Planning Policy
Sajid Javid Excerpts(6 years, 8 months ago)
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The Secretary of State for Housing, Communities and Local Government (Sajid Javid)
The Government have made it clear that we need to get our country building. At Budget 2017 we set out reforms to enable us to achieve 300,000 homes built each year by the middle of the next decade. The Housing White Paper, published in February last year, set out our plans. In September, we launched the planning for the right homes in the right places consultation, which introduced a standardised formula for calculating local housing need.
Today we are publishing our response and launching the next step; consultations on the revised national planning policy framework and the reform of developer contributions.
This planning reform package, which includes the revised draft national planning policy framework (NPPF) and reforms to developer contributions, are fundamental to delivering the homes we need and set out a comprehensive approach to ensure that we get the right homes built in the right places of the right quality.
The policy proposals only relate to England. The consultation will run from 5 March until 10 May 2018.
Copies of the consultation document will be placed in the House Library and are available on the Government’s website here:
https://www.gov.uk/government/collections/national-planning-policy-framework-and-developer-contribution-consultations
An oral statement will be delivered to both Houses later today.
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Grenfell Tower
Sajid Javid Excerpts(6 years, 8 months ago)
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The Secretary of State for Housing, Communities and Local Government (Sajid Javid)
In my update to the House on Grenfell Tower and building safety on 18 December 2017,1 referred to anxieties about the long-term future of the Grenfell Tower site from those who have been most affected by the terrible events of 14 June 2017.
I set out that the Minister for Grenfell Victims was working with the local community and council to agree a set of written principles that will guide the way forward on decision making for the future of the site. The bereaved, survivors and immediate North Kensington community will lead and be at the heart of the decision-making process.
I am today placing a copy of the agreed principles in the House Library so that our commitments are on the record. I am also placing in the Library a copy of a letter from myself and the Minister for Grenfell Victims to residents offering assurance about ongoing engagement regarding management of Grenfell Tower.
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Local Government Policy
Sajid Javid Excerpts(6 years, 9 months ago)
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The Secretary of State for Housing, Communities and Local Government (Sajid Javid)
On 7 November I told the House that I was minded to implement, subject to parliamentary approval, the locally-led proposal I had received for improving local government in Dorset, and I invited representations before I took my final decision.
Having carefully considered all the representations I have received and all the relevant information available to me, I am today announcing that I have decided to implement, subject to parliamentary approval, that locally-led proposal to replace the existing nine councils across Dorset—two small unitary councils of Bournemouth and Poole, and the two tier structure of Dorset County Council and the district councils of Christchurch, East Dorset, North Dorset, Purbeck, West Dorset, and Weymouth and Portland with two new councils.
These new councils are a single unitary council for the areas of Bournemouth, Poole and that part of the county of Dorset currently comprising the Borough of Christchurch, and a single unitary council for the rest of the current county area.
I am satisfied that these new councils are likely to improve local government and service delivery in their areas, generating savings, increasing financial resilience, facilitating a more strategic and holistic approach to planning and housing challenges, and sustaining good local services. I am also satisfied that across Dorset as a whole there is a good deal of local support for these new councils, and that the area of each council is a credible geography.
In my statement of 7 November I noted that the nine councils were already working together in joint committees on planning possible implementation of the proposal, and that further steps were needed to secure local consent. I am clear that further steps have been taken, and that the nine councils are continuing to work constructively together on planning implementation.
I now intend to prepare and lay before Parliament drafts of the necessary secondary legislation to give effect to my decision. My intention is that if Parliament approves this legislation the new councils will be established on 1 April 2019 with the first elections to the councils held on 2 May 2019.1 also now intend to make and lay before Parliament an order to delay for one year, as requested by the Borough Council, the May 2018 local elections in Weymouth and Portland so as to avoid members being elected for only one year if Parliament approves the legislation establishing the new councils.
Finally, in my 7 November statement I said that once I had made my final decision on the Dorset proposal, I would decide whether to implement, subject to parliamentary approval, Dorset councils’ proposal for a combined authority. As a first step I intend now to ask the leaders of the Dorset councils how they would like to proceed with their combined authority proposal in the light of my decision on the proposal.
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Housing Market
Sajid Javid Excerpts(6 years, 9 months ago)
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The Secretary of State for Housing, Communities and Local Government (Sajid Javid)
The Government believe that consumers should have swift, effective routes to complain and to access resolution when things go wrong with their home—whether they are a tenant, or a homeowner.
We are concerned that the current redress landscape is confusing and does not always support this. There are multiple redress providers, each operating different practices. Even this array of schemes does not provide for every eventuality. Some people have no option but to take a grievance through the courts.
On Sunday 18 February the Government launched a public consultation on strengthening redress in housing. The consultation is open to consumers, providers of housing services, and existing redress schemes, and asks how we can make the system simpler and more effective for consumers.
It asks about consumers’ experiences of redress, and how to improve “in-house” complaint processes to ensure that issues get resolved as quickly as possible.
It considers the practices that redress schemes should adopt in terms of timeliness, accessibility and transparency; and it considers the powers that schemes require to operate effectively.
It also considers gaps in redress, and how these could be filled. This includes consideration of how to implement our commitment to require that all private landlords join a redress scheme, as well as improving access to redress for buyers of new-build homes.
Finally, the consultation also seeks views on whether redress should be consolidated into a single housing ombudsman service and, if so, what form this might take.
The policy proposals primarily relate to England. The UK Government will be discussing these issues with devolved Administrations where existing legislation also has scope outside England.
The consultation will run for eight weeks and ends on 16 April 2018.
Copies of the consultation document will be placed in the House Library and are available on the Government’s website here: https://www.gov.uk/government/consultations/strenathening-consumer-redress-in-housing.
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Local Government Finance
Sajid Javid Excerpts(6 years, 9 months ago)
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The Secretary of State for Housing, Communities and Local Government (Sajid Javid)
I beg to move,
That the Report on Local Government Finance (England) 2018–19 (HC 791), which was laid before this House on 5 February, be approved.
Madam Deputy Speaker
With this we shall consider the following motions:
That the Report on Referendums Relating to Council Tax Increases (Principles) (England) 2018–19 (HC 792), which was laid before this House on 5 February, be approved.
That the Report on Referendums Relating to Council Tax Increases (Alternative Notional Amounts) (England) 2018–19 (HC 790), which was laid before this House on 5 February, be approved.
Sajid Javid
Every day, local government delivers vital services for the communities they serve—services that many of us take for granted, provided by dedicated, often unsung councillors and officers in places that we are all proud to call home. As such, as I have said before, local government is the frontline of our democracy and deserves the resources it needs to do its job and to deliver truly world-class services. To that end, late last year we published a provisional settlement for funding of local authorities in England. We invited people to give their views on this via a formal consultation to which we have received almost 160 responses.
My Ministers and I have engaged extensively with the sector, with individual councils, with Members of Parliament, and with the Local Government Association and other representative groups, ensuring that we were available to speak to anyone who wanted to raise particular issues or to ask any questions. I pay tribute to my hon. Friend the Member for Nuneaton (Mr Jones) for his sterling work in this area, not just over this period but for the past three years. I thank the Under-Secretary of State, my hon. Friend the Member for Richmond (Yorks) (Rishi Sunak), who recently joined the Department, for picking up the baton.
I am immensely grateful to everyone who has contributed to this consultation and our wider engagements with the sector.
Mrs Louise Ellman (Liverpool, Riverside) (Lab/Co-op)
After all the consultations and discussions that the Secretary of State has held, is he in a position to revise his view that Liverpool City Council should lose 68% of its budget and have to face a crisis in children’s social care as well as in adult social care?
Sajid Javid
The hon. Lady should be assured that Liverpool City Council, like almost every other council, is seeing an increase in its spending power from last year going into this year. She points out the challenges that the council has had in trying to bring about efficiencies. That, as I will come on to explain, has been a theme for many councils, but she should be assured that over the next two years there is a real increase in the core spending power of all councils, taken together.
Mr Jim Cunningham (Coventry South) (Lab)
Set against Coventry City Council’s needs, the so-called increase that the Secretary of State is talking about is delusional and derisory, to say the least. It does not meet the council’s needs.
Sajid Javid
Perhaps the hon. Gentleman can draw some comfort from my words in due course.
This work, with the feedback that we have received over the past few weeks, has informed the final settlement that we are unveiling today. It is part of a four-year settlement that gives English councils access to over £200 billion in funding in the five years to 2020. It gives them greater freedom and flexibility over the money that they raise, in recognition of the fact that no one knows their local areas, and the opportunities, challenges and pressures that they face, better than the councils who serve them. It strikes a balance between relieving growing pressure on local government while ensuring that hard-pressed taxpayers do not face ever-increasing bills.
Dr David Drew (Stroud) (Lab/Co-op)
Could the Secretary of State explain why Stroud District Council is the only council in Gloucestershire that has no revenue support grant promised under these proposals? Worse than that, the other three district councils in Gloucestershire get some money under the rural services delivery grant, yet Stroud gets nothing. Why does he think that is fair, and how can he defend it?
Sajid Javid
The hon. Gentleman, like many colleagues in the Chamber, is served both by district councils and county councils, all providing services for his constituents. The whole picture should be taken together. He will know that his county is seeing, for example, an increase of some £10.8 million to provide some very important services. Also importantly for Gloucestershire, including the district councils as much as the county council, the Gloucester business rates pool is part of the 100% pilot, which it estimates will lead to further additional funding this year of about £10 million. I hope that that helps to reassure him.
The settlement comes in the third year of a four-year deal that was accepted by 97% of councils in return for publishing efficiency plans. This gives the certainty and stability that they need to plan for the future. Many local authorities have done impressive work to deliver better value for money and are setting an example for other parts of the public sector. We are keen to continue to work with the sector to increase transparency and to share best practice so that councils can deliver increased efficiency over the coming years and transform services.
In all, the settlement answers calls from councils over many years for greater control over the money that they raise and the tools to make this money go further. This is the approach that we have taken across the board, listening to local authorities and responding to what we hear.
Mr Kevan Jones (North Durham) (Lab)
The Secretary of State talks about core funding. I think the average for county councils—[Interruption.] Mine is Durham, by the way, for the Parliamentary Private Secretary who is looking it up. [Laughter.] The average is a 2.1% increase, but for Durham it is only 1.4%. The reason for that—[Interruption.] Durham County Council—the PPS has got the wrong one! [Laughter.] The reason is the low council tax base, as 55% of properties in County Durham are in band A, which affects the council’s funds—County Durham, if the PPS has still not got it.
Sajid Javid
The hon. Gentleman is obviously familiar with the numbers for his own council, which is good to see, and his council is getting an increase. As I have said, and this will be a theme throughout the settlement, we have to always make sure that we are striking the right balance between providing increased resources and keeping any burden on taxpayers to an absolute minimum. I hope that the hon. Gentleman would support that.
We are creating a whole system of local government that is fit for the future. The current formula for financial allocations has served local areas well over the years.
Kevin Hollinrake (Thirsk and Malton) (Con)
North Yorkshire is doing its best to make ends meet despite a difficult and tight spending round. Can it be right that spending power in North Yorkshire is £770 a head, when in many other areas, especially in London, it is around £1,100 a head per year? Does my right hon. Friend agree that we need a fairer funding review that delivers fairness for North Yorkshire and other rural areas?
Sajid Javid
I very much agree with the point that my hon. Friend makes about looking at the fairness of the distribution, and I know that he has spoken powerfully about that in the past. We are looking at it, and I will come to it shortly in my speech.
A world of constant change, involving big shifts in demographics, lifestyles and technology, demands an updated and more responsive way of distributing funding. That means that we have to question the fairness of the current system, which is why I was pleased to launch a formal consultation on a review of councils’ relative needs and resources in December. This is not just a paper exercise. We have an unparalleled opportunity to be really bold and ambitious, and to consider with the sector where the most up-to-date evidence and data lead on drivers of local authority costs and to create a whole new system that gives councils the confidence to face the opportunities and challenges of the future.
John Redwood (Wokingham) (Con)
That is an excellent idea. Can the Secretary of State reassure the unitaries in my part of Berkshire that he does not envisage them going into negative grant, as it is called—in other words, getting no help at all?
Sajid Javid
I can give my right hon. Friend some reassurance on that matter. I will come to it in more detail in a moment, and I hope that he will be genuinely reassured.
Daniel Kawczynski (Shrewsbury and Atcham) (Con)
When the fairer funding formula comes into being, I hope that my right hon. Friend the Secretary of State will work with other Ministers to really understand the huge gulf that is starting to appear between city metropolitan areas and rural shire counties. We are becoming second-class citizens in rural areas because of the lack of funding in comparison to socialist metropolitan areas.
Sajid Javid
My hon. Friend makes a very important point about ensuring full co-operation throughout all Government Departments working jointly with our local authorities on fairness and distribution. One way we have tried to make the settlement fair is by recognising the special factors that affect rural areas, including Shropshire. My hon. Friend’s council in Shropshire will benefit from £6.6 million in rural services delivery grant.
Gareth Snell (Stoke-on-Trent Central) (Lab/Co-op)
The Conservative portfolio holder for finance on Stoke-on-Trent City Council says that it will lose £15 million of central Government grant over the next two years—that is Stoke-on-Trent with hyphens for the Secretary of State’s PPS, as he diligently searches his folder—but the Secretary of State will tell me that our revenue spending will be going up. Who is not telling me the truth? It cannot be the case that spending is going up when the portfolio holder tells me that the grant is being cut.
Madam Deputy Speaker (Mrs Eleanor Laing)
Order. Before the Secretary of State answers, I must say that interventions have to be short. A lot of people want to speak. What is unfair is if people make interventions and then leave, and other people have to sit for three hours waiting to speak. That is just not honourable. I appreciate that the hon. Gentleman is going to be here, but I just make the point about short interventions.
Sajid Javid
I can tell the hon. Gentleman that the core spending power for Stoke-on-Trent—with hyphens—is increasing by £3.5 million in the settlement. Indeed, the core spending power per dwelling for Stoke-on-Trent is higher than the average for the class. I hope he welcomes that.
The consultation on fairer funding closes on 12 March and I urge all those with a stake in the system to make their voices heard. We aim to introduce this new approach from 2020-21.
Mr Philip Dunne (Ludlow) (Con)
I applaud my right hon. Friend for launching the consultation on fairer funding. Will he be able to reassure the House that, in contrast to some of his predecessors who have said nice words about fairer funding but have not reflected the significant changes that were introduced under the previous Labour Administration, the consultation will inform the next spending review so we will actually to see it put into practice?
Sajid Javid
I can give my hon. Friend that reassurance and I take this opportunity to thank him for the strong representations he has made on behalf of Shropshire, which have fed into the settlement.
The business rates retention programme will also be introduced in 2020-21. It will give local authorities powerful incentives to grow their local economies. So far, this has been a resounding success. Under the current scheme, local authorities estimate that they will receive about £1.3 billion in business rates growth in 2017-18, a significant revenue stream on top of the core settlement funding that is set to continue into 2018-19.
James Duddridge (Rochford and Southend East) (Con)
I welcome the 10 county-wide pilots. Will the Secretary of State consider extending the pilots to include small unitaries such as Southend and Thurrock or areas of the county such as south Essex, if the whole Essex plan does not work?
Sajid Javid
There will be further pilots and I will come on to that in just a moment.
It is right that we will be going further. It is our aim for local authorities to retain 75% of business rates from 2020-21. This will be achieved by incorporating existing grants into business rates retention, including the revenue support grant and the public health grant. Local authorities will be able to retain 75% of the growth in their business rates from the new base lines in 2020-21, when the system is re-set.
The long-term plan is to allow local government to keep 100% of its business rates. With that in mind, I announced an expansion of the 100% retention pilots that proved so popular in December. As a result, we will be taking forward 10 new pilots covering 89 authorities, instead of the five we originally planned. A further pilot will begin in London in 2018-19, and existing devolution pilots will continue in 2018-19.
Mike Hill (Hartlepool) (Lab)
My local authority in Hartlepool finds it increasingly difficult to establish a business rates base but will participate in the programme. However, its departments face 40% cuts, and it has a £6 million shortfall. How fair is that?
Sajid Javid
For the hon. Gentleman’s local council in Hartlepool, there will be an increase in the core spending power of 1.9%, which is £1.5 million. He talks about fairness. It is worth pointing out that the core spending power per dwelling in his local authority is £1,931, which is significantly higher than the average for the class. I hope that that reassures him that his local authority is getting a significant amount of spending power, particularly from a per-dwelling point of view.
Wera Hobhouse (Bath) (LD)
I understand the thinking, which is that councils that say they are doing well in terms of business should be rewarded and retain their business rates. However, how will councils in deprived areas be compensated for the fact that they cannot do so well in terms of business? I was a councillor in a deprived local area—it happens to be the Secretary of State’s birthplace—and we tried for many years to encourage more business and enterprise, but it was incredibly difficult.
Sajid Javid
The hon. Lady’s local authority, Bath and North East Somerset, was part of a business rates pilot in 2017-18. As I said, we have extended that pilot, which gives the local authority the ability to take advantage of that and put in place incentives for local businesses to see growth. The council estimates that it can see millions of pounds of extra income from that, which I would have thought she would support for her local community.
The business rates pilots will help to test the system, to see how well it works in different areas and different circumstances. The purpose of the pilots was to have a broad distribution across north and south, urban and rural, and small and large. The pilot areas will keep 100% of the growth in their business rates if they expand their local economies, which is double what they can keep now. I can confirm that I will open a further bidding round for pilots in 2019-20 in due course. In expanding those pilots, we have responded to what councils have told us, and we are doing the same in other areas.
Rural councils express concern about the fairness of the current system, with the rural services delivery grant due to be reduced next year. In response, I can confirm today that we will increase that grant by £31 million in 2018-19. That is £16 million more than was proposed in the provisional settlement, taking the total figure to £81 million—the highest amount ever paid in rural grant, at a little over the sum paid in 2016-17.
We recognise that the so-called negative revenue support grant is causing concern. Changes in revenue support grant have led to a downward adjustment of some local authorities’ business rates top-up or tariff for 2019-20. We know we must address that problem, and we will consult formally on a fair and affordable set of options for doing so, with plenty of time to reflect on the findings before next year’s settlement.
Following discussions with the sector, we are continuing with the capital receipts flexibility programme for a further three years. That scheme gives local authorities continued freedom to use capital receipts from the sale of their own assets, to help fund the transformation of services and to release savings.
Sir Christopher Chope (Christchurch) (Con)
May I ask the Secretary of State about the negative revenue support grant? He has not actually said expressly that there will no longer be a negative revenue support grant. My local councils are saying that the Government cannot be trusted on this, and unless and until the Government commit themselves to saying there will not be a negative revenue support grant, they will have to budget on the basis that there may be one.
Sajid Javid
My hon. Friend makes a very good point. Such certainty is of course very important for many local authorities, including his own, and I hope I can now make the situation clearer. It is our intention to deal with the problem of the negative RSG, but we have yet to determine exactly the best way of doing so and providing support to the local authorities affected, and that is why it is right to consult on it. I absolutely commit to him that we will do so, and when we do—our plan is to do it in the spring—I hope that he and others will make an input to make sure that we get it right and really deal with this problem for his authority and many others.
Mr Clive Betts (Sheffield South East) (Lab)
Will the Secretary of State reflect on the issue of the transitional grant? It may be important to some authorities, but will he confirm the figures Sheffield City Council has given me showing that the authorities that have had the biggest cuts to their core spending—cuts of over 30%—have between them benefited in this financial year to the tune of £10,000? That is the total figure for the authorities that have had the biggest cuts in grant over the past few years.
Sajid Javid
My remarks a moment ago were about not the transitional grant but the problem of the negative RSG. I will come on to other grants in a moment.
We have responded to concerns about proposed changes to the new homes bonus. By the end of 2018-19, we will have paid out £7 billion under the scheme to reward the building of some 1.4 million homes, including £947.5 million for the year 2018-19. When we consulted last year on proposals to link NHB payments to the number of successful planning appeals, it was clear that the sector wanted continuity and certainty. That is what we have delivered, with no new changes to the NHB this year and the baseline being maintained at 0.4%. Furthermore, as we set out in our housing White Paper, we are enabling local authorities to increase planning fees by 20% where they commit to investing the extra income in their planning services. That should provide a welcome boost to local planning authorities and address concerns about under-resourcing.
The final settlement includes small adjustments to top-ups and tariffs for authorities based on corrected Valuation Office Agency data. I know that my opposite number—that is, the opposite number I have today, the hon. Member for Denton and Reddish (Andrew Gwynne)—has been trying to make some mischief on this point, so let me spell it out very clearly for him. [Interruption.] Well, he raised a point of order on this issue yesterday. I think it is worth spelling it out clearly, because perhaps he has not understood what we have said.
The provisional settlement was based on the VOA’s official statistics, the best published data available at the time. Just ahead of the provisional settlement, officials were notified of an error in the VOA data. Ministers were not told about this until 16 January, as officials did not know what, if any, changes might have to be made to the tariffs and top-ups for individual authorities. The hon. Gentleman will know that the moment corrected statistics were published by the VOA, revised figures were provided to local authorities to enable them to finalise their budgets. He should also know that part of the reason for the publication of a provisional settlement—the clue is in the name—is to test the numbers and to make adjustments. I respectfully suggest to the hon. Gentleman that he spend more time dealing with the substance of today’s settlement and a little less on childish antics.
Andrew Gwynne (Denton and Reddish) (Lab)
I am grateful to the Secretary of State for clarifying the position. Of course, the point is this: who runs the Department? The Secretary of State has some responsibility. If his departmental officials knew that the data were incorrect, was it not incumbent on him, as Secretary of State, to have known that and made it clear to the House when he presented the provisional settlement that the data were likely to be changed? The fact is that he came to the House on 19 December and gave incorrect information when answering right hon. and hon. Members’ questions. It is shameful.
Sajid Javid
As usual, the hon. Gentleman stands at the Dispatch Box and raises his voice, acting like a child again. He has nothing whatsoever to say on the substance of the issue.
Councils have a crucial role to play in helping to deliver the homes that our country desperately needs. However, we all know that we cannot achieve that without having the right infrastructure in place: the schools, GP surgeries, transport links and other essentials. The private sector can go only some way in delivering that infrastructure. It is clear that we must raise our game to match our ambitions, which is why last July we set up the housing infrastructure fund to support local authorities to provide infrastructure and build more homes. In the end, we received a staggering 430 bids, worth almost £14 billion, to deliver 1.5 million homes, demonstrating the incredible ambition that is out there to tackle the housing crisis—an ambition that we are keen to get behind and back fully. Hence our move to more than double the housing infrastructure fund in the autumn Budget, dedicating an additional £2.7 billion to it, bringing the total funding to £5 billion.
Last week I was delighted to announce the first funding allocation: £866 million for 133 successful projects, involving 110 councils, that will help unlock up to 200,000 homes. Those projects promise to deliver a strong pipeline of homes at pace and scale, and represent another important step towards meeting one of the defining challenges of our time.
I will now turn to another major challenge: social care. I am under no illusions about the pressures that councils face in addressing one of the biggest challenges we face as a country, which is why we have put billions of pounds of extra funding into the sector over the past 12 months. I can today announce a further £150 million for an adult social care support grant in 2018-19. This will be allocated according to relative needs and will help councils to build on their work and support sustainable local care. It comes on top of the additional £2 billion for adult social care over the next three years announced at the spring Budget. With the freedom to raise more money more quickly through the use of the social care precept, which I announced this time last year, we have given councils access to £9.4 billion more dedicated funding for adult social care over three years.
Diana Johnson (Kingston upon Hull North) (Lab)
The problem with putting up council tax in order to pay for social care is that some of the most disadvantaged areas have a very low council tax base. In Hull, for example, what we can raise through that increase in the precept is very small compared with the needs we have. Are we not moving back to the days when the poor were keeping the poorest, about which George Lansbury protested in Poplar nearly 100 years ago, by putting the onus back on local authorities in very disadvantaged areas?
Sajid Javid
The hon. Lady suggests that the only way councils can access funds to provide social care is through council tax, which is absolutely not the case, as she knows. It is an important way to raise some of the funding, but an increasing amount is coming from central resources. For example, the £2 billion that was allocated in the spring Budget takes into account the ability of local authorities, including the hon. Lady’s, to raise money locally. It is right that we have that balanced approach, but I know that there is more to do on adult social care, and that funding alone will not help to fix the challenges. This long-term challenge requires a long-term systemic change. The publication of a Green Paper this summer on future challenges in adult social care will help set us on a path to secure that.
Finally, we are responding to calls for more flexibility over setting council tax. Local authorities will be able to increase their core council tax requirement by an additional 1% without a local referendum, bringing the core principle in line with inflation. This will enable them to raise revenue and meet growing demand for their services while keeping taxes low. Having done away with Whitehall capping, we have enshrined these checks and balances into the system. Under the Localism Act 2011, local government can increase council tax as it wishes, but excessive rises need to be approved by local residents in a referendum.
In addition, directly elected Mayors will decide the required level of precept by agreement with their combined authorities, and it will be easier for police and crime commissioners to meet local demand pressure under measures that I have agreed with the Home Secretary. They will allow for a £12 council tax flexibility for police services, raising an additional £130 million next year. We will, however, defer the setting of referendum principles for town and parish councils for three years, and we will keep that under review. In all, I want to see the sector doing everything possible to limit council tax increases and show restraint. I am keen to ensure that these freedoms are not abused, and I am sure voters are too.
My Department’s name recently changed to the Ministry of Housing, Communities and Local Government. That underlines our focus on fixing our broken housing market and getting Britain building, but I remain absolutely committed to the community and local government elements of our work. They are the foundations on which everything else stands. It is not enough to build more homes; we need to build better and stronger communities. Councils acting truly as local government and not local administration will help us to achieve that.
Tom Pursglove (Corby) (Con)
On the point about local government, will the Secretary of State confirm that this settlement will see real-terms increases for local government over the two-year period?
Sajid Javid
I can confirm that there will be a real-terms increase in resources for local government over a two-year period, rising from £44.3 billion in 2017-18 to £45.6 billion in 2019-20. I should clarify, however, that due to the additional £166 million that was announced this year, that is a real-terms increase over the two-year period rather than year on year.
We have listened to local authorities, and through this settlement we have delivered what they asked for, while at the same time keeping spending in check. We have delivered a real-terms increase in resources over the next two years, more freedoms and fairness, and greater stability and certainty for local authorities to plan and drive value for money. They, and the communities they serve, deserve no less. I commend the settlement to the House.
Madam Deputy Speaker (Mrs Eleanor Laing)
Before I call the Opposition spokesman, I warn hon. Members that, as is obvious, a great many people wish to speak this afternoon and there is limited time, so there will be an immediate time limit on Back-Bench speeches of seven minutes. Of course, that does not apply to Mr Jim McMahon.
Local Government Finance
Sajid Javid Excerpts(6 years, 9 months ago)
Written StatementsRead Full debate Read Hansard Text Read Debate Ministerial Extracts
The Secretary of State for Housing, Communities and Local Government (Sajid Javid)
Yesterday, I laid before the House, the “Report on Local Government Finance (England) 2018-19”, which represents the annual local government finance settlement for local authorities in England.
I would like to thank all colleagues in the House, council leaders and officers, who contributed to the consultation after the provisional settlement was published before Christmas.
My Ministers and I have engaged extensively with the sector, including offering a teleconference to all local authorities, and holding meetings with representative groups including the Local Government Association and with councils and MPs. Representations from almost 160 organisations or individuals have been carefully considered before finalising the settlement.
This settlement is the third year of a four-year offer which was accepted by 97% of councils in return for publishing efficiency plans. This settlement sees two years of real-terms increases in available resources to local government: £44.3 billion in 2017-18 to £45.6 billion in 2019-20.
The current business rates retention scheme is yielding strong results. Local authorities estimate that in 2017-18 they will keep around £1.3 billion in business rates growth, which we expect will be maintained into 2018-19 and 2019-20. This is on top of the core settlement funding I am announcing today.
I commend local authorities for their work in securing efficiency savings supported by the long-term certainty of the multi-year settlement. Councils continue to seek to maximise public value for every pound invested in public services. Of course, there is further for all councils to go. To help this, I am extending the capital receipts flexibility programme for a further three years. This scheme gives local authorities the freedom to use capital receipts from the sale of their own assets to support transformation and unlock efficiency savings. We will also continue to work with the sector to help them increase transparency and share best practice supporting greater progress in delivering increased efficiency over the coming year. I expect this to have a tangible impact on the steps councils take to promote efficiency by 2019-20.
Social Care
I recognise the need to prioritise spending on social care services that councils provide to our elderly and vulnerable citizens. This is why we announced an additional £2 billion at spring Budget 2017 for adult social care over the three years from 2017-18. This year we have seen how this money has enabled councils to increase provider fees, provide for more care packages and reduce delayed transfer of care.
And, having listening to representations since the provisional settlement, I am today announcing a further £150 million in 2018-19 for an adult social care support grant. This will be taken from anticipated underspend in existing departmental budgets, and will not affect existing revenue commitments made to local government. This will be allocated according to relative needs and we will expect to see councils use it to build on their progress so far in supporting sustainable local care markets.
With this, and other measures, the Government have given councils access to £9.4 billion dedicated funding for adult social care over three years.
This is a long-term challenge that requires a sustainable settlement for the future. The publication of a Green Paper this summer setting out our proposals for reform sets us on the path to securing a resilient and sustainable system.
In children’s social care too, it is important to understand cost drivers as well as service quality and efficiency in a highly complex and critical service area. The Government have invested £200 million since 2014 in the innovation programme and partners in practice programme, as well as £920 million in the troubled families programme, to help the children’s social care sector innovate and re-design service delivery to achieve higher quality, improve family outcomes and secure better value for money.
I also recognise the good work that local authorities do in caring for unaccompanied asylum seeking children. I have therefore made £19 million available to local authorities in 2017-18 from within existing budgets, including the controlling migration fund, to develop the skills and capacity to be able to support these very vulnerable children.
Protecting residents from excessive council tax rises
Under the Localism Act 2011 and as re-affirmed in the Government’s 2017 manifesto, councils can set whatever council tax rates they wish, but they need the direct consent of local people if they wish to impose an excessive rise. This year, that referendum threshold is set in line with inflation at 3%. In addition, local authorities with responsibility for social care may levy a precept to spend exclusively on adult social care. As announced last year, this precept equates to up to 6% over three years, from 2017-18 to 2019-20, with a maximum increase of 3% in the first two years and 2% in the final year. This settlement strikes a balance on council tax between the need to relieve pressure on local services, including social care, while also recognising that many households face their own pressures.
New homes bonus
Local authorities are instrumental in ensuring the building of homes this country needs. By the end of 2018-19, we will have allocated £7 billion in new homes bonus payments to reward the building of 1,400,000 homes since the scheme was introduced in 2011. We recognise the need for continuity and certainty on the new homes bonus, and therefore for the year ahead there will be no new changes to the way the new homes bonus works. The new homes bonus baseline will be maintained at 0.4% and £947.5 million in new homes bonus payments will be paid in 2018-19.
Rural funding
I am committed to ensuring the needs of rural areas are met and recognise the particular costs of providing services in sparse rural areas. So in 2018-19, in response to representations made since the provisional settlement, I will increase the rural services delivery grant by £31 million —£16 million more than proposed in the provisional settlement. This will take the total to £81 million, a little over the 2016-17 level and the highest it has ever been.
2019-20 and later years
To meet the challenges of the future we need an updated and more responsive distribution methodology. We have published a formal consultation on a review of relative needs and resources and aim to implement its findings in 2020-21. There have been widespread calls for a thorough, evidence-based review, and we will deliver this. The review will examine the cost of delivering services across the country, including rural areas, and will consider which factors should be taken into account when considering a local authority’s relative resources.
Following the delay to the implementation of 100% business rates retention and reforms to the local government finance system, I acknowledge concerns around “negative RSG”. We will be looking at fair and affordable options that will address the problem of negative RSG that occurs in 2019- 20, and will formally consult on proposals ahead of next year’s settlement.
We will also work towards implementing the next phase of our business rates retention reforms in 2020-21 to support the long held objective for local authorities of greater self-sufficiency and financial sustainability. This will give local councils the levers and incentives they need to grow their local economies. Local authorities will be able to keep more business rates, to the value of the revenue support grant, the Greater London Authority transport grant, the rural services delivery grant and the public health grant. Overall, this is equivalent to 75% retention at 2019-20 levels. Local authorities will then be able to keep the equivalent share of business rates growth on their baseline levels from 2020-21, when the system is reset. The Government intend to use the intervening period to develop a set of measures that support a smooth transition of funding for public health services from a grant to retained business rates.
Ahead of this, we will continue to test out aspects of the future business rates retention system in a broad range of authorities right across the country. And, to help us take forward our continued long-term plan to let local government keep 100% of its business rates, in 2018-19 we will continue to pilot 100% business rates retention in Greater Manchester, Liverpool city region, the west midlands, west of England and Cornwall, introduce a London pilot, and will take forward 10 further 100% business rates retention pilots. These are Berkshire, Derbyshire, Devon, Gloucestershire, Kent and Medway, Leeds city region, Lincolnshire, Solent authorities, Suffolk and Surrey. The 10 pilot areas will cover 89 local authorities in total.
I recognise that there is disappointment among those areas that were unsuccessful in their pilot applications this year and I am pleased to confirm that I intend to open a further bidding round for pilots in 2019-20. Further information on this will be published in due course.
Conclusion
Local government delivers vital services at the heart of the communities they serve. This settlement strikes a balance between relieving growing pressure on local government while ensuring that hard-pressed taxpayers do not face excessive bills. We have listened to representations made and delivered on these requests: two years of real-terms increases in resources, more freedom and fairness, and greater certainty to plan and secure value for money.
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Upwards Extensions: New Homes
Sajid Javid Excerpts(6 years, 9 months ago)
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The Secretary of State for Housing, Communities and Local Government (Sajid Javid)
The Government are committed to ensuring the planning system supports the delivery of more homes where they are needed. The opportunity for new homes is not always an empty plot, or the redevelopment of a derelict site. As set out in the White Paper, “Fixing our broken housing market”, it is important that development uses the space that is available efficiently, and avoids building at low densities especially in areas of high demand such as London. The Government recognise that one of the ways to achieve this is to build up rather than build out, using the space above existing buildings to create new homes.
Alongside the White Paper, the Government confirmed their intention to bring forward policy changes to support this objective, which this written ministerial statement sets out.
Planning policies and decisions should respond positively to suitable opportunities to use the airspace above existing residential and commercial premises for new homes. They should allow residential and commercial premises to extend upwards, where such extensions would be consistent with the prevailing height and form of neighbouring properties and the overall street scene, are well-designed—including complying with any local design policies and standards—respect the privacy of neighbours and can maintain safe access and egress for occupiers.
Policies and decisions on upwards extensions should take into account national and local policies, as well as relevant legal requirements, including relating to the conservation of heritage assets such as listed buildings and conservation areas. This will ensure councils can continue to protect valued areas of open space and the character of residential neighbourhoods, and stop unwanted garden grabbing.
The Government will be consulting on changes to the national planning policy framework, including changes to incorporate building up to ensure effective use of land for current and future homeowners. Appropriate guidance will be produced in due course.
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Housing Infrastructure Fund
Sajid Javid Excerpts(6 years, 9 months ago)
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The Secretary of State for Housing, Communities and Local Government (Sajid Javid)
Today the Government announce that we will invest £866 million to help unlock up to 200,000 new homes through 133 marginal viability fund projects, within the housing infrastructure fund.
The Government have set out a plan that puts us on track to increase housing supply to 300,000 homes a year and this first wave of funding from the £5 billion housing infrastructure fund is part of a comprehensive programme to fix the broken housing market.
This investment will fund key local infrastructure projects including new roads, cycle paths, flood defences and land remediation work where it is needed for new housing to be built. Without this financial support, these projects would struggle to go ahead or take years for work to begin, delaying the homes these communities need.
The marginal viability fund was available to all single and lower-tier local authorities in England to bid into.
We received 430 bids from local authorities, worth almost £14 billion in total. This shows how much local authorities are willing to step up to fix the broken housing market, and we are committed to supporting this ambition. Bids went through a rigorous assessment process and were assessed on the basis of their strategic approach, value for money and the ability of the projects to be delivered. We are putting infrastructure at the heart of housing delivery and are committed to bringing communities, local authorities and the private sector together to solve this problem.
The second component of the housing infrastructure fund—the forward fund—is available to the uppermost tier of local authorities in England to bid into, and aims to pump prime a small number of strategic and high-impact infrastructure projects. Expressions of interest for forward funding are being assessed and the best proposals will be shortlisted to go through to co-development shortly. Local authorities will submit their final business cases with successful bids announced from autumn 2018 onwards.
The full list of successful marginal viability fund projects, and the indicative amount we are awarding (subject to final financial clarifications) can be found on the Ministry of Housing, Communities and Local Government website at:
https://www.gov.uk/government/publications/housing-infrastructure-fund
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Oral Answers to Questions
Sajid Javid Excerpts(6 years, 10 months ago)
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Laura Pidcock (North West Durham) (Lab)
The Secretary of State for Housing, Communities and Local Government (Sajid Javid)
The Government will consider providing financial flexibilities for local authorities to undertake essential fire safety work to make buildings safe. We have not turned down any requests for such flexibilities. Separately, we have provided funding to local authorities for the collection of data on private buildings.
Laura Pidcock
Before Christmas, the former Housing Minister, the hon. Member for Reading West (Alok Sharma), revealed that 36 local authorities had contacted the Department about work to secure fire safety in tower blocks, but none of them have received any financial help so far—why not?
Sajid Javid
Let me update the hon. Lady. My records show that the number of authorities is still 36. We have requested further information from 10 of them, and four have provided it. As I said a moment ago, however, we are ready to provide any local authority with whatever financial flexibilities are necessary to ensure that all essential fire safety work is done.
Andy Slaughter (Hammersmith) (Lab)
How are local authorities or other landlords to know what steps to take to ensure that there is adequate fire protection when the relevant building regulations are 11 years old and no review of them has yet commenced?
Sajid Javid
Perhaps the hon. Gentleman was not in Parliament last year when the Home Secretary and I asked for an independent review of all building regulations by Dame Judith Hackitt. Just a few weeks ago, in the House, I presented the findings of her interim report, the recommendations of which we accepted in full.
James Gray (North Wiltshire) (Con)
Grenfell Tower is seared in all our memories, and of course we must do whatever we can. I very much agree with what was said by the hon. Member for North West Durham (Laura Pidcock)—I hope I can call her my hon. Friend—but am I not right in thinking that if a local authority runs out of funds for fire protection measures, a trigger mechanism allows them to spend more, beyond their normal restraints?
Sajid Javid
First, I can tell my hon. Friend that I am not sure that the hon. Member for North West Durham (Laura Pidcock) is his hon. Friend. As for his question, mechanisms do exist, and we have gone further by saying to local authorities that if there are certain flexibilities that they need, they should contact us, and those flexibilities will be provided.
John Healey (Wentworth and Dearne) (Lab)
My hon. Friends the Members for Denton and Reddish (Andrew Gwynne), for Rochdale (Tony Lloyd) and for Oldham West and Royton (Jim McMahon) are absent to pay tribute and respect to Kieran Quinn, whose funeral is taking place this afternoon. He was the leader of Tameside Council, which was council of the year in 2016. Our thoughts and condolences are with his family and friends today.
I welcome the new ministerial faces to the Department with a new name, but what the country really needs are new policies to fix the growing housing crisis. More than seven months on from the Grenfell Tower tragedy, how many tower blocks with the same dangerous cladding have had that cladding taken down and replaced?
Sajid Javid
I join the right hon. Gentleman in extending my condolences to Kieran Quinn’s family and friends on what will certainly be a very difficult day for all of them.
According to my figures, which I think are accurate up to 10 January, 312 buildings have been tested, of which 299 have not passed the test. The cladding on a number of buildings has started to come down and is slowly being replaced. We are anxious to ensure that there is enough capacity in the industry to meet the extra demand that it is now experiencing, and we are working on that with both the industry and my right hon. Friend the Business Secretary.
John Healey
I wonder whether the Secretary of State has read the update that his Department issued this morning. The number of tower blocks with the same dangerous flammable cladding that has been taken down and replaced—more than seven months on from Grenfell Tower—is three. How has it come to this? Seven months on from Grenfell, only one in four families who are Grenfell survivors has a new permanent home. The Government still cannot confirm how many other tower blocks across the country are unsafe. Ministers still refuse to help to fund essential fire safety work when they know that blocks are dangerous. The Secretary of State is sitting back and letting individual flat owners, rather than landlords and developers, pick up the full costs for private tower blocks. The Secretary of State must know that that is not good enough. What new action will he take to sort out these serious problems?
Sajid Javid
The right hon. Gentleman will know, because he shares this view, that the No. 1 priority for buildings safety following the Grenfell Tower tragedy is to ensure that anyone living in any tower that might have similar cladding feels completely safe and that those buildings are properly tested. If anything is found before that cladding can be taken down and replaced, which will of course take time, we must ensure that adequate measures such as 24/7 fire wardens are put in place, on the advice of the local fire and rescue service. That is exactly what has been done in every single case. The right hon. Gentleman also asked about private sector tower blocks and the cost of any remedial work that is needed. I have made it clear in the House and since our last oral questions that, just as social landlords are picking up the tab for those changes, and whatever the legal case might be in the event of a private relationship, the moral case is clear: the tab should be picked up by the freeholders of those properties.
Several hon. Members rose—
Michael Tomlinson (Mid Dorset and North Poole) (Con)
The Secretary of State for Housing, Communities and Local Government (Sajid Javid)
In the recent Budget, we announced £28 million to pilot Housing First for some of the country’s most entrenched rough sleepers in the west midlands, the Liverpool city region and Greater Manchester. We are continuing to work with the pilot regions to refine the scope and design, ready for launch later this year.
Michael Tomlinson
Ahead of the commencement of the Homelessness Reduction Act 2017, will the Secretary of State join me in praising the work of Routes to Roots, a local charity that helps homeless and vulnerably housed adults in Poole?
Sajid Javid
First, let me thank my hon. Friend for the role that he played on the Bill Committee in getting that legislation on to the statute book. It will help to prevent homelessness in Poole and elsewhere. I agree that there is a lot that individuals can do to help to end the homelessness cycle, including by getting involved with voluntary groups such as Routes to Roots in his constituency, and to make a real difference for vulnerable people.
Emma Hardy (Kingston upon Hull West and Hessle) (Lab)
On Boxing day, a group called Activists for Love created a squat to shelter homeless people in Hull. I went to meet the residents on Saturday. The landlord, MRC lettings, has been very accommodating and is actually going to find everyone living there a home. However, I am concerned that the funding cuts to Hull City Council mean that it does not have the money for much-needed aftercare support to prevent these people from becoming homeless again. Will the Government please commit to providing more money for an aftercare homelessness service for Hull West and Hessle?
Sajid Javid
I can tell that the hon. Lady shares our desire, and that of all Members, to fight homelessness and rough sleeping. That is why I am sure that she will welcome the £1 billion that the Government have allocated to 2020 to fight homelessness, including £315 million for core funding for local authorities.
Bob Blackman (Harrow East) (Con)
I commend the Government for initiating the Housing First pilots, but what assessment has my right hon. Friend made of rough sleeping in London, which is clearly under the greatest pressure? We want to ensure that people get a firm home of their own and that the Mayor of London actually delivers affordable housing for the capital.
Sajid Javid
I know that my hon. Friend cares deeply about this issue and has done much on it, not least through his work on the Homelessness Reduction Act 2017. He is right to raise this issue. We will not solve the problem of homelessness in this country unless London does its bit, and I am afraid that the Mayor of London is letting the people of London down. In his first year in office, not a single home for social rent was started in London. That is a tragic record.
Rachael Maskell (York Central) (Lab/Co-op)
The centre for housing policy at the University of York is leading on policy development and on validation of the Housing First initiative, yet City of York Council has presided over a fifteenfold increase in street homelessness since 2010. How will the Minister ensure that the residents of York can benefit from Housing First not just in theory, but through action?
Sajid Javid
I hope that the hon. Lady agrees that it makes sense to pilot Housing First properly so that we ensure that when it can be rolled out across the country, it will work properly. That is why we have set up the pilot areas. There are still lots of types of help in other parts of the country, much of which comes from the £1 billion of funding that we have allocated to 2020, which includes funding for local authorities such as York.
Melanie Onn (Great Grimsby) (Lab)
The December report of the local government and social care ombudsman, “Still No Place Like Home”, found that in seven out of 10 of the housing cases that it investigated, families were being placed in bed and breakfast accommodation for unlawfully lengthy periods, with some lasting more than two years. The report highlights the appalling physical and mental impact, including on children, of living in inadequate, crowded and sometimes damp conditions. Does the Secretary of State recognise just how damaging living in insecure, inappropriate housing is? Will we see any improvement for those families in the next 12 months?
Sajid Javid
I share the concerns of many hon. Members, which is why the Government have made fighting homelessness and reducing rough sleeping an absolute priority. The hon. Lady’s question recognises that action is required on many fronts—economic, mental health, addiction and other issues—and the Government have put together a programme to pursue them.
Royston Smith (Southampton, Itchen) (Con)
The Secretary of State for Housing, Communities and Local Government (Sajid Javid)
I am grateful for the recommendations of Dame Judith Hackitt’s “Independent Review of Building Regulations and Fire Safety”. Our building safety programme is making good progress in identifying potentially unsafe aluminium composite material cladding in English tower blocks. Through that and future action, we will make buildings much safer.
Royston Smith
The use of sprinklers in high-rise blocks has been widely discussed since the tragic event at Grenfell Tower. Many of our tower blocks are constructed using individual compartments that are designed to prevent the spread of fire to other flats. However, there are many examples of where the integrity of such compartments has been compromised. Will my right hon. Friend assure the House that the fire resistant properties of individual flats will form part of the ongoing reviews?
Sajid Javid
My hon. Friend raises an important point. Fire and rescue services have visited over 1,250 high-rise buildings since the tragedy at Grenfell Tower, and those inspections have included the checking of compartmentalisation, fire doors and other relevant features. The National Fire Chiefs Council has reaffirmed the principle of “stay put”, but it is the responsible person who must determine what is appropriate for each particular building.
Mr Clive Betts (Sheffield South East) (Lab)
I want to refer to Approved Document B of the building regulations and the guidance contained within it. Paragraph 12.7 specifically prevents the use of combustible material in the insulation of high-rise buildings. Will the Secretary of State confirm that the guidance is a lot less clear about cladding and appears to allow for the continued use of combustible materials in the cladding on high-rise buildings? If so, is the Secretary of State comfortable with that situation?
Sajid Javid
I do not think that that is still the case. However, the hon. Gentleman raises an important point about the need to review the guidance and the regulations themselves. That point was made clear by Dame Judith Hackitt in the interim report that she published last month, the recommendations of which we accepted in full.
Mr Steve Reed (Croydon North) (Lab/Co-op)
Citiscape is a residential block in Croydon with the same flammable cladding as Grenfell Tower, and its residents fear that they are living in a deathtrap. The Secretary of State has told them that the responsible person should take action, but the freeholder, the developer, the managing agent and the insurer all deny liability, and the cladding stays in place while legal wrangles go on. There is only one responsible person left, so when will the Secretary of State take action to remove the dangerous cladding, and to keep people and their families safe?
Sajid Javid
I am happy to reiterate that the responsible person in such situations is clearly the freeholder. Whatever the legal case might be, the freeholder should take responsibility. My hon. Friend the Minister for Housing has spoken to the chief executive officer of Proxima GR Properties, the company in this case, and is engaged in dialogue to try to see what we can do to ensure that it does the right thing.
Dr Roberta Blackman-Woods (City of Durham) (Lab)
As the Secretary of State has said, one of the key recommendations of the interim review of building regulations and fire safety was to restructure the whole suite of approved documents to provide more clarity on how fire safety measures are applied. Will the Secretary of State therefore provide an update on what steps his Department is taking to implement that recommendation, with particular regard to planning guidance?
Sajid Javid
The hon. Lady will know that the report was an interim report, with the final report due in the spring. There were some interim recommendations that we could act on immediately, and we have accepted all of them. For example, a recommendation about restricting how and when desktop studies can be used is being implemented right now. The hon. Lady might be interested to know that a convention involving industry experts, stakeholders and Dame Judith Hackitt is going on as we speak, just down the road from Parliament—I attended this morning—to look at what more can be done in the interim.
Matt Western (Warwick and Leamington) (Lab)
Iain Stewart (Milton Keynes South) (Con)
The Secretary of State for Housing, Communities and Local Government (Sajid Javid)
Anti-Semitism and holocaust denial are completely unacceptable in a civilized society, and this Government have taken a strong lead in tackling both. We have adopted the International Holocaust Remembrance Alliance working definition of anti-Semitism, and we are planning a striking new national memorial beside Parliament.
Iain Stewart
Does my right hon. Friend agree that the work of the Holocaust Educational Trust is as important as ever, given the worrying levels of organised hatred and intimidation both at home and abroad?
Sajid Javid
I agree wholeheartedly, and I am very pleased to praise the work of the Holocaust Educational Trust. I was also pleased to announce in Speaker’s House last week that we are giving £144,000 of support jointly to the Holocaust Educational Trust and the Union of Jewish Students to tackle anti-Semitism, prejudice and intolerance on our university campuses.
Sir Patrick McLoughlin (Derbyshire Dales) (Con)
The Secretary of State for Housing, Communities and Local Government (Sajid Javid)
The new year has meant a new name for my Department, the Ministry of Housing, Communities and Local Government—or MoHoCoLoGo for short—and a fantastic new ministerial team, who will build on the great strides achieved by my hon. Friends the Members for Nuneaton (Mr Jones) and for Reading West (Alok Sharma). The name underlines the importance of our commitment to fix the broken housing market, and we will continue to help to build strong communities and to support local government. Something that resonates especially strongly this week is Holocaust Memorial Day, which is an opportunity to reaffirm our commitment to rooting out hatred and anti-Semitism wherever it exists.
Sir Patrick McLoughlin
I thank my right hon. Friend for that upbeat statement. Both Scotland and Wales are totally served by unitary local authorities. How many people in England are served by unitary authorities, and what does he expect the figure to be in five years’ time?
Sajid Javid
First, may I say that it is a privilege to receive a question from my right hon. Friend? This is the first time I have received one from him in Parliament, and it is an opportunity for me to thank him for all the work he has done in government, of which he can be incredibly proud. I can tell him that 60% of English people are served by unitary authorities, and I expect the number to be higher in five years’ time, given the views of many local people about unitary authorities and our commitment to consider unitarisation whenever requested.
Mr Speaker
The Secretary of State is clearly overflowing with excitement, and we are very pleased for him.
Iain Stewart (Milton Keynes South) (Con)
Sajid Javid
First, may I congratulate my hon. Friend on becoming the champion for the Oxford-Milton Keynes-Cambridge corridor? I know he is very determined to do an excellent job, and he will make a great difference. The cross-departmental co-operation he talked about is absolutely essential. It is exactly what we are arranging, and I know he will help with it.
Alan Brown (Kilmarnock and Loudoun) (SNP)
Nick Boles (Grantham and Stamford) (Con)
The Secretary of State attended the launch of the new all-party parliamentary group on new towns, chaired by my hon. Friend the Member for Telford (Lucy Allan). My right hon. Friend will know that the new towns and Milton Keynes were created because they were able to acquire land at a reasonable valuation close to its current use. That is no longer possible, because of the Land Compensation Act 1973. Among his many admirable ambitions for housebuilding in this country, will he agree to look at the Act and the possibility of reforming the valuation of land that is acquired?
Sajid Javid
My hon. Friend speaks with great experience. He made a number of important planning reforms when he was a Minister. I will commit to looking at the issue he raises and point him to some of the work we have already done, including an amendment in the Neighbourhood Planning Act 2017 which allows the Secretary of State to designate planning zones.
Preet Kaur Gill (Birmingham, Edgbaston) (Lab/Co-op)
Sajid Javid
We are working with Birmingham City Council on its request. As I said earlier, no request for financial flexibility will be turned down. We have received further information and we are working on it with Birmingham right now.
Toby Perkins (Chesterfield) (Lab)
Sajid Javid
We have made it an absolute priority in government to help to fight rough sleeping and homelessness. We have committed to halving it by the end of this Parliament and to eliminating it completely by 2027. I share the hon. Gentleman’s concerns, but I hope that he agrees that this issue is not a party political football, and we should all work together across the House to deal with the issue.
Eddie Hughes (Walsall North) (Con)
I am delighted that the new Housing Minister has agreed to work with me to improve tenant safety in respect of carbon monoxide poisoning. Does he agree with the National Landlords Association and Headway, a brain injury charity, that more needs to be done to protect the public at large from death or injury through carbon monoxide poisoning?
Mr Philip Hollobone (Kettering) (Con)
Will the Ministry of Housing, Communities and Local Government work with the libraries taskforce at the Department for Digital, Culture, Media and Sport to see how Northamptonshire’s public libraries can all be kept open?
Dan Jarvis (Barnsley Central) (Lab)
The Secretary of State will have seen the leader of Wakefield Council’s announcement this morning that he now supports a wider Yorkshire deal. That means that 18 of the 20 local authorities across wider Yorkshire support it. Does the Secretary of State agree that in addition to finalising the detail of any Sheffield city region deal, an important conversation now needs to be had with the 18 leaders about a wider Yorkshire deal?
Sajid Javid
The crucial decision about any wider Yorkshire deal, if there ever is one, is in the hands of the local authorities concerned. We will be going ahead with the South Yorkshire deal, but earlier this week, as I am sure the hon. Gentleman is aware, we put forward a proposal to allow others, such as Barnsley and Doncaster, to take a different route, if they choose to do so.
Mark Pawsey (Rugby) (Con)
For the coming year, the Secretary of State has enabled councils to increase tax by 3%, compared with just 2% last year, but the cash limit has been retained at £5 when parity would be £7.50. That affects 88 small district councils. Will the Secretary of State consider a change?
Sajid Javid
A number of people have made that representation. I have listened carefully and we will keep the issue under review. As my hon. Friend knows, the draft settlement is just that at the moment, and we are looking at it carefully.
Wera Hobhouse (Bath) (LD)
May I welcome and congratulate the new members of the team? Ending a private rented sector tenancy is now the leading cause of homelessness. Will the Secretary of State extend the mandatory licensing scheme for landlords in the private sector?
Mr Ranil Jayawardena (North East Hampshire) (Con)
With Holocaust Memorial Day this week, does my right hon. Friend agree that on both sides of the House we really need to face up to anti-Semitism wherever we see it and whatever form it takes?
Sajid Javid
Holocaust Memorial Day is a reminder to us all of the horrors of what mankind can do—of what we can do to each other—if no one speaks up. It is incumbent on all parties in this House to face up to anti-Semitism. I noted just a few days ago the Jewish Labour Movement was appealing to the Labour party leadership to throw out people who allegedly practise anti-Semitism. The Labour party talks about combating hate crime, but it has to show people that it really means it.
Gloria De Piero (Ashfield) (Lab)
Too many people moving into brand-new homes on brand-new housing estates struggle with poor or no wi-fi. Will Ministers work with developers to ensure that the necessary infrastructure is in place when these houses are being built?
Local Government
Sajid Javid Excerpts(6 years, 10 months ago)
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The Secretary of State for Housing, Communities and Local Government (Sajid Javid)
For some time there have been concerns about financial management and governance at Northamptonshire County Council, and in recent months a number of reports have been published, which have led me to question whether the authority is failing to comply with its best value duty. Particular reports include the external auditor’s (KPMG) “adverse” value for money opinion in relation to the 2015-16 and 2016-17 accounts, publically available budget documents, and the September 2017 Local Government Association peer review into the council’s financial planning and management.
Having carefully considered the evidence available to me, I have today decided to exercise the powers granted to me by Parliament under the Local Government Act 1999 to appoint an inspector to carry out an inspection to better understand the authority’s compliance with its best value duty. The matters to be covered initially by the inspection will in particular relate to the authority’s corporate governance and financial management systems.
I have asked the inspector to report findings to me by 16 March 2018, or such later date as the inspector agrees with me.
This decision is not taken lightly. I hope it sends a strong signal that robust processes are in place to investigate allegations of failures in financial management and governance in local government.
I hope hon. Members will appreciate that we cannot be drawn into more detail while investigations are ongoing. Once the inspection is complete, I will carefully consider the inspection report. If it shows that the council is in breach of its best value duty I will then consider whether or not to exercise my powers of intervention under section 15 of the 1999 Act.
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