Fire Safety Bill

Debate between Royston Smith and Hilary Benn

Consideration of Lords message
Tuesday 27th April 2021 Commons Chamber

[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.

[Hilary Benn (Leeds Central) (Lab) [V]]

It is a great pleasure to follow the hon. Member for Southampton, Itchen (Royston Smith). Here we are again debating a Lords amendment to protect leaseholders from having to pay to fix construction defects and unsafe cladding that never were and never should be their responsibility, and yet Ministers continue to resist, even though they have repeatedly said that leaseholders should not have to bear the cost. The trouble with this endless debate is that the clock is ticking and innocent leaseholders continue to face unreasonable costs as bills now start to arrive demanding sums of money that they simply do not possess. One constituent wrote to me last week enclosing a photograph of the bill he has just been sent, for £27,000. Another thinks that their bill will be £40,000. They obviously cannot remortgage their flats. So I ask the Minister: what are people in this situation meant to do? Sadly, we know that the Government do not have an answer to this, or indeed to the mental and emotional torment that these people are being put through. That is why this amendment is needed, and needed now.

Even taking account of the Government funding already announced, the Leasehold Knowledge Partnership estimates that about two thirds of the total cost will still fall on leaseholders: the very people whom the Government say should not pay. The Association of Residential Managing Agents estimates that the average remediation bill will be about £50,000 a flat and that insurance costs have risen by 400%. The Government estimate that the average cost of a waking watch outside London is over £2,100 a year for each flat. Leaseholders in shared ownership properties are in a particular bind. The building safety fund is moving too slowly. There is a shortage of companies who can, or will, do the work. There is total uncertainty as to what is meant to happen when we know that there are other works that have to be done to make buildings safe but for which the Government are not prepared, so far, to offer funding. I find it very hard to believe that Ministers do not understand that the remedy they have come forward with so far is patently insufficient, or that, without a comprehensive plan, leaseholders will, month by month and year by year, inevitably face financial collapse because of the huge burden of costs being put on their shoulders.

In conclusion, can I assure the Minister that the growing number of MPs who support the Lords amendment are not going anywhere, and that is because our constituents have nowhere else to go?

Fire Safety Bill

Debate between Royston Smith and Hilary Benn

Consideration of Lords amendments & Ping Pong & Ping Pong: House of Commons
Wednesday 24th February 2021 Commons Chamber

[Royston Smith]

What I will do is refer my hon. Friend to two things that he has said. First, he said, “We will carry the can”, and he has now said, “Who is going to be on the hook?” It sounds to me like he is very happy for leaseholders to carry the can and be on the hook, but not to find a solution. The Government’s problem is to find the solution. Our problem is to say that leaseholders should never have to pay. That is not an unreasonable position for us to take.

In trying to help, the Government have satisfied no one and they have upset just about everyone. The leaseholders are not responsible for this. They know they are not. We know they are not. The Government know they are not and, therefore, the Government’s position is now untenable.

In conclusion, I appeal to the Government and to all my colleagues to think very carefully before they abandon thousands of their constituents, because I know this: they will not forget and they will not forgive.

[Hilary Benn (Leeds Central) (Lab) [V]]

I am speaking in support of all the amendments before us that seek to protect leaseholders from having to pay. First, on the Minister’s argument that this will delay matters, I think that leaseholders are left perplexed by the Government’s position. One day Ministers say that the cost of fixing historical defects should not fall on leaseholders—the Minister said it again today—but on another day, they say that it should. The £50 a month towards the loans that the Government propose to give to buildings below 18 metres shows that that is their policy. I do not think that Ministers can criticise others who are trying to address the problem—I support the speeches we have heard from supporters of the amendment tabled by the hon. Member for Stevenage (Stephen McPartland)—because the Government are completely unclear about what their policy is on who should bear the cost. It is clear to me that it should be the people who built the blocks.

On the argument that leaseholders who are also part-owners of the freehold may walk away from their flats, that is a very fair point, but exactly the same argument applies to loads of leaseholders who will not be able to afford to meet these costs. What this tells us is that if we are to solve this we must deal with the whole problem, not just part of it.

Secondly, to argue that this is the wrong Bill misses the urgency of the situation. Leaseholders are facing bills that they cannot afford now—waking watch bills now, insurance bills now—and they still face the prospect of being asked to pay to make safe homes that they bought in good faith. That is why we should take the first available opportunity to protect them from this great injustice.