Building Safety Bill (Tenth sitting)

Mike Amesbury Excerpts

Thursday 23rd September 2021 Public Bill Committees

[The Chair]

I have made a request that people stand in their place if they want to speak. I call Mike Amesbury.

[Mike Amesbury (Weaver Vale) (Lab)]

I concur with the Minister.

Question put and agreed to.

Clause 42 accordingly ordered to stand part of the Bill.

Schedule 4 agreed to.

Clause 43

Functions exercisable only through, or with advice of, registered building inspectors

Question proposed, That the clause stand part of the Bill.

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[Christopher Pincher]

I will speak a little to this clause, because I think it bears some scrutiny. The Government are committed to driving up the standard of building control. Clause 44 strengthens the powers in relation to failing local authorities by giving the Secretary of State a new power in England to make an order to transfer building control functions of a failing local authority to another local authority. Currently, the Secretary of State only has the power to transfer the functions of a failing local authority to himself.

The clause should be read in conjunction with clause 41, and in particular proposed new section 58Z7 of the Building Act 1984, under which the regulator will be able to recommend that the Secretary of State makes an order to transfer the functions of a failing local authority building control department. Where such a department has consistently failed to meet the required standards and that is putting the safety of persons in or about buildings at risk, the Secretary of State could, for example, transfer only the management of the building control function to another local authority. That would mean that senior officers or managers from another authority would manage the failing building control department to return it to full compliance. Once the performance issues of the failing authority have been addressed, the Secretary of State will consult the regulator and revoke the order, returning the building control function to the local authority.

The clause makes a number of consequential and clarificatory amendments to sections 116 to 118 of the 1984 Act, including amending section 118 of the Act to allow for the variation or revocation of an order by the appropriate national authority to return the transferred functions to the original local authority. The Secretary of State must first consult the Building Safety Regulator and make additional provisions to deal with the transfer and discharge of any liabilities through the revoking or new order.

The amendments in clause 44 are important for improving the competence of building control teams, and I commend the clause to the Committee.

[Mike Amesbury]

I will be brief in my remarks to the Minister. I am just looking for some clarity and reassurance. The Executive and the Secretary of State obviously hold a lot of power here. What checks and balances will be built in, regardless of the political complexion of the Secretary of State?

[Christopher Pincher]

Just to clarify, the present law allows the Secretary of State to transfer only to himself the power to take on the functions of a failing local authority. In terms of checks and balances, what we are trying to do is allow the Secretary of State greater discretion to transfer to another appropriate local authority the authority to discharge those functions on behalf of the failing local authority while it is brought back into competence. The effect is to ensure that another local authority—possibly one that is closer to the one that has failed or is similar in terms of the housing stock, and that has a greater degree of historical success in dealing with such issues—can perform the role of the local authority.

As I said in my concluding remarks, we have also ensured that any liabilities—in other words, any costs incurred by the local authority that is taking on the responsibility—can be properly recovered by that local authority, so that it is not out of pocket as a result of taking on those responsibilities. I am pleased that the hon. Gentleman and his colleagues appear to support the clause, and I commend it to the Committee.

Question put and agreed to.

Clause 44 accordingly ordered to stand part of the Bill.

Clauses 45 and 46 ordered to stand part of the Bill.

Clause 47

Insurance

Question proposed, That the clause stand part of the Bill.

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[Christopher Pincher]

The hon. Lady makes a fair point. She will know that we often consult on secondary legislation before laying the regulations, so that there is time for the community, in its widest context, to give feedback on that legislation. Whether the regulations are subject to the affirmative or negative procedure, there is ample opportunity for Parliament and the House of Commons to consider them, have a say and scrutinise that secondary legislation, either in a Committee such as this for the affirmative procedure, or with the entire Chamber praying against regulations subject to the negative procedure.

We have already published secondary legislation and a number of factsheets to support the primary legislation. We will continue to do so throughout the parliamentary process, which, I remind the hon. Lady, is likely to be longer rather than shorter; this Committee stage will be followed by Report. There will be ample opportunity for the Committee and the House to look at the legislation and the regulations and to comment and vote on them.

The insurance market for approved inspectors is intricate and some bodies have specialist insurance expertise in this area. The power in clause 47 will enable the Secretary of State to appoint specialist bodies to undertake this important and complex work, as the hon. Member for St Helens South and Whiston alluded to, where the Government think that appropriate. I commend the clause to the Committee.

[Mike Amesbury]

I thank the Minister and other Members for their helpful contributions. As has been said, insurance, particularly professional indemnity insurance, has caused considerable debate and angst, not only for the professionals involved, but about the future role of the accountable person and those involved in building control. The ABI and AXA refer to that in their submissions.

Members have spoken about secondary legislation. The market has to respond to this measure, and that is why more detail would have been helpful. The Minister’s comments on consulting key stakeholders are constructive and reassuring. I assume that the ABI will be one of those stakeholders, and those discussions may be taking place not quite as we speak but over the next few weeks—I hope that that is the case. Ultimately, this is about ensuring that the clause and the new SIs provide adequate cover and deliver the culture change that we all want.

[Shaun Bailey (West Bromwich West) (Con)]

I will keep my comments brief. I want to touch on whether primary legislation is the appropriate place to set out the specification.

I fully appreciate and do not disagree with the comments that have been made on the need to see the detail. I completely agree with the comments of members across the Committee about the need to consult and to ensure that stakeholders are appropriately engaged. If we put this in primary legislation, I think there might be a slight unintended consequence of pigeonholing it too far.

My interpretation of the ABI’s evidence is that there is a need to ensure that appropriate stakeholder feedback is reflected in regulation. In other areas, it is not uncommon for insurance mechanisms such as those in clause 47 to be delegated to secondary legislation, because it allows time for that engagement and the pulling together of stakeholders. It also allows for drilling down into the detail, because that secondary legislation can focus specifically on those really important points. As my right hon. Friend the Minister has said, it is appropriate to delegate to secondary legislation, but I also agree with the points raised by the hon. Member for St Helens South and Whiston. There is concern in the industry, as we have heard, particularly about incidences of fire and the inability to obtain appropriate insurance. Clause 47 seeks to remediate that and to interlink that more widely, so that we can have the safety we have been talking about and the cultural change that the hon. Member for Weaver Vale mentioned a moment ago.

This is an important but technical debate on whether primary or secondary legislation is the appropriate place for the requirements in clause 47. Broadly speaking, I think my right hon. Friend is right, but I say to him again, and this has been echoed across the Committee, that Members are seeking to ensure the broadest level of engagement with different stakeholders as this progresses. That will be important in ensuring that the subsequent legislation that feeds off clause 47 reflects accurately what we are trying to bring about and, ultimately, that the clause achieves its aims.

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[Christopher Pincher]

The hon. Gentleman makes a fair point. As I say, when we apply new responsibilities to local authorities, it is usual practice to apply the new burdens doctrine and thereby determine what further support local authorities might require. Incidentally, last year local authorities received their best funding settlement in 10 years. The Government are committed, through the spending review process, to ensure that this Building Safety Bill, the regulations that flow from it and the organisations and officers created by it are also adequately funded. Having made that point to the hon. Gentleman and the Committee, I commend the clause to the Committee.

[Mike Amesbury]

Briefly, I am sure these clauses are welcome; information sharing will be vital to the new landscape of building safety. The introduction of an electronic portal—I might refer to the Minister’s previous profession and experience in IT—will result in greater systems efficiency, but will require some investment in hardware, systems, development and training. Could the Minister touch on that?

[Shaun Bailey]

I will keep my comments brief, to keep in line with the culture across the Committee so far. To complement what the hon. Member for Weaver Vale just said, I had hoped to intervene on my right hon. Friend the Minister’s point about consistency of process. The portal in clause 52 is welcome, but the back-office processes required to ensure that that is usable and feasible will clearly be important. We have been discussing this duty to share information throughout the Bill, but it is particularly highlighted by clauses 51 and 52. Clearly, for that to succeed, we must be able to ensure that it can be done in the way that we would require.

The point that I really want to press on my right hon. Friend the Minister is that we should ensure that we have that consistency of approach. Perhaps he could reassure us that his Department will work with local authorities to ensure that, in respect of these clauses, we can get that consistency? As hon. Members have said, operational delivery is the one thing that this might fall down on. I am also heartened to hear what he said on the funding point, but, as this progresses, it may need a somewhat flexible approach.

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[Christopher Pincher]

I am obliged to the hon. Lady. Yes, I believe it has. As we know, local authorities share services and a variety of functions, some of which are statutory. They are able to share those functions across geographies and still execute their statutory responsibilities, and I do not foresee any issue here. She is quite right to say that smaller authorities often have challenges with resources that do a multiplicity of things. One of the reasons why we want in the Bill to see the development of multidisciplinary teams—the Building Safety Regulator and its functions, fire and rescue services, local authorities —is to ensure that even smaller authorities that have in-scope buildings are able to use those multidisciplinary teams to do the work that the Building Safety Regulator will require of them.

I hope that Members will agree that these regulations serve an important purpose and will support the clause. I commend the clause to the Committee.

[Mike Amesbury]

I have just one brief question—and a plea. Again, they refer to personal emergency evacuation plans, or PEEPs, and a submission from the Leaseholder Disability Action Group, or Clad Dag, which I know the Minister is familiar with. In earlier clauses that we have considered, we spoke about the importance of residents’ panels in shaping the current landscape, and of ensuring that disabled people are a key voice on those panels. So I would be interested to hear the Minister’s observations on that point, briefly.

[Christopher Pincher]

I am obliged to the hon. Gentleman. I think that we heard in evidence from the Health and Safety Executive that the shadow regulator is already doing work to—using that awful phrase—reach out to various communities and groups, to make sure that the residents’ panel, when it is fully constituted, is also fully representative.

With respect to people with disabilities, I do not believe that anything in the Bill cuts across or undermines disability rights or legislation.

With that, I commend the clause to the Committee.

Question put and agreed to.

Clause 53 accordingly ordered to stand part of the Bill.

Clause 54

Minor and Consequential Amendments

Question proposed, That the clause stand part of the Bill.

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[Christopher Pincher]

I will try to ensure that I keep my teeth in as I whistle through the s’s in clause 56.

We are committed to ensuring that the Building Safety Regulator receives the funding required to enable it to deliver. Members of the Committee have made that point in discussion of the previous clauses. Dame Judith’s review recommended that the regulator for buildings in scope of the new and more stringent regulatory regime should fully recover its costs from those it regulates. The recommendation reflected that duty holders who require the most intervention by the safety regulator should pay more. The Bill needs to enable the Building Safety Regulator to charge fees, both to implement the recommendation of the independent review and to put the Building Safety Regulator on a firm financial footing. The power could also be used to charge for other Building Safety Regulator functions under the Building Act, such as registering building inspectors and building control approvals.

In a previous debate on clause 27 on the power to charge regulator fees, the Committee was rightly interested in any effects on leaseholders. We expect that the power under clause 56 would be used to charge fees for building control during the design and construction of new high-rise residential buildings, just as building control is charged for currently. Leaseholders will not directly bear the cost of such fees. However, the purchase price for a new home may reflect the costs of construction, including any regulatory costs, as is the case now. We do not intend that the leaseholder bear directly the costs of these particular fees.

For building control during refurbishments, the position remains as it is now. Building control fees can be passed on only if the terms of the lease allow—of course, different leases have different terms. This is a complicated area, and I remind the Committee that although the position on building control fees is broadly unchanged from current practice, we are introducing a new regulatory regime in occupation under part 4, for which the regulator may charge fees under clause 27.

For costs under part 4, there are specific provisions that deal with the effects on leaseholders under the building safety charter. The charge includes the costs of delivering a defined set of safety measures, to ensure that leaseholders and residents feel safe in their homes. The charge includes regulator fees specifically associated with the activities covered by the building safety charge, such as checks on the safety case to ensure the building is being managed safely. The building safety charge provisions also contain strong safeguards for leaseholders that prevent fees resulting from enforcement action by the Building Safety Regulator or from any negligent or unlawful act by the accountable person being passed on to leaseholders.

This clause also provides powers for regulations to extend the scope of current local authority building control charging schemes. Currently, local authorities can charge for specified building control activities, as set out in the Building (Local Authority Charges) Regulations 2010, namely checking plans, inspecting work, dealing with building notices, dealing with reversions from approved inspectors and dealing with requests for regularisations. Local authorities can also charge for advice given in relation to any of those activities. However, local authorities carry out a number of other functions under the Building Act that are not in the scope of the current charges regulations.

We want to give local authorities the opportunity to recover more of their costs. Therefore, clause 56 provides wider powers for regulations to set fees and charges in relation to any local authority function under the Building Act. It enables the regulations to prescribe what fees should be set and that local authorities can set out their charges in schemes established in accordance with principles set out in the regulations. This is in line with the approach in the current regulations, which enable local authorities to set out charging schemes and principles that those schemes must follow. The clause also enables Welsh Ministers to charge for their functions under part 2A of the Building Act in Wales.

[Mike Amesbury]

After how many days will the building safety charge be payable, and how much will it be? That is vital, obviously, to resident leaseholders. On the finer detail of the scope, will the charge be levied on buildings from 11 to 18 metres, and on those that are18 metres-plus?

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I will not speak to the developer tax, because that is not part of the Bill. It is a Treasury matter and is presently being consulted on, but we reckon that it will raise £2 billion over 10 years. With that, I commend the clause to the Committee.

[Mike Amesbury]

I thank the Minister and my hon. Friend the Member for Luton South, and I welcome the direction of travel, which demonstrates how this place can work most effectively for the good of the affordable housing sector as a whole.

On clause 57, the principle of the levy is most welcome. Campaigners up and down the country have been pushing for a levy—sometimes under the polluter pays principle. There is a history of failure and deregulation in the construction industry, and resident leaseholders are certainly not responsible for the mess. Then we get to some of the details. The principle of polluter pays is a good thing. Looking at the evidence from the Select Committee—we have colleagues present who are key members of that—the cost of remediation is estimated to be some £15 billion. The Minister referred to conversations with his good friends in the Treasury, who are referring to a levy of £2 billion—a fraction of that.

On the scope of the levy, I understand some of the practicalities of gateway 2, but to whom will that money be directed to provide support? Will it be by way of grants? I notice another reference in clause 57 to the provision of loans, but loans to who? The principle is good and we welcome a levy, but it is nowhere near sufficient to deal with the building safety scandal, which is exactly what it is. We urge the Minister to look again at the size and scope of that with his good friends in the Treasury. Of course, voices outside this place will continue over and over and get louder and louder until justice is done.

On other potential exclusions, looking at the Department—I am not on top of its new name, by the way, so excuse me—

[The Parliamentary Under-Secretary of State for Levelling Up, Housing and Communities (Eddie Hughes)]

The Department for Levelling Up, Housing and Communities.

[Mike Amesbury]

It just rolls off the tongue, doesn’t it? According to the Government’s own figures, 274 hospitals of 18 metres and above are in scope at the moment, as well as 10 care homes. For the hospitals, that will affect capital spending in other Departments. I am sure that we all have ambitions to get renewed hospital facilities in our constituencies via capital spending. Drawing on the previous amendment, I am sure that that is something that Ministers are strongly considering. Of course, the Opposition—or Members across the piece, actually—would urge them to look at those exclusions.

[Shaun Bailey]

I am really pleased to speak both to the clause and to the amendment tabled by the hon. Member for Luton South. As someone who probably would not be here were it not for social housing, I completely agree with the sentiment behind her amendment and with most, if not all, of what she said about the need to build more social housing, and in particular, her point about improving the quality of existing stock. I am sure that the biggest issue we both deal with is the quality of the existing stock in which people currently live. I do not disagree with the sentiment behind the amendment, which seeks to enable social housing providers to retain their limited resources—I am sure she would agree that they need more—to improve their stock.

I am heartened to hear from my right hon. Friend the Minister about the positivity that appears to be coming from Her Majesty’s Treasury on this matter. It is fantastic to hear that those deliberations and conversations have been positive. I will probably not articulate it very well—apologies, this is a bit personal for me—but I am really pleased to hear that. It is important, and I was probably struggling with the issue a bit given my background and experiences. I am glad to hear that the Treasury have heard that point, and I thank the hon. Lady for tabling the amendment.

The clause is the right move in respect of developers and the levy. As Dame Judith Hackitt pointed out, we will ultimately ensure that our system works and is financially robust. As the hon. Member for Weaver Vale pointed out in his contribution, the regulations will be the meat of the legislation. I note the exemptions listed. I listened with real interest to the point the hon. Gentleman made about hospitals and care homes. Many of us, across the piece, can have discussions about that and perhaps work on it. We have talked about unintended consequences all day, and what we do not want to see is any sort of inhibition of the Government’s agenda of building more hospitals, improving social care, and doing what we know needs to be done in our communities. The hon. Gentleman made an important point. I do not necessarily expect an answer from my right hon. Friend the Minister today; I appreciate that the conversations are ongoing, and I am sure he agrees that they are important.

We have heard some well-articulated speeches, and it is always a bit of a nightmare speaking after them because we tend to say what everyone else has said. To keep my comments as brief and to the point as possible, the sentiment behind the hon. Lady’s amendment is absolutely spot on, and I am really heartened to hear the response from my right hon. Friend the Minister. The levy is right, but we will need to scrutinise the accompanying regulations, particularly on exemptions, which I will consider with interest. The principle underpinning clause 57 is right and has my wholehearted support.