Leasehold Reform (Amendment) Bill

Debate between Philip Hollobone and Brandon Lewis

Friday 24th January 2014 Commons Chamber

[Brandon Lewis]

I thank my hon. Friend for what I think is a helpful intervention, as well as for supporting the Bill. He is quite right. I suspect that one query received by my hon. Friend the Member for Bury North when the issue first came to his attention was that this is a 1993 Act and we are now in 2014—he introduced the Bill in 2013—so why has it taken so long to find a way of dealing with this problem? That is a reasonable question to ask, but the reality is that we now have the opportunity to correct the situation. It is quite right to deal with it, and I congratulate my hon. Friends the Members for Bury North and for Kettering on doing just that.

[Mr Hollobone]

I am following my hon. Friend’s excellent speech with great interest. He made a particularly powerful point about the value of scrutinising legislation. However, the benefits of the Bill will not extend to Wales, and premises in Wales will be unaffected by the changes. Can he hear the cries going up throughout Wales, in the valleys and elsewhere, “Let us have the Nuttall amendment or the Nuttall provision”? Will he do all he can, through his good offices, to provide the National Assembly for Wales with whatever assistance it needs to pass similar legislation?

[Brandon Lewis]

My hon. Friend makes an excellent point. I suspect people in Wales are thinking right now, in relation to their legislation, that a little bit of Nuttall in Wales would do them a whole world of good.

My hon. Friend the Member for Beckenham (Bob Stewart) queried why the change has not been made before. I appreciate that he came into the Chamber only a short time ago, but I again underline the importance of this debate as a chance for all hon. Members to put the clear intent of Parliament on the record. The requirements on signatories do not appear to have been debated during the passage of the 1993 Act, which is a good reminder of why it is sometimes important for parliamentarians to put clearly on the record why we do things, not just to assume that our intent in passing legislation is clear and obvious. It is a great testament to that point that we are doing this work this morning.

The existing restrictions perhaps aim to ensure that the individual leaseholder is fully aware of the commitment they enter into, given the significant financial liabilities that arise from serving the notices concerned. As my hon. Friend the Member for Bury North has outlined, the Bill will enable legal notices to be signed on the leaseholder’s behalf and that change will help, among others, those physically disabled, seriously ill or mentally incapacitated leaseholders who are currently unable to benefit financially and otherwise from the exercise of rights enjoyed by able-bodied leaseholders.

The Bill is clearly focused on helping a particular group of leaseholders, many of whom are likely to be elderly and vulnerable. As such, it has received warm words of support from both sides of the House, which I am sure is appreciated by my hon. Friend. That reflects my hon. Friends’ efforts in gathering support for the Bill, and in highlighting the benefits that it will enable some currently frustrated leaseholders to enjoy.

The changes made by the Bill to the 1993 Act may affect only a relatively small number of leaseholders of flats in England, but they might be very important for those leaseholders currently unable, for one reason or another, to sign the requisite legal notices in person. As my hon. Friend the Member for Kettering has rightly pointed out, the Bill applies only to England, so I hope that the devolved Assembly will look at the provision and perhaps introduce it in Wales. As I have said, those helped by this Bill will often be elderly and more vulnerable leaseholders. The removal of current restrictions will also help those who are charged with looking after the financial affairs of a leaseholder. The example of relatives acting under a power of attorney was given by my hon. Friend the Member for Worthing West.

One sad situation that was brought to a colleague’s attention concerns an elderly leaseholder living in a leasehold retirement development who, because of severe illness, unfortunately had to go into a nursing home to be cared for. I give this example because it is important to provide some colour and life on exactly how the change will make a beneficial impact to people’s lives. The leaseholder’s relatives were looking after her financial affairs under a power of attorney, and could therefore deal with almost all matters that needed taking care of. As she became more unwell, it was necessary for her leasehold property to be sold to assist in paying the care home fees. That is where her relatives reached what can only be described as a bizarre situation: they could sell the flat using the power of attorney, but they simply could not act on her behalf to extend her lease. They therefore had the frustration and sadness of being unable to make the most of their elderly relative’s assets for her benefit simply because they were not permitted to sign the vital leasehold paperwork on her behalf. Had they been able to do so, it is very likely that the flat, with the attraction of an extended lease, would have secured a higher selling price, and maximising the value of their relative’s assets in that way would have helped meet the fees of a suitable care home for her final days.

It is important to give more examples of the people who will be helped by this Bill. For instance, limbless or severely injured Army veterans face many problems. They may wish to extend the lease on their home and to enjoy the financial benefits that such action could bring, but, owing to their disability, they might no longer be able to hold a pen and to sign vital papers. As the law now stands, for that reason alone they are frustrated from exercising their important legal right as the leaseholder. There is no way that that was the intent of Parliament when the Act was passed, and it is right to get through this Bill for that reason alone.

The Bill may help leaseholders living abroad who need to sign notices. For example, work may take the leaseholder of a flat abroad for a prolonged period. Without the ability to have someone act, with the appropriate authority, on their behalf in respect of the property, it may be difficult for them to exercise their statutory rights. Again, that was clearly not Parliament’s intent.

The Bill might also help an aid worker serving overseas in a remote location, where postal services are infrequent and unreliable. If they want to extend the lease on their property back home in England, they will need to receive a paper copy of a document, and they then have to sign and return it. In some parts of the world, even in today’s modern age, that can take months, involve worry and delay, and create problems about getting the work done. If the absent or incapacitated person is the sole leaseholder, even their husband or wife cannot validly sign notices on their behalf.

If an individual leaseholder who lives or works abroad is hindered in that way, it could have an unfortunate knock-on effect on other leaseholders in their block. For example—we have examples of this in this country—a group of leaseholders may want to exercise their collective right to acquire the freehold of their block, but to satisfy the qualifying criteria they may need one or more leaseholders who live or work abroad to sign the documents. Although the Bill would not make any change to leaseholders’ actual rights—we must be clear about that—it could helpfully remove a practical barrier to the efficient exercise of those rights.

Let us also consider an elderly person who is physically fit, but who for years has been accustomed to relying on their long-standing family solicitor to act for them in all legal and administrative affairs. They may decide to take part in the collective purchase of the freehold of their much-loved home, but in that case, the solicitor simply could not validly sign the documents on their behalf.

Since the 1993 Act, we have—I hope—become more aware of the challenges faced by individuals who become mentally or physically incapacitated for one reason or another. Sadly, as that Act stands, even someone acting under the direction of the Court of Protection cannot sign the requisite notices. A possible alternative could be for the leaseholder to take the major step of assigning the lease of their property to a trustee, and setting up what is known as a “bare trust”. Again, the decision on Tingay is very relevant. The counsel for the landlord states that

“it is possible to avoid difficulties of these sorts. What one could do would be to assign the lease to one or more trustees, who would hold it on a bare trust for the former tenant, who could serve a notice relying on the qualifying—”

Local Government Finance

Debate between Philip Hollobone and Brandon Lewis

Wednesday 18th December 2013 Commons Chamber

[Mr Philip Hollobone (Kettering) (Con)]

Under the leadership of councillor Russell Roberts, Kettering borough council, of which I have the privilege to be a member, has for the past three years offered a policy of “triple zero”: no cuts to front-line services, no cuts to voluntary grants and no increase in council tax. The Minister will know, because he has twice visited Kettering borough council, that it is an exemplary local authority. Does the message not go out that if Kettering can do this, other councils, if they really want to, can also do it?

[Brandon Lewis]

My hon. Friend makes a very good point. Kettering is an excellent example of a good Conservative council managing its finances properly for the benefit of local residents, keeping down the cost of living by keeping council tax frozen and providing excellent front-line services, as good councils all over the country are doing.

Oral Answers to Questions

Debate between Philip Hollobone and Brandon Lewis

Monday 8th July 2013 Commons Chamber

[Brandon Lewis]

My hon. Friend makes a powerful point. We have devolved power, so it is very much a matter for local authorities how they distribute the money they spend, but I am sure that—with her making such a strong case—residents in Derby will look carefully at what the council has done and take a view on that when it comes to the next elections.

[Mr Philip Hollobone (Kettering) (Con)]

19. What the total departmental expenditure on financing sites for Gypsy and Traveller pitches in (a) Kettering borough, (b) Northamptonshire and (c) England was in the last 10 years.

[The Parliamentary Under-Secretary of State for Communities and Local Government (Brandon Lewis)]

We have taken firm action against unauthorised sites. We believe in fair play and supporting those who play by the rules. The total allocated funds for Traveller sites in England has been approximately £175 million, of which almost £120 million has already been spent. Approximately £3.4 million has been spent in Northamptonshire, including about £850,000 in Kettering.

[Mr Hollobone]

As the law now stands, Kettering borough council, of which I have the privilege of being a member, has to identity sites for up to 37 Gypsy and Traveller pitches by 2031. The consultation has caused huge and understandable upset and concern throughout the borough. Will the Minister, who has proved both responsive and sensitive to such issues, be kind enough to agree to visit the borough of Kettering to see how these issues might best be resolved?

[Brandon Lewis]

I thank my hon. Friend, who no doubt will have noted the statement we laid before the House last week. I appreciate that planning for Traveller sites can be contentious and raises a number of complex issues, so I am happy to visit him in Kettering to see them at first hand.

Oral Answers to Questions

Debate between Philip Hollobone and Brandon Lewis

Monday 18th March 2013 Commons Chamber

[Brandon Lewis]

It is sometimes easy to forget, and I remind the hon. Lady, that an area such as Liverpool has a much higher base start in the first place. A constituency such as mine, which has some very high deprivation, has a spending power of £2,200 per dwelling, whereas Liverpool’s is up at about £3,000. There is a big difference in the first place, and we have to bear that in mind when we are trying to make comparisons between different authorities.

[Mr Philip Hollobone (Kettering) (Con)]

4. Which county council has set the lowest council tax in England.

[The Parliamentary Under-Secretary of State for Communities and Local Government (Brandon Lewis)]

Councils are in the process of setting their budgets for the coming financial year, and we will, as a Department, publish official figures in due course. As well as recognising areas such as Lancashire that have done superb work in cutting council tax, as has Dorset by 5% this year, I can confirm that Northamptonshire county council currently has the lowest council tax of any county without a separate fire authority.

[Mr Hollobone]

Northamptonshire county council is proud to have the lowest county-council council tax in the whole of England, and it has frozen its council tax for the past three years. Will my hon. Friend the Minister congratulate Councillor Jim Harker and his team of Conservative councillors on Conservative-controlled Northamptonshire county council on delivering the most affordable county-council council tax in the whole country?

[Brandon Lewis]

I am absolutely delighted to give those congratulations. It is superb to see Conservative county councils across the country, of which my hon. Friend’s is a particularly good example, working hard to deliver cost-effective services for their residents. It is also appropriate to say, while I am at the Dispatch Box, that his district council should be commended for the excellent work it is doing on freezing council tax. It is taking this financial settlement in the right way and looking to the future in terms of how it can deliver growth for its area and thereby create real benefit for its residents locally.

--- Later in debate ---

[Brandon Lewis]

I can confirm that we are looking at how to work with Cleveland to deliver a mutual fire service, if it wants to do it that way. We are working through this at the moment and may be looking at consultation. We will go through that process and look at the feedback we get from it.

[Mr Philip Hollobone (Kettering) (Con)]

Will the Planning Minister instruct the planning inspectorate not to sanction on appeal entirely inappropriate housing development outside town and village envelopes using the five-year rolling housing supply targets where the local authority concerned is doing all it can and more to meet Government guidelines on the development of local plans?

Local Government Standards Regime

Debate between Philip Hollobone and Brandon Lewis

Wednesday 16th January 2013 Westminster Hall

[Brandon Lewis]

I will address the transitional arrangements in a moment, but, yes, we do have to consider that.

The advice in the Wiltshire case makes little sense. The advice refers to a pecuniary interest in any matter, but it focuses on the word “any,” which is completely the wrong end of the stick, to use a colloquial phrase. The advice fails to define a disclosable pecuniary interest, which is the key point. The simple fact is that one cannot identify a disclosable pecuniary interest that relates to the setting of council tax. A beneficial interest in land is probably the nearest to that, but that interest is clearly not materially affected by the setting of council tax.

I have learned something today, and I am hugely impressed: I have never before heard of an “ethical governance officer,” which is a fantastic new title. I am sure the title will be cropping up across the country, no doubt with people asking for pay rises. One of the things of which I have seen far too much, particularly in parish councils, is organisations advising that, in setting precepts, all members have to declare a pecuniary interest, which implies that every councillor has such an interest, be they district councillors, county councillors or unitary councillors. Indeed, it could be argued that that goes all the way to us when we set the Budget. That is farcical. That is not what the guidance sets out. We must make it clear to parish councillors that that is bad advice. It is wrong. That was not the intention.

Another example I have heard is how councils feel the need, under the transitional arrangements, to continue to investigate a complaint under the old regime, whatever its merits. That is absolutely not what the transitional arrangements require. Briefly, if a council considers a complaint unworthy of investigation and the resources that that would entail, it can bin the complaint. I stress again that that is a decision for the council—the members. Neither the monitoring officer nor any other officer has the power to make a decision and force or tell councillors to do something. The decision is in the hands of the democratically elected councillors.

Why is all this happening? Why is there an attraction to continue a Standards Board-type regime—a regime that was widely loathed in local government and ill served citizens, taxpayers and councillors? As I hope I have stressed clearly, our new regime puts members firmly in the driving seat when it comes to deciding what a council’s standards arrangements should be. They are for local councils to decide. In that role, it is right that members look to their officers for advice, as that is what officers are for, but I have to say that much of the advice being given to members is far from satisfactory. There are some very good monitoring officers out there, but far too much poor advice is being given, leading members to feel that they are being bullied by officers.

What I have seen often shows that, for whatever reason, officers have simply failed to grasp what the reform is about. It is about having arrangements that maintain high standards while avoiding bureaucratic burdens and doing away with all the petty, vexatious complaints that bedevilled the operation of the old regime. Whether because of excessive caution, bureaucrats’ love of bureaucracy for its own sake, or a misplaced belief that they and not members should be in the driving seat on standards, officers often advise that something more or less akin to the old Standards Board regime should be continued.

One of the most worrying examples is the Public Law Partnership that provides legal advice to a number of councils, including Essex county council and, I believe, Brentwood borough council, where I was once a member. The partnership has prepared a model code and model arrangements for handling misconduct complaints that seem essentially to be a form of the old Standards Board regime. I see no need for a local authority to adopt a code of conduct based on such a model, or to put in place complaint-handling arrangements based upon the Standards Board regime. I see no need for a heavy, bureaucratic, gold-plated approach that has no place in the new localist standards arrangements, which should be driven by and for members.

I send a clear message to council leaders and members that where they receive such advice, they should simply tell their officers to think again. They must challenge their officers to get it right. They should tell the officers that what they are saying is wholly out of step with the new regime and its aims as approved by Parliament, and instruct them to come forward with something different—something that is proportionate and that meets the needs of members under the new regime.

I know that members are trying to do the right thing and want to make the right decisions, and that the officers giving advice sound well informed and very much in control. It is easy for members to believe, “We must do this.” I hope that today I have sent a clear message to councillors that the power is in their hands; they should exercise it and challenge their officers to come up with a light-touch scheme and approach. I know that leaders and members have the strength and capacity to do that. They should do it now, if they have not done so already. They should get on with it, using the comments made by all Members in this debate, including me, to challenge their officers. My message to monitoring officers and others who give that advice is to be professional and proportionate and to cut out the gold-plating. Let us see some common sense.

I have heard of law firms offering advice—at a price rather than pro bono, I imagine—on the standards regime and how to operate it. It is, of course, for councils to decide what advice they need. Again, I suggest that members should consider carefully whether they need outside, paid legal advice when they have their own officers. I find it hard to envisage circumstances in which seeking such advice can be genuinely justified. The new standards regime is about empowering councillors to deliver high standards of conduct; it is not about creating a new legal industry, whatever attractions that might have for some. My message to council members is at the very least to consider matters very carefully before deciding that it is necessary to involve a legal firm in the conduct of their council’s standards arrangements.

Monitoring officers are there to provide professional advice, not to decide what is to happen or judge whether a member has a disclosable pecuniary interest. I hope that I have made that clear. It is the responsibility of the member concerned to make that judgment. Members need to have confidence in the expertise, professionalism and independence of their officers and to trust that they do not have an agenda or aim that might put their advice into a particular context. Again, I encourage members to challenge their officers appropriately and robustly.

The public expect high standards of conduct from local authority members, and the vast majority of local authority members conduct themselves in an entirely appropriate manner. Across our country, they work fantastically hard for their communities. There is simply no point in a local authority needlessly imposing a burden of bureaucracy on itself. Councils now have the opportunity to free themselves of the Standards Board regime and make a fresh start free of complicated codes of conduct and resource-intensive arrangements for complaint handling. This opportunity is too important to miss, and I hope that they will take advantage of it, guided particularly by the comments made in this debate. I congratulate my hon. Friend the Member for Bromley and Chislehurst again on securing the debate, which is welcome and, I hope, helpful for local authorities and councillors across this country.

[Mr Philip Hollobone (in the Chair)]

I thank all Members who have taken part in this most interesting debate, and I congratulate Mr Neill on securing it. I am afraid that we will have to contain our anticipation of hearing Mr Bellingham until the Minister arrives at 4 o’clock.