Sajid Javid
Main Page: Sajid Javid (Conservative - Bromsgrove)
Lucy Allan (Telford) (Con)
1. What progress his Department has made on enabling local authorities to retain 100% of business rates.
The Secretary of State for Communities and Local Government (Sajid Javid)
I should like to associate myself with your comments about the tragedy in Nice, Mr Speaker. I am sure that the thoughts and prayers of the whole House are with the victims and their families and friends. I also warmly welcome the establishment of the Cox Committee.
The full retention of business rates is a reform that councils have long campaigned for, and it will shape the role and purpose of local government for many decades to come. To deliver this commitment, we have already published an open consultation inviting councils, businesses and local people to have their say on how the system should operate.
Lucy Allan
I congratulate the Minister on his new appointment and I really look forward to working with him. Businesses want to move to Telford all the time, and for that reason the move to 100% business rate retention will mean welcome extra revenue for our council. Are there any plans to top-slice business rate income from councils with higher levels of business rate income to subsidise those with lower levels?
Sajid Javid
We want councils to take bold decisions and to use the benefits of this measure to boost local growth. Some redistribution will be necessary among authorities to ensure that no council loses out if it collects lower business rates, but I can reassure my hon. Friend—who already does a lot to boost business in her local area—that where that is done, it will keep the extra revenue.
Daniel Zeichner (Cambridge) (Lab)
For business rates to keep flowing, we need our top companies to keep prospering. The Secretary of State might be aware that ARM Technology, a major Cambridge company, has today been acquired by a major Japanese company. What conversations has he had with the former Business Secretary on ensuring that guarantees are maintained and that the jobs involved are retained in the UK?
Sajid Javid
I warmly welcome investment in our local communities—including in Cambridgeshire—wherever it comes from. I have not had a conversation with the Business Secretary, given that this news was announced only recently, but I know that the Chancellor has already issued a statement.
Mr Mark Prisk (Hertford and Stortford) (Con)
At present, the way in which business rates work imposes rates on empty properties. This is holding back many urban regeneration schemes. Will the new Secretary of State therefore reform the way in which those rules work before the whole scheme is transferred to local authorities? That would make a crucial difference to the modernisation of our housing estates in particular.
Sajid Javid
My hon. Friend raises an important point, and I know that he speaks from experience as a former housing Minister. I will certainly take a fresh look at that.
Andrew Gwynne (Denton and Reddish) (Lab)
I welcome the Secretary of State to his new post. May I politely say to him that not every area has the same ability to raise income from business rates or council tax, and it is often the poorest areas that are disadvantaged as a result of lower income generation from both sources? Will he look at the example of Tameside Metropolitan Borough, which would need an additional 16 Ikea stores just to break even on its business rate retention? Will he ensure that, when he looks at redistribution, he ends up with a fair settlement for areas such as Tameside?
Sajid Javid
The hon. Gentleman makes a valid point. The needs of each area are different, which is why at the same time as launching the consultation we launched a fair funding review to look at the issues that the hon. Gentleman raises.
Grahame M. Morris (Easington) (Lab)
May I also associate myself and Labour Front Benchers with your remarks about the atrocity in Nice, Mr Speaker?
I welcome the Secretary of State for Communities and Local Government and his team to their new positions—it is an important brief.
I point out to the Secretary of State that his Government have broken the post-war cross-party consensus on the equalisation of resource allocation. To echo the comments of my hon. Friend the Member for Denton and Reddish (Andrew Gwynne), does the Secretary of State realise that the most deprived communities with the greatest needs often have the lowest tax bases and the least ability to raise their own business rates?
Sajid Javid
I warmly welcome the hon. Gentleman’s words. As I have said, as we approach the policy of 100% business rates retention, there will of course be some redistribution to ensure that no council loses out if it has a low business rate funding base. The fair funding review will look at just that—fair funding—to ensure that every local area gets the funding it deserves.
Peter Aldous (Waveney) (Con)
2. What steps his Department is taking to regenerate the Great British coast.
The Secretary of State for Communities and Local Government (Sajid Javid)
The Government recognise that coastal communities face particular challenges but have huge economic potential. We have already invested £120 million in 211 coastal communities fund projects and have provided £10,000 to each of the 118 coastal community teams.
Peter Aldous
I welcome the Secretary of State to his place. While a great deal is taking place to regenerate coastal towns such as Lowestoft, there is a concern, as highlighted by the British Hospitality Association last week, that such initiatives are not co-ordinated. In the first full week of the new Government, I urge the Secretary of State to appoint a Minister to work across Departments to address that concern.
Sajid Javid
My hon. Friend works hard on his constituents’ behalf and has already helped to secure almost £2 million from the coastal communities fund for his area, but he makes an excellent point about cross-Government co-operation. I am pleased to announce that my hon. Friend the Member for Brigg and Goole (Andrew Percy) is the Minister who will take responsibility for this area, so we can all be assured that it is in very safe hands. I also want to thank my right hon. Friend the Member for Rayleigh and Wickford (Mr Francois) for all his excellent work.
Jim Shannon (Strangford) (DUP)
My constituency has many coastal destinations that would be attractive to anyone—not just those in my area. The Secretary of State will be aware of the cross-party, cross-regional group within Westminster that has been meeting regularly over the past few months. What discussions has he had with the Northern Ireland Assembly and with other regions to ensure that we can do this together?
Sajid Javid
If the hon. Gentleman will forgive me, at this point I have not had any discussions with my colleagues in Northern Ireland, but I can reassure him that they will be a priority, because it is good to talk and to co-ordinate even where policies are devolved.
Huw Merriman (Bexhill and Battle) (Con)
Commuters returning home to the glories of Milton Keynes can do so in just over 30 minutes. Travelling the same distance to Bexhill takes almost 2 hours. Is the Secretary of State willing to work with me and my neighbour, my right hon. Friend the Member for Hastings and Rye (Amber Rudd), to try to bring High Speed 1 trains down from Ashford to Hastings and Bexhill?
Sajid Javid
My hon. Friend makes a good point. I am more than happy to listen to his case and to work with the Secretary of State for Transport, because the issue will involve both Departments.
Kerry McCarthy (Bristol East) (Lab)
3. What assessment he has made of the potential merits of introducing legislative proposals to extend local authorities' duty of care in homelessness cases.
Mims Davies (Eastleigh) (Con)
4. What assessment he has made of the effectiveness of councils in delivering front-line services while limiting council tax levels.
The Secretary of State for Communities and Local Government (Sajid Javid)
We are putting more power in the hands of councils—through devolution deals and the retention of 100% of business rates—to ensure that councils can save money and maintain front-line services.
Mims Davies
I thank the Minister for his response. Proper local plans for good front-line planning departments are labour intensive and require meticulous work by local authority officers. Does the Minister agree that creating a poor plan, which then fails due to a lack of evidence, is an example of the shocking waste of hard-earned council taxpayers’ money?
Sajid Javid
I find myself agreeing with my hon. Friend. Planning should be at the heart of what local councils do. Local councils should be setting a vision for the area, and using that as a framework for development. It should be a top priority for all councils. Where it does not happen, we should expect them to resource it properly.
Mr Dennis Skinner (Bolsover) (Lab)
How on earth can local authorities manage to run their affairs in the way they used to, when this Government have cut £157 million from Derbyshire County Council? The same has applied to Labour-controlled Bolsover in a proportionate way. This Minister has a cheek to be talking about local government being able to spend money properly when his Government have been taking its money away.
Sajid Javid
The hon. Gentleman should know that funding is broadly flat in cash terms. More importantly, it is perfectly possible to find savings—local councils spend £1 in every £4 of public money—and at the same time to maintain and enhance local services.
Justin Tomlinson (North Swindon) (Con)
To deliver greater devolution responsibility for local authorities, what more can be done to attract the very best councillors, particularly those with busy and successful careers?
Sajid Javid
I know that many colleagues in the House have considerable experience in this area, and it is something that I shall be looking at, because I have found that in local authorities across the country that I have visited, there is a very mixed level of ability, let us say, and more needs to be done.
Grahame M. Morris (Easington) (Lab)
I hope the Secretary of State is aware of a recent report by the Association of Directors of Adult Social Services, which found that 93% of councils implemented the social care precept, but that raised only £380 million. Some £1.1 billion is needed to maintain social care at its current level. Social care is facing a perfect storm—there is growing demand from an ageing population, costs are rising, and budgets are being squeezed by central Government cuts—so what action is the Minister going to take to address the chronic underfunding of our social care?
Sajid Javid
It is a huge priority for this Government to make sure that adult social care is funded adequately. I do not accept that it is underfunded. The hon. Gentleman mentioned the precept. By the end of this Parliament it will raise an additional £2 billion a year. On top of that, the Government asked local councils how much they thought they would need by the end of this Parliament for adult social care. The number that came back was £2.9 billion; they got £3.5 billion.
Kirsten Oswald (East Renfrewshire) (SNP)
5. What assessment he has made of the potential effect of the UK leaving the EU on the level of funding available for social housing.
Jeff Smith (Manchester, Withington) (Lab)
10. What steps the Government plan to take to ensure that the devolution of business rates does not adversely affect deprived areas.
The Secretary of State for Communities and Local Government (Sajid Javid)
By the end of this Parliament, local government will retain 100% of taxes raised locally. There will be redistribution between councils, so that areas do not lose out on funding where they collect less in taxes.
Jeff Smith
I agree with the Secretary of State that, as he said earlier, no council should lose out, so there will need to be some system of top-ups and tariffs. We also need to use the opportunity to incentivise areas to promote growth. How will the Government ensure that this does not become just an administrative exercise that leads to another complicated local government funding formula by another name?
Sajid Javid
The hon. Gentleman’s constituency has already seen a 44% fall in the claimant count since 2010, and this is another way to try to boost local growth by having control over local taxes. He makes the important point that we should make sure that no council loses out, and that is why there will be this redistribution, but at the same time there will be more ways to promote local growth.
Michael Fabricant (Lichfield) (Con)
11. What steps he is taking to encourage devolution of powers to combined authorities; and if he will make a statement.
The Secretary of State for Communities and Local Government (Sajid Javid)
Our Cities and Local Government Devolution Act 2016 is delivering on our manifesto commitment to devolve powers and budgets to boost local growth in England. Ten devolution deals have been agreed already in local areas, covering some £7 billion of funds and some 16 million people in England.
Michael Fabricant
A few days before the referendum, we heard that 5,000 jobs would be lost from HSBC. Surprisingly, only three days ago Mr Nigel Hinshelwood, who is the chief executive of HSBC, announced 1,200 new jobs and said that no jobs would be lost because of the supreme efficiency of the west midlands area. What further developments are happening with regard to the west midlands combined authority, which has the potential to promote even more employment during Brexit?
Sajid Javid
I understand the vital importance of the west midlands and the financial sector in boosting growth in that area as a fellow west midlands MP. My hon. Friend will know that very recently, in my former role, I went there to open the midlands financial centre of excellence, which will further help to develop jobs in that area. The west midlands combined authority that he asks about is now formally constituted; that happened last month. It looks set to have its first set of elections in May next year.
Mrs Emma Lewell-Buck (South Shields) (Lab)
Over the next five years alone, the north-east was due to receive £726 million in EU funding, but the north-east devolution deal promises only £30 million a year for 30 years. Despite what the Secretary of State said just now, many devolution deals were already in a state of collapse before the EU referendum. With such high levels of uncertainty because of Brexit, is it not time he revisited all the devolution deals?
Sajid Javid
There is no need to reconsider any of the deals. These are good deals that have been reached by local leaders and central Government, and they will all, in turn, help to boost local growth. The hon. Lady mentions EU grants. As my hon. Friend the Minister for Housing and Planning has mentioned, it is important that we bring certainty, and that is what we will be working to do.
Martin Vickers (Cleethorpes) (Con)
19. One of the devolution deals that my right hon. Friend referred to a moment ago is the greater Lincolnshire deal, which is under consultation. May I urge my right hon. Friend, despite the comments of my hon. Friend the Member for Gainsborough (Sir Edward Leigh), to push ahead with that deal with, as the two councils in my constituency want, an elected mayor as part of it?
Sajid Javid
As my hon. Friend knows, it is not right for central Government to impose deals on any area. We certainly will not be doing that. These are deals because they require an agreement to be reached, but we will certainly be working with all areas that are interested, including Lincolnshire, to see what we can do.
Grahame M. Morris (Easington) (Lab)
The Secretary of State will be aware of the statement by the Local Government Association following the decision to leave the European Union. EU laws and regulations impact on many council services including waste, employment, health and safety, consumer protection, trading and environmental standards. My question on devolution is this: what steps is the Secretary of State taking to ensure that local government is consulted and represented when negotiations over the UK’s exit from the EU commence, and that powers from Brussels are devolved to a local level, not centralised in Whitehall?
Sajid Javid
It is very important that local government, whether through the LGA or otherwise, has a say in the process of leaving the EU. I think we all agree that it is important that that is done properly, and I will certainly be taking it up with my right hon. Friend the new Secretary of State for Exiting the European Union.
Lilian Greenwood (Nottingham South) (Lab)
13. Whether his Department plans to maintain infrastructure investment in deprived communities at the level currently provided by the EU.
Karl MᶜCartney (Lincoln) (Con)
T1. If he will make a statement on his departmental responsibilities.
The Secretary of State for Communities and Local Government (Sajid Javid)
I am delighted to have been appointed Secretary of State for Communities and Local Government. I cannot wait to get on with the job, and particularly to deliver the huge number of houses that are so vitally needed across the UK. It is a great Department that will affect many lives. I also thank the previous Secretary of State and his Ministers for doing such a fantastic job. They will be a hard act to follow.
Karl MᶜCartney
I welcome my broad-shouldered colleagues to their front-row positions. Given the Labour city council’s decision in Lincoln last Thursday deliberately to hide from my constituents and taxpayers, and the local media, the true cost of rebuilding the White bridge in Hartsholme park, what is my right hon. Friend’s view of councils who misuse the rules on exempt information because they do not want to be held accountable for their incompetence?
Sajid Javid
My hon. Friend is right to be concerned about that issue. All councils have an obligation to disclose information unless there are compelling reasons not to do so. If he feels that the rules have been improperly applied, I recommend that he complains to the City of Lincoln Council, and if that does not work to the Information Commissioner’s Office. If that does work, he should come to me.
Teresa Pearce (Erith and Thamesmead) (Lab)
I, too, welcome the new Ministers, and particularly the new Housing Minister. We were both elected in 2010, we are both London MPs, and we have probably both seen our postbag grow with the housing crisis in London.
Last week the National Audit Office reported on the Government’s progress in selling public land for 160,000 new homes. Will the Minister confirm that although the aim was to achieve £5 billion of land and property sales this Parliament, one year in, the Government have delivered only £72 million-worth of sales?
Mr Christopher Chope (Christchurch) (Con)
T4. In congratulating my right hon. Friend on his new position, may I seek his confirmation that he will support district councils that wish to retain their independence and status in two-tier local authorities?
Sajid Javid
We have no plans to change the tiering of authorities. My hon. Friend has my commitment that I will take that very seriously.
Alan Brown (Kilmarnock and Loudoun) (SNP)
T3. My local authority measures the delivery of new social housing by issue of completion certificates. The Secretary of State’s Department does it by site starts. Given that it is impossible for a site start to equate to a physical replacement, does the Secretary of State agree that the like-for-like replacement statistics to date are one big con?
Tristram Hunt (Stoke-on-Trent Central) (Lab)
T5. The Under-Secretary of State for Communities and Local Government, the hon. Member for Brigg and Goole (Andrew Percy), refused to confirm that the £157 million of EU structural funds for the potteries will be matched by the Government, so can I try his boss? Will the EU regeneration funds be matched by the Government, or have the Brexiters sold north Staffordshire down the river?
Sajid Javid
First, the hon. Gentleman should just accept that Brexit means Brexit. The focus of the whole House should be on how best to deliver that. On EU funds, that is a fair question and a number of hon. Members have asked about that today. We need to reduce uncertainty. Now that the new Government are in place, we will certainly be working on this as an absolute priority.
David T. C. Davies (Monmouth) (Con)
T9. The Minister will be aware that some people who provide social care are booked to do just a few minutes at each job and spend much of the day travelling at their own expense. This does not breach minimum wage legislation, but does the Minister agree that it is none the less wrong and that we should try to address it?
Sajid Javid
I absolutely agree with my hon. Friend. The law is very clear: workers who are travelling as part of their work should be paid at least the minimum wage. If that is not happening, it should be reported. If my hon. Friend is aware of abuses, he should certainly do that immediately.
Ann Clwyd (Cynon Valley) (Lab)
T10. By 2020, Wales is expected to have received £1.9 billion from the European Structural and Investment Fund. In the light of Brexit, will the Secretary of State ensure that Wales will receive this funding to 2020? Will he pledge that the Government will continue to match European funding after we leave the EU?
Sajid Javid
The right hon. Lady asks a very fair question. A number of firms and local regions have been asking just that. That is why, as I said earlier, this is an absolute priority now for the Government to make clear.
Mrs Theresa Villiers (Chipping Barnet) (Con)
I warmly congratulate the Secretary of State on his appointment. Will he guarantee to the House that during his tenure as Secretary of State there will be no dilution whatever to the vital protections of the green belt?
Sajid Javid
I thank my right hon. Friend for her warm words. The green belt is absolutely sacrosanct. We have made that clear: it was in the Conservative party manifesto and that will not change. The green belt remains special. Unless there are very exceptional circumstances, we should not be carrying out any development on it.
Stephen Timms (East Ham) (Lab)
The proposed expansion of London City airport, a wholly private £314 million investment, will increase airport capacity in London and create hundreds of new jobs. When will the Secretary of State announce his planning decision on the application?
Sajid Javid
I understand the right hon. Gentleman’s concerns. I have just started looking at this case, and he will understand that I cannot say too much publicly at this point, but it is being taken very seriously.
Several hon. Members rose—