Local Authority Overview and Scrutiny Committees

Rishi Sunak Excerpts

Thursday 17th May 2018 Westminster Hall

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

I beg to move,

That this House has considered the First Report of the Housing, Communities and Local Government Committee, Effectiveness of local authority overview and scrutiny committees, HC 369, and the Government Response, Cm 9569.

It is a pleasure to serve under your chairmanship once again, Mr Sharma. Today’s debate will consider the report of what is now the Housing, Communities and Local Government Committee. At the time it was the Communities and Local Government Committee, but what’s in a name change, after all?

The report looked into the effectiveness of local authority overview and scrutiny committees, which is an important subject. Perhaps it is a bit technical, and does not catch the main headlines in the popular press, but local government delivers important services to our local communities, including social care services for the elderly and children, emptying the bins, sweeping the streets, running libraries, and producing housing. Those are all important services, and it is important that they are done well and that the performance of authorities is scrutinised and monitored effectively.

Let us go back, for those of us who can remember, to how scrutiny came about in local government. We used to have a system—indeed, some councils are going back to it—in which all councillors were involved in the decision-making process, in the sense that they were members of committees. Then we had the idea that the Cabinet system, because it worked so well at national level, should be replicated at local authority level. Cabinets were set up in local government, and a number of councillors were appointed to them. I think someone either in Westminster or Whitehall then had the thought, “What do we do with the rest of the councillors who are not on the cabinet, who now haven’t got committees to be on?”

Councillors perform a very important role as representatives of their local communities. Acting in their wards on behalf of their constituents is key to their role. Then someone thought, “What else can we do with them; they are sitting around the town hall, city hall or county hall with nothing else to do? Scrutiny committees are a good idea—we’ll have those.” I think it was a bit of an afterthought on top of the cabinet system, although people who devised it at the time might say that it was not. Unfortunately, for some authorities, it has remained an afterthought—somewhere we can put to one side those councillors who do not have much to contribute anywhere else or, sometimes, councillors who have too much to say somewhere else and are a bit of a nuisance to the leadership of the council. Those in the leadership put such councillors on a scrutiny committee, and hope that they will go away and do something that does not really affect them.

Unfortunately, some councils see scrutiny as a problem. People can raise difficult issues that should not be raised, and sometimes it can become an issue of party political contention. Opposition councillors get put on scrutiny committees to make the life of the ruling party difficult, and ruling party councillors get put on them and told not to ask any difficult questions, because questions can always be raised in their group meetings afterwards. Councillors tell us that that is what is said to them.

However, there are very good examples of scrutiny; like Select Committees in this House, councillors challenge the executive, take on issues, investigate thoroughly and comprehensively, produce good reports and, rather than simply looking at something after the event, take policy initiatives and help to develop policy. Sometimes when there is a complicated issue—perhaps there is a general understanding in the council of where they want to get to, but not of how to get there—scrutiny committees can be really good at delving down and doing what they call “task and finish” to identify the key issues and technical difficulties, and come to agreed, well thought through conclusions. There are some really good examples of effective scrutiny.

There are good examples of councils going outside their council body and getting witnesses, expert witnesses and advisers in to help them, as Select Committees do. Unfortunately, such examples are rare. When councillors are asked why they do not get people from their local university to come in and help—those experts would probably be quite happy to be part of their local community engagement and democratic process—the response is often, “Oh—can we do that?”

We recommend looking at examples of best practice. Councils should learn from one another, and from the best examples of how to conduct scrutiny independently and effectively, by drawing in advisers from outside and engaging with the public in a meaningful way. Sometimes the way the public are engaged with—sitting at the back of a room while a council officer reads a report that has been written well in advance—is not very good. That does not engage the public, but we are looking at different ways of doing so. Taking scrutiny out to the community, setting up websites, and using social media are ways in which councils can develop and enhance scrutiny, as some of our Select Committees do.

This weekend I am going to Birmingham because the Housing, Communities and Local Government Committee, together with the Health and Social Care Committee, is doing an inquiry into social care. We are going to talk to the citizens’ jury that we have established to provide information and evidence to the inquiry. It is the first time that our Committee has done that. The Committee is also doing an inquiry into the high street. We are using a website to try to get the public engaged in feeding in their information about what is happening in their high street, and what they think should happen. We would like to see such initiatives reflected in local government. Sometimes they are, and local authorities can learn from one another as well.

The key recommendation of our report is about the culture in local government. Do those in the leadership, both politically and at officer level, see scrutiny as important? Do they see it as part of the council’s function, and as something that can add value to council decisions, or just as a bit of an irritant that can be put to one side and forgotten about? That was key to our recommendations. The reality is that if councils value scrutiny and want to make it work, they can do it, even if they may do it slightly differently in different authorities.

I do not want to keep hon. Members for too long this afternoon, but the Committee made a number of specific recommendations. The Committee’s key observation was that Government guidance on scrutiny has not been updated for a long time. The Government have accepted that, and they will produce new guidance—we had a positive discussion with the Minister about that at the evidence session. That is a good starting point, because it means that we can look at some of the other recommendations positively. Scrutiny committees should report not just to executive members of the council, but to the whole council. Again, the Government have accepted that, and we welcome it.

We recommended that scrutiny officers should have the necessary skills to help members of scrutiny committees to do investigations into detailed policy matters. We should not just have a clerk system in which someone says, “We’re here to keep a record of attendance and get the witnesses in the right places.” It should be about helping members with proper monitoring and policy development. The Government have basically accepted that recommendation as well.

Another issue was scrutiny of elected mayors and combined authorities. When any deal is done, it is really important to look at scrutiny, and ensure that resources are available for it. Those mayors and combined authorities are a further step removed, in some cases, from the people who elect them. The arrangements can be complicated, and it is important that there is proper scrutiny of them. The Government have accepted that point as well.

Moving on to issues on which the Government’s response has been less enthusiastic, and those issues that need more consideration, the Government did not accept that a summary of the resources spent on scrutiny should be published each year alongside the summary of resources spent on the executive. The reality is that, in many councils, when cuts are made scrutiny is one of the things that gets cut, because it is a bit of an inconvenience and nobody will miss it if it does not happen. Of course, the executive looks after itself. That does not happen on all councils, but there is sometimes a feeling that that happens, because the executive makes the budget recommendations. We thought that saying to councils, “Look, just publish those figures,” was an interesting way of demonstrating the extent to which they fund scrutiny, compared with other functions of the council. The Government said no to that. It seemed to us a fairly harmless recommendation, and we do not understand why the Government did not support it.

The Committee also said that a statutory scrutiny officer should be appointed in every council. Why not? They exist in unitary authorities and in counties, but not necessarily in second-tier authorities—the district councils—which perform very important functions. Why not a statutory scrutiny officer there as well?

The issue of what information is available to scrutiny committees is absolutely key. Following our report, I have done two or three talks to councillors on scrutiny committees and scrutiny officers. Everyone started nodding at the point we raised the issue of what information is available. So many times councillors on scrutiny committees have been told, “You can’t have that information; it is confidential.” There are examples of councillors having to use freedom of information requests to get information from their own councils. That is ludicrous. It is nonsense. The words “commercial confidentiality” often appear as the explanation and the excuse.

The Government’s response in that regard was an attempt to be helpful. They said that there should not be a blanket refusal to provide information and that information should be dealt with on its own merits. The very helpful point was made—I hope it is given some prominence in guidance to councils—that when contracts are let by councils, clauses should be put in to make it clear that information can be relayed to councillors and not just to a handful of people on the executive. Companies tendering for work should understand that right from the very beginning of the tendering process, before contracts are let. The Government need to build on that in the guidance because it is an absolutely key point—if the information is lacking, scrutiny cannot be done.

In many councils, more and more functions are not delivered in-house but are contracted out to private companies. Officers delivering a service in house can be called before the scrutiny committee, but if the information about a private contract is classed as commercially confidential, the contract cannot be scrutinised and nor can the service to the public. At the end of the day, that is the key point. Addressing that issue is fundamental to getting scrutiny right in an age when so many services are now delivered by third-party contractors. We must make sure not only that the information is available but that those individuals who are running the contract have to come before the scrutiny committees as well.

We also called for scrutiny committees to look at the work of local enterprise partnerships. Billions of pounds of public money is spent by LEPs, which are almost unaccountable to any part of the democratic process. The Government were receptive to the idea and said that there should be proper oversight and transparency of the operation of LEPs. They said that they would go away to think about that and write to the Committee. I know that the post is occasionally slow in this country, but I think the letter has got lost in the post. We have not received it yet. I hope the Minister has one in his pocket this afternoon to hand across the Chamber.

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

We are writing it now.

[Mr Betts]

Okay. Clearly, I think it is an important issue. Who else is going to oversee the spending and work of the LEPs if not council scrutiny committees? That is very important.

There is something that somehow got lost altogether in the Government’s response. Currently, councils have a right to oversee their own activities and the officers who perform them, although they need to do more about commercial companies. There is a very good set of rules for the health service. The service can be scrutinised by local council scrutiny committees and the health service bodies have to provide information. Officers have to come to scrutiny committees and be questioned about that. What about the other important public services?

The Department for Work and Pensions provides a lot of services at local level. So do the police. I know that the police have their own scrutiny arrangements for local police panels—I do not know whether they are quite the same—but certainly, lots of public services, such as those delivered by the DWP, are very important at local level. They do things that affect the public locally, but there is currently no local oversight. We suggested that they should be put in a similar position to health service bodies and that officials should have to provide information and evidence and be available to appear before scrutiny committees. The Government seem to have missed that out altogether in their response, as though they were a bit uncomfortable about it. I know that it might mean talking to one or two colleagues in other Departments, but it is a good proposal and one that would help transparency and monitoring of Government activity as well. I hope the Minister will be able to say a bit more about that this afternoon.

We look forward to the Government’s guidance, as well as clarification of the one or two issues that I have identified, including that long-awaited letter, but to a large extent, at the end of the day it is down to councils. We can give them guidance, but we need to encourage them to take account of the report and to work with each other to improve scrutiny.

I know that the Local Government Association is starting to look at the issues. We had a very helpful letter just before the debate from the Centre for Public Scrutiny, which has an important role to play. It gave evidence to the Committee and is now working with the LGA on how to deal with a number of matters in a practical way. They are looking at the issue of councillor training, and at examples of good practice. They are looking at how councils can be helped to understand their responsibilities. I hope that they are going to look at the idea we recommended, which the Government said they were going to talk to the LGA about, of doing some pilots on the election of chairs of scrutiny committees.

Councils are, in the end—the Committee is very clear about this—locally elected bodies, and on the Select Committee we are all, by and large, localists who believe that things can be best done and organised at a local level, but we thought the idea of having chairs elected by the home council was quite a good one. We did not want it to be imposed on councils, but we suggested one or two pilots to show what could be done. The Minister might be able to let us know how far that has gone.

We certainly welcome the work that the LGA is now doing with the Centre for Public Scrutiny to take those ideas forward. We look forward to the guidance that the Government are eventually going to produce on the basis of the report.

--- Later in debate ---

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

It is a pleasure to serve under your chairmanship, Mr Sharma, I think for the first time. I congratulate the hon. Member for Sheffield South East (Mr Betts) on securing the debate. I thank him and the members of his Committee for their important work. I stand here in some trepidation, responding to a debate in which I think I am the only parliamentarian who has not been a local councillor at some point.

[Mr Betts]

There is still time.

[Rishi Sunak]

One job at a time, perhaps. Collectively, there is probably over half a century’s worth of local government experience in the room. I pay tribute to that service. The hon. Member for Sheffield South East said that this may not be a topic that attracts front-page headline news, but nevertheless it is an important topic. It is a credit to him and his Committee that they took the time to thoroughly investigate a topic that deserves scrutiny but that otherwise may not have had the chance to be debated and aired in this place.

Scrutiny is fundamentally important to the successful functioning of local democracy, so I welcome the opportunity to reflect on the Committee’s findings. It has a key role to play in ensuring local accountability and the efficient delivery of public services. Scrutiny committees can play a key role in voicing the concerns of local people. I hope the Government response makes it clear that I value the role that scrutiny can play in supporting accountable and transparent decision making and the effective delivery of council functions. The principal takeaway point for me from the Committee’s report, which the hon. Member for Sheffield South East alluded to, is that the organisational culture determines whether scrutiny works well. Where there is a culture of welcoming challenge, the scrutiny process in councils is effective.

I would like to start by setting out the core principles that underpin Government’s approach to scrutiny, before turning to the specific recommendations of the report. First, councils are democratically elected bodies and are ultimately accountable to their electorate. Secondly, as a localist, I take the view that councils are best placed to know which scrutiny arrangements will suit their own individual circumstances. Thirdly, Government have a role to play in ensuring that councils are aware of what effective scrutiny looks like and how best to carry it out. Lastly, overview and scrutiny is just one part of the wider accountability framework for local government, along with the requirement to publish certain information online for transparency, the requirements for independent audit, the complaints process and the presence of independent local media.

The rationale behind the Government’s response was, therefore, to accept those recommendations that would increase councils’ understanding of the importance of scrutiny and how to conduct it, but to tread carefully with the requirements that would place additional requirements on local authorities or reduce their flexibility to decide for themselves which scrutiny arrangements to put in place.

I will turn to some of those specific recommendations. The Committee’s first recommendation clearly will enhance councils’ understanding of the importance of scrutiny and how to conduct it. The Committee pointed out, not unfairly, that statutory guidance was updated more than a decade ago. I was more than happy to agree to update that. I am keen that the new guidance is of genuine use to councils and is not just a tick-box exercise that simply restates their legal obligations. My Department is already at work with the sector to ensure that it delivers the right messages in the right way. Broadly, the guidance will seek to ensure that councils know the purpose of scrutiny, what effective scrutiny looks like, how to conduct it effectively and the benefits it can bring. More specifically, it will cover some of the specific things that were heard today, such as reports to full councils or the role of the public. I look forward to publishing that revised guidance before the end of this year.

The hon. Member for Sheffield South East and the hon. Member for Makerfield (Yvonne Fovargue) raised the concern of public scrutiny of local enterprise partnerships. The Committee’s report seemed to suggest that it was the exception rather than rule. I want to reassure hon. Members that I agree fully that local scrutiny is essential to holding LEPs to account. The local enterprise partnerships national assurance framework is set by central Government and LEPs must comply with it to receive funding.

Last year, one of the Department’s non-executive directors, Mary Ney, led a review into LEP governance and transparency. We are in the process of fully implementing all her recommendations; but I agree there is more to do to ensure that LEPs and local partners collaborate effectively to deliver better outcomes for the public. That is why we are currently undertaking a Minister-led review that will consider the role of local scrutiny in LEP governance. It will also bring forward reforms to LEPs’ roles, leadership, accountability and geography. It will be published in the coming months.

I apologise to the hon. Member for Sheffield South East and his Committee that he has not received the letter that he is due. I will ensure that gets to him in short order, to set out what has already happened and what is happening to improve governance and scrutiny for LEPS.

[Mr Betts]

I thank the Minister for that reassurance. We will get a letter in short order saying that something will happen in the coming months. Could the Minister be more precise about what “the coming months” might mean?

[Rishi Sunak]

I would love to be, but the review is being conducted by my colleague, the Under-Secretary of State for Housing, Communities and Local Government, my hon. Friend the Member for Rossendale and Darwen (Jake Berry), so I do not have the exact timing to hand. The review was announced through the industrial strategy White Paper. I am sure that we will share as much information as we are able to with the Committee. The hon. Gentleman knows that, alongside that, the assurance framework is in the process of being reviewed and updated. That work is going on with people in the industry, including the Chartered Institute of Public Finance and Accountancy and officials. I will make sure that all that is contained in the letter, with as much transparency on timing as we are able to give.

Another key concern that the Committee raised was that scrutiny seemed to be a second-order matter for combined authorities. I assure hon. Members that I take accountability in these new authorities very seriously. I am confident that the framework we have put in place provides the basis for a robust and consistent approach to scrutiny for combined authorities across the country. In particular, the Combined Authorities (Overview and Scrutiny Committees, Access to Information and Audit Committees) Order 2017 was a key step in implementing devolution deals, and will ensure effective accountability for the new budgets and powers that have been devolved.

Members raised the question of resourcing. The Government announced at the last Budget that they will make available to mayoral combined authorities a £12 million fund for financial years 2018-19 and 2019-20 to boost Mayors’ capacity and resources. Combined authorities are free to use that to ensure that scrutiny and accountability arrangements are effectively resourced and supported.

I turn to the recommendations that the Government are considering. Access to information was raised by all three Back-Bench Members who spoke—my hon. Friend the Member for Harrow East (Bob Blackman) and the hon. Members for Blaydon (Liz Twist) and for Sheffield South East. They made a persuasive and compelling case that we should have a hard look at that area. As a new Minister, I tell my hon. Friend that the point about information was the one thing that really stuck with me. In our response to the Select Committee, we committed to looking at that and deciding how best to manage it.

I agree that scrutiny committees should be able to access the information they need to do their jobs effectively. I can see that some executives might seek to deny committees access to that information if they do not appreciate their obligations or understand the value of scrutiny. I want to take soundings from the sector and figure out how best to move forward before committing, but hon. Members’ case that this is something we should consider carefully will stick with me, and I will ensure that I take it away. If we decide that new measures are appropriate, I will of course come back to the Select Committee with those.

My hon. Friend the Member for Harrow East and the hon. Member for Sheffield South East also raised the role of elected chairs. My officials and I will speak to the sector and think about how best we can establish the impact of elected chairs on the effectiveness of scrutiny committees. In general, chairs should be selected on the basis of their skills, experience, integrity and objectivity, not of how amenable they are to the executive. Although the new guidance will remind councils that they already have the option to elect rather than appoint a chair, it is right that every council should decide for itself how to select its members.

Let me say a few words about some of the recommendations about which there is a small difference of opinion, which I hope I can explain. On the point about councils publishing a summary of resources, although the Government require councils to publish certain information for transparency purposes, making available details of the resources allocated to scrutiny would be difficult in practice, for the simple reason that councils often do not have a dedicated scrutiny officer or staff. Instead, they pull in resources as and when they are needed, so it may be difficult for them to produce accurate figures.

[Bob Blackman]

I remember that a former Secretary of State—namely, Sir Eric Pickles—believed absolutely in transparency, such that he insisted that every council must publish every item of expenditure in excess of £500. Given that I do not think that policy has changed, what is the problem with asking councils to publish what should be a considerably higher figure than £500?

[Rishi Sunak]

I agree that transparency is important, and I am glad that my hon. Friend supports the transparency agenda, which the Government continue to lead. Transparency is of course the best disinfectant and the best way for accountability to work in practice. There is a practical difficulty with trying to aggregate lots of small expenditures, which is why there is a £500 threshold in the transparency code. I agree that £50 here, £25 there and another £100 there may add up to a greater figure, but identifying all the individual components may be tricky. However, I agree that transparency is important.

The hon. Member for Blaydon mentioned training. In its report, the Select Committee suggests that the training offered to members and officers does not always meet their needs, and that the Department needs to better manage the funding it provides to the sector. Having looked into the training offer, I remain broadly happy with it. It already includes a specific two-day course for new or aspiring scrutiny chairs, and I am comfortable that, for now, it meets the needs of the sector.

I note that the Local Government Association wrote to the Select Committee to provide further details of the overwhelmingly positive feedback it has received about its training programme. The Committee will be aware that our new memorandum of understanding with the LGA sets out our expectation that it will remain responsive to feedback and ensure that the training it offers remains relevant and effective. However, I agree that training is important, and I hope that the response the Committee gets from the LGA reassures it that what is in place is at least a good foundation.

[Liz Twist]

I thank the Minister for those comments. Will he ensure that all authorities not only know that the training offer is there, but encourage their officers and members to take it up? We heard that not all authorities do that, so it would be really helpful if the Government, through the LGA, stressed that point.

[Rishi Sunak]

The hon. Lady is right. I note that in its oral evidence, the LGA recognised the need to get into councils that might not be doing scrutiny as well as they should. I think it will have taken that message away as a result of coming before the Select Committee and engaging on this topic, and I will pass that message on, too, to ensure that it was heard loud and clear.

[Mr Betts]

I am not sure whether the Minister covered this point. He spoke about the importance of access to information and about considering how that can be improved, but he did not make it clear whether that applies just to information held by councils themselves or to information held by other public bodies, such as the Department for Work and Pensions, the police service and the fire service, just as it already applies to the Department of Health and Social Care and its bodies at local level. Does he accept that scrutiny committees have a right to scrutinise and access information and witnesses from those other public organisations?

[Rishi Sunak]

I was talking specifically about information relating to councils’ own functions in the first instance. On the broader point, which was also raised by my hon. Friend the Member for Harrow East, there are existing mechanisms for health and crime because, when those structures were set up, those were the agencies that the sector felt it did the most partnership working with. I am happy to talk to the sector to find out whether there is appetite for a greater ability to scrutinise other bodies, whether that process would work practically, and whether the burden it would put on authorities is appropriate. It is important to recognise that many of those other parts of the public sector are scrutinised separately, and to ensure that there is not duplication of scrutiny. Every public agency tries to focus on its day job, so we need to get the balance right between having appropriate scrutiny and not duplicating scrutiny, which would mean taking focus and resources away from agencies doing their job.

[Mr Betts]

I thank the Minister for giving way a second time on this point. I hope that, having looked at that and talked to the sector about it, he will write back to the Select Committee with his findings. It is difficult to see where the Department for Work and Pensions has a spotlight shone on it often and effectively at local level. I recognise his point about putting burdens on local government. This is intended to be not a burden but an opportunity, which local authorities may take up if they wish. There would not be a requirement to scrutinise other bodies, but authorities would have the opportunity to do so if they wished.

[Rishi Sunak]

I will of course write to the hon. Gentleman when we have had conversations with the sector on that point.

[Bob Blackman]

I want to clarify the point about information, which goes absolutely to scrutiny. I made the point that the presumption should be that information should be available. Rather than the current position, in which officers grudgingly give information to scrutiny committees and suchlike, it should be for the legal officer to say why information should not be available. Will my hon. Friend look at that specific point in detail and come back to the Select Committee?

[Rishi Sunak]

Hopefully I can reassure my hon. Friend. The main point that I have taken from the debate from all contributions is about access to information and ensuring that it is not unreasonably withheld. It is tricky to get the balance right, making sure that time is not wasted and that information that is genuinely commercial or commercially sensitive in some other regard is protected. However, I have heard that message loud and clear and it is a fair point, so I will go away and think about it in more depth.

Of course, such conversations with the sector are already happening and if there is a path to do something different, we will consider it. I would be loth to commit to something now, but I can commit to examining the issue properly and seriously, given the weight and force of the arguments made.

It was reassuring to see that the Committee’s report acknowledges that scrutiny is working effectively in many councils. We should recognise that. Of course, we should accept that in some places it does not work as well as might be expected, but it does have a key role to play in ensuring local accountability and the effective delivery of services so it is important that councils know how to do it properly. I have committed to working with the sector to update the guidance, ensuring that it meets the needs of councillors and their officers, and I am happy to give further consideration to some of the topics I touched on earlier.

I thank hon. Members who have contributed to the debate. I am grateful to have had the opportunity to discuss this important topic. We are talking about scrutiny and, as was raised in Members’ comments, Select Committees, and in particular the Housing, Communities and Local Government Committee, which I am privileged to appear before, are a great example of how scrutiny can work in practice. It works best in this place—as it should in local authorities—when done on a collegiate basis, with people putting the interests of the public whom they serve first and working as a constructive friend of the people who are trying to make decisions. This Committee is a fantastic example for local authorities and the local government sector to look at. It is a pleasure to work with it, not just on this issue, but hopefully on other issues in the months to come.

Draft Somerset West and Taunton (Modification of Boundary Change Enactments) Regulations 2018 Draft Somerset West and Taunton (Local Government Changes) Order 2018

Rishi Sunak Excerpts

Wednesday 16th May 2018 General Committees

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

I beg to move,

That the Committee has considered the draft Somerset West and Taunton (Modification of Boundary Change Enactments) Regulations 2018.

[The Chair]

With this it will be convenient to consider the draft Somerset West and Taunton (Local Government Changes) Order 2018.

[Rishi Sunak]

It is a pleasure to serve under your chairmanship, Ms Buck. I thank the other members of the Committee for joining us here early in the morning. The statutory instruments were laid before the House on 29 March. If approved and made, they will provide for the abolition on 1 April 2019 of Taunton Deane borough and West Somerset district, together with their councils. They will also provide for the establishment of a new Somerset West and Taunton district covering the same geographic area, together with a new council for that district.

The Government, as our manifesto made clear, are committed to supporting local authorities that wish to combine in order to serve their communities better. The Government have announced to the House that we will consider any locally-led proposals for district mergers that are put forward by the councils concerned and that meet three criteria—namely, that the proposals will improve local government and service delivery, create structures with a credible geography, and command a good deal of local support.

Let me turn to the proposal that these two district councils developed and submitted to us for the creation of a new district of Somerset West and Taunton. The councils have a history of shared service partnerships. They are clear that the savings in that respect will be safeguarded by implementing the merger and that the merger itself will secure savings of some £3.1 million per annum. That includes safeguarding the £2.6 million of savings already secured through partnership working, and saving an additional £500,000.

In bringing forward their proposal to merge, the two councils have undertaken an engagement programme, actively engaging with residents and stakeholders from December 2016 until February 2017. The programme included an independent, demographically representative phone poll; a dedicated website with background information and an online questionnaire; a series of eight public roadshow events throughout the area; a series of nine consultation events involving groups of parish and town councillors and representatives of community groups; and various meetings with key stakeholders—businesses, partners and other local bodies. The independent phone poll was undertaken to assess local residents’ awareness of West Somerset’s financial position and of the merger proposal. By the end of the consultation period, more than 60% of the population of the two areas were aware of both.

Following their period of engagement, the two councils submitted their joint proposal to merge to the Secretary of State for Communities and Local Government on 27 March 2017. On 30 November, the then Secretary of State, my right hon. Friend the Member for Bromsgrove (Sajid Javid), told the House that he was minded to implement the proposal made by West Somerset Council and Taunton Deane Borough Council.

There followed a period for representations until 19 January 2018. The Secretary of State received a number of representations, of which 114 supported the proposal, 14 were neutral and 123 were opposed. On 22 March, the Secretary of State announced that he was satisfied that the previously announced merger criteria had been met and that he intended to implement the proposed merger and to lay before Parliament the necessary secondary legislation. That was not just the Secretary of State’s view. It was shared by the two district councils and the county council; a significant majority of councillors in the area; all public bodies that made representations to the Secretary of State—all were either supportive or neutral—the local enterprise partnership and a majority of the businesses and voluntary sector organisations that made representations; and a majority of the town and parish councils that made representations. In addition, my hon. Friend the Member for Taunton Deane (Rebecca Pow) remains supportive of the proposal. Of course, that view is not shared by all, and I am sure that we will hear later from my hon. Friend the Member for Bridgwater and West Somerset.

Let me turn briefly to the statutory framework. The Somerset West and Taunton (Modification of Boundary Change Enactments) Regulations 2018 vary the Local Government and Public Involvement in Health Act 2007 in its application to West Somerset and Taunton Deane councils during the period from when the regulations come into force until 31 March 2020. Section 15(4) and (5) of the Cities and Local Government Devolution Act 2016 provide that such regulations,

“may be made only with the consent of the local authorities to whom the regulations apply”.

In this case, both councils have consented to the regulations.

The Somerset West and Taunton (Local Government Changes) Order 2018, if approved, will be made under section 10 of the 2007 Act and makes provision for various items: abolishing the existing local government areas for West Somerset and Taunton Deane; establishing a new district coterminous with the previous areas of West Somerset and Taunton Deane, named Somerset West and Taunton; winding up and dissolving the district councils of West Somerset and Taunton Deane and establishing a new council, Somerset West and Taunton District Council; providing appropriate transitional arrangements, such as a shadow authority and shadow executive; and establishing, in agreement with the councils, any necessary electoral arrangements. We expect the Local Government Boundary Commission for England to be able to undertake a full electoral review of the new area before the elections in May 2019.

In conclusion, in considering the two draft instruments, we are assessing the merits of merging the West Somerset and Taunton Deane districts and councils to become Somerset West and Taunton, with a new district council. In this instance, it is clear that the two councils have come together to work on a locally-led proposal that, if implemented, will improve local government and service delivery in the area and command a good deal of local support. The council area also represents a credible geography. The proposed new council of Somerset West and Taunton has wide support, and both councils have consented to the making of the regulations. I have confidence that the local area will implement the district council merger by next April, to allow the good people of Somerset West and Taunton to elect their new council in May next year. On that basis, I commend the regulations and the order to the Committee.

--- Later in debate ---

[Rishi Sunak]

It is a pleasure to have the opportunity to respond to the comments made by the hon. Member for Makerfield, my right hon. Friend the Member for South Holland and The Deepings, and my hon. Friend the Member for Christchurch. I hope that I can address all the points that they raised and, of course, those of my hon. Friend the Member for Bridgwater and West Somerset, whom I fully respect for representing his constituents in the way that he sees fit.

I shall start with the misconception, which ran through comments from hon. Members on both sides of the Committee, that in some way central Government are, as my hon. Friend the Member for Bridgwater and West Somerset said, riding roughshod over local government. My right hon. Friend the Member for South Holland and The Deepings referred to a delicate relationship between central and local government, and I agree with him. It is important that central Government do not ride roughshod over or dictate to local government, which is why the Government have been exceptionally clear that we want to see locally-driven proposals and will consider locally-driven, locally-originated proposals against a set of criteria, which the previous Secretary of State reiterated in the House. That speaks to the very nature of what we are talking about here. I want to remind hon. Members on both sides of the Committee that this was a locally-driven process. The Government received a proposal that had been generated, researched, engaged with and consulted on by the local councils in question, both of which have consented to the making of the statutory instruments.

My hon. Friend the Member for Christchurch talked about an invitation. There was no invitation from central Government to the councils to put the proposal forward. It was entirely a result of their own work.

The hon. Member for Makerfield talked about the narrow council majority. I think it would be helpful for hon. Members to know the results of the council votes that were held in both areas. When the proposal was considered in Taunton Deane, 32 councillors were in favour and 16 against, with two abstentions. That is a majority of more than 64%. When West Somerset Council voted on the matter in December, 20 councillors were in favour and just three against, with one abstention. That is an 83% vote in favour. In aggregate, that combines to 70%. I will leave hon. Members to make up their own minds as to whether that it is a significant or a narrow majority.

Not only are local councillors in support, but the local area is too, including the county council, all public bodies, businesses, the voluntary sector and a majority of the parishes.

[Mr Liddell-Grainger]

I gently say to the Minister that that is not the case. I represent one of the areas, although I admit that I do not represent the other. When I talked to the local enterprise partnership, it had been asked whether it thought it was a good idea. Well, if people are asked whether they like blueberry pie, they tend to say yes. It was not given any facts; it was just asked whether it was a good idea. One of the reasons that it said so was that Hinkley Point C nuclear power station is in west Somerset. A lot of it has been predicated on that. I therefore say to the Minister that I am not sure that is correct.

[Rishi Sunak]

It is not just the local enterprise partnership. On my understanding, all businesses, voluntary organisations and public bodies that submitted formal representations were in support or not against the proposals, so I do not think what my hon. Friend says is accurate in that sense. Obviously, he is against the proposals, but my hon. Friend the Member for Taunton Deane (Rebecca Pow), who represents the other area, is firmly in favour of them.

The key point is about respecting the views of local government and the local area. As I hope I have adequately demonstrated, not only did central Government not impose anything; we did not initiate anything. We responded to a proposal that was put forward and strongly supported by the local councillors and local councils involved.

We have also heard about the so-called democratic deficit and whether people of both districts would have an adequate voice in the new electoral arrangements. As hon. Members have said, that is a misperception in the minds of the constituents who wrote in about that. Again, I will give hon. Members the facts and leave them to make up their own mind. There will be a reduction in the number of councillors across the entire area from 83 to 58, but the number of electors per councillor for the new council is 1,927. To put that in context, the average for the country for two-tier district areas is 1,925. I would argue that that lies squarely in the average for the rest of England in terms of democratic accountability and representation for ordinary people. People should be assured by that.

I was asked about service delivery, the reasons for the merger and the financial savings. In the first instance, it is important to note that the merger will safeguard the existing savings that are in place between the two councils, which are in excess of £2 million. Financially, West Somerset Council is not in the best of shape. That is not my view, but the view of the council’s leadership, the statutory section 151 officer, the independent auditor and the county council. They all make the point that if West Somerset Council finds itself in further financial straits, that would jeopardise the entire shared partnership structure in place between the two councils, which generates savings and saves people money on their council tax bill. Therefore, in the first instance, the merger safeguards an existing way of working and an existing amount of savings.

[Mr Liddell-Grainger]

I am sorry to be so boring about this. The Minister covers a very rural area as well. He just said, “If West Somerset has a problem,” but it does not. It has balanced its books for this year, next year and the year after. It is doing well, but yet again we are being told that that is not the case.

[Rishi Sunak]

I tell my hon. Friend that that is not just my view, but the view of his own council and the statutory section 151 officer, who believes that without this merger, the future of West Somerset Council is “not viable”. It is also the view of the independent auditor in the comments they have made and of the county council. I know that my hon. Friend has corresponded with the Department over several months. We remain of the view that the opinion of all the people locally involved with the council believe that this merger will safeguard the savings and that without the merger the financial situation will be extremely difficult.

On the future relationship and service transformation, I was asked about employees. That will obviously be a matter for the new council but it is worth pointing out that the two councils already operate a relatively deep shared partnership structure and use common employees in a single area. It is unlikely that there would be significant changes but that will be a matter for them.

[Yvonne Fovargue]

Will the Minister comment on the view that at least 80 redundancies will be necessary to achieve the savings that are predicted for the first year?

[Rishi Sunak]

I have not seen that number; I am not sure where that has come from.

[Mr Liddell-Grainger]

That has come from the councils themselves. The unions have done a lot of work on this. It is one in three jobs; that is where the savings are coming from—by getting rid of people. It is not a real saving; it is imaginary because it is necessary to get rid of people to make the saving.

--- Later in debate ---

[Rishi Sunak]

It is important to note that when we talk about savings of £3.1 million, only £0.5 million comes from the merger we are considering today. The remainder is already in place through the joint working and will be safeguarded by the merger. In terms of the incremental change, £0.5 million as a percentage of £3.1 million is relatively small. We are talking about safeguarding the existing joint working between these two councils, where there is not enormous duplication of staff, because in most instances there is already one set of staff delivering for both councils.

More broadly, the larger district council will be better at joined-up proposals for growth, whether it is Hinkley or developing a new university. It feels it will better execute its function as a strategic housing authority and dealing with stakeholders, all of whom prefer the efficiency and productivity of dealing with one entity. It also believes it will strengthen its hand when applying for various types of funding.

Turning to a couple of specific points raised about a unitary proposal, the Department has not received any formal unitary proposal for Somerset. Of course, should one emerge—

[Mr Liddell-Grainger]

Could I help the Minister again? I feel I am being too helpful. On the reason the county wants a unitary body, the leader of the county council came to see me and I will quote him next week in Westminster Hall. He said, “I’m going bust and want to take over the districts to balance my books.” Minister, we have a problem; let us not be cavalier.

[Rishi Sunak]

Far from being cavalier, the Government believe in doing things properly by due process. Should a proposal emerge from the county, of course we will consider it alongside the criteria that the previous Secretary of State laid out in Parliament. As I reiterated at the beginning, central Government will, as committed to do in our manifesto, support local areas that bring forward locally-driven proposals and consider them fairly and appropriately.

[Mr John Hayes]

The salient point is that the Minister has persuasively made the case that this proposal has emanated from the locality. If the locality, with the communitive interest I described at its heart, has requested that the Government consider these matters, then the Government are doing entirely the right thing in doing so. If the Minister is right—it seems from his evidence that he must be—he has satisfied my concern that these things must be driven by local people and local interests.

[Rishi Sunak]

I thank my right hon. Friend on one of the rare occasions that someone has changed their mind during a debate. I agree with him that not only have proposals been driven by the local area but they have been formally consented to by the two councils involved.

My hon. Friend the Member for Bridgwater and West Somerset made a detailed point about the definitions in the regulations and order we are considering. Of course, Taunton Deane is a district with borough status. That is very clear in the interpretation section of the order, which defines district councils for the purposes of the order. The definition is:

“‘the District Councils’ means West Somerset District Council and Taunton Deane Borough Council”.

I hope I have assured him that that was not missed.

Lastly, unfortunately my hon. Friend the Member for Bridgwater and West Somerset has raised some very personal allegations against the leader of another council, as he has in the past.

[Mr Liddell-Grainger]

Many times.

[Rishi Sunak]

Indeed. It is fair to raise those things if that is what my hon. Friend wants to do, but he has been told multiple times by the former Secretary of State, the Minister responsible for local growth, my hon. Friend the Member for Rossendale and Darwen (Jake Berry), and the Prime Minister that if he has serious allegations of any criminal or fraudulent activity, he should bring those to the police. He was told that as early as November last year, and also before that. Six months later, no one has received anything. I again urge him that if he has evidence, the appropriate course is to take it to the police.

In conclusion, I thank all Members for their spirited contributions this morning. At this point, we should wish the councils in West Somerset and Taunton Deane all the best as they embark on a new, bright future together as a new entity—Godspeed.

Question put.

Draft Dorset (Structural Changes) (Modification Of The Local Government And Public Involvement In Health Act 2007) Regulations 2018 Draft Bournemouth, Dorset And Poole (Structural Changes) Order 2018

Rishi Sunak Excerpts

Wednesday 16th May 2018 General Committees

[The Chair]

I will call the Minister to move the first statutory instrument, and debate on the second will follow. Debate on each statutory instrument may continue for up to one and a half hours. I remind the Committee that the debate should be confined to the statutory instrument being considered.

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

I beg to move,

That the Committee has considered the draft Dorset (Structure Changes) (Modification of the Local Government and Public Involvement in Health Act 2007) Regulations 2018.

It is a pleasure to serve under your chairmanship, Sir Henry. I am delighted to see so many hon. Members present. The statutory instruments were laid before this House on 29 March. If approved, they will provide for the abolition of the nine existing local government areas in Dorset and their councils, and similarly affect the existing boroughs of Bournemouth and Poole, the county of Dorset and the boroughs and districts in the county of Dorset. They will also allow for the establishment of two new local government areas and two new single-tier unitary councils for the area on 1 April 2019.

The Government, as made clear in our manifesto, are committed to supporting those local authorities that wish to combine to serve their communities better. We have also announced to the House that we will consider any locally led proposals for local government restructuring that are put forward by one or more of the councils concerned and that improve local government and service delivery, create structures with a credible geography and command a good deal of local support.

The Dorset councils’ proposals would establish a single tier of local government across the whole of Dorset, replacing the nine existing local government areas and their councils with two new local government areas and councils: one to cover the areas of Bournemouth, Christchurch and Poole, and a second covering the rest of Dorset.

Dorset estimates that that has the potential to generate savings of at least £108 million over the first six years. The full transformation programme, which unitarisation makes possible, offers the potential to save more than £170 million over that period. In bringing forward their proposal, the nine Dorset councils undertook extensive engagement and open consultation. That included a formal consultation from August to October 2016, comprising the following elements: an open consultation; a representative household survey; a survey of all parish and town councils; 15 lengthy deliberative workshops; nine in-depth telephone interviews with representatives of some of Dorset’s largest companies; and finally, the opportunity to submit written submissions.

[Simon Hoare (North Dorset) (Con)]

Could my hon. Friend amplify two points? First, the proposal is to create two new councils, not to merge existing local authorities; secondly, the most germane point is that this has been a grassroots-up proposal, not a top-down diktat.

[Rishi Sunak]

I thank my hon. Friend for both his points, which he made well and with which I am delighted to agree. This locally led and locally driven proposal came from the bottom up for Government to consider.

The consultation programme achieved well over 70,000 responses. There was clear support for moving to two unitary councils. In the representative household survey, 73% of residents were supportive. In general, across all the areas of Dorset, there was an emphatic preference for the proposed option, with 65% of residents in the representative household survey supporting it.

The then Local Government Minister, my hon. Friend the Member for Nuneaton (Mr Jones), told Parliament in February last year what criteria Government would use for assessing locally led proposals for local government restructuring, namely that the proposal is likely to improve local government in the area concerned; that it has a credible geography; and that it commands a good deal of local support.

[Conor Burns (Bournemouth West) (Con)]

The Minister is talking about the widespread grassroots support for the proposal. Will he also acknowledge that it enjoys my support as the Member of Parliament for Bournemouth West and the support of my right hon. Friend the Member for West Dorset, my hon. Friends the Members for Poole, for Mid Dorset and North Poole, for North Dorset and for South Dorset, and my right hon. Friend for Bournemouth East (Mr Ellwood)? Only one Member of Parliament in Dorset is in opposition to the proposal.

[Rishi Sunak]

I agree with my hon. Friend. He states the fact clearly: every Member bar one in the county of Dorset is supportive of the proposal.

[Sir Christopher Chope (Christchurch) (Con)]

I am that person, but I know that the Minister believes not in the tyranny of the majority but in democracy and the undertaking given by the Government in the House of Commons in 2015 that no local authority would be abolished without its consent. May I ask him to confirm that the criteria to which he has just referred were not published until after submission of the application? They were only published in response to a parliamentary question from me.

--- Later in debate ---

[Richard Drax (South Dorset) (Con)]

rose—

[Rishi Sunak]

Before I respond, I shall give way again.

[Richard Drax]

I want to put on the record that I support the move, as my hon. Friend the Member for Bournemouth West has said. Initially, I did not take part in the discussion or make a decision because I believe that it is one for local people and local councils. However, the evidence that they wanted it was overwhelming, so I back them.

[Rishi Sunak]

I thank my hon. Friend for that comment. I say to my hon. Friend the Member for Christchurch that I am happy to discuss the issue now, except I fear that he may want to return it in reference to the exchanges on the passing of the Cities and Local Government Devolution Act 2016 and the assurances he believes he was given. He has corresponded at length with the Department on that point. Suffice to say, I think there was a misunderstanding on his part about what was said. It was clearly set out by the then Secretary of State, my right hon. Friend the Member for Tunbridge Wells (Greg Clark), that the Government would not impose a top-down solution on local government but would respond to locally led and locally driven proposals. That was further clarified in the other place by Baroness Williams of Trafford, who made it explicitly clear that no one council should have a veto on restructuring proposals.

[Simon Hoare]

It is not only the noble baroness who has confirmed that point. In early December, during the Adjournment debate secured by my hon. Friend the Member for Christchurch, the then Minister, my hon. Friend the Member for Nuneaton (Mr Jones), confirmed in response to an intervention by me that unanimity was not required.

[Rishi Sunak]

My hon. Friend is absolutely right. In fact, my hon. Friend the Member for Nuneaton told the House that the Government’s intention was for those criteria to be assessed in the round and across the whole area subject to a reorganisation, and not to be considered individually by each existing council area.

Following on from that, on 7 November 2017 the then Secretary of State told the House in a written statement that he was “minded to” implement the proposal made by the Dorset councils. A period of representation followed, until 8 January this year, during which we received 210 representations. On the basis of the proposal, the representations and all other relevant information available, the Government are satisfied that all the criteria are met. On 26 February 2018 the Secretary of State announced his decision to implement the proposal, subject to parliamentary approval, and on 29 March laid the draft statutory instruments.

We believe that the proposed governance changes for which we are seeking parliamentary approval will benefit people across the whole of Dorset, in every district and borough. Our aim as a Government is to enable the people of Dorset to have as good a deal as possible on their local services. That is not the view of the Government alone; it is shared by 79% of all councillors across the whole of Dorset, and by other public service providers and businesses, including in particular those responsible for the provision of healthcare, and the police, fire and rescue, and rail services across Christchurch and the wider Dorset area.

As has been mentioned, on 29 November a number of my right hon. and hon. Friends with constituencies in the area wrote to the then Secretary of State, my right hon. Friend the Member for Bromsgrove (Sajid Javid), urging him to support the proposal submitted by the Dorset councils as the option that commanded strong local support and that will do the job that needs to be done. They stated that

“the further savings required to be made, if our councils are to continue delivering quality public services, can only be done through a reorganisation of their structures”.

The representative household survey, commissioned by the nine Dorset councils, estimates that 65% of residents across the whole of Dorset support the proposal. Of the nine Dorset councils, eight support the proposed change and have formally consented to the necessary secondary legislation.

Regarding the one Dorset council that does not support the proposal—Christchurch Borough Council—a third of its elected councillors do support the proposal. Those councillors wrote to my right hon. Friend the then Secretary of State, stating:

“We are acutely aware of the constraints on local government funding and the financial pressure that upper tier services are facing. We therefore consider it our duty to respond to these challenges by supporting the restructuring of local government in Dorset.”

Finally, it might be helpful to say something about the statutory framework.

[Toby Perkins (Chesterfield) (Lab)]

We have heard from many local Members about their support for the proposal. I have a letter here from the leader of Christchurch Borough Council outlining its view that Bournemouth and Poole could go together but, because 84% of residents voted against it in a referendum, Christchurch should be allowed to stay independent. Could the Minister explain why he came to the conclusion that Christchurch should be forced into it when the people seem to be saying that they are against it?

[Rishi Sunak]

I thank the hon. Gentleman for that intervention. I think the poll he refers to was an open-ended one run by the borough of Christchurch, which accounts for only 6% of the population of the Dorset area. Secondly, it is not only Christchurch Borough Council that is responsible for the services provided to the residents of Christchurch. The county council provides about 80% of those services. Across the piece, in the representative household survey, which was designed to be statistically representative, there is strong support among more than 60% of Christchurch residents for this particular proposal.

[Simon Hoare]

I have searched, as I am sure the Minister has, all the regulations and guidance for the status of a referendum in this process, but it cannot be found. To call it a referendum is incorrect. It was a parish poll, which is not binding on the commissioning body—that is, the borough council—and it is certainly not binding on Her Majesty’s Government.

--- Later in debate ---

[Rishi Sunak]

I thank my hon. Friend for his intervention. He is right to raise the validity of the poll. I am sure we will return to that issue later. Suffice to say, there are questions as to whether the poll is valid and they should be taken into consideration.

[Sir Christopher Chope]

In that case, why did my right hon. Friend the then Secretary of State encourage the holding of that local poll, at tremendous expense to local people, implying that the decision taken would be compelling evidence in the case?

[Rishi Sunak]

It is not my understanding that the then Secretary of State encouraged the running of that poll. Regardless of that—and my hon. Friend knows this because my right hon. Friend the previous Secretary of State told him—he did take the poll into account when considering the proposals.

To return to the statutory framework, the regulations vary the Local Government and Public Involvement in Health Act 2007 in its application to the case of the Dorset councils during the period from when the regulations come into force until 31 March 2020. The regulations require the consent of at least one relevant authority. In this case, Bournemouth, Poole, the county of Dorset, five of the districts within Dorset and eight of the nine councils in Dorset have consented to the regulations being made.

In conclusion, the merits of the abolition on 1 April next year of the nine existing local government—

[Sir Christopher Chope]

Before the Minister finishes, will he say something about the legal action that is being taken against the Government by Christchurch Borough Council on the advice of leading counsel, the letter before action that was sent, and the implications for good local government in Christchurch if we end up with litigation that ultimately results in the regulations being quashed?

[Rishi Sunak]

I am happy to do that. The Department has received what is called a pre-action protocol letter from Christchurch Borough Council, informing of its consideration of a judicial review. It is important to note that that is not the start of a formal legal proceeding. It is an exploratory letter, to which the Government have responded extremely robustly. We have set out in no uncertain terms why we believe—

[Simon Hoare]

rose—

[Simon Hoare]

I note the use of the word “again”, Sir Henry. Is my hon. Friend the Minister aware that in two conferences with leading counsel, which my hon. Friend the Member for Christchurch has referred to and one of which he attended, leading counsel advised Christchurch Borough Council that there were no grounds for a judicial review?

[Rishi Sunak]

That is a very interesting intervention from my hon. Friend.

[Sir Christopher Chope]

I do not think we are going to make much progress in this Committee if there is such misrepresentation of the facts. Leading counsel was indeed asked by Christchurch Borough Council to look at the legal issues. It was only after the regulations were laid that the council went back to leading counsel and said that it was shocked to find that they were retrospective in effect. On going back a third time to leading counsel, they advised that the borough council had a good case for quashing the regulations and wrote a letter asking the Government to withdraw them. The point made by my hon. Friend the Member for North Dorset is completely irrelevant.

[Rishi Sunak]

My hon. Friend the Member for North Dorset was making a point about the substance of the case. I can tell the Committee the content of the Government’s letter in reply to the pre-action protocol letter. It notes that there is a bad case on the grounds of delay and that the substance of the case is wholly without merit; the Government believe that it is not arguable at all. I have no doubt we will hear from Christchurch Borough Council in due course.

[Richard Drax]

I want to make one more important point. As far as the decision makers are concerned, there was cross-party agreement—all parties agreed to this.

[Rishi Sunak]

I thank my hon. Friend for that intervention. It is important to note that there is widespread support from different parties and people from different walks of life, across the entire piece, for the regulations.

That is an important note to conclude on. This is a locally led proposal, submitted by the Dorset councils, which we believe will improve local government and service delivery in the area. It represents a credible geography and commands a good deal of local support. I have full confidence in the area to implement the unitarisation by next April, enabling the elections to the new council in May next year. On that basis, I wish the councils involved the best of luck and good speed with all the proposals they want to bring forward. I commend the regulations to the Committee.

--- Later in debate ---

[Rishi Sunak]

It is with some trepidation that I attempt to respond to my hon. Friend the Member for Christchurch, not only because he held this brief a long time ago and is a distinguished Member of this House, but because when I was a small boy growing up in Southampton, his was perhaps the first local MP’s name that I knew. I put on the record my respect and admiration for his persistence in pursuing this course. It is right that we have a proper thorough, detailed debate on the issues he has raised, which we will no doubt continue to discuss after we consider this statutory instrument and move on to the next.

I would also like to thank my right hon. Friend the Member for West Dorset and my hon. Friends the Members for North Dorset and for South Dorset for their contributions. I also note the presence of my right hon. Friend the Member for Bournemouth East (Mr Ellwood) and my hon. Friends the Members for Poole and for Mid Dorset and North Poole, who I am sure we will hear from later.

We have covered so many issues. In the short time I have to respond, I will summarise and pick up in detail in the next part. In short, I echo the comments of my right hon. Friend the Member for West Dorset. He put it very well: ultimately, what we are discussing today is about people. Often frail and elderly, they are the people whom we as MPs or councillors across Dorset have the privilege to represent. Those representatives have thought long and hard about how best to serve those people, and how best to provide the public services that their constituents rely on in the financial climate and changing demographics they face.

Those councillors and people in the local area, who know their constituents best, have put forward the proposals we are considering. As I opened, I will close: these are locally led proposals, which have been developed and supported extensively across Dorset. We have heard a lot about polls, retrospection, invitations and reorganisations but we should leave with this point in our heads: across the entire area, including in Christchurch, there is a good deal of support for these proposals. They will improve local government in the area, as we heard so eloquently from my right hon. Friend the Member for West Dorset. They will improve local government for the people who live in those places. The geographies we are considering make logical sense. As the Committee considers these undoubtedly complex and difficult matters, I leave them with that in mind. This is not a top-down, imposed reorganisation.

The Government have responded constructively and diligently to the proposals that were put forward. It has taken an incredible amount of time, care and patience to consider those proposals carefully. That has included engaging with my hon. Friend the Member for Christchurch and others on many occasions on the points he has consistently raised. I am fully confident that the proposals in front of the Committee deserve our support and will benefit the good people of Dorset in the years to come. I commend the regulations to the Committee.

Question put, That the Committee has considered the draft Dorset (Structural Changes) (Modification of the Local Government and Public Involvement in Health Act 2007) Regulations 2018.

[Sir Christopher Chope]

No.

--- Later in debate ---

[Rishi Sunak]

I beg to move,

That the Committee has considered the draft Bournemouth, Dorset and Poole (Structural Changes) Order 2018.

It is a pleasure to commence debate on the second order. The order, which is made under section 7 of the 2007 Act, has several provisions. First, it will introduce a single tier of local government for a new local government area, comprising the existing boroughs of Bournemouth, Christchurch and Poole, and a single tier of local government for a new local government area covering the remainder of the county of Dorset. It will wind up and dissolve the counties and boroughs of Bournemouth and Poole, and the county of Dorset and its districts, and it will provide appropriate transitional arrangements, a shadow authority and a shadow executive for each new unitary area. Finally, it will establish, in agreement with the councils, new electoral arrangements. The order provides contingency warding arrangements for the May 2019 elections, but it is important to note that we expect the Local Government Boundary Commission for England to undertake a full electoral review of the area in time for those elections.

The order gives practical force to our debate and the restructuring that we have already considered. This is a locally led proposal submitted by the Dorset councils, which if implemented will, we believe, improve local government and service delivery in the area. It represents a credible geography, and commands a good deal of local support. I have full confidence in the local area to implement unitarisation by next April, enabling elections for the new councils in May next year. On that basis, I commend the order to the Committee.

--- Later in debate ---

[Rishi Sunak]

It is a pleasure to wind up this spirited and thoughtful debate. I echo my hon. Friends in thanking the hon. Member for Oldham West and Royton for the typically constructive attitude he has brought to our proceedings. I look forward to many more discussions with him in the months to come. I join my hon. Friends in paying tribute to Mr Rowsell, who we have heard a bit about. He and his team have worked tirelessly over the past few years to ensure that we arrive in this debate having gone through thorough diligence and due process. He is a sidesman of the 11th century priory in Christchurch, which I believe has one of the longest naves in England.

[Sir Christopher Chope]

The longest.

[Rishi Sunak]

I am corrected by my hon. Friend; it is the longest. Mr Rowsell follows his father in that role, and I thank him and his team for all the work they have done on this project.

I will briefly touch on some of the substantive issues raised. All the contributions from Members of Parliament from Dorset have been thoughtful and passionate, and they have demonstrated clearly that they take seriously their duty to represent their constituents, to disagree respectfully and to ensure that all voices are heard. I thank them for the way they have approached proceedings.

We have heard a lot about the parish poll in Christchurch and what it meant or did not mean. Not only did the Secretary of State consider that poll in the round with all the other representations, but he also received representations that were highly critical of the conduct of that poll, with many suggesting that it should have little validity at all. It is worth bearing in mind that the properly representative sample survey that was done as part of the formal consultation shows that 63% of residents in Christchurch supported the principle of two unitaries and 64% supported the specific proposal that we are considering.

It is the Government’s view that there is nothing retrospective about what we are doing here. That is similarly the view of the Joint Committee on Statutory Instruments, which has not commented particularly on this matter. These statutory instruments modify existing legislation, so that in the future certain acts can take place. According to most people’s common understanding, retrospectivity means changing the legality of an act that has already happened. In this case no act has happened. We are talking about things that are to happen.

[Sir Christopher Chope]

Will my hon. Friend give way?

[Rishi Sunak]

I will not, because there is lots to cover, and my hon. Friend and I have discussed this topic a great deal.

Let me turn to the questions raised about council tax and savings. On council tax, it is right that people are expecting a view, and I can set out for the Committee the position, not just in this case but in previous cases. There is a joint committee in place at the moment involving the councils in both proposed unitaries. It will produce proposals for the Government setting out its plans for council tax harmonisation. The Government’s job is to bring legislation to the House—which we will before the summer—that sets in place the maximum number of years over which equalisation can take place. It is then for the local authorities to decide on the exact path. It is worth bearing in mind that in the previous round of unitarisations in 2009, the period envisaged in the legislation was five years. That is something that hon. Members can work with, and soon enough we will come to a view. In the meantime, we are happy to take representations from colleagues and anyone else on that important matter. As my hon. Friend the Member for Christchurch pointed out, there are specific criteria with which those will be judged.

I will conclude by paying tribute—

[The Chair]

Order. Minister, I am afraid we have to put the question now.

Question put, That the Committee has considered the draft Bournemouth, Dorset and Poole (Structural Changes) Order 2018.

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

Rishi Sunak Excerpts

3rd reading: House of Commons & Report stage: House of Commons
Tuesday 15th May 2018 Commons Chamber

[Madam Deputy Speaker (Dame Rosie Winterton)]

As indicated on the Order Paper, the Speaker has certified that the Bill relates exclusively to England on matters within devolved legislative competence. As the Bill has not been amended, there is no change to that certification.

Under Standing Order No. 83M, a consent motion is required for the Bill to proceed. It has been tabled and is available in the Vote Office. Does the Minister intend to move the consent motion?

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

indicated assent.

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

[Dame Rosie Winterton in the Chair]

--- Later in debate ---

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

I beg to move, That the Bill be now read the Third time.

This Bill, above all, promotes fairness; it promotes fairness for hard-working business rate payers hit by a tax hike that they could not have anticipated—the so-called staircase tax—and fairness for those who struggle to find somewhere to live while properties lie empty for years. That was why we moved quickly to introduce the Bill and ensure that ratepayers, in particular, receive the urgent help that it will provide. I thank hon. Members on both sides of the House for their contributions and support in helping us to achieve this aim.

[Tim Farron (Westmorland and Lonsdale) (LD)]

The Minister is making important points and the Bill does some important things. However, it could do something important that it does not—it does not allow local authorities, such as his and mine, in very rural areas to vary council tax on second homes. He will be aware that in the Yorkshire dales and the Lake district, vast percentages of communities are empty most of the year round because homes are not lived in. That undermines schools, public transport and the sustainability of such communities. Will the Government listen to local authorities and local communities and allow council tax to be raised to tackle the problem of excessive second-home ownership?

[Rishi Sunak]

I thank the hon. Gentleman, my constituency neighbour, for his intervention. He is right to point out the issue of second homes in rural areas, which he and I have local familiarity with. I gently disagree when he says that nothing is being done. As he will be aware, the Government introduced a stamp duty surcharge for second homes. Much of the funds raised from that have gone to schemes, perhaps in his constituency and certainly in mine, in areas with high second-home ownership—for example, in Hudswell in Richmondshire, where community land trusts have been funded to create affordable housing for local occupancy. Beyond that, local plans, which no doubt will be discussed in the forthcoming debate, also allow local communities to have control over who is living in new build properties.

Work is being done, and all that followed the work done by the coalition Government to remove the automatic discount for second homes. The hon. Gentleman will be aware that that was in place for many years. The coalition Government removed the necessity for the discount to apply, and now the vast majority of second homes are not eligible for a council tax discount, but he is right to point out the issue. The Department is looking more broadly at the loophole with regard to business rates applying to second homes and them then qualifying for an exemption through small business rates relief. This has been raised by hon. Members, including my hon. Friend the Member for St Austell and Newquay (Steve Double) and others from Cornwall, so the hon. Member for Westmorland and Lonsdale (Tim Farron) can rest assured that I am keeping an eye on this issue.

I return to the Bill, which deals with empty homes. I thank our partners in the rating sector for their invaluable help with the draft provisions, together with the very detailed and technical work that was done by officials, to whom I pay thanks. This has helped us to bring effective legislation to the House that navigates the intricacies of ratings law.

I also pay tribute to the work of the Housing, Communities and Local Government Committee. Not only did its comments on the definition of a void find their way to the language in the final Bill, but I noted the points raised on Second Reading by the Committee Chair, the hon. Member for Sheffield South East (Mr Betts). He is not in his place, but I thank him and assure him that I look forward to working with him in future to ensure that Bills from my Department and in my brief go through the adequate legislative scrutiny process that we were fortunate to enjoy doing with the Committee. Lastly, I thank the hon. Member for Oldham West and Royton (Jim McMahon) for his input and constructive attitude in the Bill Committee. I very much look forward to working with him on future local government measures.

In conclusion, this Bill delivers on our commitment to fairness and supports those in our country who want to build a better life. It is a Bill for those looking for a place to call home. It is a Bill for small businesses. It is a Bill that I hope we can all welcome, and I commend it to the House.

Draft East Suffolk (Local GOvernment Changes) Order 2018 Draft East Suffolk (Modification of Boundary Change ENactments) Regulations 2018

Rishi Sunak Excerpts

Wednesday 9th May 2018 General Committees

[The Chair]

I note that the hon. Member for Elmet and Rothwell has started to take his clothes off. If anyone else wishes to take their jacket off and so on, within reason I am very happy for you to do so.

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

I beg to move,

That the Committee has considered the draft East Suffolk (Local Government Changes) Order 2018.

[The Chair]

With this it will be convenient to consider the draft East Suffolk (Modification of Boundary Change Enactments) Regulations 2018.

[Rishi Sunak]

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

The draft statutory instruments were laid before the House on 19 March. If approved and made, they will provide for the abolition on 1 April 2019 of Suffolk Coastal and Waveney districts, together with their councils. They will provide for the new East Suffolk district to cover the same geographic area and for a new council for that district.

The Government are committed to support local authorities that wish to combine to serve their communities better. We shall consider any locally led proposals for district mergers that are put forward by the councils concerned, and that improve local government and service delivery, create structures with a credible geography and command a good deal of local support.

I shall describe briefly the area that we are considering. East Suffolk is the home of a multi-million pound industry and household names including EDF Energy and BT’s information and communications technology global research and development centre. East Suffolk sits on the major trade route of the A14, linked to the port of Felixstowe. It also has a diverse and beautiful environment, with 49 miles of coastline. Lowestoft sits on the northernmost part of the Suffolk coast and is famous for being the most easterly town and the first place to see the sunrise in the United Kingdom. Home to two piers, an award-winning theme park, museums and a theatre that is home to the Royal Philharmonic Orchestra, the town is a firm favourite with visitors. Suffolk Coastal and Waveney District Councils cover the entire Suffolk coastline and share transport infrastructure that includes rail links, the A12, ports, market towns and beach resorts. Within the existing Suffolk Coastal district, Felixstowe is the largest and busiest container port in Britain.

The proposal that we are now considering re-creates the local government area of East Suffolk, which was originally created in 1888. Re-creating that area reflects the long shared history of its different parts. In local government terms, the two existing district councils have a history of shared service partnership, creating ongoing savings in excess of £20 million since 2010. Those savings will be safeguarded by implementing the merger proposal.

In proposing the merger, the two councils have undertaken an extensive engagement programme, actively engaging with residents and stakeholders from September to December last year. The programme included an independent and proportionally representative phone poll; a media campaign with press releases and promotional social media; information packs for town and parish councils; an open consultation via a dedicated webpage and an online survey to collect comments on the proposal; formal communications to all major stakeholders; presentations and talks at resident and business forums and public events; and finally a frequently asked questions document updated with commonly raised questions or concerns.

The independent phone poll commissioned to find out local residents’ views suggested that 72% of residents were in favour of the proposal to form a new single district council, once provided with further information on what the proposal would do. All the local institutional stakeholders such as the NHS, the county council, major business groups in Suffolk and all their neighbouring authorities were also in favour.

The councils submitted their joint proposal to merge their respective authorities to the Secretary of State for Communities and Local Government on 3 February 2017. The proposal set out that implementation of the merger would lead to a new district of East Suffolk with a population of almost 240,000 and would yield further savings of £2.2 million per year on top of the £20 million saved as a result of joint working since 2010.

On 7 November last year, the Secretary of State told the House that he was

“‘minded’ to implement the…proposal I received from Suffolk Coastal and Waveney district councils”.—[Official Report, 7 November 2017; Vol. 630, c. 48WS.]

There then followed a period for representations, until 8 January. The Secretary of State received a number of representations; in total, there were 20 in favour, one neutral and four against. None of the representations against the proposal raised points that had not been raised in the consultation undertaken by the local authorities.

I will add that those representations include five further representations beyond the 20 received during the representation period and referred to in the explanatory memorandum. I will arrange for the explanatory memorandum to be updated if Parliament approves the order and the order is made.

On the basis of the proposal, the representations and all other relevant information available, the Secretary of State was satisfied that the previously announced merger criteria had been met. Therefore, on 8 February this year, he announced his intention to lay before Parliament the necessary secondary legislation to implement the proposal.

Finally, Members might find it helpful if I touch briefly on the statutory framework. The draft East Suffolk (Modification of Boundary Change Enactments) Regulations 2018 vary the Local Government and Public Involvement in Health Act 2007 in its application to Suffolk Coastal and Waveney during the period from when the regulations come into force until 31 March 2020. The regulations are made under section 15 of the Cities and Local Government Devolution Act 2016 and provide that the Secretary of State may, by regulations subject to the affirmative resolution procedure, make provision about the structural and boundary arrangements in relation to local authorities, under part 1 of the 2007 Act.

I turn to the draft East Suffolk (Local Government Changes) Order 2018. If approved, it would be made under section 10 of the 2007 Act and would make provision for a series of things: abolishing the existing local government areas for Suffolk Coastal and Waveney; establishing a new district coterminous with the previous areas of Suffolk Coastal and Waveney, named East Suffolk; winding up and dissolving the district councils of Suffolk Coastal and Waveney and establishing a new council of East Suffolk; providing appropriate transitional arrangements, such as a shadow authority and shadow executive; and, finally, establishing in agreement with the councils any necessary electoral arrangements. The Boundary Commission sees no difficulty with the approach that we are taking, and it is expected to undertake a full electoral review to re-ward both new areas before the elections in May 2019.

In conclusion, in considering the two draft instruments, we are assessing the merits of merging Suffolk Coastal and Waveney District Councils to create East Suffolk District Council. In this instance, it is very clear that the two councils in East Suffolk have come together to work on a locally led proposal, which, if implemented, would improve local government service delivery in the area, command a good deal of local support, and ensure that the council area represents a credible geography.

The proposed new council of East Suffolk is widely supported, and both district councils have consented to the making of these instruments. I have full confidence in the local area to implement the district council merger by next April, to allow the good people of East Suffolk to elect their new council in May next year. On that basis, I commend the regulations and the order to the Committee.

--- Later in debate ---

[Rishi Sunak]

It has been wonderful to see hon. Members use the debate as an opportunity to display their extensive knowledge of local government restructuring, stretching back to the 1970s—some time before I was born—and to hear them emphasise and assert their strongly held regional identities. I gently say to my hon. Friend the Member for Elmet and Rothwell that, as a North Yorkshire MP, I appreciate why any community would feel sad about not being included in God’s own county—and, if I might say so, the best part of Yorkshire.

I thank the hon. Member for Denton and Reddish for his thoughtful and constructive comments. I appreciate his support. I will listen to what he says on local government funding and discuss it with the new Secretary of State. He will know that we may have some differences on that score, but I appreciate his commitment to local government in all of its aspects, and I enjoy our exchanges here and elsewhere.

I turn to my hon. Friend the Member for Brigg and Goole. When I first came into Parliament, I had the job of filling the shoes of the previous Member for Richmond, which was an impossibly tall order, and now I have perhaps the even bigger task of filling my hon. Friend’s shoes—so great was he in his job that it now has to be split between two Ministers. Unfortunately, I cannot fully answer his questions about devolution, as they come under the portfolio of the Under-Secretary of State for Housing, Communities and Local Government, my hon. Friend the Member for Rossendale and Darwen (Jake Berry), who I know will engage fully with him on them. However, on unitarisations and mergers, the criteria laid out by the previous Secretary of State last year in a written ministerial statement, and further emphasised since, refer to

“a good deal of local support”.—[Official Report, 7 November 2017; Vol. 630, c. 48WS.]

That is the test that the Secretary of State has to ensure is met, and he will judge each case on its merits. That is with regard to mergers and unitarisations, rather than devolutions, which I am sure the hon. Gentleman will pick up with my hon. Friend.

Turning finally to my hon. Friend the Member for Christchurch, it is a pleasure to see him after our discussion last week in the debate on West Suffolk. I will touch on the specific points that he made. Having debated the issue a couple of times with him, the Government simply do not agree with the view that there is not widespread local support for this merger.

As I laid out in my opening statement and then re-emphasised, an independently commissioned poll showed that 72% of local people supported the proposal. That was further supported by almost all locally elected representatives including Members of Parliament, the vast majority of councillors and all major stakeholders locally, including businesses, community groups, health trusts and chambers of commerce. On that point, we may have to agree to disagree.

[Sir Christopher Chope]

The Minister is not just disagreeing with me, he is disagreeing with the Secondary Legislation Scrutiny Committee of the other place, which drew the instrument to our attention on the grounds that there appeared to be “inadequacies” in the consultation processes.

[Rishi Sunak]

As my noble Friend Lord Bourne has said, we do not share the view of that Committee in reaching that conclusion. For the reasons that Lord Bourne and I have laid out, we think there is a substantial body of evidence to support the conclusion reached by the Secretary of State that there is considerable local support for these proposals. One test is clearly the extensive support from locally elected, democratically accountable councillors and Members of Parliament in East Suffolk.

Turning to my hon. Friend’s other point about democracy, I agree that people should feel that democracy is not too remote. He mentioned Lowestoft. I am pleased to tell him that, as a result of all the engagement that went on regarding the proposals we are considering today, new parishes have been created for Lowestoft and Alton. That was a result of the engagement that councils had with their communities, and was a response to their concerns. The creation of new parishes will ensure that the people in those communities have adequate representation.

On my hon. Friend’s point about warding and new boundary arrangements, there is a proposal to reduce the number of councillors by just over a third. That proposal was put forward by the councils themselves, which came to that number based on guidance from the Local Government Boundary Commission. Informal conversations have already been had with commission on the carrying out of a full re-warding should these statutory instruments be agreed to. As part of that process, there will be a full public consultation, as Members would expect from such a formal process.

In conclusion, I echo the comments made by the hon. Member for Denton and Reddish in paying tribute to all the councillors and bodies involved locally for the hard work they have put in over the past year to bring these plans to fruition. They are to be commended for their diligence, innovation and desire to serve their communities to the best of their ability. I hope hon. Members will join me in commending them by supporting these orders today.

Question put and agreed to.

Resolved,

That the Committee has considered the draft East Suffolk (Local Government Changes) Order 2018.

DRAFT EAST SUFFOLK (MODIFICATION OF BOUNDARY CHANGE ENACTMENTS) REGULATIONS 2018

Resolved,

That the Committee has considered the draft East Suffolk (Modification of Boundary Change Enactments) Regulations 2018. —(Rishi Sunak.)

Draft West Suffolk (Local Government Changes) Order 2018 Draft West Suffolk (Modification Of Boundary Change Enactments) Regulations 2018

Rishi Sunak Excerpts

Wednesday 2nd May 2018 General Committees

[The Chair]

I call the Minister to move the first motion and speak to both statutory instruments. At the end of the debate, I will ask the Minister to move the second motion formally.

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

I beg to move,

That the Committee has considered the draft West Suffolk (Local Government Changes) Order 2018.

[The Chair]

With this it will be convenient to consider the draft West Suffolk (Modification of Boundary Change Enactments) Regulations 2018.

[Rishi Sunak]

It is a pleasure to serve under your chairmanship, Mr Pritchard. I am delighted to tell Committee members that we are making a small piece of history by considering the first ever district council merger.

The two instruments were laid before the House on 19 March. They provide for the abolition of the Forest Heath district and the St Edmundsbury borough, together with their councils, on 1 April 2019. They also provide for the establishment of a new West Suffolk district, which will cover the same geographical area, together with a new council for it. The Government are committed to supporting local authorities that wish to combine or merge to serve their communities better.

I will briefly describe the area we are considering. West Suffolk is home to multimillion pound industries, including the home of British horse racing at Newmarket and world-renowned household names such as British Sugar, Greene King, Tattersalls, Treatt, CLAAS UK, Center Parcs and even Go Ape. It sits on the major trade route of the A14, which is linked to the port of Felixstowe.

West Suffolk has a diverse and beautiful environment, with thriving market towns and rural areas, including the stunning gallops in Newmarket, the historic abbey and cathedral in Bury St Edmunds and the protected Brecks landscape. Its workforce growth outstrips the United Kingdom’s average, and even that of nearby Cambridge. It is also home to many service personnel from the UK and the United States, with RAF Honington and the two largest US air force bases in the UK, RAF Lakenheath and RAF Mildenhall.

Historically, the area covered by what are now Forest Heath and St Edmundsbury councils fell within an area that has been known since Domesday as the liberty of St Edmund, which was administered by the abbey of St Edmund until the Reformation. The Local Government Act 1888 created three administrative county councils in Suffolk, including a county of West Suffolk, which covered the whole area of the liberty. The proposal that we are considering recreates that local government area and reflects the long shared history of the different parts of the area.

In local government terms, the two existing district councils that we are replacing have a history of shared service partnership, which has created ongoing savings in excess of £4 million per year. That will be safeguarded by implementing the merger proposed in the instruments.

In bringing forward the proposals and formulating its plans, West Suffolk has undertaken extensive engagement and open consultation. The councils undertook a programme of engagement with residents and stakeholders from May to the end of August 2017, including an independent, proportionally representative phone poll; a media campaign, including press releases and promotion on social media; information packs for town and parish councils; an open consultation via a dedicated webpage; an online survey; formal communication to 162 stakeholders; presentations and talks at resident and business forums, and at public events; and staff briefings for frontline employees.

The opinion research commissioned to find out local residents’ views suggested that 70% were in favour of the proposals to form a new single district council. All the local institutional stakeholders, such as the NHS, the police, the county council and major business groups in Suffolk, and all their neighbouring authorities, are also in favour. When the council received comments that expressed concerns, it went back to those people to explain how their concerns would be addressed.

The councils submitted a proposal to merge the authorities on 28 September. That proposal made it clear that implementing the proposed merger would lead to a new district of West Suffolk with a population of almost 180,000, and would yield further savings of £850,000 per year on top of the £4 million per year saved as a result of their joint working.

On 7 November last year, the then Secretary of State told the House what criteria he would use for assessing locally led proposals for merging district councils—first, that the proposal is likely to improve local government in the area concerned; secondly, that the proposal commands local support; and, lastly, that the proposed merger area is a credible geography. On 30 November, the Secretary of State told the House that he was minded to implement the proposal made by the two councils. There followed a period for representations, during which the Secretary of State received seven representations from the local area. All the responses received relating to the West Suffolk council merger were in favour of the change. On the basis of the proposal, the representations and all other information available, the Secretary of State is fully satisfied that all the relevant criteria are met.

It may be helpful to say something about the statutory framework and why there are two statutory instruments to implement the West Suffolk merger proposal. The West Suffolk (Modification of Boundary Change Enactments) Regulations 2018 vary the Local Government and Public Involvement in Health Act 2007 in its application to Forest Heath and St Edmundsbury during the period from which the regulations come into force. The regulations are made under section 15 of the Cities and Local Government Devolution Act 2016, which provide that the Secretary of State may, by regulations subject to the affirmative resolution procedure, make provision about the structural and boundary arrangements in relation to local authorities under part 1 of the 2007 Act. Sections 15, 4 and 5 of the 2016 Act provide that such regulations can be made only with the consent of the local authorities to which the regulations apply. In this case, both councils have consented to the regulations.

The West Suffolk (Local Government Changes) Order 2018 will, if approved, be made under section 10 of the 2007 Act. It makes provision for abolishing the local government areas of Forest Heath and St Edmundsbury, and it establishes a new district with the previous areas of Forest Heath and St Edmundsbury named West Suffolk. It winds up and dissolves the district councils of Forest Heath and St Edmundsbury, and it establishes a new council—West Suffolk District Council. It provides appropriate transitional arrangements, such as a shadow authority and a shadow executive, and it establishes, in agreement with the councils, any necessary electoral arrangements.

In considering the two draft statutory instruments, we are assessing the merits of the merging of Forest Heath District Council and St Edmundsbury Borough Council, and the creation of West Suffolk council. In this instance, it is clear that the two councils in west Suffolk have come together to work on a locally led proposal, which, if implemented, will improve local government and service delivery in the area. It commands a good deal of local support, and the council area represents a credible geography. The proposed new council of West Suffolk is widely supported, and both councils have consented to making these regulations. I have full confidence that the local area will implement the district council merger by next April to allow the good people of west Suffolk to elect their new council in May next year. On that basis, I commend the regulations and the order to the Committee.

--- Later in debate ---

[Rishi Sunak]

I turn to the questions raised by my hon. Friend the Member for Christchurch, who has discussed these issues at length, both with the Department and with me, not only in Westminster Hall last week but through extensive correspondence. First, on the issue of retrospection, which has been covered by our previous correspondence and that of the Leader of the House, these particular regulations have been cleared by the Joint Committee on Statutory Instruments. If there was any question of their legality, the Joint Committee would have reported that and brought it to the attention of the Committee. It did consider the issue of retrospection on the equivalent regulation that he mentioned. The Government are entirely satisfied that the regulations are wholly lawful and do not raise any issues of having any retrospective effect whatsoever.

[Sir Christopher Chope]

Before the Minister goes on to the next point, can he explain why the alteration of the 2007 Act, by regulations brought in and being debated today, is not retrospective?

[Rishi Sunak]

Very simply, because the acts that are to happen have not yet happened. Most people’s understanding of the idea of retrospective legislation is to change the legality of an act that has happened in the past. In this instance, no such act has yet happened; it is to happen in future, therefore there is no question of retrospective legislation.

My hon Friend’s other point on assurances that he feels he was given in the House previously is the subject of correspondence between him and the Department, as has been clarified multiple times. Perhaps he misunderstood what was being said in the House. It was clarified later in the House of Lords by Baroness Williams of Trafford that it was not the intention of the legislation that one council could block a reorganisation proposal that the rest of the councils in an area had proposed.

There is of course a distinction between a merger, which we are considering in this case, between two councils that consent to it, and a reorganisation across an entire area where two tiers of government are involved. As the correspondence clarified, one council should not be able to exercise a veto to prevent all the other councils of an area taking a proposal forward. I know that my hon. Friend will not be happy with that response, and that he will continue to press me and others on the issue. I look forward to continuing my conversations with him.

The final issue that my hon. Friend the Member for Christchurch raised was about an impact assessment on business. The statutory instruments before the Committee have no direct impact on business or the voluntary sector. Any future impact would be due to the decisions of the council, which will be accountable to the local people. It is worth pointing out that business locally was entirely supportive of the proposals, no doubt because of the councils’ great track record of making savings by operating together, and the promise of more savings in the years to come.

Turning now to the questions raised by the hon. Member for Gedling, first, he seemed to suggest that seven might be a particularly low number of representations. It is worth saying that that was the second round of representations. The councils themselves conducted an extensive period of representation and engagement with people across the area before they submitted their proposal. Unsurprisingly, the need for further representations was reasonably limited.

I do not have every one of the representations before me. I can tell the hon. Gentleman that the issues raised included the democratic accountability of the future council, and people’s wish to make sure their voice would still be heard. I am pleased to say that the council’s proposal on that score is a modest reduction in the number of councillors from 72 to 64, which will bring the average size of each ward—the electorate per councillor —into line with the English national average of about 1,925. In the new council it will be 1,919. That was one of the ways in which the council was able to provide reassurance.

[Vernon Coaker]

That is a helpful answer. Have there been any proposed changes to the town and parish councils in the area, or do they stay exactly the same? They are obviously close to, and often they give a voice to, people who might otherwise not engage with the district council.

[Rishi Sunak]

There is no direct impact on town and parish councils. Those decisions, of course, will be a matter for the new council. One thing that has been raised is the issue of borough status for one of the areas that we are considering—St Edmundsbury, which has borough status. However, there is provision in the order for the new authority to apply for borough status. It will apply in the normal way to the Privy Council under the existing charter process.

The hon. Gentleman raised the question of the headquarters and what the new council would do. It is probably worth bringing to the attention of those not intimately familiar with the workings of the councils in question that they already work essentially as one operational council. There is already a single headquarters, which is West Suffolk House in Bury St Edmunds, and all the organisational, management and executive functions have been merged.

[Vernon Coaker]

Will the Minister confirm that the new council’s expectation is that there will be no job losses?

[Rishi Sunak]

That will be a decision for the new council to make. I can confirm that the transfer of employees from the two different authorities to the new one should be relatively straightforward under TUPE, because they are all employed in one organisation, for the most part.

It is worth bearing in mind what the councils want to do—the hon. Gentleman will probably understand—and if there is a single operating management structure but two decision-making structures, that creates extra complexity in time and processes. That time will be freed up, and half the estimated £850,000 savings will be the non-cash freeing up of capacity, which can then be deployed on serving residents and constituents better.

Some of the other examples that the authorities have given would be to do with single reporting requirements, improvement of financial systems, removing the need to reconcile between different budgets, and broader and better planning of infrastructure and housing, which can now happen over a wider area. That will ensure that people have better choice, and it will not end at the council boundary as it currently does.

The hon. Gentleman’s last question was about Suffolk County Council. He will be pleased to know that the leader of that council is on the record as saying that he believes that the model we are discussing is the strongest model for moving forward in the first instance; he mentioned potential changes down the line. Before us today is a proposal that is locally led, locally driven and widely supported by all local participants and that will deliver real value for money and real change for residents on the ground. I therefore hope that the hon. Gentleman and other members of the Committee will join me in commending the work of all those in west Suffolk involved in bringing this historic moment into being, and in wishing them every success on the journey ahead.

Question put and agreed to.

Resolved,

That the Committee has considered the draft West Suffolk (Local Government Changes) Order 2018.

draft west suffolk (modification of boundary change enactments) regulations 2018

Resolved,

That the Committee has considered the draft West Suffolk (Modification of Boundary Change Enactments) Regulations 2018. —(Rishi Sunak.)

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

Rishi Sunak Excerpts

Committee Debate: 1st sitting: House of Commons
Tuesday 1st May 2018 Public Bill Committees

[The Chair]

Copies of written evidence that the Committee receives will be made available in the Committee Room.

We will now begin line-by-line consideration of the Bill. No amendments have been tabled, so we will proceed by considering in turn whether each clause should stand part of the Bill. There will be an opportunity to debate each clause. I suggest that the Minister should start the debate on each clause. Other Members will then be free to catch my eye and speak to that clause. A Member may speak more than once in a single debate. I hope that explanation is helpful.

Clause 1

Hereditaments occupied or owned by the same person

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

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

It is a pleasure to serve under your chairmanship, Mr Wilson. I thank all Committee members for being here promptly to discuss this technical but important Bill, which I hope will not detain us for too long.

Clause 1 delivers on the commitment made by the Chancellor at last year’s autumn Budget to address what became known as the staircase tax. The clause will restore the previous practice of the Valuation Office Agency from before the Supreme Court decision in respect of contiguous properties in the same occupation or ownership. We discussed on Second Reading the background to why the measure is necessary, and I have provided more detail about the measure in correspondence with the Select Committee on Housing, Communities and Local Government. I will not repeat that background, other than by saying that the clause is welcomed by the rating surveyor profession and supported by the Federation of Small Businesses.

The clause amends section 64 of the Local Government Finance Act 1988 to provide that, in a defined set of circumstances, two or more hereditaments shall be treated as one. Those circumstances, which are described in new subsections (3ZA) and (3ZB) of section 64, are: where the hereditaments are occupied by the same person or, if they are empty, owned by the same person; where the hereditaments are contiguous—that is defined later in the clause, and I will come to it shortly—and, in respect of occupied hereditaments, where none is used for a wholly different purpose. That will restore the rule that applied before the Supreme Court decision that contiguous hereditaments are assessed as one.

In preparing the clause, we had to ensure that we replicated previous practice in respect of the meaning of “contiguous”. The clause therefore introduces new subsection (3ZD), which defines what is contiguous for these purposes. New subsection (3ZD)(a) provides that

“two hereditaments are contiguous if…some or all of a wall, fence or other means of enclosure of one hereditament forms all or part of a wall, fence or other means of enclosure of the other hereditament”.

That ensures, for example, that two adjacent rooms on the same side of a common corridor separated by a wall are contiguous, but that two rooms on opposite sides of a common corridor are not. It also ensures that two buildings on the same side of a road that share a common party wall are contiguous, but that two buildings on opposite sides of a street or common access road are not. Importantly, that replicates the previous accepted practice of the VOA.

New subsection (3ZD)(b) provides that hereditaments on consecutive storeys of a building are contiguous if

“some or all of the floor of one hereditament lies directly above all or part of the ceiling of the other”.

That ensures that consecutive storeys of a building are contiguous but excludes non-consecutive storeys where the intervening storey is in a different occupation or ownership. Again, that replicates the previous practice of the VOA.

We believe that this approach ensures that hereditaments would still be contiguous, even if a wall or floor plate separating the hereditaments contained a space such as a service void occupied by the landlord. However, respondents to the consultation and the Select Committee were less certain on that point. We therefore decided to put that beyond doubt by adding the words at the end of subsection (3ZD) that make it clear that hereditaments

“are not prevented from being contiguous…merely because there is a space”

such as a service void between them in a different occupation or ownership.

Finally, new subsection (3ZC) ensures that chains of contiguous hereditaments in the same occupation or ownership will still meet the tests. For example, it will ensure that floors 3, 4 and 5 of a building in the same occupation are treated as contiguous and as one hereditament, even though floors 3 and 5 are not themselves contiguous.

The change in the VOA’s practice following the Supreme Court decision affected the 2010 rating list as well as the current 2017 list. That has led in some cases to sudden and dramatic backdated rate demands, which have been of particular concern to the estimated 1,000 small businesses that, as a result of the decision, have lost the generous small business rate relief they rely on. Clause 1(2) therefore ensures that the measure applies retrospectively to 1 April 2010 in support of affected ratepayers.

That is why it is so important that the Bill does not go beyond the objective of restoring the previous practice that applied. I am pleased to say that, by working with organisations such as the Rating Surveyors Association, we are confident that we have met that objective, which the Select Committee confirmed in its report on the Bill.

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

It is a pleasure to serve under your chairmanship, Mr Wilson. I repeat my thanks to the Minister for making the effort to meet before the Committee to go through some of the technicalities of the Bill. That will save the Committee from a headache. However, there are still some questions outstanding, including about the loss of income to local authorities. The autumn Budget book said:

“Local government will be fully compensated for the loss of income as a result of these measures.”

That was stated by the Chancellor, but it is not what is being offered today. Local authorities are being told that they will not be compensated because in effect they are in no worse a position had the High Court ruling not been made. That point was raised by my hon. Friend the Member for Sheffield South East (Mr Betts), the Chair of the Housing, Communities and Local Government Committee, and we know from his subsequent contributions that the Select Committee continues to have those concerns.

Nor do we know yet what the impact will be across different local authorities, because that information has yet to be provided. We have not been provided with data to understand the local authority-by-local authority impact, so we do not know, for instance, how many are caught in 100% rate retention schemes, where they will have to pay costs. Nor do we know whether there are particular concentrations of properties in local authorities or whether they are spread evenly throughout the country, where such an impact would be marginal. We should endeavour not just to make legislation that we believe to be in the public interest—of course, that is important—but to make good legislation, with a solid, tested evidence base and with any necessary questions asked at the appropriate time. I would say now is the appropriate time to ask such questions. Let us see the detail on the local authority-by-local authority impact, particularly as the Government do not seem to be honouring the commitment they made in the autumn Budget.

The other, broader point—I will be careful not to stray too far from the Bill—is that the Government have taken into account what the business community told them and the Bill reflects that. I welcome that. The Government have been flexible and considered the impact of unintended consequences, which is a measure of good government. It is not a measure of bad government that could be perceived as, for instance, a U-turn. I recognise that our politics sometimes supports that type of language. In that context, I find it difficult to understand why other concerns raised following the revaluation and technical fall-outs of the business rate system have not been taken into account, such as the impact on cash machines in convenience stores.

In my town of Royton, the last bank is due to close. It will be the sixth bank to close in the town centre. The convenience store stepped up and provided a cash machine, so that people in the town could access money to do their shopping and, of course, support the market on the precinct, which relies heavily on cash transactions. A cash machine in the town is very important, but the turnover of that cash machine now contributes to the rates liability of the premises. A convenience store that would previously have been under the small business rates relief threshold, and would probably not be paying business rates at all, will in some situations now pay business rates because the turnover of the cash machine takes it over the threshold.

Good government means taking into account the impact of that and recognising that if convenience stores are stepping up when the banks are pulling out of towns, they ought to be supported, not be at a financial disadvantage as a result. That is just one example, but there are others that have been raised by the business community, the Federation of Small Businesses and the Association of Convenience Stores. We ought to reflect on that.

I would welcome some detail on that, even if provided at a late stage, after Committee, and I know that the Chair of the Select Committee would too. Many of these issues are not politically contentious—that is the spirit in which we made our previous offer and in which we are working today. There is broad support for them in the community, and we ought to work together to try to see them through. There were a number of items in the Local Government Finance Bill, which fell when the election was called, that need to be progressed, because local government is asking for them to be progressed. We ought to get together, see which of those elements have cross-party support and take them forward sooner rather than later.

[Rishi Sunak]

Let me put on record my thanks to the hon. Gentleman for, as ever, the constructive way in which he approaches our discussions on this and other measures.

To turn to his first point on compensation for local authorities and what was said in the Budget document of last year, the reference to compensation in that document specifically related to the switch to the consumer prices index in business rates indexation and the extension of the pubs relief scheme. I fully appreciate that the document could have been clearer on that point. As a result, my Department issued a letter to all local authorities two days after the Budget to make it clear that local government would not be compensated for this specific tax measure. As we have previously reiterated, we consider those extra revenues to be a windfall that came as a result of a Supreme Court decision.

The new legislation will ensure that the position is restored to where we were beforehand, so there should be no net loss to local authorities. That said, the hon. Gentleman raised the issue of rates retention. We are aware of his point—that under the rates retention scheme, some local authorities may see a small impact on their overall retained business rates. That would potentially occur in pilot areas, where the percentage of rates retained locally is different in the year that the refund will be paid, compared with the year in which the authority first received the windfall from the Supreme Court decision. We have previously said that it is very hard, if not impossible, for us in the Department to quantify that impact, but officials believe that it is small. That said, we are considering the points made in the submission by London Councils and the Greater London Assembly on that issue.

On the broader support for businesses through the business rate scheme, I am delighted that hon. Gentleman welcomes our support of small business. This is one measure, but there are others. I point to the Budget last year and the year before that, where we doubled small business rate relief, which was widely welcomed by businesses, including the FSB. We took almost 600,000 smaller business out of rate relief. In addition, there was a £435 million package to target ratepayers who face the steepest bills as a result of the revaluation. That included something that was warmly welcomed in my constituency and I am sure many others: the £1,000 pub discount voucher, which has also been taken up.

Lastly, we brought forward by one year the indexation of business rates from the retail prices index to the consumer prices index, which is worth some £2.3 billion over five years. Hopefully, the hon. Gentleman will agree that that shows strong support for small business. Another measure that the FSB has welcomed, and which was part of the Local Government Finance Bill that fell at the last election, was business rates relief for plant nurseries—a measure that was also the result of a Supreme Court decision that changed settled practice and which had cross-party support. He will be aware that we recently laid a written ministerial statement recommitting the Government to legislate to reverse that decision. Indeed, that decision will be made retrospectively, so that plant nurseries will be exempt from business rates and treated as agricultural property. I look forward to working with him on that, and hopefully getting his support when the time comes.

Question put and agreed to.

Clause 1 accordingly ordered to stand part of the Bill.

Clause 2

Higher amount for long-term empty dwellings

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

[Rishi Sunak]

As we have discussed in the past, our housing market is not working as well as we would like. Young people are struggling to get on the property ladder, and to enjoy the same opportunities as their parents and grandparents. Today, the average price of a house in England is almost eight times the average income, compared with four times the average income in 1999.

The Government are committed to boosting housing supply to ensure that hardworking people have a secure place to call home. Our reforms put us on track for an average of 300,000 homes to be delivered per year by the mid-2020s. Although building new homes is undoubtedly a fundamental part of fixing a dysfunctional market, we must also make more use of the our existing stock. It cannot be right that while many are waiting for a house to call home, thousands of properties stand empty, some for years. Homes left empty for the long term can be a blight on a neighbourhood, as well as the site of crime and antisocial behaviour.

[Scott Mann (North Cornwall) (Con)]

I have spoken to the Minister about this several times, and I know he understands the challenges we face in Cornwall with second home ownership and vacant properties. How will the Bill differentiate a second home and a vacant home?

[Rishi Sunak]

My hon. Friend has raised second home ownership in his rural constituency many times with me and other colleagues, and he is right to do so. Rural areas face challenges with second home ownership—coming from a rural constituency myself, I fully sympathise with some of his points.

Current legislation makes a distinction between second homes and empty homes. We are considering long-term empty homes, which are defined as homes which are “substantially unfurnished” and have been unoccupied for two years. Second homes are covered by a different part of council tax legislation, and the Government previously removed the necessity for local authorities to charge a discount on council tax. They are now allowed to charge the full amount. My hon. Friend will be aware that the Department is considering the treatment of second homes and business rates—he and other colleagues have asked me whether it is appropriate for some second home owners registered for business rates to benefit from small business rate relief and therefore pay no taxes, and whether our legislation captures fair use of that provision correctly. I am currently investigating that.

Before 2013, councils could not collect council tax from properties that had been empty for up to six months. Since then, we have ensured that councils can charge the full rate of council tax on such properties. That same year we enabled local authorities to charge a council tax premium of up to 50% on long-term empty homes. That power has been taken up by nearly 90% of councils, all but three of which applied the full 50% premium in 2017. 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. The new homes bonus scheme gives local authorities the same financial reward for bringing an empty home into use as for building a new one, and the Government have allocated £7 billion in new homes bonus payments to local authorities since 2011. Following those interventions, the number of properties left empty for six months or more has reduced by a third since 2010, from 300,000 to just over 200,000. The Bill goes even further, and doubling the cap on the empty homes premium will allow local authorities to strengthen the incentive to bring empty homes back into use.

Different areas will have different housing needs and different numbers of long-term empty homes. It is therefore right that decisions on whether to apply a premium and the exact rates to be charged are taken at local level as 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 in 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 sale or rent. We published guidance to that effect in 2013, reminding local authorities to take into account the reasons why a property is empty.

Hon. Members may finally wish to note that this provision would not bring any additional properties within scope of a premium. Only properties that could have been liable might be affected by the new higher premium.

[Jim McMahon]

The Labour party supports the Bill, but our manifesto suggested going further. Rather than a 200% premium, there would be a 300% premium and consideration of bringing the empty period to a year. There is a reason for that: the housing markets across the country are very different. The Bill will not address the problem of the concentration of empty homes in London. Figures provided by the House of Commons Library show that 20% of City of London properties are empty. In Westminster and in Kensington and Chelsea, one in 10 properties are empty.

Such properties are owned by people who think nothing of paying twice the amount of council tax that a usual resident does because they have the financial means to pay it without that having an impact on their pocket. I am not sure that this measure goes anywhere near where it needs to go to address the region of the country with the largest housing demand. We know about the housing pressures in London and that many of the properties are held by property investors, a number of which are foreign-based. The measure will not address that, and the Government have not made a determined effort to address it.

It is bad enough that properties that have been in the community for some time are being bought up, but it is a scandal that brand-new properties—whole tower blocks in some cases—are built, but in the evening there are no lights on because not many people live there. They are built but held as investments with no intention of people living there. The Government need to think about what financial measures they can use to encourage owners of properties in that very particular market to bring them back into use. We build houses for people to live in, not for wealthy institutions to hold with no intention of anybody ever living in the property.

In some housing markets—we experience this in the north of England—empty homes are the result of a broken housing market. The Labour Government introduced the housing market renewal project to address a fundamentally broken housing market in which there was no latent demand from local people to buy the properties, and those who were able to buy a property did not want to live in the areas where properties were empty. When the housing market renewal scheme was cancelled in 2010, the Government turned their back on those areas.

Some areas have been brought back into use, and many local authorities are introducing innovative schemes. In Liverpool and Stoke, local authorities are selling empty properties for £1 as a way to encourage people to get on to the housing ladder. We know from reports that the people who have benefited respect the schemes. The properties would not have been on the housing market had it not been for those schemes, so it is a double win. The initiative enables empty properties to be brought back into use and gives somebody the chance to get on the housing ladder when in other circumstances they would not be able to afford to do so.

In other areas with similar housing characteristics, a number of properties were earmarked for demolition under housing market renewal—the properties were purchased and the windows boarded up—but the Government removed the money in 2010. The boards came off the windows and the properties were sold to private landlords. Taxpayers are paying through the housing benefit bill for what is generally substandard accommodation in areas with a broken housing market, and are doing so for properties that generally do not meet the decent homes standard. In Greater Manchester, 40% to 50% of the £350 million a year we pay in housing benefit to private landlords is for properties that do not meet a decent standard.

The country could use that money better to provide decent, safe properties with good solid tenures where people enjoy living, in areas where there is a high-quality environment and the roads are safe, and where play areas provide a safe place for children to play, not just terraced streets that were built to support mill workers. Now that the mills have closed, those houses are just not desirable for many people. The Government need to take a broader view of how empty homes affect different parts of the country, and they must bring forward more active proposals for London, given how wealthy investors are holding properties. We also need a plan for areas where the housing market is weak. These measures will go some way to addressing that problem, but they will not address the inherent weakness in the local housing market where the owner-occupier element is weak.

We need a genuinely joined-up plan. This is not about a sticking plaster to support local authorities that have had their budgets cut dramatically, or about raising tax; this is about bringing empty homes back into use. The Government’s response, particularly since the empty homes fund was deleted, seems to be: “Well, if local authorities bring homes back into use, they will be the beneficiaries because they will get a new homes bonus payment”. However, the new homes bonus payment is retrospective, and we would be expecting local authorities to find money from their base revenue budget to bring empty homes back into use at a time when many of them cannot afford to pay for social care and children’s safeguarding. The Government need to come forward with a plan and funding to support local authorities to bring empty homes back into use. Taxing people who own those properties is one element of that, but in some cases direct grant funding will be needed to bring accommodation back into use.

[Rishi Sunak]

I thank the hon. Gentleman as always for his thoughtful comments. The two substantive points he mentioned were whether the level of the premium is too low at 100%, and whether two years is too long as a measure for an empty property. On whether the premium is too low, we need to strike a careful balance between providing a strong incentive for bringing empty homes back into use, and not disproportionately penalising homeowners who may be struggling to sell or rent out a property or to complete any major renovations that might be required. We believe that doubling the premium cap strikes the right balance. Scotland and Wales also have a premium of 100%, but I understand the hon. Gentleman’s point.

On whether the qualifying period for an empty home should be less than two years, it is worth noting—I know this from the correspondence that the Department receives—that some owners of empty homes face circumstances that make it difficult for them to bring their empty homes back into use quickly. That could be a renovation or the time taken to put something on the market with a difficult set of conditions. There may also be delays as a result of the probate process, for example. Again, I think the two-year period strikes the right balance.

[Jim McMahon]

Any scheme, even with a 12-month qualifying period, can have exemptions that take into account individual circumstances. There is already a scheme to deal with properties that are under probate, which is clearly outside the control of the executors who are trying to dispose of it. That can be managed. However, a number of landlords own properties and have no intention of letting them out. They will simply flip them over into different names to avoid paying the tax, and a more concerted effort to deal with such issues is important. The truth is that it would be much more difficult for people to keep flipping the property if we had a 12-month period—they can currently do it every 24 months.

[Rishi Sunak]

The hon. Gentleman is right that there are exemptions. For example, there is a six-month council tax free period for probate, and then the clocks starts. The problem is trying to define ex ante the individual circumstances in which it might be fair to have a period of more than one year. That is why we believe two years is the right amount of time—it provides flexibility but also serves somewhat as an incentive to bring homes back into use—but I understand his point, and why people would take a different view on what the right period should be.

On the broader strategy for empty homes and local authorities, I agree with the hon. Gentleman that there are examples of individual local authorities coming up with good, innovative ways to tackle to problem of empty homes. He mentioned some, but I am aware of examples in Bolton and Kent where local authorities have come up with successful ideas, whether loans, discounts or other schemes, to bring empty homes back into use. That is why our approach is the right one. He might disagree with the quantum of funding but, at £7 billion, the new homes bonus is substantial and acts as an incentive to local authorities to come up with schemes to bring homes back into use. They will be financial rewarded—I appreciate that that will be after the fact, but that is as it should be—for success in bringing empty homes back into use. That serves as a carrot, which is the right approach. Rather than the Government telling each local authority exactly what to do, we provide a framework for rewarding good behaviour and let individual local authorities innovate. Hopefully, increasing the premium today will serve only to improve the situation.

The hon. Gentleman is right to point out that, in the long term, we should not rely on that as a source of funding. We would rather not have empty homes, and want to ensure that everybody who wants a home has one to live in. The fewer empty homes there are, the better.

Question put and agreed to.

Clause 2 accordingly ordered to stand part of the Bill.

Clause 3

Extent, interpretation and short title

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

[Rishi Sunak]

This is a standard clause on the jurisdictional application of the Bill. My officials are in contact with their counterparts in the Welsh Government, who are considering whether to request that we extend the Bill to Wales. As soon as we hear from them, I will inform the Committee and the House and adjust as required.

Question put and agreed to.

Clause 3 accordingly ordered to stand part of the Bill.

Bill to be reported, without amendment.

Oral Answers to Questions

Rishi Sunak Excerpts

Monday 30th April 2018 Commons Chamber

[Jeff Smith (Manchester, Withington) (Lab)]

8. What assessment he has made of the financial sustainability of local authorities in 2018-19.

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

Local government will have access to more than £45 billion in core spending power in this financial year. In addition, local authorities estimate that they will keep around £2.4 billion in business rates growth.

[Jeff Smith]

I watched the Secretary of State’s impressive and moving speech in an Adjournment debate last week, and I know that the whole House will be pleased to see him in good health and back in his place. However, he is going to have to do better than his predecessor at supporting local government, because councils across the country are in crisis-management mode. They are raiding reserves to support revenue expenditure, and that is simply not sustainable. As Tory councils go bust, will he join me in congratulating Manchester’s Labour council on its excellent financial management in the face of some of the harshest and most unfair Government cuts faced by any council in the country under the Tories and the Liberal Democrats?

[Rishi Sunak]

I hope that Manchester is willing to thank this Conservative Government for backing it with the resources it needs: £13 million in housing infrastructure funds, £30 million for adult social care and, indeed, a business rates pilot that is delivering £20 million, benefiting businesses across Manchester. Those are the actions of a Conservative Government who are delivering for people across the country.

[Neil O’Brien (Harborough) (Con)]

If Leicestershire was as well funded as London’s Camden Council, it would be £350 million a year better off. Does the Minister agree that the only way of making good councils financially sustainable is to have a fair funding formula, with transparent formulae and up-to-date data? Will he look closely at the Leicestershire model for bringing that about?

[Rishi Sunak]

I could not agree more, and it was a pleasure to meet his local council to understand its model. It has a lot to commend it, and we will consider it as part of our fair funding consultation.

[Emma Hardy (Kingston upon Hull West and Hessle) (Lab)]

I am pleased that Labour’s Hull City Council rejected the Secretary of State’s predecessor’s and the local Liberal Democrat councillors’ proposal to spend all its reserves, because we have seen in Northamptonshire how badly that can go wrong. Does the new Secretary of State accept that spending the reserves is an incredibly bad idea?

[Rishi Sunak]

It is worth pointing out that council reserves across the country have actually increased over the past few years and that it is of course for local authorities to decide what prudent level of drawing down may be possible in any given year.

[Mr Peter Bone (Wellingborough) (Con)]

The previous Secretary of State was minded to put commissioners into Northamptonshire County Council. Will the excellent Minister update the House on when that may happen and by what method the House will be notified?

[Rishi Sunak]

I thank my hon. Friend for his question; I know that he is following this matter carefully, as are his colleagues from across Northamptonshire. The Department and the new Secretary of State will consider all the representations received over the past couple of weeks, and we will be making an announcement shortly, most likely through a written ministerial statement.

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

I wish the Secretary of State all the best in his new role and for his future health.

Despite the figures that the Minister has given, the Local Government Association says that there is a £5 billion funding gap in local government finances from 2020, and the National Audit Office says that the position is financially unsustainable. Will he therefore look carefully at the Housing, Communities and Local Government Committee’s recommendation about business rate retention? When business rate retention changes from 50% to 75%, instead of using that to cut public health grants and other grants, we say that local authorities should be allowed to keep the extra money so that they can properly meet the rising demand for social care for the elderly, for looked-after children and for people with disabilities.

[Rishi Sunak]

It was a pleasure to work with the hon. Gentleman’s Committee, and I look forward to reading its report in detail.—I thank the Committee for its work. As for the quantum of funding, he tempts me to pre-empt the results of the spending review, which is due next year. That will be the time to consider his point.

[Luke Hall (Thornbury and Yate) (Con)]

9. What steps his Department is taking to reduce homelessness.

--- Later in debate ---

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

Through the social care precept, the spring Budget last year and the recent local government finance settlement, councils will have access to £9.4 billion in dedicated funding for adult social care over the three years 2017 to 2020.

[Ged Killen]

May I associate myself with your kind words on the sad passing of Michael Martin, Mr Speaker?

Does the Minister believe it is economically viable for councils to continue to use what little reserves they have left in the delivery of adult social care in their area?

[Rishi Sunak]

I gently remind the hon. Gentleman of my earlier answer, which was that council reserves are some £20 billion across the country and are actually higher today than they were when we came into office. Councils will be able to increase spending on social care in real terms every year up to the end of this Parliament, and we are already seeing the results in action: delayed transfers of care are down by 34% in England. This is a Government who are delivering for people across the country.

[Mr Philip Hollobone (Kettering) (Con)]

Of the 575 beds in Kettering General Hospital, about 200 are occupied by patients, many of them elderly, who have completed their treatment but await transfer to social and other care. What can be done when the local county council simply is not up to the job of making sure that social care assessments are done in a timely way?

[Rishi Sunak]

I am sure my hon. Friend will forgive me for not being drawn on Northamptonshire specifically, given the circumstances there and the decision to be made. In general, he is absolutely right to highlight the importance of getting people swiftly transferred to appropriate social care. That has been a focus of the funding that the Government have put in, and the better care fund is ensuring that joined-up care is happening. As I have said, delayed transfers of care are down by almost a third in the past year.

[Derek Twigg (Halton) (Lab)]

May I ask the Minister how many local authorities his Department believes are close to not being able to carry out their statutory responsibilities for adult social care?

[Rishi Sunak]

None.

[Mrs Emma Lewell-Buck (South Shields) (Lab)]

14. What progress the Government have made on the delivery of the northern powerhouse.

--- Later in debate ---

[Mr Philip Hollobone (Kettering) (Con)]

T2. The potholes in Kettering and across Northamptonshire are absolutely terrible. What role does the Minister’s Department have in liaising with the Department for Transport to ensure that the millions of extra pounds that local councils have been given to fill in potholes are actually being spent and used correctly?

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

My hon. Friend raises an absolutely excellent point. I know that he will welcome the Government’s increased funding for pothole remediation after the winter that we have had, but I will take his point on board and ensure that local authorities are deploying those funds as quickly as possible.

[Yvonne Fovargue (Makerfield) (Lab)]

A recent survey, the first of its kind, into the working conditions of wellbeing and social workers, commissioned by the British Association of Social Workers, makes for sorry reading. Working conditions are described as extremely poor, and it is noted that nine out of 10 social workers work an average of almost 10 extra hours a week and that more than half are looking to leave the profession. What is the Minister doing to reduce the demands faced by social workers to avoid a disastrous exodus of talent and expertise?

[Rishi Sunak]

The hon. Lady is right to point out the important work that social workers do across the country in caring for some of the more vulnerable in our society. I know that our colleagues in the Department of Health and Social Care are examining the exact issue that she mentions, and I am sure they will be making a report in due course.

--- Later in debate ---

[Mike Kane (Wythenshawe and Sale East) (Lab)]

T9. Given that local services face a funding gap of at least £5.8 billion by 2019-20, when will the Minister provide an update on the roll-out of the 100% business rates retention pilots and end the uncertainty faced by Manchester City Council and Trafford Council, which cover my constituency?

[Rishi Sunak]

I am delighted that Manchester, like several other authorities, is a beneficiary of the Government’s 100% business rates retention pilot, which is ensuring that local authorities keep an extra £1 billion this year. We will announce plans for a further round of pilots shortly after the local elections.

[Several hon. Members rose—]

--- Later in debate ---

[Bambos Charalambous (Enfield, Southgate) (Lab)]

Will the Minister acknowledge that youth offending teams have achieved huge success in working with and supporting young people to prevent them from getting involved in crime? Will he therefore tell me why their funding has been halved from £145 million in 2010-11 to just £72 million in 2017-18, and why councils are still waiting to receive their youth justice grant allocations for 2018-19?

[Rishi Sunak]

I am not aware of the particular grant mentioned by the hon. Gentleman, but I am happy to look into it and write to him in due course.

[Rachel Maclean (Redditch) (Con)]

The hon. Member for Denton and Reddish (Andrew Gwynne) has now twice mentioned Worcestershire County Council and Northamptonshire County Council in the same breath in this place. Unfortunately, he seems to be trying to establish a false narrative. Is the Secretary of State aware that I have met Worcestershire County Council and received assurances that its finances are on a stable footing? To suggest otherwise seems simply to be scaremongering.

[Rishi Sunak]

My hon. Friend puts it very well, as she has done on previous occasions. It is not right to come to this place and scaremonger with regard to ordinary residents’ services. Worcestershire is delivering, and she is right to defend it.

[Maria Eagle (Garston and Halewood) (Lab)]

May I welcome the new Secretary of State to his post and wish him well? Does he agree that no new house should be sold leasehold? There is no excuse for it. What steps will he take to help the many hundreds of thousands of people, including my constituents, who are now being financially exploited by their freeholds being sold on to dodgy characters?

Christchurch Council: Governance

Rishi Sunak Excerpts

Wednesday 25th April 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 Davies. I congratulate my hon. Friend the Member for Christchurch (Sir Christopher Chope) on securing the debate and on his dedication to pursuing the cause. He is a living embodiment of the values that he quoted from the Conservative party manifesto about making a commitment to one’s community.

I approach the debate with some trepidation, not only because of my hon. Friend’s long and distinguished experience in this place, but because he held my position as a Minister with responsibility for local government, which is something I am new to. As a small boy growing up in Southampton, his was one of the first MP’s names that I knew. It is a great honour to respond to him. There is a lot to get through.

The Government’s aim is to enable the people of Christchurch to have as good a deal as possible with their local services. Those services are mainly the responsibility of Dorset County Council, but Christchurch Borough Council is responsible for about 20% of them. Those services are important to the local people.

Although I agree with my hon. Friend and share his joy that we will be leaving the European Union, a difference between him and the Government may lie in our belief that the proposed governance changes, for which we are seeking parliamentary approval, will benefit people across the whole of Dorset, including the residents of Christchurch borough.

With respect, it is important to note that that is not only the Government’s view, in contrast to what was just said. It is a view shared by many other people and organisations across Dorset, including Dorset County Council, which has major service responsibilities in Christchurch, as I have said; approximately 79% of councillors across Dorset; and major public service providers and businesses, particularly those with responsibilities for health, police, fire and rescue, and rail services across Christchurch and the wider Dorset area.

A number of my right hon. and hon. Friends with constituencies in the area share that view. On 29 November, they wrote to my right hon. Friend the Secretary of State and urged him to support the proposal that the Dorset councils have submitted, because it is the option that commands strong local support and does the job that needs to be done. They state that

“the further savings required to be made, if our councils are to continue delivering quality public services, can only be done through a reorganisation of their structures”.

The view is also shared by a third of the elected councillors to Christchurch Borough Council, who wrote to my right hon. Friend the Secretary of State and stated:

“We are acutely aware of the constraints on local government funding and the financial pressure that upper tier services are facing. We therefore consider it our duty to respond to these challenges by supporting the restructuring of local government in Dorset”

The representative household survey commissioned by the nine Dorset councils estimated that 65% of residents across the whole of Dorset support the proposal. Of those nine councils, eight support the proposed change and have formally consented to the necessary secondary legislation.

My hon. Friend the Member for Christchurch raised a number of specific points, which I shall do my best to deal with. The Secretary of State has had careful regard to the local advisory poll and its results, but as a poll of only 6% of the whole area’s population, we do not see it as casting doubt on his conclusion that there is a good deal of local support across the area.

On council tax harmonisation, as the Under-Secretary of State for Housing, Communities and Local Government, my hon. Friend the Member for Rossendale and Darwen (Jake Berry), told the House in a written answer on 18 December, it has consistently been

“for those implementing any unitary proposal to put to the Secretary of State their proposals”

for council tax harmonisation. I assure my hon. Friend the Member for Christchurch that it is for the Secretary of State to specify in secondary legislation the maximum period for harmonisation.

Although a maximum period of five years has been specified in previous restructuring, the Government have made no such specification to date. We intend to introduce secondary legislation on council tax harmonisation in June or July. In deciding the maximum period to specify, we will have regard to local preference, the impact on individual council tax bills across the areas concerned and the financial implications for the authorities.

I have highlighted the considerable support for the proposals by business. On the specific question about the timing for the combined authority, the Government have written to the various local authorities about their proposals for a combined authority. We await a response to those questions to take that proposal forward or not, as local authorities see fit.

My hon. Friend asked about the timing for laying the regulations before the House. Of course, it would not have been appropriate to lay them 13 months ago, as he said, because it was not clear exactly what proposals would emerge from the locally driven process. As I am sure he is aware, the regulations are specific to the proposals that have emerged, so they could only have been laid after the proposals were finalised. On consulting, all council executives were shown copies of the regulations and asked for their opinions.

On the comparison with Northamptonshire, it is important to note that the situations are markedly different. In Northamptonshire, the proposals for restructuring are the result of a best-value inspection, whereas in Dorset, they have come bottom-up from councils themselves. In both cases, there has been extensive consultation. The year-long development of proposals in Dorset means that there has been considerable and adequate engagement of local communities in that process.

In conclusion, if Parliament approves the draft legislation that we have laid before it, it will provide the people of Christchurch with more sustainable local governance and safeguard the delivery of local services. I accept that my hon. Friend does not share that view, and there will be an opportunity for it to be considered and debated by Parliament when considering the secondary legislation, which I look forward to doing with him and others in the coming weeks. I will close as I started, by commending my hon. Friend’s dedication to his local community in pursuing the matter with such verve.

Question put and agreed to.

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

Rishi Sunak Excerpts

2nd reading: House of Commons & Programme motion: House of Commons & Ways and Means resolution: House of Commons
Monday 23rd April 2018 Commons Chamber

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

I thank the hon. Members for Denton and Reddish (Andrew Gwynne) and for Oldham West and Royton (Jim McMahon) for their constructive comments on the Bill, and I will address some of their specific points shortly. We have had an incredibly interesting and entertaining debate, and one of the more succinct that I have heard in my time at the Dispatch Box. It has been extremely helpful to hear Members’ views today, ahead of further scrutiny of the Bill in Committee. It was great to hear some thoughts on what we can do to make progress on this issue.

The Bill will take forward two specific, short and important measures to promote fairness. It will provide fairness for hard-pressed businesses facing an unjustified tax hike, backdated where necessary. Those businesses have already paid their fair share, and deserve our support rather than being burdened by sudden and unreasonable demands. The Bill will deliver the Government’s goal of supporting those businesses, by restoring accepted and understood practice in the business rates system.

The Bill will also help those seeking a place to call home. It cannot be right that so many in our society are struggling to find somewhere to live while properties lie empty across the country.

[Scott Mann]

My hon. Friend is aware of the challenges that we face in rural areas, especially in Cornwall, where we welcome the vacant homes premium, but how will local authorities be able to differentiate holiday homes and vacant properties? Some holiday lets are not let for a long period of the year.

[Rishi Sunak]

My hon. Friend makes an excellent point and the issue of housing in rural areas was also raised by my hon. Friend the Member for Copeland (Trudy Harrison). He is right to highlight the issue. Legislation makes a distinction between long-term empty homes, which have been unfurnished and unoccupied for two years—those that the Bill seeks to address—and homes that are considered to be second homes, which are at least partially furnished and occupied on occasion. My hon. Friend the Member for North Cornwall (Scott Mann) will know that the coalition Government ended the presumption of a council tax discount for such second homes and levied a stamp duty surcharge on them. I will return to those measures when I respond to some of the other points raised.

My hon. Friend the Minister for Housing deserves enormous credit for the energy with which he has approached his new portfolio to make good on the Government’s commitment to fix our broken housing market, and the Bill is a small part of the process of doing that. Since 2010, we have introduced measures, including the £7 billion new homes bonus scheme, that have reduced the number of properties empty in England for six months or longer by a third, as we have heard tonight. But there is more to do, and the Bill will allow councils to levy an additional 50% premium on long-term empty homes, leaving the discretion on that decision with local authorities for all the reasons hon. Members have mentioned.

I pay tribute to my hon. Friend the Member for Harrow East (Bob Blackman), who has incredible experience of local government and brings it to bear on these matters. I join him in paying tribute to the hon. Member for Sheffield South East (Mr Betts), who we were all happy to see back in his place tonight. My hon. Friend raised the issue of pre-legislative scrutiny of the Bill and I am grateful for his comments. I also put on record my thanks for the work of the Housing, Communities and Local Government Committee in engaging extensively me with and my officials on the various technical issues raised. In particular, the Committee was right to pick up on the issue of voids and whether the Bill would capture the definition accurately. As my hon. Friend will have seen, the Bill takes into account the question that the Committee raised and we have worked with experts in the sector to tweak the definition. I think that will address the Committee’s concerns.

My hon. Friend rightly highlighted the issue of small businesses and cash flow, and urged us to press on as fast as we can. That is what we are trying to do. In response to letters from the Committee questioning the timing of the pre-legislative scrutiny, I said—and I repeat to the House tonight—that that is why we moved as quickly as we did. Instead of the normal process of 12 weeks, we had a slightly shorter process of eight weeks for that scrutiny, so that we could get the Bill on to the statute book as soon as possible and bring some relief to the small businesses facing cash-flow issues.

I turn to the oratorical tour de force from my hon. Friend the Member for Walsall North (Eddie Hughes). He said that the Bill is not sexy, but on the contrary these are the matters that keep local government Ministers, and the hon. Member for Oldham West and Royton, up at night. My hon. Friend will be pleased to know that we are focused on the detail. He was right to highlight to all hon. Members the particular delights of Beechdale, which they will all want to join me in visiting at the earliest opportunity, not least to shop the delights of Rob Mullett Butchers and the grocery store run by Jane and Phil. My hon. Friend also made a broader point about the importance of regenerating our urban centres, which was picked up by my hon. Friends the Members for Cheadle (Mary Robinson) and for South Suffolk (James Cartlidge). I can assure my hon. Friends that the Under-Secretary of State for Housing, Communities and Local Government, my hon. Friend the Member for Rossendale and Darwen (Jake Berry), who has responsibility for high streets, will have listened carefully to everything they said and will use their remarks as he develops policy to benefit our high streets around the country.

My hon. Friend the Member for Walsall North asked specifically about exemptions. I am pleased to tell him that council tax exemptions are already in place for people living in service accommodation or for those in the armed forces who are serving elsewhere and whose homes are therefore empty. Indeed, there are specific statutory exemptions for properties left empty for a purpose, for example when a person goes into care. There are also discretionary discounts for houses that are empty because of special circumstances such as hardship, fire or flooding, and I hope that addresses Members’ concerns on that point. My hon. Friend also kindly paid tribute to the drafting of the Bill, for which I cannot take enormous credit—I pay tribute to the officials, the ratings agencies and other experts who helped to draft the legislation to make it ready for today.

My hon. Friend the Member for Chippenham (Michelle Donelan) outlined yet again why she is a strong champion of small business in her constituency and around the country. She talked about entrepreneurship, and it is exactly right that our tax system and our policy supports the entrepreneurs not just of today, but of tomorrow. Supported by my hon. Friend the Member for Havant (Alan Mak), she, as ever, made a compelling case for why this Government and this measure will continue to support entrepreneurship across our nation.

I turn to some of the questions raised by the hon. Member for Oldham West and Royton. He asked specifically about the amount that will be raised from this measure. The stats are that 60,898 properties were subject to the measure in the last year, and 291 of 326 local authorities—90%—levied the premium. All but three of those levied the full 50%. That raised about £38.7 million, so an additional 50% would obviously double that. Just so that he has the full picture, if all local authorities used the full premium, that would equate to about £42 million and therefore, in total, £84 million.

[Huw Merriman]

Does the Minister agree that the true test of this policy will be if council tax amounts actually go down? That will mean that individuals are not behaving in the manner that we just described and will be paying less, thus freeing up the property for those who need it.

[Rishi Sunak]

My hon. Friend makes an excellent point: that should be the long-term test of this policy. It is there to provide an incentive for individuals to bring those homes back into use and indeed, that is what we have seen. Empty properties overall have fallen in the last few years from 300,000 to 200,000, but in areas that are specifically subject to this levy, we have seen a 9% reduction in long-term empty homes since the measure was introduced. Hopefully, we will keep seeing that rate of reduction increase to eliminate as many empty homes as possible. My hon. Friend also raised the topic of foreign ownership. I am pleased to tell him that the Minister for Housing heard what he said and is aware of the issues. In his new portfolio, he is looking into that matter.

My hon. Friend the Member for Harrogate and Knaresborough (Andrew Jones), who is not in his place, touched on the importance of open spaces. Indeed, the new national planning framework particularly encourages increasing density where possible so that we can do exactly that and preserve our wonderful open spaces. My hon. Friend the Member for Harborough (Neil O’Brien) made so many excellent and insightful points that I do not have time to review them all, but I join him in paying tribute to the campaign groups that have brought the Bill about.

[Bob Blackman]

My hon. Friend is giving good answers to many of the questions, but there is one outstanding question on the staircase tax. Because individual businesses are going to have to apply for a revaluation, there is a risk that they may end up paying more money if they make an application for revaluation and the rateable value increases. Will he look sympathetically at a view that people should not suffer as a result of applying for the revaluation? Otherwise, businesses may choose to say, “This will be too dangerous and risky to our cash flow.”

[Rishi Sunak]

My hon. Friend makes a very good point. I am pleased to tell him that when businesses that have their valuation changed on the historical 2010 list come to appeal that decision, they will have the choice of seeing whether to take that appeal forward, once the Valuation Office Agency engages with them. If, for whatever reason, it decided that there were some other measure that it needed to change that caused an increase in the valuation, they could then choose not to pursue that matter, so they would not suffer from any increased rating. Of course, the current rating list is dynamic, as he will know. Changes good and bad will be relevant for the life of that list, as is the normal course of business.

Lastly, the hon. Member for Oldham West and Royton raised the issue of the Government’s broader support for business rates and for business across this country. He will know that the Government stand on the side of small business. The combination of measures announced in the last Budget and subsequently to the tune of £10 billion to help businesses up and down the country facing the revaluation included bringing forward the indexation to CPI; extending the £1,000 pubs discount, which I know many hon. Members across the House welcomed; doubling small business rate relief; and providing a £300 million discretionary fund for local authorities to apply in cases where there was particularly difficulty.

In conclusion, this important Bill will deliver widely supported measures to tackle an unfair and unintended rates increase for certain businesses and support the Government’s efforts to bring empty homes back into use. I appreciate all the comments from hon. Members this evening—no doubt we will return to some of them in Committee—but I am glad that we can all agree that the overall aims of the Bill and the positive impact that it will have for businesses and families seeking to call a place home should be welcomed. I commend it to the House.

Question put and agreed to.

Bill accordingly read a Second time.

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

Motion made, and Question put forthwith (Standing Order No. 83A(7)),

That the following provisions shall apply to the Rating (Property in Common Occupation) and Council Tax (Empty Dwellings) Bill:

Committal

(1) The Bill shall be committed to a Public Bill Committee.

Proceedings in Public Bill Committee

(2) Proceedings in the Public Bill Committee shall (so far as not previously concluded) be brought to a conclusion on Thursday 3 May 2018.

(3) The Public Bill Committee shall have leave to sit twice on the first day in which it meets.

Proceedings on Consideration and up to and including Third Reading

(4) Proceedings on Consideration and proceedings in legislative grand committee shall (so far as not previously concluded) be brought to a conclusion two hours after the commencement of proceedings on Consideration.

(5) Proceedings on Third Reading shall (so far as not previously concluded) be brought to a conclusion three hours after the commencement of proceedings on Consideration.

(6) Standing Order No. 83B (Programming committees) shall not apply to proceedings on Consideration and up to and including Third Reading.

Other proceedings

(7) Any other proceedings on the Bill may be programmed.—(Kelly Tolhurst.)

Question agreed to.

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

Motion made, and Question put forthwith (Standing Order No. 52 (1)(a)),

That, for the purposes of any Act resulting from the Rating (Property in Common Occupation) and Council Tax (Empty Dwellings) Bill, it is expedient to authorise:

(1) the payment of sums to the Secretary of State in respect of non-domestic rating, and

(2) the payment of those sums into the Consolidated Fund.—(Kelly Tolhurst.)

Question agreed to.