proportionate approach should be clear that our determination is to fix the problem for all those caught up in this crisis.
Finally, we must relieve the burden that has been unfairly placed on leaseholders. I want to pay tribute to all those across the House who have campaigned so passionately on this subject. They know the injustice of asking leaseholders, often young people who have saved hard and made sacrifices to take their first steps on the housing ladder, to pay money they do not have to fix a problem they did not cause, all while the firms who made a profit on those developments sit on their hands. We will take action to end the scandal and protect leaseholders. We will scrap the proposal for loans and long-term debt for medium-rise leaseholders.
I can confirm to the House today that no leaseholder living in a building above 11 metres will ever face any costs for fixing dangerous cladding and, working with Members of both Houses, we will pursue statutory protection for leaseholders and nothing will be off the table. As part of that, we will introduce immediate amendments to the Building Safety Bill to extend the right of leaseholders to challenge those who cause defects in premises for up to 30 years retrospectively.
We will also take further action immediately: we will provide an additional £27 million to fund more fire alarms, so we can end the dreadful misuse of waking watches; we will change grant funding guidance so that shared owners affected by the crisis can more easily sub-let their properties, and encourage lenders and landlords to approve sub-letting arrangements; and in the period before long-term arrangements are put in place, I will work with colleagues across Government to make sure that leaseholders are protected from forfeiture and eviction because of historic costs. Innocent leaseholders must not shoulder the burden.
We have already committed £5.1 billion of taxpayers’ funding from the Government, but we should not now look to the taxpayer for more funding. We should not ask hard-working taxpayers to pay more taxes to get developers and cladding companies making vast profits off the hook. We will make industry pay to fix all of the remaining problems and help to cover the range of costs facing leaseholders. Those who manufactured combustible cladding and insulation, many of whom have made vast profits even at the height of the pandemic, must pay now instead of leaseholders.
We have made a start through the residential property developer tax and the building safety levy, both announced last February, but will now go further. I will today write to developers to convene a meeting in the next few weeks, and I will report back to the House before Easter. We will give them the chance to do the right thing. I hope that they will take it. I can confirm to the House today that if they do not, we will impose a solution on them, if necessary, in law.
Finally, we must never be in this position again, so we are putting the recommendations of the Hackitt review on building safety in law and we will shortly commence the Fire Safety Act 2021. We are also today publishing new collaborative procurement guidance on removing the incentives for industry to cut corners and to help stop the prioritisation of cost over value. We will legislate to deliver broader reforms to the leasehold system, and also bring forward measures to fulfil commitments made in the social housing White Paper. When parliamentary time allows, we will have legislation on social housing regulation so that social housing tenants cannot be ignored as those in the Grenfell community were for many years.
Four and a half years on from the tragedy of Grenfell, it is long past time that we fix the crisis. Through the measures that I have set out today, we will seek redress for past wrongs and secure funds from developers and construction product manufacturers, and we will protect leaseholders today and fix the system for the future.
Lisa Nandy (Wigan) (Lab)
May I thank you, Mr Speaker, for your kind words about Jack Dromey, who should have been with us here today? There is a space over there that I know Jack would have occupied. Back in the 1970s, horrified by the spectacle of a skyscraper in London that lay empty while people slept rough underneath it, Jack was one of those who occupied Centre Point tower in protest. He was never afraid to speak truth to power, and I hope that today marks the start of all of us across the House invoking his spirit.
Four and a half years after the appalling tragedy at Grenfell, and with a road paved with broken promises and false dawns, hundreds of thousands are still trapped in unsafe homes, millions are caught in the wider crisis, and the families of 72 people who lost their lives are waiting for justice. It is a relief that we finally have a consensus that the developers and manufacturers who profited from this appalling scandal should bear greater costs, not the victims, and that blameless leaseholders must not pay. After a year of hell of the prospect hanging over leaseholders, we welcome the decision to remove the threat of forced loans, but can the Secretary of State tell us what makes him think that he can force developers, who have refused to do the right thing for four years, to pay up? We have been told there is a March deadline and a roundtable, but there is not a plan. If he has one, can we hear it? He will find an open door on the Opposition side of the House, if he has a credible proposal to bring.
Today the Secretary of State warned developers that if negotiation fails,
“our backstop…what we can do…is increase taxation on those responsible”,
but that is not quite right, is it? I have in front of me the letter from the Chief Secretary to the Treasury. May I remind the Secretary of State what it says? He was told that
“you may use a high-level ‘threat’ of tax or legal solutions in discussions with developers”
but
“whether or not to impose or raise taxes remains a decision for me”
—the Chief Secretary—
“and is not a given at this point.”
If I have seen the letter, I am fairly sure that the developers have too. Furthermore, it appears that what the Secretary of State has told the public—that tax rises are the backstop—is not what he has told the Treasury. The letter says that
“you have confirmed separately that DLUHC budgets are a backstop for funding these proposals in full…should sufficient funds not be raised from industry.”
That is not what the Secretary of State told the House a moment ago, so can he clear this up? Has the Chancellor agreed to back a new tax measure if negotiations fail, or is the Secretary of State prepared to see his already allocated budgets—levelling-up funding, or moneys for social or affordable housing—raided? Or is his plan to go back to the Treasury, renegotiate and legislate, if he fails in March? If that is the case, it will take months, and there is nothing to stop freeholders passing on the costs to leaseholders in the meantime. Does he even have an assessment of how many leaseholders will be hit with whacking great bills if he delays?
If the Secretary of State is serious about going after the developers—I hope that he is—why is he not putting these powers into the Building Safety Bill now? The only trick that he has up his sleeve, as he just confirmed to the House, is to ban them from Help to Buy, and we know that the impact of that, though welcome, will be marginal. Can he see the problem? He will also know that there is a gaping hole in what he has proposed. A significant number of buildings have both cladding and non-cladding defects, and leaseholders in them face ruinous costs to fix things such as missing fire breaks and defective compartmentation. One cannot make a building half safe. Given that the Secretary of State recognises the injustice of all leaseholders caught up in the building safety crisis, why is he abandoning those who have been hit with bills for non-cladding defects, and why will he not amend his Bill so that all leaseholders are protected from historical defects in law?
The truth is that the pace of remediation has been painfully slow. The Secretary of State is now on track to miss the deadline to fix all Grenfell-style cladding by over half a decade, and there are huge delays when it comes to building safety fund applications, so will he get a grip on what is going on in his own Department and ensure that the progress of remediation is accelerated markedly? As he knows, this has been a living nightmare for affected leaseholders, and we owe it to them to bring it swiftly to an end.
What the Secretary of State has given us today is a welcome shift in tone and some new measures that the Opposition very much hope will succeed, but the harder I look at this, the less it stands up. We were promised justice and we were promised change, to finally do right by the victims of this scandal, and that takes more than more promises. It takes a plan.
Michael Gove
I am grateful to the shadow Secretary of State for her questions. First, I entirely agree with the generous and fitting words that she had for Jack Dromey. As I mentioned briefly in my statement, he was a relentless campaigner for social justice throughout his career. Indeed, the role he played in highlighting the plight of the homeless, and the need to act in order to ensure that they had a safe and decent place to live, is one of the many achievements that we will all recall as we think of his contribution. I also welcome the consensual approach that the shadow Secretary of State and her Front-Bench colleagues are taking in seeking to ensure that we place responsibility where it truly lies, and she had a number of appropriate questions to follow up in order to ensure that we deliver effectively.
The shadow Secretary of State made the point that the allocations from the building safety fund so far have been slow and are behindhand, and that is true. I think it is always better to be honest about those areas where the Government have not performed as well as they should, and one of the first things I did as Secretary of State was to ask for all necessary steps to be taken to ensure that that money was spent effectively. Of course, one of the problems we have had is that it is a demand-led system, so we have relied on many of those who have been responsible as the individual owners of buildings to come forward. However, what we are also hoping to do is ensure that, working with the National Fire Chiefs Council, we have the most extensive analysis of all the buildings that need our support and that we accelerate work on the BSF. So her concerns are not misplaced, and it is certainly my intention to ensure that we accelerate and make comprehensive that work.
The shadow Secretary of State also made the point that non-cladding costs do need to be met, and I agree. She specifically requested that we provide amendments to the Building Safety Bill to ensure that there is statutory protection for leaseholders. That is our intention—we intend to bring forward those amendments—and I look forward to working with her and colleagues across the House to provide the most robust legal protection.
The shadow Secretary of State doubted—again, I can understand the basis of her scepticism—whether developers and others in industry, given their past behaviour, would necessarily come sweetly to the table, and that is why it is so important that we have a range of tools available. I think it is important to recognise that there are some developers and some in the industry who have done the right thing, and it is also important to recognise that a spokesman for the Home Builders Federation, Stewart Baseley, today struck a very a constructive and open tone.
However, we do need to have additional backstops, and it is clear that taxes can, if necessary, play a part. I do not want to move there, but we do have the absolute assurance that we can use the prospect of taxation to bring people to the table. All taxation decisions are made by the Chancellor, and no Chancellor or Chief Secretary would ever say anything other than that, but the fact that the Chief Secretary and the Chancellor have authorised me to use the prospect of taxation, and the fact that we already have taxation through the residential property developer tax, shows that we are prepared to take every step necessary.
The final point that was implicit—perhaps explicit—in everything the shadow Secretary of State said is that we will be judged on our actions, and I think that is entirely fair. I recognise, given the scale of the frustration that so many have felt in the past, that ultimately there can only really be satisfaction when we bring this matter to a conclusion. I believe that today marks a significant step forward, but there is more work to do, and I hope that we can conclude that work on a cross-party basis in order to bring justice to those who deserve it.
Sir Peter Bottomley (Worthing West) (Con)
I will co-operate, Mr Speaker, and may I say, through you, to the Mother of the House, the right hon. and learned Member for Camberwell and Peckham (Ms Harman), that the tributes to her husband Jack Dromey for his work on people’s interests at work and at home will be long remembered, together with that of David Amess, who for 20 years worked on the all-party group on fire safety and rescue with Ronnie King and others?
I believe that this is another step forward that is greatly welcomed and greatly needed, but I think the extension of the liability to 30 years is wrong for those who knew that what they were doing was wrong: 30 years may be fine for those who did it by mistake, but for those who knew what they were doing, there should be unlimited liability both in time and in money.
I hope that the Secretary of State will have a roundtable. If he wants to take over the all-party group roundtable for a summit on this, he can pick up some of the other issues that no doubt he has been working on, but which, to keep his statement reasonable, he may not have covered today.
One problem is the insurance premiums paid by leaseholders for a property they do not own, which may have gone up from an illustrative £300 a year to £3,000 a year. I believe that the Association of British Insurers should be told that the Competition and Markets Authority will look to see whether there is price gouging, in simple terms, and, that if there is some kind of catastrophic reinsurance needed, the Government should help them to make communal arrangements to deal with that, because insurance premiums should come down to the £300 they were before.
The last point of very many I would like to make is that the Treasury will expect to get the benefit of the levy and tax towards the £5 billion already announced, and the contributions that will come in from developers will relieve burdens on residential leaseholders, but the Government should also get the VAT on money that is spent, which is 20% of the total cost. If the total cost comes down from £15 billion to, say, £12 billion, my right hon. Friend can calculate and discuss with the Treasury how much extra the Treasury is getting. The Treasury should not be making a profit out of all this catastrophe.
Michael Gove
I thank the Father of the House for his questions. He is quite right that Sir David Amess, before his sad death, was one of the most prescient and most effective campaigners for improved building safety. His memory is very much in my mind.
The Father of the House makes a point about the need to potentially look at unlimited liability for those who consciously and deliberately operated in a reckless fashion. I will consider that and I am sure it will be considered during the passage of the Bill. On his point that we should work with others, particularly the broad leasehold community who have done so much to identify the way forward, we absolutely intend to do that. The point he makes about insurance premiums is absolutely right. That is why my noble Friend Lord Greenhalgh will be talking to Baroness Morgan of Cotes and others in the Association of British Insurers to ensure that more insurers, like Aviva, do the right thing. I very much note his point about VAT and Treasury contributions. In the ongoing conversations we have with the Chancellor of the Exchequer, I will reflect on the very important point that he made.
Patricia Gibson (North Ayrshire and Arran) (SNP)
I wish to echo the sentiments from across the House on the work Jack Dromey did on this issue and his campaigning to get justice for those affected.
It has been almost five years since the Grenfell fire. In that time, we have had four Housing Secretaries and several different policies and approaches to this issue. First the Government would pay, then leaseholders would pay and now developers will pay, all because the Treasury has for so long refused to act further on this issue. The confusion is not only harming homeowners facing a Tory cost of living crisis, but affecting the ability of devolved Governments to plan their responses appropriately. Can the Secretary of State guarantee that this latest policy will be acted on, and will he commit to working with the devolved Governments to provide further clarity? Additionally, can he make it clear when already promised funding will fully and finally be delivered to the devolved Governments for this matter?
Michael Gove
I am very grateful to the hon. Lady for her points. We certainly will work with the devolved Governments. Of course, the residential property developer tax, like all UK-wide taxes, is distributed appropriately in line with the Barnett formula and other requirements, but we will certainly work with devolved Governments. I should say that I am very grateful to the Scottish Government, the Welsh Government and the Northern Ireland Executive for the work they have already done on this issue. We all have much to learn from one another.
Felicity Buchan (Kensington) (Con)
I welcome the direction of travel in the statement, specifically that leaseholders will not have to pay for cladding remediation. I am also glad that building product makers are now coming within the scope of Government, not only property developers. I have been personally shocked by some of the revelations coming from the Grenfell inquiry and I think that potentially we need to address the building products sector. May I stress to my right hon. Friend that speed and delivery here is critical? It is now four and a half years since the tragedy in my constituency. What is important is not only having a good plan, but executing it quickly and efficiently.
Michael Gove
My hon. Friend is absolutely right and I am very conscious of the need for speed. I quite agree. If we look at the behaviour of some of the cladding firms, the behaviour of people who work for Kingspan and Arconic, and the evidence presented to the Grenfell inquiry, we see that it is truly dreadful. The individuals concerned must take responsibility. She represents a constituency in which there are many, many people who are effectively trapped because of the failure of the property market to effectively address all these problems. In the interests of her constituents and so many more, and in particular in the interests of the Grenfell community and its fight for justice, I am very conscious of the need to move as fast as we possibly can.
Mr Clive Betts (Sheffield South East) (Lab)
I thank the Secretary of State for his statement. I am sure he will welcome an invitation from the Select Committee to come and discuss these matters further in detail. Just two important issues. First, will he clarify that leaseholders will not have to pay the cost of remediation, including non-cladding work, because that is not exactly what his statement says? Secondly, will he clarify that, apart from the removal of aluminium composite material cladding, the Government will give social housing providers no help whatsoever? If developers do not pay for the measures that he announced today or taxes are not raised, and there are cuts to his budget as a result, will that come off social housing provision as well? What assessment has he done of the total impact on the future building of social housing?
Michael Gove
These are three very important points. First, we will make sure that we provide leaseholders with statutory protection—that is what we aim to do and we will work with colleagues across the House to ensure that that statutory protection extends to all the work required to make buildings safe. Secondly, to ensure that there is not an adverse impact on social housing or on the work that Homes England is leading to bring together and remediate brownfield land for new private-sector development, we will do absolutely everything possible so that, ultimately, those with big balance sheets and big bucks discharge their responsibility. He and I will know that the seven major housing developers do much good work but that in the last three years they made profits of £16 billion. Understandably, people are prompted to ask that those significant sums be devoted to ensuring that the building safety crisis is met, alongside the building supply pipeline of the future.
Robert Jenrick (Newark) (Con)
I welcome these further measures to provide critical support to leaseholders and to restore a greater degree of confidence to the housing market. In particular, may I welcome the future support for those in medium-rise buildings? It is a pity that the Treasury did not agree to that proposal in January of last year, but such is the way with this issue. May I ask my right hon. Friend about two particular points? First, he has agreed a backstop with the Chief Secretary to the Treasury whereby the ultimate risk will be borne by the provision of social housing. I am sure that he would agree that it would be quite wrong for social housing tenants and the homeless to pay the price for solving this issue, so will he say that that will not be the case? Secondly, I see that the Royal Institution of Chartered Surveyors has failed to make good on the conversations we have been having for several months, if not years, to instil a more proportionate and sensible approach into the assignment of risk. What further steps—he alluded to some in his remarks—can he take against RICS, because its behaviour is now bordering on scandalous in not taking this issue seriously?
Michael Gove
First, I pay tribute to my right hon. Friend, my predecessor. I have had the opportunity since joining the Department to see just how hard he worked, facing a number of frustrations, to secure justice for those who are our first concern. I heard some comments from some Opposition Members seeking to decry that. If they knew what I know about how hard Robert had worked to try to secure justice, they would not be trying to make a cheap point about it. We all care about this issue, but few care about it as much, and certainly no one currently in this Chamber has worked as hard to try to help those people, as my right hon. Friend. So I am not having it.
The second point that m right hon. Friend made is absolutely right; we need to ensure both that there is more social housing provision and that we improve the quality of social housing—that is a core mission for the Department. His third point, about RICS, is right. There have been all sorts of difficulties with that organisation in the past, but I am now hopeful that we are on a more positive footing. We have the potential to take steps to improve the governance of the institution, but I am hopeful now that, given some of the conversations we have had, including with lenders and others, we can be on a more positive footing. Let me once again underline and affirm my gratitude to my right hon. Friend for his incredibly hard and dedicated work to try to bring this situation to a satisfactory conclusion.
Catherine West (Hornsey and Wood Green) (Lab)
My constituents in Eclipse House, Station Road, Wood Green have been suffering for more than a year with astronomical costs to deal with gaps relating to fire doors and external wall insulation. Can the Minister confirm that that is not covered in today’s statement? Secondly, what voice will tenants have in the future? One of the worst things about Grenfell is the lack of tenant voice to make good things stick when bad practice is all around.
Michael Gove
The hon. Lady makes two important points. First, the freeholders, as the ultimate owners of these buildings, will be held responsible for all the work that is required, and we will make sure that leaseholders are not on the hook. Secondly, she is right that those who listened to some of the testimony at the Grenfell inquiry, and those who have seen some of the excellent campaigning journalism associated with it, will know that Ed Daffarn and others explicitly warned of some of the consequences of the approach taken at the time. Tenants’ voices were not heard, and people died as a result. That is why the social housing White Paper, which my right hon. Friend the Member for Newark (Robert Jenrick) did so much to advance, and the social housing Bill, which will come forward in due course, are so important.
Stephen McPartland (Stevenage) (Con)
I welcome this brilliant statement, and I am grateful to the Secretary of State for working constructively with us, across parties, and with the cladding groups to get us to where we are today. Today’s announcement is another huge step forward for leaseholders. This is a victory for leaseholders, who will get up to £9 billion of support. We will make those responsible pay and start on the journey.
I seek clarification on two areas. First, cladding is an external fire safety defect, but are developers responsible for internal fire safety defects such as missing fire breaks, which stop fire spreading from one flat to another? Secondly, will there be Government amendments to the Building Safety Bill to make it clear in law that leaseholders are innocent parties and will not have to pay?
Michael Gove
I thank my hon. Friend for his fantastic campaigning on this issue. On the first point, which is linked to his second point, the owners, the freeholders and the responsible figures in charge of these buildings will be held responsible and made responsible for making sure that all the work is done to make these buildings safe. We will table amendments to ensure that, on a statutory basis, we protect leaseholders from having costs passed on unfairly by the owners of the freeholds of these buildings.
Jeremy Corbyn (Islington North) (Ind)
When the horror of Grenfell happened, many local authorities such as mine responded immediately by inspecting all buildings and taking action as appropriate, as they should have done. The private sector did not do that for many of our leasehold properties.
I had a very sad conversation with a group of leaseholders a month ago. They are completely stuck. They cannot sell or move, they have expanding families and they are faced with massive bills. Can I go to them tomorrow and say that the Government will underwrite all the costs that they have been threatened with so that they can get their building brought up to standard and, if they wish, sell and move on? Or will there be months and months of delay until the private sector decides not to pay and the Government intervene? I think those leaseholders, like leaseholders all over the country, deserve an immediate answer. They have been through too much stress.
Michael Gove
Perhaps for the first time, I am almost wholly in accord with the right hon. Gentleman. Leaseholders deserve speedy action, but I do not want to overpromise. I believe we can rapidly relieve the difficult situation in which his constituents find themselves. I do not think it can be immediate, but I intend to ensure it is as quick as possible.
Please forgive me for making this point, but I agree with the right hon. Gentleman that many in local government, across parties, were far quicker to respond to this crisis than some in the private sector, which is shaming.
Mr Andrew Mitchell (Sutton Coldfield) (Con)
My right hon. Friend will be aware that this whole issue has caused extraordinary misery, anxiety and upset, and I had the opportunity this morning to speak to Jim Illingworth of BrumLAG. He, my right hon. Friend the Member for Newark (Robert Jenrick) and our friend Jack Dromey have worked closely, and he was clear that he is very grateful for this progress. We are seeing a mixed economy of response, although there are clearly issues of timing and other details, which I have no doubt that my right hon. Friend the Secretary of State will need to address. I hope that he accepts that he needs to crack the whip on this, but is he not well able to do so?
Michael Gove
I am grateful to my right hon. Friend for his point. I had the chance to chat to Jim Illingworth and other cladding campaigners earlier today and he is absolutely right. I know that my right hon. Friend, as a Birmingham MP, is all too well aware of how many people in that great city are affected by this crisis, and I look forward to working with him and others to resolve it as quickly as possible.
Kim Johnson (Liverpool, Riverside) (Lab)
A retired teacher in my constituency invested in a property in 2015, but just before Christmas, they were issued with a massive bill for £200,000 for an increase in their costs, and remedial work on their property will cost a possible £9 million. Will the Secretary of State agree to meet me and the leaseholders to talk about how the policy change will benefit them?
Michael Gove
I am grateful to the hon. Lady and I will make sure that either I or others in my Department have those conversations as quickly as possible.
Sir Mike Penning (Hemel Hempstead) (Con)
I welcome the statement today and the work that the Minister for Housing has done with colleagues across the House to explain how the policy will go forward, because this has been a nightmare for leaseholders. I have two quick questions. First, if leaseholders have already paid money out, will they get that money back from the freeholders or the developers? Secondly, on the issue of insurance, which was raised earlier, does the Secretary of State realise that even though people are liable for the costs of building insurance, they have no rights at all in the policy? When the situation occurs, they cannot claim against the policy; only the freeholder can do so. That must get changed in the Bill.
Michael Gove
There are few people in the House who know as much about fire safety as my right hon. Friend. We will certainly work with him to explore the specific insurance provisions that he mentioned. I cannot, unfortunately—I would not want to mislead him—say that we will be in a position to compensate those who have already contributed. We are seeking to ensure that individuals do not face costs in the future, but again, I will work with colleagues across the House to try to get to the most equitable position possible.
Daisy Cooper (St Albans) (LD)
I look forward to seeing the amendments from the Government about how leaseholders will be protected, because my constituents in St Albans, like many others, have had too many false dawns. I want to ask about the Secretary of State’s review of proportionality. In the past, building safety assessors have been chosen because of their willingness to recommend the less expensive safety work, and that has created a race to the bottom. Will he confirm that the BSI guidance will be mandatory for building safety assessors, and will he put protections in place so that assessors do not get away with offering the lightest touch mitigations that they can?
Michael Gove
First, I thank the hon. Lady—it is always difficult for me to praise a Liberal Democrat, but she has been campaigning consistently on this issue for some time and has done a great job of bringing to light some of the defects that need to be addressed. It is the case that the BSI work, we believe, will ensure a properly proportionate approach. There are incentives either way—incentives, sometimes, for some to seek to do work on the cheap and for others to exaggerate the scale of the work that may be required to generate business. I hope, however, that a truly proportionate and safe approach will now be followed as a result of the BSI’s work.
Royston Smith (Southampton, Itchen) (Con)
I joined this campaign a year or so ago because, as the Secretary of State said in his statement, leaseholders are blameless and it is morally wrong to make them pay. I look forward to seeing this become part of the Bill so that leaseholders know that they will never have to pay. However, let me go back to insurers: not only are they increasing premiums by up to 1,000% for people who cannot really afford the premiums that they were paying before, but insurers are part of the problem. They were indemnifying these developers and underwriting these developments. They are part of the warranty issue and yet, this has not been brought into scope as part of the solution, so will the Secretary of State look again and make sure that insurers have to pay in the way that developers will?
Michael Gove
My hon. Friend makes a very important point and his campaigning has been a significant factor in helping us to get to the right, or certainly to a better, position. We want insurers to be part of the solution, as we want everyone to be, and Lord Greenhalgh is doing great work with them. I am sure that there will be an opportunity before too long for me to explain in greater detail, with Lord Greenhalgh, to my hon. Friend and others the progress that we are making, but he is absolutely on the button in pointing out some of the mistakes that have been made that need to be addressed by the insurance sector.
Kate Green (Stretford and Urmston) (Lab)
I note that the Secretary of State said he would extend the right of leaseholders to challenge those who cause defects retrospectively for 30 years, but he will be aware that unscrupulous developers such as Mr Jason Alexander in my constituency exploit loopholes in company law with the result that there is no corporate entity to go after because it has been wound up, struck off or stripped of assets. Can he say what work he is doing with the Department for Business, Energy and Industrial Strategy to ensure that those loopholes in company law are closed? Can he also tell us whether the obligations that developers will now face as a result of his statement today will take precedence over their other financial obligations?
Michael Gove
The hon. Lady makes two important points. On the first point, yes, this has been a feature. I was not fully aware, until I took on this responsibility, of how some within the development industry play fast and loose with the rules and set up special purpose vehicles, shell companies and so on to evade their responsibilities. They exhibit the unacceptable face of capitalism, I am afraid, and she is right to say that work requires to be done to bring them appropriately to account. I will be working with colleagues across Government to do just that.
Esther McVey (Tatton) (Con)
I welcome the Secretary of State’s announcement today but, like others, I will be awaiting the detail, not least because I was calling for leaseholders to be protected from the cost of cladding when I was a Minister in the Department. So what has happened to change the Government’s mind?
Michael Gove
As so often, my right hon. Friend is ahead of her time. There have been any number of occasions, including recently, when I have had to acknowledge that she has been right and the rest of us have been wrong, and this is one of those occasions.
Barry Gardiner (Brent North) (Lab)
Today the Secretary of State has told us what many all across the House told the Government three years ago—namely, that individual leaseholders trapped in unsafe homes should not have to bear the cost of making them safe. But today’s statement focuses on cladding, whereas the vast majority of leaseholders are suffering in unsafe homes as a result of other insulation and fire stopping defects. How will he address that? He has told the companies to pay up, but many have now gone into voluntary liquidation. We need a windfall tax on the whole industry now. Far too many leaseholders have been waiting for three and half years in purdah. Many of them, like my constituents in Central Square, have been waiting since 31 July even to get a response from the BSF. Can the Secretary of State get his own Department to be a bit more expeditious?
Michael Gove
The hon. Gentleman makes a number of important points. Yes, the Department needs to be more expeditious and yes, we are focused on doing just that. Yes, it is important that the freeholders—the ultimate owners—deal with all the fire safety issues and yes, it is absolutely right that, while ACM cladding is the most egregious example of buildings being unsafe, there are many other issues that require to be tackled.
Sir Iain Duncan Smith (Chingford and Woodford Green) (Con)
I welcome my right hon. Friend’s statement. It is long overdue. Many in my constituency and elsewhere face huge bills, as he knows. The biggest problem is getting the developers to talk to those who have suffered. I spent two years trying to get representatives of Telford Homes to meet the leaseholders, but they have now gone to ground and will not say a word. The Government have been talking about talking to developers for some time now but nothing has come of it, so, with all due respect, how is my right hon. Friend going to drive them—and the insurance companies that insured those that have gone out of business—to meet the leaseholders? Taxes can take time, so what about instantaneous fines?
Michael Gove
By any means necessary. My right hon. Friend is absolutely right. My preference is, wherever possible, to proceed consensually and to think the best of people. There are undoubtedly many people in the property development sector who have done the right thing and others who hope to do so, but if we need to, we will deploy heavier artillery to ensure that we get the necessary support to those on the frontline.
Sarah Jones (Croydon Central) (Lab)
I welcome the statement, which is certainly a step in the right direction.
There are many tall buildings in my constituency. Some of the issues affecting them, and the costs that they bear, are very complex, and do not involve anything that would be covered today. Two blocks, Longitude and Altitude, have to pay for compartmentalisation, and although Bridge House—which is over 18 metres tall—is cladded, its cladding is not categorised as the right type to qualify for funding under the Government’s scheme. Some of my constituents live in blocks where the developer has gone bust and the freeholder is overseas, and they have a tenuous relationship with the managing agent. It is very difficult to get any information. Can the Secretary of State say something about that wider issue and what can be done about it, and what is his estimate of the cost of making all these buildings safe?
Michael Gove
The hon. Lady has made a series of important points. I know that she has already been in touch with the Department, but I want to be more closely in touch with her. Our project team, Operation Apex, are making sure that we can do everything possible to ensure that the ultimate responsible owner is identified and takes on responsibility for the work to which the hon. Lady has correctly drawn attention. I look forward to working more closely with her to address precisely that issue.
Joy Morrissey (Beaconsfield) (Con)
I thank my right hon. Friend for standing up for leaseholders, particularly young people who have just got on to the housing ladder. May I ask him to look again at sprinklers as a safety measure? They are required in many countries, and the fact that they are not required here has always perplexed me. I also ask him to ensure that the building materials used for social housing are subject to the necessary level of scrutiny. Developers often use lower-quality materials which create a greater risk to safety, and we need to protect social housing tenants as well.
Michael Gove
My hon. Friend is absolutely right. She was an incredibly hard-working figure in local government in London, where she helped to ensure that the needs of those in social housing were understood. There are specific provisions in the building safety legislation introduced by the Minister for Housing, my right hon. Friend the Member for Tamworth (Christopher Pincher), to address some of those questions about poor-quality material social housing.
Sammy Wilson (East Antrim) (DUP)
It is right that leaseholders should not be held responsible for the faults of builders in the past, and I therefore welcome the statement. However, given that housing is a devolved matter in Northern Ireland, I assume that what we are discussing today will not automatically apply there. What discussions has the Secretary of State had with the Communities Minister and the Finance Minister—both of whom are responsible for these housing and building regulations issues—given that Sinn Féin seem to take the view that anything that emanates from this place, regardless of how beneficial it is to people to Northern Ireland, is not acceptable?
Michael Gove
Those are very fair points. I have written today to Ministers in the Northern Ireland Executive and the other devolved Administrations to outline the approach that we propose to take. I will work with Ministers from whatever party—I absolutely take on board the point made by the right hon. Gentleman—to ensure that we get to the right position. I am grateful to the First Minister, Paul Givan, for the support he has given us overall in the run-up to this announcement: it is much appreciated.
Mark Logan (Bolton North East) (Con)
Everyone remembers their first visit to Bolton, but on his next visit, will the Secretary of State come with me to Holden Mill in Blackburn Road and Astley Bridge to meet residents and see the progress that has been made on the removal of cladding, but also to discuss with them issues relating to poor build quality and how the Government can fight their corner?
Michael Gove
I certainly will, and I am grateful to my hon. Friend, who is a very effective advocate for Bolton.
Janet Daby (Lewisham East) (Lab)
May I add my voice to those who have spoken of the sudden passing of Jack Dromey? He was a truly pleasant and decent person. Let me also convey my condolences to the Mother of the House, and especially to his son, Joe Dromey, who I know very well, and knew especially well when we were councillors together in Lewisham.
Leaseholders are feeling anxious and angry about the delays, and the uncertainty about when the cladding will be removed from buildings and associated safety problems will be dealt with. That includes residents of the Parkside development in my constituency. The developers and the housing association have said that they will start to look at doing the remediation work in the spring, but will provide no absolute guarantee that any costs will not be passed on to the leaseholders. Will the Secretary of State review this case in order to provide the certainty that leaseholders in my constituency so desperately need?
Michael Gove
Yes, I absolutely will. I thank the hon. Member for bringing that to my attention.
Mrs Maria Miller (Basingstoke) (Con)
I welcome my right hon. Friend’s statement and his sheer determination not only to hold people responsible for the wrongdoings they did but to stand up for leaseholders. However, building owners are still dragging their feet, delaying essential remedial works, even though they might be eligible for Government funding. What incentive can he give today to those building owners to complete the works as soon as possible and not put concerns about their own financial liabilities, however theoretical, above the concerns and safety of residents in those blocks?
Michael Gove
My right hon. Friend is absolutely right. It is certainly the case that many already enlightened owners have done just that. But one thing we are saying today is that ultimately we will ensure in law that it is the ultimate owner of the building that is responsible for that work, so the incentive is to move now for fear of consequences later.
Florence Eshalomi (Vauxhall) (Lab/Co-op)
It is good to see the Secretary of State acknowledge the unjust treatment of buildings under 18 metres in particular. However, it appears that what he has outlined will involve a voluntary contribution from developers, which may take a while. The leaseholders in my Vauxhall constituency do not have a while to wait. They are fed up of waiting. It has been four and a half years. They want solutions now. So will he confirm that he absolutely understands the urgency that leaseholders want to see and call on those developers to take action now?
Michael Gove
Absolutely. Again, I do not want to over-promise, but I do recognise the need for speed.
Bob Blackman (Harrow East) (Con)
The complexity of this issue has been highlighted by the Secretary of State’s statement and by the questioning. May I challenge him on one point? As my right hon. Friend the Member for Hemel Hempstead (Sir Mike Penning) said, thousands of people will have received large bills and many will have paid them. The Secretary of State is saying that he will take statutory powers in the Bill that is coming before us. When will that happen? Once the House has voted on those powers, will that be the operational date for bills not to be presented to leaseholders, or can leaseholders who have refused to pay the bills thus far say, “Thank goodness—I don’t have to pay anything”?
Michael Gove
My hon. Friend, who has been a consistent campaigner in this area, makes a very good point. Again, I do not want to make a cast-iron commitment at the Dispatch Box on the operational date, but I will work with him and others as we frame the legislation and ensure that he has access, in so far as it is possible, to the legal advice we have, so that we can stress test it and provide the maximum level of protection.
Rachel Hopkins (Luton South) (Lab)
I have spoken to many leaseholders in my constituency who have struggled with issues around fire safety and cladding and the impact that has had on their mental wellbeing. We raised that issue in the Building Safety Bill Committee and the response was that those people should access mental health support through their GP in the usual way. We know the pressure GPs are under at the moment, so will the Secretary of State bring forward any additional measures in the light of his statement to support leaseholders’ mental health?
Michael Gove
It is the case that some leaseholders face additional vulnerabilities. Some have had mental health problems and other leaseholders living with disabilities have particular problems. It is important that we develop a comprehensive package for all, so I will look into that.
Mary Robinson (Cheadle) (Con)
I welcome the announcement and thank my right hon. Friend for listening to leaseholders who have faced the prospect of bankruptcy because of defects that needed to be put right. In confirming that he will keep in mind that other defects may come to light when cladding is removed, will he commit to looking at that and ensuring that the bodies responsible for the cladding crisis cannot find a place to hide and will be pursued to pay for it?
Michael Gove
Absolutely. I totally agree with my hon. Friend that we need to take all means to pursue those who are ultimately responsible. We also need to recognise that, exactly as she said, when remediation work is undertaken, sometimes other flaws are revealed, and they need to be addressed.
Clive Efford (Eltham) (Lab)
I associate myself with all the comments that have been made about my colleague, Jack Dromey.
I welcome the steps forward that we take every time a Secretary of State comes to the House and makes a statement, but it is the steps backwards that we make after those statements that are causing me problems. I have a property in my constituency that is about 18 metres high. The residents have done their own survey and say that it is over 18 metres. The management agency says that it is over 18 metres and should therefore qualify for the building safety fund. These issues though are difficult to resolve. Meanwhile, the residents have been paying out £28,000 a month for waking watch for nearly four years. How retrospective will these measures be? Will my constituents be compensated for what they have unfairly had to pay out? It would have been far cheaper to put in a fire alarm system than to continue paying waking watch. Will we see an end to the EWS1 forms or will RICS come back at us and say that we cannot possibly do that, as it has done before?
Michael Gove
I can totally understand the hon. Gentleman’s frustration. As my hon. Friend the Member for Harrow East (Bob Blackman) pointed out, and as the hon. Gentleman’s question lays bare, there is a complex set of inter-related problems. We are making money available to ensure that we can get rid of waking watch in all save a very few circumstances. I recognise that there are people who have faced costs so far, but it depends on individual circumstances as to whether or not—depending on the ultimate owner of the building—they can receive compensation. I do not want to make any guarantees about that in a blanket way today.
On EWS1 forms, we can dramatically reduce their use as a result of the engagement that we have with lenders and with RICS. Again, it will still be the case that, in the meantime—even as we get a more proportionate approach—there will be some 11-to-18 metre buildings where work of that kind will be required, but we absolutely want to reduce it.
Ben Everitt (Milton Keynes North) (Con)
I welcome the commitment of the Secretary of State to hold to account those responsible for this. It is morally wrong that leaseholders should foot the bill. I know that this announcement and this progress will be welcomed by residents of Vizion apartments in Milton Keynes as well as by thousands and thousands of others across the country. Can he confirm that this means that the Government are accepting the principle of polluter pays in this instance? How confident is he that the cowboys will cough up without additional taxation?
Michael Gove
We do accept that principle, and we will do everything that we can to round up the wrong ‘uns. I do recognise, none the less, that we are dealing with some individuals who have behaved unscrupulously in the past and who will do everything to evade their responsibilities, which is why we need tax as a backstop.
Hywel Williams (Arfon) (PC)
There are many Welsh victims of this particular scandal, including in my own Arfon constituency and elsewhere in Wales, as I am sure the Secretary of State will be hearing about. I am very much in favour of holding the industry to account, but I have to tell him that long experience of trying to hold the cavity wall insulation industry to account, albeit as a Back Bencher, has not been encouraging, so I wish all power to his elbow on that matter. I was glad to hear him say that he will be working with the Governments in Wales, Scotland and Northern Ireland. Can his officials look at the issue of companies that work from England and are subject to its strictures, but that also work in Wales, as that might be a complicating factor?
Michael Gove
We absolutely will. I am very grateful to the hon. Gentleman for the approach that he outlines. Indeed, we want to work with the Labour-Plaid Cymru Administration in Wales in order to get to the right result.
Dr Matthew Offord (Hendon) (Con)
I am very grateful to the Secretary of State for his statement, but I gently remind him that those who have worked hardest on this issue are Conservative Members supporting their constituents. Two in particular—my hon. Friends the Members for Southampton, Itchen (Royston Smith) and for Stevenage (Stephen McPartland)—have worked incredibly hard on this issue. Will the Secretary of State confirm that no leaseholder—living in the building or not—living in a building of 11 metres or lower, or having problems with external or internal building defects, will pay any costs whatever?
Michael Gove
My hon. Friend makes an important point and allows me to place on the record my thanks to my hon. Friends the Members for Southampton, Itchen (Royston Smith) and for Stevenage (Stephen McPartland). I completely agree that their campaigning has been incredibly important. It is our intention that the ultimate owner of a building is responsible for all of the safety steps that are required, and we will use statutory means in order to ensure that that happens. That is what we will seek to do with the help of colleagues across the House.
Fleur Anderson (Putney) (Lab)
I, too, welcome the statement’s commitment to leaseholders and the fact that it puts businesses on notice, giving them the chance to do the right thing. When will the deadline be up for that chance to do the right thing? Without it, we could just be kicking the can down the road. Leaseholders in Putney will want to know when they can expect to be able to sell their homes and to move on. Will there be a Government guarantee—a letter or similar that they can use with estate agents and others—so that they can move on with their lives? Finally, residents in a Putney building of just under 11 metres have been given a bill of £1 million for remediation. Will they be covered by this?
Michael Gove
I will look at the specific case of the building of just under 11 metres that the hon. Lady mentions. More broadly, I would absolutely love to be able to provide people with reassurance that from tomorrow the cloud will be lifted, but as a number of Members have pointed out, there is a complex set of interrelated problems. I believe that we have a means of dealing with them all, and I also appreciate that we need to move at speed. I will come back to the House before Easter with an update on the measures we have taken. I will work with colleagues across the House in order to ensure that we have the right statutory underpinning. Again, I want to confirm that we require everything to go right in order to be able to help everyone who is currently facing difficulties. We will do everything we can. I hope the hon. Lady will appreciate that I would not want at this stage to provide an absolute guarantee for people whose specific circumstances I am not yet familiar with.
Kelly Tolhurst (Rochester and Strood) (Con)
I thank my right hon. Friend for his statement, which I very much welcome, and I am incredibly grateful to his Ministers for the time they have spent listening to my concerns and those of residents of The Wharf in my constituency. They have suffered from a lack of transparency and clarity on the work required and whether it needs to be done. As we speak, the management company, Y&Y, is applying to the tier 1 tribunal for costs. What assurances can my right hon. Friend give my constituents, who are very concerned about any outcome that would leave them with bills of between £10,000 and £20,000, payable within the next six months?
Michael Gove
Absolutely the intention of today’s statement is to try to address the concerns raised so powerfully by my hon. Friend on behalf of constituents who face those imminent bills. I am really grateful to her for drawing attention to the immensely hard work being done by Ministers in the Department. The Minister for Housing, Lord Greenhalgh and the Under-Secretary of State for Levelling Up, Housing and Communities, my hon. Friend the Member for Walsall North (Eddie Hughes), who has responsibility for rough sleeping, have all been working incredibly hard to engage with colleagues across the House and with others in order to try to move this forward. It has been a collective effort and I am very grateful to my colleagues for that.
Neil Coyle (Bermondsey and Old Southwark) (Lab)
It is four and a half years since Grenfell. The Secretary of State has made clear today that the Government have failed to solve the problem, but he then said that his chief action has been to write a letter to developers to ask them to come along to a meeting. That is simply not good enough for the thousands of leaseholders affected in Southwark. The biggest threat in this statement is to allow the backdating of action against those who have installed unsafe products over 30 years, but it is leaseholders who will be forced to take on the legal and other burdens involved, including the fees. Will the Secretary of State therefore amend the Building Safety Bill to finally clarify responsibility and load the burden where it belongs—on the developers, builders and manufacturers—so as to properly protect leaseholders, as Ministers have promised multiple times but which today’s statement fails to deliver?
Michael Gove
The proposals that the hon. Member enjoins on me are the ones that we are seeking to bring forward. However, in fairness to the hon. Member, for whom I have a great deal of respect—he is a courageous and doughty campaigner—I can understand a degree of cynicism and/or scepticism, given some of the missteps we have had in the past. If we manage to make progress along the lines that he has outlined, I hope that he will be in a position then to say that his worst fears were not realised. I think it is perfectly legitimate for him, at this stage, to want to see the colour of other people’s money.
Stephen Metcalfe (South Basildon and East Thurrock) (Con)
Morello Quarter in my constituency has issues not only with cladding but with other building defects such as the apparent lack of firebreaks. Will my right hon. Friend include those in the scope of the measures, or should I go back to my residents and tell them to pursue legal action against the developers, who do not want to engage with me or with them, to try to get a resolution and certainty?
Michael Gove
It is our intention to ensure that those who are ultimately responsible—the ultimate owners of the freehold or the real owners of the building—pay in order to make it safe, but I will look specifically at the example that my hon. Friend raises to ensure that we can do everything we can to provide his constituents with the reassurance they deserve.
Stephen Timms (East Ham) (Lab)
Will the Secretary of State spell out how the statutory protection he has announced will help leaseholders in developments such as Waterside Park, built by Barratt in my constituency, which does not have a cladding problem, but where apartments have become valueless because of other serious building defects—missing firebreaks and unsafe insulation? How exactly will the statutory protection help them?
Michael Gove
I rely on the right hon. Gentleman’s description of the building, but we will talk to Barratt or whoever is the ultimate owner in order to ensure that they live up to their responsibilities, and there are steps that we can take. We will outline what they are when we bring forward appropriate amendments. We will make sure that we test those amendments with him and others to ensure that they meet the need that he has correctly identified. There is still a little bit of legal work to be done to ensure that the amendments are as robust as possible.
Stephen Hammond (Wimbledon) (Con)
I warmly welcome my right hon. Friend’s statement and the work that the Minister has done as well. I hope it will bring resolution to people in blocks of flats in Plough Lane in the centre of Wimbledon and in Chorus properties. Can my right hon. Friend confirm that he will expect and, if necessary, require lenders to base their lending decisions in future on the new risk mechanism, because clearly distress has been caused by people being trapped in their houses?
Michael Gove
My hon. Friend is absolutely spot on and that is what we will seek to do.
Andy Slaughter (Hammersmith) (Lab)
The Secretary of State has been asked by both sides of the House about protecting social landlords and tenants from remediation costs. Will he answer that point, bearing in mind that the biggest social landlords have said that their new housing programmes will be cut by 40% over the next five years if they have to cover fire safety costs themselves? Affordable housing is at particular risk, as yesterday’s fire in New York showed. Will he study the lessons from that fire, especially as some of the victims were on the lower floors, which he appears to say are at lower risk, and that lack of compartmentalisation rather than cladding was the cause of most of the deaths?
Michael Gove
I know that the hon. Gentleman, not least as a former council leader, has considerable experience in this area. He is right that the fire in New York reminds us of the range of risk, and he is also right that we need to take appropriate action to ensure that registered social landlords, housing associations and others are not hit adversely. We need to balance a set of competing goods, but ultimately—as he will appreciate—the most important thing is to make sure that people are in decent, safe homes and that there are more decent, safe homes built where people need them.
Caroline Nokes (Romsey and Southampton North) (Con)
My right hon. Friend spoke earlier about lifting the cloud that is hanging over leaseholders. Can he provide reassurance to residents such as those in Banning Street in Romsey, where the building is sub-18 metres, the freeholder is a housing association and the defects are cladding related, that they will be swept up in his reforms? They are looking at costs of £15,000 to £20,000 per leaseholder for new fire escapes, which may well not even be needed. Can he provide reassurance that they will be helped?
Michael Gove
I will absolutely look at that specific case. I do not want to say any more at this point, but my hon. Friend raises a very important point. One of the things with housing associations and other registered social landlords is that we need to make sure that the balance of responsibility is appropriate.
Emma Hardy (Kingston upon Hull West and Hessle) (Lab)
Sadly, cladding is not one of the only risks to building safety: flooding is another huge risk. While the Secretary of State is open to looking at amendments to building safety in general, will he also look at strengthening the standards for all new public and private buildings in terms of flood resilience? The Secretary of State promised me a meeting with the relevant Minister to discuss my flooding Bill and, as he is a man of his word, I am sure that date will arrive soon in my email inbox.
Michael Gove
The hon. Lady makes two very important points. We have already changed regulation with regard to flooding, but more could be done. I will ensure that either I or the relevant Minister sees her before the end of February, if that is okay.
Alun Cairns (Vale of Glamorgan) (Con)
I warmly welcome my right hon. Friend’s statement, which will yield significant benefits directly for leaseholders in England. As he has acknowledged, this policy area is devolved and therefore responsibility in Wales falls to the Welsh Government. However, the UK Government, through their initiatives, may well raise significant sums of money for this purpose. What conclusion has he drawn on whether that funding should be ring-fenced for that specific purpose in Wales, rather than diverted to other purposes?
Michael Gove
My right hon. Friend makes a very important point. We of course respect the devolution settlement, but he is absolutely right that money generated for building safety should be devoted, as far as possible, to building safety. I will work with him and others to ensure that the focus is maintained in the way he outlines.
Daniel Zeichner (Cambridge) (Lab)
It was a good weekend for Cambridge United, but sadly the misery continues for so many people in and around Cambridge who find themselves trapped in buildings that were not built to the expected standards. As we have heard, it is not just about cladding; it is also about fire breaks and so on. For so many of those people, lack of an EWS1 form means that they cannot move—they are absolutely trapped. What in the Secretary of State’s statement can give them confidence that they will be freed from that trap?
Michael Gove
I congratulate the hon. Gentleman and all supporters of Cambridge United, and I extend my sympathies to Newcastle and Arsenal fans, given the unfortunate events of the weekend. On his very important point, I hope that the withdrawal of the consolidated advice note and its replacement with the BSI-approved PAS 9980 will play a part in helping his constituents and others to be in a position once again to operate fully in the property market. Lenders to whom I have spoken have given our proposals a fair wind so far, but obviously engagement needs to continue.
Crispin Blunt (Reigate) (Con)
In welcoming my right hon. Friend’s statement, may I draw his attention to the situation at Nobel House in Redhill? The development has 126 apartments, 86 of which are privately leased, but the ownership of the freehold has changed twice. The managing agents failed to make an application to the initial £1.6 billion building safety fund. I was told in June that a new fund of £3.5 billion would be coming forward, but that is yet to materialise and leaseholders are already having to pay over £2,000 each towards the cost of this exercise. Can they be fully reassured that they will get their money back, given the ownership status of the building?
Michael Gove
My hon. Friend raises a very important case. I will look at what we can do to help his constituents. I will not make an absolute promise from the Dispatch Box at this point, but the situation he describes is clearly unacceptable.
Ruth Cadbury (Brentford and Isleworth) (Lab)
The shadow Secretary of State said that we cannot make a building half safe, but some residential buildings are possibly more dangerous than others. In October 2020, over 800 leaseholders and students were evicted from the Paragon blocks in Brentford, with one week’s notice—that is how dangerous they were deemed to be. They were built using a modular form of construction, and the eviction came two years after the flammable cladding had already been removed. I have reason to believe that the Paragon situation—there are other examples across the country—was a result of the modular form of construction, to which the out-of-date building regulations do not apply, as well as poor, shoddy and badly supervised construction works. When will the Secretary of State bring up-to-date building regulations through the system, and when will he address the lamentable culture in the construction industry, which the counsel for the Fire Brigades Union at the Grenfell inquiry described as being driven by an
“agenda of deregulation, privatisation and marketisation”?
When will he do something about that?
Michael Gove
The hon. Lady makes an important point about modular construction. Through the Buildoffsite Property Assurance Scheme guidance, we require appropriate adherence to principles with modular construction, which should keep buildings safe. She is right that the Grenfell inquiry has also had a number of accounts from a number of witnesses that raise issues of concern. Although it is important that we continue to take action even before the inquiry concludes, I would not want to pre-empt the inquiry’s conclusion on all the issues she mentions.
Damian Green (Ashford) (Con)
My right hon. Friend is entirely correct that this is a substantial step forward, and he and the Minister for Housing, my right hon. Friend the Member for Tamworth (Christopher Pincher) are to be congratulated on it. May I return to the subject of those developers and companies that have gone broke and disappeared since they did the things for which the Secretary of State has rightly castigated them? Some of those have disappeared not for nefarious reasons. Has he quantified how much money will be absent—how big a hole there is in the money that ought to be available—for compensation from such companies? Who is going to fill that hole?
Michael Gove
My right hon. Friend makes a very good point. We want those we can identify as the responsible owner or freeholder of properties to contribute to and meet the needs of fire safety costs, but we are already looking at the wider development community and at construction products manufacturers to help to ensure that we have sufficient resources to provide relief to leaseholders everywhere.
Hilary Benn (Leeds Central) (Lab)
I join the tributes to Jack Dromey. Our shock is all the greater because we thought that he would always be with us; the whole of his life was dedicated to being there for others, as a representative of workers who was very proud to serve his constituents.
I welcome the statement that the Secretary of State has made today. It represents progress—loans were never going to work; they were unfair. However, my constituents will have listened very carefully to the exchanges between the Secretary of State, my hon. Friend the Member for Sheffield South East (Mr Betts), the Chair of the Select Committee and the hon. Member for Harrow East (Bob Blackman) on the question of liability for non-cladding costs. I have many constituents, as do other Members, whose bill is on the mantelpiece, staring at them. Given that the Secretary of State has offered statutory protection, what are they meant to do with those bills? Can they confidently say, “I do not have to worry about that now, because the Government are going to sort this out”? When he talks about statutory protection, he mentioned protection against forfeiture and eviction. May I add a third risk to that list, which is bankruptcy? That is what many people are facing if they are ever forced to pay these bills that they are not responsible for and cannot afford.
Michael Gove
The right hon. Gentleman is absolutely right: such people are not responsible for these problems and in many cases they cannot afford the bills. I would not want to give advice precipitately to any individual at the moment about their particular circumstances without knowing every aspect of their particular circumstances, but it is vital that we move as quickly as possible. What I will want to test with him and others is the efficacy of the legislative solution that we propose to bring forward, because I am confident that it will help enormously, but I want to be in a position where he and others have an opportunity to stress test it, so that we get the best possible protection.
Dr Julian Lewis (New Forest East) (Con)
Everybody welcomes the statement of principle that it is immoral that innocent leaseholders should pay for remediation of something which was not their fault, but if that is immoral for the future, it is also immoral for everybody who has been pursued ever since the disaster at Grenfell Tower. Therefore, may I urge the Secretary of State to revisit the answers he gave to my right hon. Friend the Member for Hemel Hempstead (Sir Mike Penning) and my hon. Friend the Member for Harrow East (Bob Blackman), because otherwise he will be creating a perverse incentive for people to come down on leaseholders and extract rip-off fees before any legislation comes into play if it is only going to be forward-looking?
Michael Gove
I very much take my right hon. Friend’s point. We will try to ensure that the legislation deals with the potential perverse incentive to which he alludes.
Paul Blomfield (Sheffield Central) (Lab)
In opening his remarks, the Secretary of State acknowledged that the problem is not simply developers’ negligence but a failure of regulation, for which the Government are responsible. Leaseholders will fear that today’s announcement will have the effect of kicking a solution further down the road, causing delays for those who have been trapped in an intolerable position for far too long. Does the Secretary of State accept that the best way of seeking a solution is for the Government to fulfil their responsibility by acting to fix the faults without delay and then using all their powers to recover the money from developers and those responsible?
Michael Gove
I absolutely take the hon. Gentleman’s point, but I think that the legislation we are bringing forward helps to address some of the regulatory failures to which he alludes. I also think it is important to wait for the conclusions of the Grenfell inquiry before apportioning appropriate weight on the responsibility that rests on central Government, the responsibility that rests on local government, and the responsibility that rests on others. I believe the proposals that we have put forward today are the best and most expeditious way of ensuring that we can provide support to leaseholders, but of course we will keep that under review.
Sir Geoffrey Clifton-Brown (The Cotswolds) (Con)
I draw the House’s attention to my entry in the Register of Members’ Financial Interests as a chartered surveyor.
I warmly welcome today’s announcement. May I ask my right hon. Friend about two aspects that he has mentioned in the statement—namely that the indemnity given to building assessors and the proper auditing assessment should enable lenders and insurers to offer those products at reasonable rates fairly quickly? That, in turn, will get the market moving, so that those leaseholders who desperately need to move should soon find that there will be a market for them to do so.
Michael Gove
My hon. Friend is absolutely right. That is exactly our intention, and it is the fruit of the work read by my hon. Friend and others.
Justin Madders (Ellesmere Port and Neston) (Lab)
As a co-chair of the all-party parliamentary group on leasehold and commonhold reform, I pay tribute to all the campaigners up and down the country who have done a sterling job at keeping this issue on the political agenda. They will certainly welcome the principle, set out in the statement, that innocent leaseholders must not shoulder the burden. I hope that applies equally—not just to cladding, but to any other fire safety defects and to the cost of the interim safety measures that have been necessary. The Secretary of State recognised that in the statement by referring to the extra £27 million for waking watches, but leaseholders will have already paid out thousands of pounds for waking watches. Should they now expect some reimbursement for those costs?
Michael Gove
I completely understand and appreciate the concerns expressed by the hon. Member. We are seeking to avert additional costs in the future. It will be difficult for us to make good all the injustices that have been visited on his constituents and others. I do not want to oversell what we are putting forward. It is a significant step forward, but it cannot resolve every issue from the past. I enjoyed listening to the conversation that he and the Father of the House had on Times Radio at the weekend, and I echo the very generous comments that he made about the Father of the House.
Claire Coutinho (East Surrey) (Con)
I thank the Secretary of State for his actions today, particularly scrapping the loan scheme for medium-sized buildings, which will help constituents of mine such as Susan Seal and the Russell Square residents in Horley. I really welcome the onus that he is putting on developers. Does he agree that, along with the other things he has talked about, transparency can be an effective tool in getting people to do the right thing? Would he speak to whether naming and shaming could be part of the solution?
Michael Gove
My hon. Friend is absolutely right. One of the things that we saw just before Christmas with the Kingspan-Mercedes deal is the way in which public pressure from the Grenfell community meant that a very big corporate—Mercedes—did the right thing. I am very grateful to Toto Wolff and his team for doing that. We need to use a variety of tools, and my hon. Friend is absolutely right that transparency is critical.
Jim Shannon (Strangford) (DUP)
May I convey my own and my party’s sincerest sympathies to the family of Jack Dromey at this time of great grief and sorrow? He made a significant contribution in Westminster Hall last Thursday, and he will be missed—I want to put that on the record.
I thank the Secretary of State for his statement and for his clear commitment to finding a solution for everyone in this process. It is clear to me that that is what he intends to do, but can the right hon. Gentleman outline what steps he is willing to put in place to ensure that the burden of the cost of replacing cladding is not on the tenants alone? Too many tenants of one-bedroom apartments are being asked to pay thousands of pounds towards this from low wages, while developers are sitting pretty. Will the Secretary of State liaise with the Chancellor to see what tax breaks could be offered to developers who do the right thing by their tenants?
Michael Gove
I am grateful to the hon. Gentleman for his points. He is right that there are people in small, one-bedroom flats who have been faced with huge costs, which are totally disproportionate and from which we need to relieve them.
Secondly, he makes an important point about being as supportive as possible of developers that do the right thing. A debate such as this will inevitably concentrate on those who need to take additional responsibility, but it is important to stress that many developers, housebuilders and people in the property sector have done the right thing, and we should applaud them for having done so.
Kevin Hollinrake (Thirsk and Malton) (Con)
I draw the House’s attention to my entry in the Register of Members’ Financial Interests. I welcome my right hon. Friend’s statement, which ticks all the boxes needed to solve this crisis, not least pointing the finger at construction product manufacturers. There is no doubt they have gamed the system to get some of their products approved inappropriately, but that gaming was facilitated by the Building Research Establishment, which, as my right hon. Friend knows, was privatised about 25 years ago. Will he make sure that these manufacturers contribute towards the costs of remediation and will he consider bringing the Building Research Establishment back under public ownership?
Michael Gove
My hon. Friend is incredibly knowledge-able about all matters of property and housing. On the first part, absolutely. On the second part, that is a tempting thought, but I will have to discuss it with the Chancellor.
Margaret Ferrier (Rutherglen and Hamilton West) (Ind)
Since last April, I have been seeking answers for a constituent in Cambuslang who has been trying to sell a flat between 11 metres and 18 metres, which was wrongly assessed to have failed the EWS1 form because of cladding. The Scottish Government have launched a free-of-charge assessment pilot, but details about the full roll-out and remediation payments are still pending. What discussions has the Secretary of State had with the devolved Administrations about remediating buildings across the UK at greater pace?
Michael Gove
I wrote to and was in touch with the Scottish Government, the Welsh Government and the Northern Ireland Executive earlier today, and I look forward to working with them. As the nature of the debate has reinforced, there are people in every party who are interested in practical solutions. That is incredibly helpful in helping to relieve the problems faced by the hon. Lady’s constituents, and by so many others.
Tom Hunt (Ipswich) (Con)
I welcome the statement, particularly on 11 metres to 18 metres. That includes flats owned by many of my constituents, who will get a great sense of relief from that. There are still concerns, as colleagues have mentioned, about non-cladding issues. The section of the statement about restoring proportionality was very interesting, but I do not want to be in the same position in three or four months of talking to a leaseholder who cannot sell their property because of non-cladding issues, so the proof will be in the pudding.
An issue that has not been raised is that when the cladding remediation work is carried out, the living conditions those who still live in the building have to live through are often unacceptable. I am certain that if my right hon. Friend visited St Francis Tower in Ipswich, he could not but share my anger at the conditions in which my constituents have to live. I invite my right hon. Friend to St Francis Tower to see the conditions that they are expected to live in.
Michael Gove
My hon. Friend makes an important point that sometimes work that is absolutely necessary involves a degree of disruption to people’s ordinary lives that is incredibly painful. Whether it is me or another Minister, we will make sure that someone comes to Ipswich to listen to my hon. Friend’s constituents. He is an incredibly effective advocate for them, and it is only right that we hear direct from them.
Dr Ben Spencer (Runnymede and Weybridge) (Con)
Some of the most distressing conversations I have with constituents are with those who have been caught up in this scandal, as are some of the most distressed constituents I have met. They are trapped, unable to move and face unknown costs, none of which is their fault. I warmly welcome the raft of measures announced today, as will they, but the next question will be, what next? What will happen and how quickly? I urge my right hon. Friend to clarify the measures that he has set out as soon as possible, to drive this forward and to bring them the certainty they desperately need.
Michael Gove
My hon. Friend and constituency neighbour is absolutely right that people will want greater detail, and greater detail soon. I look forward to working with him and others to provide them with the required reassurance. As I mentioned earlier, although we believe these measures have the potential to resolve many of the issues, I would not want to say that every single individual’s problems will be resolved. We will do everything we can to proceed at speed in providing help.
Nick Fletcher (Don Valley) (Con)
I refer Members to my entry in the Register of Members’ Financial Interests. I welcome today’s announcement, and I am sure many families in my constituency will welcome it, too. Only this weekend we have seen a tragedy in New York, and I am sure I speak for every Member in saying that my thoughts and prayers go out to all affected. This was another electrical fire, and we still have a situation in this country where whether a flat’s electrical installation and appliances are tested depends on the tenure of the flat. It is like only rented cars having an MOT. I have raised this previously, and I will continue to raise it until we do something about it. Safe electrics and safe appliances means fewer ignitions and fewer fires, which means fewer lives lost.
Michael Gove
My hon. Friend makes an incredibly important point. Of course there are things we need to do to ensure building safety when it comes to construction products and materials, and when it comes to the quality of development and building control, but he is right that the fundamental aspects of wiring, power supply and electricity in our homes need to be addressed if people are to have the safe homes to which they are entitled.
David Johnston (Wantage) (Con)
Last week I led a debate on the broader issue of developers and house builders making large profits from low-quality homes that cause problems for owners and local communities. Does my right hon. Friend agree that the safety issues he seeks to tackle today are on a list of issues that people see with these companies, albeit that they are the most serious? That means the public will be very unsympathetic if they see further foot-dragging in trying to get a satisfactory solution.
Michael Gove
My hon. Friend makes a very important point, and he tempts me into a broader debate to which I will return. In a nutshell, many people involved in housing provision, construction and development produce safe, beautiful homes with concern for the environment that enhance our communities, and we need more homes that are safe, decent and sustainable. There are also problems in the system, and the behaviour of certain actors needs to be addressed.
Everyone in this House wants to work with the industry, because having a home of our own is such an important part of our aspirations and ambitions, but we must recognise that more work needs to be done so we can be proud of the sector. I know that was at the heart of the points my hon. Friend made in his Westminster Hall debate.
Mr Deputy Speaker (Mr Nigel Evans)
I thank the Secretary of State for escaping the BBC lift this morning so that he could come here to make his statement and respond to questions for more than 90 minutes.
Nuclear Energy (Financing) Bill (Programme) (No. 2)
Motion made, and Question put forthwith (Standing Order No. 83A(7)),
That the Order of 3 November 2021 (Nuclear Energy (Financing) Bill (Programme)) be varied as follows:
(1) Paragraphs (4) and (5) of the Order shall be omitted.
(2) Proceedings on Consideration shall (so far as not previously concluded) be brought to a conclusion two hours after the commencement of proceedings on the Motion for this Order.
(3) Proceedings on Third Reading shall (so far as not previously concluded) be brought to a conclusion three hours after the commencement of proceedings on the Motion for this Order.—(Mrs Wheeler.)
Question agreed to.
Provisional Local Government Finance Settlement 2022-23
Michael Gove Excerpts(2 years, 11 months ago)
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The Secretary of State for Levelling Up, Housing and Communities (Michael Gove)
Introduction
Today, I have set out the provisional local government finance settlement for 2022-23. This is a settlement that, at a national level, makes available an additional £3.5 billion to councils, an increase in local authority funding for 2022-23 of over 4% in real terms. This will ensure councils across the country have the resources they need to deliver key services.
The proposals I am announcing today focus on providing stability by:
Making available up to £3.5 billion more funding for councils across England compared to 2021-22. Overall, this means up to £53.9 billion of funding available for core services.
Providing a new, one-off 2022-23 services grant worth £822 million.
Striking a balance on council tax that helps councils invest in the services they provide to residents while protecting hard-working taxpayers from unfair hikes in rates, with a 2% core referendum threshold and 1% of additional flexibility for councils with adult social care responsibilities.
Making available over £1 billion of additional funding for social care.
Alongside this settlement, the Government will be providing further support to local communities through: £2.6 billion of UK shared prosperity funding, which helps people access opportunities in places in need; a £4.8 billion levelling up fund, which seeks to level up the country by investing in infrastructure that improves everyday life across the UK; and a further £2 billion of investment across the next three years to tackle homelessness and rough sleeping.
2022-23 services grant
Local government delivers a range of services that are at the core of every community.
I therefore propose to create a one-off 2022-23 services grant worth £822 million that will be distributed through our existing settlement funding assessment. We will then take the time to fully consider its future distribution in consultation with councils.
This funding would be excluded from any proposed baseline for transitional support as a result of any proposed system changes.
Adults’ and children’s social care
The Government are committed to ensuring local government has the resources it needs to support the most vulnerable through adult and children’s social care.
I propose, therefore, allocating £700 million of new grant funding going to social care. This means:
£636 million more into the social care grant, including funding for equalisation against the 1% adult social care precept.
providing an inflationary uplift to support integrated working with the NHS.
Local authorities can make use of over £1 billion of additional resource specifically for social care in 2022-23. This includes the increase in social care grant and the improved better care fund, a 1% adult social care precept and deferred flexibilities from last year’s settlement.
For many councils, adults’ and children’s social care are key priorities and the largest areas of spending. Councils are not expected to rely solely on this earmarked funding to meet the inflationary and demographic pressures facing these services; they also have access to funding from un-ringfenced grant, including the 2022-23 services grant, and from council tax.
On top of this funding to address core pressures, £162 million in adult social care reform funding will be allocated in 2022-23 to support local authorities as they prepare their markets for adult social care reform and to help move towards paying a fair cost of care. The funding made available to councils means overall local government core spending power can increase by over 4% in real terms in 2022-23, including the investment in adult social care reform.
Council tax
This Government recognise the importance of high-quality local services and believes in empowering local decision makers to shape thriving communities. This includes ensuring they have the flexibility to generate their own income through council tax, while protecting residents from excessive increases.
I have proposed the following package of referendum principles for 2022-23:
A core council tax referendum principle of up to 2% for shire counties, unitary authorities, London boroughs, the Greater London Authority (GLA) and fire and rescue authorities.
A principle of up to 2% or £5, whichever is higher, for shire district councils
An adult social care (ASC) precept of 1% for all authorities responsible for ASC.
The ability to add up to an additional 3% of unused ASC precept from 2021-22.
A £5 referendum principle for the eight lowest-charging fire and rescue authorities.
A referendum principle of £10 for police and crime commissioners (PCCs), including the GLA charge for the Metropolitan Police and the PCC component of the Greater Manchester and West Yorkshire Mayoral precepts.
No other council tax referendum principles for Mayoral Combined Authorities (MCAs) and no council tax referendum principles for town and parish councils.
The Government’s manifesto commits to continuing to protect local taxpayers from excessive council tax increases, and it is for the House of Commons to set an annual threshold at which a council tax referendum is triggered. This is an additional local democratic check and balance to avoid the repeat seen under the last Labour Government when council tax more than doubled.
This package of referendum principles strikes a fair balance. The council tax referendum provisions are not a cap, nor do they force councils to set taxes at the threshold level.
Councillors, Mayors and police and crime commissioners and local councils will rightly want to consider the financial needs of local residents at this challenging point in time, alongside the public’s support for action on keeping our streets safe and providing key services.
Stability of funding
Through this package we are providing local authorities with a firm foundation for funding throughout 2022-23. This means we are proposing to roll over much of the 2021-22 local government finance settlement, including:
Rolling over the current approach to the new homes bonus worth £554 million.
Keeping the rural services delivery grant at £85 million.
Maintaining the lower tier services grant at £111 million with an updated cash terms funding floor.
Increasing the revenue support grant in line with inflation; an increase of £70 million.
Continuing with the 100% retention authorities in the five devolution deal areas and 67% for Greater London overall.
Updating the system
The Government are committed to ensuring that funding allocations for councils are based on an up-to-date assessment of their needs and resources. The data used to assess this has not been updated in a number of years, dating from 2013-14 to a large degree, and even as far back as 2000. Over the coming months, we will work closely with the sector and other stakeholders to update this and to look at the challenges and opportunities facing the sector before consulting on any potential changes.
As part of this we will look at options to support local authorities through transitional protection. Councils should note the one-off 2022-23 services grant provided in the local government finance settlement in 2022-23 will be excluded from potential transitional protections.
Conclusion
In outlining these proposals, my priority is to provide stability in the immediate term so I can work closely with local government and other partners on options to update our assessment of local authority needs and resources. I welcome representations from all interested parties on the four-week consultation we have launched today.
The consultation can be found at: https://www.gov.uk/government/consultations/provisional-local-government-finance-settlement-2022-to-2023-consultation (www.gov.uk).
[HCWS510]
Intergovernmental Relations: Third Quarterly Report
Michael Gove Excerpts(2 years, 11 months ago)
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The Secretary of State for Levelling Up, Housing and Communities (Michael Gove)
Earlier today, the UK Government published the third quarterly report of our engagement with the devolved Administrations on the www.gov.uk page for intergovernmental relations. The report has also been deposited in the Libraries of both Houses of Parliament.
The report details engagement between the UK Government, Scottish Government, Welsh Government and Northern Ireland Executive between 1 July and 30 September 2021. It covers a period of collaboration on a range of important areas, including preparations to ensure a safe and secure COP26, as well as partnerships between UK and devolved Administrations on net zero, covid-19 response and recovery, the resettlement of Afghan refugees and the roll-out of covid-19 booster vaccines across the UK.
The report is part of the UK Government’s ongoing commitment to transparency of intergovernmental relations to Parliament and the public.
[HCWS477]
Oral Answers to Questions
Michael Gove Excerpts(2 years, 12 months ago)
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Mohammad Yasin (Bedford) (Lab)
The Secretary of State for Levelling Up, Housing and Communities (Michael Gove)
I have enormous sympathy with leaseholders who are being landed with bills for faults for which they were not responsible and for which the responsibility for remediation truly lies elsewhere. I and my Department are looking at every available means to ensure that the burden is lifted from leaseholders’ shoulders and placed where it truly belongs.
Fleur Anderson
I am glad to hear that response. Hundreds of Putney leaseholders are facing agonising waits to get funding through the building safety fund. People in the Radial development have been waiting for 16 months, people in Hardwicks Square have been waiting for 17 months and those in the Swish building have been stuck at stage 2 for 11 months. Meanwhile, one constituent is paying more than £4,000 in insurance for a two-bedroom flat following a 500% hike, which is not unusual. What is the Minister doing urgently to speed up and simplify the building safety fund application process and also to prevent insurers from cashing in?
Michael Gove
As the hon. Lady rightly points out, leaseholders find themselves caught in an invidious vice, whereby they are not only having to pay remediation costs, but also find that insurance costs and the capacity to sell on their flat are compromised by the situation in which we find ourselves. Making sure that individuals are in safe buildings is our first responsibility, and to do that we must make sure that the building safety fund pays out and that we get support for remediation from those in the private sector, who also have a share of responsibility. I hope to update the House on our plans shortly.
Marsha De Cordova
Leaseholders in Battersea should not be held responsible for paying for remediation works when their homes were sold to them with the assurance that they were safe. Due to the poorly regulated EWS1 assessments, there have been cases where homes were being awarded a B2 classification—the lowest category—leaving leaseholders expected to pay for the repairs. In one case, leaseholders in Battersea challenged that, providing evidence proving that the building was of A2 classification. What action is the Secretary of State taking to ensure that leaseholders are protected from erroneous EWS1 assessment outcomes and that the process is not a barrier to selling or remortgaging, including properties below 18 metres?
Michael Gove
The hon. Lady’s question emphasises the complexity of the issue, but that is no reason not to take action to help her constituents and others. One of the principal concerns that I know many leaseholders have is that lenders will require the EWS1 form. The EWS1 form is a consequence of previous Government acts and decisions made by the Royal Institution of Chartered Surveyors and others. We need to ensure co-ordinated action across the piece to ensure we are in a stronger position to free people from the position in which they currently find themselves.
Mohammad Yasin
A number of my constituents are facing terrifying bills for remedial works. One couple made redundant due to covid need to sell their apartment urgently, but are trapped because of the safety issues. They have since heard that the developers have gone bust. I was pleased to hear the Secretary of State recognise how unfair it is to expect leaseholders to pay remediation costs, but they are expected to, and people are desperate. The Leasehold Reform (Ground Rent) Bill is a wasted opportunity to help them. When will this unjust mess finally be sorted out?
Michael Gove
Again, the hon. Gentleman reminds us in the case of his constituents how widespread this challenge is. The leasehold reform Bill can play a significant part in ensuring that the position of those in the future can be safeguarded, but we need to take action even before that legislation comes forward, and I hope to update the House shortly on a series of measures that I hope will help bring some relief to his constituents and others.
Bim Afolami (Hitchin and Harpenden) (Con)
I have a constituent in my constituency who has been severely affected by the lack of progress on building safety fund funding. He is an example of the complexity and the “invidious vice” that the Secretary of State mentions from the Dispatch Box. Will he agree to meet me to discuss the particular complexities of this situation?
Michael Gove
My hon. Friend has been campaigning incredibly assiduously behind the scenes on behalf of those who have been caught in this vice. It is the case that 700 or so disbursements have been made from the building safety fund so far, but we realise that we need to take a number of measures to address this situation. He is right that we need to do so with a sense of urgency, but we also need to ensure that those measures are appropriately co-ordinated to have the beneficial impact we would all like to see.
Tom Hunt (Ipswich) (Con)
I very much welcome the fact that a number of properties in Ipswich have been successful on building safety funding, but I am concerned about the conditions that many people renting flats are having to live through as the work is carried out. Yes, the work must be carried out quickly, but in one case residents are expected to live for 12 months behind shrink wrap with no natural light whatsoever. Does my right hon. Friend agree that we must balance the need to do the work quickly and make buildings safe with the mental health and wellbeing of residents who are expected to live in properties while that work takes place?
Michael Gove
My hon. Friend makes a very good point. I do not know whether the constituents to whom he refers are in private rented sector accommodation or social tenants. In the latter case, some of the changes that we hope to make with our forthcoming social housing Bill will help to ensure that tenants are treated as they should be by all registered social landlords. We are also looking at appropriate re-regulation of the private rented sector.
Kelly Tolhurst (Rochester and Strood) (Con)
Residents at The Wharf, a building of below 18 metres, are being asked by the management company to foot large bills for works to their building next year. Will my right hon. Friend outline how he will support those residents? Time is of the essence, and some residents will simply not be able to pay.
Michael Gove
My hon. Friend makes a very important point. It is vital that we proceed as quickly as possible on 18 metre-plus buildings rendered unsafe because of aluminium composite material or other forms of cladding whose unsuitability the Grenfell tragedy laid bare, to make them safe. For some buildings of between 11 metres and 18 metres, it is important that we take a proportionate approach to safety and cost. Safety must come first, but for a number of buildings between 11 and 18 metres, the action needed can be taken quickly and may not be at the level or intensity—or certainly the cost—of action required in other buildings.
Mike Amesbury (Weaver Vale) (Lab)
If I include the Secretary of State, Housing Ministers have promised 19 times to protect leaseholders from historical remediation costs, yet as we speak we know of thousands of people receiving invoices for astronomical remediation costs. Thirty-three such residents are in Oyster Court in London, and they could face bills of up to £80,000 each following an assessment using the Government’s new PAS 9980 form. We will hear a lot more about that in the media. Have the Government added yet another toxic layer to the mess? What will the Secretary of State do about it?
Michael Gove
I do not believe that the Government have added anything that is toxic to this mess. We need to ensure that we are in a position to reassure lenders, leaseholders and everyone in the market that buildings are safe. We also need to ensure, exactly as the hon. Gentleman indicates, that leaseholders are not paying and not shouldering an unfair burden for the remediation required. As I mentioned earlier, I hope to say more about that in due course.
Dr Julian Lewis (New Forest East) (Con)
The Secretary of State, like me, has been in the House a long time. Does he agree that this scandal measures up to some of the worst that we have seen, whether it be contaminated blood or the wrongful jailing of innocent postmasters? While I welcome his change of tone, does he agree that people are constantly paying out colossal sums for things such as waking watch, and that this must be remedied?
Michael Gove
My right hon. Friend is absolutely right. In arriving in this role, I was struck by two things. The first was the combination of circumstances that come so unfairly on to the shoulders of people who bought their properties in good faith and now find themselves landed with wholly disproportionate and unfair bills. In fairness, to respond to the hon. Member for Weaver Vale (Mike Amesbury), I also realised that my predecessors had worked hard to deal with a situation that is intrinsically complex. That is not to take away from the urgent need to tackle it, but good people both in government and outside have been attempting to deal with an interconnected set of issues. My right hon. Friend is absolutely right that they must be tackled, but, for a host of reasons, that requires not just Government but others to fulfil their responsibilities.
Rachel Hopkins (Luton South) (Lab)
Judith Cummins (Bradford South) (Lab)
The Secretary of State for Levelling Up, Housing and Communities (Michael Gove)
As the Under-Secretary of State for Levelling Up, Housing and Communities, my hon. Friend the Member for Harborough (Neil O’Brien), pointed out in response to the previous question, levelling up involves every Department working in a co-ordinated fashion to advance a series of policies that spread prosperity more equally across the country. The £96 billion integrated rail plan was the single largest rail investment ever made by a UK Government.
Judith Cummins
There was broad agreement around Lord Heseltine’s 2012 report that investment in rail infrastructure is central to a levelling-up agenda. The integrated rail plan really only delivers an upgrade to the existing lines, axing the eastern leg of High Speed 2 and the new high-speed Northern Powerhouse Rail line. How can the Secretary of State do his job now that the integrated rail plan has derailed progress in the north? With less than three weeks of parliamentary time left in 2021, when will he publish his long-promised levelling-up White Paper, which is due this year?
Michael Gove
The hon. Lady makes two very good points. On the first, if we look at the integrated rail plan, we can see that there are significant benefits for communities across the north of England. Indeed, travel time between Leeds and Bradford is reduced from, in some cases, just over 20 minutes to 12 minutes. That is a real, material benefit for citizens of both great cities. It is also the case that the potential for further work in making sure that we can have a more effective mass transit system in West Yorkshire is inherent in the approach that was outlined by my right hon. Friend the Transport Secretary. More broadly, I am grateful to the hon. Lady for her anxiety to see the broader set of plans that we are keen to bring forward shared with the House, and we will do so at the earliest possible opportunity.
Jake Berry (Rossendale and Darwen) (Con)
What my constituents in Rossendale and Darwen would have liked to have seen in the integrated rail plan was a rail line from Manchester to Rawtenstall, but they did not see it. With that in mind and with our shared ambition to level up Rossendale and east Lancashire, will my right hon. Friend look favourably on our levelling-up bid, which will have transport and other schemes in it, when it comes forward?
Michael Gove
My right hon. Friend makes a very good point. East Lancashire and its success must be at the heart of a successful approach towards levelling up. Whether it is Rawtenstall, Bacup, Blackburn or Burnley, we need to ensure that all communities in east Lancashire feel they have the right investment not just in transport, but in skills, schools, and ensuring that streets are safe and communities can take back control.
Jeff Smith (Manchester, Withington) (Lab)
HS2 and Northern Powerhouse Rail were never just about train lines and journey speeds; they are about regeneration opportunities. In the case of the cancelled eastern leg, 38,000 homes were planned on the back of that line, which now will not happen. Some £38 billion of economic growth in Bradford, reliant on Northern Powerhouse Rail, has been cancelled. Local government leaders in the north are united in their opposition to the £18 billion reduction in rail investment plans. Is the north not once again being let down rather than levelled up?
Michael Gove
I would contest that. Although the hon. Gentleman is absolutely right to say that the integrated rail plan creates opportunities for broader regeneration, it is important to recognise that transport is not the only tool that can promote regeneration across the midlands and the north of England. The work that Homes England does in making sure we can unlock the potential of brownfield sites for regeneration is critically important. I appreciate the disappointment felt by communities in Bradford and elsewhere, but there is more to come, both in transport and other investment, that will ensure that we meet our shared objectives to spread opportunity more equally across the geography of England.
Andrew Bridgen (North West Leicestershire) (Con)
What conversations is my right hon. Friend having with the Department for Transport with regard to restoring your railway funding, in particular for the reopening of the Ivanhoe line in North West Leicestershire, where we currently have no railway stations at all?
Michael Gove
I was unaware that there were no railway stations in North West Leicestershire. For the citizens of Ashby de la Zouch and other communities, transport connectivity is as important as it is for citizens elsewhere. I will look at whether the Ivanhoe line can secure the investment it needs. I know my hon. Friend is a white knight for rail investment. North West Leicestershire could have no surer champion in the jousting required to secure the investment needed. [Hon. Members: “Groan.”]
John Penrose (Weston-super-Mare) (Con)
The Secretary of State for Levelling Up, Housing and Communities (Michael Gove)
It is a cracking private Member’s Bill. We shamelessly want to rip off all the ideas in it and take them for our own.
John Penrose
I am delighted to hear it. Will the Secretary of State look not only at those ideas, but at the related “build up, not out” proposals in my soon-to-be-launched policy paper “Poverty Trapped”? Both enshrine local democratic consent and style codes as essential steps for new developments. Does he agree that they are both vital to unlocking the scale of home building that will make buying or renting homes more affordable, reducing poverty and levelling up communities everywhere?
Michael Gove
My hon. Friend is absolutely right. It is rare that we have legislation that combines greater democratic control with the potential for the beautification —for want of a better word—of our urban and suburban environment, and also unlocks the potential for the value of individuals’ homes to be enhanced by additional development. It is a triple whammy of good news; we just need to make sure that it meshes with everything else that we want to do that is beneficial. I am really grateful to my hon. Friend and all the supporters of his legislation for helping the Government out so much.
Emma Hardy (Kingston upon Hull West and Hessle) (Lab)
Residents in Hull and Hessle are often fearful that the design of new homes and new housing developments will lead to increased flooding. Anybody who has been a victim of flooding knows how utterly devastating it is for everybody concerned, so will the Secretary of State meet me to discuss my ten-minute rule Bill, the Flooding (Prevention and Insurance) Bill, which is designed to improve and strengthen flood mitigation and flood protection measures for all new builds?
Michael Gove
I know how prone so many communities in the East Riding are to flooding. It is vital that we balance the need for new housing with making sure that there is appropriate mitigation, so I will ensure that I or another relevant Minister meet the hon. Lady to discuss her Bill and how we can take forward those provisions that mesh with our own ambitions.
Chris Loder (West Dorset) (Con)
Sara Britcliffe (Hyndburn) (Con)
The Secretary of State for Levelling Up, Housing and Communities (Michael Gove)
I am very conscious of the additional responsibilities that I bear as Minister for Intergovernmental Relations, which is why I was pleased not only to be able to attend the British-Irish Council just over a week ago as a guest of the Welsh First Minister, but to have the opportunity this weekend, as we all consider how we deal with the shadow of the new omicron variant, to discuss with First Ministers across this United Kingdom how we can co-ordinate all our efforts in order to defeat this new covid threat.
Sara Britcliffe
The Secretary of State may know that I have campaigned tirelessly for investment in our town centres across Hyndburn and Haslingden, and those millions of pounds of investment would make a significant difference. Can he confirm that the second round will be confirmed in the White Paper, and will he visit my home of Hyndburn and Haslingden to see at first hand how the money would be spent?
Michael Gove
Absolutely, and we will be saying more about how we can ensure that the remaining tranches of the levelling-up fund are allocated fairly. Accrington and Oswaldtwistle speak to me even now as communities that I would love to visit, with my hon. Friend as my guide.
Ruth Cadbury (Brentford and Isleworth) (Lab)
Not only have reforms of permitted development rights led to a new generation of slum housing, but the latest developments pose a huge risk to the beating heart of our high streets. Communities in this position have no voice and no say in these conversions, and councils are powerless to stop them. Will the Government at least give councils and communities some transparency, and release in full the promised regulatory impact assessment of the Department’s changes to permitted development rights?
Theresa Villiers (Chipping Barnet) (Con)
Michael Gove
My right hon. Friend has spoken frequently and passionately about the importance of a balanced approach to the assessment of housing need across the United Kingdom. It is certainly true that the way in which we assess it needs to be updated. I think it only fair to say that every part of England—indeed, every part of the United Kingdom—will have to share in making sure that we can meet the housing needs of the next generation, but we are seeking to achieve a fairer and more equitable distribution of need across the country.
Patricia Gibson (North Ayrshire and Arran) (SNP)
In contrast to what the Under-Secretary of State for Levelling Up, Housing and Communities, the hon. Member for Harborough (Neil O’Brien), said in his earlier answer, the Institute for Government has said that, far from reducing bureaucracy, the UK Government have, in the shared prosperity fund, established a system that fails to include devolved Governments to the same degree as previously, and that the United Kingdom Internal Market Act 2020 facilitates the UK Government riding roughshod over devolution. How can the Secretary of State in all honesty work to improve intergovernmental relations when the core thrust of his portfolio is about undermining devolution and overriding devolved Governments?
Michael Gove
I share the hon. Lady’s concern for enhancing and improving devolution, which is why we are working with local government in Scotland and, indeed, with Scottish National party Members of this House, to help to ensure that the levelling-up fund, the shared prosperity fund and the community ownership fund meet the needs of individual communities. That is why we are so pleased that the hon. Members for Aberdeen North (Kirsty Blackman) and for Aberdeen South (Stephen Flynn)—SNP MPs—and the SNP councils in Edinburgh and Glasgow were so happy to work with us on these funds. I have to say that I sometimes find it surprising—
Mr Speaker
Order. Order. Secretary of State, it is not fair to take advantage. I know you enjoy teasing them, but my problem is that questions and answers are meant to be short and succinct—that is why they are called topical questions—and Mr Rosindell is desperate. Come on Andrew!
Michael Gove
Companion animals are a really good thing—cats, dogs or whatever they are—and it is vital that we work with landlords to ensure that people have the right to have the animal that brings so much joy into their lives with them, whatever form of tenure they enjoy.
Ms Karen Buck (Westminster North) (Lab)
Nickie Aiken (Cities of London and Westminster) (Con)
Michael Gove
I think that the Vagrancy Act has to go. We do need appropriate legislation to deal with examples of aggressive begging, but the most important thing to recognise is that the work that Westminster Council and Greater Manchester have done to reduce rough sleeping has been exemplary. In partnership with my Under-Secretary of State for Levelling Up, Housing and Communities, my hon. Friend the Member for Walsall North (Eddie Hughes), the Minister for rough sleeping, we must redouble our efforts, but I want to congratulate Rachael Robathan, the hon. Lady’s successor, and Andy Burnham on their success in dealing with rough sleeping in the hotspots that have suffered most from that phenomenon.
Mr Toby Perkins (Chesterfield) (Lab)
Michael Gove
Conspiracy theories are all the rage these days, but I have to say that the hon. Gentleman should be above all that. He has a number of important constituency issues that I long to work with him on. I know that this raillery across the Dispatch Box can entertain others but—I say this in the most generous of spirits—let us concentrate on ensuring that we can work together for the people of Chesterfield, and if we have legitimate disagreements, that is fair enough.
Jane Hunt (Loughborough) (Con)
Around 40% of workers who commute from the Charnwood Borough Council area commute into Leicester city. This is due in part to the lack of housing in the city. However, despite there being a derelict doughnut of brownfield land around the city that could be utilised for house building, more and more housing is being built in the Leicestershire countryside. Will my right hon. Friend set out what the Government are doing to encourage development on brownfield land? Will he provide greater incentives to councils to ensure this happens?
Marion Fellows (Motherwell and Wishaw) (SNP)
Michael Gove
I could not agree more with the hon. Lady. The Post Office is a marvellous UK-wide institution, and the universal service obligation ensures that everyone across the United Kingdom benefits in exactly the same way. It is one of the strengths of our Union, and I look forward to working with her and with the Chancellor of the Exchequer to ensure we have a robust network for the future.
James Sunderland (Bracknell) (Con)
The Minister will know I am very concerned about rampant house building in east Berkshire and elsewhere in the south of England. Will he please assure me of what might be forthcoming in the planning Bill to protect assets such as farmland, school playing fields, golf courses, open spaces and the Pinewood Centre in Crowthorne?
Michael Gove
I am grateful to my hon. Friend and constituency neighbour for making that important point. He represents a beautiful part of east Berkshire, and it is important that we maintain our protections for areas of environmental importance and areas of aesthetic distinction. We all need to recognise that sustainable additions to the current housing stock are an important part of making sure the next generation also have a chance to own homes, too.
Ben Lake (Ceredigion) (PC)
Michael Gove
I would challenge the hon. Gentleman’s arithmetic, but I know time is short. All I will say is that when I visited Merthyr Tydfil and Pontypridd less than a fortnight ago there was jubilation, not on my arrival but on the arrival of the money from the levelling-up fund that is helping fantastic figures in Welsh local government to deliver for their citizens. I hope I have the chance to visit Ceredigion to see how we can support more projects there.
Laura Trott (Sevenoaks) (Con)
I urge my right hon. Friend to increase protections for the green belt in the forthcoming planning Bill. In Sevenoaks we are 93% green belt, yet we are constantly inundated with speculative planning applications that worry the local community. The answer should be clear: if it is green belt, it is protected; and if it is a speculative planning application, the answer is no.
Michael Gove
I would hate to be a developer facing my hon. Friend. When it comes to these speculative and ill-thought-out planning applications, developers had better put on their armour because she fires truth bullets at them from the hip, and repeatedly. Of course it is vital that we protect our green belt. However, the best protection that any local authority can have is to make sure its plan is properly designed and adopted.
Stephen Timms (East Ham) (Lab)
Michael Gove
Yes. I take this incredibly seriously. The right hon. Gentleman’s office may have already been in touch with the Department, but if it can be in touch with my private office directly, I will see what we can provide by way of additional information before he sees his constituents later. Whatever information we can provide in the meantime, let us try to make sure we can have a proper conversation about how we can resolve this problem in depth.
Selaine Saxby (North Devon) (Con)
Will my right hon. Friend meet me and other coastal MPs in Devon and Cornwall who are concerned about the deepening housing crisis, with no private rentals, no affordable homes and public services unable to recruit, as no one can afford to live in what were communities but have become holiday camps by summer and ghost towns by winter?
Michael Gove
My hon. Friend makes an important point, which emphasises the need for us to make sure that affordable housing is available for those in communities who are the vital workers—the productive workers who are at the heart of successful communities. Although of course it is legitimate for people to have second homes, that also means we need to look at one or two of the loopholes that allow some to not necessarily contribute to the community as much as they might.
Mary Kelly Foy (City of Durham) (Lab)
Across Durham, social housing in in short supply, while much of the stock that is available is of poor quality, and housing associations, such as Believe Housing, are struggling to meet the needs of residents on repairs and maintenance. Does the Secretary of State share my belief that residents in social housing in places such as Sherburn Hill and Brandon deserve housing that is fit to live in? Will he meet me to discuss the problems?
Michael Gove
I do share that view, and our affordable homes programme will be part of making good on our commitment to more and better social housing. I look forward to working with the new administration at Durham County Council in order to achieve just that.
James Daly (Bury North) (Con)
Does my right hon. Friend agree that culture can play a central role in levelling up throughout the north of England, and that an excellent example of this would be the proposed purchase and refurbishment of the Co-op theatre in Ramsbottom? May I invite him to visit this cultural gem from the 1870s, which has all its unique features still in place? What support can his Department give to supporting the cultural sector throughout the north of England, which is so important to levelling up?
Michael Gove
Culture is absolutely vital to levelling up. One thing I was discussing with my right hon. Friend the Secretary of State for Digital, Culture, Media and Sport earlier today was the importance of making sure that more of the Arts Council funding that is currently spent in London and the south-east is spent in the midlands and in the north. Our acting and performing talent is spread equally across this country, but funding and institutions are not. We must do more, and my hon. Friend is absolutely right.
Hilary Benn (Leeds Central) (Lab)
The Secretary of State said earlier that his revised plans to solve the cladding crisis would be published shortly. Will that be before the forthcoming recess? All long-suffering leaseholders in my area want for Christmas is finally to hear that they will not have to pay sums they do not have to fix a problem they are not responsible for.
Michael Gove
Yes, I really do have to come back before Christmas with proposals. I cannot promise at this stage that they will relieve the burden on every leaseholder of every obligation, but we will do everything we can to help.
Mike Amesbury (Weaver Vale) (Lab)
On a point of order, Mr Speaker.
Liverpool City Council: Commissioners' First Report
Michael Gove Excerpts(2 years, 12 months ago)
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The Secretary of State for Levelling Up, Housing and Communities (Michael Gove)
On 10 June 2021 the then Secretary of State for Housing, Communities and Local Government, my right hon. Friend the Member for Newark (Robert Jenrick), updated the House that he had appointed a team of four commissioners to Liverpool City Council. The commissioners’ responsibilities are set out in directions1 made under section 15(5) and (6) of the Local Government Act 1999 and include oversight of the council’s highways, regeneration and property management functions together with the associated audit and governance arrangements. The original best value investigation was initiated following a police investigation into allegations of fraud, bribery, corruption and misconduct in public office which involves a significant connection to Liverpool City Council. The wider criminal investigation into corruption is ongoing.
The commissioners submitted their first report to me on 5 October 2021 and I have discussed it with them. I was pleased to hear about the steps the council has taken to expose and stop wrongdoing. It is vital for Liverpool’s transformation that a clear line is drawn between the council of the past and the council of the future. The commissioners recognise the hard work, ambition, and determination of the Mayor and her cabinet, as well as the corporate leadership team. The commissioners have met dedicated and talented staff across the council who are working hard to deliver vital public services.
The commissioners have outlined to me, as they have stated clearly in their report, that the council is at the beginning of a long improvement journey and has a great deal to do in the next three years. In addition to the precise functions listed in the directions, the commissioners have encouraged the council to take a whole-council approach to improvement, with an expectation that the plans being developed will reflect this position. The commissioners are working with the council to develop their strategic improvement plan so they can focus on setting a sustainable long-term financial plan, improve corporate governance, deliver basic services well and meet the requirements of the statutory directions.
The commissioners shared with me their concerns about the council’s financial resilience and have outlined these in their report. I welcome the forthcoming review of the council’s financial resilience being conducted by the Chartered Institute of Public Finance and Accountancy (CIPFA) at the request of the commissioners. This review is expected to be completed before Christmas.
Given the circumstances of the intervention and legacy of the previous administration, it is not surprising that commissioners have found that the council’s approach to regeneration and property management lacks rigour and commercial awareness. I welcome commissioners working with these teams to embed strong commercial principles in these functions. Commissioners are also working with the planning team to address the lack of strategic policy frameworks and the significant backlog of planning applications which are constraining development in the city. It is likely to take another 12 to 18 months to fully stabilise the highways and transport functions in order to provide a firmer foundation for onward improvement.
Electoral reform in Liverpool is an important part of the intervention. On 22 September, in line with the terms set out in the statutory direction, a submission to the Local Government Boundary Commission for England (LGBCE) was approved by full council. In this the council proposed a reduction in the number of councillors from 90 to 85; and on 1 October, the LGBCE announced it was “minded to” accept the proposal. The council is due to submit its ward pattern proposal in December 2021. In addition, the intervention package includes the use of powers in the Local Government Act 2000 to provide for full council elections for the City of Liverpool from 2023. An order which delivers these electoral changes was laid before Parliament on 27 September and came into force on 29 October 2021. It provides for all Liverpool City Council councillors, and the directly elected executive Mayor of the City of Liverpool, to be elected and retire together every four years, starting in 2023.
I am mindful of the recent terrorist incident which took place in Liverpool on 14 November and commend the council for its response efforts. No one can doubt the professionalism and public service shown in the response by local government, the NHS and emergency services. I know that going forward, the Council will draw on the expertise of the commissioner team as needed as the community pulls together from this event over the coming weeks and months. I am however clear that the parameters of the intervention have not changed, and I expect the council to continue to prioritise the intervention and transformation work.
The council has a significant challenge ahead of it to provide the services that the residents of Liverpool City Council deserve. My Department stands ready to support commissioners in any way needed to secure this transformation and enable the council to contribute to our levelling-up agenda.
The commissioners have agreed to provide their next report to me in April 2022 and I will update the House on further progress with the intervention at that time.
A copy of the commissioners’ first report will be placed in the Libraries of both Houses.
1 https://www.gov.uk/government/publications/liverpool-city-council-directions-made-under-the-local-government-act-1999
[HCWS422]
Public Houses (Electrical Safety) Bill
Michael Gove ExcerptsMonday 1st November 2021
(3 years ago)
Commons ChamberRead Full debate Public Houses (Electrical Safety) Bill 2021-22 View all Public Houses (Electrical Safety) Bill 2021-22 Debates Read Hansard Text Watch Debate Read Debate Ministerial Extracts
A Ten Minute Rule Bill is a First Reading of a Private Members Bill, but with the sponsor permitted to make a ten minute speech outlining the reasons for the proposed legislation.
There is little chance of the Bill proceeding further unless there is unanimous consent for the Bill or the Government elects to support the Bill directly.
For more information see: Ten Minute Bills
This information is provided by Parallel Parliament and does not comprise part of the offical record
Mr Speaker
I thank the hon. Member for giving me notice of his point of order. I can confirm that I have had notice on this subject and a statement about it. I would of course expect the Prime Minister, and any Minister, to respond to Members from all parts of the House. That is what Ministers are there for; as I have said before, they are answerable to this House and to MPs. We need to support Members of Parliament to carry out their duties, so I would expect that all correspondence is answered in a timely way. I am sure that that message will have got through, via those on the Government Benches, and back to the Prime Minister. If the hon. Member does not receive a response quickly following his point of order, he is welcome to discuss with the Table Office in what way he might pursue that question, but I genuinely believe that people do get a lot, and I would not expect any Member not to be answered, so I can only presume—and hope—that there has been a genuine mistake.
The Secretary of State for Levelling Up, Housing and Communities (Michael Gove)
Further to that point of order, Mr Speaker. The hon. Member for Manchester, Gorton (Afzal Khan) is quite right to raise, in Islamophobia Awareness Month, the importance of countering anti-Muslim hatred. I know that he has secured a Westminster Hall debate later this week, which the Minister for Equalities and Minister for Levelling Up Communities, my hon. Friend the Member for Saffron Walden (Kemi Badenoch), will be responding to. There is an anti-Muslim hatred working group in my Department and, indeed, an independent adviser on Islamophobia. There is direct governmental responsibility, which rests with my Department, to deal with the issues that the hon. Member for Manchester, Gorton quite rightly raises. On the related question of matters within the Conservative party, I will make sure that his correspondence is replied to in a timely way.
Budget Resolutions
Michael Gove Excerpts(3 years ago)
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The Secretary of State for Levelling Up, Housing and Communities (Michael Gove)
My right hon. Friend the Chancellor of the Exchequer delivered his Budget statement against the backdrop and in the shadow of the covid pandemic, but he also did so unveiling a new era of economic optimism, as we build back better after that pandemic and secure the investment required to make sure that every part of this United Kingdom flourishes economically and every citizen has the chance to achieve their fullest potential.
It was striking that the Office for Budget Responsibility, in its assessment of the Chancellor’s response to the covid pandemic, said that he was “remarkably successful” in the steps that he had put in place. It is important, against the backdrop of the Budget statement and the spending review that accompanies it, to reflect for a second on the Chancellor’s success. The plan for jobs, which he was responsible for, has ensured that, contrary to the grim expectations that we would face unemployment of perhaps 12%, it is now expected to be 5% at most. It is also striking that the Office for Budget Responsibility estimated that the scarring effect on the economy—the drop in GDP that we would inevitably suffer as a result of the covid pandemic—would no longer be 3%, but just 2%.
Those figures, which reflect the success of my right hon. Friend’s approach hitherto, should be in our mind as we consider the approach that he is taking, because it is only as a result of success in ensuring sound money, success in ensuring an approach towards a balanced budget that commands the confidence of the markets, and success in ensuring that more of our fellow citizens can remain in employment that we have the foundations today on which to build, unite and level up our country.
Tony Lloyd (Rochdale) (Lab)
The right hon. Gentleman talks about success. In part of my constituency, child poverty is something of the order of 60%. That compares with a national average of just under 20%. Is that a success because, if not, what does levelling up mean for the children in my constituency?
Michael Gove
The hon. Gentleman makes an important point. At the heart of levelling up is a recognition, as he rightly reminds the House, that while talent is spread equally across this country, opportunity is not. There is a series of measures in the Budget statement designed to specifically attack the problem of child poverty. The creation of new family hubs is specifically designed to address that, as is the additional investment in the supporting families programme, the successor to the troubled families programme.
I should add that the changes to the taper on universal credit will also ensure, allied to the changes in the national living wage, that someone who is on the minimum wage, who is therefore in work, and who is receiving universal credit will receive at least £250 extra a year as a direct result of the national living wage increase and an additional £1,000 a year as a result of the associated changes to the taper. I recognise that eradicating poverty is not the work of one Budget, but it is only fair that everyone across the House recognises that there are measures in this Budget statement—measures being taken by this Government—directly to address the problems that the hon. Gentleman raises, because they are a scar that needs to be healed.
Yvette Cooper (Normanton, Pontefract and Castleford) (Lab)
Will the Secretary of State tell us whether the number of family hubs will match the number of Sure Starts that have been cut since 2010? Does he regret the loss of so many Sure Starts and recognise the serious damage that has been done to a generation?
Michael Gove
The right hon. Lady is right to point out that the Sure Start programme was always intended to help those who were most in need, but it was also intended to provide a universal offer. Inevitably, during the difficult period that we had after the 2008 financial crash, we had to make sure that we targeted resources accordingly, but after a period of retrenchment, we are now entering a period of renewal and reform. The family hubs are targeted not just at those who have children in the first 1,000 days of their life, which reflects superbly on the work of my right hon. Friend the Member for South Northamptonshire (Dame Andrea Leadsom); they are there to ensure that we have a comprehensive nought-to-19 offer. They go further than Sure Start children’s centres originally did—that is no criticism of Sure Start children’s centres—providing services that they did not.
Maria Eagle (Garston and Halewood) (Lab)
Will the Secretary of State give way?
Michael Gove
I will make a bit of progress and then try to take more interventions, if that is okay.
It is also important to recognise that the Budget statement saw a significant increase in public spending overall. It is the case that no Government can be judged purely by how much they spend. How that money is spent is critical. Additional public spending without reform and without a focus on value for money is money wasted. But I do not think that anyone across the House can deny that, with reform and with a focus on value for money, additional public spending, appropriately targeted, can help to transform public services for the better. In this Budget statement, £150 billion more will be spent over the spending review period. That is a 3.8% growth, in real terms, and in the Department for which I am responsible there is a 4.7% increase. Alongside that, there are the biggest increases in capital investment from any Government for 50 years; the biggest block grants ever given, since the dawn of devolution, to the Governments in Scotland, Wales and Northern Ireland; and an increase of 6.6% in the national living wage, which takes it to £9.50 an hour. All Governments can face criticism and all Chancellors can be attacked, but I do not think it credible for anyone in this House to say that the package that the Chancellor unveiled last week is any way not equal to the challenges that we face.
The question for Opposition Members, including those on the Front Bench, is what they would do differently. If they argue that we should spend even more, where would they spend it? Which budgets would they prioritise? If they were to spend more, which budgets would they deprioritise? What would they cut to fund the additional spending? If they would not cut, would they borrow more? If so, how much more? With what impact on our credibility in international markets, on interest rates and on our capacity to fund our debt and deficit? Let us bear in mind that debt is falling and the deficit is being reduced as a result of the Chancellor’s shrewd approach.
If the Opposition were to borrow more, would they tax more? If so, whom would they tax? What credibility can they have on tax when we introduced a specific one-off increase to fund the national health service and social care—and the Labour party voted against it?
Those are all questions that Opposition Front Benchers want to avoid. To what lengths have they gone to avoid it? Well, earlier today I spent a few seconds on Twitter, not tweeting, but studying that social platform. In particular, I studied the tweets of my opposite number, the hon. Member for Croydon North (Steve Reed), who has been tweeting promiscuously and vociferously over the weekend—but what has he been tweeting promiscuously and vociferously about? Has he been tweeting about the spending review? Has he been putting forward alternative plans for local government, alternative propositions on levelling up, a new plan for housing or perhaps a new proposition on communities?
No. The hon. Member has only one tweet about the spending review. In contrast, he has tweeted five times as often about Crystal Palace football club. We are all, I think, in awe of Patrick Vieira’s success in ensuring that Crystal Palace could beat Manchester City 2-0 at the weekend, but however historic and unprecedented that victory is, I think we all have a right to ask whether, if Labour is silent on the spending review—if it has nothing to say by way of criticism or alternative—that is perhaps an indication of the success of the Chancellor in framing a Budget and a spending review right for this country.
Ed Davey (Kingston and Surbiton) (LD)
To get back to some serious points for a moment, UN Secretary-General António Guterres told Glasgow’s COP26 today that the world’s
“addiction to fossil fuels is pushing humanity to the brink.”
Will the Secretary of State use his planning powers to protect the beautiful parts of his own county of Surrey and prevent it from being turned into a British Texas? Why are Conservative Ministers prepared to allow new oil drilling in the Surrey hills and the north of Scotland when we are in a climate crisis?
Michael Gove
I have huge respect and affection for the right hon. Member, but I remember when we sat in Cabinet together and he was Secretary of State for Energy and Climate Change. I remember when he spoke to the Liberal Democrat conference, when such a thing occurred —when there were enough Liberal Democrats to get together to fill a conference hall. I remember him telling that Liberal Democrat conference hall that it was time—please forgive my language, ladies and gentlemen—to get fracking. Now that he is no longer in government and is in opposition, he seems, curiously enough, to have reversed his position, an unprecedented thing for a Liberal Democrat to do.[Laughter.] Saying one thing to one constituency and another thing to another? Remarkable!
I should say that my own views on fracking in Surrey—and indeed elsewhere—are on the record, and the right hon. Member can be reassured that my opposition to fracking in Surrey, particularly in a case that came up in my constituency, is on the record; but because my views are on the record of the past, I should say no more about the future.
Mr Clive Betts (Sheffield South East) (Lab)
May I return the Secretary of State to the 3% increase in spending power for local councils? Has he seen the analysis by the Institute for Fiscal Studies? It states that the 3% includes the £5.4 billion that the Government have used from the levy, but as the way in which councils must spend it is specified, it amounts to only a 1.8% increase in money that they can choose, and the 1.8% is there only if they put their council tax up by 3% a year.
Michael Gove
The hon. Gentleman makes an important point. Additional funding is, quite rightly, being devoted to improving adult social care, and it is also the case that the overall rise in core spending power for local government is at 3%. If we look back, we see that that is a significant increase, and it is also part of the broader increase of 4.7% overall in the spending that we are providing. Local government is not just being given more money for discretionary spending and for adult social care; we are also seeing additional spending from the Department for Education on special educational needs, we are seeing additional spending for transport, particularly in our city regions, and we are seeing the levelling-up fund as well. It is important to look in the round at the amount of money available to local government and spent in local areas.
Maria Eagle
Knowsley, which is one of the boroughs that my constituency covers, has gone from being the fifth most deprived local authority in 2010 to being the second most deprived now. One would have expected a Budget such as this, about levelling up, to focus particularly on giving necessary resources to Knowsley, but despite being a priority 1 area it has been overlooked for the levelling-up fund, having previously been overlooked for the future high streets fund and the towns fund. What does Knowsley have to do, now that it is the second most deprived area, to get some money from the Government so it can try to level up? [Interruption.]
Michael Gove
The hon. Lady has made an important point. There are specific and long-standing issues in Knowsley and other parts of Merseyside that we need to address as part of levelling up. However, I think she does herself down slightly, because I understand that thanks to her advocacy in her constituency two levelling-up bids succeeded, and although they do not affect Knowsley, they do affect Liverpool. Some £20 million has gone towards helping Liverpool City Council with regeneration, and £37 million has gone towards recovery. Those sums are not insignificant.
Nevertheless, I take the hon. Lady’s point about Knowsley. I think it important to remind her, and indeed the House, that the £1.7 billion in the levelling-up fund which was allocated by my right hon. Friend the Chancellor is just one third of the total sum allocated over the course of the spending review, and I look forward to working with her and with other colleagues to make sure that the remaining funds can be allocated effectively.
Peter Grant (Glenrothes) (SNP)
I do not know whether the Secretary of State heard this, or indeed whether the hon. Member for Garston and Halewood (Maria Eagle) heard it, but when the hon. Lady asked what her constituents had to do to get their fair share of levelling-up funding, the clear message from the Tory Back Benches was that they had to return a Tory MP. Tory MPs clearly think that it is all about putting money into Tory-held constituencies. Does the Secretary of State agree with his own MPs that levelling-up funding will be targeted at Conservative constituencies, or does he need to have a private word with them afterwards to stop them giving away party secrets?
Michael Gove
We do not need to look into the crystal ball; we can just read the book. There are a number of Scottish National party MPs whose advocacy has ensured that they receive levelling-up funds in their constituencies. I congratulate the hon. Member for Edinburgh North and Leith (Deidre Brock) on securing £16 million for UK Government money for the Granton gasholder in her constituency. The hon. Members for Central Ayrshire (Dr Whitford), for Aberdeen North (Kirsty Blackman) and for Aberdeen South (Stephen Flynn)—and even the right hon. Member for Ross, Skye and Lochaber (Ian Blackford)—have managed to secure money from either the levelling-up fund or the community ownership fund in this Budget.
It is fantastic that we have Scottish National party MPs petitioning my right hon. Friend the Chancellor of the Exchequer to bypass the Scottish Government in order to spend UK Government money in their constituencies. [Hon. Members: “More! More!”] And indeed there will be more, because in the forthcoming community renewal fund allocations, more money will be going to constituencies represented by Scottish National party MPs. That is because, as the Chancellor of the Exchequer pointed out in his Budget speech, we are stronger, better and wealthier together. It is great that Scottish National party MPs are putting the UK Government’s money where the Scottish Government’s mouth isn’t.
Levelling up is about making opportunity more equal across our whole United Kingdom. It is a recognition, as the Prime Minister and the Chancellor of the Exchequer have said, that while talent is spread equally across the United Kingdom, opportunity is not. If levelling up is to succeed, yes, we need funds such as the levelling up fund, but we also need a systemic approach to how the Government support local government, other institutions and the private sector in order to spread prosperity.
One of the challenges that we face when it comes to levelling up is that the difference between the more economically successful areas of the United Kingdom and those that are less successful involves a kind of “Anna Karenina” challenge. In the first line of that novel, Tolstoy points out that all happy families are happy in a similar way, but each unhappy family is unhappy in its own way. We can apply that to communities that need more help. The challenges that Knowsley faces are different from the challenges that Grimsby faces. The challenges that Bury faces are different from those that Burnley faces. We need to recognise that while all the challenges faced in coastal towns, in satellite towns around our major cities and in rural areas have common features, they all deserve to be addressed in a unique way.
If we are going to improve economic productivity and wellbeing, we need to recognise—as the Under-Secretary of State for Levelling Up, Housing and Communities, my hon. Friend the Member for Harborough (Neil O’Brien), has pointed out—that for levelling up to succeed, we need to ensure that local leadership improves and that we build on the success of, for example, combined authority Mayors such as Andy Street and Ben Houchen. We also need to improve living standards where they are lower, and to improve public services, particularly where opportunity has fallen behind. We also need to play a part in helping to restore pride in place, so that communities feel in a genuine sense that they have taken back control.
The Budget succeeded in addressing many of these challenges by ensuring that the funding was there to focus on each of the ingredients that require to be in place if we are to have levelling up. One of the first and most important areas in which the Budget made provision for change was in education, particularly in further education and in skills. An additional £3.8 billion is being spent over the course of the spending review period. That is a real-terms increase for those 16 to 19-year-olds who are in full-time education, and there is additional money to ensure that our groundbreaking T-levels are more available. There will be additional hours for those in further and technical education to ensure that they get the very best tuition, and there will be skills boot camps to ensure that we can accelerate the move of people into the labour market.
There will also be eight new institutes of technology—prestige further education institutions concentrated in the areas that most need levelling up. On top of that, the multiplier programme will provide more than £500 million to improve adult numeracy across the United Kingdom. All of this comes together in a package to recognise that, as well as building on the success of our education reform programme in schools, we also ensure that adult, technical and vocational education at last receives the focus, attention and funds that it deserves.
As well as investing in skills, we are going to invest better in small and medium-sized enterprises, which are of course the engine room of our economy. That is why the Chancellor outlined plans for the British Business Bank to expand in order to ensure that SME finance is more readily available. Regional funds are being extended across the northern powerhouse. The existing success of the BBB’s Cornwall operation is being extended to cover the whole of the south-west, and there will be new branches of the bank opening in Scotland, Wales and Northern Ireland in order to build relationships with small businesses and to ensure that they have access to the debt and equity finance that they need.
Alongside that, there will be increased investment in research and development. An additional £20 billion will be spent over the spending review period, going up to hit our £22 billion target, and this research and development money will move outside the greater south-east, where so much research and development expenditure has been concentrated in the past, in order to ensure that, whether it is in Manchester or Newcastle, areas of university excellence that require additional investment to ensure the smarter diffusion of innovation into the economy are supported in the way that they should be.
On top of that, we have the global Britain investment fund: £1.4 billion that will ensure those sectors that are strong and growing in our economy get the additional inward investment they need to drive up economic growth. We know inward investment is often the route to higher productivity, and that is why there will be £1.4 billion specifically targeted on the automotive sector, on renewables and on life sciences.
Liam Byrne (Birmingham, Hodge Hill) (Lab)
Can the Secretary of State just explain to the House why, if the global Britain fund is forecast to be so successful, the Office for Budget Responsibility has downgraded our trade forecast?
Michael Gove
I will say two things. It is great to see the right hon. Gentleman in his place. When he left as Chief Secretary to the Treasury, he famously left a note saying that “there is no money” left; now, as he can see, there is significant money available to be allocated in all these areas. I recognise that he was speaking in jest and that those words should not be taken out of context.
More broadly, we face, as indeed every country faces, a global race for talent and a global appetite for additional investment. It is because of the global Britain investment fund, because of what we are doing in research and development and because of the way we are reforming UK Research and Innovation that we will be in a position to ensure that our economy is equipped to take advantage of the opportunities that Brexit brings, and the opportunities that the Chancellor of the Exchequer has outlined. I am confident that the right hon. Member for Birmingham, Hodge Hill (Liam Byrne) will see our exporting ability and the inward investment routes into this country grow in years to come.
I should point out that at the beginning of my remarks, I said that the initially pessimistic view that was taken of our capacity to weather the covid storm has been gainsaid by the success of the Chancellor’s approach. Again, there is no need to look in the crystal ball; the right hon. Gentleman need only look at the book. The book and the record show the success of the Chancellor’s approach.
Michael Gove
I will try to make a little bit more progress.
It is also significant that, if we are to level up, we must ensure that we have appropriate investment not only in business itself, through the funds I have mentioned and the initiatives I have outlined, but in transport. We must ensure that the private sector is firing on all cylinders, and that means ensuring in particular that our great city regions have the transport networks required. That is why my right hon. Friend the Chancellor has devoted £5.7 billion over the course of the spending review period to supporting the ambitious plans put forward by metro Mayors and others to improve transport.
More than £1 billion has been allocated to the Mayor of the West Midlands Combined Authority, and more than £1 billion also to the Mayor of the Greater Manchester Combined Authority, Andy Burnham. Mr Burnham said last week—a point he made on Twitter and on broadcast; he was happy to comment on the spending review, unlike the hon. Member for Croydon North—that this was a “very positive first step.” He said:
“This feels like a breakthrough today…this is a big down payment”
on the infrastructure we need.
Mr Burnham welcomed that investment, and of course alongside it we had £830 million for West Yorkshire, £570 million for South Yorkshire, £710 million to improve transport in the greater Liverpool region and £300 million for Teesside. All those investments will help the Mayor of Greater Manchester, as he rightly wants to, ensure a Transport for London-style approach to the delivery of transport in that great region.
On top of that, as the Chairman of the Housing, Communities and Local Government Committee, the hon. Member for Sheffield South East (Mr Betts), pointed out, we have £4.8 billion going to local government over the spending review period. This is necessarily an injection of cash to help local government ensure it can play its part in levelling up, and to ensure that it is supported by thriving businesses. We have also reformed business rates and moved towards a three-year evaluation, relief on improvements, including improvements that will help to deal effectively with climate change, and a 50% reduction for small businesses in the most affected sectors.
All that comes alongside a commitment to additional spending from my Department to help those most in need. We also have £630 million a year allocated over the next three years—that is £1.9 billion in total revenue—to help to deal with homelessness and to eliminate rough sleeping. There is also additional capital investment specifically targeting those who have problems with drug use and those who have been in custody, to ensure that we can help them into the accommodation they need to deal with the challenges they face. Overall spending in this area is 75% higher than pre-pandemic levels.
Michael Gove
I am more than happy to give way to the Member of this House who has done more to deal with homelessness than any of us.
Mr Speaker
Just before you do, may I just say to the Front Benchers that I am getting bothered, as we have a lot of Members I want to get in? I am enjoying this very much and it is great entertainment, but I am getting bothered, as this is about Back Benchers as well and so I hope we are going to save some time for them. I think we are nearly 30 minutes in.
Michael Gove
My hon. Friend is absolutely right: those pilots have been successful. One thing we want to do is make sure we can apply their success more broadly, and further announcements will be made in due course.
Mr Speaker, I am very conscious of the fact that there is so much to unpack in the Budget and so many more people wish to speak. However, it would only be appropriate for me also to point out, before I come to my conclusion, that when it comes to housing itself—to the provision of safe, decent and affordable housing—my right hon. Friend the Chancellor has risen to the occasion, with £11.5 billion for our affordable housing programme and £1.8 billion for urban regeneration, and with a determination to ensure that we take a brownfield-first approach to the provision of new housing, recognising that what we need to do, which is right for the climate, levelling up and growth across this country, is concentrate on regenerating those communities that have suffered economically in the past and whom it is our duty to help now.
I hope the House can see that across the piece, in every area that matters when it comes to levelling up—supporting the private sector to invest and to export; making sure that local government has the tools it needs to play its part as a leader in regeneration; making sure that the money is there to help the most vulnerable, who should be our first concern; ensuring that both the funding and the reform package is in place to provide the schools of the future and the skills that we need; and, above all, making sure that there are decent, affordable homes available to all our citizens—the Chancellor’s package meets the need of the hour. That is why I commend this Budget statement to the House.
Several hon. Members rose—
Ed Davey
My hon. Friend is a real campaigner when it comes to the environment and climate change, and she is absolutely right. I make a prediction to her: this continuing concerted love-in with fossil fuels will be seen by our children as criminally negligent.
Let me be crystal clear about the Glasgow COP. Having led the UK delegation to three past COPs—in Doha, Warsaw and Lima—when I was Secretary of State for Energy and Climate Change, and having prepared the UK’s negotiating position ahead of Paris, I desperately hope that Glasgow succeeds. But when I see the Government’s gross diplomatic mistakes ahead of COP26, and when I hear a Budget speech that does not even mention climate change, I fear for the outcome of Glasgow, and I am angry with this Government.
I regret to say that, as I watched the Prime Minister pose in Rome’s Colosseum, he reminded me less of Emperor Augustus than of Emperor Nero. He talks about ending coal use across the globe, while refusing to stop a new coal mine being opened in Cumbria. He asks world leaders for the political will to act on climate change, while allowing new drilling—new drilling!—for oil on land in Surrey and offshore in Scotland. With the Secretary of State for Levelling Up refusing to use the planning power that he has for climate action, I fear that the only levels that will go up under his leadership are the sea levels.
I have to say to the Secretary of State that I am proud to be the Minister who passed the regulation that did more to stop fracking under this Government and I am proud that I passed it under his own nose in the Cabinet. He was one of the people urging me to go on to fracking but, because I fooled him, I managed to make renewable energy the watchword of the Liberal Democrats in power. We nearly quadrupled renewable energy. We made Britain the world leader in offshore wind power, despite opposition from the Conservatives. I am so proud that it is the Liberal Democrats who were responsible for cutting coal use in this country more than any other party.
By failing to take tough action on fossil fuels, the Government have missed an opportunity to help people who are struggling with heating bills, and to help Britain’s industries which are struggling with high energy costs. Here is what the Liberal Democrats would have done. We would have brought in a one-year windfall tax, on the gas producers making an absolute killing with the rise in global gas prices. We would have used that windfall and shared it with Britain’s fuel-poor and with Britain’s struggling energy-intensive industries. We would have used the cash from our fossil fuel windfall tax to target help on low-income households having to choose between heating and eating. For this, we would have more than doubled the warm home discount, and doubled the number of people who benefit from it.
Ed Davey
In a second.
We would have matched that immediate help with heating bills with a massive programme of home insulation, where this Government have so spectacularly failed. As I give way to the Secretary of State, I hope that he will say what investment there is under this Government for people to insulate their homes. The answer, by the way, is none.
Michael Gove
The right hon. Gentleman boasted that he had deceived members of the Cabinet, raising questions, inevitably, about the reliability of any Liberal Democrat promise. In 2013, he said this:
“Shale gas represents a promising new potential energy resource for the UK. It could contribute significantly to our energy security, reducing our reliance on imported gas, as we move to a low carbon economy.
My decision is based on the evidence. It comes after detailed study of the latest scientific research available and advice from leading experts in the field.”
He also said that the US’s economy had benefited greatly from fracking, and that was why we could benefit here. Which of those words does he now enjoy eating?
Ed Davey
The Secretary of State is known very well for his debating skills, but he is also known for his political skills. My political skills were shown in my ensuring that his Ministers, and he, believed that we were taking real action on fracking when I was passing the regulation that did more to stop fracking—let him hear this. We did more to stop fracking than any other group of politicians. I am really proud that the Liberal Democrats did more on renewable energy—
Michael Gove
On a point of order, Madam Deputy Speaker. The record must show that fracking was banned in the UK, but that it was the right hon. Gentleman who removed that ban because he was confident that the procedure would be safe from now on.
Mr Clive Betts (Sheffield South East) (Lab)
First, I associate myself with the comments of the hon. Member for Harrow East (Bob Blackman) about the need for more money for social housing and cladding and the importance of dealing with the issues of rough sleeping. We have dealt cross-party with those matters on the Housing, Communities and Local Government Committee.
Generally, I am supportive of the whole idea of levelling up, but I must say to the Secretary of State that I could be a lot more enthusiastic if I knew what it meant, how it would be achieved and how success would be measured. The recent report by the Business, Energy and Industrial Strategy Committee said that, for all the current documents, levelling up was
“a wide ranging and disjointed programme of random policies…it is difficult to see how they all tie together under one over-arching strategy.”
I think that is a fair comment on what exists now.
Presumably, it is the job of the Secretary of State, with his new responsibilities, to produce that overarching strategy and to tie together all these disparate funding streams. I presume we will see all that in the White Paper, which is hopefully coming shortly, and no doubt we can explore that further with him when he comes to the HCLG Committee next week.
However, as well as having an overarching national strategy, councils need the ability to plan and have a local strategy. That means doing away with all the disparate pots of money they have to bid for. The Local Government Association last calculated that there are 117 different pots of money that councils have to bid for. I am not making a party political point here; if we go to Conservative leaders of councils, they will be just as strident in their criticisms as Labour council leaders on this. Will the Secretary of State please look at that as a major issue?
Mr Betts
I see the Secretary of State nodding, so hopefully we might be able to get some change there.
The Secretary of State is right to emphasise the importance of transport. Yes, the South Yorkshire region got £600 million, but its bid to the levelling up fund for transport expenditure got turned down completely. When councils look at their local plans, there is a levelling up fund, a bus service improvement plan, a city region sustainable transport settlement plan and a zero emission bus regional areas fund to bid for. That is four different pots of money that councils must bid for to fund local transport services and that they must try to tie together, in the hope they may get some of them. That is really no way to enable our city region Mayors to plan the transport for their areas—no way at all.
That, of course, is against the background that in the Sheffield city region, expenditure on buses is £5 per head of population. It is £70 per head of population in London. That really needs to be addressed in levelling up.
I welcome the successful levelling-up fund bid from Sheffield for the regeneration—or the beginning of the regeneration—in Attercliffe in my constituency. I also welcome the £1.8 billion for brownfield sites, which is really important. Peter Freeman, the chair of Homes England, came to look at Attercliffe and the sites there, and I say to the Secretary of State that some changes to the way Homes England distributes its money are needed. First, we need to do away with the 80:20 rule, whereby Homes England is obliged to spend 80% of its money in the south-east—that simply cannot be right. We must look again at the Green Book evaluations of spending on housing sites, which are totally biased towards uplift in land values. There is bound to be a bigger uplift in land values on a greenfield site in the south than on a brownfield site in the north, and that needs addressing. We also need to look at the no additionality rule; where a derelict site with 100 old homes is cleared and 100 new ones are put in, thus really regenerating the area, Homes England funding cannot be got towards that. Those three issues do need addressing.
Finally, we had a discussion about the Institute for Fiscal Studies analysis of local government spending and what that meant. I say to the Secretary of State that in the past 10 years local government has been the major subject of austerity cuts—it has had bigger cuts than anywhere else. Those cuts have fallen disproportionately on the poorest areas; it has not been levelling up, but a major exercise in levelling down. The very areas that he says he now wants to help have had the biggest cuts to their funding in the past 10 years. This Budget will probably stop the cuts getting worse, but it is not seriously going to reverse them. There is a Government policy on levelling up, an aspiration and even a Department and a Secretary of State with “levelling up” in the title. I look forward to him actually showing us what levelling up means, and producing the policies and a coherent strategy that actually deliver it.
Oral Answers to Questions
Michael Gove Excerpts(3 years, 1 month ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
David Johnston (Wantage) (Con)
The Secretary of State for Levelling Up, Housing and Communities (Michael Gove)
The response to last year’s consultation on the planning White Paper generated significant interest. I am considering all those responses and will make an announcement on next steps in due course.
Caroline Dinenage
I welcome the Secretary of State to his role.
The Gosport peninsula is more than 80% built on, and a further 12% of it is conservation area. There is simply nowhere to build the wildly unrealistic 2014 housing numbers without decimating any remaining green areas and, of course, the vital strategic gap. Worse, the 2018 Office for National Statistics population data reveal that our actual housing need is 3,000 fewer homes. I really understand that the nation needs houses, but this Government champion localism. Will he please give me hope that they will not be imposing unrealistic, outdated housing numbers on us?
Michael Gove
It is still something of a surprise to me, Mr Speaker. I do not know what it is like for you.
I completely understand the unique issues faced by my hon. Friend’s constituents. The unique geography of the peninsula and the communities she represents poses particular challenges when it comes not just to meeting local housing need, but to respecting the environment and, indeed, the nature of the communities and their special cherishable character. As we take forward our proposals for planning reform, we will be balancing the need for new housing with environmental concerns and also the vital importance of listening to local people.
Julie Marson
The Harlow and Gilston garden town development is the largest release of green-belt land for our housing for generations. The scale of the challenge for magnificent community groups such as the Hunsdon, Eastwick and Gilston neighbourhood plan group to get their voices heard is a David and Goliath challenge. Does my right hon. Friend agree that we need to listen to and trust local people, and will he meet me to discuss this project and how it can provide a live case study for the design of future planning reform?
Michael Gove
My hon. Friend makes a very important point. It is thanks to the work of organisations such as the Hunsdon, Eastwick and Gilston neighbourhood plan group that we involve local communities in making these uniquely sensitive decisions. As we consider our plans for the future, one thing we want to do is to make sure that the voice of local people is integrated more effectively into planning decisions.
David Johnston
The two district councils that Wantage and Didcot cover are in the top 10 areas of England for houses built, but in the bottom third for infrastructure. People would be less unhappy with the house building if it came with more GP surgeries, the reopening of Grove station and better roads. Will my right hon. Friend assure me that, as he reforms planning, there will be a greater emphasis on improving infrastructure to support the population that the houses come with?
Michael Gove
My hon. Friend makes a very important point. Across the country, many people would welcome new housing development enthusiastically if they had the assurance of knowing that there was sufficient investment in infrastructure to ensure that public services and other utilities were there for them so that additional pressure was not applied unequally. His argument is correct, and it has been incorporated into our thinking about the future of planning reform.
Mr Clive Betts (Sheffield South East) (Lab)
I welcome the Secretary of State to his new role and look forward to seeing him at the Select Committee next week. I do not know whether he has had the chance to read yet the Select Committee’s review of the planning reforms. May I suggest that local plans need to be at the heart of a plan-led system, indicating where development is likely to happen? To do that, local plans need to be simpler, easier to understand and get more people involved in the process so that there is real community buy-in to them. Finally, even when local plans are in place, there still needs to be an opportunity for local people to be able to comment on, object to, and, where necessary, influence the outcomes of individual planning applications.
Michael Gove
I am very grateful to the hon. Gentleman, who is a very distinguished Select Committee Chair. At the danger of establishing a treacly consensus right from the very beginning, may I say that I entirely agreed with the first part of his question? As for the second part, I certainly welcome that direction of travel.
Rachael Maskell (York Central) (Lab/Co-op)
Today, York has been voted Britain’s most popular city. However, if we get planning wrong, we will embed inequality into our city. The governance structures over projects such as York Central are currently in the wrong place, so they will not deliver for the people in my city. Will the Secretary of State meet me to discuss York Central, as I have met many of his Ministers, so that we get the governance structures right for the future?
Michael Gove
I would be delighted to meet the hon. Lady. It is important to recognise that we want to work with York to ensure that there is a local plan in place, but it is also the case, as she knows, that this Government are investing in York, deploying more resource and bringing more civil servants to the beautiful city that she represents. I hope that we can continue, in that consensual manner, to deliver for the people of York.
Ruth Cadbury (Brentford and Isleworth) (Lab)
I welcome the new Secretary of State to his role. I also welcome his replies to hon. Members, as he said that, effectively, the Government’s developers charter is being reviewed. I have not seen the right hon. Gentleman torpedo something so effectively since he sunk the Prime Minister’s leadership bid in 2016. But we know that, like Lazarus, the Prime Minister came back. Will the Secretary of State therefore take this opportunity to confirm that the Government’s wholly unpopular and disastrous planning reforms will never return?
Michael Gove
I am grateful to the hon. Lady for taking me back to the halcyon days of 2016; it was not so much a torpedo being launched as an unexploded bomb going off in my own hands. As the former Member for Kensington and Chelsea, Sir Malcolm Rifkind, pointed out, one of the things about committing political suicide is that you always live to regret it.
On the hon. Lady’s broader point, it is only fair to say that the planning White Paper was mischaracterised by many. There is so much that is good in it, but it is important that we listen to concerns that were expressed in order to ensure that an already powerful and compelling suite of proposals is even more effective.
Claire Coutinho (East Surrey) (Con)
Nigel Mills (Amber Valley) (Con)
The Secretary of State for Levelling Up, Housing and Communities (Michael Gove)
This Government plan to expand, augment and increase devolution across the United Kingdom, and we have already begun discussions with areas interested in county deals, and we will be setting out next steps in the levelling up White Paper.
Nigel Mills
I thank the Secretary of State for that answer. In the east midlands, we look with some envy at neighbouring regions that have elected mayors and have successfully attracted more investment. I urge him to make progress on an east midlands elected mayor. In the meantime, if he cannot do that, Derbyshire stands ready for a county deal and would appreciate being a pathfinder.
Michael Gove
My hon. Friend makes an important point. Expanding the model of combined authority mayors and a greater level of devolution are at the heart of making sure that local communities have strong leaders who can make a decisive difference, not least in the economic sphere. I know that Derbyshire County Council is now under exemplary Conservative leadership and we hope to be able to build on that.
Patricia Gibson (North Ayrshire and Arran) (SNP)
I, too, welcome the Secretary of State to his place. The United Kingdom Internal Market Act 2020 fundamentally undermined the devolution settlement and was explicitly rejected in Holyrood and the Senedd. He claimed again today that he seeks to augment devolution, so can he explain how riding roughshod over democratically devolved Parliaments does that?
Michael Gove
We never ride, roughshod or otherwise, over the devolution settlement. I have two things to say: first, I hope that we will shortly receive news from the Chancellor of the Exchequer about the allocation of funds under the Act’s financial assistance power through the levelling-up fund. I am pleased to say that a number of SNP MPs—the hon. Lady’s parliamentary colleagues —as well as SNP councils, have backed bids to that fund. It is great to have locally elected representatives on the ground supporting the financial assistance power of the Act and the vital importance of working together. Secondly, although of course I will not interfere in the devolution settlement, there is a contrast between our approach, where we devolve more power to local government in England, and that of the current Scottish Government, which takes power away from Scottish councils.
Jake Berry (Rossendale and Darwen) (Con)
Across Lancashire, we are ambitious about having a county deal—with a mayor, I hope—but levelling-up bids must come first. Can the Secretary of State give some clarity about the timing of the second round of those bids? In Rossendale, where we are working with our levelling-up board on a plan, we need to know the timeframe.
Michael Gove
My right hon. Friend is right: east Lancashire is one area that we will focus on in the coming months. Much more needs to be done, and he has been at the forefront of ensuring that the voice of the whole of the north of England—not just that of east Lancashire—is heard clearly in Whitehall. The Chancellor of the Exchequer will be in a position to share details of the next round with the House a wee bit later.
Justin Madders (Ellesmere Port and Neston) (Lab)
Steven Bonnar (Coatbridge, Chryston and Bellshill) (SNP)
The Secretary of State for Levelling Up, Housing and Communities (Michael Gove)
My assessment is that they are really not bad at all.
Steven Bonnar
I thank the Secretary of State for that answer. I tend to disagree, but I will accept it anyway.
The chief of staff to the former Prime Minister, the right hon. Member for Maidenhead (Mrs May), said recently that the democratic mandate for a second Scottish independence referendum was “clear” and apparent. He also said that support for Scottish independence rose from the very moment the right hon. Member for Uxbridge and South Ruislip (Boris Johnson) became Prime Minister. That is being driven mainly by opposition to the Government’s Brexit policy and the perceived relative handling of the covid-19 pandemic by the UK and Scottish Governments. Would the Secretary of State care to tell the House and the people of Scotland why he thinks continuing to dismiss Scotland’s democratic rights will strengthen the Union?
Michael Gove
Scotland’s democratic destiny was asserted in the 2014 referendum, when a majority of people voted to remain in the United Kingdom. The strength of the United Kingdom is visible daily. In just a week’s time, the dear green place that the hon. Gentleman has the honour to represent—Glasgow—will be home to COP26. One of the things about COP26 is that we would not have that global climate change conference in Glasgow if Scotland were not in the United Kingdom. We would not have a billion-pound-a-year Union dividend if Scotland were not in the United Kingdom, and indeed we would not have the hon. Gentleman’s mellifluous tones gracing this House if Scotland were not in the United Kingdom.
Virginia Crosbie (Ynys Môn) (Con)
This Government are committed to at least one new freeport in Wales. I chair the Anglesey freeport bidding consortium. Can the Secretary of State reassure my Ynys Môn constituents that he is working with the Welsh Government to ensure that there is at least one new freeport in Wales?
Michael Gove
Freeports are one of the many advantages that all the nations of the United Kingdom can enjoy as a result of our departure from the European Union. Freeports will allow investment in every part of the United Kingdom, and I am looking forward to working with partners in Wales, and indeed in Scotland and Northern Ireland, to make sure that we can seize the opportunities that Brexit provides for our coastal communities.
Patricia Gibson (North Ayrshire and Arran) (SNP)
I feel I should doff my cap at the munificence of this Parliament towards Scotland.
Devolved Governments are not involved, consulted or considered in trade deals; Scotland is shut out of carbon capture and storage, despite the hot air of Better Together promises; and the United Kingdom Internal Market Act 2020 undermines the last two decades of the devolution settlement. In what ways does the Secretary of State think that bypassing the democratically elected devolved Parliaments shows that this Union is indeed a partnership of equals?
Michael Gove
I meet weekly with First Ministers from Scotland, Wales and Northern Ireland. If the hon. Lady were privileged enough to be able to observe those meetings, she would see that they are like a nest of singing birds. They are festivals of cordiality. I recognise that the SNP needs to keep its activist base happy with the recitation of these grievances, but the reality is that those who serve in the Scottish Government know that we in the UK Government are their friends and partners, and Scotland has no better friends than the other citizens of the United Kingdom.
Jack Brereton (Stoke-on-Trent South) (Con)
Mr Toby Perkins (Chesterfield) (Lab)
The Secretary of State for Levelling Up, Housing and Communities (Michael Gove)
I would like briefly to pay tribute to two of my predecessors. It is an honour to follow my right hon. Friend the Member for Newark (Robert Jenrick) in this role. I thank him for his dedicated service, and particularly for the role he played in championing integration and social cohesion in this county, and in ensuring that we recognise how vital beauty is in the built environment. It is also a privilege to follow our departed friend James Brokenshire in this role. There is not enough time now for me to say how much we all owe him, but he was a truly wonderful guy and a great Secretary of State.
Mr Perkins
I associate myself with the comments made by the Secretary of State. The great benefits that HS2 will bring to the east midlands and Yorkshire will be undermined if we do not get the increased capacity and reliability that new lines would bring, so it was deeply concerning this weekend to hear the Government suggesting that future plans for the eastern leg of HS2 might not involve new lines. Can the Secretary of State confirm that he is an absolute advocate in Parliament and around the Cabinet table for the letter sent to him by the leaders of Leeds City Council and Nottinghamshire County Council, which stated that levelling up would
“fall at the first hurdle”
if we did not get full investment in the eastern leg of HS2, with new lines attached?
Michael Gove
The hon. Gentleman makes an important point, but I will not pre-empt anything the Chancellor may say later this week about the commitment we are making on infrastructure.
Dr Luke Evans (Bosworth) (Con)
Michael Gove
Having been in this House for 16 and a half years, I am familiar with what zoos look like, but it would be an absolute pleasure to visit my hon. Friend’s constituency. He makes an important point about the importance of linking environmental awareness and levelling up in the drive to unite and level up the country, and ensure that we address our broader environmental concerns.
Steve Reed (Croydon North) (Lab/Co-op)
May I associate myself with the comments made about the former Members for Southend West, and for Old Bexley and Sidcup, who are both immensely missed by the whole House?
It is a pleasure to welcome the Secretary of State and the new Ministers to their place, and to see older Ministers as well—why not?
It has been four months since the deadline for community renewal fund bids. The mid-point reviews are due to start next week, but many areas still have no idea whether their bids have been successful. Some tell me that the Government’s delays mean that their projects may collapse. There is no point in the Government trumpeting funding that never turns up, so will the Secretary of State commit to letting every area know the outcome of its bid before the end of this month? Can he guarantee that the Department’s delays so far will not jeopardise jobs or investment linked to any of those projects?
Michael Gove
The hon. Gentleman makes an important point. The UK community renewal fund and its successor, the UK shared prosperity fund, are both examples of how we can have more effective control of the money that needs to be spent to support communities in improving productivity now that we have left the European Union. He is right that it is a cause of regret that we have not been able to respond as quickly as we might have wanted, but there will be more news later this week.
Mike Amesbury (Weaver Vale) (Lab)
I welcome the new Ministers to their place. In 2019-20, the Government oversaw a net loss of 17,476 social homes. House building fell short of its national target by 90,000 homes. That caps more than a decade of house building failure. Every year, the Government do not meet their housing targets and do not build enough genuinely affordable homes. Will the Secretary of State grab the bull by the horns and build a new generation of green homes for social rent at scale?
Duncan Baker (North Norfolk) (Con)
Nick Smith (Blaenau Gwent) (Lab)
Michael Gove
The hon. Gentleman makes a fair point. We want to make sure that the money is out of the door as quickly as possible, but we will, of course, look at every project, and will look to work with Llanhilleth to see what we can do to deliver effectively.
Paul Holmes (Eastleigh) (Con)
David Linden (Glasgow East) (SNP)
Theresa Villiers (Chipping Barnet) (Con)
Henry Smith (Crawley) (Con)
I warmly welcome my right hon. Friend the Secretary of State to his post. In doing so, I cannot miss the opportunity to request a meeting with him so that I can convey the real concerns of local residents to the west of my constituency boundary, in the parish of Ifield, at proposals for 10,000 houses on greenfield sites.
Michael Gove
Of course I cannot comment on any individual planning application, but I know what a brilliant job my hon. Friend does in representing his constituents, so I look forward to meeting him to listen to the case he is making, or to a member of my ministerial team doing so.
Wera Hobhouse (Bath) (LD)
Despite Bristol University students being housed in Bath because there were not enough students from Bath University, a planning inspector ruled this year that more purpose-built student housing was needed. What does the Secretary of State suggest a local authority should do when it is overruled in this way?
Michael Gove
The planning inspector is, of course, there to ensure that there is effective compliance with the housing requirements on the part of local authorities. However, one thing that I would say for any planning inspector is that they depend on consistency, and there has been consistency in the way in which the Government have approached these issues. Where there has been inconsistency is in the position of the Liberal Democrats, who campaign in seats such as Chesham and Amersham on the basis that they are wholly opposed to new housing and development, and then, at a national policy level, call for even more houses to be built than this Government. Were it not for the fact that the phrase “hypocrisy” would be unparliamentary, that, I am afraid, would be the best description of the multi-faceted bottom-feeding perversion of consistency that is Liberal Democrat housing and planning policy. To describe it as hydra-headed would be an understatement, when it comes to the many contorted positions that the Liberal Democrats occupy on this issue.