Future of Small Cities Following Covid-19

Richard Graham Excerpts

Tuesday 26th April 2022 Westminster Hall

[Caroline Nokes (in the Chair)]

I call the Minister to respond to the debate.

[Richard Graham (Gloucester) (Con)]

rose—

[Caroline Nokes (in the Chair)]

This is a 30-minute debate and we have not had notification that the hon. Member for Gloucester wanted to speak.

[Richard Graham]

My understanding was that my office had put me down to speak in the debate.

[Daniel Zeichner]

The hon. Gentleman certainly sought my permission.

--- Later in debate ---

[Richard Graham (Gloucester) (Con)]

Thank you, Ms Nokes. I am grateful for the opportunity to speak very briefly about the future of small cities. The key thing is that historically small cities have lost out from consolidation and regionalisation by both Government and the private sector.

Big cities have the advantages of size, but small cities such as Gloucester have an enormous amount to contribute. We have fantastic cathedrals and great sports clubs such as Gloucester Rugby. We are highly rated by the Centre for Cities research on patent applications and digital connectivity, and we have all sorts of diversity, including a primary school with more than 50 nationalities. All of that can lead to very vibrant cities.

The Government’s role is to help us achieve our goal to be the greenest small city—converting our recycling centre such that it will be able to produce solar, wind and hydrogen: green energy made in Gloucester—and to enable us to realise our dream of becoming the cyber-city and cyber-county, and also the nuclear county, with nuclear fusion bids, as well as a bid to host Great British Railways and all sorts of activity on the cyber front.

Will the Minister continue to be flexible on the best structure for local government? Our city council is important to us. Will he ensure that local government is given sensible funding to guard against cyber-attacks and hacking from Russia, and will he continue the great work on the levelling-up fund? We in turn will deliver one of Britain’s most exciting small cities and a model for others.

[The Minister for Housing (Stuart Andrew)]

It is a pleasure to serve under your chairmanship, Ms Nokes. I congratulate the hon. Member for Cambridge (Daniel Zeichner) on securing a debate on an issue that matters to so many communities across this country. The future prospects of small cities and our future support for them are real, tangible things that people in this country care deeply about. I commend him for his ongoing interest and convicti-on.

It almost goes without saying that covid-19 changed the world as we knew it. I cannot think of any part of the country that went untouched. Although the virus was a doomsday event for the businesses that make up our high streets, its effects—the hon. Gentleman has highlighted this in the past—were not evenly distributed. For places such as university cities and tourism hotspots, the effects of the virus were particularly profound. The issues created by the shutdown of local economies and the temporary closure of high streets were massively exacerbated by having fewer students and tourists in the city. For cities such as Cambridge, Oxford or York, whose populations always swell in size during normal times, the loss of revenue was especially damaging. I know that the hon. Gentleman will have felt that pain acutely, as Cambridge usually attracts more than 8 million visitors a year, bringing in about £800 million and accounting for nearly a quarter of all employment in the city.

I firmly believe that the Government, thanks to the support from the Treasury, did everything possible to support cities and places to weather the storm. That included billions of pounds of covid loans, furlough support and money to local authorities to support their communities. Those economic lifelines helped to keep businesses going, keep people in jobs and, most importantly, keep people safe from the virus. But it is right, with covid almost, I hope, in the rear-view mirror, that we look beyond the pandemic and at the wider economic geography of this country.

Although the virus was a generational event, we do not need to be economists to recognise that wider issues plaguing many of our small cities and towns have long predated the pandemic, including a lack of opportunities and good-quality jobs, and life prospects diminished by areas being overlooked and undervalued. Places across the country with proud histories have seen generation after generation leave the area in search of a brighter future that did not feel was possible where they were.

We need only to look at the high streets in some of the small cities dotted around the UK to see that they have been taken for granted for too long. Even places such as Cambridge, which draws millions of tourists and thousands of students, and places with a rich cultural heritage have at times been like a jet plane powered by only one of its engines. It does not have to be that way.

The Government party stood on a manifesto that promised to end the status quo, delivering policies and plans to usher in new opportunities across the country. That means reviving the fortunes and transforming some of our much loved cities, big and small, creating vibrant places and communities where people want to live and work.

In February we launched, in our levelling-up White Paper, our blueprint for how we get there. It outlines a huge number of measures designed to close gaps in health, education and wealth between regions, and inequalities that disfigure this country, including those in the east of England. It draws together policies on education, transport, housing, research and development and many other areas of Government spending. It is a plan that sets out a clear, targeted and measurable approach to breathing fresh life into our cities and improving the lives of people across the UK.

People want to see buzzing high streets. My hon. Friend the Member for South Cambridgeshire (Anthony Browne) is right to raise the changing nature of many of our high streets and how we can tackle that. People want thriving local businesses and to see their children in good schools. They also want money to be invested back into things that strengthen the social fabric locally —from renovating the local theatre or museum, to constructing a neighbourhood community centre and preserving a centuries-old pub.

We believe that with the right approach—an approach that takes a long view and focuses on policies such as regeneration and proper devolution to local leaders—the results can be more money in the pockets of those people who need it most, more high-skilled jobs and more new investment attracted to an area.

[Richard Graham]

May I draw the Minister’s attention to one aspect of Gloucester’s success with the levelling-up fund, which is the first ever conversion in this country of a department store into a university teaching campus? It will open in September 2023 and I hope he will have the chance to visit it one day. That is also an opportunity for other cities.

[Stuart Andrew]

That is exactly the sort of innovation that we want to see in towns and cities all over the country, where people locally know what is best for their communities and of the existing opportunities, such as an empty building or area in need of redevelopment. Such local decision making will be key to ensuring that we maximise the potential for local communities. I thank my hon. Friend for raising that.

I also emphasise, as I have many times in the past, the moral imperative to level up the country. Levelling up is not about an arbitrary divide that starts just to the north of the Watford gap, and nor is it about a London versus everyone else divide; it is about breathing new life into, and offering a more prosperous future to, neglected areas across the country that have for years felt forgotten by Westminster. I assure every Member present that those places in the east—Cambridge, Peterborough, Luton, Bury St Edmunds—and those further afield, such as Gloucester, are just as central to our levelling-up ambitions as Sunderland, Darlington and Grimsby.

The hon. Member for Cambridge has said that while slogans come and go, we need a proper regional policy. I could not agree more. For our strategy to work, it has to be more than a slogan; it has to be something that people can really see and feel where they live. One of the central pillars, therefore, is regeneration, and I am delighted with the progress that we are making on that front. The towns fund of more than £3.6 billion is helping to create jobs and to build more resilient local communities and economies. Our investment of £2.4 billion through the town deals for 101 towns across England is giving them the tools they need to boost their local economy.

Hon. Members will have seen at first hand how that funding is supporting regeneration in the east of England. The region has received more than £287 million through our towns fund for several projects to support growth, regenerate public spaces, as the hon. Member for Cambridge mentioned, and improve transport. A fantastic example is the city of Peterborough, which will benefit from a range of new cultural facilities in the city centre, including a lakeside activity centre and the creation of new pedestrian links to improve access to the riverside and its green spaces, alongside the brand-new university opening its doors for the first time later this year. That is levelling up in action, and is just one of hundreds of examples.

We are soon to open the next round of our £4.8 billion levelling-up fund, and I encourage all smaller cities to get their bids in and to secure investment that will help to deliver on local priorities for the people they serve.

Oral Answers to Questions

Richard Graham Excerpts

Monday 24th January 2022 Commons Chamber

[Neil O'Brien]

I am glad to see this wonderful outbreak of consensus. I have read the exciting proposals put forward to us but I am afraid the right hon. Gentleman will have to wait until the White Paper; however, I will say that Andy Street has continued to bring forward very exciting and interesting ideas.

[Richard Graham (Gloucester) (Con)]

12. What discussions he has had with the Church of England on the potential role of its real estate in helping to meet housing demand.

[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.

Post Office Update

Richard Graham Excerpts

Wednesday 19th May 2021 Commons Chamber

[Paul Scully]

The Post Office speaks regularly to the unions and to postmasters in general. Two postmasters have been elected to serve on the board, but the hon. Gentleman is absolutely right to talk about access to cash. The Post Office has good plans to pilot new ways of access to cash to replace the last bank in town, an issue that he rightly articulates.

[Richard Graham (Gloucester) (Con)]

As a former chair of the all-party group on post offices, I welcome the Minister’s announcement that this inquiry into the absolute disaster of the Post Office-Horizon IT issue will be put on a statutory footing. This issue has already damaged the lives of many people and shaken confidence not just in our ability to have effective public sector software contracts, but indirectly in our justice system which, because of wrong information, delivered wrong verdicts. The opportunity to provide redress for many of those involved is surely vital for us all. Will the Minister confirm that all possible technical advice will be provided to the inquiry so that some of the technical issues, such as the data library and so on, will be exposed—and, above all, who knew what? Will he also confirm that the role of the National Federation of SubPostmasters will be looked at closely to see what alarm bells it sounded and what communication there was between it and Post Office Ltd?

[Paul Scully]

My hon. Friend is absolutely right. Sir Wyn will look at both those things—he will look at those alarm bells—because that is so important to learn those lessons. We cannot learn them any other way, so he is right to do that. Clearly, with this being a computer software issue over two decades, Sir Wyn is getting the technical advice that he needs, and he will always have that support from us. We will make sure that he gets whatever he is asking for in terms of technical support.

Horizon: Sub-Postmaster Convictions

Richard Graham Excerpts

Wednesday 10th June 2020 Commons Chamber

[Paul Scully]

Because I do not want an inquiry that will last 13 years, with sub-postmasters coming back time and again with no justice. I have been pushing on this from the moment that I found out the details about it as postal affairs Minister. That is why I will drive this through to make sure that the answers are heard and that the independent chairman, who is independent of Government and independent of the Post Office, gets to the bottom of the case and gets some answers.

[Richard Graham (Gloucester) (Con)]

In 2015, Post Office Ltd closed its own review of Horizon IT by saying that there were “no system-wide problems with our computer systems”. Nothing could have been further from the truth. We have all been let down, and many sub-postmasters have been badly treated. I urge the Minister to start the independent review as soon as possible to discover precisely who knew what and when in Fujitsu, Post Office Ltd, and the National Federation of SubPostmasters. Does he agree that nothing should be ruled out, including criminal prosecution, if justified?

[Paul Scully]

I totally agree with my hon. Friend. Indeed, as the criminal proceedings continue, those wrongly convicted continue as well, and that will sit along with Justice Fraser’s findings. I do want to move this on as quickly as possible—not to rush anything, but to make sure that those postmasters can get answers and bring the injustice to an end.

Homelessness

Richard Graham Excerpts

Wednesday 29th January 2020 Commons Chamber

[Richard Graham (Gloucester) (Con)]

It is a pleasure to follow the hon. Member for Sheffield South East (Mr Betts), with whom I worked on supported housing issues. He took a less political line than the opening speech by the shadow Secretary of State, which I personally felt rather overlooked the fact that homelessness and rough sleeping is a major social issue for all of us in this House, particularly those of us with urban constituencies. It is what we have to tackle. We have to take ownership of it in our own patch.

How are we trying to tackle homelessness in Gloucester? It is worth noting that under successive Labour MPs during the previous Labour Government from 1997 to 2010 not one additional unit of social housing was built in our city, so although it is fine to talk about making 8,000 homes immediately available, I am afraid that that is not what happened when the shadow Secretary of State was a Minister for eight of those 13 years. I am glad that today, after good work done by the former Chancellor of the Exchequer in writing off all of Gloucester’s housing debt, we now have Gloucester City Homes building new social accommodation. We need to do more of that—I am in no doubt about that.

Let me highlight one particular issue that I suspect others will also face in their constituencies. The major issue for us in Gloucester at the moment is the number of EU nationals with no recourse to public funds. I am afraid it will be the reason why the number of rough sleepers on the statutory count, when the results are announced publicly, will have risen from eight in 2018 to probably close to 20 in 2019, which is not what the Secretary of State wants to see. He wants those figures to come down. He has provided us with funding, but the truth is that two thirds of our rough sleepers are EU nationals in that situation. I know that for London and Birmingham, he has waived the no-recourse situation. I would be grateful if the Minister, in replying to the debate, could say a little bit about what more can be done, or whether he believes this issue will just fade away at the end of the year after we finish the transition period and people coming from the EU will have to have longer term jobs. That will undoubtedly have an impact on the problem for us and I suspect elsewhere in the country.

It is also worth highlighting the fact that the money given by the Government to help us with rough sleepers has made a huge difference. We have been able to house 100 people through the “Somewhere Safe to Stay” hubs and I welcome the additional funding that has been announced this year. It will make a difference to maintaining the hubs and expanding the outreach. I am convinced that we can get on top of these things.

Lastly, I would like to highlight the work done by a new charity, HaVinG – A Voice in Gloucester. We aim to try to provide a pathway not just for housing but for skills and, later, jobs. That is the long-term solution to this problem.

Local Government Finance

Richard Graham Excerpts

Tuesday 5th February 2019 Commons Chamber

[Richard Graham (Gloucester) (Con)]

Earlier this afternoon, in your absence, Mr Speaker, we had a striking contrast in both the style and content of the Secretary of State’s presentation on local government financing and the Opposition spokesman’s response. On the one hand, we had someone calm and measured who, with his experience as Security Minister and as Secretary of State for Northern Ireland, has dealt with real crises, perhaps not least his own cancer. On the other hand, we had the hon. Member for Denton and Reddish (Andrew Gwynne), who was more purple than reddish with indignation as he made his remarks about how his party would never do anything to hurt the people. He said that we must grow the cake. We in Gloucester remember how Labour grew the cake, and he would do well to listen.

[Anna Turley (Redcar) (Lab/Co-op)]

Will the hon. Gentleman give way?

[Richard Graham]

No, let me make this point first.

I remember how Labour grew the cake in Gloucester: by shrinking the economy; by spending furiously on public services while 6,000 of my constituents lost their jobs in business, apprenticeships dried up, and engineering and manufacturing were on the verge of closure, as my Labour predecessor blithely ignored the fact that we had the second worst-performing secondary school in the country; by churning out youth unemployment; and by closing the King’s own post office. We know all about Labour growing the cake, going bankrupt, increasing unemployment—like all Labour Governments—and then complaining about austerity when Britain calls for the Conservatives to sort things out.

Let this House not forget that it was the last Labour-run—

[Jim McMahon (Oldham West and Royton) (Lab/Co-op)]

indicated dissent.

[Richard Graham]

The hon. Gentleman should listen to this. It was the last Labour-run city council in Gloucester that sold the car park for a pound and bought it back for a million. Let us also not forget that the current Leader of the Opposition claimed that 672 Gloucester City Homes tenants had been thrown out, although the actual figure was eight.

We do not need to take any lectures from the Opposition on growing the cake, but does that mean that every Conservative Government get it right? No, of course not. I wish to highlight briefly some of the issues for us in Gloucester. Library research confirms that Gloucester is in fact the worst-affected council, with a year-on-year spending decrease between this year and next of 4.4%. The council’s core spending power fell by more than 8% over the past four-year period.

In today’s world, we know that all second-tier councils must do as much as they can to generate efficiencies, whether by generating savings from increased productivity, merging their back offices, sharing space with other authorities or scrapping the mayor’s car—you name it. That is what every good council should be doing and it is what Gloucester City Council has done. The truth is, though, that as an urban district authority, it is difficult for us to grow and generate new homes bonus, because we have only 5 square miles of land. We are penalised by the deadweight calculation, which is the starting point of the number of homes, and we do not benefit as much as we could from business rate retention, although we are part of the pilot project in Gloucestershire.

The council is a good one. It is well rated by peer group reviews and respected in the city. It is leading on creative physical regeneration, with an award-winning bus station that is much admired in Cardiff and elsewhere, and making real progress on human regeneration by making sure that rough sleepers are helped into housing through the social impact bond and gearing up for a new homelessness hub, both of which are funded by the Government. None the less, the additional costs of dealing with homelessness issues are greater than the extra revenue we were given.

The Minister, who did see Gloucester and Cheltenham councils, at my request and that of my hon. Friend the Member for Cheltenham (Alex Chalk), has made some pragmatic decisions, but they do not, I am afraid, resolve the financial problems that my city council faces. These include issues such as pension contributions and the business of council fees and charges income. Despite being able to raise our precept, we will not, I am afraid, be able to match the costs if our city expects the delivery of the services that it so values at the moment.

I would love to ask the Minister this: will he have not a full blown review of local government funding, as the hon. Member for Liverpool, West Derby (Stephen Twigg) called for, but arrange for a senior official to look specifically at our city council and offer advice on whether the system is working for us and fair, and what more we can and should do to raise the revenue to deliver the services that are so valued across our city of Gloucester?

Tenant Fees Bill

Richard Graham Excerpts

Ping Pong: House of Commons
Wednesday 23rd January 2019 Commons Chamber

[Mrs Wheeler]

My hon. Friend is completely right. The evidence to the Select Committee showed that there was no reason to have a three-week cap and that five weeks was better.

[Richard Graham (Gloucester) (Con)]

The Minister is absolutely right: the Select Committee was clear in its recommendation, and when the matter was discussed in the Public Bill Committee, a lot of evidence was produced to demonstrate that five weeks was a good compromise, which landlords could accept and which would benefit most tenants. The Opposition’s object in proposing three weeks is purely political, enabling them to say to tenants, “We tried to get it much lower,” when in fact the result would surely be many fewer properties available in the market for renting, which would hurt our constituents.

[Mrs Wheeler]

I could not have put it better myself. We do not want to create a situation that encourages landlords to withdraw from the market or ask tenants for more rent in advance, thus decreasing the overall net benefit of the ban on unfair charges. Also, we do not want to legislate in a way that would disadvantage certain groups, including pet owners and those who have lived abroad or have a poor financial history.

The real risk, as we have heard throughout the parliamentary process, is that a cap of four or three weeks’ rent could encourage tenants to forgo their final month’s rent payment. The Housing, Communities and Local Government Committee and peers in all parts of the other House recognised that risk and agreed that a deposit of five weeks’ rent was the right compromise. Lords amendments 36 and 37 are the result of cross-party discussion and agreement. It is worth noting that the hon. Member for Great Grimsby publicly welcomed the five-week deposit cap when it was announced. With that in mind, I hope hon. Members recognise that the Government have already proposed the best solution to the tenancy deposit cap.

--- Later in debate ---

[Melanie Onn (Great Grimsby) (Lab)]

It is a pleasure to speak in this important debate. I would like to thank the Minister for her approach and the Under-Secretary of State for Housing, Communities and Local Government, the hon. Member for Richmond (Yorks) (Rishi Sunak), who steered the Bill through Committee and was open to hearing the Opposition’s views on this small but very important Bill.

I shall speak in support of amendment (a) to Lords amendment 36; amendments (a) and (b) to Lords amendment 37; and amendment (a) to Lords amendment 48. I shall also pay tribute to the work that has been done in Committee, where there was a lot of fruitful conversation and consideration, and in the other place, which has resulted in the Bill arriving back in the Commons in a far better state. It is not just my hard work or the Minister’s hard work that has gone into the Bill. We are backed up by an enormous number of people, including charities, members of the Housing, Communities and Local Government Committee, who are listening keenly to our debate, and civil servants, who have put in many hours to make sure that the Bill is fit for purpose. I am very grateful to all those people who have participated.

In Committee and on Report, we discussed at length the default fee clause. Originally, the Government fought very hard against opposition from Labour and charities such as Shelter to remove a gaping loophole, which would have left the definition of a default to the discretion of those drafting tenancy agreements. It is interesting that Lords amendment 47 bears a striking resemblance to amendment 3, which I pressed on Report. Back then, the Under-Secretary of State for Housing, Communities and Local Government, the hon. Member for Richmond (Yorks), said:

“We believe it is for the tenant and the landlord to determine what it is necessary and fair to include as default charges, on a case-by-case basis. There are other potential default charges besides those for late payment of rent and lost keys.”—[Official Report, 5 September 2018; Vol. 646, c. 208.]

It is welcome that the Government have rowed back on that, despite being so bullish about it during the Bill’s passage through the Commons. I do hope that they bear that in mind when considering amendments to future housing Bills, in which I hope to play a role, and are more thoughtful. If amendments are tabled in good faith, I hope that Government Members would accept that, and if they are worth adopting, do so at an early stage, so that we do not appear conflicted on measures that are positive overall, particularly in this case for people in the private rented sector who are seeking a home and trying to access one.

As the Under-Secretary of State for Housing, Communities and Local Government, the hon. Member for South Derbyshire (Mrs Wheeler), pointed out, Labour always welcomes Government acceptance of the principles and details of our ideas, and we welcomed their acceptance of a Labour proposal in Lords amendment 47 to enshrine what counts as a default fee in the Bill. We believe that that will close a significant loophole in the Bill, moving it far closer to the type of tenant fees Bill that Labour has been proposing since 2013.

We have a number of concerns about the Lords amendments, as the Bill still does not reach its full potential to protect tenants from unscrupulous landlords who want to charge unfair fees. We are very keen to point that this is about the unscrupulous few, not the fair-minded, reasonable and proper many who exist out there. First, Lords amendment 48 adds a new permitted payment of damages to the Bill. The Minister touched on that, so I may have to revise what I am going to say—I hope that hon. Members will bear with me. We tabled an amendment because we are concerned about Lords amendment 48, but that does not extend to a belief that damages in principle are fundamentally wrong. Landlords should not have to pay for repairs when tenants cause damage to their properties, but we do not understand why the Lords amendment is necessary, and why it seemingly misses out a number of protections that are present in other parts of the Bill.

[Richard Graham]

When we discussed this matter in Committee the hon. Lady was very reasonable, and seemed perfectly happy with the five-week proposal that the Government have made in the Lords amendment. It would be much easier if the hon. Lady did not press her amendment, so that we may secure confirmation across the House that this is the best way forward, especially given that there is not a single Labour Back Bencher present to support the hon. Lady’s amendment

[Melanie Onn]

It is a busy day in other parts of the Palace of Westminster; we should give colleagues credit for the fact that they have other work to do. I shall come on to the detail of my amendment and the issue of five weeks. I think that the hon. Gentleman has misremembered the extent of my acceptance of the five-week period. It was a reluctant acceptance at the time, with a view to tabling a further amendment if we thought that necessary. Having heard the Minister’s explanation, I think that it is still necessary to press that point, and I shall address it further in my speech.

I am discussing the damages that landlords can claim if a tenancy agreement is breached, rather than the issue of deposits. I urge the hon. Gentleman to bear with me and allow me to finish making that point. The fact that this is the first reference in the Bill to claiming damages shows that the Government were confident until recently that the Bill as originally drafted would not interfere with the current system. Indeed, the Government’s draft guidance, which we received from the Minister on 5 November, said:

“The Act does not affect any entitlement to recover damages for breach of contract…If a tenancy agreement does not permit a landlord or agent to charge default fees, the landlord or agent may still be able to recover damages.”

It continued:

“What is the difference between a default fee and damages? A default fee is a payment that can be required by a landlord or agent under an express provision in the tenancy agreement and would therefore be permitted under the Tenant Fees Act.”

Finally, it said:

“Can a landlord or agent recover costs for damages if they didn’t write them into the tenancy agreement? Yes. The Act does not affect the landlord’s entitlement to recover damages”.

The draft guidance that we received from the Minister’s Department only two months ago indicated on multiple occasions that the Bill would not impact on a landlord’s ability to claim damages, and it spelt out the difference between a default and a deposit. There is therefore a concern, because what was seemingly settled has become unsettled as the result of an addition which, to all intents and purposes, and given the explanation that we received, does not need to be made. What is the purpose of that? However, the Minister’s assurance on the intention to reassure landlords and innocent parties that they are simply going to be in the position that they were in before any such harm was caused perhaps gives me reason to reconsider.

--- Later in debate ---

[Kevin Hollinrake]

rose—

[Richard Graham]

rose—

[Melanie Onn]

I will move on because I am absolutely convinced that hon. Members will want to address these points in their speeches—they are committed to the subject and have taken a close interest, whether in the Bill Committee or in Select Committees. I look forward to hearing their comments in the remainder of the debate, but I will move on if that is okay.

--- Later in debate ---

[Richard Graham]

rose—

[Melanie Onn]

I have already given way generously.

The first point that our amendments seek to address is the financial staggering for the cap level that landlords are allowed to impose. I have sympathy with the Government’s aim of prioritising a reduction of the deposit burden on those at the cheaper end of the market, but the specific provisions in Lords amendment 36 could mean that those in joint tenancies end up being subject to the higher cap, despite individually paying significantly less in rent than is used as a threshold in the amendment. It is counterintuitive to create a cap that allows deposits to be relatively higher for someone paying £5,000 a year in rent in a 10-bed large house in multiple occupation than for someone paying £45,000 in an individual rent, so I would welcome reassurance that joint tenants will not be short-changed by the differential cap. If they will be, I would welcome an explanation of the logic behind the decision to allow those in joint tenancies to be charged relatively more.

Regardless of the functioning of the differential cap, the Lords amendment will do little for the majority of tenants in this country. The cap will have a negligible effect on the majority of deposits in the country and will allow the current system to function virtually unchanged. For the graduate who cannot afford the up-front costs to move to a city for a new job, or for the family given just two months to save enough money to find a new flat and avoid homelessness following a section 21 notice, the system is simply not fit for purpose and needs urgent change.

According to the English housing survey, a five-week rental deposit will set new tenants back an average of almost £1,000 across the country, and over a staggering £1,500 in London. For many in society who are living pay cheque to pay cheque, saving that sort of money would take an enormous amount of time, and certainly far longer than the two months that tenants are given when they are served with section 21 notices. That means that many struggle to access the flexibility that renting should offer. They fear being served notice to vacate because that could result in homelessness. That is simply not how the private rented sector should function.

Our amendments would change that. Lords amendment 36 introduces an ill-thought-through staggering system. Amendment (a) in lieu would reduce the cap on deposits from five or six weeks to three, and our amendments together will reduce deposits to three weeks for all, closing the loophole that could be opened by Lords amendment 36.

I was interested to hear the Minister’s announcement of the enactment date. A written statement is due today, which I look forward to reading. I was also interested to hear her comments in response to my hon. Friend the Member for Manchester, Withington (Jeff Smith), who is no longer in his place, on enforcement and trading standards. She said that the consumer money protection measures in the Bill would be in place before enactment. I would appreciate clarity on whether she meant enactment on 1 June 2019, which is rapidly approaching, or whether she was referring to the commencement date of April next year.

Labour’s amendments would give private rented sector tenants a very welcome helping hand at a very expensive time. If passed, the amendments would reduce the deposit barrier by almost £400 across the country, and by over £600 in London, offering significant change to tenants from all backgrounds and building a better private rented sector for the many.

[Bob Blackman]

I draw the attention of the House to my entry in the Register of Members’ Financial Interests.

It is a pleasure to follow the hon. Member for Great Grimsby (Melanie Onn). I had the opportunity to chair—and the challenge of chairing—the Housing, Communities and Local Government Committee during pre-legislative scrutiny in the absence of the elected Chairman of the Committee, the hon. Member for Sheffield South East (Mr Betts), who unfortunately was undergoing health treatment at the time. I take absolutely the praise that the hon. Lady pours on me for reaching the judgment of Solomon—[Interruption.] It was possibly unintended at the time. From the outset of our pre-legislative scrutiny, on an all-party basis, we sought to balance good landlords and tenants, who are the overwhelming majority, with the small minority who are rogue landlords and rogue tenants. The risk here is the balance that is struck.

I do not intend to go over all aspects of the Bill but, clearly, I am absolutely delighted that the Government have seen fit to endorse all the Select Committee’s recommendations, especially the reduction of deposits from six to five weeks’ rent. I will again set out why we came to that conclusion. As Members might recall, we had a long discussion about it in Committee. Some promoted the concept of a six-week deposit and some a four-week deposit. No one but no one on the Select Committee promoted less than four weeks, for very good reasons.

Our view was that a six-week deposit was clearly too onerous for tenants. I accept what the hon. Member for Great Grimsby says about the cost to tenants of a six-week contribution, but there is also a clear risk with only a four-week deposit—or, worse still, her proposed three-week deposit—because we might get to a position in which, in the last month before the end of a six-month assured shorthold tenancy, a tenant has no incentive whatever to pay their last month’s rent. Tenants could just skip, and the landlord would then have to pursue them through the courts, bearing incredible costs unreasonably.

The issue for us was that four weeks would lead to a position whereby the tenant had an incentive to say, “Okay, I won’t pay the last month’s rent—just take it out of the deposit,” and then if the landlord could reasonably wish to claim money from the deposit because of damage or other reasons, they would have to pursue court action to recover it. That would be grossly unfair on good landlords, who are the vast majority in this country. Other members of the Committee promoted six weeks, so we ended up with the view that five weeks struck a balance between giving tenants an incentive to pay their last month’s rent, in the knowledge that they would get back their deposit had they been good tenants, and landlords being forced to go through a proper claim process to recover moneys as a result of damage by a tenant.

[Richard Graham]

I am afraid that the Opposition spokesperson, the hon. Member for Great Grimsby (Melanie Onn), will not give way on this matter because she is making a purely political point by wishing to appear to be helping tenants more, but the interesting silence in the debate so far has been from Scottish National party Members, because of course there is an eight-week deposit in Scotland. What does my hon. Friend think about that?

[Bob Blackman]

Clearly we are not talking about the position in Scotland, but I suspect—I might be wrong—that rental levels in Scotland are very much lower than elsewhere in our urban conurbations, and certainly in London. Scotland also perhaps has a lot more social housing than England—

Oral Answers to Questions

Richard Graham Excerpts

Monday 10th December 2018 Commons Chamber

[Kit Malthouse]

I am always happy to meet anybody who will help us to build more of the homes that Britain needs, and if someone from the SNP can spare some time from stoking grievance to meet constructively, I would be more than happy to do so. As I said, we are making an enormous effort to raise the output of the house building industry of all types of home, both public and private, in this country. We have managed to get up to 222,000 new homes, which is the largest expansion in house building for many decades—it is the highest level of output in all but one of the last 31 years. We are making good progress towards our target of 300,000 new homes a year of all types, including affordable, private and social.

[Richard Graham (Gloucester) (Con)]

9. What steps his Department is taking to review the distribution of funding to local government.

[Maggie Throup (Erewash) (Con)]

20. What steps his Department is taking to review the distribution of funding to local government.

[The Parliamentary Under-Secretary of State for Housing, Communities and Local Government (Rishi Sunak)]

With permission, Mr Speaker, I would like to answer Question 9 with Question 17.

We are undertaking a review of local authorities’ relative resource and needs. We are making good progress in collaboration with the sector and are considering many topics that hon. Members have raised as we look to introduce a simple, accurate and transparent new funding formula.

[Richard Graham]

rose—

[Mr Speaker]

Before the hon. Gentleman puts his question, I appreciate that the Minister is probably operating on earlier intelligence, but Question 17 has gone, and therefore the grouping is merely with Question 20—a point that I am sure other Members instantly knew and of which I am merely reminding them.

[Richard Graham]

As the Minister knows, small urban areas have limited space to generate increased new homes bonus. If my hon. Friend could announce that Gloucester and Cheltenham were to be pilot projects for retaining all business rates revenue, that would be a welcome Christmas present, but in the absence of that, what advice would he give to good urban councils that are keen to maintain their services and regenerate their city or borough centres?

[Rishi Sunak]

I was delighted to meet recently my hon. Friend and those in his local authority. It was inspiring to hear their ambitious plans to grow the local economy, and I commend them for their vision. I would urge them to look at the recently announced high streets fund, which can help them to ensure that their town remains a vibrant and prosperous community.

Tenant Fees Bill

Richard Graham Excerpts

3rd reading: House of Commons & Report stage: House of Commons
Wednesday 5th September 2018 Commons Chamber

[Matt Rodda]

My hon. Friend makes an interesting point, and I urge the Minister to take this opportunity to listen to him and to the points made by our Front Benchers.

Amendment 3 provides a clear definition of default fees and limits the amount that could be charged, while still allowing landlords and agents to charge for expenses where there is a clear cost. It would provide clarity for all parties and, crucially, it would provide tenants in my constituency and elsewhere with the protection from exploitation that they so desperately need. Surely colleagues across the whole House would agree that that is the right thing to do. I therefore urge the Minister to consider this amendment and to consider strengthening the Bill to provide limits on what can be charged for. I urge him to take this opportunity to protect tenants from exploitation. It is time for the Government to listen to tenants and to deliver a fair, accessible and accountable rental market for all.

[Richard Graham (Gloucester) (Con)]

I rise to support the Tenant Fees Bill, which has been so clearly presented today by the Minister. The abolition of most up-front fees, the capping of security deposits at six weeks’ rent, the reduction of costs to tenants in the private sector potentially by hundreds of pounds and the increasing of transparency in the housing market—surely we can all unite in saying that these characteristics of the Bill are a good thing. We have all met constituents who rent and whose fees have gone up by roughly 60% in the period between 2010 and 2014 and who have been charged fees for the most bizarre and sometimes unfair reasons—including, for example, checks being made by the same agency on the same tenant for a different property in a short space of time. As my right hon. Friend the Member for Scarborough and Whitby (Mr Goodwill) mentioned, those fees should be paid by the landlord if they are going to be paid by anyone. As rents and demand increase, the unfairness in the marketplace from a few—I stress a few—landlords and agents that is tolerated by law requires a response from the Government.

However, the Bill is not just about saving money and increasing transparency. The principle of fairness will also be boosted because all landlords will have to be members of a redress scheme, and because tenants should have easier access to dispute resolution. That is an issue that many of us will be familiar with through our own surgeries. Agents will have to be registered as members of a client money protection scheme, as many already are, and banning orders and a database of rogue landlords will be introduced. We all know about the frequent suspects whose properties consistently fail environmental health inspections, and I suspect that they will find their way on to that list unless they change their habits, which is the point of the Bill. At the same time, there will be a further consultation on benefits and barriers relating to longer-term tenancies, which I also welcome.

The ban on fees, the capping of security deposits and much else has already been welcomed by many organisations, such as Which? and Citizens Advice, and on the face of it there is no reason why anyone should object to the changes. However, there are of course some who have opposed some of the detail of the legislation, and at a time when trust is such a crucial element in the relationship between tenant, agent and landlord it is worth touching on those objections.

Tenant Fees Bill (Fourth sitting)

Richard Graham Excerpts

Committee Debate: 4th sitting: House of Commons
Tuesday 12th June 2018 Public Bill Committees

[Rishi Sunak]

No—okay.

The Government’s aim has been to provide a sufficient deterrent for an initial breach of the ban that still allows landlords and letting agents who may inadvertently commit a breach not to be disproportionately penalised. We therefore resist amendments 2 and 3.

As hon. Members have noted, breaches of legislation related to letting agents, such as the requirements to belong to a redress scheme and to be transparent about letting fees, are subject to a fine of up to £5,000. However, we have listened to concerns that a £5,000 fine may not be enough of a deterrent for some agents and landlords, so clause 8 proposes a financial penalty of up to £30,000 for a further breach of the ban.

Importantly, that upper limit is consistent with the higher rate of civil penalties introduced in April 2017 under the Housing and Planning Act 2016. Given that the repeated charging of fees is a banning order offence, we firmly believe that the level of penalty needs to be consistent with the legislation under that Act, which brought banning orders into force.

It is too early to argue that the higher level of financial penalty at £30,000 has not been successful in offering a more significant deterrent to non-compliance. In the evidence that Alex McKeown of the Chartered Trading Standards Institute gave last week, she said that she believed that £30,000 would act as a “significant deterrent”.

[Richard Graham (Gloucester) (Con)]

There is a slight note in the debate of some who see landlords and agents as villains and enemies to be bashed at every conceivable opportunity. For many of us, however, the issue is about how we construct a partnership that gives tenants more rights and that provides a better sense of fairness in the relationship, but which ensures that there is a strong and functioning market and that we do not go back to the 1970s when the Opposition created a situation in which there was very little provision of private sector housing, of which we know that we will need a great deal more.

[Rishi Sunak]

I thank my hon. Friend for another thoughtful and measured comment. He is absolutely right: we are not in the business of demonising particular groups of people; we are interested in having a fair and functioning market. The balance that that requires has been a focus throughout all the deliberations on the Bill.