Levelling-up and Regeneration Bill

Baroness Winterton of Doncaster Excerpts

Consideration of Lords amendments
Tuesday 17th October 2023 Commons Chamber

Consideration of Lords amendments

[Madam Deputy Speaker (Dame Rosie Winterton)]

I must draw the House’s attention to the fact that financial privilege is engaged by Lords amendments 46, 73 to 75, 78, 82, 231, 241, 249, 301 to 327 and 349 to 367. If any of these Lords amendments are agreed to, I will cause the customary entry waiving Commons financial privilege to be entered in the Journal.

Clause 148

Guidance

[The Minister of State, Department for Levelling Up, Housing and Communities (Rachel Maclean)]

I beg to move amendment (a) to Lords amendment 117.

[Madam Deputy Speaker]

With this it will be convenient to consider:

Government amendments (b) to (d) to Lords amendment 117.

Lords amendment 231, and Government amendment (a).

Lords amendment 237, and Government amendments (a) and (b).

Lords amendment 369, and Government amendments (a), (c), (b) and (d).

Lords amendment 1, and Government motion to disagree.

Lords amendments 2 and 4, Government motions to disagree, and Government amendments (a) and (b) in lieu.

Lords amendment 3, and Government motion to disagree.

Lords amendment 6, Government motion to disagree, and Government amendments (a) to (d) in lieu.

Lords amendment 10, Government motion to disagree, and Government amendments (a) and (b) in lieu.

Lords amendment 13, and Government motion to disagree.

Lords amendment 14, Government motion to disagree, and Government amendments (a) to (p) in lieu.

Lords amendment 18, Government motion to disagree, and Government amendments (a) and (b) in lieu.

Lords amendment 22, and Government motion to disagree.

Lords amendments 30 and 31, Government motions to disagree, and Government amendments (a) to (d) in lieu.

Lords amendment 44, Government motion to disagree, and Government amendments (a) and (b) in lieu.

Lords amendment 45, and Government motion to disagree.

Lords amendment 46, and Government motion to disagree.

Lords amendment 80, and Government motion to disagree.

Lords amendment 81, Government motion to disagree, and Government amendments (a) to (c) in lieu.

Lords amendment 82, and Government motion to disagree.

Lords amendment 90, Government motion to disagree, and Government amendment (a) in lieu.

Lords amendments 102 and 103, Government motions to disagree, and Government amendments (a) to (d) in lieu.

Lords amendment 133, and Government motion to disagree.

Lords amendment 134, and Government motion to disagree.

Lords amendment 137, and Government motion to disagree.

Lords amendment 139, and Government motion to disagree.

Lords amendment 142, and Government motion to disagree.

Lords amendment 156, and Government motion to disagree.

Lords amendment 157, and Government motion to disagree.

Lords amendment 172, and Government motion to disagree.

Lords amendment 180, and Government motion to disagree.

Lords amendment 199, and Government motion to disagree.

Lords amendment 239, Government motion to disagree, and Government amendments (a) to (c) in lieu.

Lords amendment 240, Government motion to disagree, and Government amendments (a) to (c) in lieu.

Lords amendment 241, and Government motion to disagree.

Lords amendments 242, 243 and 288, Government motions to disagree, and Government amendments (a) to (d) in lieu.

Lords amendment 244, and Government motion to disagree.

Lords amendment 249, and Government motion to disagree.

Lords amendment 273, Government motion to disagree, and Government amendment (a) in lieu.

Lords amendment 280, and Government motion to disagree.

Lords amendment 285, Government motion to disagree, and Government amendment (a) in lieu.

Lords amendment 327, and Government motion to disagree.

Lords amendment 329, Government motion to disagree, and Government amendments (a) and (b) in lieu.

Lords amendments 5, 7 to 9, 11, 12, 15 to 17, 19 to 21, 23 to 29, 32 to 43, 47 to 79, 83 to 89, 91 to 101, 104 to 116, 118 to 132, 135, 136, 138, 140, 141, 143 to 155, 158 to 171, 173 to 179, 181 to 198, 200 to 230, 232 to 236, 238, 245 to 248, 250 to 272, 274 to 279, 281 to 284, 286, 287, 289 to 326, 328, 330 to 368 and 370 to 418.

[Rachel Maclean]

The Levelling-up and Regeneration Bill has had a lengthy passage. I take this opportunity to pay tribute to all my predecessors in my role and to colleagues across the Department who have shepherded the Bill to its position.

The Bill reflects the huge importance of levelling up for the future of the country. For decades, successive Governments have failed to address the inequality of opportunity in our country. Economic growth has for too long been concentrated in a select few areas. The Bill will ensure that this Government and future Governments set clear, long-term objectives for addressing entrenched geographic disparities.

The Bill will expand and deepen devolution across England. It will devolve powers to all areas in England where there is demand for it, allowing local leaders to regenerate their towns and cities and restore pride in places by creating a new institutional model more suitable for devolution to whole-county areas outside city regions that have more than one council: the combined county authority.

--- Later in debate ---

[Dehenna Davison]

As someone proud to represent a predominantly rural community, does my hon. Friend agree that one of the best ways to level up in rural areas is by ensuring that those areas get strong devolution deals with strong local leadership?

[Madam Deputy Speaker (Dame Rosie Winterton)]

Order. Just a little reminder that if Members intervene on a speaker, it is customary to stay until the end of their speech.

[Rachel Maclean]

I want to reiterate my thanks to my former colleague, my hon. Friend the Member for Bishop Auckland (Dehenna Davison), who did so much to shepherd the Bill to its current position. I completely agree with her. The best way to ensure levelling up across the country is by voting Conservative, because we have done more than any other Government to spread opportunity around the country.

To avoid anything that would duplicate the work I just mentioned, we have tabled an amendment that will require the Government to have regard to the needs of rural communities in preparing the statement of levelling-up missions. That is consistent with the approach we have taken in other areas, including with respect to the devolved Administrations.

We have heard the concerns highlighted through Lords amendment 199 on access to banking facilities for communities, and we share those concerns. Branch closures are commercial decisions for banks, and we do not believe that a blanket requirement on local authorities to produce strategies to inhibit that would be effective or proportionate. Instead, the Treasury will continue to support the roll-out of alternative services, such as banking hubs, which will ensure that communities across the country have access to the facilities they need.

--- Later in debate ---

[Rachel Maclean]

No, I will not give way. The hon. Lady can speak later.

This policy has been described by the Lib Dems’ own former leader—

[Madam Deputy Speaker (Dame Rosie Winterton)]

Order. Just a little reminder that we are on Lords amendments. I am sure the Minister will be referring her remarks back to the relevant ones.

[Rachel Maclean]

Thank you, Madam Deputy Speaker. We did discuss the matter of housing targets in the Lords debate.

The Lib Dems’ policy to have 380,000 houses a year—that is certainly this week’s policy—has been described by their own former leader as Thatcherite. So anyone contemplating voting Liberal Democrat needs to know what this means. I am afraid that they can no longer sustain a position of objecting to every single house being built in their area, or avoid making local plans to give communities a proper say over housing and the green belt. As we have seen with so many Liberal Democrat local authorities, they have kicked the can down the road and failed their residents.

I shall finish by expressing my gratitude to all my colleagues, both here and in the other place, for their continued and dedicated engagement with this complicated and complex Bill during its passage. We have listened carefully to the views of Members on both sides of the House, stakeholders and members of the public. The amendments we have made to the Bill as it has progressed to the Lords have further enhanced it and I commend it to the House.

[Madam Deputy Speaker (Dame Rosie Winterton)]

I call shadow Minister.

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

Well, what can one say about that last 20 minutes, apart from that it must have felt far more persuasive when the Minister practised it in the mirror this morning, but I do congratulate her on the birth of her grandson.

I will start by thanking their lordships for the extensive and forensic scrutiny to which they have subjected this complex and demanding piece of legislation. I put on record the appreciation felt on these Benches for the tireless work of our noble Friends, Baroness Hayman of Ullock and Lady Taylor of Stevenage, ably assisted as ever by Ben Wood and the whole Labour Lords team.

This Bill has been with us for some time now. First published in May 2022, it has progressed slowly against the backdrop of significant political and economic turbulence, the responsibility for which lies squarely with the Conservatives. It has survived an unprecedented degree of ministerial churn: three Prime Ministers; four Secretaries of State, albeit one a retread; four Housing and Planning Ministers; and four Levelling Up Ministers. With so many minds on the Government Benches having grappled thoughtfully with the implications of each of the Bill’s many provisions, one might have hoped that it would have been significantly improved and that its worst features would have been substantially mitigated, if not removed altogether. Sadly, despite the addition of scores of new clauses and a large number of new schedules to the extensive number it already contained, the Bill remains not only eclectic but deeply muddled. It is a rag-tag mix of measures—some sensible, but many more ill-considered or downright damaging—that attempt but fail to render coherent a Tory levelling up, devolution and planning agenda that is anything but.

In the eight months that the Bill was considered in the other place, the Government were forced to give way on a variety of fronts. I am glad that, in a range of areas, the arguments that my hon. Friend the Member for Nottingham North (Alex Norris) and I made in Committee last year have been partially accepted.

However, although the Government’s concessions have rendered the Bill slightly more palatable, they have not resolved the fact that it still contains a range of measures, from the new infrastructure levy to community land auction arrangements, that are riven with flaws. We regret the fact that Ministers did not reconsider their inclusion entirely. It will now fall to a future Labour Government to halt, review or rescind each of them.

We do not have an opportunity today to attempt, again, to address many of the more problematic parts of the Bill but, as a result of the prodigious efforts of noble Lords in the other place, we have a chance to make a number of important changes that would modestly improve the Bill and, in so doing, enhance outcomes for local communities across the country. It is with that objective in mind that I turn to a selection of the unusually large number of amendments that the other place has sent to us for consideration.

Lords amendments 1 and 10 relate to the levelling-up mission set out in part 1 of the Bill and the distinct, but related, third round of the levelling-up fund. They seek respectively to ensure that the missions and the fund application process are properly integrated and that round 3 of the fund takes place not only in a timely manner but on the basis of a reformed application process. We support both.

The Opposition’s views on the Government’s levelling-up missions are well known, but, if we are to give statutory force to a statement setting such missions for a period of no less than five years, it is right not only that it comes into effect soon after the Bill receives Royal Assent but that it is accompanied by a statement detailing the application process for round 3 of the levelling-up fund, including transparent criteria so that the two can be fully aligned.

Similarly, our criticisms of the levelling-up funding process are a matter of public record, but, if the fund is to be the primary means of delivering priority local infrastructure projects for the foreseeable future, it is right that steps are taken prior to the opening of round 3 to simplify the application process and to reduce the onerous requirements and resources it presently involves.

We recognise that, by tabling an amendment in lieu of Lords amendment 10, the Government have sought to enshrine in the Bill an assurance in respect of round 3 of the levelling-up fund. However, not only is the content of the proposed statement left completely undefined, but the proposed amendment in lieu fails to achieve one of the central objectives sought by their noble Lords, namely that such a statement be published within the same timescale as a statement on the levelling-up missions so that the two processes, which are clearly connected, fully complement each other. For those reasons, we cannot support the Government amendment in lieu and we will support Lords amendment 10, along with Lords amendment 1.

The question of whether the Government’s proposed levelling-up missions are comprehensive enough to reduce inequalities between and within regions has arisen since the White Paper was first published in February 2022. Lords amendments 2 and 4 seek to augment the 12 missions set out in that document by requiring the addition of separate missions relating to child poverty and health disparities. We welcome the Government’s acceptance that addressing the impact of economic and social disparities warrants a greater focus in respect of levelling-up missions and that they have tabled amendments in lieu of Lords amendments 2 and 4 to that end. However, in our view, the requirement that Ministers “must have regard” to these disparities in the preparation and review of all the missions falls some way short of the implications that establishing dedicated new missions on child poverty and health disparities would have for life chances across the country. For that reason, we cannot support the Government amendment in lieu and will support Lords amendments 2 and 4.

We also support Lords amendment 22. We remain firmly of the view that there are circumstances in which virtual or hybrid meetings are necessary or useful, and that their use could help to reduce barriers to public engagement, particularly in relation to the planning process. As we argued in Committee last year, a number of organisations, including the Planning Inspectorate, already enjoy the freedom to offer such meetings as they deem necessary, and there is widespread support for putting local authority remote meeting arrangements on a permanent footing, including from the Local Government Association, Lawyers in Local Government and the Association of Democratic Services Officers. The Government have offered no compelling reason why this amendment should not be incorporated into the Bill, and we therefore urge the House to support it.

As the Minister will know, the establishment of a new tier of national planning policy in the form of national development management policies, and their precise relationship and standing in respect of local development plans, has been a point of contention throughout the Bill’s passage. The Opposition feel strongly that it cannot be right that national policies that will have a far greater impact on local communities than any existing national policy statement and that have significant implications for the status and remit of local planning can be developed without an obligatory and defined public consultation and parliamentary approval process. Lords amendment 44 stipulates such a process, including minimum public consultation requirements and a mechanism for facilitating parliamentary scrutiny based on that which currently applies to designating a national policy statement.

--- Later in debate ---

[Matthew Pennycook]

I thank my hon. Friend for her intervention, and I thank her again, as I did at the time, for the many months of work that she did on the Bill Committee. She is right to raise the point about healthy homes; we fully support the principles of that campaign. We disagree with the Government’s suggestion that the issue is already well addressed, and I gently encourage the Minister to continue the conversations that I believe the Government are having with Lord Crisp and the other proposers of that amendment in the other place.

To conclude, while we welcome a small number of the concessions that the Government have felt able to make to the Bill, we believe that most do not go far enough. This unwieldy and confused piece of legislation is flawed on many levels. We have an opportunity today to make modest but important improvements to it. On that basis, we urge the House to support the many reasonable amendments that the other place has sent to us.

[Madam Deputy Speaker (Dame Rosie Winterton)]

I call the Father of the House.

--- Later in debate ---

[Sir Peter Bottomley]

The hon. Lady reminds me that I meant to say that when Dr Christopher Addison became the first Minister for Health in 1919, the first action he took was to help build social housing on a scale that would allow people’s health to be improved by living in far better environments, inside and outside their homes.

Yesterday, in levelling-up questions, the Secretary of State very kindly spoke clearly about the approach to the development at Lansdowne Nursery, on the A259 in my constituency, and the threat to Chatsmore Farm, in what is known locally as the Goring gap.

It is important that the words that the Secretary of State spoke yesterday should be passed on to planning inspectors, including the one in Arundel today, who is considering the appeal against the properly justified refusal of planning permission to put homes on the Lansdowne Nursery site.

I invite Ministers from the Department for Levelling Up, Housing and Communities to come to my constituency—and to the constituents of my hon. Friend the Member for Arundel and South Downs (Andrew Griffith) and my right hon. Friend the Member for Bognor Regis and Littlehampton (Nick Gibb)—to see how every bit of grass is under threat from opportunist developers.

Those developers have rightly been turned down by local authorities—boroughs and districts. They should be supported by planning inspectors, not at risk of what I would call “a rogue decision” by someone from Bristol.

Turning to amendment 22, after clause 70, the Government are wrong to ban parish councils from meeting remotely if they want to. Some parish councils cover a large area and many elderly people kindly serve on them. If they want to have a valid meeting, why can they not tune in, if they are ill, remote or for some other reason? It seems to me to be totally unnecessary for central Government to say to local councils, especially parish councils, “You cannot do that.” I hope that the Government will think again, if not in this Bill then in another one. Let people have autonomy and a degree of sovereignty. If their powers are limited, then how they use them should be up to them, in my view.

In amendments 242 and 243, Lord Young of Cookham has helped qualifying and non-qualifying residential leaseholders. I accept that the Government proposals are limited to residential leaseholders and do not cover commercial leaseholders.

What the House should not accept, and where the Government should think again, is why there has to be a distinction between qualifying and non-qualifying leaseholders. Many non-qualifying leaseholders have homes on which they cannot get a mortgage or sell, and on which they cannot avoid paying high annual costs, as well as remediation costs.

I repeat the question put by the Opposition spokesperson, the hon. Member for Greenwich and Woolwich, about what happens to people who have paid but who will now not qualify. Will the Minister give clear advice when she winds up, or in a later statement, on what happens to leaseholders facing claims for payment that they think they should not have to pay? Can people get out of this dilemma, which is caused by too many people in Government not understanding the legal status of residential leaseholders?

I do not believe that Dame Judith Hackitt understood it when she put forward her fire safety proposals, and I do not think the Government understood in the early days. Now that they do understand, will they please remove the distinction? The idea that if people live in homes below 11 metres they are not facing an un-mortgageable and unsellable home is wrong. Many people who have leasehold homes under that level are frankly in a dilemma that Government ought to be able to resolve.

I could go on for longer, but many other Members wish to speak. I congratulate those who have helped to improve the Bill. There are many elements that I support—the Government can take that for granted—but on issues where they are allowing injustice or ineffective approaches to continue, let us change that.

Let us be on the side of the 5 million to 6 million residential leaseholders whom we have ignored for too long, whose situation has been understood poorly. Now that it is understood better, we ought to allow them to have better, healthier, happier and more financially secure lives.

[Madam Deputy Speaker (Dame Rosie Winterton)]

I call the SNP spokesperson.

[Ms Anum Qaisar (Airdrie and Shotts) (SNP)]

This is my first scrutiny of Lords amendments as the SNP’s levelling-up spokesperson, so I would like to start by thanking my hon. Friends the Members for North Ayrshire and Arran (Patricia Gibson) and for Glasgow South West (Chris Stephens) for their work scrutinising the Bill so far.

The hon. Member for Somerton and Frome (Sarah Dyke) is making her maiden speech today—I made mine just two years ago. With your indulgence, Madam Deputy Speaker, if I were to give her any advice, it would be this: watch out for the grey hairs—you will get lots of them. Work in a collegiate manner—the public think that we in this place all hate each other, but we really do not. And wear trainers where possible.

I felt a tad left out earlier, because when the Minister went on her bizarre monologue about Labour and the Liberal Democrats, she left out the SNP. Does that reflect the fact that she does not think Scotland matters? That remains to be seen. The intention behind the Bill—to help areas across the four nations—is admirable. However, as per usual with this Tory Government, their aim is commendable but their journey towards that aim is terrible. The Bill is muddled, confused and not fit for purpose.

The Tory track record on levelling up is weak at best and politically motivated cronyism at worst. On the SNP Benches, we have been clear from the start that the Bill is simply not good enough. But, because of the approach that the Government have adopted, it is now doomed to fail, arguably like most of their policies. It pushes funding, which is so desperately needed in struggling areas across the four nations, to be allocated to boost support in politically beneficial regions.

Take Scotland, for example. The second round of levelling-up funding in January 2023 saw only £177 million distributed to a nation that was promised very much more. In Scotland we are continually told that we are in a Union of equals, yet that figure is only 8.4% of the possible £2.1 billion, meaning many local authorities, including North Lanarkshire in my Airdrie and Shotts constituency, have been left behind and forgotten by this Government. The Conservative Government cannot be trusted to level up Scotland. They have neither the will nor the desire to do so.

Voter Identification Scheme

Baroness Winterton of Doncaster Excerpts

Thursday 14th September 2023 Commons Chamber

[Rachel Maclean]

My hon. Friend is totally right. The suggestion from the Opposition parties is that we should just wait and see whether something bad happens, and then take action. That is the wrong way to go about safeguarding our democracy, which we should all be proud of. He makes the extremely valid point that it is impossible to detect impersonation. When it has been detected, such as in Tower Hamlets and Birmingham—the Opposition do not like me mentioning it—people have been taken to court and found guilty of these offences. He is also right to raise the issue of postal and proxy voting, and he will know that we are commencing provisions to safeguard some of those processes, which is the right thing to do.

[Madam Deputy Speaker (Dame Rosie Winterton)]

I call the SNP spokesperson.

[Patrick Grady (Glasgow North) (SNP)]

The incredibly hard-working team at the Electoral Commission are far too polite to say, “We told you so,” but that would be a pretty easy way to sum up most of what is in this report. Practically every concern about the introduction of photo ID that was raised during the passage of the Elections Bill has been borne out in the by-elections and local elections that have taken place since it became law.

The Government say that they want to increase democratic participation and not suppress turnout among minority and disadvantaged communities, but the evidence suggests that that is exactly what is happening—fewer votes from sections of society that it just so happens are less likely to vote Tory. What steps will the Government take in advance of the general election to remove barriers to voting established by the Elections Act 2022? Will they expand the list of acceptable ID? Will they make sure that, as the Father of the House suggests, people can vote on polling day through attestation? Will they make sure that the Electoral Commission and local authorities are properly resourced to fulfil their functions? They already have to deal with boundary changes and polling district redraws, and now they have to deal with the Elections Act. Will the Government look to Scotland as well, where with votes for 16 and 17-year-olds, refugees and EU citizens, we are seeking to expand, not restrict, the franchise?

Nutrient Neutrality: Levelling-up and Regeneration Bill

Baroness Winterton of Doncaster Excerpts

Tuesday 5th September 2023 Commons Chamber

[Rachel Maclean]

The Welsh Labour Government have a shocking record on house building, as they have on many issues. What is more, they are not tackling the issue at source, which is why we are bringing forward our catchment plans and our protected site strategies. A lot of the rivers that are draining from Wales are impacting negatively on constituencies in England. The only thing I agree with in the hon. Lady’s rather stilted comments is that this is not an either/or. If she had listened to what I was saying, she would know that we are doing both. We are protecting the environment, protecting our rivers and bringing forward housing.

[Madam Deputy Speaker (Dame Rosie Winterton)]

I thank the Minister for answering the urgent question.

Building Safety and Social Housing

Baroness Winterton of Doncaster Excerpts

Thursday 6th July 2023 Commons Chamber

[Madam Deputy Speaker (Dame Rosie Winterton)]

Order. It is important to address the Minister not directly, but through me.

[Michael Gove]

The hon. Lady is absolutely right. Issues of damp and mould are not a consequence of lifestyle. In fact, when that allegation is made, there is sometimes behind it an unhappy and prejudiced attitude towards some communities and some individuals. We need to call that out, and the housing ombudsman has been clear.

I should also say that I do not believe that I should take credit for these steps; it is about this House and everyone here who has worked together with people outside this House, including Grenfell United, Awaab Ishak’s family, campaigning journalists such as Daniel Hewitt and Vicky Spratt and, above all, the campaigner Kwajo Tweneboa. I think he has done far more than any Minister has to ensure that we get the message on social housing.

The final thing that I want to cover are the particular needs of the community itself. The Grenfell tragedy encapsulated what had gone wrong with our building safety system and what had gone wrong with the way we treat people in social housing. But there are real needs that the community continues to feel. I want to reaffirm the commitment made by my right hon. Friend the Member for Maidenhead (Mrs May), the former Prime Minister, in the terrible aftermath of the fire. She said that the Government would be there in that community long after the cameras stopped rolling. She has taken a close personal interest in ensuring that we continue to support the community. Baroness Scott and I will continue to work with other arms of Government, the Royal Borough of Kensington and Chelsea, the NHS, and the independent Grenfell Tower Memorial Commission to ensure that the community has the ongoing support that it needs through the conclusion of the inquiry and beyond.

The tragedy at Grenfell Tower was one of the worst civilian tragedies in our history, and the bereaved survivors and immediate community will never forget, nor should they, and nor should we. We seek in this debate and in the work of Government and Parliament not only to honour the memory of those who died, but to build a legacy in their name: safer and greener homes, better social housing, and a lasting commitment to those affected by these terrible events. This Government, this House and, indeed, our whole country have a responsibility and a stake in the future of Grenfell and the community. Across this House, we have pledged to remember the lives lost and to seek truth in their names, and we will honour them by the legacy they inspire.

[Madam Deputy Speaker (Dame Rosie Winterton)]

I call the shadow Minister, Matthew Pennycook.

--- Later in debate ---

[Matthew Pennycook]

ACM should not be on any building in England six years after the fire, and it is shameful that it is, but my hon. Friend is right. The Government should use their authority and the experience they have gleaned over the past six years to make the case worldwide, because this material should not be on any building. It is dangerous, and it should never have been put up in the first place.

While all trapped leaseholders are feeling the strain, in relative terms some are better off than others, because the Government made the political choice to provide some with legal protection from the costs of historic non-cladding defects, while leaving others exposed to bills that will not only lead to financial ruin in many instances, but will have a material impact on the progress of remediation in buildings where such non-qualifying leaseholders are large in number. Even at this late stage, I urge the Secretary of State to reconsider the arbitrary division of blameless leaseholders into those who qualify for protection under the law and those who do not, as well as beseeching him to ensure that the Government finally grip and drive from the centre an accelerated programme of remediation across the country.

To conclude, six years on from the horror of Grenfell, things have changed, but they have not changed anywhere near enough. If we are to ensure that everyone has a secure, decent, affordable and safe home in which to live, far more still needs to be done, and done quickly. If it is not, we will be back here again next year, marking the seventh anniversary of the fire, still bemoaning the fact that too many social tenants are being let down and too many buildings are not being made safe, with the lives of too many blameless leaseholders destroyed. We owe it to the survivors, the bereaved, the wider Grenfell community and the legacy they want to see established to ensure that that is not the case.

[Madam Deputy Speaker (Dame Rosie Winterton)]

I call the SNP spokesperson.

Economic Activity of Public Bodies (Overseas Matters) Bill

Baroness Winterton of Doncaster Excerpts

2nd reading
Monday 3rd July 2023 Commons Chamber

[Several hon. Members rose—]

[Madam Deputy Speaker (Dame Rosie Winterton)]

A large number of right hon. and hon. are trying to catch my eye. If we are to get everyone in, my guidance is that speeches should be limited to about six minutes.

--- Later in debate ---

[Several hon. Members rose—]

[Madam Deputy Speaker (Dame Rosie Winterton)]

Order. I remind colleagues that I said six minutes, as opposed to 10. If colleagues could stick to that, that would be helpful.

Holocaust Memorial Bill: Committal

Baroness Winterton of Doncaster Excerpts

Committal (to a Select Committee)
Wednesday 28th June 2023 Commons Chamber

[Madam Deputy Speaker (Dame Rosie Winterton)]

The four motions on the Holocaust Memorial Bill will be debated together. Amendments (a) and (b) tabled to motion 6 have been selected. I will invite Sir Peter Bottomley to move the selected amendments at the end of the debate as we dispose of each motion in turn. The debate that now takes place may range over all four motions.

--- Later in debate ---

[Madam Deputy Speaker]

With this, we shall discuss the following:

Motion 6—Holocaust Memorial Bill: Instruction—

That it be an instruction to the Select Committee to which the Holocaust Memorial Bill is committed to deal with the Bill as follows:

(1) That the Committee treats the principle of the Bill, as determined by the House on the Bill’s Second Reading, as comprising the matters mentioned in paragraph 2; and those matters shall accordingly not be at issue during proceedings of the Committee.

(2) The matters referred to in paragraph (1) are—

(a) the Secretary of State may incur expenditure for or in connection with (i) a memorial commemorating the victims of the Holocaust, and (ii) a centre for learning relating to the memorial; and

(b) section 8(1) and (8) of the London County Council (Improvements) Act 1900 are not to prevent, restrict or otherwise affect the construction, use, operation, maintenance or improvement of such a memorial and centre for learning at Victoria Tower Gardens in the City of Westminster.

(3) Given paragraph (2) and as the Bill does not remove the need for planning permission and all other necessary consents being obtained in the usual way for the construction, use, operation, maintenance and improvement of the memorial and centre for learning, the Committee shall not hear any petition against the Bill to the extent that the petition relates to—

(a) the question of whether or not there should be a memorial commemorating the victims of the Holocaust or a centre for learning relating to the memorial, whether at Victoria Tower Gardens or elsewhere; or

(b) whether or not planning permission and all other necessary consents should be given for the memorial and centre for learning, or the terms and conditions on which they should be given.

(4) The Committee shall have power to consider any amendments proposed by the member in charge of the Bill which, if the Bill were a private bill, could not be made except upon petition for additional provision.

(5) Paragraph (4) applies only so far as the amendments proposed by the member in charge of the Bill fall within the principle of the Bill as provided for by paragraphs (1) and (2) above.

That these Orders be Standing Orders of the House.

Amendment (a) to motion 6, in paragraph (2)(a), leave out from “memorial” to the end of paragraph (2)(b).

Amendment (b), to motion 6, leave out paragraph (3).

Motion 7—Holocaust Memorial Bill: Carry-over—

That the following provisions shall apply in respect of the Holocaust Memorial Bill:

Suspension at end of current Session

(1) Further proceedings on the Bill shall be suspended from the day on which this Session of Parliament ends (“the current Session”) until the next Session of Parliament (“Session 2023–24”).

(2) If a Bill is presented in Session 2023–24 in the same terms as those in which the Bill stood when proceedings on it were suspended in the current Session—

(a) the Bill so presented shall be ordered to be printed and shall be deemed to have been read the first and second time;

(b) the Standing Orders and practice of the House applicable to the Bill, so far as complied with or dispensed with in the current Session, shall be deemed to have been complied with or (as the case may be) dispensed with in Session 2023–24;

(c) the Bill shall be dealt with in accordance with—

(i) paragraph 3, if proceedings in Select Committee were not completed when proceedings on the Bill were suspended,

(ii) paragraph 4, if proceedings in Public Bill Committee were begun but not completed when proceedings on the Bill were suspended,

(iii) paragraph 5, if the Bill was waiting to be considered when proceedings on it were suspended,

(iv) paragraph 6, if the Bill was waiting for third reading when proceedings on it were suspended, or

(v) paragraph 7, if the Bill has been read the third time and sent to the House of Lords.

(3) If this paragraph applies—

(a) the Bill shall stand committed to a Select Committee of such Members as were members of the Committee when proceedings on the Bill were suspended in the current Session;

(b) any instruction of the House to the Committee in the current Session shall be an instruction to the Committee on the Bill in Session 2023–24;

(c) all petitions submitted in the current Session which stand referred to the Committee and which have not been withdrawn, and any petition submitted between the day on which the current Session ends and the day on which proceedings on the Bill are resumed in Session 2023–24 in accordance with this Order, shall stand referred to the Committee in Session 2023–24;

(d) any minutes of evidence taken and any papers laid before the Committee in the current Session shall stand referred to the Committee in Session 2023–24;

(e) only those petitions mentioned in sub-paragraph (c), and any petition which may be submitted to the Private Bill Office and in which the petitioners complain of any amendment proposed by the member in charge of the Bill which, if the Bill were a private bill, could not be made except upon petition for additional provision or of any matter which has arisen during the progress of the Bill before the Committee in Session 2023–24, shall stand referred to the Committee;

(f) any petitioners whose petitions stand referred to the Committee in Session 2023–24 shall, subject to the rules and orders of the House, and to the prayer of that person’s petition, be entitled to be heard in person or through counsel or agents upon that person’s petition provided that it is prepared and signed in conformity with the rules and orders of the House, and the member in charge of the Bill shall be entitled to be heard through counsel or agents in favour of the Bill against that petition;

(g) the Committee shall require any hearing in relation to a petition mentioned in sub-paragraph (f) above to take place in person, unless exceptional circumstances apply;

(h) in applying the rules of the House in relation to parliamentary agents, any reference to a petitioner in person shall be treated as including a reference to a duly authorised member or officer of an organisation, group or body;

(i) the Committee shall have power to sit notwithstanding any adjournment of the House and to report from day to day minutes of evidence taken before it;

(j) three shall be the quorum of the Committee.

(4) If this paragraph applies, the Bill shall be deemed to have been reported from the Select Committee and to have been re-committed to a Public Bill Committee.

(5) If this paragraph applies—

(a) the Bill shall be deemed to have been reported from the Select Committee and from the Public Bill Committee, and

(b) the Bill shall be set down as an order of the day for consideration.

(6)If this paragraph applies—

(a) the Bill shall be deemed to have been reported from the Select Committee and from the Public Bill Committee and to have been considered, and

(b) the Bill shall be set down as an order of the day for third reading.

(7) If this paragraph applies, the Bill shall be deemed to have passed through all its stages in this House.

Other

(8) In paragraph (3) above, references to the submission of a petition are to its submission electronically, by post or in person.

That these Orders be Standing Orders of the House.

Motion 8—Positions for which additional salaries are payable for the purposes of section 4A(2) of the Parliamentary Standards Act 2009—

That the Order of the House of 19 March 2013 (Positions for which additional salaries are payable for the purposes of section 4A(2) of the Parliamentary Standards Act 2009) be amended, in paragraph (1)(a), by inserting, in the appropriate place, “the Select Committee on the Holocaust Memorial Bill”.

[Felicity Buchan]

The instruction motion, tabled in the name of the Secretary of State, sets out the matters that can properly be considered by the Select Committee when it hears petitions against the Bill. It is a custom of the House, and a well-established part of the process for hybrid Bills, that the Select Committee should not hear petitions that seek to challenge the principle of the Bill. The Second Reading debate that just concluded was the opportunity for this House to consider the principle of the Bill, and I am delighted that this House has given such support to the Bill.

It is familiar practice on hybrid Bills, for example with the current and recent High Speed 2 Bills, that the House should pass a motion giving instructions to the Select Committee on what precisely falls within the principle of the Bill. Such a motion helps to provide clarity for the Committee and, of course, for potential petitioners, so that no time should be wasted seeking to raise matters on the Bill’s principle, on which the House has already expressed such a clear view.

In this case, the motion specifies that

“the Committee shall not hear any petition against the Bill to the extent that the petition relates to—

(a) the question of whether or not there should be a memorial commemorating the victims of the Holocaust or a centre for learning relating to the memorial, whether at Victoria Tower Gardens or elsewhere; or

(b) whether or not planning permission and all other necessary consents should be given for the memorial and centre for learning, or the terms and conditions on which they should be given.”

If the House agrees to pass the motion, the Select Committee would still have a good deal of scope to consider matters relating to clause 2 of the Bill—notably, the extent to which the restrictions in section 8 of the London County Council (Improvements) Act 1900 should be removed, and whether there should be any conditions on that removal.

[Felicity Buchan]

The Committee can consider the extent and any conditions on the memorial in Victoria Tower gardens, so yes, that can be considered.

The established practice for Select Committees on hybrid Bills is that they consider petitions from people who are directly and especially affected by the proposals in the Bill. I understand that the House authorities will publish guidance for people who are considering whether to petition against the Bill. It will ultimately be a matter for the Select Committee to decide which petitioners to hear and which points in the petitions to consider.

The motion is a necessary and important measure that supports the well-established principles and processes for dealing with a hybrid Bill. The amendments proposed by the Father of the House, my hon. Friend the Member for Worthing West (Sir Peter Bottomley), risks undermining those established principles and processes, and could create confusion on the scope of the Committee’s work, which would be unhelpful to the Committee and all participants, including petitioners. For those reasons, the Government do not accept the amendments. I commend the motion to the House.

[Madam Deputy Speaker (Dame Rosie Winterton)]

I call the Father of the House.

Teesworks: Accountability and Scrutiny

Baroness Winterton of Doncaster Excerpts

Wednesday 7th June 2023 Commons Chamber

[Madam Deputy Speaker (Dame Rosie Winterton)]

I call the shadow Secretary of State for Levelling Up, Housing and Communities.

--- Later in debate ---

[Several hon. Members rose—]

[Madam Deputy Speaker (Dame Rosie Winterton)]

Let me try to make an assessment of how many people are trying to catch my eye, so that I am able to gently point out that Back Benchers may have a relatively short amount of time to make their contributions. I hope that colleagues will bear that it mind.

I remind colleagues that if they speak in the debate, I want them to be back in good time for the wind-ups, including the Minister. If interventions are made on a speaker, it is normal practice to stay until the end of that speech.

--- Later in debate ---

[Lisa Nandy]

rose—

[Madam Deputy Speaker]

Order.

[Lee Rowley]

I will give way to the hon. Lady.

--- Later in debate ---

[Madam Deputy Speaker (Dame Rosie Winterton)]

Order. That is the second time the hon. Lady has referred to sitting Members by name. I know that it is complicated because there are former Prime Ministers and former Secretaries of State who can be referred to by name, but, otherwise, Members must be referred to by their constituency, as I am sure the hon. Lady well knows.

[Julie Elliott]

I apologise, Madam Deputy Speaker.

As I and many other colleagues have noted, there is a way out of this for the Government. They can commit to the full National Audit Office investigation, which is so needed in an issue as important as this. They can let go of the idea of the Secretary of State picking the people he wants to carry out the investigation, as has happened with the investigation into the ecocide off the coast of Teesside, and let the NAO do its job, as it has the experience, capacity and independence to do this properly. There must be a reason why the Government do not want this to happen. I ask the Minister, as the Secretary of State is not in his place: why will he not support Labour’s call for a comprehensive, independent investigation by the NAO, so that we can get to the bottom of what has actually gone on? Does he know something that the rest of us do not? When the investigation takes place, can he assure the House that those who were engaged in the process will be able to speak freely and honestly, irrespective of any non-disclosure agreements in place? That is extremely important, because the investigation needs to be thorough, transparent, and, above all, trusted. I know that “trust” and “honesty” are not the buzzwords of this Government, and they are not the buzzwords of this process, but they need to be.

[Jill Mortimer (Hartlepool) (Con)]

We all know why we are here. This has all transpired because of allegations made by the hon. Member for Middlesbrough (Andy McDonald). Interestingly, he will not repeat those allegations outside of this Chamber and the immunity that it provides. At the end of May, I listened to “World at One” in which the hon. Gentleman was asked directly about the accusations that he made in the Chamber. Hats off to him: he performed verbal gymnastic feats of which Olga Korbut would have been proud. I have never heard anybody evade answering a direct question quite so well. I shall stop complimenting him now.

Mayor Ben Houchen and the Teesworks board were perfectly open to a National Audit Office review. I must declare an interest here: I sit on the Public Accounts Committee and I have every faith in the NAO to perform that review. However, the Department for Levelling Up, Housing and Communities decided not to go down that route, and for good reason—it is completely understandable why it made that decision. It would be an extension of the powers of the NAO, giving it jurisdiction over local authorities, which it currently does not have, and that could set an unnecessary and regrettable precedent.

There is to be an independent inquiry, which will follow the rules laid down in the Local Government Act 1972, and that should be sufficient for everybody. Sadly, those on the Opposition Benches once again seem intent on spreading scurrilous rumours and baseless accusations for their own political ends. They know that casting a shadow of doubt over the Teesworks site will deter investors—investors who would provide jobs and grow the economy throughout the region for our people. Labour Members once again want to keep the poor poor. They are the enemy of aspiration and the friend of misery, and only by keeping their big, red socialist boot on the throat of the electorate can they hope for re-election. Conservative Members choose to be positive and to support people into well-paid jobs. We seek only to bring good futures, regeneration, growth and opportunity to our region, a region that Labour has ignored and taken for granted for generations.

[Madam Deputy Speaker (Dame Rosie Winterton)]

I get the sense that there are quite strong feelings in this debate. I hope that everyone will bear in mind that we expect temperate and moderate language, and we expect the debate to be like that.

--- Later in debate ---

[Several hon. Members rose—]

[Madam Deputy Speaker (Dame Rosie Winterton)]

I remind Members that we still have a large number of speakers to get in before the wind-ups.

New Housing Supply

Baroness Winterton of Doncaster Excerpts

Monday 5th June 2023 Commons Chamber

[Mr Davis]

I have to stop there as I have nearly finished. We can build good-quality, spacious homes in new developments—well-designed homes in well-designed communities. Learning from previous development of garden villages and new towns, we can avoid past mistakes and build attractive, pleasant places that people will genuinely want to call home. In many ways, this is a matter of property rights. What we are aiming for is the best balance of affordability, ambition and respect for local residents of any mass house building proposal currently on the table. They are based on a proven model of success. Let’s get building.

[Madam Deputy Speaker (Dame Rosie Winterton)]

As colleagues will see, this is a very well subscribed debate. If we are to get everybody in, that requires speeches of seven minutes.

--- Later in debate ---

[Several hon. Members rose—]

[Madam Deputy Speaker (Dame Rosie Winterton)]

Order. I remind the House of my advice about seven-minute speeches. Others will be squeezed if Members do not stick to that. I am sure that Kit Malthouse will provide a brilliant example.

--- Later in debate ---

[Madam Deputy Speaker (Dame Rosie Winterton)]

I call the shadow Minister.

--- Later in debate ---

[Matthew Pennycook]

I will not give way.

But we will insist that the planning system is once again geared toward meeting housing need in full. To that end, if they are enacted as expected, a Labour Government will reverse the damaging changes the Government propose to make to the NPPF in relation to planning for housing. However, although reversing those damaging changes to national planning policy will be an essential first step, more far-reaching reform will be required if we are to overcome the limitations of a speculative house building model, a broken land market, and a planning system that is at once both too permissive and too restrictive. That will mean, among many other things, overhauling England’s dysfunctional planning structures so that the system more effectively facilitates strategic housing growth across those sub-regional areas with significant unmet need. That might be by way of extensions to existing urban settlements or entirely new settlements—I would argue that we need both in good measure. It will mean more proactive public sector involvement in housing delivery on large sites across the country, so that quality place making and long-term value creation become more than just the rare exception.

Let me make it clear, Madam Deputy Speaker, that Labour’s approach will not be premised on a drive for units at any cost. We appreciate that many local communities resist development because it entails poor-quality housing in inappropriate and often entirely car-dependent locations, without the necessary physical and social infrastructure for communities to thrive, or sufficient levels of affordable housing to meet local need. We would argue that that outcome is a direct consequence of the Government’s over-reliance on private house builders building homes for market sale to meet overall housing need. Yet when it comes to house building, there need not be an inherent trade-off between quantity and quality. A Labour Government will be determined to see increased rates of house building, but equally determined that much more supply comes via a long-term stewardship approach so that, if not removed entirely, public opposition to significant development in contested areas should at least be much reduced.

Similarly, we reject the notion that building more homes must come at the expense of wider national policy objectives. In addition to increasing housing supply in a way that prioritises quality of build and quality of place, we will act to ensure that the housing and planning systems play their full part in addressing other pressing national challenges such as the drive towards net zero, the need for urgent nature restoration and the need to improve public health.

To conclude, it is not the only way of solving England’s housing problems and it certainly will not be a panacea for them, but building more homes remains the most effective way that we have of tackling almost all of the housing-related problems with which our country is contending. The Government needed to build more homes before the so-called planning concern group extracted its damaging concessions late last year. As a result of the Government’s appeasement of that group, we now face the very real prospect that house building rates will plummet over the next 12 to 18 months.

We desperately need a change of approach, but it is a change that the present Government and the Ministers on the Front Bench are incapable of delivering. It is high time that we had a general election, so that they can make way for a Government who are serious about ensuring that we build to meet housing need in full and boost economic growth.

[Madam Deputy Speaker (Dame Rosie Winterton)]

Before I call the Minister to speak, I have to say that I am extremely disappointed that some colleagues were not present to hear the winding-up speech from the Opposition. It is as important to be here for the Opposition’s wind-up as it is to be here for the Minister’s wind-up. It is extremely discourteous not to be here.

--- Later in debate ---

[Vicky Ford]

On a point of order, Madam Deputy Speaker. When I spoke earlier, I should perhaps have referred to my entry in the Register of Members’ Financial Interests, as I am an unpaid member of the board of the legendary Essex Cricket. I hope that Members will forgive me and that the record can be corrected.

[Madam Deputy Speaker (Dame Rosie Winterton)]

I thank the right hon. Lady for her point of order and for giving me notice of it. I know that she genuinely regrets not mentioning that, and I am sure that the House will appreciate the fact that, as soon as she realised, she came to point out that she perhaps should have declared it before.

Question put and agreed to.

Resolved,

That this House has considered the matter of delivering new housing supply.

Leasehold Reform

Baroness Winterton of Doncaster Excerpts

Tuesday 23rd May 2023 Commons Chamber

[James Murray (Ealing North) (Lab/Co-op)]

For nearly a decade before I was elected as the MP for Ealing North, I had the honour of serving in local and city-wide government in the capital, working every day to tackle the housing crisis. If my memory serves me correctly, when I was working for the Mayor of London, as his deputy mayor for housing, he responded to a Government consultation back in 2017 entitled “Tackling unfair practices in the leasehold market”. I looked at that consultation document this morning and noticed that its introduction cited the right hon. Member for Bromsgrove (Sajid Javid), the then Secretary of State for Communities and Local Government, as having said:

“I don’t see how we can look the other way while these practically feudal practices persist”.

Two years later, following more consultation, the 2019 Conservative manifesto included a commitment to continue reform of the leasehold system. Three years after that, the latest Housing Secretary said that he would

“end the absurd, feudal system of leasehold, which restricts people’s rights”.—[Official Report, 9 June 2022; Vol. 715, c. 978.]

The current Secretary of State for Housing, Communities and Local Government seemed finally to be on course to do something at the start of this year, confirming that the Government would “absolutely” abolish the feudal system of leasehold and bring forward legislation shortly. Yet here we are, in May 2023, with the Conservatives apparently abandoning their promises to leaseholders. That is why, today, we will be voting to make the Secretary of State keep his promise.

I know the impact that the current system of leasehold can have on people, both as a former leaseholder myself and, crucially, from the experiences of the people I represent. Since I was first elected in 2019, I have been contacted by email, phone, in my advice surgery and on the street by leaseholders from all parts of my constituency to talk about the challenges they face. Let me mention just a few of my constituents here today. I draw the Minister’s attention to leaseholders at Oaklands on Argyle Road. They are facing the prospect of the freeholder adding another storey to their building without any meaningful consultation and despite issues of subsidence in the block.

Meanwhile, leaseholders at Chartwell Close in Greenford have reported great difficulties, costs and a lack of information from the freeholder when trying to exercise their right to manage. Leaseholders at Bridgepoint House, right opposite my constituency office, continue to face a very challenging time with all those involved in owning, building and managing their block as they try to remedy fire safety concerns.

Those are just a few examples of the many people I represent who live in private leasehold flats, and who far too often lack control over, or even a say in, what happens to the place in which they live. That is why I will be glad to vote for our motion today, to press the Government to end the sale of new private leasehold houses, to introduce a workable system to replace private leasehold flats with commonhold, and to enact the Law Commission’s recommendations on enfranchisement, commonhold and the right to manage in full.

The truth is that having security in our own home is a fundamental need for people and families in whatever tenure they live. The impact of leasehold means that, even when people are able to buy a home, which should bring that security, that basic desire for real security is often stymied by a feudal system of ownership. We might have thought—as, indeed, leaseholders across the country might have thought—that when Conservative Ministers said that they did not see how

“we can look the other way while these practically feudal practices persist”,

change was coming. We might have thought that change was coming when Conservative Ministers said that we should, “end the absurd, feudal system of leasehold, which restricts people’s rights”. But after years of opportunities to act, they have proven themselves simply unable to tackle the long-term challenges we face.

The truth is that the Conservatives in Government cannot tackle the long-term challenges we face; they have become a long-term challenge themselves. It is time to do the right thing, to follow Labour’s lead and to give people the security that they need and deserve.

[Madam Deputy Speaker (Dame Rosie Winterton)]

We now come to the wind-ups. I am sure that Members who have spoken in the debate will be arriving in the Chamber any minute now. As we have said on a number of occasions, it is important for them to be here for the wind-ups of both the Opposition and the Minister. I call the shadow Minister.

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

Thank you, Madam Deputy Speaker. It is a pleasure to close for the Opposition. I start by declaring an interest: my wife is the joint chief executive of the Law Commission, whose work I intend to cite in my remarks.

This has been an excellent debate, featuring a great many thoughtful and informed contributions, and I thank all those hon. Members who have taken part in it. In particular, I commend the remarks made by my hon. Friend the Member for Sheffield South East (Mr Betts), my right hon. Friend the Member for North Durham (Mr Jones), and my hon. Friends the Members for City of Chester (Samantha Dixon), for Dulwich and West Norwood (Helen Hayes), for West Lancashire (Ashley Dalton), for Weaver Vale (Mike Amesbury), for Brentford and Isleworth (Ruth Cadbury), for Blackburn (Kate Hollern), for St Helens South and Whiston (Ms Rimmer), for Ellesmere Port and Neston (Justin Madders), for Warwick and Leamington (Matt Western) and for Ealing North (James Murray). Together, they brought to life the plight of leaseholders across the country and powerfully reinforced the case for bold and urgent reform.

The sense of satisfaction, pride and security that is felt when someone completes the purchase of their first home and the keys are finally handed over is something that millions of homeowners across the country will recognise and remember with fondness. Given a free choice, an overwhelming majority of families would prefer to own their own home, and home ownership remains indelibly associated in the minds of many with security, control, freedom and hope.

Yet, as we have heard, for far too many leaseholders, the reality of home ownership has fallen woefully short of the dream, their lives marked by an intermittent, if not constant, struggle with punitive and escalating ground rents, unjustified permissions and administration fees, with unreasonable or extortionate charges, and with onerous conditions imposed with little or no consultation. For all those leaseholders also affected by the building safety crisis, particularly all those non-qualifying leaseholders who the Government have chosen to exclude from protections in the Building Safety Act 2022, that dream has not just fallen short; it has become a living nightmare.

This is not what home ownership should entail. Under successive Conservative-led Governments, the dream of owning their own home has slipped away for far too many families. Labour is committed to addressing that failure and reviving the dream of home ownership for current and future generations, but we are equally determined to reform the leasehold system fundamentally and comprehensively, by addressing the historical inequity on which it rests and making sure it works in the interests of leaseholders.

The Government ostensibly agree with us on the need to overhaul the entire leasehold system. In 2017 they asked the Law Commission to suggest improvements to both the leasehold and commonhold systems and, once the recommendations were published in July 2020, they made it clear that they were considering how to implement all of them. In 2021 they established the Commonhold Council to prepare the ground for widespread take-up of a collective form of home ownership that is the norm in many other parts of the world.

In 2022 the Government passed, with our support, the Leasehold Reform (Ground Rent) Act, which set ground rents on newly created leases to zero. Ministers assured us, as my hon. Friend the Member for Weaver Vale pointed out, that that legislation was merely the first part of a two-part seminal programme to implement reform in this Parliament. In January this year, in an interview with The Sunday Times, the present Secretary of State went further and unambiguously announced his intention to abolish the leasehold system in its entirety—raising expectations, as my right hon. Friend the Member for North Durham pointed out, among leaseholders across the country.

Yet not only are leaseholders still waiting for the publication of the leasehold reform (part 2) Bill, but, according to recent reports, the Government’s commitment to legislate for fundamental and comprehensive leasehold reform through that Bill looks set to be abandoned after the Secretary of State was overruled by Downing Street. If the substance of those reports is true, it will represent the latest broken promise in 13 years of Conservative failure. The media reports in question indicated that we will see a second leasehold reform Bill in the King’s Speech later this year, but they suggested that No. 10 will only allow the Secretary of State a limited one.

We are told that the Bill in question might include a cap on ground rents, more powers for tenants to choose their own property management company and a ban on building owners’ forcing leaseholders to pay to the other side any legal costs incurred as part of a dispute. However, it is still not clear whether that is the sum total of the measures leaseholders can now expect, or whether Downing Street might give the Secretary of State permission for a little more.

When the Minister closes the debate, will she therefore tell the House, and all the leaseholders across the country who are listening very carefully to what is being said here today, not just what the Government are committed to implementing at some point in the future, but what the major provisions in that forthcoming leasehold reform Bill will now be? Will they be limited to the three measures I just mentioned, or can leaseholders expect more—perhaps a prescribed formula for valuation in standard cases, or, as I believe the Parliamentary Under-Secretary of State for Levelling Up, Housing and Communities, the hon. Member for North East Derbyshire (Lee Rowley), implied but did not explicitly confirm, improvements to freehold service charge protection?

If the Minister is not prepared to tell leaseholders what all the major provisions in that forthcoming Bill are likely to be, or if the Government have still not made up their mind after all this time, she owes it to leaseholders at least to clarify whether the Government remain committed to that Bill’s containing all those specific measures relating to enfranchisement, valuation and lease extensions that the right hon. Member for Newark (Robert Jenrick) committed to implementing when he was Secretary of State.

As set out in a written ministerial statement of 11 January 2021, those specific commitments included the abolition of marriage value, capping the treatment of ground rents on all existing residential leases at 0.1% of freehold value and prescribing rates for the calculations at market value, a right for those with existing long leases to buy out the ground rent without the need to extend their term of lease, and the right for all leaseholders to extend their lease as often as they wish, at zero ground rent, for a term of 990 years. The Parliamentary Under-Secretary of State earlier mentioned several of those commitments, but again he was less than explicit that they would definitely be in the legislation. Will the Minister of State tell the House whether the forthcoming Bill will include them all?

But whether it ultimately includes merely a handful of worthy measures or all those explicitly committed to by the right hon. Member for Newark during the period he led the Department, what now looks certain is that the scaled-back leasehold reform Bill that the Government are finalising will be a far cry from what successive Ministers—and, in particular, the present Secretary of State—have led leaseholders across the country to believe would be enacted by this Government in this Parliament. When she closes the debate, the least the Minister can do is to be honest with leaseholders about what they should no longer expect from this Government in the way of leasehold reform, and make it clear, if that is indeed the case, that Ministers do not now intend in this Parliament to enact all the recommendations on enfranchisement, commonhold and the right to manage made in the Law Commission’s three reports of 2020.

As well as that honest admission, leaseholders deserve an explanation as to why the Government are seemingly not now prepared to implement those sensible and proportionate recommendations in full. Finding adequate parliamentary time cannot be the reason, given that the Law Commission parliamentary procedure would reduce the time any such legislation would spend on the Floor of the House and enable the Government to complete the process before a general election. The House, as well as all those organisations that have been campaigning for so long on behalf of exploited leaseholders, deserve a clear answer today about the real reason leaseholders look set to be fobbed off with just a limited Bill.

To conclude, nearly 5 million households in England are trapped in an archaic system of home ownership that has its roots in 11th-century English property law. This House has legislated to give leaseholders more rights in the past, but none of those previous efforts fundamentally disturbed the historic inequity on which the system rests, and as a result, leaseholders remain at the mercy of arcane and discriminatory practices, to their detriment and to the benefit of freeholders.

I end by saying this directly to any leaseholders watching our proceedings today. Labour recognises that you have waited long enough for this House of Commons to truly deliver for you. We are determined to fundamentally and comprehensively reform the current system, overhauling leasehold to your lasting benefit and reinvigorating commonhold to such an extent that it will become the default and render leasehold obsolete. If the Government abide by the spirit of the motion tabled today and honour their commitments to you in full, we will work with them constructively to improve your lives, but rest assured that if they do not, a Labour Government will finish the job.

[Madam Deputy Speaker (Dame Rosie Winterton)]

Now that we are all back, I want to reiterate once again how important it is for those who have contributed to the debate to get back to hear not only the Opposition’s but the Minister’s winding-up speeches. One way to ensure that that happens is to actually stay in the debate and hear what other people have to say—a novel idea, I know, but it can be well worth it.

--- Later in debate ---

[Mr Kevan Jones]

On a point of order, Madam Deputy Speaker. I might be old-fashioned, but I thought that when Ministers came to the Chamber to reply, they had to reply to the debate. The Minister has thanked Members from her own Benches who have spoken, but detailed questions were asked by Members from across the House. All we are getting is a speech written by civil servants, not a response to the debate, and she is quite clearly refusing to take any interventions from my hon. Friends.

[Madam Deputy Speaker (Dame Rosie Winterton)]

I thank the right hon. Gentleman for his point of order. Obviously I am not responsible for the Minister’s speech, but I am sure she will be referring to the contributions made by others during her winding-up speech—she is perhaps coming to that now.

I am also checking to make sure that the other Minister, the hon. Member for North East Derbyshire (Lee Rowley), will be coming back to the Chamber. I am not sure that he gave apologies for not being here for the wind-ups, but we are just checking.

[Rachel Maclean]

I wanted to thank my colleagues on the Government Benches—it is a courtesy of the House that we do so, and unfortunately, they were not thanked by the hon. Member for Greenwich and Woolwich (Matthew Pennycook). I am very grateful for all Members’ contributions, and if they will allow me, I will come on to answering their questions.

As I was saying, it is our manifesto commitment to bring to an end the outdated and feudal leasehold system. That is why we have embarked on a significant programme of reform. One issue that has been repeatedly raised in today’s debate is escalating ground rents. The Government have tackled that issue head on through our Leasehold Reform (Ground Rent) Act 2022, ensuring that people buying most new leases will not have to pay a penny in ground rents. For existing leaseholders who have already been saddled with unjustified rent hikes, we have asked the CMA to investigate such unfair terms. The CMA has secured commitments benefiting over 20,000 leaseholders, including the removal of terms that allow for the doubling of ground rents, with the charges instead reverting to original rates.

In 2021, commitments were secured from Aviva, Countryside Properties and Taylor Wimpey to return doubling ground rent terms to original rates, and from Persimmon to support leasehold house owners to buy their freehold at the original price quoted. Last year, similar commitments were secured from 15 landlords who bought freeholds from Countryside Properties, and nine companies that bought freeholds from Taylor Wimpey. A further four national developers—Crest Nicholson, Redrow, Miller Homes and Vistry—

--- Later in debate ---

[Rachel Maclean]

I refer the shadow Minister to the remarks I have literally just made on that point. I repeat that we are committed to moving to a fairer, simpler and more equitable system. We are committed to the promises in our manifesto, as the Under-Secretary of State for Levelling Up, Housing and Communities, my hon. Friend the Member for North East Derbyshire (Lee Rowley), set out in his opening remarks. These promises have been repeated by previous Secretaries of State with responsibility for housing. That is our ambition, and we will work tirelessly with Members from all parts of the House to make it a reality.

[Madam Deputy Speaker (Dame Rosie Winterton)]

Before I put the Question, I am sure that the Whips Office and those on the Treasury Bench will appreciate that concern has been expressed that the Minister who opened the debate is not here for the closing speeches, and I believe attempts are being made to find out what has happened. I assure colleagues that that will be pursued. I just give a reminder for those who wish to participate in the next debate that it is important to get back in good time for the Opposition wind-up as well as for the Minister’s wind-up, and one way to achieve that is to stay for most of the debate, rather than disappearing off for long periods.

Question put.

Non-Domestic Rating Bill

Baroness Winterton of Doncaster Excerpts

Committee of the whole House
Monday 22nd May 2023 Commons Chamber

[The First Deputy Chairman of Ways and Means (Dame Rosie Winterton)]

Before I call the mover of amendment 4, I remind the Committee that, while I am in the Chair, I can be addressed as Madam Chair or Dame Rosie, but not as Madam Deputy Speaker. We always have to remind colleagues of this as we move into Committee.

[Peter Aldous (Waveney) (Con)]

I beg to move amendment 4, page 1, line 10, at end insert—

“(2A) In section 64 (Hereditaments) of the Act—

(a) omit subsection (2), and

(b) in subsection 4(3), after “subsection” omit “(2)”.

(2B) In section 65 (Owners and occupiers) of the Act—

(a) omit subsection (8), and

(b) omit subsection (8A).”

The intention of this amendment is to abolish liability to non-domestic rates of advertising when a right is granted permitting the use of land for advertising (section 64) or when land is used for advertising or the erection of an advertising structure (section 65).

[The First Deputy Chairman of Ways and Means]

With this it will be convenient to consider the following:

Amendment 5, page 3, line 3, leave out “one year” and insert “five years”.

The intention of this amendment is to extend the delay in uplifts to business rate bills.

Clauses 1 to 4 stand part.

Amendment 1, in clause 5, page 16, line 3, leave out from “(b),” to end of line 4 and insert “omit “fifth””.

This amendment would require local non-domestic rating lists to be compiled every year.

Amendment 6, in clause 5, page 16, leave out line 4 and insert “in every fifth” substitute

“no less frequently than in every third”.

The intention of this amendment is to move towards revaluations on local non-domestic rating lists at no more than three-yearly intervals.

Amendment 7, in clause 5, page 16, leave out line 4 and insert

“”on 1 April in every fifth year afterwards”

substitute

“on 1 April 2026 and on 1 April in every year afterwards””.

The intention of this amendment is to move towards annual revaluations on local non-domestic rating lists from April 2026 onwards.

Amendment 2, in clause 5, page 16, leave out line 6 and insert “omit “fifth””.

This amendment would require central non-domestic rating lists to be compiled every year.

Amendment 8, in clause 5, page 16, leave out line 6 and insert ““in every fifth” substitute

“no less frequently than in every third””.

The intention of this amendment is to move towards revaluations on central non-domestic rating lists at no more than three-yearly intervals.

Amendment 9, in clause 5, page 16, leave out line 6 and insert

““on 1 April in every fifth year afterwards”

substitute

“on 1 April 2026 and on 1 April in every year afterwards””.

The intention of this amendment is to move towards annual revaluations on central non-domestic rating lists from April 2026 onwards.

Amendment 3, in clause 5, page 16, leave out lines 12 and 13 and insert—

“(ii) the year beginning on 1 April 2023 and each year beginning 1 April after that date”.

This amendment would make every year from now on a relevant period for transitional provision under the 1988 Act.

Amendment 10, in clause 5, page 16, leave out lines 12 and 13 and insert—

“(ii) the period of three years beginning on 1 April 2023 and each year beginning on 1 April from 1 April 2026 onwards.”

The intention of this amendment is to move towards each single year being the relevant period for transitional provision under the 1988 Act.

Clause 5 stand part.

Amendment 11, in clause 6, page 16, line 15, at end insert—

“(za) in subsection (4), for “different from what it would be” substitute “less than it would be””.

The intention of this amendment is to effectively abolish downwards transition.

Amendment 12, in clause 6, page 16, line 17, at end insert—

“(c) in making these regulations the Secretary of State shall ensure that no ratepayer pays a higher amount in business rates than the amount derived from multiplying the uniform business rate by the property’s rateable value.”

The intention of this amendment is to remove downward transitional phasing.

Clauses 6 to 12 stand part.

Amendment 13, in clause 13, page 21, line 31, leave out “paragraph 4G” and insert “paragraphs 4FA and 4G”.

This is a paving amendment for Amendment 14.

Amendment 14, in clause 13, page 22, line 26, at end insert—

“4FA The definition of a person (“P”) for the purpose of paragraphs 4C to 4E does not include a person who is in receipt of relief of 100 per cent with a chargeable amount of nil.”

The intention of this amendment is exclude businesses who have nothing to pay from the duty to notify HMRC and the VOA.

Amendment 20, in clause 13, page 23, line 35, at end insert—

“4LA Paragraphs 4K and 4L do not apply if P is eligible for small business rate relief (for example, because the rateable value of the hereditament for which P is or would be a ratepayer is less than £15,000).”

This amendment would exempt businesses in receipt of Small Business Rate Relief Exemption from annual reporting if there is no change to report.

Amendment 15, in clause 13, page 27, line 44, at end insert—

“(5A) After paragraph 5ZF (inserted by subsection (5)) insert—

“Rebate in case of failure by valuation officer to provide confirmation

5ZG Where the valuation officer has not provided confirmation to P of a change following a notification by P that will affect the valuation of a hereditament within 60 days of the valuation officer receiving that notification, the total amount of non-domestic rates payable on that hereditament is reduced by—

(a) £100, and

(b) (b) a further £60 for each day until the confirmation is received by P, up to a maximum of £1,800.””

The intention of this amendment is to impose reciprocal penalties on the VOA for failure to notify ratepayers on changes in their rate assessments.

Clause 13 stand part.

Amendment 17, in clause 14, page 32, line 37, at end insert—

“(e) after paragraph 2C insert—

“2D(1) This paragraph applies where—

(a) a hereditament consists wholly or in part of land on which an advertising right is exercisable; and

(b) the right is not severed from the occupation of the land.

(2) For the purposes of determining the rateable values of the hereditament under paragraph 2 above, the rent at which the hereditament might reasonably be expected to be let shall be estimated as if the adverting right did not exist.

(3) In this paragraph “advertising right” means a right to use any land for the purpose of exhibiting advertisements.””

The intention of this amendment is to provide that the rateable value of hereditaments which consist wholly or in part of land on which an advertising right is exercisable to be calculated as though the advertising right does not exist.

Clauses 14 to 18 stand part.

Amendment 18, in clause 19, page 39, line 11, at beginning insert “Subject to subsection (4A)”.

This is a paving amendment for Amendment 19.

Amendment 19, in clause 19, page 39, line 17, at end insert—

“(4A) Section 13 may not be brought into force until at least 6 months after guidance has been published by the Valuation Office Agency on the requirement this Act will place on business ratepayers.”

This amendment is to ensure that guidance is made available to business ratepayers before the duty to notify comes into effect.

Clauses 19 and 20 stand part.

New clause 1—Valuation Office Agency performance targets—

“(1) The Secretary of State must within three months of the date on which this Act is passed prescribe by regulations performance targets for the Valuation Office Agency to respond to requests for updates to the central and local non-domestic rating lists and to challenges to the valuations on those lists.

(2) The Secretary of State may by regulations require the Valuation Office Agency to report at least annually on its performance in such detail as the Secretary of State may require in or by virtue of those regulations.

(3) The Secretary of State must lay before Parliament any reports made under subsection (2).

(4) Any regulations made under this section must be made by statutory instrument and are subject to negative procedure (annulment by either House of Parliament).

(5) Regulations under subsection (1) may not come into force until an impact assessment has been laid before Parliament.”

This new clause would require annual reports from the VOA on its performance against targets to be set by the Secretary of State.

New clause 2— Non-domestic rating: retail sector review—

“(1) The Secretary of State must conduct a review of the effect of non-domestic rateable values on the retail sector.

(2) The review must be commissioned no later than 6 weeks after the date on which this Act is passed.

(3) The review must assess the impact of non-domestic rateable values on competition between different parts of the retail sector, for example—

(a) stand-alone businesses operating from a single shop premises in a village, town or suburban high street setting,

(b) chain stores with multiple premises in city centres and out-of-centre shopping malls, or

(c) mainly online operations based on making deliveries from very large warehouses or fulfilment centres.

(4) The report of the review must be laid before Parliament no later than 1 May 2024.”

This new clause would require a review of the differential impact of business rates on different parts of the retail sector.

New clause 3—Non-domestic rating: hospitality sector review—

“(1) The Secretary of State must conduct a review of the effect of non-domestic rateable values on the hospitality sector.

(2) The review must be commissioned no later than 6 weeks after the date on which this Act is passed.

(3) The review must assess the consistency of approach to setting of non-domestic rateable values between hospitality businesses occupying premises of similar size and trading style, including—

(a) public houses,

(b) restaurants

(c) live performance theatres, and

(d) exhibition spaces.

(4) The report of the review must be laid before Parliament no later than 1 May 2024.”

This new clause would require a review of the differential impact of business rates on different parts of the hospitality sector.

Amendment 25, in schedule, page 47, line 2, at end, insert —

“18A In the Non-Domestic Rating (Alteration of List and Appeals) (England) Regulations 2009 (S.I. 2009/2268), omit regulation 15 (Advertising rights).

18B In the Non-Domestic Rating (Alteration of List and Appeals) (Wales) Regulations 2009 (S.I. 2005/758), omit regulation 15 (Advertising rights).

18C In the Non-Domestic Rating (Miscellaneous Provisions) (No. 2) Regulations 1989 (S.I. 1989/2303), omit regulation 4 (Advertising rights).”

These consequential amendments would be required to remove references to advertising rights following the abolition of liability to non-domestic rating in respect of advertising rights effected by Amendment 4 to Clause 1 of this Bill.

Government amendments 21 to 24.

That the schedule be the schedule to the Bill.

[Peter Aldous]

I shall start off where I left off in the Bill’s Second Reading debate. By way of background, the Bill is to be welcomed, although it is important that it is viewed as the start of the process of fundamentally reforming business rates and not the endgame. It probably would have been preferable to have heeded the advice of the Chartered Institute of Taxation and for the Government to have brought forward a new consolidated business rates Bill, rather than to amend the Local Government Finance Act 1988. That would have sent the message to businesses both large and small that real change was on the way. However, we are where we are and we must ensure that, ultimately, this Bill paves the way to reducing business rates to an affordable level, putting the business rates system on a long-term, more easily understood footing and removing those barriers to regional growth.

We must have in mind the ultimate end goal, which should be to get the uniform business rate multiplier back down from in excess of 50p in the pound to the more affordable 30p in the pound, which is where we started when the system came in in the early ’90s. To get to that, we need annual valuations, the abolition of the multitude of complicated reliefs and to digitalise the Valuation Office Agency. The Bill moves us in that direction—although perhaps a little too tentatively. Moreover, the duty to notify, which takes up much of the Bill, adds a bureaucratic burden on businesses and there are some unintended consequences that we should avoid. We must have in mind the need at all times for increased transparency. The amendments that I tabled have those considerations in mind.

Any adjustments to the business rates system should be guided by two principles: reducing the regulatory burden on businesses and, as I said, reducing the uniform business rate multiplier. We should look at the Bill with those considerations in mind and aim to move towards a sustainable system that provides a long-term revenue stream that businesses can find bearable, which has not been the case so often in recent years.

A properly functioning property tax system is critical to achieving a vibrant and sustainable economy. For most of this century, an outdated and unresponsive business rates system has placed enormous strain on many businesses, particularly those in the retail and hospitality sectors. Moreover, that strain has not been shared equally across the country. That illustrates how the current system is a hindrance—a logjam—to levelling up. We need non-domestic rates to be more responsive to changes in the economy so as to ensure that the system does not place an undue and unfair strain on businesses. If we can achieve that, we shall be more able to attract long-term investment into our towns and cities, and we shall be better placed to meet other vital policy objectives such as revitalising our high streets and achieving our net zero aims and goals.

Clause 5 relates to the frequency at which revaluations take place.

As I have mentioned, we need to move to the end goal of annual valuations, so that business rates are more in line with the economic outlook. I have tabled amendments 6, 7, 8, 9 and 10 with that objective in mind. To achieve a responsive business rates system, valuations should be carried out as regularly as possible. The Bill is a good first step, and increases valuations from every five to every three years, but it should provide the flexibility for a future Government to require more frequent valuations —ultimately, every year. Annual revaluation could bring bills more in line with commercial property values, rather than lagging many years behind. Even with a three-year list and a two-year antecedent valuation date, occupiers will be paying business rates bills in early 2026 that are based on valuations from nearly five years beforehand.

Annual revaluations are essential if the Government are serious about modernising the business rates system. They take place in countries as diverse as Hong Kong and the Netherlands, and thus there is no reason why they should not take place in England and Wales. To conclude on this issue, the enormous administrative burden placed on ratepayers by the new duty to notify would certainly not be worth the distress and inconvenience it will cause if it does not ultimately result in the introduction of annual revaluations. In that context, I urge the Government to give full consideration to these amendments.

Clause 13 sets out the requirement for ratepayers to provide information—this is the new duty to notify, which, as drafted, places an unnecessary burden on businesses. Amendments 13, 14 and 15 have the objective of reducing that burden and imposing penalties on the Valuation Office Agency.

Amendments 18 and 19 relate to clause 19, and would ensure that guidance is made available to business ratepayers before the duty to notify comes into effect. The new duty to notify will place an onus on all ratepayers to provide the Valuation Office Agency with any information that they reasonably believe could impact on the business rates valuation. This is an enormous additional ask, not least for the 700,000 businesses which, up to now, have not been subject to business rates and might be completely unaware of what is proposed. The duty requires ratepayers to notify the VOA of changes to their properties within a 60-day window, and carries the risk of financial sanctions and even imprisonment if they fail to comply.

As a former chartered surveyor, I cannot see how such a burdensome duty on all commercial property occupiers—including, as I have said, current non-ratepayers—can be justified as necessary to administer a move to three-yearly revaluations. This duty might be bearable for businesses if it assisted the VOA in administering the move to annual revaluations. For small businesses, it will cause more pain than the gain that will be derived from moving to three-yearly valuations.

The new duty will leave many ratepayers wondering what might qualify as a notifiable change. The VOA is yet to publish any guidance; thus many businesses will take no chances and will notify the VOA of any changes to their properties. The VOA will hence be hoist with its own petard, as it will be flooded with paperwork.

As I mentioned on Second Reading, many businesses, particularly small and medium-sized enterprises without any rating expertise, will turn to rogue rating advisers for help. Business rates advisers do not require a licence to practise, and many unscrupulous operators will see the new duty to notify as an opportunity to take advantage of small businesses.

While the ratepayer has a short period in which to notify the VOA of any changes to the property, as the Bill stands, the VOA has no such obligation. It can, in effect, respond to notifications at its leisure. I therefore propose a reciprocal provision that places on the VOA a 60-day timeframe in which to respond to notifications, with rebates to the ratepayer equivalent to the fines set out in clause 13 that accompany a failure to comply.

Clause 6 is a short and simple but nevertheless extremely important clause, which gives effect to the removal of downwards transitional phasing, as announced by my right hon. Friend the Chancellor on 17 November last year in his autumn statement. That was a positive step, but clause 6 as drafted does not permanently remove the threat of downwards phasing, which is a punitive tax that unfairly penalises occupiers whose rateable values have fallen. It is wrong to force those whose property values have fallen to subsidise those whose property values have risen.

The clause as it stands simply removes the requirement for transitional phasing mechanisms to be revenue-neutral. That means that the Government no longer need to fund any upwards transitional mechanism with a corresponding downwards transitional mechanism. However, that means that a downwards mechanism can be easily introduced by a future Government without any parliamentary scrutiny. Amendments 11 and 12 would plug that loophole and permanently abolish downwards transitional phasing. If any future Government want to reintroduce it, they should come to Parliament and make the case for it, rather than bringing it in through the back door.

Amendment 16 would delete clause 14, which, from my perspective, is inequitable and unfair to businesses. As it stands, clause 14 exempts Government legislation from qualifying for the pursuit of a material change of circumstances. That would remove a vital check on Government and would allow future Governments to legislate with impunity at the expense of businesses right across the country, leaving them no recourse to challenge legislation that interferes with their ability to do business.

A material change in circumstances gives ratepayers recourse to pursue relief on their business rates when circumstances outside their control hinder their ability to do business. Clause 14 exempts Government legislation from being a qualifying reason for a material change in circumstances. I anticipate that the Government have included this clause because they want business rates to be a predictable source of revenue, even if their own legislation or action undermines the very rateable value of the properties occupied by businesses.

During the covid lockdown, to prevent the spread of the virus, the Government forced a number of businesses to cease trading. However, instead of accepting that there had been a material change of circumstances for those occupiers and allowing appeals to be launched, the Government introduced a locally administered compensation scheme. With clause 14, the Government are seeking the freedom to introduce any legislation at any time that might alter the rateable value of a property. That is both unprecedented and wrong.

Clause 14 can be viewed as a power grab that sets a dangerous precedent and tells occupiers that they will have to accept the detrimental impact of legislation on their ability to do business, with no legal recourse. Amendment 16 would delete clause 14, restoring the ability of ratepayers to claim a material change of circumstances, regardless of how the change in circumstances arose.

Amendments 4, 5, 17 and 25 would amend and add to clauses 1 and 14 and part 1 of the schedule. They address a niche issue, albeit an extremely important one. The out-of-home advertising industry includes adverts on billboards, walls, digital posters, street furniture, bus shelters, buses and railway stations, which we see every day as we go about our lives and probably take for granted. The industry provides an important form of income for local authorities, and it is estimated that almost half the revenue generated goes back into local communities. These amendments would abolish the liability to non-domestic rating in respect of advertising rights.

The removal of business rates on advertising rights from the rating lists would have three advantages. First, it would increase the value and level of services provided by local authorities. Secondly, it would remove a competitive disadvantage to growth that impacts the out-of-home advertising industry, but that does not apply to its rivals—broadcast, print and online media. Thirdly, it would reduce the high level of inefficiencies relating to advertising rights applied through the Valuation Office Agency, local authorities and the out-of-home advertising industry.

As drafted, the Bill will directly and adversely impact the industry’s ability to invest in local communities. That runs contrary to the Bill’s objective of reducing barriers to business investment. In 2023, business rates charged on advertising rights are an antiquated, out-of-date and ineffective tax. Advertising rights are the only remaining right attracting liability for non-domestic rating. The liability to non-domestic rating in respect of sporting rights was abolished by the Local Government and Rating Act 1997. Amendments 4, 5, 17 and 25 would remove that anomaly.

In conclusion, I have enormous respect for the Minister and for his co-sponsor of the Bill, my hon. Friend the Financial Secretary to the Treasury. Although Treasury Ministers are not currently present on the Front Bench, I am mindful that the Bill has been drafted from a Treasury perspective, gathering in all that money. That is incredibly important—don’t get me wrong—but I suggest we also need to look at the issue through the prism of business.

Whether large, medium-sized or small, businesses need confidence, certainty and a fully reformed business rates system that takes on board some of the amendments I have put forward. A fully reformed system will mean that businesses will know where they stand, and business rates will not be the elephant in the room. People will be able to invest in, build on and expand their businesses with a degree of confidence, leading to increased profits. What that will do—joy to the Treasury—is increase taxation. The Bill makes a start and provides an opportunity for us to turn the vicious circle of business rates into a virtuous circle.

[The First Deputy Chairman of Ways and Means (Dame Rosie Winterton)]

I call the shadow Minister.

[Sarah Owen (Luton North) (Lab)]

As I stated on Second Reading, the Opposition support the measures in the Bill overall because it is crucial that local authorities and businesses have clarity as soon as possible so that they can prepare for what is to come. We have worked constructively to improve the legislation before it gets to them, but the Bill is still lacking in areas that small businesses are crying out for help with.

On Second Reading, I raised the matter of the pressures that small businesses, particularly small chains such as convenience stores, will be under as a result of the intensified reporting requirements. Although it is certainly important to increase accountability for businesses submitting their finances, stakeholder groups such as the Association of Convenience Stores and the Shopkeepers’ Campaign have drawn attention to the stifling impact that the new requirements could have on their businesses. Some small and medium-sized enterprises may resort to outsourcing their account reporting, risking another financial hit in return. We have yet to see the Government addressing those concerns or considering any alternatives.

--- Later in debate ---

[Madam Deputy Speaker (Dame Rosie Winterton)]

I call the shadow Minister.