Affordable and Safe Housing for All
Baroness Winterton of Doncaster Excerpts(4 years, 11 months ago)
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Several hon. Members rose—
Madam Deputy Speaker (Dame Rosie Winterton)
Order. I am going to have to reduce the time limit to four minutes if we are to have any chance of getting everybody in. I remind Members that, if they take interventions, they should take them within the time limit. I know it is difficult, because we have a lot of speakers, but if those who did not put in to speak intervene, it prevents those who did put in to speak from making their speeches. I am sorry about this, but I will reduce the limit to four minutes, and if people take interventions, please try to stay within the limits that we have set.
Bell Ribeiro-Addy (Streatham) (Lab)
Members of Parliament right across this House—certainly my colleagues representing constituencies in London—will know that most of the casework we receive relates to housing. A secure and safe home is the most basic need that is denied to far too many. The Government repeatedly talk about levelling up, but, knowing this need, they continue to fail on all fronts those who are most in need.
The proposed leasehold reforms mean that new leaseholders will not be subject to high and escalating ground rents, but what about the 4.5 million existing leaseholders? Just look at safety and security. The Government have promised to protect leaseholders from cladding costs no less than, I believe, 17 times, but we are now four years on from Grenfell and up to 11 million people are still living in homes with unsafe or unsuitable cladding. Leaseholders continue to be hit by profiteering at every single stage of this scandal. As well as having to pay to remove dangerous cladding at their own expense and all the other safety issues that have now arisen, this Government continue to fail them as they are hit with sky-high insurance premiums and extortionate waking watch costs.
This issue affects an estimated 12,000 people across Lambeth alone, where my constituency is. It is very clear that the Government must provide upfront funding to make these homes safe, and be clear that neither interim nor remediation costs will fall on leaseholders. But again and again, this Government fail to deliver. That is why I am so pleased that Labour has tabled an amendment to set binding targets to remove all cladding by June 2020 and to protect leaseholders from these costs. If the Government want to actually keep a promise for once, they might consider walking through the Lobby with us today.
We certainly need more housing and the capacity to build it. We need so much more right across the country, but at what cost? Handing more power to developers, reducing the amount of real affordable housing—not what we currently call affordable—and taking power away from local government does not make much sense to me. Social housing providers have already expressed concerns that these changes to planning will actually reduce housing affordability. I do not understand how that is levelling up.
The Local Government Information Unit says that the changes would
“leave local government with the political liability on planning whilst depriving them…of the powers to manage it effectively.”
From planning to leasehold reform, I just cannot see how this Government can reconcile what they call building safe and affordable housing with these measures, which leave many with a guarantee of neither.
As we come out of this pandemic, the Government will have missed a major opportunity: their own target to decarbonise by 2050. Even doing this by 2050 is not good enough, so why are there no specific measures in the Queen’s Speech about driving forward all our plans on protecting the environment? We have so little time and we should be doing so much more as a country.
I was extremely disappointed to find that the Queen’s Speech did not specifically provide more funding for homelessness. I would like to see the Everyone In scheme turned into long-term policy. We saw how much we were able to deliver during the pandemic for those who are homeless. Ultimately, we should be removing the Vagrancy Act 1824, which criminalises the homeless, and doing all that we can to support them. Under this Government, buying a home has become the preserve of the rich, and nothing in the Queen’s Speech is doing anything to change that.
Overall, the legislative proposals in the Queen’s Speech and the laws that have already been put forward, including the Overseas Operations (Service Personnel and Veterans) Act 2021 and the spy cops Act—the Covert Human Intelligence Sources (Criminal Conduct) Act 2021—all point towards a new type of authoritarian Government. I certainly did not expect this Government to be a champion of civil rights, but all this put together is something else. From the Bill that will disenfranchise millions of voters by barring those—
Madam Deputy Speaker (Dame Rosie Winterton)
Order. I am afraid that the hon. Lady’s time is up.
Crispin Blunt (Reigate) (Con) [V]
I note that we, Madam Deputy Speaker, have just entered our 25th year of service in the House. In all that time, I have been clear that there is no more important issue to the residents of the constituency of Reigate than planning. Crucially, the protection of our environment hangs on the fact that we are London’s green belt.
I just want to pose a couple of warnings for my right hon. and hon. Friends on the Treasury Bench. They might have noticed that in the last set of local elections only the Borough of Reigate and Banstead remains a district or borough council in Conservative control. These cases almost always turn on people feeling disenfranchised and remote from the planning process. Unless things change, it is only going to get worse. There is also the issue—despite our right hon. Friend the Paymaster General’s machine-gunning at the Dispatch Box of the deputy Leader of the Opposition—of the noise around the developer connection with the Conservative party. The delivery of a developer-led system of house provision will haunt us in future if we do not address it.
I want to point my hon. Friend the Minister to the comments made by our hon. Friend the Member for Harrow East (Bob Blackman) about enabling a plan-led system. If the local authority is coming forward with its own plans, of course it should not need planning permission. The local authority will have produced a plan, which developers would then bid to build.
Within that, however, we need a more important national debate about where housing is to go and about how we are to deliver levelling up so that we can get good houses, good jobs and good infrastructure in those parts of the country where people have drifted away—provincial towns in the midlands and the north—to seek employment elsewhere. I draw my hon. Friend the Minister’s attention to the excellent article in The Times today by our former leader, our noble Friend Lord Hague. We need to address the levelling-up agenda, and we can do it within the planning system, but if we do not, we will be in the deepest trouble, because we will not be able to deliver our principal political objectives.
I want to make two other points. First, I draw the attention of my hon. Friend and his colleagues in the Department to the concern about the building safety fund and how it affects the leaseholders of Nobel House. I have written to the Secretary of State urgently, and I have now had two letters from his colleague, the noble Lord Greenhalgh. Unhappily, the last letter, which arrived today, was in response to my letter to the Secretary of State of 17 December 2020—I did have a previous response to a letter I sent a month later—but this is now absolutely urgent. These leaseholders are in the deepest trouble because of the failure of Avon Estates properly to register a claim for the building safety fund and, indeed, for the waking watch fund.
Finally, on another element of the Queen’s Speech, the welcome ban on conversion therapy lacks any detail on how it will work. The accompanying notes imply that people who are inflicting it at the moment might get protected. We need assurance on that very shortly.
Madam Deputy Speaker (Dame Rosie Winterton)
Nominations closed at 5 o’clock this afternoon for candidates for the post of Chair of the Backbench Business Committee. One nomination has been received, and a ballot will therefore not be held. I congratulate Ian Mearns on his re-election as Chair of the Backbench Business Committee.
James Sunderland (Bracknell) (Con)
Back to housing, Madam Deputy Speaker.
I welcome the Queen’s Speech last week and remain very enthused by what lies ahead in the Planning Bill. There is no question but that the UK needs to build more affordable homes. In my humble opinion, we should all aspire to a much higher rate of home ownership so that everyone can take an equity share in their future. Having a place to live that we call home is surely one of the most fundamental rights that we have.
The Government are really investing in this. We have a new £11.5 billion affordable homes programme, a new mortgage guarantee scheme, discounts for first-time buyers, the abolition of section 21 of the Housing Act 1988 on no-fault evictions, the extra £140 million in discretionary housing payments, plus much more. It is a good news story.
However, the thrust of my argument today is that while there is a clear need for new housing, it needs to be in areas that have the capacity to absorb it. To put it bluntly, it cannot be at the expense of the quality of life that our constituents enjoy, notably in the south-east, and it must not include building on the green belt, eroding what is left of our open spaces or ripping the heart out of our rural communities. I therefore urge the Government to take note of what my constituents in Bracknell and Wokingham are telling me.
In Bracknell Forest, a total of 1,688 new houses were built last year, a 123% increase over the previous year. Of those, 404—23% of the overall target—are affordable homes, with 125 for affordable home ownership and 279 for affordable rent, as well as 107 new houses for the elderly. So we are doing it, but it is wrong that councils should be forced to build on whatever scraps of land are left over. It is a similar picture in Wokingham, where the council was almost powerless to stop the activities of speculative developers.
I therefore urge the Government please to consider the following. The ripping up of the Lichfield table was a welcome step, but I would now propose a new formula that focuses on residual land availability as a percentage of the total area. If there is nothing left in a constituency except for residual farmland, golf courses or school playgrounds, do not build on it. We must also build on urban and brownfield sites, and we should build up, not out. Areas such as the midlands, the north-west and the north-east are full of such potential development sites and investment is needed there.
I am led to believe that up to 1 million homes across the UK are currently unoccupied. Councils must make the best use of them. Permissions for a further 1 million homes have already been granted too, so let us do this with a time limit. We also need extra protections for farmland, so let us please impose punitive and progressive taxes on those who seek to build on what is left of it in our constituencies. To be frank, the net zero argument is daft. If we concrete over trees, fields and hedgerows and then plant a few daisies, do not be surprised if the oxygen stops flowing.
We must allow our councils to honour existing local plans and not have extra targets forced upon them. We need to allow them the autonomy to say no and give our communities a proper voice. Democratic consent must therefore be implicit in any new Bill, and it must not become a weapon for the big state. Finally, there is no moral justification for concreting over our green and pleasant land with yet more dark satanic mills. Not only will we continue to haemorrhage loyal voters who have simply had enough, as we saw last week in the council elections, but we will never get that land back, so let us please ensure that the Planning Bill becomes what we would wish it to be.
Madam Deputy Speaker (Dame Rosie Winterton)
In order to accommodate all speakers who have applied, after the next speaker I will reduce the time limit to three minutes.
Insolvency
Baroness Winterton of Doncaster Excerpts(5 years ago)
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Lucy Powell (Manchester Central) (Lab/Co-op)
On a point of order, Madam Deputy Speaker. During Prime Minister’s questions today, the Prime Minister claimed that
“last night our friends in the European Union voted to approve our Brexit deal, which he opposed.”
That is totally incorrect. You will remember, Madam Deputy Speaker, that in an extraordinary sitting of this House of Commons on 30 December 2020, the Leader of the Opposition and the whole Labour party voted for the Brexit deal agreed by the Government and the EU. As limited as it was, we backed it and avoided a no-deal scenario. Do you agree, Madam Deputy Speaker, that it is vital that the Prime Minister returns to the House today to swiftly correct the record?
Madam Deputy Speaker (Dame Rosie Winterton)
I am grateful to the hon. Lady for her point of order. I hope she will appreciate that it is not really a point of order for me, but I am sure that the Treasury Bench will have heard what she has said and will report it back in the usual way, through the usual channels. The hon. Lady has obviously also placed it on the record by raising the point of order in the way that she has.
We will have a short two-minute suspension for cleaning before the next business.
National Security and Investment Bill
Baroness Winterton of Doncaster Excerpts(5 years ago)
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Madam Deputy Speaker (Dame Rosie Winterton)
In order to observe social distancing, the Reasons Committee will meet in Committee Room 12.
Business of the House (Today) (No. 2)
Ordered,
That, at this day’s sitting, the Speaker shall put the Questions on the motion in the name of Mr Jacob Rees-Mogg relating to Amendments to the Independent Complaints and Grievance Scheme not later than one hour after the commencement of proceedings on the motion for this Order; such Questions shall include the Questions on any Amendments to the motions selected by the Speaker which may then be moved; the business on that motion may be proceeded with at any hour, though opposed; and Standing Order No. 41A (Deferred divisions) shall not apply.—(Scott Mann.)
Post Office Court of Appeal Judgment
Baroness Winterton of Doncaster Excerpts(5 years ago)
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Paul Scully
My hon. Friend has been consistent in his campaigning in this area, and what I can say is that we will be ensuring that the Post Office provides fair, consistent and speedy compensation within the structures, as will be outlined over the next few weeks and months.
Madam Deputy Speaker (Dame Rosie Winterton)
I thank the Minister for his statement. We will have a three-minute suspension to prepare for the next business.
Fire Safety Bill
Baroness Winterton of Doncaster ExcerptsTuesday 27th April 2021
(5 years ago)
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The Minister for Housing (Christopher Pincher)
I beg to move,
That this House disagrees with Lords amendment 4J.
Madam Deputy Speaker (Dame Rosie Winterton)
With this it will be convenient to consider amendments (g) to (l) in lieu of Lords amendment 4J.
Christopher Pincher
I want first of all to thank all hon. Members for joining in this crucial debate, because all of us in this House agree that residents deserve to be safe, and to feel safe, in their homes. I want to reiterate in the strongest terms the importance of the Bill as a step along the way to delivering that objective, and the risk that we would create if we were to continue to allow these remediation amendments, however well-intentioned, to delay legislation.
The Bill was introduced over a year ago. We are almost at the point of getting it on the statute book, and it is vital that we remind ourselves of the fundamental purpose of what we are seeking to achieve—to provide much-needed legal clarification of the Regulatory Reform (Fire Safety) Order 2005 and direct the update of the fire risk assessments to ensure that they apply to structure, external walls and flat entrance doors. I will give way briefly to the right hon. Member for East Ham (Stephen Timms), but I want as many hon. Members to speak as possible.
Christopher Pincher
The right hon. Gentleman knows of the very significant amount of public money that we have set aside to remediate those buildings that are the most at risk of fire, where serious injury might take place, and the financial provisions that we have set aside also to help other leaseholders. If we do not resolve the Bill this week, fire assessments will not cover those critical elements of which I spoke, and they may continue to be ignored by less responsible building owners. Moreover, the fire and rescue services will be without the legal certainty that they need to take enforcement action. Ultimately, that will compromise the safety of many people living in multi-occupied residential buildings. Without the clarification provided by the Bill, it will mean delaying implementation, possibly by a year, of a number of measures that will deliver the Grenfell inquiry recommendations.
As I said, I want as many Members as possible to have the opportunity to speak, so I will say no more for the moment until I wind up the debate, save for reiterating two points. First, these remaining amendments, although laudable in their intentions, would be unworkable and an inappropriate means to resolve a problem as highly complex as this. Secondly, the Government share the concerns of leaseholders on remediation costs, and have responded, as the House knows, with unprecedented levels of financial support to the tune of over £5 billion, with further funds from the developer tax, which the Treasury will begin to consult upon imminently, as well as the tall buildings levy. Developers themselves have begun to announce more significant remediation funds.
It is in everyone’s interests to ensure that we do not put at risk the progress that has been made by failing to get the Bill on the statute book by the end of this Session.
Madam Deputy Speaker (Dame Rosie Winterton)
Before I call the shadow Minister, may I reiterate that this is a very short debate with a long list of speakers, which is why I have put a three-minute limit on Back Benchers? Obviously, if colleagues can be shorter than that, we might actually get everybody in.
Sarah Jones (Croydon Central) (Lab)
The Sunday Times reported two days ago that the Bank of England is worried that
“Britain’s building safety scandal could cause a new financial crisis.”
The Bank is worried about the scandal’s impact on property values, as new data from the Leasehold Knowledge Partnership shows that fire-risk flats can sell for as little as one third of their purchase price. That is devastating and requires an immediate response from the Government.
The Government surely should not need reminding that a collapse in house prices triggered the global financial crisis in 2007, but it seems that they do, and it seems that they also need reminding of the misery that this crisis is causing hundreds of thousands of people. The safety scandal that has unravelled in the wake of inaction and indecision since the Grenfell Tower fire in 2017 has left up to 1.3 million flats unmortgageable and affects thousands of recently built houses. As many as 3 million people face a wait of up to a decade to sell or get a new mortgage because they cannot prove that their homes are safe, and we have leaseholders who face repair bills of up to £75,000 for flaws such as flammable cladding and balconies, and missing fire breaks.
We stand here today while thousands watch this debate and suffer, worrying about their futures, getting into debt and facing bankruptcy. We have to ask ourselves what the Government actually care about. They do not appear to care that the Bank of England thinks that we are heading for a financial crisis. They do not appear to care that thousands and thousands are living with anxiety, fear and debt. They do not seem to care that the vague and undefined loan scheme that they have hailed as the answer—despite having promised many times that leaseholders will not have to pay—will damage people’s property prices and will not actually be in place, as we hear today, for at least two years, leaving thousands to pay mounting waking watch bills and stuck in properties that they cannot sell.
Madam Deputy Speaker (Dame Rosie Winterton)
We now move to a three-minute time limit. I call Royston Smith.
Royston Smith (Southampton, Itchen) (Con)
The longer this debate drags on, the more damaging it becomes to the Government and the worse it becomes for innocent leaseholders. On Saturday evening, there was a fire in the tallest tower block in Southampton. That building has ACM cladding. As I understand it, it was alight. Hampshire fire and rescue responded quickly and dealt with the fire with its characteristic professionalism. Fortunately, the fire was not too serious, but it could have been. What would we be saying today if the worst had happened, I wonder?
I have said from the start that there are three dimensions to the fire safety scandal: the moral, the economic and the political. The moral obligation is obvious: this Government have a duty to hold those who are responsible to account and to defend the innocent leaseholders. There should be no disagreement on that issue.
Secondly, on the economic, the Government clearly think that my concerns about toxic debt, mass bankruptcy and repossession are wrong, but it is not just me who thinks it is a risk. The Bank of England is concerned, too—so concerned that it is assessing whether the fire safety scandal could cause a new financial crisis. With up to 1.3 million flats unmortgageable, perhaps the Government should be a little more concerned about the economic issue.
Finally, on the political, the Government believe in the home-owning democracy. It defines us. We have encouraged it. We have incentivised it. In fact, many people would not be in their own property without the support of Government. How do we look ourselves in the mirror when we have helped people to buy a home in a dangerous building that is worth less—sometimes much less—than they paid for it? The truth is that most MPs, including Conservative MPs, agree that the Government should resolve this issue. They believe, as I do, that it should not be the taxpayers who pay, despite what some in government have been saying. It should be those who are responsible—the manufacturers, the developers, the National House Building Council and development control. Some of those, of course, are local authorities. The Government can underwrite what is needed and then take it back from the industry. It may take years, but we will charge interest. It should be those who are responsible who pay.
We have been accused of wanting to kill the Fire Safety Bill. Nothing could be further from the truth. If the Government wanted the Bill to succeed as much as I do, they would do what was necessary to get the Bill through this place and the other place, but they have thus far chosen not to. After today, the Bill will go back to the Lords, and it will, in all likelihood, come back again. The amendment may come back with a different name and moved by someone else. If that happens, the Bill may well fall. That will not be my fault or our fault. That will be the Government’s fault.
Paul Blomfield (Sheffield Central) (Lab) [V]
I actually think that the Prime Minister framed this debate well, because he told the House on 3 February that
“no leaseholder should have to pay for the unaffordable costs of fixing safety defects that they did not cause and are no fault of their own.”—[Official Report, 3 February 2021; Vol. 688, c. 945.]
Those were his words. No ifs, no buts—it was an unequivocal pledge. Clearly, the Government’s measures so far fall well short of fulfilling it. Today we have the opportunity to address that, because the Lords amendments make good on that failure.
I have spoken previously in the House about leaseholders in the Metis building, Wicker Riverside, Daisy Spring Works and elsewhere in my constituency who face a range of issues with ACM and other cladding, compartmentation, flammable materials wrongly used and other fire safety products. They are trapped in homes that are unsafe and unsaleable, facing bills that will break them—some up to £50,000 each.
Let us remember that we are talking about young people who stretched their budgets to the limit to buy their first home; couples unable to move on when they have their first child; others who cannot take new jobs because they cannot sell; and older people who have sunk their life savings into their flat and have nowhere to turn. They are being put under unbearable pressure and unimaginable mental strain. People have told me they fear collecting their post in the morning because of the bills it might contain. It is simply unacceptable. Today we can end that misery.
Those who say that the costs should not fall on the public purse are right. The developers responsible should pay up, as well as those responsible for failings in the building regulation system. The only way that developers and others responsible will be held to account is if the Government own the problem, urgently undertake remediation and then use the full resources of the state to chase down those responsible. Leaseholders simply cannot do it on their own.
We have that responsibility because successive Governments oversaw a flawed system of building inspections, which signed off so many of these unsafe buildings. These leaseholders are victims of comprehensive regulatory failure. There is a grave injustice here that must be remedied, and the Government must face up to it. Those responsible for the failings should be responsible for putting them right, without any costs falling on leaseholders, either now or in the future through loans schemes.
Many leaseholders have stretched their finances to the limit to buy their home. Some have already been bankrupted. Others are facing ruin. We have to put a stop to it today, so let us put aside other differences and do the right thing by accepting the Lords amendments.
Madam Deputy Speaker (Dame Rosie Winterton)
I apologise to those who did not get in, but I do need to bring the Minister in.
Christopher Pincher
I thank all hon. and right hon. Members for their contributions today. The House will know that we have a duty to implement clear and effective legislation to support fire and building safety reform. We have an obligation in this place to make good law. While I entirely accept that the motivations of all those who have contributed today are not to damage the Fire Safety Bill, I have to tell them that the practical consequence of passing the Lords amendments would be to do that, because they are ineffective and defective. Let me explain why, before moving on to some of the other points that Members have made.
The amendments would prevent any type of remediation costs being passed on to leaseholders, even if the cost was very minor or if the leaseholder was responsible for damage, and that is not a proportionate response. There is no framework in the Lord Bishop of St Albans’ amendment to distinguish between different works. I think all Members would agree that the taxpayer should not be paying for minor costs, such as replacing a smoke alarm, and that if the leaseholder is responsible for breaking a smoke alarm, in all likelihood they should fix it. The amendment is also unclear on who should take responsibility for remediation works until a statutory funding scheme is in place to pay or direct the costs, and that would result in remediation being delayed, even in the case of minor defects, if routes of cost recovery are unclear.
Madam Deputy Speaker (Dame Rosie Winterton)
In order to observe social distancing, the Reasons Committee will meet in Committee Room 12.
Sir Peter Bottomley
On a point of order, Madam Deputy Speaker. It will be observed that the Government’s majority without the Scots Nats was halved in the last vote.
I would not ask for guidance from the Chair in the Commons about procedure in the Lords, but were the Lords to send back another amendment different from the one we have been considering, but trying to take up the points raised in this Chamber, am I right in saying that the Government could table their own amendment tomorrow, which would absorb the points made in this House, so that leaseholders are not penalised in the way they would be if the Bill went through as it is at the moment?
Madam Deputy Speaker
I thank the Father of the House for that point of order. Obviously it will be a matter for the Lords and the business managers to say how it will proceed from here.
National Security and Investment Bill
Baroness Winterton of Doncaster ExcerptsMonday 26th April 2021
(5 years ago)
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The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Paul Scully)
I beg to move, That this House agrees with Lords amendment 1.
Madam Deputy Speaker (Dame Rosie Winterton)
With this it will be convenient to consider:
Lords amendments 2 to 10.
Lords amendment 11, and Government motion to disagree.
Lords amendments 12 to 14.
Lords amendment 15, and Government motion to disagree.
Paul Scully
I am delighted that the Bill has returned to this House from the other place and I am delighted to be able to speak to it briefly today following the excellent handover from the Minister for Covid Vaccine Deployment, my hon. Friend the Member for Stratford-on-Avon (Nadhim Zahawi), who is successfully jabbing the nation as we speak. As we are at a late hour, I will not take up too much of the House’s time. I will just quickly summarise some of the changes to the Bill.
Lords amendments 1 to 10 and 12 to 14 were all tabled by my colleague in the other place, Lord Callanan. Lords amendments 1, 5, 8, 9 and 10 are what the Office of the Parliamentary Counsel would call minor and technical. Lords amendments 12, 13 and 14 pertain to the annual report as provided for by clause 61, and they reflect the decision to include additional reporting requirements that will provide further value for parliamentarians, businesses and investors. Lords amendments 2, 3, 4, 6 and 7 were made to the Bill in the spirit of a shared recognition that the requirements of the mandatory notification regime must be no more than necessary and proportionate for the protection of our national security, and that businesses and investments are not unduly burdened or stifled.
I wholeheartedly agree with the hon. Member for Newcastle upon Tyne Central (Chi Onwurah), who said on Report that we need
“robust powers to guard our national security and…change that backs our best small businesses and our capacity for innovation. Both of these goals are possible; indeed, they are mutually reinforcing.”—[Official Report, 20 January 2021; Vol. 687, c. 1000.]
That is why we have reflected carefully during the passage of the Bill on the 15% starting threshold for the mandatory regime. Lords amendment 2 removes acquisitions between 15% and 25% from constituting notifiable acquisitions under the mandatory regime. The House will recall, though, that the Bill provides the power for the Secretary of State to call in acquisitions of control across the economy. That power remains in place. Provisions in the Bill also ensure that the Secretary of State can amend the scope of the mandatory regime through secondary legislation, which could include the introduction of a 15% threshold if deemed appropriate, although we do not currently anticipate doing so.
I will turn to Amendments 11 and 15—
Madam Deputy Speaker (Dame Rosie Winterton)
In order to observe social distancing, the Reasons Committee will meet in Committee Room 12.
Covid-19: Hospitality Industry
Baroness Winterton of Doncaster Excerpts(5 years, 1 month ago)
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Selaine Saxby (North Devon) (Con)
I beg to move,
That this House has considered support for the hospitality industry throughout the covid-19 pandemic.
I thank the Backbench Business Committee for granting the debate, and the hon. Member for Brentford and Isleworth (Ruth Cadbury) for co-sponsoring it. Without a doubt, the hospitality sector has been one of the hardest hit throughout the ongoing covid-19 pandemic. It will have been shut for 10 out of 14 months when it eventually reopens. I do not believe that many of us foresaw that a year ago when we entered the first lockdown.
Support for the sector is extensive across the House, as shown by the number of contributors today. This debate is almost as booked up as I understand much of the hospitality sector itself is, when allowed to reopen. With that in mind, I will keep my remarks brief and will not take interventions, to enable as many colleagues as possible to speak.
In 2019, the hospitality sector contributed £59.3 billion in gross value added to the UK economy—around 3% of total UK economic output. At the start of last year, there were almost a quarter of a million hospitality businesses in the UK. The sector is vital to my North Devon constituency, which is proud to boast 105 pubs, with almost 10% of all businesses being in the hospitality sector.
The latest research by UKHospitality shows that the sector will have lost £86 billion in revenue by the end of March 2021, down 68% on pre-pandemic figures. It would have been more were it not for the unprecedented support packages given by the Chancellor, combined with the innovation shown by the sector in adapting their businesses to become covid compliant, increase outdoor capacity, and become take-outs. Our North Devon “Take Out to Help Out” competition saw thousands of residents vote to support their favourite take-out that has helped them through lockdown, and many congratulations to the winner, Nartnapa Thai Kitchen in Lynton.
The sector is also wracked with coronavirus-related debt—an estimated £2 billion in rent debt and £6 billion in loans and other finance—which makes the recovery that bit more challenging. As someone who ran a debt-financed small business for 15 years, I know the toll that that type of balance sheet can take on small and medium-sized businesses, of which the sector has so many, and the extra pressure that it puts on achieving profitability, particularly for seasonal businesses that are so dependent on their summers to see them through the lean winter months.
Even assuming that the road map stays on track, the sector cannot fully reopen until 21 June. Some 60% of pubs may not reopen on 12 April, despite the Government’s relaxing regulations to enable them to trade outdoors more easily. That will mean that the support will taper off before there is a full return to profitability, which is forecast to take at least six months after the restrictions are fully removed. In short, the Government support may be ending too early relative to their lockdown-lifting road map.
This summer will no doubt be busy for UK hospitality. We know that pubs are one of the top three reasons tourists visit the UK, so their survival is linked to our inbound tourism and its associated economic benefits. As we move into winter, wet-led pubs in particular are very dependent on their locals returning to the bar, which we know did not happen to historical levels last winter. Going back to the pub is a much easier ask than so many of the others that we have endured over the last year, but have our behaviours fundamentally changed during the pandemic? I hope not, as in many rural villages in constituencies such as mine the pub is the heart and soul of the village. We need to ensure that they can return to their former vibrancy at last orders.
Calls are increasing for a review of beer duty to target support into our pubs, bars, and clubs, which could be balanced with duty rises in the off-trade, given the ever growing debt that the country is in. The Chancellor has shown throughout this pandemic how quickly he and his colleagues in the Treasury can pivot and adapt to create new lifelines for businesses. While I pay tribute to his excellent work, perhaps the job is not yet done for hospitality.
I believe that a draught beer duty would be targeted, quickly actioned support and could play a crucial role in stopping so many of our vibrant pubs and other hospitality businesses from going under later in the year. Our pubs provide a safer environment for alcohol consumption than elsewhere, and we should do all we can to encourage people to return safely as soon as possible.
There are now 600,000 fewer jobs in the sector than before covid hit our shores, despite the unprecedented support of furlough. As hospitality businesses look to reopen, I hope that they will engage with the new Government packages to get people back into work, such as the kickstart scheme, and reach out to their local Jobcentre Plus. I know that in rural North Devon, hospitality businesses have not always engaged with their local jobcentre, with local ads or posters in the window historically sufficing, but a wide range of highly qualified people are now unfortunately looking for work and vacancies may well be filled more rapidly through this route than those pre-pandemic.
There are other areas in the broader hospitality sector whose pandemic has also been problematic, such as our contract caterers and wholesalers. These businesses were not required to close, but their trade has been limited mostly to the public sector, and they have unfortunately missed out on many grant payments. Breweries, especially local microbreweries such as GT Ales in Wrafton, despite reinventing themselves for home delivery, have had a challenging time.
The wedding industry and its supply chain, quite rightly, have been repeatedly highlighted as a sector in need, the important big day being intricately linked with hospitality. It is estimated that more than 200,000 weddings have been either cancelled or postponed since the first lockdown and that the sector to date has lost at least £6.4 billion, a figure that continues to rise. It is fair to say that the hospitality sector has received an unprecedented level of support across VAT reductions, business rate holidays, grants, loans, the job retention scheme, the freezing of alcohol rates and a wealth of other measures.
I have been in contact with my local hospitality sector and the national hospitality sector throughout this pandemic, and I very much hope that dialogue will continue as we emerge and build back better. The Chancellor said that he would do “whatever it takes” and indeed he has, but to prevent our vital and much loved hospitality sector suffering from long covid, they may just need a little more creative support in the coming months.
Madam Deputy Speaker (Dame Rosie Winterton)
We now have a three-minute time limit on Back-Bench speeches. That will be on the screen in the Chamber and on screens virtually.
Rough Sleeping
Baroness Winterton of Doncaster Excerpts(5 years, 2 months ago)
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Mr Toby Perkins (Chesterfield) (Lab) [V]
The Secretary of State was right to praise councils for their role. Here in Chesterfield, we have seen a big reduction in the amount of rough sleeping during the pandemic as the council has utilised the money provided by Government well. I agree with many of the issues that he raised about the causes of rough sleeping and homelessness, but I was alarmed that the role of welfare policy was missing from that list. I am concerned that in Chesterfield many of the rough sleepers I have spoken to tell me that, while they are aware that council flats are available for them, the amount of benefit they receive means that the rent would be unaffordable and they would end up being evicted again. I fear that once the eviction ban ends, we will see a big increase in the number of rough sleepers again. Can the Secretary of State say a little bit about the role of welfare policy and whether, by looking at issues such as the bedroom tax and the levels of rent being paid, we can take steps to ensure that this welcome progress is not lost when the eviction ban is ended?
Madam Deputy Speaker (Dame Rosie Winterton)
Order. We must have brief questions if I am to get everybody in, because we have two big debates and a Select Committee statement after this. So, brief questions and fairly succinct answers please.
Robert Jenrick
I shall be brief, Madam Deputy Speaker. The hon. Gentleman is right to raise some of the other causes of homelessness and rough sleeping. That is why we increased the local housing allowance to the 30th percentile, and why my right hon. Friend the Chancellor uplifted universal credit during the height of the pandemic, and of course we brought forward the furlough scheme and others to support vulnerable people over the course of the year.
Robert Jenrick
I will look into the case that the hon. Gentleman raises. I have seen concerning evidence about some providers of supported housing. That is why we are doing the work at the moment to see what the true situation is, whether a tighter regulatory environment is required, and, if so, how we deliver that. I would be happy to take his advice as to how we move forward. I take the opportunity to praise his council in Birmingham for its hard work. Birmingham is one of the shining examples of success over the course of the last year, and its rough sleeping count, announced today, of just 17 individuals for a large city—England’s largest local authority—is a huge achievement.
Madam Deputy Speaker (Dame Rosie Winterton)
I thank the Secretary of State for his statement, and am suspending the House for two minutes to allow for the necessary arrangements to be made for the next business.
Coronavirus: Supporting Businesses and Individuals
Baroness Winterton of Doncaster Excerpts(5 years, 2 months ago)
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Peter Grant (Glenrothes) (SNP) [V]
I am pleased to speak in this debate and to confirm that the Scottish National party will support the motion if it comes to a vote. I do not want to eat too much into the time available for the large number of Back Benchers who wish to speak, so I shall look in detail at only a small number of the items in the Labour motion. Given that so many of the main asks in the motion have been publicly supported by some highly influential Tory MPs, including a number of members of the Treasury Committee, I look forward to the Government’s supporting the motion if a vote is called later.
We support the call for business rates relief to be extended. Scotland’s Finance Secretary, Kate Forbes, made a similar request in a letter to the Chancellor on 27 January, ahead of the Scottish Budget. The SNP Scottish Government have led the way in reducing the rates bills of businesses in key sectors and of small businesses in particular. For example, the small business bonus scheme meant that last year 117,000 business properties in Scotland were paying no rates at all. Some 95% of all Scottish business properties have a lower rate poundage than they would have anywhere else in the United Kingdom. In addition, the businesses worst affected by covid restrictions—those in retail, tourism, hospitality and aviation—will pay no rates at all during the next financial year.
Given that the leader of the Tory party in Scotland and his colleagues demanded, ahead of the Scottish Budget, that
“retail, hospitality and leisure businesses”
be given
“certainty that they will not face full business rates in the next financial year”,
it is a wee bit disappointing that they do not seem so keen to speak up in this debate for hard-pressed businesses in other parts of this precious Union of theirs. I am sure they will do the decent thing and support the motion later.
We fully support the call to extend the 5% VAT rate, but I do not think it goes far enough, because if the sectors we are talking about currently have a 5% VAT rate, for all they know, their VAT bill could increase by 300% in just five weeks’ time. Nobody can run a business with that degree of uncertainty, so the Government need to make it clear tonight—not next week or in two or three weeks’ time—that that 5% VAT rate will be extended.
We need to start to take decisions now, based on the long-term interests of the economy, about the unprecedented levels of debt with which millions of businesses are saddled. They have had to borrow heavily, often through Government-backed schemes, to survive the first year of lockdown; they are not going to be in a position to repay those debts next year, or any time in the next two years.
In addition to supporting the call for small businesses to be allowed to defer the repayments on their loans, the SNP wants to go further. In the previous economic crisis, the Government spent huge amounts of our money on bailing out the self-same banks that were responsible for the problem; surely, it is not too much to ask that we should now give the same kind of support to the more than 5 million small businesses that have done nothing wrong and could play a vital part in our post-covid recovery. We therefore call on the Government to agree to write off the bounce back loan debts of small and medium-sized businesses and to look carefully at proposals from organisations such as TheCityUK that covid debts should be converted into equity or contingent tax liability, so that the public sector retains an interest in the business and the business is not forced to go to the wall because of a lack of cash.
My support, and that of my party, for the excluded 3 million is well documented, so I will not go into it in detail. All I will say is that, when I have raised the exclusion of those people with representatives of Her Majesty’s Revenue and Customs through the Public Accounts Committee, I have been given the excuse that it was not possible to set up a scheme quickly. It is now almost a year since the first lockdown was announced. The reason so many self-employed people and owners of small businesses are still excluded is nothing to do with the Government’s not being able to help them; it is to do with the Government’s not being prepared to help them. For the party that claims to be the party of small business, that is an absolute disgrace.
In the interests of brevity, I bring my remarks to a close with a final observation: the British Government are the only one of the four UK national Governments who have the full range of taxation and borrowing powers necessary to deliver on what the motion asks for. I cannot speak for the people of Wales or Northern Ireland, but I know that as far as my constituents and the people of Scotland are concerned, if the British Government are not prepared to use their powers to get Scotland’s businesses back on track and back into business, they should devolve those powers to a national Government who will.
Madam Deputy Speaker (Dame Rosie Winterton)
I remind hon. Members that there is now a three-minute time limit on Back-Bench speeches. When that limit is in effect, a countdown clock is visible on the screens of hon. Members participating virtually and on the screens in the Chamber. For those participating physically in the Chamber, the usual clock will operate.
Mohammad Yasin (Bedford) (Lab) [V]
The Government’s approach to business support through this latest lockdown does not match the scale of need. The hair and beauty industry has been severely impacted by the pandemic. Some parts of the industry were not able to open after the first lockdown, and businesses were operating at a significantly reduced capacity in order to adhere to covid-safe practices. Those that were eligible for grants and loans have found that they have not covered costs. Bills still need to be paid and, where rent is covered, energy bills, insurance, website costs, booking system costs, pay, national insurance and pension contributions are not.
The owner of Beauty of Bedford wrote to me, saying, “The hair and beauty industry contributes £9.2 billion annually to Britain’s economy, with a workforce of over 288,000. The beauty industry plays a big role in our high street.” To ensure the survival of SMEs, the Government must introduce targeted financial support packages for industries such as hair and beauty.
Business support should not be a postcode lottery, and the burden should not be placed on local authorities, whose pandemic costs have nowhere near been met by central Government. In Bedford and Kempston, for instance, businesses that do not have commercial premises have lost out on grants. That is hitting small businesses such as self-employed beauticians and others who have home offices or operate outside, such as self-employed taxi and private hire drivers. The self-employed—especially those who have yet to receive a penny of support from the Government—are facing ruin. Once upon a time, the Tories claimed to be the party of business, but they have left millions of self-employed people to rot. If these people are ignored again in the Budget, there is little hope left. Many of them cannot limp on until 12 April. Taxi drivers certainly cannot.
This week, taxi and private hire drivers in Bedford and Kempston had their licence fees waived by the council, but that is just a sticking plaster for most. It does not put money in their hands, which is what they need to look after their families. The additional restrictions grant system is just not working for them. Too many are falling through the gaps, and there is not a welfare safety net to catch them. What do the Government expect these people without income to do? They need help, and they need help now from this Government. The self-employed business owners I have spoken to are a resilient bunch. They have worked hard to get where they are. They really do not want to be reliant on the Government; they just need some support—
Madam Deputy Speaker (Dame Rosie Winterton)
Order. We have to move on because time is very tight.
Towns Fund
Baroness Winterton of Doncaster Excerpts(5 years, 2 months ago)
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Paul Bristow
As I understand it, 101 areas could benefit from that investment. If the Labour party had not ignored those towns and cities, perhaps it would still be representing them.
This fund has happened when the Government are tackling an unprecedented public health crisis. Covid-19 is the biggest challenge this country has faced since world war two. Some might have forgiven the Government if they had paused the initiative while they focused on the pandemic, but rather than doing that, they have powered ahead, giving hope and optimism to places such as Peterborough and helping communities to build back better as we overcome the pandemic.
This funding also includes the future high streets fund, which aims to renew town centres and high streets to make them more attractive places to visit, increasing footfall, driving growth and supporting local businesses. That is exactly what Lincoln Road, Westgate and other parts of Peterborough need. The pandemic has kept people away from the high street. People are eating takeaways and restaurant meals at home, and they are shopping online. My mobile phone boasts not just Deliveroo but, as a result of the pandemic and lockdown, Just Eat and Uber Eats. As convenient as that is, and as good as the hospitality in Peterborough has been at adapting, there is a real fear that hospitality and retail will suffer as we come out of the pandemic because people’s shopping and leisure habits have changed. That is why we need to think differently about town centres and high streets and make them a destination.
We need to create new, innovative high streets offering different things, such as pop-up shops, entertainment, interactive experiences, culture, leisure and mixed use including residential, as well as fun, safe and changing nightlife and hospitality. The towns fund is the catalyst for change, because private sector money and investment will follow, unlocking the potential of our towns and cities.
It is a message of hope, and it shows these communities that the Government and their local MPs have not forgotten them. Will the Minister remain committed to the plan? Will he confirm that there are chances for more towns and cities beyond the 101 already identified to submit bids for the future? Will he stress the importance of local MP engagement and ask all MPs from across the House to get on board with the towns fund and its potential to transform lives?
To conclude, I am all pumped up for Peterborough in 2021, ’22, ’23 and beyond. We have a new university coming, Fletton Quays and a new Government hub; the station quarter, a new cinema and Queensgate expansion is planned; and the Embankment will become an all-year-round destination—and now we have £23 million through the towns fund. We are making the decisions now that will guarantee our future health, wealth and happiness in the future. I am so excited that we are going to unleash our potential, but I am just as excited about this country’s potential, and as we level up and build back better from this pandemic, this is what the towns fund can deliver.
Madam Deputy Speaker (Dame Rosie Winterton)
The three-minute time limit will now come into force. I would remind hon. Members who are participating virtually that a countdown clock will be visible on their screens. I do advise them to stick to that because we have a lot of people who want to contribute. Obviously, in the Chamber, there is the usual clock for Members to look at.