Adult Social Care

Sarah Owen Excerpts

Wednesday 8th March 2023 Commons Chamber

[Sarah Owen (Luton North) (Lab)]

Thank you, Madam Deputy Speaker, and may I also welcome you back? It is great to see you in the Chair.

Today we have been allotted time to speak about something the Government seem to do anything possible to avoid, and that is social care. It got barely a look-in in the autumn statement, and there is not much hope for next week’s Budget either. Every generation in this country is being failed by irresponsible, careless Conservative leadership—or, rather, a lack of leadership. Young people are having opportunities snatched from them by this Government. Working people are underpaid and cannot afford to buy their own home or pay the rent. Our older generation, who have toiled for decades, paid their taxes and contributed to our economy, are now being left in the lurch by the state when they need it the most. These are people such as the wonderful WASPI women whom I met outside Parliament today—women such as Josie from Great Yarmouth, Yvonne and Jane, who all told me to tell younger generations of women, “Look after yourself and plan for later life, because the likes of this Government won’t be there when you need them most.”

Our ageing population do not just deserve good social care; they should be entitled to it. It is their right, and in a country with the sixth largest GDP in the world, it is frankly mortifying that they are not afforded it. The social care sector is a problem the Tory Government have not just neglected, but actually made worse in their 13 years of power. There are currently record high levels of staff vacancies in adult social care—a staggering 165,000 vacancies. The existing workforce are burnt out, underpaid and overworked trying to cover the staff shortages. When I worked as a care worker, going into people’s homes to provide some of the most sensitive of support in sometimes less than 20 minutes, I knew the system was broken. Being pressured by managers to prioritise private patients over those who had support from the state, regardless of their need, was the wrong way of doing things then and it is the wrong way of doing things now.

It is worth noting that this debate is taking place on International Women’s Day. Later, we will hear a debate on childcare funding. While it might be a coincidence that these two debates are being held on this day, it is extremely meaningful. Some 80% of the care workforce are female, and that accounts just for the official staff. Under this Conservative Government, 2.3 million more people have given up some or all of their working hours to care for family members, because they cannot access professional support. That point was made eloquently by my hon. Friend the Member for Worsley and Eccles South (Barbara Keeley). The majority of those unpaid carers will be women, once again taking a hit to their careers, their finances and often their own health to provide care when the state has simply stepped back.

It does not have to be this way. As many as one in three hospital beds are currently occupied by patients who are ready for discharge, but who have nowhere to go. I am sure the Minister and his colleagues know as well as we do that these are not hospital beds going spare. Then there are the waiting lists. Many of us here will have a parent, a grandparent or a loved one in need of adult social care, or care for a younger person with disabilities. I wonder how many of us could say they have received the care they needed in a timeframe they are satisfied with.

Recent figures show a shameful trend of delays and let-downs in the social care sector. More than half a million people are waiting for an assessment, a review, the start of a service or a direct payment—half a million people. When will this backlog be dealt with and what are those people having to do in the meantime? I can take a guess at what some of them are having to do. As much as local councils, charities and places of worship try to plug the gaps left by this Government with food banks and warm banks, many pensioners are left shivering in homes, avoiding too much usage of their lights or televisions even, and watching their bills escalate. They are going to the shops to find no eggs and no tomatoes, and still coming back out of pocket. They are doing all this while dealing with their untreated health issues, and they are waiting up to 24 hours for ambulances to arrive in desperate situations.

Those people are wondering when exactly it was that this Government turned their back on them. Perhaps it was in 2022, when the Chancellor made it clear that social care was not a priority, allocating just £2.6 billion in new funds. Maybe it was in 2019, when a Tory party actually quite different from this one—we have gone through quite a few different leaders and Prime Ministers—promised that

“nobody needing care should be forced to sell their home to pay for it”,

while, on their watch, 28,000 people have exhausted their life savings to pay for care. That point was made by the right hon. Member for Ashford (Damian Green). But no, I think the betrayal of our older generation goes much further back than that.

In 2012, the current Chancellor was Health Secretary. He promised a cap on care costs, acknowledging the financial weight crippling individuals and families. The cap was legislated for in 2014, delayed until 2020 and then postponed indefinitely. After 10 years of being strung along, the hundreds of thousands of people needing adult social care were told in the autumn statement that any reforms of social care charges would have to wait until at least 2025. This is a heartbreaking and intensely frustrating situation for people waiting for answers and for security for the future. People are dying while waiting for state social care—150,000 over the last five years to be exact. I repeat: 150,000 people have died waiting for the care they never received. Will the Minister tell us how our constituents can really trust the Government to solve this crisis?

When he was Chair of the Health and Social Care Committee, the Chancellor stated that an annual sum of £7 billion was needed to plug the gaps in social care. One year later, and now in the position of power to allocate the very funding that he demanded for the sector, he pledged £7.5 billion over two years and, as we have established, only a quarter of that is new funding.

As the deliverers of state social care, local government leaders are well placed to judge what is needed. The Local Government Association has calculated that £13 billion is required to address the severity of the pressures facing the social care service. It states:

“An investment of this scale is needed to support our national infrastructure, our economy and our prosperity.”

Does the Minister believe that the Tory-led LGA is wrong about that? The LGA has also been critical of the Government’s model that continues to rely on council tax revenue to pay for social care. Council tax brings in vastly different amounts in different areas, depending on the demographic of residents.

In some areas, particularly rural communities, funds coming in from council tax are heavily outweighed by the demand for social care. As the hon. Member for North Devon (Selaine Saxby) eloquently put it, there are many different barriers to accessing social care—and good care—within rural communities, and that is just one of them. The hon. Member for West Dorset (Chris Loder) also made it clear that that is an issue. In a debate in January, he argued against the funding model, with one third of his constituents aged over 65, compared with a national average of 19%, which presents a huge need for care. He stated that Dorset Council’s spending on adult social care had risen by 15%, but that that was not touching the surface of the problem, and 83% of the council’s income was reliant on council tax.

The problem lies with central Government and the lack of a sustainable funding model. Fortunately, one party has a plan for social care, and we will not be postponing it for years or decades when we are in power. A Labour Government will implement a 10-year plan for investment and reform in social care. We will increase access and prioritise prevention and early intervention with home care. We will present a new deal for care workers that delivers fair pay, training and working conditions to recruit staff and—most importantly—retain them. We will ensure that unpaid family carers are no longer overlooked or taken for granted. If the Minister can present anything to rival that, I would genuinely love to hear it. As a former care worker, and someone whose grandparents have wonderful carers, I would love to say that we could put politics aside and come to a solution for the good of our country, but I also question the likelihood of that, given the 13 years of failure that we have seen from this Government.

I have mentioned some shocking figures, but I want to make it clear that social care is not about numbers—it is about people. It is about people in desperate need of care, who are often towards the end of life. It is about young disabled people, and families when they are at their most vulnerable. It is about the people providing that care through long hours, hard graft and low pay. Our nation’s older generation depends on them, and so will we when our time comes. I hope for everyone’s sake that they will still be there, and that this Government will not be.

--- Later in debate ---

[Lee Rowley]

I am happy to confirm that the Government are trying, where we are able, to offer greater visibility of what is coming and greater long-term understanding. We will continue to try to do that across the local government finance settlement, and I hope this policy statement is an indication of that.

[Sarah Owen]

I appreciate the Minister’s generosity in giving way, and I completely agree on the kind of long-term futures that we talking about for local government, yet we are 23 days away from local authorities setting their budgets and they have still had no indication about their public health grants. If we are going to treat local authorities with respect on healthcare, surely they should be given that well in advance.

[Lee Rowley]

I know that my colleagues across Government will be working hard to get the final elements of the settlement out as soon as possible, but I hope the hon. Lady will acknowledge that, on the basis of my conversations with local government over the past few weeks, there is a recognition that the settlement has provided a good level of funds, that it will be moving in a positive direction and that it provides the stability and greater certainty that local government has requested and that we have responded to as a Government.

To conclude, I again thank the hon. Member for Sheffield South East for instigating and opening this debate. I also thank everybody outside this place who supports adult social care. It is an extraordinarily important part of local government and the state’s activities in general. As has been outlined in this debate, we need to support the most vulnerable and those in need, irrespective of age or condition. Through the changes that are coming in the new financial year, we are trying to provide additional funds, support and taxpayer subsidy to do that, and to ensure that local government can continue to build and improve for the long term in such an important policy area.

Draft Non-Domestic Rating (Rates Retention: Miscellaneous Amendments) Regulations 2023

Sarah Owen Excerpts

Monday 27th February 2023 General Committees

[Sarah Owen (Luton North) (Lab)]

It is a pleasure to see you in the chair, Mr Hosie. Since we last addressed the topics outlined today, it seems little has changed to clarify how the policy will support local communities in the long run, particularly small and medium-sized businesses in our constituencies. High streets have been hit hard and are increasingly run-down, with hardworking business owners having to accept defeat in the face of impossible financial difficulties and short-sighted decisions made by this Government as they lurch from crisis to crisis.

While Labour has a clear plan to scrap business rates and bring in wide-reaching reforms to even out the playing field, we are still not clear what the Government are proposing. The threshold for rates relief for small businesses is still too low, at just £15,000, and online giants are still not paying their fair share of taxes, with a digital service tax not high on the agenda. How can we say to our communities that high street shops such as Marks & Spencer—known, valued local businesses—are paying more in tax than online giants such as Amazon? That is not levelling the playing field. It is ripping the guts and hearts out of our communities.

Will the Minister share any progress on implementing fair taxes for major online businesses? Will they finally be made to pay a proportionate amount back to this country in the way that our home-grown small and medium-sized enterprises do? The Minister knows well the pressures that local authorities are under. It is something we have both discussed and, at some points, locked horns on. They are working on shoestring budgets and with staffing shortages. The last thing councils need now is the administrative challenge of processing new rates without the extra resources to cope. Will the Minister confirm whether local authorities will receive extra resources to deal with the administrative burden?

In our last meeting on business rates, I made those concerns clear to the Minister. He responded by pledging to carry out new burdens assessments ahead of implementation. Can he advise me on whether the assessments have taken place? If so, would he be willing to share with the Committee and myself their findings?

Off the back of the question from my hon. Friend the Member for Blaenau Gwent, will the Minister please share the value of the opt-out for the City of London? The Minister also said that, if it was decided, additional support that might be needed would be provided to councils. Has any support been allocated since we last discussed the issue? As we stated in the last such session, we will not oppose the regulations, but this time we want assurances that appropriate assessments are being carried out to ensure that the strain on councils does not grow even greater and that those that need the support will get it.

Oral Answers to Questions

Sarah Owen Excerpts

Monday 20th February 2023 Commons Chamber

[Mr Speaker]

I call the shadow Minister.

[Sarah Owen (Luton North) (Lab)]

Over a decade of Tory cuts are not the only thing damaging council budgets; fly-tipping is a stain on our communities and costs nearly £400 million a year. Taxpayers are left footing the bill for the 16% increase in this crime under a Tory Government. Councils should not pay the price for Conservatives being soft on crime, so does the Minister agree that it is time to get tough on people who do not respect our neighbourhoods? Will he back Labour’s plan for stronger punishment for fly-tippers and the introduction of clear-up squads?

[Lee Rowley]

I am grateful to the hon. Lady for her comments. I absolutely agree that fly-tipping is a scourge and a crime, and that local authorities have the resources and the ability to try to do this and to crack down on it. I encourage them to do so.

Draft Local Government (Structural Changes) (Supplementary Provision and Amendment) Order 2023

Sarah Owen Excerpts

Thursday 9th February 2023 General Committees

[Sarah Owen (Luton North) (Lab)]

It is a pleasure to see you in the Chair, Mr Vickers. I welcome the new Minister to her place; she has made a fine first outing. I look forward to working opposite her as we go on, although experience tells me that it will not always be as smooth sailing as it is today. I welcome the opportunity to speak on the draft order, as it draws on the excellent legislation put forward by the last Labour Government. Labour in national Government empowers local government: we designed the Local Government and Public Involvement in Health Act 2007 to make the structures of local authorities clearer and more practical.

This Government, however, have caused chaos and confusion for local authorities by demanding that they enter bidding wars against each other for the few funding pots available—a process that has been likened to “The Hunger Games” many times, and that needs to stop. They have widened regional inequalities by forcing councils to bring in more funds by raising council tax, which creates vastly more revenue in wealthier areas than others. Local communities and residents across the country are feeling fed up with decisions made in Whitehall rather than their town hall, so it is no wonder that are calling out for Labour to return to power.

The draft order is a welcome improvement to the structures in Cumbria, North Yorkshire and Somerset. Wherever we can, we must simplify and strengthen the way that local governments serve their jurisdictions, so we will not oppose it.

[The Chair]

The question is that the Committee has considered—sorry, I am jumping the gun; I apologise to the Committee. Minister, do you wish to respond?

Council Tax and Revenue Support Grant

Sarah Owen Excerpts

Tuesday 31st January 2023 Westminster Hall

[Sarah Owen (Luton North) (Lab)]

It is a pleasure to see you in the Chair, Sir Mark. I think I might have caught my daughter’s cold, so forgive me if I am a little hoarse—I wish that the Minister had bought two Lucozades. I congratulate the hon. Member for West Dorset (Chris Loder) on securing the debate and highlighting the regional inequality that his constituents face. That is a reality for many areas across the country.

Council tax is a fraught issue in every part of our country, from Dorset to Durham. Sadly, local communities in rural, urban and suburban areas will have seen their neighbourhoods decline over the last decade while also seeing costs go up. Every household paying their council tax will increasingly feel the strain as we deal with the fallout of the mini-Budget and a looming depression. With the revenue support grant being withdrawn in many areas and rising running costs not being met with adequate funds, council tax seems to be all there is left for local authorities. That is all that they can rely on. As we heard from the hon. Member for West Dorset, more than 80% of local funds are raised through council tax. That is reflected nationally: since 2010, core funding for councils has been reduced by £16 billion, and yet council tax has increased—it has been forced to go up—by over £15 billion. What we see locally is happening nationally.

Following 13 years of relentless, debilitating cuts, councils desperately hoped for respite from the autumn statement, but no such support was provided. Instead, the Government laid more burdens on local authorities by forcing them to take the tough decision on whether to raise council tax further. That was a cop-out—a refusal to own and fix the holes that they have created in our communities. The Chancellor talks—all Chancellors talk—about taking tough decisions, but, to be blunt, they are not taking the tough decisions when it comes to local government. They are instead forcing difficult decisions back on local authorities and local people. After taking 60p from every £1 given to local authorities since 2010, this Government are now pushing councils to charge residents even more money—often for worsening services. That is not sustainable. The Chancellor’s plans to raise council tax in the way he has outlined will bring in an extra £80 per person in Surrey but just £39 per person in Hull.

Some have misunderstood levelling up or seen it as a bit of an empty slogan. Has it now come to mean that we are just creating greater economic divides than those that existed before? The hon. Member for West Dorset talked about rural areas perhaps not faring as well as everywhere else in levelling-up fund bids. I have asked before about the transparency over how levelling-up funding bids are allocated. Local authorities have not been told why they have been unsuccessful. As Ministers will know, MP after MP stands up in the Chamber or Westminster Hall to ask for their bids to be looked upon favourably, or to talk about how successful the bids are or where they are in the process. If we had a transparent process, we would know more, and local authorities and local areas could put in stronger bids. We need to end the cycle of beauty pageant crossed with Hunger Games-style bidding wars, which pits area against area, community against community and project against project, with no guaranteed outcome and without even tackling regional inequality. Instead, Labour would trust local areas and move towards longer-term funding settlements for councils and communities to use according to their priorities and make genuine long-term efficiency savings as they can better plan for the future.

After service after service has been cut, it is clear that local funds do not meet those needs. The hon. Member for Strangford (Jim Shannon), who is not in his place now, talked about demand outstripping supply and resources in local areas. We have seen councils’ desperate need to revive their youth provision or deal with increased levels of antisocial behaviour. Yet the funding does not make a dent in the amount needed to restore our crumbling high streets, prevent library closures or save local nurseries, and we all know it does not come anywhere close to plugging the gaps in the ailing, failing adult social care sector.

As has been stated, the hon. Member for West Dorset represents a rural constituency with a higher than average number of older residents, and that necessarily means higher demands on adult social care. I am sure he will appreciate that pouring more local taxpayers’ money into a broken care system is just not sustainable. Private companies are making huge profits off children in care and through contracts with local authorities that have been stretched so thin that they can no longer directly provide the services that are needed. There has to be another way.

I worked as a care worker. I know the hard graft, the long hours and the low pay, and I know the conflicting demands. Those who had funding support and those who paid privately were pitted against each other—often for minutes—regardless of need. The Government cannot continue to ignore the dereliction of this sector forever. Even the current Chancellor acknowledged when he was Chair of the Health and Social Care Committee that that was not sustainable. When the funding comes, it will be just another sticking plaster and will come nowhere close to healing the wounds of more than a decade of neglect of social care, as well as rising demand. Constituencies such as mine and that of the hon. Member for West Dorset are varied in their demographics and geography but alike in their need for stable, adequate funding. I sincerely hope the Minister can answer some of the questions that have been put to him today.

Oral Answers to Questions

Sarah Owen Excerpts

Monday 9th January 2023 Commons Chamber

[Mr Speaker]

I call the shadow Minister.

[Sarah Owen (Luton North) (Lab)]

Thank you, Mr Speaker, and happy new year.

Conservative failure to tackle regional inequality is just one in a long list of let-downs. Thirteen years of Tory rule, and parts of the UK have plunged further and further into poverty. Local authorities spent over £27 million applying for levelling-up bids, only for many to lose out—places such as Barnsley and Knowsley, which have been denied multiple bids with little transparency, leaving many colleagues in the dark and resorting to questioning Ministers about local bids, with no answers at all. Will the Minister please clarify the lack of transparency and the financial costs of these bids to cash-strapped councils, particularly during the cost of living crisis?

[Dehenna Davison]

I thank the shadow Minister for her question. We are keen to get the levelling-up funding announced by the end of the month, with additional funding to what we were originally forecast to put out. We had £1.7 billion in the pot; we are now going to be divvying out £2.1 billion to local areas that really need it. It is the Conservative Government who deliver for the people across this country.

Child Bed Poverty

Sarah Owen Excerpts

Monday 19th December 2022 Westminster Hall

[Sarah Owen (Luton North) (Lab)]

It is a pleasure to see you in the Chair, Mr Paisley. I congratulate my hon. Friend the Member for Newcastle upon Tyne North (Catherine McKinnell) on her work on the Petitions Committee and on introducing the debate so effectively, passionately, knowledgably and sensitively. In common with others, I thank Zarach as well as Crisis and Barnardo’s for their supportive work.

We may be few in number in the Chamber today, but I know we speak for many colleagues in expressing our distress over any child going without the space and comfort to sleep. As we have heard, children need sleep and a safe space to grow and learn. That is essential for neurological development, absorbing what is taught at school and building up a memory store for adulthood, a point put well by my hon. Friend the Member for Batley and Spen (Kim Leadbeater), where at least 163 children do not have a bed of their own. She highlighted the horrific impact that that has on their education and emotional wellbeing.

Sleep is as important to a healthy lifestyle as limiting fast food and running around the park, but too often we can forget that as we get older. Bed poverty is a hidden level of poverty, and not something that parents, families or children are willing to share; it is hidden away from sight. As any parent will know, children’s sleep is crucial for our sanity too. Behaviour, along with physical and mental health, is drastically impacted by the amount and quality of sleep people get. Studies in China in 2021 found that the quality and length of sleep directly correlated with levels of depression and anxiety later in adolescence.

Salient points have been made by hon. Members throughout the debate. My hon. Friend the Member for Newcastle upon Tyne North talked about the scale of child poverty in this country, with 3.9 million children in poverty in 2022. That should shame any Government, of any colour, into action. Bed poverty has a horrific impact on a child’s education and wellbeing that ensures that the cycle of poverty and deprivation continues. We need to break that cycle for good.

My hon. Friend the Member for Halifax (Holly Lynch) pointed out the growing levels of child poverty—we are seeing not a decline, but growing levels of child poverty. In places such as Halifax, 30% of children are growing up below the poverty line. The cost of living crisis plus the pandemic and years of austerity have created a perfect storm that allows child poverty to continue. As we have heard, there has been a constant mantra—and almost a guilting of parents—that work is the best route out of poverty, but we know that millions of people go to work, do the right thing and work all the hours that they can yet are still paid below poverty wages. That is an absolute disgrace. My hon. Friend is right to thank the charities and social workers who are the backstop for families, but it should not be that way. I cannot believe that in 2022, in the sixth richest country in the world, we are talking about children going without beds.

I invite all Members, Mr Paisley, to picture a scene: a family Christmas, with sparse food on the table, if there is indeed even a table, mum and dad worried about paying the rent, grandparents shivering in the cold and dark, kids sharing single beds, sleeping on the sofa or even on the floor or in a bath tub. That sounds Dickensian, but is in fact the prospect for too many of our constituents as they face hard times this Christmas. In 2020, Crisis estimated that 30% of families on the lowest income could not afford a bed for their child. Will the Minister provide an updated assessment of the figure as it stands now, after a prolonged pandemic, energy price rises, rocketing inflation and a catastrophic recession?

The housing crisis is nothing new, but its impacts are reaching new heights. Last Christmas, 1,300 families with children were living in unsuitable B&B accommodation over Christmas, already a rise of 3% on the year before. Given the added recession, will the Minister tell me how many more families with children will be in temporary accommodation for Christmas 2022? Is his Department investigating how many of them are living in unsuitable, overcrowded conditions, perhaps also grappling with dangerous levels of mould, damp and cold?

The gap between housing benefits and standard private rents is also increasing. New research by Crisis found that fewer than one in 12 homes advertised on Zoopla were affordable for renters receiving housing benefit, compared with one in eight just five months ago. With section 21 eviction notices still not banned three years after their election on a manifesto that promised to deliver that, the Government are only pushing more families into homelessness and more children into bed poverty. When will we see the ban on section 21 no-fault evictions? Do we have to wait for a Labour Government to finally get rid of them?

The topic of the debate leaves us all asking why, in a country as wealthy as ours, we are grappling with something as basic as children not having the space to sleep. As with food poverty and fuel poverty, bed poverty is just part of the wider scope of deprivation in our allegedly world-leading country. If a parent cannot afford to give their child space to sleep, it is unlikely they are managing to comfortably pay their bills, feed them well and provide for them as any parent would wish to do. As my hon. Friend the Member for Newcastle upon Tyne North said, this level of poverty leaves families teetering on the edge and still at the mercy and prey of legal loan sharks.

Children’s charity Barnardo’s set up an emergency fund in October to provide urgent support to children, young people and families dealing with the cost of living crisis. Although originally envisaged to help with food costs and energy bills, Barnardo’s has already seen a concerning demand for beds and bedding. In my constituency of Luton, our Labour council released a 2040 report with a vision for where our town would be in two decades’ time. The vision is not a shy one. We aim to eradicate poverty in our town by 2040 and build a child-friendly town. I am proud of that aim, as everybody within my local government should be. It is bold, ambitious and inspirational, and it is everything local government should be, but we have to contend with a Government in power imposing 12 years of austerity on this country. Local communities have to take matters into their own hands for the sake of their people, but they are fighting a constant battle of inflation, cuts and rising demand.

Local authorities have already lost 60p for every £1 of Government funding since 2010, but I know they will fight tooth and nail to support their residents in need, especially children. When will our Government finally take responsibility for the children they should be protecting and caring for? When will all children have a safe bed to sleep in? I look forward to hearing the Minister’s solution to the problem, as it is one we all want to see solved. I hope that not too many families in the UK will face cruel, cramped Christmases this year. Christmas is supposed to be a time of hope. I genuinely hope that this Dickensian Conservative-induced nightmare, with child poverty at the levels we are seeing, finally comes to an end before another generation is harmed.

Council Tax

Sarah Owen Excerpts

Monday 12th December 2022 Commons Chamber

[Justin Tomlinson]

Yes, it is about trust: trust in our world-leading democracy and trust in making sure that we can safeguard what matters. I will not stray into conspiracy theories about Scottish elections, but trust is the proof of the pudding. When there was a pilot in my constituency, voter turnout went up and people complained when the pilot came to an end. It is quite straightforward.

[Sarah Owen (Luton North) (Lab)]

The hon. Member talks about trust. Trust is incredibly important, so can he tell me why anybody should trust the Conservative party when it comes to voter fraud, given that its last leadership election—not the coronation that we have just had, but the leadership election—was delayed because of security fears and possible breaches of ballot paper processes?

[Justin Tomlinson]

If there is ever any question of any threat in any form, it should always be investigated. The sun comes up in the morning—it is that obvious.

I say to the Minister: hold firm. This is what the public want. It has worked in the pilots, and proceeding with it is an absolute must.

Draft Non-Domestic Rating (Chargeable Amounts) (England) Regulations 2022

Sarah Owen Excerpts

Monday 12th December 2022 General Committees

[Sarah Owen (Luton North) (Lab)]

It is a pleasure to see you in the Chair, Mrs Murray. I welcome the opportunity to speak on this legislation, which will touch businesses in all our constituencies. Unfortunately, however, the Opposition would not vote with the Government in a Division, because we do not believe that the regulations go far enough. I will put on the record some points about the difficulties facing businesses and the local authorities attempting to support them.

On Saturday 3 December, we all celebrated Small Business Saturday, which is an opportunity to focus on independent traders who are making a big impact with little resource. All year round, however, my colleagues and I hear about the struggles of small businesses in our communities. Our high streets are already struggling as a result of the pandemic, and from the decade of under-investment before that.

As a result of climbing energy bills, the cost of goods rising with inflation, and stagnant wages driving consumer caution, businesses are desperate for a dramatic package of support. Tinkering with business rates, which is what this legislation does, is not what they want or need. Labour has a plan to back business by bringing business rates in line with the needs of the modern economy.

We are committed to cutting rates immediately for small firms, and they should be given any discount they are owed as a result of the revaluation at the nearest opportunity. To give the sector the stability and reassurance that it needs, and that I am sure we all want to see, we will bring in an annual revaluation of business rates, rather than holding ad hoc revaluations as the Government do, and as is outlined in the regulations. Under our model, the heavy burden of taxes will move from small and medium-sized enterprises and high-street businesses to online giants, which have, for far too long, got away with contributing far too little to our economy.

When Labour gets into government, it will deliver the transformation that businesses deserve, but we need an urgent increase now in the threshold for small business rates relief from £15,000 to at least £25,000. That discount for small and medium-sized enterprises would be a vital boost at this vulnerable moment. It would be funded by increasing the digital services tax for online business grants. That is just a taster of what could have been. I would be grateful for the Minister’s assessment of the financial health of SMEs compared with, for example, global tech companies, and would like to know why increases in the digital services tax have not made his priority list. The burden of business rates is disproportion-ately heavy on small businesses. Our hard-working high-street entrepreneurs are being driven into the ground, while the profits of major corporations soar.

This legislation, being at an early stage, will not arrive soon enough to allow businesses and local authorities to plan sufficiently for the year ahead. In July, the Local Government Association responded to a Government consultation by saying that

“any transitional arrangements for 2023, whether part of the formal scheme or supplementary, should be announced no later than autumn 2022 when the draft list and provisional multiplier are announced.”

It is not contentious to say that 12 December is beyond what we conventionally consider to be autumn. Councils will not have adequate time to consider and communicate the changes before they become law. Were the time and effort required for local authority staff to adopt the new process factored into the timetable for the legislation?

It is not just the billing authorities that need to prepare for the new non-domestic rates. Such financial and administrative overhauls can be costly for many of the individuals and groups paying the new rates. The LGA has highlighted the need for councils to be compensated for the cost of staff time, and for potential new technologies, involved in the revaluation of rates and in bringing in the transitional scheme. It is welcome that the Government have already announced that administrative costs for local authorities will be covered, as with previous schemes, under the new burdens doctrine. However, the insufficient time to input these changes will still cause problems that council staff do not need. For their peace of mind, will the Minister confirm that no further reliefs will be announced ahead of the new financial year starting on 1 April 2023?

We will not vote against the legislation. However, the Government clearly have work to do to catch up with the needs of small and medium-sized businesses, and to match what Labour’s fair taxation strategy offers those businesses, so that we can regenerate our high streets.

Draft Architects Act 1997 (Amendment) Regulations 2022

Sarah Owen Excerpts

Wednesday 7th December 2022 General Committees

[Sarah Owen (Luton North) (Lab)]

It is a pleasure to see you in the Chair, Mr Robertson.

I welcome the opportunity to speak on this specific but important change for mutual recognition agreements with counterpart regulators in other countries, while removing any remaining provisions that continued temporary alignment with the EU’s mutual recognition of professional qualifications directive, and which were laid as transitionary measures following the EU referendum result. All these years later—indeed, three Prime Ministers later—and it seems that Brexit is not quite done yet. On the face of it, these changes are needed and we are not planning to oppose these measures, but the Opposition wonder whether there are some missed opportunities and contradictions with this change and other Government policies on this sector.

As the economy shrinks, and given that the Secretary of State for Levelling Up, Housing and Communities and the Prime Minister have reportedly ditched mandatory housing targets, our concern is that the sector is, at best, getting mixed messages and, at worst, has little to no confidence. The Royal Institute of British Architects, or RIBA, reports that a third of architectural practices are expecting their workload to drop. The institute’s future trends survey shows that architects’ confidence continues to fall in all regions. The most pessimistic outlook is in the capital, where practices expect their schedule of work to slow down and 40% expect their workload to shrink. RIBA’s head of economic research and analysis, Adrian Malleson, explained that there is no expectation of job losses. He said:

“So far practices are, overall, seeking to keep staff.”

That is good news, but he added:

“In our post-Brexit environment, qualified, talented architectural staff are hard to recruit and retain.”

It is reassuring that RIBA has been working with the Architects Registration Board and the Department for Levelling Up, Housing and Communities to ensure that these changes work for the sector. I am sure that workforce supply and development would be key to that, but I would be grateful if, in the absence of any impact assessment, the Minister provided an estimate of the numbers of architects that are covered by existing EU law and the transitional regulations. Are those numbers likely to matched or bettered by future mutual recognition agreements with other countries? If so, does the Department have any projected figures?

[Mr John Baron (Basildon and Billericay) (Con)]

The hon. Member is painting a very bleak picture and refers to Brexit. Does she not recognise that there is a global slowing of economies? People can bandy about figures relating to expectations but, when we compare our unemployment rate with those of our nearest European neighbours, we are well below their levels. In fact, we are about half the EU average. That is not as bad a picture as the hon. Lady paints.

[Sarah Owen]

I thank the hon. Member for his intervention, but I am speaking about the specifics of architects and the numbers of architects. I will come on to the international picture for architects. Perhaps that will clarify why the picture is not necessarily a gloomy one, but one where we need to be prepared for the impacts and fallout of any changes we make.

The ARB has said that any new agreement will maintain high standards and safety, which is welcome. New applicants coming to the register via these mutual recognition agreements will have to undertake a test to measure their understanding of the UK-specific context of practising architecture. Considering Grenfell and the constant striving to do better, will the Government use the international MRA negotiations or future tests to build on our existing high standards, rather than just maintain them? We understand and welcome the fact that the ARB is in the early stages of negotiations with Australia and New Zealand, the US and the EU, but negotiations can often take longer than is expected or hoped. Can the Minister tell us the likely timeframe for the completion of the negotiations?

Architects are predicting a slowdown in their workload and there is also a shortage of architects, with even more indicating that, sadly, they want to leave the profession altogether. In a survey conducted by Bespoke Careers last year, nearly 1,000 architects were interviewed from the UK, the US and Australia. Bespoke Careers found that 47% of British architects surveyed planned to leave their job. That is up from 36% before the pandemic. The dissatisfaction was most pronounced in the US, where 61% planned to quit. Reasons cited included pay cuts, mental health and not being able to take all available annual leave. Concerns about job satisfaction and the retention of architects are not just a problem in the UK; they are also an issue in at least two of the countries with which we are seeking MRAs. Is the Minister or his Department working with international counterparts and international professional bodies on retention, as well as attracting future architects to the profession? With the new negotiations taking place, I hope that we seize every opportunity to do better and, crucially, to attract the best and brightest to this important profession. I thank Committee members for their time and I look forward to answers to the questions we have put to the Minister.

--- Later in debate ---

[Lee Rowley]

I am grateful to all hon. Members who contributed to the debate, and I will address the points raised. I am grateful to the hon. Member for Luton North for her confirmation that she will join us in supporting this initiative and will not seek to divide the Committee. I welcome the constructive spirit of her speech, and I am grateful to the Opposition for their acknowledgement that the regulations are a necessary and reasonable step forward.

The hon. Lady outlined broader points about Brexit and the economic circumstances we are in. My hon. Friend the Member for Basildon and Billericay made important points about the context for those circumstances. With the Committee’s forgiveness, I will not engage in a long debate about macroeconomic or global financial policy here, as many colleagues debate those issues regularly on the Floor of the House. Instead, I will focus on the relatively narrow decision that we have to make today.

The hon. Member for Luton North asked about the numbers and the impact of the regulations. As the Architects Registration Board has indicated, the position with regards to EU access to the United Kingdom remains the same from a regulatory perspective, in that ARB will continue to acknowledge EU qualifications, and hopes that the application made to the European Union will be successful as soon as possible. The regulations extend opportunities for others to come and provide support for the United Kingdom’s economy in the future, which I hope will be welcomed.

Questions were raised about standards. There is a relatively narrow discussion to be had about ensuring we have the opportunity to bring people in, so if people want to come to this country, that can happen, and equivalent qualifications will be recognised. The issue of how the Government approach standards in the future is a broader question; as the hon. Lady said, it relates to a number of matters, including Grenfell, which we are considering, but that is not something to opine on in this Committee.

Finally, the hon. Lady asked broader questions about how the architectural sector across the world deals with recruitment and retention. While I understand the point the she is making, I gently say that that is a broader matter than the Question in front of us. There is also a genuine question for the Labour party to ask about where it thinks the role and responsibility of the state starts and stops.

[Sarah Owen]

I can hear that the Minister is getting to the end of his comments. Has he missed my question about the likely timeframe for the completion of negotiations with Australia, New Zealand and the US?

[Lee Rowley]

I will come to that question. To conclude my point on global recruitment and retention, we obviously want successful sectors, with good pipelines of people coming in and which allow people to build their careers and lives. At the same time, there has to room for individual agency and individual sector decisions, and some of the hon. Lady’s questions should probably be dealt with outside formal legislation, regulation and intervention from Government.

I turn to the question that the hon. Lady reminded me about. Ultimately, the decision in question is one for the Architects Registration Board. The board was set up in statute in 1997 for a purpose, and it will make decisions about who it wants to enter into discussions with, and how long it wants to continue those discussions for, and then it will seek to conclude them and to obtain mutual recognition as a consequence.

The hon. Member for North Ayrshire and Arran, who tempts me to relitigate Brexit, which I will refrain from doing, asked similar questions about the need to sign up to reciprocal arrangements with the European Union, and about ensuring that things move quickly, and I hope my answer to the hon. Member for Luton North has explained my view. I too would like a reciprocal agreement with the European Union signed, so I hope that the EU moves quickly; that would be in its interests.

The hon. Member for Hemsworth asked a series of technical questions about the consultation that was undertaken and its impacts. He asked why the preamble to the regulations states:

“In accordance with section 15 of the 2022 Act, the Secretary of State has consulted the Architects Registration Board”,

but does not reference the broader consultation. That is because section 15 of the 2022 Act requires us to consult with the relevant regulator. The preamble confirms that we have done that, so we are responding to the requirement in the 2022 Act, rather than making a broader point about consultation. As he rightly indicates, we have consulted on this matter. The consultation ran from late 2020 until early 2021. I believe that he referred to the consultation response that the Government provided on 8 June 2021. For the record, there were over 400 responses to the consultation, including from RIBA—he had concerns that it may not have been involved in the discussion. The consultation helped us to come to a set of conclusions about how we would bring forward the change and take things forward.