Substandard Housing

Baroness Winterton of Doncaster Excerpts

Monday 13th May 2024 Commons Chamber

[George Galloway (Rochdale) (WPB)]

I have spoken in many Adjournment debates over the last 37 years, but seldom with an audience in such high drama—[Interruption.]

[Madam Deputy Speaker (Dame Rosie Winterton)]

Order. They seem to be leaving. Perhaps we should wait until things have settled down a little before continuing.

[George Galloway]

I hope it is clear that they are leaving not because I am rising to speak, but because of the dramatic events we have just witnessed. I hope it is duly noted that I was the one-vote majority.

I dedicate this debate to a two-year-old boy. His name was Awaab Ishak, and he was the boy who died of damp. Awaab died because he lived in a house so affected by dampness and the mould that ineluctably followed. Innumerable complaints were made, unattended to, of dampness in the house owned by his landlord Rochdale Boroughwide Housing, one of the worst housing associations in England—pity Awaab—in a town with an incompetent, inefficient and, indeed, corrupt Labour council. The housing association has been in special measures because of its extreme incompetence and social exclusion. It is officially accused of othering many of its own tenants. Little Awaab would now be getting ready for school, but he is dead. And he died of damp.

Of course, this problem is not unique to Rochdale. Millions of homes in our country are unfit for purpose and unfit for human habitation. Government policy over many years has exacerbated that which has been inherited from previous generations.

Miners and Mining Communities

Baroness Winterton of Doncaster Excerpts

Thursday 9th May 2024 Commons Chamber

[Grahame Morris]

The hon. Gentleman is making really important points about the loss of life in mining disasters, a number of which occurred in my constituency too. However, there is the ongoing legacy of industrial disease. Yesterday, I spoke to some miners from the midlands, who were lobbying Parliament and pointed out the injustice of the current schemes. One of them was suffering from chest disease—chronic obstructive pulmonary disease. To qualify for compensation, the requirement was 20 years of underground work, but he had worked only 19 years, so he was excluded. There are a number of other examples like that.

[Madam Deputy Speaker (Dame Rosie Winterton)]

Order. If the hon. Member for Ayr, Carrick and Cumnock (Allan Dorans) finds that he is having difficulty speaking and wants to take some time, I could move to the next speaker and come back to him.

[Allan Dorans]

I think that I will be okay, Madam Deputy Speaker. I have had a drink, so I will continue.

I thank the hon. Gentleman for his intervention. I totally agree that the system is terribly unjust and that those miners should be properly compensated.

With great difficulty, I resist the temptation to mention the part played in the demise of the coal industry by the actions of the late former Prime Minister, Margaret Thatcher. [Interruption.] The closure of the coalmines and the subsequent—[Interruption.] I am sorry, Madam Deputy Speaker; I will take a minute.

[Madam Deputy Speaker]

I call Alex Davies-Jones.

[Alex Davies-Jones (Pontypridd) (Lab)]

It is a pleasure to follow the hon. Member for Ayr, Carrick and Cumnock (Allan Dorans). As the proud chair of the all-party parliamentary group on coalfield communities, it is a privilege to speak in this debate. I put on record my thanks to the vice-chairs, my hon. Friend the Member for Easington (Grahame Morris) and the hon. Member for Leigh (James Grundy), who sadly is no longer in his place, for securing today’s important debate. I also thank the other vice-chair, the right hon. Member for Midlothian (Owen Thompson), who is in his place, and the former vice-chair, the hon. Member for Newcastle-under-Lyme (Aaron Bell), who had to resign following his elevation to the Government Whips Office.

Before I begin, it is important to emphasise that former coalfield areas make up a significant part of the country, spanning Wales, Scotland and England, with a combined population larger than Scotland, at around 5.7 million people. These areas are far too big to be ignored. As the daughter and granddaughter of former miners, this topic is of great significance to me, and to many of my constituents in Pontypridd and Taff Ely. This year is the 40th anniversary of the start of the miners’ strike. My father, who was at Orgreave, was one of those who went out on strike. The values he stood for—community, dignity and fairness—are the same values I seek to uphold. Even a generation on, the pain for those affected is still raw, yet the legacy of coalmining is about so much more than the miners’ strike. Coal is no longer dug in our areas, but that rich seam that powered Britain’s industrial revolution still runs deep in the veins of our communities. The closure of the mines may be in the past, but the people living with the consequences are not. They are living, breathing communities.

For the generation, which includes me, that has grown up since the strike, the challenges are different. Coalfield communities no longer suffer the mass unemployment of the ’80s and ’90s, but are we to believe that this change is progress? Truth be told, many former coalfield areas still lag behind much of the rest of the country. In some places, the number of jobs lost may have been replaced, but in far too many cases the respected skilled mining and engineering jobs have been replaced with low quality, poorly paid employment. That was starkly highlighted by the all-party group’s recent report, “Next Steps in Levelling Up the Former Coalfields”. I am immensely grateful to my colleagues on both sides of the House who helped shape that report, and I pay tribute to the Industrial Communities Alliance, without which the inquiry and subsequent report would not have been possible. The report represents a pivotal moment in the coalfield regeneration agenda, and sets out key steps for improving former mining communities. For the sake of time, I will focus on just a few.

Strong policies are needed to grow local economies in our former coalfields. That means an end to the city-centric model of growth. Let us be clear: the idea that growth in the cities will inevitably trickle down to our towns and mining villages is utter nonsense. Coalfield communities have a strong identity. In many cases, if people have to move away for work or commute to nearby cities, it is because they have no choice. The Government’s levelling-up initiatives are, sadly, just a slogan. We need to be honest about what small, short-term pots of money are expected to achieve. There needs to be a new model of local and regional development that places the emphasis on growing local economies, and that provides long-term financial certainty to local authorities and other partners and stakeholders.

One way in which we can develop coalfield economies is by investing in suitable premises for small and medium-sized businesses. The Coalfields Regeneration Trust has a successful model of investing in units for small firms, and recycling the profits to support the local community. The winding up of the coalfields enterprise fund and the coalfields growth fund has resulted in an unexpected windfall for the Treasury of some £15 million. That may be small change to the Treasury, but for our communities it could be transformational. It is therefore disappointing that the Government have so far refused to return that money to the coalfields to support a tried and tested investment programme.

While I am on the topic of money coming back to our communities, I briefly want to mention CISWO—the Coal Industry Social Welfare Organisation—which was set up to support assets following the closure of our mines. The assets—our miners’ welfare hall, playing fields, facilities and village halls—were paid for by the miners and bestowed in trust to that organisation. Sadly, so many Members in this place have shared frustration about the woeful and appalling operation, management and engagement of the charity. I urge the Minister to look into this as a matter of urgency and to talk to the charities Minister about what can be done. Enough is enough. We need direct action about exactly what is happening in our communities as a result of this charity’s actions.

Let me express further disappointment, as others have, in the Government once again rejecting the recommendations of the Business and Trade Committee about renegotiating the mineworkers’ pension scheme. The Treasury has already surpassed £5 billion of surpluses. Surely, at a time when many families not just in my constituency but across the country face hardship in the cost of living crisis, it is only fair that the miners who contributed to the scheme be entitled to a fairer share of the surpluses.

In addition to the Committee’s recommendations, the APPG recently celebrated the publication of the “State of the Coalfields” report, commissioned by the Coalfields Regeneration Trust. The CRT does fantastic work to breathe life back into our former coalfields, and I was proud to join the organisation to celebrate the launch. However, its findings only reiterate the necessity of the ICA’s recommendations. For example, the city-centric factor that I mentioned is backed up by the report’s findings that more older people live in our former coal- fields than younger people, with younger people graduating and moving away to cities to seek job opportunities and, sadly, not returning. These factors are pushing our former coalfields even further behind, as the employment gap causes an increase in benefit claimants and people having no choice but to commute to cities for work.

The report found that, among the four focus areas analysed, south Wales performed the worst for employment shortfall and for the number of out-of-work benefits claimants, which is of deep concern to me as a south Wales MP. Upon individual inspection we can see progress for our former coalfields, but they lag behind the rest of the UK. The report found that the average hourly earnings for former coalfield areas are 6% to 7% lower than the national average, which is shocking. We truly have a lot of work to do, but thanks to this fantastic report we have a way to do it, and a way to navigate it has been paved.

I understand more than most the importance of devolution and the power of giving local communities the autonomy to make change. However, in the case of coal tip safety, it is anomalous that the Welsh Government should be financially responsible for addressing a pre-devolution issue when other legacies of the coal industry, such as water pollution, gas leaks and pit shaft safety, are the responsibility of the UK Government-funded Coal Authority. Because of the landscape of the Welsh valleys, our communities are more at risk than those in any other part of the UK. The prospect of any repeat of the terrible tragedy of Aberfan is truly unthinkable. As a result, the burden of making coal tips safe has fallen disproportionately on the Welsh Government and local authorities in Wales. That cannot be fair.

When I spoke of values such as community, dignity and fairness, it was not in the vague, philosophical sense; these recommendations are the practical application of those values. Just as my father stood up for his community 40 years ago, it is incumbent upon us to stand up for our coalfield communities. We must take the next steps needed to ensure that they are fairer and more prosperous for the next 40 years.

[Madam Deputy Speaker (Dame Rosie Winterton)]

Would the hon. Gentleman like to finish his speech?

High Streets (Designation, Review and Improvement Plan) Bill

Baroness Winterton of Doncaster Excerpts

3rd reading
Friday 26th April 2024 Commons Chamber

[Dame Maria Miller (Basingstoke) (Con)]

I very much welcome this Bill and I congratulate my hon. Friend the Member for Stoke-on-Trent South (Jack Brereton) on getting it this far and on advocating so passionately for our high streets. This Bill, which requires local authorities to designate streets in their area as high streets and develop an improvement plan, especially without that upper limit of three streets that can be designated as high streets, will provide a framework for our many local authorities to do more to support this important part of what my hon. Friend called the beating heart of our communities. He is absolutely right to term it in that way.

It is a great pleasure to follow my hon. Friend the Member for Cities of London and Westminster (Nickie Aiken). I was particularly struck by her drawing out of the concept of neighbourhood high streets. Although she obviously represents a far more urbanised area than I do, in my constituency we have both a town centre and other neighbourhood high streets, which need the support and help of our local authority just as the town centre does. That is an important thing to think about as this plan goes forward, and I am sure the Minister will reflect on that in his comments.

A picture has been painted already of the importance of high streets, so I will simply add that a recent poll found that 80% of respondents thought it very important that their high street was kept alive and healthy. That said, our town centres are incredibly fragile at the moment and they do need more protection. I think this Bill will incentivise local authorities to do the right thing and to have plans in place.

The economic benefits of town centres to our local economies are huge and considerable. Certainly in Basingstoke my town centre and high street service and support one of the largest centres of employment in the south-east. Not only residents but workers who come to Basingstoke, day in, day out use it. Town centres and high streets in our town centres promote civic pride and social cohesion and, as the hon. Member for North Tyneside (Mary Glindon) said, they are places where we gather. That is an important part of their role as well.

However, high streets and town centres face considerable challenges, which is why I am speaking in support of this Bill today. My hon. Friend the Member for Cities of London and Westminster referred to shoplifting, and I think every hon. Member taking part in this debate will recognise the incredible way in which shoplifting has been turned into, frankly, organised crime. Individuals are organising themselves to go into shops regularly to steal large quantities of often high-value items.

I am pleased to say that the police and crime commissioner in my county of Hampshire, Donna Jones, has gone above and beyond in addressing the issue of shoplifting, particularly by supporting facial recognition technology, which will help our local retailers on our high streets immensely to do something about that appalling crime. She has reinstated the important beat bobbies in every single one of my communities—not just in Basingstoke, but throughout Hampshire—and made sure that they will be there to collect the evidence and intelligence on the gangs and individuals organising shoplifting. The police forces in our various parts of the country have an important role to play in the future health of our high streets. I know my hon. Friend the Member for Stoke-on-Trent South will be looking for ways to ensure that they are absolutely at the heart of his Bill, so that our high streets are healthy for the future.

As has been said, the reality for many retailers and service providers is that what they traditionally offered face to face can now—perhaps more conveniently for some—be purchased or procured online. Shopping habits and consumer behaviour were already changing before the pandemic, but the change has accelerated enormously, forcing our high streets to think carefully about their role in the future. It is not just retail parks that are a threat to the future of our high streets; it is more fundamental than that, so it will be important that local authorities take consumers’ and shoppers’ behaviour into account when they look at the Bill as it is rolled out.

My “high street” in Basingstoke—the town centre is a network of streets and one very large shopping centre—has been considering this issue for a number of years. Back in 2021, thanks to the leadership of then council leader Simon Minas-Bound, we put in place a blueprint for our town centre that is very similar to what my hon. Friend is calling for in his Bill. It was approved in December 2022 under the then Conservative administration. It is called the “Town Centre Strategy”, and it is designed to attract more footfall to the town centre, based on changing consumer needs. It looks at how the environment can bring greater vibrancy, and therefore greater prosperity, to the town centre. The strategy was developed with extensive public engagement: there were more than 3,000 responses to the consultation. The masterplan that has been developed uses the historical layout of Basingstoke to reimagine the current town centre, not for the next five or 10 years, but for the next 30 years, so that our town is fit for the future.

That town centre plan must look at the heritage of our community. I felt it was important, at the heart of the future of Basingstoke, to recognise our incredible history. Jane Austen, the novelist, used to go shopping in Basingstoke, and I was very pleased to work with a number of local people, including the sculptor Adam Roud, to put a lasting memorial in my town centre to that incredible Hampshire citizen. The hon. Member for North Tyneside talked about remembering one of the sons of her community, and I made sure we were remembering one of our daughters. Jane Austen is a fantastic person to have as part of our history.

There is also the Willis Museum and Sainsbury Gallery and the marketplace. All that history and richness has to be central to the way we press forward with Basingstoke. Consumers’ changing needs and demands mean that they may not go to their local high street only to shop, even though we continue to value the independent retailers and the pubs and clubs that populate our town centre. They are also looking for experiences and entertainment, and our history will enable us to make a unique entertainment offer in our town centre.

I absolutely agree that this Bill promotes a way for our local authorities to ensure that they do the utmost to support our high streets and make the most of them as a way of creating successful communities for the future. It will put the beating heart into our communities, and I very much commend my hon. Friend the Member for Stoke-on-Trent South for all the work he has done to bring forward the Bill.

[Madam Deputy Speaker (Dame Rosie Winterton)]

I call the shadow Minister.

Renters (Reform) Bill

Baroness Winterton of Doncaster Excerpts

Report stage
Wednesday 24th April 2024 Commons Chamber

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

I beg to move, That the clause be read a Second time.

[Madam Deputy Speaker (Dame Rosie Winterton)]

With this it will be convenient to discuss the following:

Government new clause 30—Assessment of operation of possession process.

Government new clause 13— Sections 1 and 2: effect of superior leases.

Government new clause 14—Powers of Secretary of State in connection with Chapter 1.

Government new clause 16—Power of Welsh Ministers to extend protection to persons of other descriptions.

Government new clause 17—Power of Secretary of State to extend protection to persons of other descriptions: Wales.

Government new clause 18—Prohibition of discrimination relating to children or benefits status: Scotland.

Government new clause 19—Terms in standard securities relating to children or benefits status: Scotland.

Government new clause 20—Terms in insurance contracts relating to children or benefits status: Scotland.

Government new clause 21—Power of the Scottish Ministers to extend protection to persons of other descriptions.

Government new clause 22—Interpretation of Chapter 4A.

Government new clause 23—Power of Scottish Ministers to make consequential provision.

Government new clause 24—Power of Secretary of State to extend protection to persons of other descriptions: Scotland.

Government new clause 25—Landlord redress schemes: no Crown status.

Government new clause 26—Other amendments in connection with landlord redress schemes.

Government new clause 27—Commencement.

Government new clause 28—Application of Chapter 1 of Part 1.

Government new clause 29—Assured agricultural occupancies: opting out etc.

Government new clause 31—Local Commissioners’ investigation of complaints by persons who are not tenants.

Government new clause 32—Unlicensed HMOs and houses: offences.

Government new clause 33—Service of improvement notices on landlords and licensors.

Government new clause 34—Rent repayment orders: liability of directors etc.

Government new clause 35—Report on certain matters relating to tenancy reform.

Government new clause 36—Report on provision of residential tenancies.

New clause 1—Repeal of requirement for selective licensing—

“Part 3 of the Housing Act 2004 (Selective licensing of other residential accommodation) is repealed.”

This new clause would remove the ability of local housing authorities to designate areas as subject to selective licensing.

New clause 2—Expanding the remit of rent repayment orders to company directors—

“In section 249A of the Housing Act 2004, after subsection (1) insert—

‘(1A) If a local housing authority believes that a relevant housing offence has been committed by a body corporate, it may impose a financial penalty on—

(a) a director, manager, secretary or other similar officer of the body corporate, or

(b) a person purporting to act in such a capacity,

if it is satisfied, beyond reasonable doubt, that the offence was committed with the consent or connivance of that person, or that the offence was attributable to any neglect on the part of that person.’”

This new clause would enable local housing authorities to impose financial penalties on certain individuals when it believes a housing offence has been committed by a body corporate.

New clause 3—Evidence to consider when granting possession order for anti-social behaviour—

“In section 9A of the 1988 Act, after subsection (2) insert—

‘(3) In considering evidence of conduct the court may consider evidence provided by way of hearsay and that evidence will be admissible without notice or permission of the court notwithstanding any rule of the court or the common law.’”

This new clause would enable courts to consider hearsay evidence during the course of proceedings for possession on the grounds of anti-social behaviour.

New clause 5—Review of changes to grounds for possession—

“(1) The Secretary of State must, within two years of the date of Royal Assent to this Act, conduct and lay before Parliament a review of the grounds for possession in Schedule 2 of the Housing Act 1988, as amended by this Act.

(2) The review must include—

(a) an assessment of the effectiveness of the new or amended grounds for possession set out in Schedule 1 of this Act in securing evictions from properties;

(b) an assessment of the impact on the security of tenure of tenants as a result of the use of the new or amended grounds for possession set out in Schedule 1 of this Act;

(c) a report on the use of enforcement action in relation to the new or amended grounds for possession set out in Schedule 1 of this Act;

(d) an assessment of the effectiveness of the grounds for possession listed in Schedule 2 of the Housing Act 1988 in securing evictions from properties that remain unamended by Schedule 1 of this Act.

(3) The review under subsection (1) must make such recommendations as, in the opinion of the Secretary of State, are necessary in the light of the findings of the review.”

This new clause would require the Government to publish a review of the impact of the amended grounds for possession within two years of the Act coming into force.

New clause 6—Requirement to state the amount of rent when advertising residential premises—

“(1) A landlord must not advertise or otherwise offer a tenancy of residential premises unless the amount of rent is stated in the advertisement or offer.

(2) A letting agent acting on behalf of a landlord must not advertise or otherwise offer a tenancy of residential premises unless the amount of rent is stated in the advertisement or offer.”

This new clause would require landlords or persons acting on their behalf to state the proposed rent payable in the advertisement for the premises.

New clause 7—Not inviting or encouraging bids for rent—

“(1) A landlord must not invite or encourage a prospective tenant or any other person to offer to pay an amount of rent for residential premises that exceeds the amount of rent stated as part of the advertisement or offer of the premises as required by section [requirement to state the amount of rent when advertising residential premises].

(2) A letting agent acting on behalf of a landlord must not invite or encourage a prospective tenant or any other person to offer to pay an amount of rent for residential premises that exceeds the amount of rent stated as part of the advertisement or offer of the premises as required by section [requirement to state the amount of rent when advertising residential premises].

(3) Subsection (1) does not prohibit a prospective tenant or other person from offering to pay an amount that exceeds the stated amount of rent.”

This new clause would prevent landlords or persons acting on their behalf from inviting or encouraging bids that exceed the amount stated as part of the advertisement or offer of the premises.

New clause 8—Limit on amount of rent that a residential landlord can request in advance—

“In Schedule 1 to the Tenant Fees Act 2019, after paragraph 1(8) insert—

‘(9) Where rent is payable in advance, the maximum that may be charged is equivalent to the amount specified in paragraph 2(3).’”

This new clause would ensure that the maximum amount of rent that could be lawfully requested by a residential landlord in advance of a tenancy commencing would be 5 weeks’ rent for tenancies of less than £50,000 per annum and to 6 weeks’ rent for tenancies over £50,000 per annum.

New clause 10—Extension of Awaab’s law to the private rented sector—

“(1) Section 10A of the Landlord and Tenant Act 1985 is amended as follows.

(2) Omit subsections (1)(b) and (6).

(3) In subsection (7), omit the definitions of ‘low-cost home ownership accommodation’ and ‘social housing.’”

This new clause would require private landlords to deal with hazards affecting their properties.

New clause 11—Ending blanket bans on renting to families with children or those in receipt of benefits—

“The Secretary of State may, by regulation, specify behaviour which, for the purposes of Part 4, Equality Act 2010, shall be considered unlawful discrimination unless the contrary is shown.”

This new clause would ensure that blanket bans on renting to families with children or those in receipt of benefits are presumed to be unlawful discrimination unless proved otherwise.

New clause 12—Discrimination relating to care-leaver status—

“(1) The provisions of this section apply to individuals who are—

(a) a relevant child as defined by section 23A of the Children’s Act 1989; or

(b) a former relevant child as defined by section 23C of the Children’s Act 1989.

(2) A relevant person must not, in relation to a dwelling that is to be let on a relevant tenancy—

(a) on the basis that the individual meets either of the criteria set out in subsection (1), prevent the person from—

(i) enquiring whether the dwelling is available for let,

(ii) accessing information about the dwelling,

(iii) viewing the dwelling in order to consider whether to seek to rent it,

(iv) entering into a tenancy of the dwelling, or

(b) apply a provision, criterion or practice in order to make care leavers less likely to enter into a tenancy of the dwelling than people who are not care leavers.

(3) Subsection (2) does not apply if the relevant person can show that the prospective landlord of the dwelling, or a person who would be a superior landlord in relation to the dwelling, is insured under a contract of insurance—

(a) to which section 33 does not apply, and

(b) which contains a term which makes provision (however expressed) requiring the insured to prohibit a tenant under a relevant tenancy from being a care-leaver,

and the conduct is a means of preventing the prospective landlord from breaching that term.

(4) Conduct does not breach the prohibition in subsection (2) if it consists only of—

(a) one or more of the following things done by a person who does nothing in relation to the dwelling that is not mentioned in this paragraph—

(i) publishing advertisements or disseminating information;

(ii) providing a means by which a prospective landlord can communicate directly with a prospective tenant;

(iii) providing a means by which a prospective tenant can communicate directly with a prospective landlord, or

(b) things of a description, or things done by a person of a description, specified for the purposes of this section in regulations made by the Secretary of State.”

New clause 37—Extension of rent repayment orders—

“(1) In Section 40(3) of the Housing and Planning Act 2016, at end of table insert—

[Jacob Young]

I am delighted to bring the Renters (Reform) Bill back to the House on Report. I express my gratitude to Members across the House for their contributions on Second Reading and in Committee, and for their continued engagement throughout. I thank my predecessors, my hon. Friend the Member for Walsall North (Eddie Hughes), whose Parliamentary Private Secretary I had the privilege of being as he steered the White Paper, and my hon. Friend the Member for Redditch (Rachel Maclean), whose Whip I had the privilege of being as she steered the Bill on Second Reading. I have seen the Bill at every stage of its formation, and I can say to the House that the Bill we are discussing today would not have been possible without their hard work and dedication. I also pay tribute to the hon. Members for Greenwich and Woolwich (Matthew Pennycook) and for North Shropshire (Helen Morgan) for their constructive engagement and commitment to seeing the Bill delivered, so that its benefits can be realised.

The Bill will create a fairer private rented sector for both landlords and tenants, delivering on the Government’s 2019 manifesto commitment. The Bill brings in the most significant reforms for the sector in over 30 years. It will abolish section 21 of the Housing Act 1988 and bring in new decency standards, giving England’s 11 million tenants more certainty of secure and healthy homes. It will mean that tenants will be supported to hold down jobs in their local area, children to stay in the same school, and households to put down roots in their communities. Alongside abolishing section 21, we are strengthening and expanding landlord possession grounds, including stronger protections against antisocial behaviour. Combined with our reforms to ensure a modern court system, that will ensure that landlords retain confidence in getting back their properties when they need to, safeguarding their investment.

The new private rented sector ombudsman will resolve tenants’ disputes and support landlords in handling complaints effectively. That will help to avoid disagreements escalating unnecessarily to the courts, saving both landlords and tenants time and money. Our new property portal will make landlords’ responsibilities clear in one place and support tenants to make more informed choices. We are also providing stronger protections for renters with pets, recognising the joy that pets can bring. However, the Bill must strike a balance between delivering that security for tenants and fairness to landlords.

--- Later in debate ---

[Jacob Young]

I am more than happy to address those points before the end of the debate, but I think that I have written to the hon. Lady about them. If I have not, I will ensure that I do in order to be clear about the amendments she has tabled.

Government new clause 36 places a duty on the Secretary of State to produce an annual report to Parliament on the stock of residential tenancies in the private rented sector. That report will need to be provided in the five years after the Bill receives Royal Assent. Reports under that duty would cover, but not be limited to, an analysis of the number, location and size of private rented sector properties. The new clause ensures that regular analysis of such information is available for scrutiny and debate.

I am aware that several Members have raised concerns about the interaction between the property portal and the role of selective licensing. The two systems have separate, distinct purposes: the portal will gather data on private rented sector ownership and property standards in England, providing an information source for local authorities to have oversight of the whole private rented sector in their area. It will help landlords to understand their legal obligations and will give tenants the information they need to make informed choices. Meanwhile, selective licensing provides local housing authorities with the powers to license privately rented properties within a designated area to address specific local issues, including poor housing conditions and high levels of antisocial behaviour or crime. While there will be overlap with data gathered through the portal, the information required for licences in these areas will be specific to the issue being tackled and will support more intensive enforcement action in the areas that need it most.

We do not want to see selective licensing abolished, but we do want to ensure that our reforms are streamlined and that burdens are minimised for landlords and local authorities. That is why I am committing to a review of selective licensing and the licensing of houses in multiple occupation to consider how we can reduce burdens and make the system more effective for landlords, tenants and local authorities. I am keen to work closely with Members and the wider sector on this issue, and will provide further details in due course.

I have sat on many Bill Committees in this House, and have now been privileged to lead my first Bill Committee, facing the hon. Member for Greenwich and Woolwich. He has been a great person to work with and has sought at every opportunity to make sure the Bill works and is effective. I said to him in Committee that we would listen to suggestions for how we can improve the Bill, and we are doing so today. For tenants, we are expanding the homelessness prevention grant and closing loopholes in the system; for landlords, we are introducing an initial six-month tenancy and giving them certainty that our reforms will work. The Bill delivers on our manifesto commitments: it gives tenants security and landlords fairness. Our amendments continue to strike that balance, and I commend them to the House.

[Madam Deputy Speaker (Dame Rosie Winterton)]

Before I call the shadow Minister, I remind colleagues that if they wish to intervene on a speech, it is important that they have been in the Chamber since the beginning of the speech, just in case the important point they wish to raise has already been addressed. It is also important that they stay for the duration of the speech, in case other colleagues then refer to the important point that they have raised. I clarify that because we may have a longer speech from the shadow Minister, and people may wish to intervene, so I thought it would be helpful to remind colleagues of those rules.

[Matthew Pennycook (Greenwich and Woolwich) (Lab)]

I rise on behalf of the Opposition to speak to the new clauses and amendments that stand in my name.

It is a pleasure to finally be back in the Chamber to conclude the remaining stages of this important piece of legislation. I say “finally” because as you will know, Madam Deputy Speaker, the Bill left Committee on 28 November last year—almost five months ago. Indeed, such has been the delay in bringing it back to the House that in the intervening 147 days, the Department even managed to complete all the Commons stages of another piece of housing legislation—albeit a distinctly limited and unambitious one—in the form of the Leasehold and Freehold Reform Bill.

The reason for the delay is, of course, an open secret, with the ongoing resistance to the legislation from scores of Government Members—including many with relevant interests, as private renters across the country have certainly noted—and the undignified wrangling between them and Ministers splashed across the papers for months. The damage caused by the discord on the Government Benches has been significant: not only have thousands of additional private renters been put at risk of homelessness as a result of being served a section 21 notice in the months for which the Bill’s remaining stages have been delayed; the sector as a whole has been left in limbo, not knowing whether the Bill will proceed at all and, if it does, what form it will take.

--- Later in debate ---

[Several hon. Members rose—]

[Madam Deputy Speaker (Dame Rosie Winterton)]

Order. Before I call the next speaker, I inform the House that I will be giving priority to those Members who have amendments down, so that they can speak to them before we hear from others. I call Chair of the Levelling Up, Housing and Communities Committee, Clive Betts.

[Mr Betts]

It is disappointing that we are having to focus primarily on the Government back-pedalling on the timetable for the abolition of section 21. The Levelling Up, Housing and Communities Committee looked at this a year ago and concluded unanimously that the principle of the Government’s intention was right. We had some reservations and caveats, and we raised concerns and suggested detail changes, but nevertheless we agreed on the principle. Generally speaking, there is agreement across the House that it is the right thing to do.

In the meantime, people are living in uncertainty in private rented housing. That is why we thought it was the right thing to do. That is what the measure is for: to give people greater certainty about where they will be living in a year’s time. It is not merely that; it is also so that they know, if they do not have a car, that they can get on the bus to their place of work in the morning—if the landlord evicts them and they have to move home, will they be able to get to that job in the future? It is also about children at school: will those children be able to get to the same school if they are evicted from their home and have to find a new property? That is the sort of family certainty that the abolition of section 21 will introduce. So many families are living in uncertainty—not just housing uncertainty but other uncertainty—while we await that abolition. The Minister needs to get on with it and give us some clear time commitments on when it will happen.

We have just discussed the problem of the courts. Of course, covid has affected lots of public services, but I say to the Minister that it is not a surprise. If we look at how long it was taking local authorities to get court hearings to deal with antisocial behaviour cases before covid, we see even then that those ran into months. It has been a problem in the courts for many years. That is why the Committee has suggested—it has been suggested before—a housing court system. I know that Ministers do not want it and that the Ministry of Justice does not want it, but it seemed to us a way of resolving what are often simple or quick problems. A small claims court format could do it in many cases without the need for lawyers to be introduced. I am sorry, but I have no conviction that, with several months of looking at this, several years of contemplation and plans for action, the courts will be any quicker in two or three years than they are now. The court system has delays, and they are likely to remain, so we need to look a bit beyond the existing system to resolve these problems. Obviously, Ministers have set their minds against that.

I turn to the other main problem that we highlighted on implementation: local authorities and their staff. We know that local authorities are desperately short of staff for enforcement in the private rented sector. Once section 21 goes, tenants who are currently frightened—even those living in appalling damp properties—to make complaints against their landlords, because they are concerned they would be evicted as soon as a complaint is made, will feel emboldened to make that complaint, and if their complaint is not listened to, they will be emboldened to go to their local authority and ask for help. Local authorities will get more requests for help, and they have not got the people to deal with that.

Will the Minister assure us that he is starting to talk to the Local Government Association about the new burdens that will be placed on local authorities—this is a new burden that we are imposing on them, albeit a good one—and that there is some agreement on the resource that will be needed? Resources do not produce extra staff overnight, so local authorities will need advance warning so that we have the staff in place to respond quickly.

Leasehold and Freehold Reform Bill

Baroness Winterton of Doncaster Excerpts

Report stage
Tuesday 27th February 2024 Commons Chamber

[The Minister for Housing, Planning and Building Safety (Lee Rowley)]

I beg to move, That the clause be read a Second time.

[Madam Deputy Speaker (Dame Rosie Winterton)]

With this it will be convenient to discuss the following:

Government new clause 27—Part 4: Crown application.

Government new clause 28—Redress schemes: no Crown status.

Government new clause 29—Part 5: amendments to other Acts.

Government new clause 30—Steps relating to remediation of defects.

Government new clause 31—Remediation orders.

Government new clause 32—Remediation contribution orders.

Government new clause 33—Recovery of legal costs etc through service charge.

Government new clause 34—Repeal of section 125 of the BSA 2022.

Government new clause 35—Higher-risk and relevant buildings: notifications in connection with insolvency.

Government new clause 42—Ban on grant or assignment of certain long residential leases of houses.

Government new clause 43—Long residential leases of houses.

Government new clause 44—Leases which have a long term.

Government new clause 45—Series of leases whose term would extend beyond 21 years.

Government new clause 46—Houses.

Government new clause 47—Residential leases.

Government new clause 48—Permitted leases.

Government new clause 49—Permitted leases: certification by the appropriate tribunal.

Government new clause 50—Permitted leases: marketing restrictions.

Government new clause 51—Permitted leases: transaction warning conditions.

Government new clause 52—Prescribed statements in new long leases.

Government new clause 53—Restriction on title.

Government new clause 54—Redress: right to acquire a freehold or superior leasehold estate.

Government new clause 55—Redress: application of the right to acquire.

Government new clause 56—Redress: general provision.

Government new clause 57—Redress regulations: exercising and giving effect to the right to acquire.

Government new clause 58—Enforcement by trading standards authorities.

Government new clause 59—Financial penalties.

Government new clause 60—Financial penalties: cross-border enforcement.

Government new clause 61—Lead enforcement authority.

Government new clause 62—General duties of lead enforcement authority.

Government new clause 63—Enforcement by lead enforcement authority.

Government new clause 64—Further powers and duties of enforcement authorities.

Government new clause 65—Power to amend: permitted leases and definitions.

Government new clause 66—Interpretation of Part A1.

New clause 1—Estate management services—

“(1) Within three months of the passage of this Act, the Secretary of State must by regulation provide for residents of managed dwellings to take ownership, at nominal cost, of—

(a) an estate management company, or

(b) the assets of an estate management company, or other company or business connected with the development or management of the dwellings, which are used to provide services to managed dwellings

if the estate management company or connected company or business does not—

(i) provide the residents of the managed dwellings with a copy of its budget for the forthcoming year and accounts for the past year;

(ii) give sufficient notice to enable residents to attend its annual meeting;

(iii) acknowledge correspondence sent by registered post to its registered office within a reasonable length of time.

(2) Regulations under subsection (1) may amend primary legislation.”

New clause 2—Estate management: compensation—

“(1) This section applies where the first and second condition are met.

(2) The first condition is that it would not be reasonable for the residents of a property to continue to occupy that property as their primary residence due to a defect which the estate manager—

(a) is responsible for remedying, or

(b) could reasonably have foreseen would arise.

(3) The second condition is that—

(a) the defect is the direct result of actions taken or not taken by the estate manager, or

(b) the estate manager has failed to remedy the defect within a reasonable period of time.

(4) The estate manager must—

(a) provide compensation to the residents of the property equal to any reasonable financial loss they incurred as a result of the defect, or

(b) provide suitable alternative accommodation for the duration of the period for which this section applies.

(5) No cost incurred by an estate manager as a consequence of this section may be recouped from the estate in question through an estate management charge.”

This new clause would allow estate residents to claim compensation or alternative accommodation where it is not reasonable for them to remain in their homes due to defects caused, or left unremedied for an unreasonable length of time, by an estate manager.

New clause 3—Prohibition on landlords claiming litigation costs from tenants—

“(1) Any term of a long lease of a dwelling which provides a right for a landlord to demand litigation costs from a leaseholder (whether as a service charge, administration charge or otherwise) is of no effect.

(2) The Secretary of State may, by regulations, specify classes of landlord to which or prescribed circumstances in which subsection (1) does not apply.

(3) In this section—

“administration charge” has the meaning given by Schedule 11 of the Commonhold and Leasehold Reform Act 2022;

“dwelling” means a building or part of a building occupied or intended to be occupied as a separate dwelling, together with any yard, garden, or outhouses and appurtenances belonging to it or usually enjoyed with it;

“long lease” has the meaning given by sections 76 and 77 of the Commonhold and Leasehold Reform Act 2002;

“service charge” has the meaning given by section 18 of the Landlord and Tenant Act 1985;

“landlord” has the meaning given by section 30 of the Landlord and Tenant Act 1985.”

This new clause would prohibit landlords from claiming litigation costs from tenants other than under limited circumstances determined by the Secretary of State.

New clause 4—Remedies for the recovery of annual sums charged on land—

“(1) Section 121 of the Law of Property Act 1925 is omitted.

(2) The amendment made by subsection (1) has effect in relation to arrears arising before or after the coming into force of this section.”

This new clause, which is intended to replace clause 59, would remove the provision of existing law which, among other things, allows a rentcharge owner to take possession of a freehold property in instances where a freehold homeowner failed to pay a rentcharge.

New clause 5—Abolition of forfeiture of a long lease—

“(1) This section applies to any right of forfeiture or re-entry in relation to a dwelling held on a long lease which arises either—

(a) under the terms of that lease; or

(b) under or in consequence of section 146(1) of the Law of Property Act 1925.

(2) The rights referred to in subsection (1) are abolished.

(3) In this section—

“dwelling” means a building or part of a building occupied or intended to be occupied as a separate dwelling, together with any yard, garden, or outhouses and appurtenances belonging to it or usually enjoyed with it;

“lease” means a lease at law or in equity and includes a sub-lease, but does not include a mortgage term;

“long lease” has the meaning given by sections 76 and 77 of the Commonhold and Leasehold Reform Act 2002.”

This new clause would abolish the right of forfeiture in relation to residential long leases in instances where the leaseholder is in breach of covenant.

New clause 6—Requirement to establish and operate a management company under leaseholder control—

“(1) The Secretary of State may by regulations make provision—

(a) requiring any long lease of a dwelling to include a residents management company (“RMC”) as a party to that lease, and

(b) for that company to discharge under the long lease such management functions as may be prescribed by the regulations.

(2) Regulations under subsection (1) must provide—

(a) for the RMC to be a company limited by share (with each share to have a value not to exceed £1), and

(b) for such shares to be allocated (for no consideration) to the leaseholder of the dwelling for the time being.

(3) Regulations under subsection (1) must prescribe the content and form of the articles of association of an RMC.

(4) The content and form of articles prescribed in accordance with subsection (3) have effect in relation to an RMC whether or not such articles are adopted by the company.

(5) A provision of the articles of an RMC has no effect to the extent that it is inconsistent with the content or form of articles prescribed in accordance with subsection (3).

(6) Section 20 of the Companies Act 2006 (default application of model articles) does not apply to an RMC.

(7) The Secretary of State may by regulations make such provision as the Secretary of State sees fit for the enforcement of regulations made under subsection (1), and such provision may (among other things) include provision—

(a) conferring power on the First-Tier Tribunal to order that leases be varied to give effect to this section;

(b) providing for terms to be implied into leases without the need for any order of any court or tribunal.

(8) The Secretary of State may by regulations prescribe descriptions of buildings in respect of which regulations may be made under subsection (1).

(9) In this section—

“dwelling” means a building or part of a building occupied or intended to be occupied as a separate dwelling, together with any yard, garden, or outhouses and appurtenances belonging to it or usually enjoyed with it;

“long lease” has the meaning given by sections 76 and 77 of the Commonhold and Leasehold Reform Act 2002;

“management function” has the meaning given by section 96(5) of the Commonhold and Leasehold Reform Act 2002.

(10) The Secretary of State may by regulations amend the definition of “management function” for the purposes of this section.”

This new clause would ensure that leases on new flats include a requirement to establish and operate a residents’ management company responsible for all service charge matters, with each leaseholder given a share.

New clause 7—Power to establish a Right to Manage regime for freeholders on private or mixed-use estates—

“In Section 71 of the Commonhold and Leasehold Reform Act 2002, after subsection (2) insert—

“(3) The Secretary of State may by regulations make provision to enable freeholder owners of dwellings to exercise a right to manage in a way which corresponds with or is similar to this Part.

(4) A statutory instrument containing regulations under subsection (3) may not be made unless a draft of the instrument has been laid before and approved by a resolution of each House of Parliament.””

This new clause would permit the Secretary of State to establish a Right to Manage regime for freeholders of residential property on private or mixed-use estates.

New clause 8—Regulation of property agents—

“(1) The Secretary of State must by regulations make provision for implementing the proposals of the Regulation of Property Agents Working Group final report of July 2019 as far as they relate to—

(a) estate management;

(b) sale of leasehold properties; and

(c) sale of freehold properties subject to estate management or service charges.

(2) Regulations under this section—

(a) must be laid within 24 months of the date of Royal Assent to this Act,

(b) shall be made by statutory instrument, and

(c) may not be made unless a draft has been laid before and approved by resolution of each House of Parliament.

(3) If, at the end of the period of 12 months beginning with the day on which this Act is passed, the power in subsection (1) is yet to be exercised, the Secretary of State must publish a report setting out the progress that has been made towards doing so.”

This new clause would require the Secretary of State to make regulations to implement the proposals of the Regulation of Property Agents Working Group final report within 24 months of the Act coming into force and to report on progress to that end at the end of the period of 12 months.

New clause 9—Qualifying leases for the purposes of the remediation of building defects—

“Section 119 of the Building Safety Act 2022 is amended by the insertion after subsection (4) of the following —

“(5) The Secretary of State may, by regulations, amend subsection (2) so as to bring additional descriptions of lease within the definition of “qualifying lease”.””

This new clause would give the Secretary of State the power to bring “non qualifying” leaseholders within the scope of the protections of the Building Safety Act 2022.

New clause 10—Meaning of “relevant building” for the purposes of the remediation of building defects—

“Section 117 of the Building Safety Act 2022 is amended by the insertion after subsection (6) of the following—

“(7) The Secretary of State may, by regulations, amend subsection (2) so as to bring additional descriptions of building within the definition of “relevant building”.””

This new clause would give the Secretary of State the power to bring buildings which are under 11m in height or have fewer than four storeys within the scope of the protections of the Building Safety Act 2022.

New clause 11—Report on providing leaseholders in flats with a share of the freehold—

“(1) The Secretary of State must publish a report outlining legislative options to ensure that all qualifying tenants in newly-constructed residential properties containing two or more flats have a proportionate share of the freehold of their property.

(2) The report must be laid before Parliament within three months of the commencement of this Act.”

This new clause would require the Secretary of State to publish a report outlining legislative options to provide leaseholders in flats with a share of the freehold.

New clause 12—Proportion of qualifying tenants required for a notice of claim to acquire right to manage—

“Section 79 of the CLRA 2002 is amended, in subsection (5), by leaving out “one-half” and inserting “35%”.”

This new clause would reduce the proportion of qualifying tenants who must be members of a proposed Right to Manage company for a claim to be made from one-half to 35%.

New clause 13—Prohibition on new leasehold homes—

“(1) Within three months of the passage of this Act, the Secretary of State must by regulations prohibit the sale of any new leasehold home.

(2) Regulations under this section—

(a) shall be made by statutory instrument,

(b) may not be made unless a draft has been laid before and approved by resolution of each House of Parliament; and

(c) may amend primary legislation.”

New clause 14—Premises to which leasehold right to manage applies—

“Section 72 of the CLRA 2002 is amended in subsection (1)(a), by the addition at the end of the words “or of any other building or part of a building which is reasonably capable of being managed independently.””

This new clause which is an amendment to the Commonhold and Leasehold Reform Act 2002 adopts the Law Commission’s Recommendation 5 in its Right to Manage report which would allow leaseholders in mixed-use buildings with shared services or underground car park to exercise the Right to Manage.

New clause 15—Meaning of “accountable person” for the purposes of the Building Safety Act 2022—

“(1) Section 72 of the Building Safety Act 2022 is amended in accordance with subsections (2) and (3).

(2) After subsection (2)(b), insert—

“(c) all repairing obligations relating to the relevant common parts which would otherwise be obligations of the estate owner are functions of a manager appointed under section 24 of the Landlord and Tenant Act 1987 in relation to the building or any part of the building.”

(3) In subsection (6), in the definition of “relevant repairing obligation”, after “enactment”, insert “or by virtue of an order appointing a manager made under section 24 of the Landlord and Tenant Act 1987”.

(4) Section 24 of the Landlord and Tenant Act 1987 is amended in accordance with subsection (5).

(5) Omit subsection (2E).”

This new clause would provide for a manager appointed under section 24 of the Landlord and Tenant Act 1987 to be the “accountable person” for a higher-risk building.

New clause 16—Commencement of section 156 of the CLRA 2002—

“(1) Section 181 of the CLRA 2002 is amended as follows.

(2) In subsection (1), after “104” insert “, section 156”.

(3) After subsection (1) insert—

“(1A) Section 156 comes into force at the end of the period of two months beginning with the day on which the Leasehold and Freehold Reform Act 2024 is passed.””

This new clause would bring into force a requirement of the Leasehold and Freehold Reform Act 2024 that service charge contributions be held in designated accounts.

New clause 17—Eligibility for enfranchisement—

“(1) The LHRUDA 1993 is amended as follows.

(2) In section 3—

(a) in subsection (2)(a), after third “building”, insert “, or could be separated out by way of the granting of a mandatory leaseback on the non-residential premises to the outgoing freeholder”;

(b) after sub-paragraph (2)(b)(ii), insert “or

(iii) are reasonably capable of being managed independently or are already subject to separate management arrangements;”

(3) In section 4(1)(a)(ii), after “premises;”, insert “nor

(iii) reasonably capable of being separated out by way of the granting of a mandatory leaseback and reasonably capable of being managed independently from the residential premises;””

This new clause would ensure that leaseholders in mixed-use blocks with shared services with commercial occupiers would qualify to buy their freehold.

New clause 18—Right to manage: procedure following an application to the appropriate tribunal—

“(1) The CLRA 2002 is amended as follows.

(2) After section 84, insert—

“84A Procedure following an application to the appropriate tribunal

(1) Where an application is made to the appropriate tribunal under section 84(3) for a determination that an RTM company was on the relevant date entitled to acquire the right to manage the premises, the Tribunal may, if satisfied that it is reasonable to do so, dispense with—

(a) service of any notice inviting participation;

(b) service of any notice of claim;

(c) any of the requirements in the provisions set out in subsection (2); or

(d) any requirement of any regulations made under this part of this Act.

(2) Subsection (1)(c) applies to the following provisions of this Act—

(a) section 73;

(b) section 74;

(c) section 78;

(d) section 79;

(e) section 80;

(f) section 81.””

This new clause would provide the appropriate tribunal with the discretion to dispense with certain procedural requirements where it is satisfied that it is reasonable to do so. It is designed to deal with cases where a landlord attempts to frustrate an RTM claim by procedural means.

New clause 19—Service charges: consultation requirements—

“(1) The Landlord and Tenant Act 1985 is amended as follows.

(2) In section 20ZA, after subsection (1), insert—

“(1A) “Reasonable” for the purpose of subsection (1) is a matter of fact for the tribunal, which—

(a) may or may not consider the matter of relevant prejudice to the tenant. If prejudice is to be considered the burden is on the landlord to demonstrate a lack of prejudice or to prove the degree of prejudice;

(b) must include consideration of the objectives of increasing transparency and accountability, and the promotion of professional estate management, as well as of ensuring that leaseholders are protected from paying for inappropriate works or paying more than would be appropriate;

(c) must consider the dignity and investment of the tenant, who should be treated as a core participant in the process of service charge decisions;

(d) must have regard to the tenant’s legitimate interest in a meaningful consultation process, bearing in mind that minor or technical breaches may not impinge on the tenant’s interest, nor prejudice the tenant;

(e) at its discretion may or may not consider a reconstruction of the ‘what if’ situation, analysing what would have happened had the consultation been followed properly. The landlord is liable for the costs of such a reconstruction.””

This new clause would set matters for the tribunal to consider when deciding whether to dispense with all or any of the requirements for landlords to consult tenants in relation to any major works.

New clause 20—Building insurance and section 39 of the Financial Services and Markets Act 2000—

“A landlord may not manage or arrange insurance for their building under the protections of section 39 of the Financial Services and Markets Act 2000.”

This new clause precludes a landlord from operating as an appointed representative under the licence of Broker, where the landlord has no such licence themselves.

New clause 21—Collective enfranchisement: removal of prohibition on participation—

“(1) Section 5 of the LRHUDA 1993 is amended in accordance with subsection (2).

(2) Omit subsections (5) and (6).”

This new clause would implement recommendation 41 of the Law Commission’s report on enfranchisement, that the prohibition on leaseholders of three or more flats in a building being qualifying tenants for the purposes of a collective enfranchisement claim should be abolished.

New clause 22—Leases for new dwellings: default length—

“(1) Where a lease is a regulated lease, it must be issued with a lease term of at least 990 years.

(2) In this section—

“regulated lease” means a lease which meets the following conditions—

(a) it is a long lease of a single dwelling;

(b) it is granted for a premium;

(c) it is granted on or after the relevant commencement day but not in pursuance of a contract made before that day; and

(d) when it is granted, it is not an excepted lease.

the “relevant commencement day” is 1 January 2025.”

This new clause would ensure that all leases created for new flats following 1 January 2025 come with a default length of 990-years, bringing the position of future private sector leases into line with the existing requirements under Home England’s new model shared ownership lease

New clause 23—Report on disadvantage suffered by existing leaseholders—

“(1) Within 12 months of this Act receiving Royal Assent, the Secretary of State must commission an independent evaluation of the matter set out in subsection (2) and must lay the report of the evaluation before Parliament.

(2) The matter is the extent to which a tenant who has extended their lease or purchased the freehold of their property after 27 November 2023 but prior to this Act receiving Royal Assent (Tenant A) is disadvantaged in comparison to a tenant who has extended their lease or purchased the freehold of their property after this Act received Royal Assent (Tenant B).

(3) The report must take account of the following factors—

(a) marriage value;

(b) the legal costs likely to be incurred by the freeholder; and

(c) any charge for which Tenant A would be liable but Tenant B would not.

(4) The report must make recommendations to redress any significant disparities between the costs for which Tenant A would be liable but Tenant B would not.

(5) The Secretary of State may by regulations give effect to any recommendations made in the evaluation.

(6) Regulations under this section—

(a) shall be made by statutory instrument; and

(b) may not be made unless a draft has been laid before and approved by resolution of each House of Parliament.”

This new clause would require the Secretary of State to commission an independent evaluation of any disadvantages faced by a tenant who has extended their lease or purchased the freehold of their property after the introduction of this Bill but prior to it receiving Royal Assent.

New clause 24—Asbestos remediation—

“(1) The Leasehold Reform, Housing and Urban Development Act 1993 is amended as follows.

(2) After section 37B, insert—

“37C Asbestos remediation

(1) This section applies where a claim to exercise the right to collective enfranchisement in respect of any premises is made by tenants of dwellings contained in the premises and the claim is effective.

(2) Not less than 3 months before the effective date of the enfranchisement, the landlord must cause a structural survey of the premises to be undertaken by an accredited professional to ascertain whether asbestos is, or is liable to be, present in those parts of the premises which the landlord is responsible for maintaining.

(3) Where the survey required by subsection (2) reveals the presence of asbestos, the landlord must, at the landlord’s cost, arrange for its safe removal.

(4) If the removal of asbestos required by subsection (3) is not carried out before the responsibility for maintaining the affected parts transfers to another person under the claim to exercise the right of collective enfranchisement, the landlord is liable for the costs of its removal.””

New clause 25—Right to statutory compensation when landlord alters premises—

“(1) This section applies when both of the following conditions are satisfied—

(a) the first condition is that there are premises in which at least one dwelling is let on a long lease to a person (“T”); and

(b) the second condition is that the landlord or any superior landlord (“L”) under T’s long lease undertakes substantial development to the premises containing T’s dwelling.

(2) When both of the conditions mentioned in subsection (1) are satisfied, L must pay to T compensation reflecting the disruption caused by the substantial development.

(3) The compensation due from L to T under subsection (2) is to be calculated and paid by L to T at a time and in a manner according to regulations made by the Secretary of State.

(4) Notwithstanding any term of any agreement to the contrary, whether the agreement is made before or after the coming into force of this section—

(a) T may set-off any part of any compensation due from L but not paid by L in accordance with this section against any service charges demanded by L; and

(b) L may not exercise or omit to exercise any right, or otherwise take any step, to prejudice T as a result of any set-off exercised by T in accordance with this section.

(5) The County Court has jurisdiction to determine any dispute regarding compensation payable under this section.

(6) Regulations under this section—

(a) are to be made by statutory instrument;

(b) may make provision generally or only in relation to specific cases;

(c) may make different provision for different purposes;

(d) may include supplementary, incidental, transitional or saving provision.

(7) A statutory instrument containing regulations under this section is subject to the negative procedure.

(8) In this section—

“long lease” has the same meaning has the same meaning as in Chapter 1 of Part 2 of the Commonhold and Leasehold Reform Act 2002 (see sections 76 and 77 of that Act);

“service charge” has the same meaning as in section 18 of the Landlord and Tenant Act 1985 (as amended by this Act);

“substantial development” means demolishing, reconstructing or carrying out substantial works of construction on, the whole or a substantial part of the premises.”

This new clause is proposed after clause 21. It would require landlords who extend or alter buildings to pay statutory compensation to residential leaseholders in that building, for example when adding new storeys under permitted development rights. Residential leaseholders would have the right to set-off this compensation against service charges if landlords did not pay.

New clause 36—Codes of management practice: requirement to adhere—

“In section 87 of the LRHUDA 1993 (codes of management practice)—

(a) after subsection (1) insert—

“(1A) If—

(a) the Secretary of State has not approved a code or codes of practice which appear to him to promote desirable practices in relation to all necessary matters concerned with the management of residential property by relevant persons within three months of the passage of the Leasehold and Freehold Reform Act 2024, or

(b) as a consequence of the withdrawal of his approval of a code or modifications under subsection (1)(c) it appears to him that codes of practice in relation to all necessary matters are no longer in place,

he must draw up a code or modifications in relation to such matters as he considers necessary and treat that code, or those modifications, as if submitted to him under subsection (1)(a)(ii).”

(b) in subsection (7)—

(i) omit the words “not of itself”, and

(ii) for “but”, substitute “and”.”

This new clause would amend section 87 of the Leasehold Reform, Housing and Urban Development Act 1993 so as to make the codes of practice allowed for under that section mandatory (paragraph (b)), and to require the Secretary of State to ensure that such codes of practice are in place (paragraph (a)).

New clause 37—Qualification in property management—

“In section 87 of the LRHUDA 1993 (codes of management practice), after subsection (6), insert—

“(6A) A code of practice approved under this section must require a person who discharges management functions in respect of residential property to hold a relevant qualification in property management.””

This new clause, together with NC36, would require any person who discharges management functions in respect of residential property to hold a relevant qualification in property management.

New clause 38—Information to be given to prospective purchasers of leasehold residential property—

“In the LTA 1985, after section 30P (as inserted by section 40) insert—

“Information to be given to prospective purchasers of leasehold residential property

30Q Information to be given to prospective purchasers of leasehold residential property

(1) The landlord must ensure that any person purchasing the lease of a dwelling is provided at the point of purchase with a copy of the Government guidance entitled “How to Lease”, as it may be updated from time to time.

(2) For the purposes of this section, “landlord” has the same meaning as in sections 30K to 30N (see section 30P).””

New clause 39—Rights of first refusal on disposal of freehold homes—

“(1) Within three months of the passage of this Act, the Secretary of State must by regulations provide for the rights of first refusal granted to qualifying tenants of flats by Part 1 of the Landlord and Tenant Act 1987 to be extended to tenants of freehold houses.

(2) Regulations under subsection (1)—

(a) may amend primary legislation;

(b) are subject to the affirmative procedure (but see subsection (3)).

(3) If before approving a draft of regulations under subsection (1) both Houses of Parliament have agreed amendments to that draft, the Secretary of State must make the regulations in the form of the draft as so amended.”

New clause 40—Failure of landlords to respond to requests for enfranchisement—

“(1) Within three months of the passage of this Act, the Secretary of State must conduct a review of the problems faced by tenants wishing to exercise their right to enfranchisement whose landlords do not respond to enfranchisement requests.

(2) A report of the review must be laid before Parliament as soon as it has been completed.

(3) The Secretary of State may by regulations implement any recommendation of the review.

(4) Regulations under subsection (3) may amend primary legislation.”

New clause 41—Report on disadvantage due to payment of marriage value—

“(1) Within 12 months of the passage of this Act, the Secretary of State must commission an independent evaluation of the matter set out in subsection (2) and must lay the report of the evaluation before Parliament.

(2) The matter is the extent to which a tenant who has been required to pay marriage value when extending their lease (Tenant A) is disadvantaged in comparison to a tenant who has extended their lease after the passage of this Act (Tenant B).

(3) The report must—

(a) make recommendations to redress any significant disparities between the marriage value costs for which Tenant A would be liable but Tenant B would not; and

(b) recommend the date after which Tenant A must have extended their lease in order to be eligible for any financial redress.

(4) The Secretary of State may by regulations give effect to any recommendations made in the evaluation.

(5) Regulations under this section—

(a) are to be made by statutory instrument; and

(b) may not be made unless a draft has been laid before and approved by resolution of each House of Parliament.”

This new clause would require the Secretary of State to commission an independent evaluation of any disadvantages faced by a tenant who has been required to pay marriage value when extending their lease in comparison to a tenant who has extended their lease after the passage of this Act and therefore not been required to pay marriage value.

New clause 67—Liability of freeholders for central heating failures—

“(1) Within 12 months of the passage of this Act, the Secretary of State must commission an independent evaluation of the matters set out in subsection (2) and must lay the report of the evaluation before Parliament.

(2) The matters are, where there is a failure of a communal central heating system for which a freeholder is responsible which lasts for a minimum of 24 hours—

(a) the extent to which a freeholder should be liable; and

(b) whether, if the freeholder is considered to some extent to be liable, financial penalties should be imposed on the freeholder.

(3) The Secretary of State may by regulations give effect to any recommendations made in the evaluation.

(4) Regulations under this section—

(a) are to be made by statutory instrument; and

(b) may not be made unless a draft has been laid before and approved by resolution of each House of Parliament.”

This new clause would require the Secretary of State to commission an independent evaluation of the matter of holding freeholders financially liable for long-lasting central communal heating failures where the freeholder has a responsibility for upkeep.

“New clause 68—Shared ownership—

(1) Within three months of the passage of this Act, the Secretary of State must by regulations create certain rights and obligations for leaseholders and freeholders on all leasehold properties which are subject to a shared ownership model created after 1967.

(2) The rights referred to in subsection (1) are that any leaseholder has the right to increase their share of the freehold in the property in increments of either ten percent or 25 percent on giving formal notice in writing to the freeholder.

(3) The obligation referred to in subsection (1) is that the freeholder may not charge a rent on their freehold share of the property which is greater than 2.75% of the market value of the share of the property which they hold.

(4) Rights and obligations created by regulations under this section are to apply notwithstanding any legal agreement previously entered into between the leaseholder and the freeholder.”

Amendment 3, in clause 3, page 2, line 19, at end insert—

“(2) After section 4(5) of the LRHUDA 1993, insert—

“(6) The Secretary of State or the Welsh Ministers may by regulations amend this section to provide for a different description of premises falling within section 3(1) to which this Chapter does not apply.

(7) Regulations may not be made under subsection (6) unless a draft of the regulations has been laid before, and approved by resolution of—

(a) in the case of regulations made by the Secretary of State, both Houses of Parliament;

(b) in the case of regulations made by the Welsh Ministers, Senedd Cymru.”

(3) In section 100 of the LRHUDA 1993—

(a) in subsection (2), after “making”, insert “provision under section 4(6) or”;

(b) in subsection (3), after “making”, insert “provision under section 4(6) or”.”

This amendment would enable the Secretary of State or (in the case of Wales) the Welsh Ministers to change the description of premises which are excluded from collective enfranchisement rights. Such a change would be subject to the affirmative resolution procedure.

Government amendments 24 to 31.

Amendment 6, in clause 12, page 16, leave out from line 27 to line 20 on page 17.

This amendment would leave out the proposed new section 19C of the Leasehold Reform Act 1967, and so ensure that leaseholders are not liable to pay their landlord’s non-litigation costs in cases where a low value enfranchisement or extension claim is successful.

Government amendments 32 to 34.

Amendment 7, in clause 13, page 22, leave out lines 1 to 29.

This amendment would leave out the proposed new section 89C of the Leasehold Reform, Housing and Urban Development Act 1993, and so ensure that leaseholders are not liable to pay their landlord’s non-litigation costs in cases where a low value enfranchisement or extension claim is successful.

Amendment 2, in clause 14, page 26, line 40, at end insert—

“(ja) any matter arising under Clause [Estate management: compensation] of the Leasehold and Freehold Reform Act 2024.”

This is a paving amendment for NC2.

Amendment 1, page 28, line 11, at end insert—

“(8A) When considering any matter under this section, the appropriate tribunal must have regard to previous decisions made by an appropriate tribunal in matters which appear, to it, to be materially similar to the matter under consideration under this section.”

This amendment would require tribunals considering cases related to leasehold to have regard to precedent set by previous decisions of tribunals in similar cases.

Government amendments 35 and 36.

Amendment 17, in clause 22, page 39, line 14, leave out “50%” and insert “75%”.

This amendment would allow leaseholders with a higher proportion of commercial or non-residential space in their building to claim the Right to Manage.

Amendment 9, in clause 23, page 40, leave out from the beginning of line 27 to the end of line 27 on page 41.

This amendment would leave out the proposed new section 87B of the Commonhold and Leasehold Reform Act 2002 and so ensure that RTM companies cannot incur costs in instances where claims cease.

Amendment 19, in clause 29, page 46, line 26, at end insert—

“(iii) a statement of all transactions relating to any sinking fund or reserve fund.”

This amendment would require the written statement of account which the landlord will be required to provide to a tenant to include a statement of all transactions relating to any sinking fund or reserve fund in which their monies are held.

Amendment 12, page 47, line 16, at end insert—

“(8) Where a landlord of any such premises fails to comply with the terms implied into a lease by subsection (2), any rent, service charge or administration charge otherwise due from the tenant to the landlord shall be treated for all purposes as not being due from the tenant to the landlord at any time before the landlord does comply with those subsections.”

This amendment would require courts and tribunals to treat the landlord’s compliance with the implied term requirement for annual accounts and certification as a condition precedent to the lessee’s obligation to pay their service charges.

Amendment 13, page 48, line 11, at end insert—

“(9) Where a landlord fails to comply with subsection (1), any rent, service charge or administration charge otherwise due from the tenant to the landlord shall be treated for all purposes as not being due from the tenant to the landlord at any time before the landlord does comply with that subsection.”

This amendment would require courts and tribunals to treat the landlord’s compliance with the implied term requirement for annual accounts and certification as a condition precedent to the lessee’s obligation to pay their service charges.

Amendment 14, in clause 30, page 50, leave out lines 12 to 19 and insert—

“(4) P may not charge R any sum in excess of the prescribed amount in respect of the costs incurred by P in doing anything required under section 21F or this section.

(5) The prescribed amount means an amount specified in regulations by the appropriate authority; and such regulations may prescribe different amounts for different activities.

(6) If P is a landlord, P may not charge the tenant for the costs of allowing the tenant access to premises to inspect information (but may charge for the making of copies).”

This amendment would make the appropriate authority (i.e. the Secretary of State or the Welsh Ministers) responsible for setting a prescribed amount for the costs of providing information to leaseholders. That prescribed amount would be the maximum amount that freeholders and managing agents employed by them could seek to recover through a service charge.

Amendment 15, in clause 31, page 51, line 35, leave out “£5,000” and insert “£30,000”.

This amendment would raise the cap on damages under this section for a failure to comply with duties relating to service charges to £30,000.

Amendment 16, page 51, line 35, at end insert—

“(5A) Damages under this section must be at least £1,000.”

This amendment would insert a floor on damages under this section of £1,000.

Amendment 20, in clause 32, page 52, line 32, leave out from beginning to end of line 33 and insert—

“(a) exceed the net rate charged by the insurance underwriter for the insurance cover, and”.

This amendment would define an excluded insurance cost as any cost in excess of the actual charge made by the underwriter for placing the risk, where such cost is not a permitted insurance payment.

Amendment 21, page 52, line 35, leave out from beginning to end of line 6 on page 53.

This amendment, to leave out subsection (3) of the proposed new section 20G of the Landlord and Tenant Act 1985, is consequential on Amendment 20.

Amendment 22, page 53, line 18, at end insert—

“(5A) The regulations must specify a broker’s reasonable remuneration at market rates as a permitted insurance payment.

(5B) The regulations must exclude any payment which arises, directly or indirectly, from any breach of trust, fiduciary obligation or failure to act in the best interests of the tenant.”

This amendment would require “permitted insurance payment” to include payment of a reasonable sum to a broker at market rates for placing the cover, and to exclude any payments which have arisen from wrongdoing.

Amendment 10, page 60, line 2, leave out clause 35.

Government amendments 37 to 41.

Amendment 18, in clause 46, page 75, line 23, at end insert—

“(c) only where they are incurred in the provision of services or the carrying out of works that would not ordinarily be provided by local authorities.”

This amendment would mean that services or works that would ordinarily be provided by local authorities are not relevant costs for the purposes of estate management charges.

Government amendment 42.

Amendment 83, in clause 74, page 97, line 37, at end insert—

“(2) Within three months of the passage of this Act, the Secretary of State must publish guidance on the circumstances in which the Secretary of State will give financial assistance or make other payments under this section.”

This amendment would require the Secretary of State to publish guidance on the circumstances in which financial assistance would be made available for the establishment or maintenance of estate management redress schemes.

Government amendments 43 to 48.

Amendment 11, in page 104, line 30, leave out clause 83.

See explanatory statement to NC4.

Government amendments 85 and 49.

Government new schedule 1—Part 5: Amendments to other Acts.

Government new schedule 2—Categories of permitted lease.

Government new schedule 3—Leasehold houses: financial penalties.

Government amendments 50 to 53.

Amendment 4, in schedule 2, page 136, line 40, at end insert—

“(9) In setting the deferment rate the Secretary of State must have regard to the desirability of encouraging leaseholders to acquire their freehold at the lowest possible cost.”

This amendment would ensure that when determining the applicable deferment rate, the Secretary of State would have to have regard to the desirability of encouraging leaseholders to acquire their freehold at the lowest possible cost.

Amendment 5, page 138, line 6, at end insert—

“(7A) In setting the deferment rate the Secretary of State must have regard to the desirability of encouraging leaseholders to extend their lease at the lowest possible cost.”

This amendment would ensure that when determining the applicable deferment rate, the Secretary of State would have to have regard to the desirability of encouraging leaseholders to extend their lease at the lowest possible cost.

Government amendments 54 to 67.

Amendment 8, in schedule 7, page 168, line 15, leave out sub-sub-paragraph (a).

This amendment would ensure that all leaseholders, not just those with residential leases of 150 years or over, have the right to vary their lease to replace rent with peppercorn rent.

Government amendments 68 to 82, 84 and 23.

[Lee Rowley]

Let me begin by thanking Members in all parts of the House for their valuable contributions to the Bill. It is good to see that so many who have been involved so far are present; a number of them have been campaigning for these changes for years. I will not be able to name everyone, but I pay tribute to, in particular, my right hon. Friends the Members for Bromsgrove (Sir Sajid Javid), and for Newark (Robert Jenrick), my late right hon. Friend the former Member for Old Bexley and Sidcup, James Brokenshire, and my hon. Friend the Member for Redditch (Rachel Maclean), all of whom have played such important roles in preparing the ground for many of the measures before us today. They have all been invaluable in helping us to reach the point at which we deliver on the commitment that we made to reform a system that clearly needs change, and give millions the freedom, security and control over their life that comes with home ownership in its truest, fullest sense.

At a stroke, the Bill will provide that greater control for young people and many others. It will help to reduce unnecessary stress, uncertainty and wasted time by reforming a labyrinthine system and making it better. Buying a home, especially a first home, must be a moment of pride and celebration—a just reward for years of hard work, careful saving, sacrifices made, and doing the right thing. For some, however, the dream of home ownership is realised in soaring service charges, rip-off insurance commissions and escalating ground rents. Overall, and most infuriatingly, there is a sense of being left in the dark, and of a system that is working against, rather than for, the homeowner. That is bad for everyone, but it is notable that first-time buyers constitute nearly 50% of leaseholders; 15% of owner-occupiers are aged under 35. They are the future of our property-owning democracy, and they rightly expect and deserve to put down roots and have the same stake in society as previous generations.

--- Later in debate ---

[Madam Deputy Speaker (Dame Rosie Winterton)]

Order. Colleagues will see that a lot of right hon. and hon. Members wish to contribute to this debate, which has to finish at 6 pm. I will want to bring the Minister back for a short time. Another Deputy Speaker is taking over in a moment, but let me advise that those speaking from the Back Benches should be prepared to speak for between six and seven minutes, in order for us to get everybody in. I am afraid that that is because of the pressure on time. I call the shadow Minister.

[Matthew Pennycook (Greenwich and Woolwich) (Lab)]

I start by declaring an interest: my wife is the joint chief executive of the Law Commission, whose work in this area I intend to reference in my remarks.

I rise to speak to the amendments and new clauses that stand in my name. Before doing so, I would like to put on record my thanks to all those hon. Members who served on the Public Bill Committee for so ably scrutinising the many technical and complex provisions that the Bill contains. There were, as one would expect, differences of opinion and emphasis, but it was also evident that there is a shared recognition that the Bill can and should be improved further, and an unusual degree of cross-party agreement as to some of the ways that might be achieved.

Despite reams of Government amendments tabled in Committee and for our consideration today, this Bill remains a distinctly unambitious piece of legislation. That is a matter of deep regret to those on the Labour Benches, not only because the Government’s paucity of ambition will see exploited leaseholders wait even longer for the current iniquitous leasehold system to be ended, but because it is also manifestly clear that there is widespread support across the House to go much further than this limited Bill does. Responsibility for the fact that the Bill does not contain so many of the commitments that successive Conservative Secretaries of State have made over recent years, not least in relation to the promised widespread introduction of the commonhold tenure, ultimately lies with Ministers. They had the opportunity to bring forward bold leasehold and commonhold reform legislation, and they made a political decision not to do so.

Although the Opposition appreciate the understandable desire of many leaseholders to see this Bill completely revamped so that it lives up to the many weighty promises made by the Government since 2017, we made clear at the outset in Committee that we did not intend to try to persuade Ministers to radically overhaul it by means of the many hundreds of amendments that would be required to implement all the Law Commission’s recommendations on enfranchisement, right to manage and commonhold. That remains our position. Whether this Bill receives Royal Assent or not before this Parliament is dissolved, a Labour Government will have to finish the job of finally bringing the leasehold system to an end by overhauling it to the lasting benefit of leaseholders and reinvigorating commonhold to such an extent that it will ultimately become the default and render leasehold obsolete. I reassure leaseholders across the country that we are absolutely determined to do so.

We recognise, however, that this limited Bill will provide a degree of relief to leasehold and freehold homeowners in England and Wales by giving them some greater rights, powers and protections over their homes. For that reason, we are extremely pleased it will complete its passage today, but we are determined to send to the other place the most robust piece of legislation that we can. That means rectifying the Bill’s remaining flaws and incorporating into it a select number of measures to further empower leaseholders and improve their rights. With that objective in mind, we have tabled a series of amendments and new clauses for consideration today. That they are almost identical to a number of those we discussed at length in Committee is a deliberate choice that reflects not only the importance we place on the changes they seek to secure, but the distinct lack of convincing responses from the Minister in Committee as to why the Government felt they needed to resist them.

Part 1 of the Bill concerns leasehold enfranchisement and extension. In seeking to implement the small subset of reasonable and proportionate Law Commission recommendations, it is almost entirely uncontentious. However, we believe that several provisions in this part are defective. We sought to remedy their deficiencies in Committee and we have tabled a number of amendments in an attempt to do so again.

Amendments 4 and 5 concern arguably the most significant provisions in this part when it comes to ensuring that the process of extending a lease or acquiring a freehold is as cheap as possible for existing leaseholders—namely the proposed new valuation process as provided for in clauses 9 to 11 and schedules 2 and 3. The current valuation method has a number of manifest flaws, and we fully support the new method as proposed in the Bill. However, with the applicable deferment rate becoming the primary driver of price to be paid in enfranchisement or extension claims under the new method, as a result of the abolition of marriage and hope value and the peppercorning of ground rents in the valuation calculation, we believe it is essential that it is set in a way that is fair to leaseholders. While the Government ostensibly agree, there is nothing on the face of the Bill to ensure that that will be the case and we therefore remain convinced that this Government, or a future one, could be lobbied by vested interests to set a deferment rate that will be punitive to leaseholders.

In resisting our efforts to amend the Bill in Committee to guard against such an outcome, the Minister argued that the Secretary of State must have flexibility to make decisions on the rate or rates. We agree; we are not suggesting that we bind the hands of Ministers by prescribing the rate or rates on the face of the Bill, but we do believe that the legislation should be amended to place a clear obligation on the Secretary of State to set a rate or rates with the overriding objective of encouraging leaseholders to acquire their freehold at the lowest possible cost.

Inter Faith Network Closure

Baroness Winterton of Doncaster Excerpts

Thursday 22nd February 2024 Commons Chamber

[Felicity Buchan]

I thank my right hon. Friend for all her work on inter-faith matters. What has changed since July is the appointment in November of a trustee who is a member of the MCB. In terms of inter-faith work, there are so many examples of positive, thriving initiatives across the country that are bringing people together. The Department for Levelling Up, Housing and Communities funds a number of those partners, including Near Neighbours and Strengthening Faith Institutions, which organise local-level inter-faith events to foster community cohesion.

[Madam Deputy Speaker (Dame Rosie Winterton)]

I call the shadow Minister.

[Liz Twist (Blaydon) (Lab)]

I thank my right hon. Friend the Member for East Ham (Sir Stephen Timms) for securing the urgent question.

Inter-faith and multi-faith dialogue are absolutely essential components of society, not only to resolve differences but to build strong and collaborative communities that are able to come together in times of need. Given recent events—the war and violence in Gaza—that is more important than ever. As I am sure the whole House recognises, the Government have a special responsibility to facilitate positive relationships between different faith communities, and although I appreciate that the Minister has now given some explanation of why they have chosen to withdraw funding for the IFN, outstanding questions remain.

Let me ask the Minister some straightforward questions. When was the decision to withdraw funding from the network made? What impact assessment was made, and what discussions were had about the vital need to continue to promote understanding about and between different faith groups, and to encourage co-operation? When was the Inter Faith Network notified of the decision? Does the Minister have plans to increase support for other groups to make up for any loss of provision arising from this decision?

Every Department will inevitably monitor and review the grants that they award, but the House should expect that to be done in the spirit of due process. As politicians, we have a responsibility to bring communities together. At a time when divisions are being exposed, I hope that the Minister can assure the House that the Government remain committed to inter-faith and multi-faith dialogue.

--- Later in debate ---

[Felicity Buchan]

I think understanding of faiths is incredibly important, and that is why we encourage inter-faith work, especially at a local level. I have already talked about what I do in my constituency, and I find it very valuable. In this particular instance, we cannot continue to fund the Inter Faith Network, but we do fund other organisations, and we wish them well. We have always made it clear to the Inter Faith Network that it needed to develop alternative sources of funding.

[Madam Deputy Speaker (Dame Rosie Winterton)]

I thank the Minister for answering the urgent question.

Political Parties, Elections and Referendums

Baroness Winterton of Doncaster Excerpts

Wednesday 31st January 2024 Commons Chamber

[Several hon. Members rose—]

[Madam Deputy Speaker (Dame Rosie Winterton)]

This debate has to finish at 4.13 pm. I ask colleagues to be aware of that. There are five more speakers and a little brevity might help.

--- Later in debate ---

[Mr Betts]

The Minister’s right hon. friend the Member for Norwich North raised it, and she was the Minister who took the Bill through Parliament, so it is worth taking seriously what she had to say.

The Minister did not tell us what problems the statement is meant to address. It would be helpful if he did so. [Interruption.]

[Madam Deputy Speaker (Dame Rosie Winterton)]

Order.

[Mr Betts]

I am sorry, Madam Deputy Speaker. I am just trying to encourage the Minister to be helpful to us. Obviously I am struggling in that regard.

--- Later in debate ---

[Dawn Butler (Brent Central) (Lab)]

The Minister is better than this motion—let us all agree on that. Like the SNP spokesperson, the hon. Member for Glasgow North (Patrick Grady), I think it is a hangover from the Boris Johnson days, when the Electoral Commission upset him and he wanted to influence it. The Minister can correct me if I am wrong.

The Government claim that this strategy will enhance the parliamentary accountability of the Electoral Commission and increase public confidence in its work, but as everybody has stated today, it will do the complete opposite. This strategy and policy statement is little more than an attempt by the Government to undermine the independence of the Electoral Commission and to stamp their own agenda on the regulation of our democracy. This is a fight for our democracy.

We in this House need to take back control—that is important. Avoiding transparency and accountability seems to be the hallmark of the Government. Do not just take my word for it; the Electoral Commission itself wrote to MPs this week stressing that the principle of independence is crucial to maintaining confidence in our electoral system. It warned Members:

“The introduction of a mechanism such as a strategy and policy statement—by which a government can guide an electoral commission’s work—is inconsistent with this independent role.”

If the commission is saying that, and the Speaker’s Committee is saying it, why is the Minister trying to convince us otherwise? It really does not make any sense.

As we have heard many times, this is not the first time that the Government have attempted to rig our democracy. They forced through their voter ID system, which threatened to disenfranchise the most vulnerable in society. Remember that, as my hon. Friend the Member for Lancaster and Fleetwood (Cat Smith) mentioned, the right hon. Member for North East Somerset (Sir Jacob Rees-Mogg) let it slip that that was a deliberate attempt to manipulate electoral outcomes in favour of the Conservative party, and then went, “Whoops!” because he had made a mistake and said the quiet bit out loud. It is not a shock that the Government are once again attempting to influence an independent body that oversees our elections, but it should shock us all.

This draft strategy and policy statement sets out the Government’s strategic and policy priorities for the Electoral Commission. It also contains

“guidance to which the Commission must have regard in the discharge of its functions.”

That places on the commission a concerning legal duty to consider first and foremost the Government’s priorities when fulfilling its duties. If it does that, it cannot be independent, and the whole point is that it is supposed to be independent. It is simply unacceptable for the Government to direct the commission on how it should carry out its functions. If a foreign Government were wielding that much power over their elections, there would be calls to send in independent advisers to ensure that their elections were being held democratically—that is how bad this is. When people ask, “Do we have corruption in our Government?”, I say, “Yes, we do, and this is an example of that.”

The Government keep focusing on the prevention and detection of voter fraud, yet there is little evidence that voter fraud is widespread. In fact, it is so rare that there were only nine convictions—

[Madam Deputy Speaker (Dame Rosie Winterton)]

Order. The hon. Lady talked about corruption in Government. I want her to withdraw that; she needs to rephrase what she said. She does know that—she is very experienced—so I ask her to say at this point that she withdraws any allegations of corruption within Government.

[Dawn Butler]

Thank you, Madam Deputy Speaker. I withdraw the statement that the Government are corrupt, or that there is corruption in the Government—I do not know for sure, but I withdraw that statement.

There are, however, issues that need tackling, and the motion does not achieve that. There are rising considerations, such as the threat of generative AI, the use of deepfakes, the spread of disinformation and the scraping of people’s data. None of that has been tackled today—I wonder why, although according to the fact checking organisation First Draft, 88% of the Conservative party’s most shared online adverts in the final days of the 2019 general election campaign were found to have contained misleading information.

When the Minister gets to his feet, I hope that he will change his mind, because he is respected across the House and this motion is going to damage his reputation. As I have said, I urge the House to take back control and reject the motion.

Teesworks Joint Venture

Baroness Winterton of Doncaster Excerpts

Monday 29th January 2024 Commons Chamber

[Ian Lavery (Wansbeck) (Lab)]

On a point of order, Madam Deputy Speaker. The Minister has just said that my hon. Friend the Member for Middlesbrough (Andy McDonald) is not in his place. He should recognise that my hon. Friend has been through some serious surgery and has a proxy vote for the foreseeable future. Will he acknowledge that that is the case, instead of having a snide go at my hon. Friend?

[Madam Deputy Speaker (Dame Rosie Winterton)]

I thank the hon. Gentleman for his point of order. I had assumed that the Minister had informed the hon. Member for Middlesbrough (Andy McDonald) that he was going to refer to him, so I had also assumed that the Minister will have known of the circumstances.

[Lee Rowley]

indicated assent.

[Madam Deputy Speaker]

In that case, yes, the Minister might like to acknowledge that he recognises there is a reason why the Member is not in his place.

[Lee Rowley]

I am absolutely happy to acknowledge to all Members that the Member is not in his place for a reason. Equally, however, the Member made a series of statements previously and I am seeking to respond to those.

[Madam Deputy Speaker]

Order. That is not really—[Interruption.] Excuse me, but I can handle this, thank you. That is not really what I was referring to. I was just referring to the fact that there is a reason why the Member is not in his place, not the other points the Minister is making. Minister, do carry on.

[Lee Rowley]

These accusations are about the most serious that can be made. If true, they would almost certainly be criminal, and their mere existence threatens confidence in this immensely important, complicated and challenging project. At the request of the Tees Valley Mayor, an extraordinary independent review was launched by my right hon. Friend the Secretary of State for Levelling Up, Housing and Communities, to consider the allegations as well as the combined authority’s oversight role. Today we have the answers to the primary question about the extremely serious charges of corruption and illegality—they are not correct; they are untrue. For the avoidance of doubt, let me repeat that: no corruption, no illegality. There is no evidence to back up the worst of the allegations repeatedly thrown at the local parties managing the project, no referrals onwards to other bodies for further review, and no substance to the most serious of allegations.

In addition, and at the Secretary of State’s request, the panel has also made a series of constructive recommendations, including strengthening governance and increasing transparency. We welcome that oversight, as does the Mayor of the Tees Valley, who has confirmed that he intends, in principle, to accept all the recommendations relevant to him and his authority. For the two recommendations relevant to central Government, the Department will carefully consider how to support the continued success of mayoral development corporations across the country.

I know that colleagues in the Department for Environment, Food and Rural Affairs and His Majesty’s Treasury will also consider the recommendation regarding landfill tax. My right hon. Friend the Secretary of State has today written to the Tees Valley Mayor, asking that he responds to the panel’s recommendations, with an initial response within six weeks. My right hon. Friend will of course wait to review those proposals before deciding on further action, but the central point bears repeating: nothing was found by the reviewers to support the very serious allegations made.

This report has been a detailed and thorough piece of work, and I place on the record my great thanks to the three-strong panel for their thorough and well informed work over recent months. I thank Angie Ridgwell, chief executive of Lancashire County Council; Richard Paver, previously first treasurer of the Greater Manchester Combined Authority; and Quentin Baker, director of law and governance at Hertfordshire County Council. Copies of the review, and my right hon. Friend the Secretary of State’s subsequent correspondence with the Mayor and the panel, will be placed in the Library of the House.

Finally, I wish to remind right hon. and hon. Members about the rich heritage of Tees Valley. It has a proud industrial history and this Government are committed to giving it the proudest possible future, putting it front and centre of our mission to level up the country, and supporting all our regions to prosper and flourish by making sure that local people have projects they can champion. The independent review has cleared the Tees Valley Mayor and the combined authority of lurid allegations of corruption and illegality, and it has recommended improvements that I am confident will be driven by local stakeholders. We are delighted to support a project that is bringing huge benefits to the people of Teesside and the rest of the UK, and for all those reasons I commend this statement to the House.

Leasehold and Freehold Reform Bill

Baroness Winterton of Doncaster Excerpts

2nd reading
Monday 11th December 2023 Commons Chamber

[Angela Rayner]

I thank my hon. Friend for that. Just as the Secretary of State earlier brought enthusiasm to the Dispatch Box on cladding and some issues we faced there, I hope that, in Committee, we can explore that and the effect on people who have been affected more and more by flooding.

The Secretary of State may not have the support of his Prime Minister, or his Back Benchers—[Interruption.] Many of them are not here at the moment—watch this space!

On the Labour Benches, we are united behind the decisive action that leaseholders need. If the Government cannot deliver it, we are ready to do so. A Labour Government will make commonhold the default tenure for all new properties as part of our commitment to fundamentally and comprehensively reform the leasehold system. We will also enact the Law Commission’s recommendations on enfranchisement, commonhold and the right to manage in full.

The fact is, unless and until leaseholders of houses and flats get a renewed commitment from Ministers on all the Law Commission’s recommendations, leaseholders will reasonably conclude that the Government have scaled down their ambition with the scaled-back Bill before us. Leaseholders deserve to know the real reason why they are being fobbed off with such limited steps. Unfortunately, the answer, as ever, lies in the chaos of this Government. The Secretary of State has talked a good game, but he might be the only functional cog in a dysfunctional Government—there is a compliment in there; I am trying. [Laughter.] I hope that he will face down his Prime Minister and his own Back Benchers and accept Labour’s proposals to make the Bill meet the challenges of the moment. But if he does not, a Labour Government will.

[Madam Deputy Speaker (Dame Rosie Winterton)]

I call the Father of the House.

--- Later in debate ---

[Sir Peter Bottomley]

I agree with my hon. Friend and pay tribute to him for his work in this field. It is worth noting that building standards were set not by those who sign buildings off—the building control people—but by the Government or quasi-Government agencies, so the Government bear some responsibility as well, as I think they recognise.

In my thanks. I want to include Katherine O’Riordan, who has helped the secretariat of the all-party group and worked remarkably well. Given that my involvement as an active campaigner on this matter came through a constituency case, I pay tribute to my senior caseworker, Colette Hanson, who for many years—over a decade—has helped to support constituents facing awful problems, whether on this matter or others.

The Secretary of State referred to James Brokenshire, who carried forward many leasehold reforms. I also thank Sir Nigel Shadbolt and Sir Tim Berners-Lee and their Open Data Institute for providing help to LKP, the campaigning charity, in getting information that is publicly available and putting it together so that we could know the scale of the problem that we are facing. I pay tribute to the law commissioner Professor Nick Hopkins and his team for their 13th programme of law reform. I also pay tribute to Wendy Wilson at the House of Commons Library, who has since left, and Hannah Cromarty, who have produced briefings for Members of Parliament, which I commend to those outside this building. If they look at the House of Commons research and the LKP site, they will be as knowledgeable as me and will put across these points as effectively or more so.

Over and again I want to emphasise that people must respond to the Government’s very good consultation on ground rent. It is well-written and brings out the issues properly. I would be surprised if the dominant view were anything other than that ground rents should be reduced to peppercorns. At one stage, the Government suggested bringing it down to £10, but that still leaves most of the superstructure and the problems with leaseholders. It should be brought down to a peppercorn to eliminate those. When the consultation is analysed, I ask the Secretary of State to look with favour on reducing ground rents to zero. If I get any benefit, I will give it to a good cause, but I am not saying this for me.

I could go on at length, and at some stage I probably will. Having made my preliminary remarks, I want to say to the House that this is the opportunity, before a general election—whoever wins—to get legislation through that may be complicated in law but not in politics. Are we on the side of the people who have been at risk or exploited by interests who have owned freeholds? I have given my list of past shame, and I will not trouble the House with it now. If people have problems with their landlords or freeholders, they should tell their Member of Parliament so that they can bring it up in Committee or on Report.

I suggest that those who have used expensive lawyers to screw residential leaseholders use their money on something else. When a notable charity uses expensive lawyers to raise the cost of enfranchisement or lease extension by a third—an issue that should have come to Parliament rather than be done in the privacy of an upper property tribunal—we know that those running charities can get it wrong, too. We have left this too long. Let us now get on with it.

[Madam Deputy Speaker]

I call the Chair of the Levelling Up, Housing and Communities Committee.

Economic Activity of Public Bodies (Overseas Matters) Bill

Baroness Winterton of Doncaster Excerpts

Report stage
Wednesday 25th October 2023 Commons Chamber

[Several hon. Members rose—]

[Madam Deputy Speaker (Dame Rosie Winterton)]

Order. May I provide a little guidance? If Members speak for a maximum of about eight minutes, we will be able to get everyone in.

[Sir Michael Ellis (Northampton North) (Con)]

I support this excellent Bill and wish to speak against all the amendments. I commend my right hon. Friend the Secretary of State for taking the Bill through the House. I support it for three principal reasons: first, it is genuinely needed; secondly, boycotts are inherently discriminatory and contrary to public policy, especially when engaged in by third-tier local authorities; and thirdly, the BDS movement internationally is inextricably linked to antisemitism. I will explore those three points briefly.

Perhaps I can give the House just two examples of why the Bill is needed. The first is the example of the now bankrupt Birmingham City Council, which threatened in 2014 not to renew a contract with the French multinational company Veolia due to its operations in the west bank. In 2015, Veolia withdrew from the Israeli market as a consequence and the BDS movement claimed that decision as a victory. Of course, that hurt Palestinians as well as everyone else. Another example, shamefully, is that of the supermarket Sainsbury’s. In at least one of its branches, it was put under so much pressure that it removed kosher food products from its shelves following virulent anti-Israel protests. So this is about protecting communities and avoiding antisemitism succeeding. The Bill will prevent divisive behaviour that undermines community cohesion across the country. I am afraid to say that BDS activity has legitimised and driven antisemitism in the United Kingdom, as it exclusively targets Israel.

--- Later in debate ---

[Sir Michael Ellis]

I absolutely agree with my right hon. Friend, who makes his point eloquently.

Israel clearly has a vibrant economy and welcomes everyone. I challenge those both outside this House and in other countries who support the BDS movement to bear in mind that I suspect that they would not be able to function in today’s modern society if they were to personally boycott companies that are already deeply engaged in Israel and do business there. I will give some examples: Apple, Google, Intel, Microsoft, 3M, Alibaba, Amazon, Fujitsu, AOL, Siemens, Bosch, Sony, Texas Instruments, Samsung, Nestlé, Coca-Cola, Western Digital, Xerox, Mitsubishi, Pfizer, Salesforce, Visa, Mastercard, Honda, Ford. I have lists of dozens of companies that do business in the state of Israel. Let us bear in mind that those persons who seek to boycott Israel do so with an air of double standards. That is the very least that can be said about it. I support this Bill and reject all of the proposed amendments.

[Madam Deputy Speaker (Dame Rosie Winterton)]

I call Jeremy Corbyn.

[Jeremy Corbyn (Islington North) (Ind)]

I have not put in to speak.

[Madam Deputy Speaker (Dame Rosie Winterton)]

I call John McDonnell.

[John McDonnell (Hayes and Harlington) (Lab)]

Thank you, Madam Deputy Speaker. May I echo the comments of my right hon. Friend the Member for Barking (Dame Margaret Hodge)? If we descend into accusations that those who do not support the Bill are antisemites, or that those who support it are Islamophobic, I think we are lost, to be honest. It is important that we are careful about our language.

There is a profound misunderstanding about what we are debating. If this is about the BDS movement itself, there are mechanisms that the Government can use to proscribe an organisation. But the debate on this Bill should be about BDS as a method, a tactic. I have supported boycotting, disinvesting and sanctioning a whole range of regimes. I campaigned with and supported the anti-apartheid movement of BDS with regard to South Africa. Actually, a large number of Members on both sides of the House supported that. I also did so with regard to Saudi Arabia and its execution—tragically, it is still doing this—of members of the gay community. I have campaigned with others across the House with regard to Sri Lanka and the persecution of the Tamils, including the murder of a number of my constituents when they visited their families. I am doing the same at the moment with regard to Bahrain because of its imprisonment of the political opposition. It is the same with Russia. I was a founder member 10 years ago of the Ukraine Solidarity Campaign and we have been calling for sanctions against Russia for years—in advance of even the Government, to be honest. It is the same with Iran. I chair the Iranian workers’ movement committee, which supports trade unionists campaigning in Iran, many of whom are unfortunately in prison. There is also the Uyghurs.

On all of those, I have urged the use of BDS because when other representations and diplomacy fail, there are not many options left. One of the options, unfortunately, is the use of arms. In not promoting that, we have tried to find a middle lane, and that is economic isolation to try to influence. To be frank, it did work in South Africa. That is why we have tried to ensure that it is a mechanism that can be drawn upon. I agree, however, with my right hon. Friend the Member for Ashton-under-Lyne (Angela Rayner) on the Front Bench. The important thing is to ensure that if we use this mechanism, it is used properly and fairly and that we do not discriminate against one particular country. That is what I have not done. I have called for BDS with regard to goods coming from the occupied territories and Iran because they are against the international order.

Having sat in this House for 25 years and listened to speeches from Conservative representatives, I have learned a bit about conservatism, so what I find extraordinary is that this Bill is profoundly unconservative. Those on the Government Front Bench seem to be rejecting many of the individual amendments in front of us. I have listened to Government Members arguing that the Conservative party stands for freedom of speech, support for the law, the rights of property, the democratic rights of this Parliament, local government and other agencies, devolution of decision-making, and support for the action on the environment and human rights.

Let me turn to the amendments on freedom of speech. Amendments 28 and 3 prevent the Government introducing a gagging order on even just talking about this—having a debate about it. That is profoundly unconservative. I cannot believe that Government Members are not supporting those amendments. On the issue of rights of property, I say to the Conservative Member whose constituency I cannot remember that we are both members of the local government pension fund. The Government are overriding the rights to my property, which is my pension fund. I cannot believe that the Conservatives are doing that. That is my stored wages for over 20 years of service in local government over which I now lose control, and the amendment simply says that the members of that pension fund will be allowed to decide.

--- Later in debate ---

[Several hon. Members rose—]

[Madam Deputy Speaker (Dame Rosie Winterton)]

I thank the hon. Gentleman for keeping within time, but I am now going to impose a time limit of eight minutes, just to ensure that everybody gets the chance to speak.

[Caroline Lucas]

The speech we have just listened to from the hon. Member for Brigg and Goole (Andrew Percy) shows exactly why this is not the right time for this Bill and this debate. The speech from the right hon. Member for Hayes and Harlington (John McDonnell) that he criticised was a perfectly reasonable one making the case for the tools of boycott, sanctions and divestment. To suggest that those tools are intrinsically antisemitic is clearly and evidentially wrong. The vast generalisations that the hon. Gentleman has deployed again show why this Bill is deeply unhelpful and the timing downright dangerous.

The brutal attacks on Israeli civilians by Hamas on 7 October have filled every right-thinking person with horror and underscored the urgent need to stand against violence. We do that, in part, by defending and advocating human rights. These principles need to guide our response to the collective punishment of the civilian population of Gaza, too, and to any other unlawful action being perpetrated by the Israeli or Palestinian authorities, or by Hamas.

I am struggling to understand why, as one of the leading global champions of human rights, the UK would want to send a signal that it thinks that human rights matter only selectively—that would be the impact of the current wording if the Bill passes. It would say to the world that some people’s rights matter less than other people’s. Frankly, the timing seems designed to make political capital from a horrendous situation, and the Government should be ashamed. This is a new low, and it is reckless, provocative and deeply damaging. The Government risk igniting the situation further by bringing back this Bill with the clause singling out Israel and the Occupied Palestinian Territories. This legislation, in effect, applies restrictions on the right to freedom of expression and debate, in a way that risks polarising views even further. At any time, let alone in this most sensitive of contexts, enshrining in law such partiality towards the conflict is beyond irresponsible.

I have tabled three amendments to the Bill: two on the ability of public bodies to make decisions about their activities on environmental grounds and one to exclude fossil fuels from the Bill’s provisions. First, on fossil fuels, there is a worrying lack of clarity from the Government about what it may or may not be permissible for public bodies to do should the Bill be enacted. My amendment 15 is intended to clear that up and protect the right of public authorities to divest from fossil fuels.

Earlier this week, Friends of the Earth published evidence that at least £12.2 billion of local government pension funds is invested in fossil fuels. The clarity that I seek to provide with my amendment is needed because fossil fuels are obviously not covered by the environmental misconduct exemption in respect of illegal activities, because obviously extraction currently happens legally. It is needed because decisions to divest could easily be brought into the scope of clause 1 because a fossil fuel company, especially in the case of state oil and gas firms, could easily meet the threshold for association with a foreign Government. Majority state-owned or controlled oil or gas firms such as Saudi Aramco, Equinor, Petrobras and Gazprom, or other companies that are highly associated with a foreign Government, would obviously be considered to be affiliated with certain countries, which would affect decisions about things like pension funds.

The ability of pension schemes in particular to divest from fossil fuels under current legislation and guidance is well established and compatible with fiduciary duty. The consideration of whether to divest often includes the discussion or consideration of individual states as examples of why divestment is desirable. Campaigners will often publicly cite examples of states where fossil fuel extraction is taking place as a reason to divest from fossil fuel assets, even if the divestment sought is much broader. This is reasonable and entirely responsible given the financial risks associated with things such as carbon bubbles and stranded assets, let alone the climate crisis more broadly, and it is currently lawful. But if the legislation is passed, such consideration runs the risk of being judged to have been influenced by the political or moral disapproval of foreign state conduct and thus bring divestment decisions within the Bill’s scope. If the Minister does not intend fossil fuel divestment to be covered by the Bill, it must be explicitly excluded, not left to run the kind of risks that I have outlined.

On environmental misconduct, some sorely lacking clarity needs to be injected into the Bill, hence my two amendments. The Bill has an exemption that is limited to environmentally harmful behaviour that

“amounts to an offence, whether under the law of a part of the United Kingdom or any other country or territory”.

Much environmentally destructive activity takes place entirely legally; indeed, that could even be the rationale for a boycott or a divestment campaign. During the passage of the Environment Act 2021, the limitations of due diligence measures that targeted only illegal deforestation were made clear—for example, because a significant proportion of deforestation due to soy or palm oil in Brazil or Indonesia respectively could take place legally, or because it would be incredibly difficult to distinguish between legal and illegal deforestation.

My amendment 8 would expand the environmental grounds on which a public body is allowed to make certain economic decisions beyond activities that are currently simply an offence. Without it, the exemption is unworkable at worst and will undermine good practice at best. Let me explain. Several pension experts who gave evidence in Committee warned that the Bill will impact on environmental, social and governance investment decisions and cut across pension schemes’ fiduciary duty. Those experts included the Northern Ireland Local Government Officers’ Superannuation Committee and the Local Government Association. It is now standard practice to consider ESG factors when looking at investments, and there is widespread concern that the environmental misconduct exemption is so weak that it does not provide the exemptions that Ministers claim it provides. In turn, this is a threat to adherence with things such as the United Nations principles for responsible investment or, indeed, the sustainable development goals. It fails to recognise that investors often consider divergence from best practice, and not simply breaches of law, and it fails to reflect the fact that in countries with, for example, opaque legal systems, the establishment of whether an offence has occurred may not be straightforward.

There is also a risk that a campaign directed at persuading public bodies to boycott or divest on environmental grounds could end up coming within the scope of the legislation. That could happen if, for example, case studies are judged to constitute the criticism or disproval of a foreign state, or if they identify where an environmentally harmful activity such as logging in the Amazon is taking place. The Government are fond of claiming that they have the very best environmental credentials, so why would they want to scupper the potential for public bodies to demand higher environmental standards—for example, in their supply chains or from their pension fund managers—with a poorly worded reference to “environmental misconduct”?

My amendment 8 would tackle that and provide for a proper exemption. My amendment 9 would extend the definition of “environmental misconduct” to include damage, regardless of whether it was legal or illegal, as well as species, habitats and the natural world. It replicates word for word the definition of “natural environment” in the Government’s own Environment Act 2021; as such, I hope that it provides the consistency and clarity that are not currently afforded by the current wording. I would be especially interested to know why Ministers did not use that wording in the first place, given that it is already in the 2021 Act, and why they are not aiming for a consistent definition of “natural environment” across different legislation.

To conclude, my amendments are designed to properly protect the exemptions that Ministers claim are in the Bill, in line with definitions in other legislation.

[Nicola Richards (West Bromwich East) (Con)]

I rise to speak in favour of the motion and to support the Bill.

The events on 7 October mean that we are debating the Bill in a different context. We are doing so against the backdrop of the murder of at least 1,400 Jewish people and the kidnapping of hundreds in Israel, as well as a 641% rise in antisemitic incidents in the UK. The Bill is not on its own a solution to antisemitism or the key to solving every problem in the middle east. However, I will explain why it will not only provide much-needed reassurance to the Jewish community here, but benefit both Israelis and Palestinians. I will set out why the BDS movement is harmful internationally and discriminatory towards Jewish communities here in the UK, and why it is vital that Israel is named in the Bill.

I am not Jewish. I grew up in Dudley, where we do not have a Jewish community—I grew up hungry to know more about history and politics—but I when I was young my father worked for an Israeli company, ISCAR. He moved around jobs as a salesman, so I remembered his work by which country the company originated from. For me, Israel was just another one of those places where he had travelled for work. ISCAR was set up by Stef Wertheimer, a German-born Jew who fled the Nazis in 1937. He started a small metal shop and tool-making company called ISCAR in 1952.

Stef believes that capitalism is better equipped than politics to solve the conflict. He believes that, if economic disparity is at the core of the tension between Arabs and Jews, he might have a solution. In 2019, it was reported that of ISCAR’s 3,500 employees, more than 1,000 are of Druze or Arab origin. In the eyes of the BDS movement, that normalisation is problematic and should be boycotted.

My right hon. and learned Friend the Member for Northampton North (Sir Michael Ellis) has already mentioned SodaStream, a successful Israeli company that exports its products across the world. It had been providing jobs to countless Israelis, as well as once employing about 900 Palestinians who relied on the company for their livelihoods. But in 2015, it was forced out of the west bank because of the BDS movement, leading to those Palestinians losing their jobs. That harms the very people the BDS movement claims to support. Ali Jafar, a shift manager from a west bank village, who worked for SodaStream for two years, summed it up when he said:

“All the people who wanted to close”

the factory

“are mistaken…They didn’t take into consideration the families.”

It is those families we should think about when voting on the Bill.

When SodaStream closed its factory in the west bank, it moved to Rahat in the Negev desert. On the final day of Ramadan, it organised the largest Iftar celebration in Israel: almost 3,000 Israelis and Palestinians came together to break bread at the factory. The BDS movement remains against SodaStream’s factory in the Negev desert because it has found new reasons for doing so. It said:

“SodaStream is still subject to boycott by the global, Palestinian-led BDS movement for Palestinian rights. Its new factory is actively complicit in Israel’s policy of displacing the indigenous Bedouin- Palestinian citizens of Israel in the Naqab (Negev). SodaStream’s mistreatment of and discrimination against Palestinian workers is not forgotten either.”

Why are the integration successes of companies such as SodaStream and ISCAR not told? Because they show normalisation; they show neighbourly relationships and peace between peoples. I have been struck by the stories of the Hamas hostages and their families. Some of them had lived in Gaza and moved when the occupation ended in 2005, but still have Palestinian friends there. We do not hear about those kinds of relationships. Extremists do not want to portray any kind of normal life, success or quality of existence, whether they are from Hamas or the BDS movement—neither promotes peaceful coexistence.

The BDS movement boasts that, in 18 years, it has done 18 years’ worth of “turning darkness into light”—that is quite some sugar-coating if you ask me, Madam Deputy Speaker. The BDS movement has an anti-normalisation charter that forbids

“the participation in any project, initiative or activity, local or international, that brings together (on the same ‘platform’) Palestinians…and Israelis…and does not meet the following two conditions: (1) The Israeli side publicly recognizes the UN-affirmed inalienable rights of the Palestinian people, which are set out in the 2005 BDS Call, and”—

this is the most important part—

“(2) the joint activity constitutes a form of co-resistance against the Israeli regime of occupation, settler-colonialism and apartheid.”

That is evidence, if it were ever needed, that the BDS movement does not want peace. BDS ignores or rejects the Jewish people’s right to self-determination and occasionally calls for the eradication of Israel, the world’s only Jewish state, so if BDS’s objective is not peace, what is it? At its core, it is antisemitic. The Anti-Defamation League has assessed that BDS’s campaigns often include allegations of Jewish power, dual loyalty, and Jewish/Israeli culpability for unrelated issues and crises.

I will now explain why this has such a negative impact on the Jewish community here in the UK. The Jewish Leadership Council has made the case that public bodies in the UK are more likely to interact with people than the Government are, and that it is therefore important they are trusted by all communities. The JLC believes that most relationships between Jewish communities and public bodies are usually positive, but that this is undermined when those bodies seek to involve themselves in international matters and support BDS movements.

The events of the past few weeks will, I hope, give many people a better understanding of why Israel is so important to the Jewish community. Having worked in the community, visited Israel a number of times and worked with holocaust survivors, I thought I understood, but for many in the Jewish community around the world, repeating that 7 October was the biggest loss of Jewish life since the holocaust brings with it unimaginable pain and a new understanding.

Israel’s very existence was borne of the need for a safe haven for Jews. The events of 7 October were never meant to happen. Hamas knew they struck at the heart of Israel and, therefore, the heart of the Jewish community. When a movement seeks to single out the world’s only Jewish state as a unique evil, it is clear why that could be regarded as antisemitic. There are no comparable campaigns about any other state on this scale—none that mobilise as many people and seek to divide and maintain division, rather than strive for peace.

If they were to have their way, supporters of BDS might claim victory; however, they cannot claim with any credibility to be supporters of a two-state solution. Boycotts harm Israel, they harm Palestinians, and they harm any prospect of peace. The Bill is not a barrier to peace: the BDS movement, and opposing the Bill, are barriers to peace. I applaud the Government for their strong stance in taking action against BDS and for bringing this Bill before the House, and I will be wholeheartedly supporting it.

[Madam Deputy Speaker (Dame Rosie Winterton)]

Order. I will now announce the results of the ballot held today for the election of the Defence Committee Chair. Four hundred and thirty-three votes were cast, three of which were invalid. There was a single round of voting with 430 valid votes. The quota to be reached was therefore 216 votes. Robert Courts was elected Chair with 249 votes. He will take up his post immediately, and I congratulate him on his election. The results of the counts under the alternative vote system will be made available as soon as possible in the Vote Office and published on the internet.

[Zarah Sultana (Coventry South) (Lab)]

I rise to speak to the amendment in my name, as well as amendment 13, tabled by my right hon. Friend the Member for Ashton-under-Lyne (Angela Rayner). Both relate to how the Bill will impact public bodies’ rights to make ethical decisions on matters relating to international law and human rights, so that is the subject I will begin with.

Gaza, the United Nations has said, has become a “hellhole”. Israeli bombs have decimated whole neighbourhoods. In six days alone, 6,000 bombs were dropped on the besieged enclave—more bombs than NATO forces dropped in an entire year of intense fighting in Afghanistan. An Israeli military spokesperson was frank about the purpose of the bombing:

“the emphasis is on damage and not on accuracy”.

Nearly 6,000 Palestinians have been killed, including nearly 2,500 children. Last night was the deadliest so far, with 700 people dead. This is happening to one of the most densely populated areas on earth, where 2.3 million people, half of whom are children, are trapped in an area no bigger than the Isle of Wight.

Even before the recent violence, Gaza had been besieged for more than a decade and a half, with access by land, air and water blockaded. Back in 2010, even Conservative Prime Minister David Cameron called it a “prison camp”, but now Israel has imposed a total siege, cutting off water, fuel, electricity and food. The UN says hospitals will run out of fuel today, and incubators with premature babies will stop working. Israel’s evacuation order demanding that 1.1 million people flee their homes was described as

“impossible…without devastating human consequences”

by the United Nations, and the World Health Organisation has called it a

“death sentence for the sick and injured”.

Indiscriminate bombing, collective punishment and forcibly displacing people are “clear violations” of international law—not according to me, but according to the United Nations Secretary-General. This is in no way downplaying or denying Hamas’s appalling attacks on Israeli citizens, which I absolutely condemn, and I again echo the call for the release of hostages. Just as I and no Member here can imagine the fear and anguish of families who have seen loved ones taken hostage, I cannot imagine the terror of Palestinian families facing constant Israeli bombardment. On this question, the United Nations Secretary-General said yesterday: “International law is clear”. Yet in this House, people do not want to accept that. Hamas’s crimes in no way excuse what we have seen since.

That is relevant to this debate because these clear violations of international law have been given the green light by political leaders here in the UK and beyond, even with an Israeli defence official promising to turn Gaza into a “city of tents”. The Prime Minister has still refused to acknowledge these clear violations of international law and, unlike a growing number of his counterparts across the world, he is still refusing to call for an immediate ceasefire. That is utterly shameful, and it goes to the heart of the problem with this Bill and the need for these amendments.

Israel’s brutal war on Gaza is not an isolated example. For example, the Saudi-led war on Yemen, which I have spoken about repeatedly in this House, has claimed the lives of more than 150,000 people. It has included war crimes such as the Saudi bombing of a school bus, which killed more than 40 children and a dozen adults. That war has also been waged with the British Government’s support, including considerable military equipment and assistance.

Let us find some historical examples. Perhaps the most notable is the Government’s support for the apartheid South African regime, which people should be absolutely ashamed of and embarrassed about. The then Prime Minister, Margaret Thatcher, called the African National Congress and Nelson Mandela “terrorists”, and Young Conservatives proudly wore badges calling for him to be hanged. In each of these cases—whether it is Israel’s war on Gaza, the Saudi war on Yemen or apartheid South Africa—violations of international law and gross injustices have been committed with the support and complicity of the British Government.

If the Bill is passed unamended, on these matters and more, public bodies such as local councils and universities will not be able to make ethical procurement or investment decisions. Local democracy will be sidelined, and they will be forced to ignore questions of human rights and international law. The case of South Africa shows most clearly why that would be such a mistake.

--- Later in debate ---

[Michael Gove]

My hon. Friend is absolutely right and I thank him for his thoughtful contribution.

I recognise the sincerity and commitment of my opposite number, the right hon. Member for Ashton-under-Lyne (Angela Rayner). Both she and her predecessor, the hon. Member for Wigan (Lisa Nandy), have been brave and forthright in calling out antisemitism wherever it occurs. I thank her for her work and the conversations we have had formally and informally on this issue. It is for that reason that I say, with respect, that I disagree. I understand the intent of the proposal from Labour’s Front-Bench team, but I disagree, because—as they acknowledge in their own amendment for ensuring that people cannot adopt, through an ambiguous form of words, a means of preventing people from accessing kosher or halal food—there is the potential, as lawyers have been clear, for an ambiguous form of words to be used in order, without mentioning Israel by name, to make it clear that a boycott campaign is directed against Israel. I think we all have a duty to be clear about that.

The BDS movement is clear in what it upholds: an evil campaign not just to eliminate the state of Israel but to target Palestinians who work with Israeli institutions. It has been crystal clear in recent weeks in its total failure—not just a failure, but a conscious desire not to express a shred of sympathy or regret for the loss of innocent lives. It is clear about what it wants to do to sow division. It is clear that its actions lead to, and have always led to, an increase in antisemitic attacks.

Those who speak for the Jewish community in this country have been clear as well. They respect the diversity and plurality of opinions in this House. They respect the motives, they respect the feelings, they respect the strong emotions that these issues engage. But they have also been clear that they wish this legislation to pass, they wish it to pass unamended, and they wish it to pass now. I honour them in their suffering, and it is for that reason that I urge the House to reject the amendments and to pass the Bill.

[Madam Deputy Speaker (Dame Rosie Winterton)]

Does Chris Stephens wish to press new clause 1 to a Division?

[Chris Stephens]

No, Madam Deputy Speaker. I beg to ask leave to withdraw the clause.

Clause, by leave, withdrawn.

Clause 3

Exceptions

Amendment proposed: 14, page 2, line 17, leave out subsections (2) and (3).—(Angela Rayner.)

This amendment would remove provisions allowing Ministers to amend the Schedule, via regulations, to add a description of decision or consideration, or amend or remove considerations added under previous regulations.

Question put, That the amendment be made.