Parking (Code of Practice) Bill

Rishi Sunak Excerpts

3rd reading: House of Commons & Report stage: House of Commons
Friday 23rd November 2018 Commons Chamber

[Alex Chalk]

That was elegantly done. Well, on that basis, I do not have much more to say. I have made the points I wanted to make.

With the Bill being improved in the way that has been proposed, I end by congratulating my right hon. Friend the Member for East Yorkshire. This is past time, and the Bill will be welcomed in my constituency, by the constituent I mentioned, by me and, I am sure, by Members on both sides of the House.

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

It is wonderful when both sides of the House come together to support and put in place legislation that will make a practical difference to the day-to-day lives of the millions of people we represent. In that vein, I wholeheartedly congratulate my right hon. Friend the Member for East Yorkshire (Sir Greg Knight) on highlighting this issue, and on the tenacity and diligence with which he has brought the issue to the Floor of the House and to Committee. I pay tribute to him, and many people will be grateful for his efforts.

I will speak briefly now, and perhaps respond to hon. Members’ comments more generally on Third Reading. For now, I will limit my remarks to the various new clauses and amendments.

New clause 1 will appoint a single appeals service to create further clarity for consumers, giving a well-signposted route to appeal a private parking ticket. I am delighted on behalf of the Government to support the new clause. It and the associated amendments will ensure that there is a fair, transparent and consistent appeals service for motorists. This has been warmly welcomed by consumer groups and the parking industry alike.

I am pleased to tell the House that Steve Gooding, the director of the RAC Foundation, has said:

“we particularly welcome the proposal for a single, independent appeals service, which, together with a single, clear code of practice should establish a better, clearer framework and a level playing field that is fairer for all”.

The foundation has challenged the effectiveness of self-regulation in the parking industry. Only this week, it drew attention to the fact that in the second quarter of the financial year, private parking companies sought yet another record number of vehicle keeper details from the DVLA with which to pursue ordinary drivers and motorists.

The chief executive of one of the industry’s leading trade associations, the British Parking Association, has said that the association welcomes the amendments tabled by my right hon. Friend the Member for East Yorkshire, commenting that they

“chime with our call for a single standard body, single code of practice and a single independent appeals service. This framework provides a unique opportunity to deliver greater consistency and consumer confidence”.

The BPA looks forward to pushing

“for a positive outcome for all.”

It is therefore with pleasure that the Government can support new clause 1.

I am also pleased to support, on behalf of the Government, amendments 1 to 6, which are pragmatic alterations that will support the Bill’s delivery through secondary legislation. They will give the Secretary of State the ability to delegate functions to non-public bodies, such as experts in auditing, as seems eminently sensible. They will clarify the role of the Secretary of State, in that he or she will have final approval of the code of practice and any subsequent alterations that will be submitted to Parliament. Finally, as my right hon. Friend stated, the amendments will expand the existing levy under the Bill to cover the cost of appointing and maintaining a single appeals service. The Government support all the amendments.

Let me turn briefly to the amendments tabled by my hon. Friend the Member for Christchurch (Sir Christopher Chope). I welcome his broad support for the Bill’s measures, and share his commitment to, and enthusiasm for, ensuring that the measures start making a practical difference to people as soon as possible. However, following the arguments that have already been made by various Members on both sides of the House, I, too, do not believe that the amendments are necessary. I can personally assure my hon. Friend that the Government and I are committed to creating and publishing a code of practice for the private parking industry as soon as is practically possible. I can confirm that considerable work has already gone into this, and I will happily walk the House through that in a second.

More generally, placing an arbitrary timeline on the process of developing a code and implementing the Bill would compromise our ability to make sure that the Bill comes into force in the way that we want it to, and with the impact that we all desire it to have. For example, a consultation with the public is necessary. Given the scale and volume of the correspondence to our postbags and email inboxes, which are already full regarding this topic, one can imagine that that consultation will be of extreme importance to many people whom we represent. They will want time to have their say, and we should make sure that that is possible. Furthermore, as has already been outlined, procurement practices might be required, and if they should be required, they will be subject to statutory timelines that need to be obeyed. Lastly, if the code of practice was going to put in place new provisions around such things as standard signage, standard forms of parking tickets or standard language, it would be appropriate for a suitable transition period to be put in place to allow companies to adjust to the new, fairer measures.

[Sir Christopher Chope]

Taking all that the Minister is saying into account, what is his best estimate as to when these measures will actually be effective in law?

[Rishi Sunak]

I cannot give my hon. Friend a precise answer to that question, simply because, in the first instance, I am not in control of the parliamentary process in the other place, as he will be aware.

However, what I can do for my hon. Friend and the House is to give some evidence as to the pace and commitment with which I and my team are working on this issue. My predecessor, my hon. Friend the Member for Nuneaton (Mr Jones), had already, even before the Bill’s Second Reading, asked the director of the RAC Foundation to form a working group to start developing an outline code of practice. That working group contains multiple stakeholders from across the industry, including the two main trade associations—the BPA and the International Parking Community—the Welsh and Scottish Governments, and bodies such as People’s Parking, the RAC Foundation, the traffic penalty consortium, the British Retail Consortium, and the DVLA. The body has already met four times—each time extensively, for over two hours—to debate all the issues. I personally have spent time with the director of the RAC Foundation and the BPA, and I am shortly to meet the IPC. My officials have had more than 30 bilateral meetings with members of the working group. At my instigation, my officials have hosted a parking operator roundtable in the Department to fully engage the industry to help to develop the code of practice.

All that work has not been in vain. It has informed a draft code of practice, which has already been published and shared with the Public Bill Committee, and I would be delighted to place a copy of it in the Library for hon. Members to see. I hope that, collectively, this will give all hon. Members the reassurance they need that the Government and I are firmly committed to developing this code of practice, and ensuring that the legislation is enacted as quickly and practically as is possible.

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[Rishi Sunak]

It is a pleasure to conclude this outbreak of consensus and unity. The hon. Member for Denton and Reddish (Andrew Gwynne) put it perfectly: of course private landowners and car park operators have the right to manage their land effectively, but that must be done in a fair, reasonable and proportionate manner. For the first time, as a result of this Bill, that is exactly what will happen. We have heard so many contributions from Members in all parts of this House about the sharp practices that our constituents have had to endure, and we will now be able to put an end to those nefarious ways of doing business.

So many specific examples have been given that it will be difficult to respond to all of them, but I wanted to touch on a few of the common themes that emerged in Members’ contributions. The issue of surface markings was raised by many Members and I can confirm that the code of practice should look at that, along with signage—the size, the things that should be included on signs and where they are located in car parks. Again, that is a common-sense measure.

Consideration and grace periods was another issue picked up on by many hon. Members. We heard examples of Members and their constituents being taken advantage of. Ensuring there are sensible periods to allow someone to come into a car park, decide whether they want to park and then leave again without charge, and to allow them when they return to be able to pay for their ticket, get to their car and leave are sensible measures that the code of practice will examine.

We heard a lot about the legal status of private penalty charge notices and the confusing nature of private companies using that legal language. I confirm, again, that the code of practice should and will look at that, as well as the language and information that should be included on those private parking notices, as we should perhaps call them. This could include the contact details for the parking operator, clear information about the appeals and the challenge process, timescales for payments and the details in relation to the breach of contract, so that no threatening or misleading language can be used in relation to the terms of the situation that the parker has found themselves in.

Fines were a topic raised by many Members. Of course it is sensible that there should be some element of fines, but those should be reasonable. I have heard and taken on board the suggestion from hon. Members about linking them in some way to local authority fine rates, which are already in existence. That idea definitely has merit and we will continue to explore it with the team. My hon. Friend the Member for Bexhill and Battle (Huw Merriman) raised the issue of railway parking. As he knows from his time in the Department, railway parking is governed by separate rail byelaws. Obviously, our constituents are not aware of that, so we are working with the Department for Transport to see whether we can find consistency between the various different regulations.

I hope hon. Members will remain convinced of our commitment to bringing this legislation into force as soon as practicably possible. Of course we all join in congratulating my right hon. Friend the Member for East Yorkshire (Sir Greg Knight) on his diligent and valiant efforts in this regard. In conclusion, I hope hon. Members can join me in thanking my team. A small team has been working on this incredibly important issue for many months. They have done a fantastic job and I am sure that they will continue to make us proud as we bring this legislation to bear.

Bellwin Scheme: Leicester

Rishi Sunak Excerpts

Tuesday 6th November 2018 Written Statements

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

On 25 February 2018, there was a major explosion and fire in Hinckley Road, Leicester which resulted in the tragic loss of five lives. I am satisfied that financial assistance under the Bellwin scheme is justified to cover eligible costs incurred by Leicestershire fire and rescue authority in dealing with this emergency.

A scheme will therefore be established under section 155 of the Local Government and Housing Act 1989. Grant will be paid to the Leicestershire fire and rescue authority to cover 100% of their eligible costs incurred above a threshold.

[HCWS1070]

Oral Answers to Questions

Rishi Sunak Excerpts

Monday 5th November 2018 Commons Chamber

[Rebecca Pow (Taunton Deane) (Con)]

3. What recent assessment he has made of the effectiveness of his Department’s support for local government.

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

Councils will receive a real-terms increase in financial resources both this year and next. Furthermore, the Department funds the Local Government Association to provide support for local authorities to build leadership capacity, conduct peer reviews and facilitate efficiency initiatives.

[Rebecca Pow]

I thank the Minister for that. What help is being provided specifically for Somerset County Council to cope with the escalating demands of adult social care and children’s services? Will he bear in mind that Somerset County Council desperately needs £80 million from the housing infrastructure fund in order to cope with providing much-needed future infrastructure?

[Rishi Sunak]

My hon. Friend is tireless in pressing Somerset’s case. We listened carefully to her and others, and the Budget confirmed an additional £650 million for social care next year, and indeed an additional £500 million for the housing infrastructure fund. I am sure that the Minister for Housing will have heard her submission, but given what I have said, and the LGA’s specific support for Somerset with its children’s services, I hope she feels that we are responding to Somerset’s concerns and hers.

[Mr Barry Sheerman (Huddersfield) (Lab/Co-op)]

I do not know whether the Minister has ever heard the song “Streets of London” by Ralph McTell, but it is worth listening to just to be reminded of what the streets of every town in this country are like: how run down they are; how many rough sleepers there are; how much deterioration there is; how much graffiti there is; and how many broken pavements there are. That is what my constituents see in my town, and it is happening up and down this country because this Government have starved our country’s local government service.

[Rishi Sunak]

The hon. Gentleman may want to talk this country down, but Conservative Members have enormous faith in towns and communities up and down this country, which was why in the Budget we backed Britain’s high streets with a £675 million fund. We did that because we believe in local communities taking control of their high streets and developing vibrant communities that we will enjoy for years to come.

[Andrew Bridgen (North West Leicestershire) (Con)]

What steps is the Minister taking to ensure that local authorities in rural areas can deliver public services effectively?

[Rishi Sunak]

My hon. Friend has met me and others to discuss the cost of delivering services in rural areas, particularly in Leicestershire. His local county council has been a vocal proponent of a new fair funding formula, and I am pleased to tell him that we are engaged with his council and others to take into account those concerns, and we will shortly be issuing the latest round of consultation on those proposals.

[Helen Hayes (Dulwich and West Norwood) (Lab)]

When one of the councils serving my constituency still faces £43 million of cuts over the next four years—more than the combined total it currently spends on recycling, parks, libraries, children’s centres, roads and pavements, and community safety—does the Secretary of State agree with the Prime Minister that austerity is over, or does he share the incredulity of so many of my constituents who wonder how she could possibly be so out of touch?

[Rishi Sunak]

This Government believe in backing local authorities to build strong communities. The hon. Lady mentioned parks and roads. Perhaps she heard in the Budget about £420 million for our councils to fix potholes this winter. My right hon. Friend the Secretary of State recently announced another round of our hugely successful pocket parks programme, and I encourage her local authority to bid as well.

[Mr Peter Bone (Wellingborough) (Con)]

In Northampton- shire, the borough councils, the district councils and the county council are all working together to set up two new unitary authorities. Is the excellent Minister able to say when he is going to consult on that? Secondly, is he able to say when he will make a decision on whether next year’s borough and district council elections need to go ahead?

[Rishi Sunak]

May I join my hon. Friend in paying tribute to all the local councillors in Northamptonshire, who are working very constructively together through a difficult situation to ensure that their residents benefit at the end of the process? I can tell him that reasonably shortly we will be issuing details about the next step of that process. As he rightly points out, as part of that the Government may have the ability to delay the elections next year, should that be requested by the authorities and make sense in the context of the new unitisation proposals.

[Andrew Gwynne (Denton and Reddish) (Lab)]

This Government’s record on local government is clear: since 2010, the Department’s budget has fallen by at least £13 billion; and, by 2020, the revenue support grant will be cut by 80%—£8 billion—putting more pressure on to council tax, which is an unequal levy. Northamptonshire has, in effect, gone bust, with the media reporting that Surrey, East Sussex and Lancashire are next in line. Services are under pressure—cut, slashed or stopped altogether—and councils are at breaking point. The Public Accounts Committee asked Ministers to publish a definition of “financial sustainability” for councils, methodology for assessing authorities at financial risk, and projections for spending and demand in service areas, so why have they refused? This is common sense; what has the Minister got to hide?

[Rishi Sunak]

The hon. Gentleman has a job to do, and I appreciate that—it is his job to put pressure on us—but I would have thought that this week, after all the question sessions we have had, he would have joined me in welcoming last week’s Budget, which includes £1 billion extra for local government across two years.

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[Robert Courts (Witney) (Con)]

7. What steps his Department is taking to ensure the equitable allocation of funding to local authorities.

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

We are undertaking a fair funding review of local authorities’ relative needs and resources to address concerns about the fairness of the current system. This will determine the new funding allocations for local authorities through a more up-to-date and fairer funding formula.

[Robert Courts]

Rural areas are historically underfunded and in West Oxfordshire we need more funding for road repairs, upgrades to the A40 and adult social care. How is fairer funding progressing and will this be addressed in the spending review?

[Rishi Sunak]

I am pleased to say that we are making very good progress and are considering many of the topics raised by hon. Members, including rapidly changing demographics affecting social care and the cost of delivering services in rural areas. I look forward to collaborating closely with the sector and with my hon. Friend’s county as we look to introduce a simple, accurate and transparent new funding formula.

[Nic Dakin (Scunthorpe) (Lab)]

If funding is so equitable, why is North Lincolnshire Council giving people on the lowest incomes such a low level of support with their council tax, at only 50%? Why is the council sending nearly all its discretionary housing payments back to the Government?

[Rishi Sunak]

Decisions about local council tax support are rightly for individual local authorities to make themselves; it would not be appropriate for me to dictate to them. The fairer funding formula is designed to determine the equitable nature of funding distributed to all local authorities. The hon. Gentleman will know that the current system dates back to 2013-14, and indeed many elements date back decades before that. We are determined to fix it and bring it up to date.

[Steve Double (St Austell and Newquay) (Con)]

I thank the Minister for supporting the measures in the Budget exempting public toilets from business rates and providing a commitment to take action regarding second home owners who are avoiding business rates. I very much welcome his words on a fair funding formula, but when the fair funding formula was previously introduced, it was dampened away. Will he make a commitment that rural councils really will see the benefit of a new fairer formula this time?

[Rishi Sunak]

I pay tribute to my hon. Friend and, indeed, to my hon. Friend the Member for North Cornwall (Scott Mann) for successfully placing in the Budget measures on public toilet relief and second homes. With regard to my hon. Friend’s second point, I am determined to ensure that the new formula is transparent and that all local authorities—not just those in rural areas—have a clearer idea about their allocation under the new formula, and transition to those new allocations in a relatively short timeframe.

[Dr Roberta Blackman-Woods (City of Durham) (Lab)]

A recent report by the New Policy Institute shows that the majority of local government cuts have fallen on the 10 most deprived councils, despite the fact that they have higher numbers of looked-after children and adults needing social care and other council services. Will the Minister now commit to funding councils properly and according to levels of need, rather than political colour, as the Government appear to be doing at the moment?

[Rishi Sunak]

It is simply not the case that that is how funding is determined. Although out of date, the current funding formulas do contain deprivation measures and funding is distributed on the basis of need. That is also how the new funding for adult social care, announced just last week, will be distributed—according to the relative needs formula.

[Lilian Greenwood (Nottingham South) (Lab)]

8. What recent assessment he has made of the adequacy of Government funding for local authorities in England.

[Stephen Timms (East Ham) (Lab)]

10. What recent assessment he has made of the adequacy of Government funding for local authorities in England.

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

The Government have listened and responded to the pressures faced by local authorities. The autumn Budget helped to support financial sustainability of local authorities and provided more than £1 billion of additional funding across this year and next year for local authorities to deliver local services, support vulnerable residents and build vibrant communities.

[Lilian Greenwood]

I welcome the short-term support for adult social care promised in last week’s Budget, but it is a sticking plaster at best. In Nottingham, it costs an average of £450 a week to care for someone at home, compared to £2,500 in hospital. Our NHS trusts are already raising concerns about winter pressures. Inadequate social care provision adds to those pressures and will inevitably cost the Government more in the long term. I know that the Minister understands the importance and efficacy of early intervention and prevention, so can he provide any assurances that he understands the need to fund adult social care sustainably and tell us what support will be provided from 2020 onwards?

[Rishi Sunak]

The hon. Lady is absolutely right to mention the importance of prevention, and of the interaction between the NHS and social care. Later this year, we will see the publication of the Government’s Green Paper with a long-term sustainable settlement for social care. That will answer her question as to the settlement for social care beyond next year in the spending review.

[Stephen Timms]

My hon. Friend the Member for City of Durham (Dr Blackman-Woods) just mentioned Cambridge University research published last month showing that local authority spending cuts have been concentrated on the poorest areas, making disparities with better-off areas much worse. Phasing out central Government grants, as Ministers are proposing, will make that even worse. Are Ministers happy just to let the disparities between different areas rocket?

[Rishi Sunak]

It may be worth pointing out to the right hon. Gentleman that core spending power per household in the most deprived local authority areas in the country is 23% higher than that in the least deprived. This Government support all communities with the resources that they need.

[Ian Austin (Dudley North) (Lab)]

9. What assessment he has made of trends in the level of new homes provided for social rent since 2010.

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[Kevin Foster (Torbay) (Con)]

T3. Like the Minister, I welcome the Budget’s announcements of £650 million extra for social care and £84 million for children’s social care programmes over five years. Will he confirm when local authorities, including Torbay Council, will be told what their share of this new money will be?

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

I can tell my hon. Friend that £240 million of the £650 million will distributed in the same way as the budget for the current year and he should have received those figures already. We will shortly write to local authorities and colleagues about the distribution of the second tranche of £410 million.

[Lloyd Russell-Moyle (Brighton, Kemptown) (Lab/Co-op)]

T2. Last week, Southern Landlords Association filed for judicial review—[Interruption.]

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[Mr Marcus Jones (Nuneaton) (Con)]

The Labour cabinet in Nuneaton and Bedworth is imposing a £40 garden tax on green waste collection, despite pledging not to do so in May’s local election. Does my hon. Friend agree that such a fundamental change to how people’s waste is collected should not be made without full and proper consultation with the public and buy-in from local people?

[Rishi Sunak]

My predecessor in this job well knows that such decisions are rightly for local areas to make themselves, but I would say that local authorities should look to tighten their own belts and curb any wasteful spending before increasing the bills of hard-working taxpayers.

[Mr Dennis Skinner (Bolsover) (Lab)]

Further to the Secretary of State’s answer to my hon. Friend the Member for High Peak (Ruth George) about Derbyshire County Council’s cuts, the cuts in question are worth more than £200 million, and they were made not by the Labour Government, as he stated, but by the Tory Government in alliance with the Liberal Democrats. To refresh his memory further, I should remind him that we also trebled the amount of money going into the hospital. Now a Tory county council at Matlock has decided to close 20 libraries in the county. That’s politics.

Local Authority Budget Reductions

Rishi Sunak Excerpts

Tuesday 30th October 2018 Commons Chamber

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

I congratulate the hon. Member for Barnsley Central (Dan Jarvis) on securing this important debate. His pride and commitment to his local area is clear. I share his passion for local government and join him in paying tribute to the incredibly important work that our local councillors up and down the country do every single day. As someone who is passionate about local government, I thank him for sharing his knowledge and experiences of his area. It is always important for me to hear from colleagues about their areas and what they feel is happening on the ground.

Before I respond to the hon. Gentleman’s points, I will set out my vision for the role of local government, which consists of three broad areas: first, driving economic growth; secondly, helping the most vulnerable in our society; and, thirdly, building strong communities. I will take those three areas in turn and deal with the questions and points raised by the hon. Gentleman, as well as talking in particular about the area that he has the privilege to represent.

I will start with economics and finances. In this financial year, councils in the Sheffield city region, including Rotherham, Sheffield, Doncaster and Barnsley, had aggregated core spending power of just over £1 billion. Core spending power is the standard measure of a local authority’s financial resources. It rightly includes money not just from the central Government grant, but from locally raised council tax, the local area’s share of the business rates pot, and specific Government grants for things such as adult social care and the new homes bonus. Core spending power across the Sheffield city region is up every year since 2016, and across the country core spending power will see a real-terms increase in this financial year.

Beyond grants from central Government, driving economic growth is the only sustainable way to ensure the vibrancy of our local communities and to raise the vital money that we need to fund our local public services. Business rates retention is one such opportunity. Indeed, across the Sheffield city region, local authorities will generate around £16 million in additional funds this year as a result of keeping the proceeds from the economic growth that they have helped to create. Next year it is estimated that that figure will increase to £24 million.

That is not the only incentive for local growth, however, as it sits alongside the Government’s other work to support local authorities’ wider ambitions through local growth and devolution deals. For example, £52 million has been invested in a business investment fund, which will unlock direct investment in small and medium-sized enterprises across the Sheffield city region. An additional £3 million has been invested to speed up the delivery of the state-of-the-art Supertram network, which I was delighted to see launched last week by the hon. Gentleman and the rail Minister, my hon. Friend the Member for Orpington (Joseph Johnson). Finally, a further £36 million has been invested in the region’s integrated infrastructure plan, opening up new employment sites, delivering new homes and fuelling the growth of the advanced manufacturing innovation district between Sheffield and Rotherham. As evidenced by the devolution deal, which I know the hon. Gentleman is passionate about, and the £30 million a year in incremental funding that will come with that deal, the Government will continue to work hand in hand with the new Mayor to back the Sheffield city region and to drive local economic growth to fund local services.

I turn to my second theme. One of the most undeniably crucial roles that local government continues to play is helping the most vulnerable in our society. As the hon. Gentleman said, it is local authorities that support the elderly, the disabled and our children in need. We owe councils an enormous debt of gratitude for the incredibly important work that they do, and this Government are backing local authorities to carry out those vital duties. Last year’s Budget provided an additional £2 billion for social care. Just last month, another £240 million was announced for social care winter funding this year, and at yesterday’s Budget, the Chancellor announced that a further £650 million will be provided for care services in the next financial year.

It is not just about money. The increased collaboration that this investment has fuelled between local authorities and the NHS has delivered real benefits on the ground in local communities. I am pleased to say that social care has freed up 949 beds a day since the February 2017 peak, which represents a 39% reduction in social care delayed transfers of care. In the Sheffield city region, Barnsley is among the best performing local authorities in the country, achieving zero social care delayed transfers of care according to the most recently available statistics. I pay tribute to the local authority, and others in places such as Doncaster and Sheffield, for their terrific work in this regard.

The Government’s troubled families programme is another area in which we are making amazing strides to support our society’s most vulnerable families. Indeed in Barnsley, the safer neighbourhood service and the early start, prevention and sufficiency service are bringing together council services—including family centres, targeted youth support, education and the youth offending service—to improve outcomes for local residents. We have heard about the importance of prevention, and indeed across the Sheffield city region the troubled families programme is working with over 13,000 families and benefiting from the more than £25 million of available funding.

One of the unique privileges I have as the Local Government Minister is to travel around the country to talk to families participating in this programme and to see at first hand its life-changing work. I am proud to say that £1 billion of funding has been committed to the troubled families programme over this spending cycle. Nationally, more than 130,000 families are already achieving significant and sustained progress. For example, for families on the programme six to 12 months after the intervention, the proportion of children designated as children in need has decreased by 14% compared with the period just before the start of the intervention. In almost 17,000 of these families, one or more adults had succeeded in moving into continuous employment. The programme has ensured that work, and the transformative effects that it can bring to a whole family, is never off the table.

Finally, we can all see that local authorities’ work in building strong communities that thrive and move forward together is beneficial not just to them, but to wider society as well. This work, as the hon. Gentleman mentioned, is absolutely vital. Strong communities are cohesive. It is with that in mind that the Government have announced a £19 million fund to help to ease pressures on local services resulting from recent migration. The fund has already committed £484,000 to Barnsley Council, partly to support activities to understand communities’ concerns and to help to address them.

Strong communities need to be connected. The roads that our constituents travel on every day form a key part of our daily experiences. That was why my right hon. Friend the Chancellor announced yesterday that £420 million will be made available this year for local authorities to fix potholes and carry out other road repairs, which will ensure safer and better roads across our communities. Strong communities also need vibrant high streets to bring us together and to ensure that our towns have beating hearts. That is why the Government have just announced a £675 million fund to support high streets, which local authorities will take the lead in developing.

Lastly, strong communities nurture and celebrate their open green spaces—providing sanctuary from the busy world, enabling us to come together to keep fit and healthy, and helping to make our areas more pleasant places to live. The pocket parks fund, which was launched two years ago, has helped to transform neglected and derelict spaces. It has led to the creation of more than 80 new green spaces for communities to enjoy in urban areas across the country. I am delighted that Barnsley is home to one of these pocket parks—the community pocket park at Bradford Forster Square. I am also pleased to say that the Government intend to build on this success with a second round of funding for pocket parks, which will provide access to new smaller parks and vital green spaces for our communities in areas where there are limited opportunities today.

The hon. Gentleman asked a specific question about devolution. He will know that I am not the Minister with particular responsibility for that, so I hope he will bear with me when I cannot give him the exact response he wants. My understanding is that the Government and the Minister responsible are considering the matter of One Yorkshire devolution, which the hon. Gentleman rightly identifies as being of some personal interest to me. There is no fixed timeframe for a response that I am aware of, but if there is one, I will be sure to write to him in short order.

On the hon. Gentleman’s broader question about the devolution framework, my understanding is that the Minister with responsibility for devolution and the northern powerhouse will publish that towards the end of this year. However, again, if the hon. Gentleman will bear with me, I will write to him when I can get the exact date from my colleague, if one has been published.

On that note, I agree wholeheartedly with the thrust of the hon. Gentleman’s argument about devolving power to local people. He is obviously an exponent of that, and I hope he will agree that this Government have undertaken an ambitious and significant devolution programme to bring government closer to people up and down this country. I think that we are all excited to see that programme continue.

In conclusion, I thank the hon. Gentleman again for calling this important debate. It is a real privilege for me to have this job and to champion local government in Westminster. Whether it is driving economic growth, caring for the most vulnerable or building stronger communities, local councils in Barnsley, throughout the Sheffield city region and across the country do an important and incredible job. I am grateful for their dedication, and I will continue to ensure that their voice is heard and that they get the support they need and deserve.

Question put and agreed to.

Local Government Funding: Merseyside

Rishi Sunak Excerpts

Tuesday 30th October 2018 Westminster Hall

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

It is a pleasure to serve under your chairmanship, Mr Hollobone.

I start by congratulating the hon. Member for Garston and Halewood (Maria Eagle) on securing this debate and it is good to see a strong turnout from Merseyside colleagues as well.

It did not sound like the hon. Lady was aware that in fact my very first visit as Minister for Local Government was indeed to Liverpool, both to see the City Council and to work with the troubled families programme, and I was delighted to accept an invitation from the hon. Member for Liverpool, Wavertree (Luciana Berger) shortly after being appointed to this particular role.

Being relatively new to this role, I am the first to say that local authorities have done a commendable job over the past few years, maintaining a strong level of services in the face of rising demand. In responding to the specific points that the hon. Member for Garston and Halewood made, I will first outline my broad vision for the role of local government, which consists of three particular areas: first, to drive economic growth; secondly, to help the most vulnerable in our society; and, lastly, to build strong communities. I will take each of these areas in turn, specifically in relation to the points that have been made by hon. Members about Merseyside.

I will start with the economics. In this financial year, councils on Merseyside— including Sefton, Knowsley, Liverpool, Wirral, Halton and St Helens—had an aggregated core spending power of around £1.3 billion. Core spending power is the standard measure of a local authority’s key financial resources. It includes money from the central Government grant, which is typically known as the revenue support grant, but also the money raised locally from council tax, the money raised through the business rates system, and further specific grants from central Government for things such as adult social care, the better care programme and, indeed, the new homes bonus.

Across Merseyside, core spending power is up every single year in this four-year spending period and up 2% this year as well.

[Maria Eagle]

I received a parliamentary answer from a colleague of the Minister about police spending, which said that over the last year £5.1 million of extra money had been given to enable the police to tackle the very serious crime that my hon. Friends the Members for Liverpool, Wavertree (Luciana Berger) and for Wallasey (Ms Eagle) referred to. In fact, that money came from the Government simply allowing a precept increase; it all came from hard-pressed council tax payers in Liverpool and not one penny piece came from the Government. How can the Minister justify the ridiculous figures that he is using, which hide the Government’s contribution by referring to everything else that can be raised in any other way? That is a way of abdicating responsibility.

[Rishi Sunak]

I totally reject the suggestion of hiding. It would be ridiculous to look at any local authority’s financial resources without considering the various ways in which such an authority funds itself. I am delighted that the hon. Lady is focused on keeping council tax low. Indeed, the Government have ensured that council tax today is lower in real terms, across the country, than it was in 2010. We have heard various suggestions from Labour Members about doubling council tax, which is something I assume the hon. Lady, being on the side of hard-working taxpayers like us, would reject.

The idea that the funding formulas do not take account of deprivation or the differing ability of areas to raise council tax is totally erroneous. For example, when the adult social care precept was introduced, it was understood that different areas would raise different amounts from it, which is why in the incremental billions of pounds that the Government have injected into the social care system directly through the better care fund there is an equalising measure to take that into account. That is exactly why, today, the most deprived authorities have a core spending power per household—taking into account all those things, council tax included—that is 23% higher than that of richer authorities. Indeed, that is why areas with larger council tax bases provide more of their area’s resources from council tax; Merseyside provides less than half of the amount those areas do, because the council tax base in Liverpool is that much lower. It is totally wrong to suggest that that is not taken into account.

I think it was alleged that I, or the Government, had removed deprivation from funding formulas. I can categorically say that I have not removed it from any funding formula. We are in a root and branch review of how local government is funded. We are in the midst of various consultations and I would be delighted to have hon. Members’ suggestions.

[Mr Howarth]

If that is the case, will the Minister explain why Knowsley, which is one of the most socially deprived parts of the UK, has had a £100 million cut in its grant? His figures just do not add up.

[Rishi Sunak]

I can tell the right hon. Gentleman that Knowsley’s core spending power per household is about 20-something per cent. higher than the average for a similar metropolitan authority, which takes into account exactly his point. He talked about the fair funding review and, as I said, that is exactly where all the issues will be considered, ensuring that deprivation or, indeed, multiple other factors, are taken into account in the new funding formula.

[Ms Angela Eagle]

Will the Minister give way?

[Rishi Sunak]

No. I will try to make some progress.

When it comes to that point, I am convinced and confident that those factors are taken into account. Indeed, as we restructure the fair funding formula, they will continue to be taken into account fairly and accurately.

Beyond Government grants, driving economic growth locally is the only sustainable way to ensure that we can raise the money we need to fund our services, and business rates retention is one such opportunity. I am delighted, and I am sure hon. Members here will join me in recognising, that Merseyside is in the fortunate position of being a 100% business rates retention area, which means that the local councils keep all the growth they generate from those rates. That is not something that is enjoyed by every local authority—[Interruption.]

[Mr Philip Hollobone (in the Chair)]

Order. We do not really want sledging in the Chamber. The hon. Member for Wallasey (Ms Eagle) is sitting opposite the Minister and he must be heard with courtesy. Her side of the House was heard with courtesy during all its contributions. I know that the hon. Lady’s attempt to intervene was not accepted by the Minister, but she could have another go. However, she is more likely to be successful if she does not keep shouting across the Chamber.

[Rishi Sunak]

Thank you, Mr Hollobone. I think the hon. Lady was being snide about the fact that Merseyside is a business rates retention pilot. I am sure that the £54 million that Merseyside will keep this year in additional funding as a result of the pilot is nothing to be snide about, and will make an enormous difference on the ground, helping the people I know she cares about. Many other local authorities across the country would be happy to be one of the pilot areas, so if she thinks that Merseyside would rather not be one and would give up the opportunity to others, I would be happy to talk to her afterwards.

[Jim McMahon]

Will the Minister give way?

[Rishi Sunak]

I will try to make some progress.

Business rates retention is not the only incentive for local growth, as it sits alongside the other support the Government give to local authorities’ wider ambitions through local growth deals. For example, £2 million has been invested to create the first dedicated digital skills academy in the UK, at the City of Liverpool College, and more than £13 million has been invested in a highway infrastructure scheme comprising a series of essential and integrated improvements along the A565 corridor. In sum, the Government strongly support Merseyside’s economic growth, whether through direct investment or business rates retention, and thus enable it to fund services over the years to come.

[Dame Louise Ellman]

Will the Minister give way?

[Rishi Sunak]

I will make some progress.

The second vision I outlined, which is undeniably one of the most crucial roles for local government, is to continue to help the most vulnerable in our society. It is local authorities, as we have heard, that support the elderly, the disabled and our children in need, and we owe an enormous debt of gratitude to councils for their incredible work. I am delighted that the Government back local authorities to carry out those vital duties. Last year, the Budget provided an additional £2 billion for social care. Earlier this year, another £240 million was announced for social care winter funding, and in the Budget yesterday the Chancellor announced that a further £650 million will be provided for care services next year.

In contrast to what we have heard, the flexibility to use the funding for things such as children’s services is something that local authorities have specifically asked for. They will have the flexibility in each local area to use the funding for different care services, rather than its use being dictated by central Government. I would have thought that all Members appreciated their local areas having such flexibility to make the best use of the money, in the way they see fit.

I am pleased to say that that increased investment and better working between the NHS and local government is paying dividends on the ground. We have seen social care free up 949 beds a day since the peak two years ago—a 39% reduction in social care delayed transfers of care. In Merseyside, progress has been seen particularly in St Helens, and I commend the local authority on reducing such transfers by 72% since the February 2017 peak.

I have mentioned the troubled families programme, which is making amazing strides to support our society’s most vulnerable families. When I visited the Clubmoor children’s centre in Liverpool, it was a privilege to talk to several of the families participating and to see the life-changing work at first hand. I am proud to say that the Government have invested £1 billion in the programme over this spending cycle, with 130,000 families nationally achieving significant and sustained progress against the goals they have been set. In almost 17,000 of the families, one or more of the adults has moved into work, and the families I spoke to told me that that was central to their ambitions.

Across Merseyside, 10,000 families are being helped with more than £20 million of funding, and I pay tribute to Liverpool City Council in particular for doing a very good job, working with early help assessments. We heard from the hon. Member for Halton (Derek Twigg) about the importance of early intervention. Referrals to children’s services in Liverpool were down 3% in the most recent year—

[Mr Howarth]

On a point of order Mr Hollobone. I want to place it on record that, had he been here, my hon. Friend the Member for Halton (Derek Twigg) would have made a significant contribution, but he is, in fact, not here.

[Mr Philip Hollobone (in the Chair)]

Thank you for that point of clarification. It will be on the record.

[Rishi Sunak]

I apologise to the hon. Member for Liverpool, West Derby (Stephen Twigg), who mentioned the importance of early intervention. I thank the right hon. Gentleman for the point of order. That great work in the last year builds on three successive years of reductions in referrals to children’s services.

We talked about the importance of local authorities in building strong communities and the Government back that, whether through the funds for Liverpool City Council from the controlling migration fund, ensuring that communities are connected through the roads fund that was announced yesterday, or bringing high streets together and creating pocket parks—something that Liverpool has benefited from. Whether through building economic growth, supporting communities or helping the vulnerable, the Government are determined to recognise the role that local government plays and to back it with what it needs.

Rating (Property in Common Occupation) and Council Tax (Empty Dwellings) Bill

Rishi Sunak Excerpts

Tuesday 16th October 2018 Commons Chamber

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

I beg to move, That the House agrees with Lords amendment 1.

It gives me great pleasure to speak in support of the amendment. As previously discussed in this House, this Bill takes forward two important measures that featured in the Chancellor’s Budget speech of last November. The first fulfils the Government’s promise to end the so-called “staircase tax”, giving welcome relief to businesses. The second, which is the subject of our deliberations today, addresses the issue of long-term empty homes, doubling to 100% the council tax premium that local authorities can charge on homes that have been empty for two years or more.

[Neil O'Brien (Harborough) (Con)]

Is the Minister aware that in my constituency the number of empty properties has been driven down by a third by the existing empty homes premium? I am delighted to see this measure, because it will reduce the number of empty homes in my constituency, which is currently at 400—that represents a village the size of Great Bowden. That means far less pressure on development and a better use of our housing stock.

[Rishi Sunak]

I thank my hon. Friend for that intervention and for his support for the measures in this Bill. I also pay tribute to his local authority for the sterling work it has clearly done, as have so many others across the country, in tackling this blight of empty homes. I am particularly grateful to him, because I know he has another housing-related debate coming up in short order and so I am privileged that he has made time to speak in support of this measure. I wish him well in his further debate later this afternoon.

[Simon Hoare (North Dorset) (Con)]

My hon. Friend is promoting a very welcome measure. Is he able to give the House any indication of the quantum of properties that lie vacant for more than two years and would therefore accrue this additional council tax? Will he add some indication of the potential uplift in revenue to our local authorities, which certainly need it?

--- Later in debate ---

[Rishi Sunak]

If my hon. Friend will bear with me, I will be grateful for that little bit of patience and I will go over all the facts and figures of the current policy later in my speech. I hope he will find what he is looking for in that section. If he wants to come back to me for more detail at that point, I would very much welcome a further intervention.

[Simon Hoare]

I am not known for my patience.

[Mr Deputy Speaker]

You also should not test ours. [Laughter.]

[Rishi Sunak]

As my hon. Friend mentioned, this measure will strengthen the incentive for owners to bring long-term empty properties back into use. Hon. Members will recall that this Bill received widespread support when it was considered by the House earlier this year. I am very pleased to say that that cross-party support continued through the debates in the other place.

Before we turn to the detail of the amendment, I thought it would be helpful to recap the purpose of this clause and the background to the policy in general. Our housing market is not working as we would want. Young people are often struggling to get on to the property ladder—struggling to enjoy the same opportunities as their parents and grandparents.

[Rachel Maclean (Redditch) (Con)]

I absolutely support the measures the Minister is putting forward. Does he agree that in a town such as Redditch, which is growing rapidly, we need more housing? We struggle to expand, however, because we just have not got the room. It is therefore right that we are bringing more empty homes back into use to meet the housing need of our young people in our growing town.

[Rishi Sunak]

I thank my hon. Friend for her intervention. She is absolutely right to say that the Government are doing many things to increase the supply of new housing, and I will come on to discuss those, but that we must also do better with the housing we already have. That is what this measure will enable us to do.

Today, the average house price in England is almost eight times the average income, whereas it was four times the average income in 1999. Costs are also rising for private renters, who spend, on average, more than a third of their household income on rent. The Government are committed to boosting housing supply to ensure that hard-working people have a secure place to call home. The Government and the tireless new Housing Minister, my hon. Friend the Member for North West Hampshire (Kit Malthouse), are taking end-to-end action across the entire housing system to address these issues, releasing more land for homes where people want to live, and building them faster and cheaper.

[David Linden (Glasgow East) (SNP)]

The UK is going through a housing crisis. Does the Minister accept that one of the best ways of tackling the social housing crisis is to abolish the right to buy?

[Rishi Sunak]

The right to buy has helped thousands of young people, first-time buyers, up and down this country to get on to the housing ladder. I have seen the measure transform people’s lives in my constituency, as I am sure many Members have in theirs. It supports what this Government and the Conservative party stand for—allowing people to fulfil their dream of owning their own home.

[Eddie Hughes (Walsall North) (Con)]

Obviously, Mr Deputy Speaker, I am concerned about your latitude in allowing us to venture slightly off the topic—

[Eddie Hughes]

Indeed, but I could not stay in my seat having heard that. Just this summer, the Government announced voluntary right to buy across the west midlands, which is a valuable opportunity and has been heavily subscribed. Members of the public in those homes clearly think it is a good idea.

[Rishi Sunak]

As always, my hon. Friend puts it well. He has the pulse of the people in his constituency; he knows what they want. We serve to fulfil their aspirations, and I am delighted that the interest in the new scheme has been so high. I look forward to seeing the fruits of that and welcoming all those new people into homes that they will own for the first time.

This set of reforms is putting us on track to see an average of 300,000 homes delivered per year by the mid-2020s, and we are making strong progress. Last year, 217,000 new homes were delivered in England, which is the highest number seen in all but one of the past 30 years. In 2017, the number of first-time buyers stood at about 365,000, which is the highest level in more than a decade.

Building new homes is undoubtedly a fundamental part of improving our housing market, but, as we heard from my hon. Friend the Member for Redditch (Rachel Maclean), we must also make more efficient use of our existing housing stock.

[Layla Moran (Oxford West and Abingdon) (LD)]

Does the Minister agree that in addition to all the measures in the Bill, the Government must get their own house in order? Some 10,000 Ministry of Defence homes are left empty; does he not think it is slightly ironic that we are discussing this issue when the Government have so many homes that are not being put to use?

[Rishi Sunak]

I am not aware of the precise statistics for the Ministry of Defence, but in general we encourage all organisations and private owners to bring empty homes back into use. The Bill will apply to all homes. As far as I am aware, there is no statutory exemption for MOD housing, but I am happy to look into that and write back to the hon. Lady. As an MP who represents a constituency with a heavy military presence, with Catterick garrison on my patch, I know well the issues relating to serving personnel and their families having access to good-quality accommodation. I hope that there are few empty homes in my area and that they are all being well utilised. I thank the hon. Lady for bringing that issue to my attention.

It cannot be right that while many households are waiting to find a house to call home, thousands of properties stand empty, some for many years. Beyond that, homes left empty for the long term can often be a blight on a neighbourhood, as well as sites of crime and antisocial behaviour. I am pleased to say that the Government’s record in this policy area is strong. We have ensured that local authorities have powers and strong incentives to bring empty homes back into use.

[Graham P. Jones (Hyndburn) (Lab)]

The Minister says that he is empowering local authorities, but the Government refuse to have a register of landlords. An enormous amount of paperwork is required for local authorities to chase landlords and get these backyards into use, or whatever the problem is that he says his Government are happy to see resolved. Will the Government help local authorities, as he suggests, and introduce a national register of landlords so that we can take the action that he describes?

[Rishi Sunak]

I will be careful not to stray too far from my brief, but the Under-Secretary of State for Housing, Communities and Local Government, my hon. Friend the Member for South Derbyshire (Mrs Wheeler), who has responsibility for housing and homelessness, is actively looking into appropriate regulation in the private rented sector and the potential introduction of a single housing ombudsman, among other things. I should point out that the Government introduced measures to tackle rogue landlords and, indeed, created a rogue landlord database and a new set of penalties to tackle the issue. I hope that the hon. Gentleman finds some comfort in that and will wait for my colleague’s findings on the general regulation of the private rented sector.

Before 2013, councils could not collect any council tax from properties that were empty for up to six months, so the coalition Government at the time decided to support councils and ensure that they had the freedom, should they want it, to charge the full rate of council tax on such properties. That same year, the Government enabled local authorities to charge a council tax premium of up to 50% on long-term empty homes.

[Alex Burghart (Brentwood and Ongar) (Con)]

I strongly welcome the Minister’s comments. There are a number of empty properties in my constituency that I would very much like to see come back on the market. Will the Minister tell us what effect the Government’s action has had in this policy area? By what proportion has the number of empty homes come down since the Government made those changes?

[Rishi Sunak]

I am pleased to tell my hon. Friend that the powers that were introduced in 2013 have been taken up by around 90% of all local authorities, all but three of which applied the full 50% rate. I am glad to tell him that the number of long-term empty properties subject to a premium has fallen by 9% among those councils that have used the power every year since 2013.

There are carrots as well as sticks. Our new homes bonus scheme gives local authorities the same financial reward for bringing an empty home back into use as for building a new home. We have allocated £7 billion in new homes bonus payments to local authorities since 2011. Following those interventions, the number of properties that are empty for six months or longer is down by a third since 2010, from 300,000 to just over 200,000.

It is worth touching on one or two local authorities that have done a particularly impressive job of tackling the scourge of long-term empty properties in their areas. Several years ago, Bolton had close to 3,000 empty properties, but now has fewer than half that number. Bolton Council offered interest-free loans to bring a long-term empty property up to a suitable standard for rental. The council has also introduced an online matchmaker scheme that matches empty-home owners with potential buyers and offers advice about how to rent out properties through the Bolton landlord accreditation scheme. Between March and October of last year alone, more than 300 long-term empty properties were brought back into use. The council has recently joined forces with Bolton College and the University of Bolton on a new pilot project to bring a rundown empty house back into use.

Kent is another example of a local authority on the cutting edge of tackling this issue. Several years ago, Kent County Council launched the “No Use Empty” programme to bring empty homes back into use. Loans available through the scheme are repayable over five years and then recycled for further use. The scheme has now administered loans totalling almost £20 million, unlocking investment from owners totalling a further £20 million, and has returned over 5,000 empty homes back into use over the past decade. Notably, the programme ran a £3 million project to deliver new homes on the site of a former pub in Herne Bay that had been empty for five years following a fire. The pub’s conversion was undertaken in partnership with a local developer, which bought the property and applied for a loan from the “No Use Empty” fund to unlock the redevelopment. The project has now delivered 14 new apartments.

[Rachel Maclean]

I am delighted to hear of the good work that is going on in Bolton and Kent, but I am obviously much more interested in what is going in Worcestershire and in my local area. Will the Minister go on to discuss how my council can learn from the excellent examples that he describes?

[Rishi Sunak]

I am always willing to learn from and listen to local authorities up and down the country. My hon. Friend and I have corresponded on various issues that have been brought to my attention in Worcestershire, and it will always be a pleasure to meet her local authority. She could bring officials here or I could go and visit them.

[Sir Roger Gale (North Thanet) (Con)]

As my hon. Friend has been kind enough to pay tribute to the development in Herne Bay, which is part of the magnificent constituency that I represent, perhaps he would like to come and see the finished development for himself.

[Rishi Sunak]

I can see my diary filling up rapidly as the debate progresses, but I would be delighted to visit my hon. Friend and the successful redevelopment. Indeed, I will perhaps mention it to my hon. Friend the Housing Minister for when he is next in the area.

[Neil O’Brien]

I promise not to invite the Minister to my constituency—although I stress that he is always very welcome there. He tempted me to intervene with his mention of the pub that was brought back into use through the “No Use Empty” programme. Does he agree that this legislation is an example of a wider point that needs to be discussed: the reuse of our existing building stock more generally? Permitted development rights and other things that make it easier to reuse older buildings have taken the share of new properties coming on to the market through change of use from about 12% of supply to 20% of supply over the past couple of years. Does he agree that that is saving a huge amount of countryside?

[Rishi Sunak]

As ever, my hon. Friend makes an insightful point. He has great experience in this area. Indeed, he has published proposals relating specifically to this area, on which my hon. Friend the Housing Minister is engaging with him. More intelligent use of development rights and our existing stock can help play a part in solving the housing market problems that we see.

[Graham P. Jones]

I am interested in what the Minister says, and do not disagree with it, but I will say the same thing that I said when this legislation came around last time. It is great to talk about Bolton, a unitary authority, and Kent may have a progressive county council—I do not know—but my local district, Accrington District Council, only receives 15% of the precept with 72% going to the shire authority which, unlike Bolton, is not interested in reinvesting. When will we have a change in the law that allows district authorities to retain 100% of the extra precept on the council tax?

[Rishi Sunak]

Opening up a conversation about the redistribution of council tax is probably beyond the scope of this measure, but we encourage co-operation between local authorities, and there are good examples of that from across the country. Indeed, business rates retention is now working deliberately to incentivise local authorities across tiers to partner together, and we have found that that has unlocked conversations beyond the pooling of business rates to strategic co-operation on other matters, such as housing.

[Graham P. Jones]

Will the Minister come to Lancashire to encourage Lancashire County Council to give money back to Hyndburn and Chorley?

[Rishi Sunak]

I am always happy to visit all local authorities, and many of the authorities in Lancashire have submitted proposals to be in the upcoming 75% business rates retention pilots. I am pleased to see lots of local authorities in Lancashire working together, and I look forward to reading that application with interest in the light of those comments.

As we have seen, different areas, from Redditch to Lancashire, will have different housing needs and different numbers of long-term-empty homes, so it is absolutely right that decisions on whether to apply a premium, and the exact rate to charge, should be taken at local level, as they were before. Councils are acutely aware of the needs and demands of their areas. We recognise that local authorities will want to reflect carefully on the local housing market when deciding whether to issue a determination—for example, where a homeowner is struggling to rent or sell a property in a challenging market. We are clear that the premium should not be used to penalise owners of homes that are genuinely on the market for rent or sale.

[Kevin Hollinrake (Thirsk and Malton) (Con)]

I draw the House’s attention to my entry in the Register of Members’ Financial Interests. I also put on the record my support for these proposals. At a time of housing crisis, it is incredibly important that we bring more homes back into use, which is exactly what this measure will do. Will the Minister set out measures for similar situations in which retail premises are unused? Filey, in my constituency, has a shop—I am sorry, Mr Deputy Speaker; I am about to conclude—that has been disused for some time and is a blight on its street. What can the local authority do about that?

[Rishi Sunak]

It is always a pleasure to take an intervention from my constituency neighbour, who represents what is without doubt the second most beautiful part of the country. I must admit that I am not familiar with that particular shop in Filey, but I will be delighted to chat with my hon. Friend afterwards, to make sure that the full resources of the Department can supply him with as many options as he can supply to the local authority in question.

[Eddie Hughes]

Does my hon. Friend have any thoughts on empty dwelling management orders, which councils can use to take possession of a property that has been left vacant for six months or more? I understand that those are rarely used by councils in England.

[Rishi Sunak]

My hon. Friend is absolutely right that empty dwelling management orders exist as a tool for councils to take control of long-term empty properties that cause a social nuisance. I do not have the exact figures to hand, but he is right that those orders are not extensively used. However, they are a measure that local authorities should be aware of. The orders are a tool at local authorities’ disposal and are one of the various measures that they can use to tackle this particular problem. I thank him for raising that option here today.

[Bob Blackman (Harrow East) (Con)]

Does the Minister agree that it is vital that landlords bring properties back into use? They should not be penalised while carrying out genuine work to bring those properties back into use, but equally they should not take an extended period and say that they are doing work when no work is actually going on.

[Rishi Sunak]

I thank my hon. Friend not only for his intervention but for all his work on the Bill, as both an individual and in his role on the Housing, Communities and Local Government Committee. I am grateful for all his comments as we debated the Bill during its earlier stages. He is absolutely right, and the Government published guidance to that end in 2013—when the original premium was introduced—reminding local authorities to take into account the specific reasons for a property being empty. Hon. Members may wish to note that the provision we are discussing will not bring any additional properties within the scope of the premium; only properties that would already have been potentially liable might be affected by the higher premium.

On the flexibility and discretion raised by my hon. Friend, no property covered by an existing statutory council tax exemption can be liable for the empty homes premium. For example, exemptions are already in place for homes that are empty owing to the council tax payer living in armed forces accommodation for job-related purposes, or for annexes that are used as part of a main property. Furthermore, the council tax system already provides specific statutory exemptions for properties left empty for a specific purpose, such as when a person goes into care. On probate, such properties, where left empty, are exempt from council tax for up to six months after the granting of probate or after letters of administration have been signed.

I also say to my hon. Friend that section 13A of the Local Government Finance Act 1992 gives billing authorities a wide power to reduce the council tax that a person or group of people is liable to pay. That can be reduced to such an extent as the billing authority sees fit. The power can be applied to situations pertaining to the status of a dwelling or the category of a person, and can be used in cases of hardship, fire or flooding. Together with the guidance that I will speak about more broadly in a moment, I hope that this reassures all hon. Members that councils and local authorities will have the flexibility and discretion that they need to treat each situation on a case-by-case basis.

Before I turn to the Lords amendment, I will recap some of the statistics on the operation of the current policy to ensure that everyone has the facts to hand as we reach our deliberations. As I said earlier, 90% of billing authorities have applied the empty homes premium, to around 61,000 homes—that we have data for—in the last year. All but three of those councils did so using the maximum 50% rate. Of the remaining 10% of councils that were not applying the premium, more and more are now starting to. We estimate that the empty homes premium generated around £40 million in the last year for local authorities, when we take into account individual local authority collection rates.

[Alex Burghart]

I sorry to ask the Minister this question; it is ignorance on my part. How do councils ascertain that properties are empty? Might we need to give councils additional powers so that they can identify which properties are truly empty?

[Rishi Sunak]

That is a very thoughtful question. Every council takes a slightly different approach. An interesting method is to offer a temporary discount on empty homes for a short period of time, providing a financial incentive for homeowners to register their home as empty. Down the line, the council then has a list of properties that might become long-term empty. Of course, councils also require people to fill out forms, and there are civil and criminal penalties for filling them out with false or misleading information. Indeed, the authority also has other intelligence from the various other ways in which it touches an individual property. Together, councils can build up a picture of which homes are long-term empty, and apply the appropriate premium as and when necessary.

Hon. Members may be interested to know that the proportion of dwelling stock across the country that has been empty for six months or longer is about 0.85%, with the lowest numbers being found in London and the south-east, and the highest being found in the north-east and the north-west.

[Rachel Maclean]

I thank the Minister for giving way again. One issue that has been brought to my attention as a local MP is the time that it can take the council to turn around the voids when one tenant leaves and another comes on stream. Will this provision affect the council’s housing stock? I would be grateful for that clarification.

[Rishi Sunak]

My hon. Friend raises a good point. Council housing is governed by a slightly different set of regulations, so it will not be affected by this particular measure. However, in general she is right to highlight that all local and public authorities have a duty to bring empty homes back into use as quickly as possible for the benefit of all potential residents.

I now turn to the Lords amendment, which makes a helpful improvement to the Bill. I am grateful to the noble Lady Pinnock, the noble Lord Shipley and the noble Lord Kennedy, who originally tabled this amendment in a cross-party spirit. I also thank the noble lords and ladies in the other place for all their contributions on the Bill. Having attended the debates and read through the Committee transcripts, I am grateful for the valuable experience and insight that all those who commented on the Bill brought to bear, as this has helped to inform how we have thought about the legislation. I am glad that there was wide cross-party support in the other place for this Bill and this measure in particular.

This so-called escalator amendment will allow local authorities to charge premiums of up to 200% on homes empty for at least five years and less than 10 years, and to charge premiums of up to 300% on homes empty for at least 10 years. I am sure that hon. Members will agree that the amendment is entirely in keeping with the spirit of the legislation, which is to strengthen local authorities’ existing powers to tackle empty homes for the benefit of their communities.

[Eddie Hughes]

I completely agree that it is in keeping with this legislation. It seems crazy that in this day and age, when we have people who are desperate for a home, there might be up to 11,000 properties in England that have been vacant for over 10 years.

[Rishi Sunak]

rose—

[Mr Deputy Speaker (Sir Lindsay Hoyle)]

Order. The Minister has now taken up 50% of the time. It is only an hour’s debate, so I am concerned. We have a lot of Members in the Chamber, and I hope that he is not trying to take up all the time.

[Rishi Sunak]

Thank you, Mr Deputy Speaker. I have tried to take any interventions that have come my way from all parts of the House, but I will take your steer and try to reach my conclusion in a slightly more swift fashion, if that will help.

I am sure, as I said, that hon. Members will agree that this amendment is in keeping with the spirit of the legislation and will enable local authorities to do more. However, we are not proposing to alter the provision on homes empty for at least two years and less than five years, as we have discussed previously.

[Layla Moran]

I thank the Minister for paying tribute to my colleagues in the House of Lords who led on this amendment. Does he agree that another issue is land banking? It is all very well if homes are being brought back into use, but we also have an issue of land that is often kept for a very long time. What does he intend to do about that?

[Rishi Sunak]

I agree that land banking should be looked into. The hon. Lady will be aware that my hon. Friend the Member for North Dorset (Simon Hoare) is currently looking at that issue. Interim findings have been published and more findings will be coming out shortly. I hope that she will be happy to wait for the findings of those reports.

Nor are we proposing to change any other arrangements for charging premiums. It will rightly remain a matter for local authorities individually to decide whether and what premium to charge. In making these decisions, local authorities should of course consider local circumstances, as we have discussed, as well as the guidance issued by the Government.

It is right that we target particularly the homes that are empty for excessively long periods in this way. To be sure, they are likely to be few in number— potentially 11,000, as we heard from my hon. Friend the Member for Walsall North (Eddie Hughes)—but where they exist, they can indeed be a nuisance and a blight on their community. Such properties may even become sites of crime and antisocial behaviour. It is right that local authorities are equipped with greater powers in these difficult cases, where a 100% premium may be ineffective. We are proposing that these higher premiums come into effect slightly later than the original measure, which was announced at last year’s autumn Budget. This will give homeowners sufficient notice of the change. The 200% premiums will come into effect from 1 April 2020, and the 300% premiums a year later. The original proposal, of which people have had good notice, will come into effect from 1 April 2019, as planned.

We recognise the crucial importance of ensuring that premiums are applied fairly. That is why in 2013 the Government published guidance reminding local authorities to take into account the specific reasons a local property is empty, as indeed we heard from my hon. Friend the Member for Harrow East (Bob Blackman). In the light of this amendment, I can confirm that the Government will take a fresh look at the guidance with the aim of publishing revised guidance ahead of the introduction of the 200% and 300% premiums. This refreshed guidance will be subject to consultation, of course, and we will welcome the opportunity to benefit from the experience of local authorities, council tax payers and others when the time comes. In particular, we are keen to ensure that the guidance clarifies that premiums must be applied with due consideration to issues facing low-demand areas and cases of hardship. We expect to revisit the wording of the guidance to set out clearly the Government’s expectation that premiums are not applied where homeowners can demonstrate that their properties are genuinely on the market for rent or sale and appropriately priced.

Another area we expect to consider is cases where homeowners, as my hon. Friend the Member for Harrow East noted, are struggling to complete or afford renovations that are necessary before the property can be occupied or sold on and where they can demonstrate progress and hardship.

I am delighted to bring forward this amendment, which has been termed the escalator amendment. I am grateful to all colleagues, the Select Committee and partners in the rating agencies for helping to get this amendment and this Bill to the House. By strengthening the incentive for owners of long-term empty properties to bring them back into use, this amendment will surely come as good news for local government, for families seeking a place to live and for the affected local communities as a whole. I commend it to the House.

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

It takes a very good education to be able to talk at length without saying much at all.

We are at the end of a process as we reflect on the Lords amendment, which I should say is entirely in line with Labour’s manifesto. If anything, it could have gone much further. While the Lords have suggested a 10-year period regarding the charge on empty properties, the Labour manifesto proposed that after a year, because we recognise not only that there are lots of people on the housing waiting list and many people who are homeless—sofa-surfing and on the streets—but that these properties are often a blight on their local communities. It is right that the owners of the properties are held to account, and a charge is one way of doing so. Of course we welcome the amendment, but we would have liked it to go much further.

We have heard in Committee and in the Chamber that the staircase tax was about listening to the interests of business and how the business rates system was adversely affecting them, but it is slightly odd that of all the issues that businesses are raising when it comes to business rates, this is the sole one that has been picked out for this place to address. There is absolutely nothing about the condition of our high streets and town centres, and nothing about business rates’ impact on our pubs. There is no recognition that while we have rural rate relief for the last pub in a village, council estates are not given the same luxury for the last pub on the estate. Businesses are raising plenty of important issues.

Fundamentally, we see with rates the same thing that we are seeing with council tax: we are incrementally putting more and more pressure on what is a diminishing resource in many places. We have seen that with the revaluation, where the value shifted to London and the south-east, and certainly away from my region. The Conservative party has been in power for 10 years, through the coalition and more recently with the support of the Democratic Unionist party, and the housing shame in this country is a national scandal.

Tenant Fees Bill

Rishi Sunak Excerpts

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

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

I beg to move amendment 5, page 2, line 17, after “(c),” insert—

“() requires the person to do any of those things—

(i) as a result of an act or default of the person relating to such a tenancy or housing let under it, and

(ii) otherwise than pursuant to, or for the breach of, a provision of a tenancy agreement,”

This amendment means that Clause 1 prohibits a landlord from requiring a tenant or other relevant person to make a prohibited payment or take other action within the clause in the event of an act or default of the tenant where the requirement is imposed otherwise than by the tenancy agreement.

[Madam Deputy Speaker (Dame Eleanor Laing)]

With this it will be convenient to discuss the following:

Government amendments 6 and 7.

Amendment 1, in clause 8, page 5, line 13 leave out “£5,000” and insert “£30,000”.

Amendment 2,  page 5, line 16, leave out from “exceed” to end of line 17 and insert “£30,000”.

Government amendments 8 to 23.

Amendment 4, in schedule 1, page 23, line 29, at end insert—

“Letting agent charges

3A (1) A payment to a letting agent or third party for the establishment or renewal of a tenancy is a permitted payment.

(2) In this section, a payment for the establishment or renewal of a tenancy may include, but is not limited to, fees for—

(a) administrative costs,

(b) credit checks,

(c) tenancy renewal fees, and

(d) inventory charges.

(3) The total payment under this section must not exceed £300.”

This amendment would allow letting agents to charge fees for various services connected with the establishment or renewal of a tenancy but would cap such fees at £300.

Amendment 3, page 23, line 30, leave out paragraph 4 and insert—

“Payment of Landlord or Agent expenses

4 (1) A payment that a tenant is required to make to cover a landlord’s or agent’s reasonable loss arising from a breach of a fair condition of the tenancy agreement by the tenant is a permitted payment.

(2) In this paragraph a “fair condition” is one that relates to—

(a) the replacement cost of a lost key or security device, or

(b) payment of the amount of late rent payments and interest relating to those payments

arising under or in connection with the tenancy.

(3) Paragraph 4(2)(a) does not apply if the payment required—

(a) pertains to rent that was paid within 14 days of the date due under the tenancy agreement, or

(b) exceeds the interest at Bank of England base rate on the rent from the day the rent was due to the day it was paid.

(4) Paragraph 4(2)(b) does not apply if the condition in the tenancy agreement prescribes a fixed fee to be paid for each breach of this term.”

This amendment would remove default fees as a permitted payment and permit the payment of landlord and agent expenses where there is a clear cost due to a tenant fault.

Government amendments 24 to 48.

[Rishi Sunak]

I will speak to all the Government amendments but, for ease, I will take them in a slightly different order from the one in which they have been set out.

I welcome the Under-Secretary of State for Housing, Communities and Local Government, my hon. Friend the Member for South Derbyshire (Mrs Wheeler), back to her place on the Front Bench. Everything we are discussing today is built on the foundations of her incredible diligence in preparing the Bill for us to consider in Committee, where I enjoyed constructive discussions with my opposite number, the hon. Member for Great Grimsby (Melanie Onn). I am delighted that my hon. Friend is back with us to help us to move the Bill through its final stages.

Amendments 5 and 6 will ensure that landlords and agents cannot charge any fees to tenants in the event of default, except under those circumstances set out in paragraph 4 of schedule 1. That now specifically includes prohibiting default fees that may have been set out in a separate agreement between the agent and the tenant, rather than in the tenancy agreement.

More generally, our provision on default fees in paragraph 4 of schedule 1 has been the source of much discussion and debate. Indeed, the hon. Member for Great Grimsby has tabled an amendment to the provision. Members from across the House, the Housing, Communities and Local Government Committee, and those who provided evidence to the Bill Committee have agreed with the principle that it is not fair for landlords to pay fees that arise due to the fault of the tenant. However, we have listened to concerns expressed by Members on Second Reading and in Committee, including the hon. Members for Great Grimsby and for Dulwich and West Norwood (Helen Hayes), and by tenant groups and the Chartered Trading Standards Institute that the default fees provisions as currently constructed may be open to abuse.

[Frank Field (Birkenhead) (Ind)]

May I mention a case involving my constituent, which is not uncommon in my constituency or in constituencies throughout the country? A young mother paid a deposit of £595 to her landlord for a wet, mildewed house in Rock Ferry in Birkenhead. When she was driven out by the mould, the landlord claimed that the bins were not emptied by the local authority, so she lost her £595 deposit. She wished to pay the rent for her new property on a day that coincided with her universal credit payments, but the landlord said, “Well, there’s no repayment of your previous deposit, and I want £900 up front if I’m changing the rent day.” In the meantime, during all that stress, my constituent lost her triplets. Will she be covered by the Bill, as amended?

[Rishi Sunak]

I thank the right hon. Gentleman for his intervention. Without going into the specific details or knowing the full facts, I can say that the example he gives is exactly the kind of bad practice that the Bill is designed to stamp out. It is not just this piece of legislation, which tackles the specific issue of tenant fees, that is relevant, because across the piece, the Government are examining the private rented sector to ensure that there is balance and fairness between tenants and landlords. He touched on the issue of health and whether properties are fit for habitation. The hon. Member for Westminster North (Ms Buck) has proposed a Bill to tackle that exact issue, and the Government are delighted to be supporting its passage through the House.

The issue of transferring deposits from one tenancy to another is out of this Bill’s scope, but the right hon. Gentleman will be pleased to know that the Government have convened a working group to examine deposit passporting. The group has already met, and the findings will be published in the spring of next year.

[Frank Field]

I am grateful to the Minister, and I will not intervene again, but there is no transporting of the deposit in my constituent’s case. She loses the deposit and then faces paying another deposit of £900 to get her rent payment day in line with her universal credit payments.

[Rishi Sunak]

The specific issue of one tenancy ending, and the process for recovering part or all of the deposit and starting a new tenancy, is out of scope for this piece of legislation, but it will be a subject for the working group set up by the Government with the sector. There are some interesting ideas about how to solve the problem that the right hon. Gentleman outlines.

[Daniel Kawczynski (Shrewsbury and Atcham) (Con)]

The right hon. Member for Birkenhead (Frank Field) has quite rightly raised a horror story on behalf of his constituent, but will the Minister acknowledge that there are many highly professional letting agents throughout the country who seek to provide the very best service for their customers under the difficult circumstances that they sometimes face?

[Rishi Sunak]

I thank my hon. Friend for his intervention, and I entirely agree. The Bill is not about driving letting agents out of business, but about levelling the playing field so that the small minority of bad actors in the industry are not able to continue to the disadvantage of the vast majority of agents who do a terrific and valuable job, which we want to see continue.

[Mr Robert Goodwill (Scarborough and Whitby) (Con)]

It is precisely the sort of case that the right hon. Member for Birkenhead (Frank Field) raises that gives all landlords a bad name. Most landlords are actually trying to do their best to provide a service to their tenants and hope to have long-standing tenants.

Under the current legislation, for a deposit to be retained by the landlord, there has to be agreement on both sides, otherwise there is an arbitration process. If it is just a case of someone not emptying the bins, there is no way that the landlord would be able to keep all the deposit.

--- Later in debate ---

[Rishi Sunak]

My right hon. Friend is absolutely right. The abuse that the right hon. Member for Birkenhead highlights is exactly why we are all here today to discuss this important subject.

I will return to the topic of default fees. The Bill as drafted already partly mitigates the risk of such abuse by limiting default fees to the landlord’s loss and permitting such fees only if they are expressly set out in the tenancy agreement, which the tenant will obviously have sight of before agreeing to the tenancy. But we acknowledge that more can be done, which is why the Government have tabled a series of amendments to tighten the default fee provision.

As I have said, amendments 5 and 6 will ensure that landlords and agents cannot charge fees to the tenant in the event of default, except under those circumstances set out under paragraph 4 of schedule 1. Secondly, amendment 27 will extend the limitation on what can be charged to incorporate the agent’s costs. We want to ensure that an agent cannot bill a landlord a significant amount only for that to be passed on to the tenant as the landlord’s incurred costs.

Thirdly—and similarly to amendment 3, which was tabled by the hon. Member for Great Grimsby—we introducing a provision to specify that any fees charged must be reasonable in respect of the works undertaken, rather than simply tied to actual loss or costs incurred. This will ensure that landlords and agents cannot make claims for charges that exceed the reasonable commercial value of goods or services.

[James Cartlidge (South Suffolk) (Con)]

Will my hon. Friend clarify how this would affect fees charged at the end of a tenancy, such as cleaning fees, which we know people will be expected to pay, although they may not have been aware of them at the start of the contract?

[Rishi Sunak]

I am happy to tell my hon. Friend that the fees he mentions are specifically banned under this piece of legislation. The Bill has been drafted tightly to ban all fees in connection with a tenancy. It is specifically drafted to capture fees such as the ones he raises, so those fees will no longer be in place once the Bill is enacted.

[Debbie Abrahams (Oldham East and Saddleworth) (Lab)]

Could the Minister expand on who will be monitoring what happens with default fees? Some charities, including Shelter and Citizens Advice, have concerns that this might be used as a loophole for additional costs. Who will monitor the Bill and the default fees arrangements after the Bill is passed?

[Rishi Sunak]

If you will indulge me, Madam Deputy Speaker, I will expand a little to answer that question. The great thing about the Bill and the simplicity of a ban is that tenants’ ability to self-enforce will be greatly enhanced, which is something that was recognised by various people in the industry who gave evidence to our Bill Committee. Attached to any tenancy agreement is a consumer guide on how to rent and how to let, which provides straightforward advice for a tenant on what is and is not permissible. That will enable them to know whether something they are being charged is not appropriate.

At that stage, there are several avenues for redress that the tenant can pursue. It is mandatory for letting agents to be a member of a redress scheme, and we are consulting on extending that to landlords, but in the first instance there are redress schemes that the tenant can go to. Obviously they can talk directly to the agent and the landlord themselves. If the tenant does not get satisfaction in those conversations, the next step would be to go to the first-tier tribunal. That was recommended by the Housing, Communities and Local Government Committee, and the Government were happy to introduce it into the Bill as an accessible place for our constituents to go and seek redress.

--- Later in debate ---

[Debbie Abrahams]

The Minister is being generous with his time. I absolutely understand what he is saying, and the arrangement seems very comprehensive. My concern, given the emaciated state of trading standards and other local authority enforcement agencies, is that this will not be an effective way of monitoring the situation. Tenants in such a position are still vulnerable, with potentially little legal redress other than by themselves. Is there no opportunity for the Government to monitor what is happening with default fees?

[Rishi Sunak]

I am sure that the hon. Lady knows that it would not be appropriate for the Government to monitor every single rental transaction that takes place, but the job of the lead enforcement agency is to have exactly that oversight for the industry. I would point out that the Government will fund the first year’s cost for trading standards and enforcement authorities to the tune of about £500,000. Thereafter, the fines under the legislation will enable enforcement authorities to recoup some of the costs, and indeed to invest some of that money in better enforcement. To go back to the heart of the hon. Lady’s question—

[Dr David Drew (Stroud) (Lab/Co-op)]

Before the Minister does so, will he give way?

[Rishi Sunak]

I am happy to do so.

[Dr Drew]

In my area, the good agents are beginning to say that those who are already exploiting the situation are trying to push up rent levels. Will the Government at least look at what has happened since the Bill was introduced to make sure that rents are not pushed up by landlords artificially to overcome this loss of money?

[Rishi Sunak]

On that relatively unrelated point, it is worth pointing out that when similar legislation was introduced in Scotland, we did not see any greater increase in rents than we would have anticipated.

On the specific question asked by the hon. Member for Oldham East and Saddleworth (Debbie Abrahams) about tenants’ ability to enforce and the ease of their doing so, it is worth bearing in mind that default fees are specifically required to be identified in the tenancy agreement. Up front, at the outset of a new tenancy agreement, the new tenant’s contract has to say exactly what default fees may be relevant under that contract—for example involving the loss of keys, late rent or the loss of an alarm fob. That has to be there in black and white; it is not as though the landlord can come up later on with something that they want to charge the tenant for. That will also be spelled out in the guidance, so it will be very easy for tenants to know whether the default fees they are being charged are appropriate.

[Kevin Hollinrake (Thirsk and Malton) (Con)]

Will the Minister give way?

[Bob Blackman (Harrow East) (Con)]

Will the Minister give way?

[Rishi Sunak]

I am happy to give way to my constituency neighbour.

[Kevin Hollinrake]

May I take this opportunity to draw the House’s attention to my entry in the Register of Members’ Financial Interests?

On the point the Minister was making about redress for a tenant, does he agree that the vast majority of these problems are very easily solved by contacting the redress schemes, which are very effective at resolving any disputes that may arise? Will he clarify the point about cleaning? The cleaning of a property that a tenant has left in an inferior condition should still be the responsibility of the tenant, and that is a reasonable requirement to put into any tenancy agreement.

[Rishi Sunak]

We are very lucky to have the insights today of my hon. Friend and constituency neighbour. He has been a successful business operator in this particular industry and I always listen to what he says with keen interest. I can tell him that he is absolutely right with regard to redress schemes. Our experience—we have heard this throughout the Bill process—is that they do work well and provide a very easy way to resolve most issues. Simply talking directly to the agent and the landlord in the first place is also a way to resolve the vast majority of issues without having to turn to a specific or formal redress scheme.

On the second point, of course a state of condition and an inventory may be attached to a tenancy, and such a cost would be recovered during the normal course of a deposit return. The tenant would obviously have obligations in that regard, and a breach of those terms would be considered damages in the normal way. However, there will not be a specific charging of fees at the outset of a tenancy; unless otherwise broadly agreed, that is covered by the damages provision in a contract.

I believe my hon. Friend the Member for Carlisle (John Stevenson) wanted to intervene.

[John Stevenson]

The Minister referred to certain clauses being in a tenancy agreement with which the tenant would be obliged to comply. Agricultural law lays down prescribed clauses that have to be incorporated into agricultural tenancies. Has any thought been given to the Government setting out prescribed clauses to be incorporated into a tenancy agreement for residential property?

[Rishi Sunak]

That is the crux of what we will come on to later. The Government’s approach has been not narrowly to specify the specific things that could qualify as default fees. There has indeed been discussion of this topic. The Government’s point of view, which I will explain later, will I hope provide some clarity on that point.

If I may return to the—

[Bob Blackman]

Will the Minister give way?

[Rishi Sunak]

Ah—I give way to my hon. Friend.

[Bob Blackman]

A lot of the Government proposals are formed around what is reasonable, and one of the key tests in law relates to what is reasonable. I gently ask him to set out for the House what he considers to be reasonable. To give an example, he has mentioned the loss of keys. The loss of a normal household door key may be relatively cheap, but security keys provided by only one manufacturer can be very expensive. Is it reasonable for a tenant to be charged should he or she lose such a key? If so, that would mean a default charge of quite a considerable sum of money, even if it was specified in the original contract—the lease or rental agreement. Would that need to be specified in that way, or would it be classified as a reasonable default charge if the key was lost?

[Rishi Sunak]

I again thank my hon. Friend for all his work on the Select Committee in helping us to improve this legislation. I know that he has given great thought to the matters we are discussing today, and we have just heard another example. I can tell him that the word “reasonable” has been chosen very deliberately, because it is a commonly accepted legal term that is widely used in various pieces of legislation and is open to interpretation in a consistent way by the courts. Indeed, the Opposition have chosen the same term in amendment 3.

[Mr Jim Cunningham (Coventry South) (Lab)]

To come back to the question asked by the hon. Member for Harrow East (Bob Blackman), some weeks ago I watched a documentary about this. It looked at the safety of a particular house, and it ended up with the enforcement officers directing the landlord to replace the sort of very expensive locks that he mentioned. I do not know whether that is common, but the Minister may know more than me.

[Rishi Sunak]

That ties in nicely with the point made by my hon. Friend the Member for Harrow East (Bob Blackman), but it would not be right for me to stand at the Dispatch Box and define what is reasonable in any particular case. There is a general test of reasonableness, which will vary from circumstance to circumstance. A simple key for a garden gate with no security attached to it will rightly cost very little—people can go down to Timpson or wherever to replace it—but a security identity fob for an alarm system may be much more expensive. The point is that the charges could not exceed the reasonable commercial or market value of such goods or services.

On that point, I reassure my hon. Friend that we want to go further than amendment 3, which was tabled by the hon. Member for Great Grimsby, would have us do. We have listened to concerns about the fact that tenants may find it difficult to challenge the reasonableness of default fees, and we believe that it would be easier for them to do so if they were offered up-front evidence of default charges. That is why amendment 28 introduces a requirement for landlords and agents to demonstrate their loss proactively by providing written evidence—for example, in the form of receipts or invoices—of the costs incurred before charging tenants. That will put the onus on landlords and agents to be clear about the charges that they want to levy, and it will give tenants additional assurance that they are paying a fair and reasonable amount.

To return to the intervention by my hon. Friend the Member for Carlisle (John Stevenson), the Government maintain that it would not be appropriate to list default charges in the Bill, given the risk that such a list will be incomplete or insufficient. 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. Charges might also result from not parking in the space allotted to a property in a communal area, from the loss of a home automation smart remote and from the misuse of a common space—perhaps for a barbecue or other party event. Our amendments will increase transparency and fairness by ensuring that landlords and agents can recover their costs, while providing greater protection to tenants over the level of fees that they can be charged and further minimising the risk of abuse.

I turn to our other amendments regarding permitted payments. We want to ensure that the Bill delivers on the policy intention that the party who contracts a service should pay for the service. We have already been clear that where tenants procure their own third-party services—for example, a reference check or an inventory—they should be responsible for the cost. The legislation allows for that, although agents and landlords cannot, of course, require a tenant to use and pay for a third-party service.

Similarly, tenants should be able to make payments to agents whose services they contract for the purpose of finding accommodation, provided that the agent does not work on behalf of the landlord. That may be the case if a tenant lives overseas or otherwise requires assistance in relocating. We do not wish to prevent relocation agents from charging a fee for their services. Amendment 7 is designed to ensure that tenants are free to contract the services of a relocation or similar agent should they wish to do so, provided that the agent does not also act on behalf of the landlord with whom the tenancy is being agreed.

There are some further minor amendments to clause 28. Amendments 20 to 23 ensure that if a payment, such as a default charge, is required under a tenancy agreement that was entered into before the ban comes into force, that payment will be prohibited where it is paid to an agent after a period of 12 months. The Bill already prohibits that in relation to landlords, and we want to ensure that there is consistency with respect to agreements with agents.

Further to that, amendments 24, 25 and 29 to 42 make some minor drafting changes to clarify that a person acting on behalf of the tenant, or someone who has guaranteed the payment of rent—a relevant person—can also make a permitted payment. That will ensure that if somebody guarantees a tenant’s rent, they can make payments on the tenant’s behalf to a landlord or agent if required.

We have also tabled several amendments to clarify the enforcement and repayment provisions in the Bill. The amendments will ensure that the legislation can be effectively and fairly enforced, and that tenants have proper access to redress when things go wrong. First, amendments 13, 14 and 44 to 48 ensure that if a landlord or agent charges the tenant an unlawful payment, the landlord or agent must repay it as soon as is practically possible. Currently, when a tenant seeks repayment through the local authority or first-tier tribunal, a landlord or agent has 14 days or 28 days, respectively, to return the unlawfully charged payment once an enforcement order has been made.

We are talking about tenants’ money, and we want to ensure that tenants can recover it in good time. It is not fair for a tenant to be out of pocket because a landlord or an agent has charged a fee or unlawfully required a tenant to pay a third party. Our amendments will require a landlord or an agent to repay unlawful fees within seven to 14 days of the making of an order by the enforcement authority or the first-tier tribunal. The authority or tribunal will have discretion over when the payment is required, within that narrow period. We expect that most repayments will be made within seven days, but we have provided for a range because in certain circumstances it may not be possible for a landlord or agent to repay the money within seven days. I hope that this amendment addresses the concerns that we have heard about the speed of repayment when a landlord or agent is at fault, and we hope that it reassures tenants about the recovery of their money.

--- Later in debate ---

[Mr Jim Cunningham]

The last time we debated the Bill, I raised the issue of who would enforce it. The Minister has mentioned the enforcement authorities. Is it still his intention that trading standards officers should be enforcement officers, or has that changed?

[Rishi Sunak]

That has not changed. In Committee and during the evidence sessions, there was overwhelming support for the idea of trading standards authorities playing a key role in enforcement, given their complementary responsibilities in similar legislation. We have heard good evidence for that, and they will be supported up front by half a million pounds from the Government in the first year of the implementation of the legislation.

We want to ensure that the enforcement authorities are required to notify the lead enforcement authority in the circumstances that I have set out. At present, they are required to notify the lead enforcement authorities only when they impose a financial penalty. Extending the notification requirement to criminal offences will help the lead enforcement authority more effectively to monitor and report on the effectiveness and operation of the ban. This will also help to support local authorities better with their own enforcement actions.

Fourthly, on enforcement, when a tenant takes action to recover their fees, they should have confidence that their local authority can assist them through the process. The Bill already provides that local authorities can assist an individual in recovering a prohibited payment via the first-tier tribunal.

[Maria Caulfield (Lewes) (Con)]

One issue with current legislation on the requirement to publish letting agents’ fees has been the lack of enforcement. What confidence can the Minister give the House that enforcement will actually happen under this very welcome new legislation?

[Rishi Sunak]

My hon. Friend spoke passionately on Second Reading about renters in her constituency and the work she has done with them to ensure that they are treated fairly. I commend her for that, and for raising a very good point. I am pleased to tell her that the Government are funding enforcement activity with half a million pounds of fresh funding in the first year after the Bill is enacted. Subsequent to that, the fines that the legislation will enable local authorities to levy—potentially up to £30,000 for a repeat incidence—will help to fund ongoing activity. I am confident that we will be able to deal with the issue that she raises.

[Mr Goodwill]

Is the Minister confident that local authorities will have the resources and expertise to do what is set out in the Bill? We in the Bill Committee were concerned that 93% of local authorities had failed to issue even one penalty, and that the level of activity in this area was very poor.

[Rishi Sunak]

As the Minister with responsibility for local government, I am full of admiration for local authorities and their ability to do many things. The pace of the creation of new legislation over the past year or two means that many of the local authorities’ powers in this area are relatively new, so local authorities are getting to grips with them bit by bit. I am pleased to say that there are very positive examples on the ground of local authorities taking action to enforce housing legislation and reinvesting in enforcement the fines that they generate.

A brilliant example of that is Torbay Council, which has used the fines from civil penalties to employ an extra enforcement officer to help with exactly the activities that we are discussing.

[Sir Christopher Chope (Christchurch) (Con)]

Why are we not talking about a duty on local authorities to carry out enforcement? The Minister is saying that they have the powers, but the Public Bill Committee heard evidence that the London Borough of Newham prosecutes around 250 landlords and agents a year and that that represents half the total number of prosecutions in the whole sector. Why is there not a duty on local authorities to carry out enforcement?

[Rishi Sunak]

As I mentioned previously, Newham is obviously ahead of the curve, and the Committee did hear evidence about that, but many other local authorities are now following suit. Liverpool, Camden and Torbay are examples of local authorities that are getting to grips with the new legislation and putting it into effect in good order. I am pleased to say that, as these are relatively new powers, over the summer recess my Department conducted an extensive engagement activity across five different events throughout the country, involving almost 200 different local authorities, to talk specifically about the enforcement of regulations in the sector. Those conversations have sparked a lot of interesting collaboration across local authorities as they contemplate using the existing regulations and the new legislation in future. As we go forward together, with greater awareness and collaboration and, indeed, the greater funding that will come as a result of the legislation, I am confident that we will see enhanced enforcement activity from local authorities, where required.

[Kevin Hollinrake]

The Minister is doing an excellent job at the Dispatch Box, as always. Does he agree that another method of sanctioning landlords and agents who will not comply with reasonable regulations is through the redress process? The requirement for agents to be members of a redress scheme was introduced by our Administration in 2014. It was a seminal moment in the raising of standards in the industry. The requirement to be a member of a redress scheme, with an agreement going across the other two redress schemes, means that a practitioner can in effect be banned from the sector because they are not allowed to be a member of a redress scheme. If that idea is expanded to landlords, we will have another method of excluding from the sector people who will not do the right thing in the right way.

[Rishi Sunak]

I thank my hon. Friend for that clear example of an activity that is already happening that enables redress to be found. He is absolutely right to highlight the potential extension of membership of redress schemes from agents to landlords, which would further improve tenants’ ability to seek redress when they need it and would more generally act as an incentive for good behaviour in the first place. He will know that the Government are conducting a broader conversation about the regulation of estate agents, about ensuring that the industry is properly regulated and that standards are high and about ensuring that the actions of a small minority do not jeopardise the health of the great majority of the sector. That is an ongoing piece of work, and I am sure that we will discuss it in the House in due course.

As we discussed in Committee, when a tenant has paid an unlawful fee, it is only fair that they should be given a say in how those fees are reimbursed, and the hon. Members for Great Grimsby (Melanie Onn) and for Croydon Central (Sarah Jones), whom I am pleased to see the in their places on the Front Bench, tabled an amendment to that specific effect. As I said I would in Committee, I have considered their amendment and agree that such a provision would be a worthwhile addition to the legislation. As such, amendments 9, 10, 12, 18, 19 and 43 will place a requirement on landlords and agents to seek consent if they wish to offset such a fee against a tenancy deposit or rent payment. I hope that those hon. Members will be happy with that incorporation.

I am pleased to say that our amendments go slightly further than the one proposed by the Opposition Front-Bench team, by also requiring agents and landlords to seek the tenant’s consent if they wish to offset the holding deposit from the tenancy deposit or a future rent payment. If the landlord or agent does not seek consent from the tenant or relevant person about how the prohibited payment or holding deposit should be refunded, they will be judged not to have fulfilled their obligation to repay the fee. That will leave the landlord or agent liable for a financial penalty and give the tenant the right to recover their fee through the relevant enforcement authority. It will also restrict the landlord’s ability to serve a section 21 eviction notice.

I have already explained why we do not support the amendment tabled by the hon. Member for Great Grimsby on the default fee provision and why our proposed alternative is fairer and more workable. I wish briefly to address amendment 1, which she also tabled and which would increase the financial penalty for a breach of the ban from £5,000 to £30,000, and explain why we do not support it. We want the fine to act as a serious deterrent to non-compliance. We have listened to feedback from across the sector, and we firmly believe that financial penalties provided in the Bill are the right ones. I think that most people would agree that a £30,000 fine for an initial breach of the ban, as proposed in the amendment, would be excessive. We do not want unfairly to penalise landlords and agents who may inadvertently breach the ban on fees. In particular, that might seriously financially hurt individual landlords who, for context, collect on average rent of around £8,000 from a single properly. A £30,000 fine is almost four multiples of that.

[Mr Goodwill]

Does the Minister agree that a £30,000 fine might well precipitate the sale of the property and the eviction of the tenant—the very person whom the Bill is meant to protect?

[Rishi Sunak]

My right hon. Friend is right. He made the same points in Committee, and I appreciate his raising them again today.

The Government have listened to concerns that some agents and landlords see the £5,000 initial fines as a cost of business and thus repeatedly refuse to comply. That is why the legislation makes landlords and agents liable for a financial penalty for each individual breach of the ban that they commit. In addition, setting financial penalty at up to £30,000 for a second or further breach of the ban will act as a serious deterrent for prolific offenders. It is worth pointing out that further breaches will leave the landlord or agent liable to prosecution and an unlimited fine and, indeed, qualify as a banning-order offence. The Government believe that, taken together, this set of sanctions forms a serious deterrent to poor behaviour. To accept the Opposition amendment would be disproportionate and excessive in respect of the cases we are discussing.

[Bob Blackman]

There is a specific issue in relation to very corrupt landlords who exploit vulnerable people. The concern that I think many Members who have investigated the background to this issue will have had, particularly in parts of London, is that a fine of merely £5,000 will be seen as just the cost of doing business. These people are exploiting vulnerable people to the tune of hundreds of thousands of pounds, so for them even a fine of £30,000 would be nothing. I therefore urge my hon. Friend to consider this matter further as the Bill makes its way through the other place. Will he look at what can be done to take on these people? They are not landlords, but rogues and crooks. They need to be brought to account for the damage they are doing to the rental market and for the exploitation of very vulnerable people who have no choice in where they live.

[Rishi Sunak]

I thank my hon. Friend for that powerful intervention. He knows first hand, from the excellent work he does with his constituents to tackle this issue, the scale of the problem in particular cases. He will be reassured to know that, while existing legislation allows local authorities to levy a £30,000 fine for a second breach, if they choose not to do so, they can go down the prosecution route. For the cases he mentions, that would probably be more appropriate. The sanctions in that case are an unlimited fine and a banning order, which, for the specific landlords he mentions, would be appropriate. I think that he would agree that being banned from being able to rent any property for 12 months or longer, or an unlimited fine, would serve as a very significant sanction to the core behaviour in such cases. With that final assurance, I commend the Government’s amendments.

--- Later in debate ---

[Mr Clive Betts (Sheffield South East) (Lab)]

I apologise for not being present at the beginning of the debate; I had a meeting on the private rented sector, believe it or not.

I wish to say briefly that there is agreement in principle across the House on this Bill. It was improved by the consideration of the Housing, Communities and Local Government Committee, and I thank the hon. Member for Harrow East (Bob Blackman) for chairing the meetings in which the Committee looked at the draft Bill. I agree with him strongly that this is an issue of a contract between the landlord and the letting agent. That is the principle and that is why tenants should not be charged the fees. I see that one Government amendment clearly spells out that if a tenant goes to a letting agent and says, “Please find me a property,” that contract would be between the tenant and the letting agent and therefore a different arrangement.

I welcome the amendment that means that an enforcement authority will be able to help a tenant who wants to recover a charge awarded to them by the first-tier tribunal. That is a good amendment and I welcome the Government’s tabling it, but it surely shows the need to move to a housing court system, which the Government have promised.

[Rishi Sunak]

May I briefly thank all Members from all parties for their contributions today, in Committee and in the Select Committee hearings? All those contributions have helped to get the legislation into the fine shape that we find it in today. I appreciate all the insights from everyone. I welcome the broad support for the Bill. If Government or Opposition Members still want to engage on the details, I am very open to having those conversations.

Let me briefly answer the specific questions asked by the hon. Member for Great Grimsby (Melanie Onn). On timing, I am obviously not in control of the parliamentary timetable, but there will be a short period of time after Royal Assent—perhaps we should call it an implementation period rather than a transition period—after which the Act will come into force. Within 12 months of that point, any existing and legacy contracts will be subject to the Act’s provisions.

On the hon. Lady’s question about right-to-rent checks and incorrect Home Office information, I can confirm that under clause 8(5) the landlord would not be held liable.

Let me try one last time to persuade the hon. Lady not to press to a vote amendment 1, on fines. Perhaps she is not aware that the maximum fine is £1,000 under similar legislation in Scotland and that the maximum fine is just £500 in Wales. The Bill contains an initial fine of £5,000; the hon. Lady’s proposed maximum fine of £30,000 would be 60 times that of her party’s Government in Wales. I am sure she would agree that that sounds slightly disproportionate and that it gives her something to digest.

Finally, I thank my hon. Friend the Member for Shrewsbury and Atcham (Daniel Kawczynski) for his passionate defence of the free market economy in free enterprise and competition, with which I wholeheartedly agree and to which I wholeheartedly subscribe. It has been a pleasure to engage with him on the details of the Bill, and I assure him that as a fellow champion of small business, I continue to ensure that nothing we do will jeopardise the health of that free enterprise economy. I appreciate his advocacy on behalf of small business and look forward to future conversations with him.

Question put and agreed to.

Government amendment 5 agreed to.

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[Madam Deputy Speaker (Dame Rosie Winterton)]

I can now inform the House that I have completed the certification of the Bill, as required by the Standing Order. I have confirmed the view expressed in the provisional certificate published with the selection list. Copies of the final certificate will be made available in the Vote Office and on the parliamentary website. Under Standing Order No. 83M a consent motion is therefore required for the Bill to proceed. Copies of the motion are available in the Vote Office and on the parliamentary website, and have been made available to Members in the Chamber. Does the Minister intend to move the consent motion?

[Rishi Sunak]

indicated assent.

The House forthwith resolved itself into the Legislative Grand Committee (England) (Standing Order No. 83M(4)).

[Dame Rosie Winterton in the Chair]

Tenant Fees Bill

Rishi Sunak Excerpts

Tuesday 4th September 2018 Written Statements

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

I am today placing in the Library of the House the Department’s analysis on the application of Standing Order 83L in respect of the Government amendments tabled for Commons Report stage for the Tenant Fees Bill.

[HCWS930]

Oral Answers to Questions

Rishi Sunak Excerpts

Monday 23rd July 2018 Commons Chamber

[Chi Onwurah (Newcastle upon Tyne Central) (Lab)]

8. What assessment he has made of the viability of local authority funding for the maintenance of acceptable levels of public services.

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

Our local government finance settlement will increase resources for local government over the next two years because we recognise the pressures on local services, but it is right for decisions about funding priorities for individual local services to be made by local area representatives.

[Chi Onwurah]

The Cabinet has followed your example by visiting Newcastle today, Mr Speaker, but rather than giving its members the welcome that they deserve, I came here to hear the Minister’s totally out-of-touch answer. Central Government funding for Newcastle has halved since 2010. The number of looked-after children has increased by a fifth since 2014, and the number of vulnerable adults has risen by the same proportion in the last year alone. Given a funding gap of £300 million in 2020 just to keep services running, how does the Minister think Newcastle can deliver good public services?

[Rishi Sunak]

As we have discussed before, the hon. Lady’s local authority actually receives more funding per household than the average local authority similar to hers. Today of all days, I was hoping that she would welcome the meeting of the Cabinet in her area, the extra £1 billion for the northern powerhouse, and the continuing success of the Great Exhibition of the North, chaired admirably by my constituent Sir Gary Verity. In her area, the sun is shining, the visitors are pouring in, and the local economy is booming. It is a good time to be in the north-east, and that is being delivered by a Conservative Government.

[Mr Speaker]

I hope that one of those Ministers, in the course of this away day—which I am sure is a meeting of the utmost importance—will take the time to visit Newcastle University, which is a most admirable institution. They could benefit greatly from a visit. I mean that the Ministers could benefit, as much as the university.

[Neil O’Brien (Harborough) (Con)]

I welcome the Government’s commitment to a fair funding formula, and I thank the Minister for meeting me and representatives of Leicestershire County Council. Will he confirm that the review that is under way will look at the balance of funding between districts and counties? After all, it is the counties that are bearing the burden of a growing older population and the growing burdens on children’s social services.

[Rishi Sunak]

I can confirm that I have met representatives of my hon. Friend’s council regularly to discuss this topic, including just the other week at the local government conference. We received more than 300 submissions to the recent consultation on fair funding. That is one of the topics raised, and the Department is considering all responses with a view to replying later this year.

[Mr Clive Betts (Sheffield South East) (Lab)]

There is a great deal of concern in local government about the financial cliff edge that is facing a number of authorities. The Public Accounts Committee recently asked the Department to do two things: to explain by the end of September why it believes that local authorities are sustainable in the current spending round; and to agree with local authorities within 12 months a definition of financial sustainability and a methodology for assessing risk. Those are both important requests. Will the Minister ensure that his Department complies with them?

[Rishi Sunak]

I thank the Chair of the Housing, Communities Local Government Committee for his question. As he knows, the Department is considering the Public Accounts Committee’s report as we speak. As for his broader question, the Department is constantly evaluating local government sustainability, and in the upcoming meetings, and ahead of the spending review, the topics that he has raised will of course be closely scrutinised.

[Sir Vince Cable (Twickenham) (LD)]

How does the Minister justify an emerging system of negative rate support grants under which councils that have made themselves financially self-sufficient are now being told to make net contributions to the Government?

[Rishi Sunak]

I am pleased to tell the right hon. Gentleman that the Government will be launching their consultation on negative RSG very shortly, and I look forward to his contribution.

[Andrew Gwynne (Denton and Reddish) (Lab)]

Last week the Municipal Journal reported the Minister as saying that councils will be unhappy with the outcome of the fair funding review, so can he clarify just how unfair his review is likely to be and which types of council will be hardest hit?

[Rishi Sunak]

What I can confirm is that the fair funding review will be a bottom-up fresh look at how we fund local government in this country. It is long overdue, as the current formula is 10 years out of date with over 120 different indicators. It is right that that formula is fair, transparent and objective, and I am sure all councils will have a fair crack at persuading me of their case.

[Mr Speaker]

I am very glad that the Minister is in such a good mood; he really is a very cheery, upbeat fellow who positively exudes optimism about all things and all around him. We are delighted to see him.

[Andrew Gwynne]

But it will not wash, Mr Speaker. The Tory-led Local Government Association is warning that the funding gap for councils is now due to grow to £8 billion and the Public Accounts Committee has damned the financial capability of the Ministry to sort out this mess. With Northamptonshire the first broken shire and other local authorities of all types teetering on the cliff edge, when, rather than managing down expectations about fair funding, is the Minister going to stand up for the sector and demand the resources our public services so desperately need?

[Rishi Sunak]

If the hon. Gentleman had been at the local government conference just the other week he would have heard my right hon. Friend the Secretary of State describe to the sector exactly what this Government are doing to support them. We acknowledge the pressures on local government over the past few years; they have done a commendable job of maintaining high-quality public services in a difficult environment, and we will ensure that they continue to get the backing they need from this Government to deliver for all our local communities.

[Ruth George (High Peak) (Lab)]

9. What the timetable is for his Department bringing forward proposals to prevent the sale of new houses by leasehold.

--- Later in debate ---

[Peter Aldous (Waveney) (Con)]

14. What steps his Department is taking to ensure fairness in the allocation of funding to local government.

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

We are undertaking a fair funding review of local authorities’ relative needs and resources to address concerns about the fairness of the current system, and I am pleased to say that we are making good progress in collaboration with the sector in order to introduce a simple, fair and transparent funding formula.

[Nigel Mills]

Councils across Derbyshire have suffered under the previous funding formula, and I welcome the consultation and the fact that Derbyshire is one of the business rate retention pilots. Does my hon. Friend agree that local councils could achieve a double whammy by encouraging local growth and creating more jobs, and also by raising their own funds through the increased business rates?

[Rishi Sunak]

It is refreshing to hear my hon. Friend talk about growth in the context of local government funding. Economic growth is the only sustainable way to ensure the vibrancy of our local communities and to raise the vital money that we need to fund our services. I am delighted to tell him that the Government are committed to implementing further retention of business rates, so that his local authority, like all others, will have both an incentive and a reward when they drive growth in their local areas.

[Peter Aldous]

I am grateful to the Minister for those replies, but recent work by the County Councils Network has found that, despite additional funding provided to the last funding settlement at the beginning of the year, county areas including Suffolk will face £3.2 billion-worth of funding pressures by 2020. What can the Government do, in advance of the fair funding and comprehensive spending reviews, to ensure that councils are able to meet the essential needs of their residents?

[Rishi Sunak]

I pay tribute to my hon. Friend’s work on representing counties in this place, and I am delighted to have met him to discuss this topic on multiple occasions. I agree with him that county councils have done a tremendous job of maintaining services in this climate. I recognise the pressures that he identifies, and I can confirm to him that, in the short term, the Government will soon be publishing a technical consultation for local government finance in the upcoming settlement. As I said to the right hon. Member for Twickenham (Sir Vince Cable), we will be including a consultation on the issue of negative revenue support grant, and I can also confirm that there will be a new round of business rate retention pilots.

[Lilian Greenwood (Nottingham South) (Lab)]

Since early 2015, the Government’s troubled families programme has contributed funding to help with early support and preventive support for priority families in Nottingham, which is vital given the high levels of deprivation and the pressures on children’s services in our society. By intervening early, family support workers have helped to tackle crime and antisocial behaviour, helped parents to get back into work and reduced the need for care proceedings. Will the Minister meet me and my hon. Friends the Members for Nottingham East (Mr Leslie) and for Nottingham North (Alex Norris) to discuss his plans to support councils working with families when the programme funding ends in 2020?

[Rishi Sunak]

I thank the hon. Lady for her question, and I completely agree with her on the importance of this vital programme, especially with regard to prevention work. I am pleased to say that recent reports show that the incidence of children on the programme has declined by 13% as a result of intervention work by councils such as hers, and I would be delighted to meet them to learn what they are doing on the ground.

[Preet Kaur Gill (Birmingham, Edgbaston) (Lab/Co-op)]

What assessment has the Minister made of the length of time it takes to reach a decision on business improvement district appeals, such as that of the Harborne BID in my constituency?

[Rishi Sunak]

Like the hon. Lady, this Government believe that business improvement districts can be a fantastic asset for local businesses to ensure that their area remains a vibrant place to trade. She has strongly supported the application from her area, and I am pleased to tell her that a reply will be sent to her imminently after questions.

[Giles Watling (Clacton) (Con)]

13. What recent assessment he has made of the effectiveness of his Department’s support for local government.

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

Over the spending review period, councils have received more than £200 billion for local services, and the 2018-19 settlement sees an increase in resources to local government over the next two years, increasing to £45.6 billion in 2019-20.

[Giles Watling]

I thank my hon. Friend for that answer, but can he set out how his Department will support local councils to regenerate valuable coastal communities such as Clacton, which is positively Caribbean at the moment?

[Rishi Sunak]

I am pleased to say that the Government have spent £174 million through a fund to support local communities over the past few years. I pay tribute to the great progress made by the Jaywick Sands coastal community team in my hon. Friend’s constituency in bringing forward its proposal for a new coastal village. He has been intimately involved with that proposal, which is a model for others to follow.

[Wera Hobhouse (Bath) (LD)]

Local councils, including Bath and North East Somerset Council, are facing a funding gap of £2.2 billion for adult social care. What measures is the Department taking to incentivise preventive services to reduce the burden of adult social care on councils such as ours?

[Rishi Sunak]

Work between the NHS and local authorities through the better care fund is addressing the issue that the hon. Lady mentions. I am pleased to say that the most recent statistic shows a 37% fall in delayed transfers of care relating to social care, which shows that the approach we are taking is working, and local authorities should be commended for delivering that.

[Mohammad Yasin (Bedford) (Lab)]

15. What recent discussions he has had with the Secretary of State for Health and Social Care on the allocation of NHS funding for social care.

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

The Secretary of State for Housing, Communities and Local Government has many conversations with the Secretary of State for Health and Social Care, and most recently they have been discussing the fact that effectively targeted NHS spend can reduce the need for social care, just as effectively targeted social care spending can reduce pressures on the NHS.

[Mohammad Yasin]

Bedford Borough Council has the country’s lowest rate of delayed transfers of care. Instead of being congratulated, the council has been told that it will now be penalised if it fails to meet zero delays, when other authorities have much more generous allowances. Does the Minister agree that he should be supporting Bedford Borough Council to be the best in the country, instead of making that as difficult as possible through the delays in funding and the unfair targets?

[Rishi Sunak]

I am happy to look into the specific issue that the hon. Gentleman mentions, but I join him in paying tribute to the work that has led to Bedford delivering a fantastic performance on delayed transfers of care.

[Sir Geoffrey Clifton-Brown (The Cotswolds) (Con)]

Does my hon. Friend agree that it is essential that both local authorities and the health service work more closely together to provide a seamless combined service? That requires a change in culture at local level, similar to the one in Gloucestershire, where we have an excellent joint commissioning board.

[Rishi Sunak]

My hon. Friend is right about that and right to highlight the work of his local authority, which is a pioneer in collaborating more closely with the local NHS. That is showing tremendous results on the ground in reducing delayed transfers of care, which are stopping people from getting into the NHS in the first place. I hope that others can learn from Gloucestershire’s example.

[Christian Matheson (City of Chester) (Lab)]

16. What assessment he has made of trends in homelessness since 2010.

--- Later in debate ---

[Diana Johnson (Kingston upon Hull North) (Lab)]

T4. The Secretary of State has just talked about councils’ role in prevention. Given that they are now responsible for public health and the Local Government Association claims that public health cuts of £600 million mean that they are unable to deal with unforeseen outbreaks of sexually transmitted diseases, is he concerned that we have the highest rates of syphilis since the end of the second world war, and strains of gonorrhoea that are resistant to treatment?

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

I thank the hon. Lady for highlighting those particular cases, the details of which I am not intimately familiar with. I would be happy to look into the matter. She is absolutely right to highlight the important role that local authorities play in prevention, particularly when it comes to public health. As we approach the spending review and the fair funding review, I would be delighted to talk to her to see how we can best capture the role that local authorities play in delivering that.

[Bob Blackman (Harrow East) (Con)]

T3. It is extremely good news that the Government have allocated a record amount of funding for new housing in London. Could my right hon. Friend then explain to the House why it is that new housing starts are going up in England but, in London, they are going down?

--- Later in debate ---

[Mohammad Yasin (Bedford) (Lab)]

T8. What assessment has the Minister made of the effect on the long-term financial viability of councils of the use of reserves to fund adult social care?

[Rishi Sunak]

It is important that each local council makes those decisions itself. It was the responsibility of the statutory officer to decide on the appropriate level of reserves. I am pleased to see that, in the hon. Gentleman’s own local authority, non-ring-fenced reserves are up 30% in the past six years. I am sure that his council will use those reserves prudently as required.

[Maggie Throup (Erewash) (Con)]

Will my right hon. Friend update the House on what progress has been made to select sites for HS2 garden villages in the east midlands, especially around the Toton hub?

Parking (Code of Practice) Bill (First sitting)

Rishi Sunak Excerpts

Committee Debate: House of Commons
Thursday 19th July 2018 Public Bill Committees

[Daniel Zeichner]

The right hon. Gentleman is absolutely right, but the problem is that about 30% are intimidated. That is the problem, and the point I am making is that until we can give people confidence, we will need a very strong message and very clear designation. I do not know whether the Minister has given any thought to how we might go about that, but it is certainly where I would like to go with it ultimately. Until we do that, the numbers will remain significant, and I fear we will still get complaints in our postbags about the practice.

With that caveat, I think that the proposals are a significant step forward. I am sure that they will get support across the House, and the sooner we see them in legislation the better.

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

It is a pleasure to serve under your chairmanship, Mr Bailey. I do not want to detain the Committee for long, but I congratulate my right hon. Friend the Member for East Yorkshire on introducing the Bill, and more generally on his work to highlight this issue, which affects millions of people every day.

I was pleased to speak on behalf of the Government in support of the Bill on Second Reading. I pay tribute to all hon. Members for the important contributions they have made, both today and on Second Reading, highlighting the unfair practices that are being carried out every day, affecting their constituents. We heard then, and we heard again today, that Members are doing their absolute best to stand up for their constituents and to highlight these practices, which need to be stamped out. Indeed, that is what the Bill is designed to address.

I will turn briefly to some of the specific questions raised by hon. Members, but first I pay tribute to my right hon. Friend the Member for Scarborough and Whitby, who, in a previous guise as a Transport Minister, himself took steps to tighten up practices in the parking industry. Those steps have already been mentioned today, and he was far too modest to take any credit for them, but we should pay tribute to him for tightening up the rules regarding the unfair use of automatic number plate recognition and clamping.

The hon. Member for Cardiff South and Penarth spoke passionately today, as he did on Second Reading, about the issues affecting his constituents. I am pleased to say that in general, all the issues that he raised are likely to be covered by the new code of practice. I would be delighted to meet him when we return from the recess to discuss any further points in more detail, but he spoke well on Second Reading about threatening solicitors’ letters. What he said stayed with me, and I am determined to ensure that the code of practice has specific guidance on that point, which affects so many people.

[Stephen Doughty]

I appreciate what the Minister has said. What discussions has he had, or will he have, with the Ministry of Justice and the SRA? Just to convey the scale of this, another firm that I mentioned, called BW Legal, regularly issues 10,000 county court judgments a month, and is known to have issued 28,000 in one month. A significant proportionate of them relate to parking. They are jamming up our court system, and are often totally unjustified.

[Rishi Sunak]

The hon. Gentleman makes a very good point. I am pleased to tell him that we will engage directly with the MOJ and the SRA. To date, I do not believe that we have done so, but we will happily do that. He makes a very good point about the impact on the court system. More broadly, on the point that he raised on Second Reading and today about county court judgments and, in his personal experience, letters going to previous addresses, I am relatively confident that we can address that in the code of practice by including some clauses about reasonable efforts by parking operators to find a more up-to-date address.

The hon. Gentleman talked about the appeals process, which of course should be independent. I am pleased to tell him that, as part of the code of practice in the Bill, it will be scrutinised, funded through the levy. That will ensure independent scrutiny of the appeals process, as well as the associations and operators, to ensure that appeals are working not in the manner that he highlighted, but in one that is fair to those who need to avail themselves of such a process. He talked about information, which many other hon. Members talked about, and of course the code of practice will outline the information that should be standardised on tickets and signage, so that there is good practice and consistency across the industry.

On the devolved Administrations, I am pleased to tell Committee members that the Welsh and Scottish Governments are represented on the working group that has been engaged in developing the code of practice, and are in extensive dialogue with the team in my Department, to ensure uniformity of execution of the Bill and to confirm that all the various matters have been put in place as required.

I have an update for the Committee. The explanatory notes are out-of-date with regard to the legislative consent motion. Originally, the advice from the Scottish Government was that that would not be required, but that advice changed and they believe that they require it. That motion has now been passed, so I am pleased to say that the Bill will have force in Wales and Scotland, and that all legal requirements have been satisfied in that regard.

I pay tribute to the experience of the hon. Member for Cambridge in transport matters. He has spent a considerable time in the House weighing in on such issues, so it is a pleasure to have his experience on the Committee. I will touch briefly on the issues he raised. He made a good point about rogue operators. I am confident that not having access to the DVLA will deal with the vast majority of problems that hon. Members have mentioned, because the lifeblood of trying to extort money from people is having access to their details.

By standardising tickets, complaints processes, fees and lots of other things, the code of practice will offer us the opportunity to educate the British public when the Bill has passed. From that point forward, one will be able to say to the people of the United Kingdom, “This is what tickets should look like. These are the various things that you should expect to see on them”— whether that is a kitemark or something else. In that way, through consumer education, we will hopefully ensure that they will be able to check for some kind of mark or language that would not be on rogue parking tickets. By bringing everything together in a standard way, that education process can happen in a way that it cannot today. I hope that that will deal with most of those issues.

I am also happy to look at the law that already exists to tackle people who are doing things that are presumably illegal, such as trespassing or interfering with other people’s private property. As I said, however, the huge opportunity comes from the code of practice, which standardises behaviour and practical things such as the information contained on signage and tickets, so that we can get to the point where people know what to look for on a parking ticket.

[Mr Goodwill]

Does the Minister agree that one reason why people often fall into those traps is that local authorities are generally very straightforward and honest with people in their parking areas, and offer free parking that is free? For example, in Scarborough, all parking is free for tourists after 6 o’clock.

[Rishi Sunak]

I am sure everyone watching the Committee will have heard that advertisement to visit my right hon. Friend’s constituency. Near to my own as it is, I also encourage them to visit the Yorkshire Dales and the North York Moors.

[Kevin Hollinrake]

While we are on the subject of Yorkshire, as well as putting on record my thanks to APCOA Parking at York railway station for letting me off my parking ticket, I ask the Minister to join me in recognising the fantastic efforts of Malton Estate. It owns private car parks in the centre of Malton and gives two hours of free parking throughout the day. That has incentivised more shoppers to come into the town, and is one of the reasons why Malton is now Yorkshire’s food capital.

[Rishi Sunak]

I pay tribute to the car parking practices in Malton that my hon. Friend describes. It is evidence of what my hon. Friend the Member for South West Bedfordshire said, which is that good, honest and fair car parking is vital for the health and wellbeing of our town centres and high streets. We all want to see it encouraged across our constituencies.

[Kevin Brennan]

I will resist the temptation to advertise the delights of Cardiff, although they are great and many. We are all grateful to the Minister for sending us the draft advisory code of practice summary in advance of the sitting. Paragraph 12(b), which covers complaints handling, states:

“There should be a requirement to issue an acknowledgement or full response to a complaint in a timely manner”.

Does he agree that if a parking company failed to respond to correspondence on such a matter from a Member, and if that wording is included in the final code, it would, in effect, be in breach of the code of practice?

[Rishi Sunak]

I should have mentioned that the code of practice includes the issue that the hon. Gentleman has raised both on Second Reading and in Committee. This is just a summary of the code of practice. The details, including timescales and exactly what will be required, will be fleshed out. However, in broad brushes, he is right: the code of practice is there to be adhered to. Parking operators will be audited as to whether they are adhering to it, partly by the trade association that they belong to and partly by an independent scrutiny body that will be funded by the levy. There will be sufficient scrutiny of operators’ behaviour in this regard, and replying to correspondence will be one factor considered when their behaviour is evaluated.

[Stephen Doughty]

The Minister is being very generous with his time. I have one specific question about paragraph 4 of the draft code of practice summary, which covers clear signage and surface markings. We have talked about clear signage, but surface markings are also important. For example, at the entrance to blocks of flats in Cardiff there is often a barrier. However, around Cardiff City’s football stadium—they are in the premier league this season; many people will be coming to watch—it is not often clear where the public road ends and private land begins. Football fans are often caught out, suddenly finding themselves on private land on the boundary between my constituency and that of my hon. Friend the Member for Cardiff West.

[Stephen Doughty]

The stadium is in my hon. Friend’s constituency; the road where many people park is not. People often get caught out without realising that they are on private land, because no clear boundary is indicated between the public highway and the private land. Will the Minister look at that issue?

[Rishi Sunak]

I do not want to get drawn into that intra-Cardiff debate; I will leave the hon. Gentlemen to conclude that after the Committee. I am happy to look into the issue that the hon. Member for Cardiff South and Penarth mentions. Cardiff is wonderful and is represented here in force, but I think Yorkshire is slightly more represented. Yorkshire Members remind everyone to visit the delights of Yorkshire over this summer.

In conclusion, I thank Committee members for their constructive comments, this morning and on Second Reading. I look forward to working with not only my right hon. Friend the Member for East Yorkshire but all Committee members to bring this important piece of legislation on to the statute book as soon as possible, so that we can start to right the wrongs that so many of our constituents have had to endure. This is a fantastic example of Members from all parties working together to solve a practical problem that will make a meaningful difference to people’s everyday lives.

I commend the Bill to the Committee.

[Sir Greg Knight]

I thank all colleagues who have contributed to the debate. Each has brought to bear some of their and their constituents’ experiences of unfair practices, which emphasises that the Bill is overdue and necessary. I also thank the hon. Member for Perth and North Perthshire, who cannot be here because of other proceedings but who has indicated his support on behalf of the Scottish National party, so the Bill really does have all-party support. I thank the Minister for his diligence, help and assistance.

I commend the Bill to the Committee.

Question put and agreed to.

Clause 1 accordingly ordered to stand part of the Bill.

Clauses 2 to 11 ordered to stand part of the Bill.

Question proposed, That the Chair do report the Bill to the House.