Localism Bill Debate

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Localism Bill

Simon Hughes Excerpts
Wednesday 18th May 2011

(13 years ago)

Commons Chamber
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Robert Neill Portrait Robert Neill
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I am disappointed in the hon. Lady’s response, because I thought that we had got a good deal of the way down the track to meet what were sensible concerns. There is a difference between recognising that the establishment of a mayoral development corporation is part of the outworking of London-wide policy, in which the Mayor will have to have regard to the strategic economic and developmental interests of the whole city, which may be different from the individual interests of a single local authority, and recognising that the assembly is the body that this House has already charged with holding the Mayor to account for the way in which he exercises those powers.

There is a difficulty with giving a veto to an individual London borough, because the borough’s interests are very properly not required to be strategic in the same way as those of the Mayor and of the assembly. Often they are, in fairness, and I do not mean to diminish the importance of the London boroughs. As the hon. Lady knows, I spent 16 years as a London borough councillor before spending eight years on the London assembly. That may indicate precocious sadness on my part, but that is a different matter. Both bodies fulfil very important functions, but they are different functions, and, if we are rightly going to put a check and balance on the Mayor’s exercise of his strategic role, we must do so through the assembly—the elected strategic check and balance. The boroughs have an important role in this because the Mayor is required to consult them, among other bodies, and they therefore have a powerful tool in being able to raise their concerns and to lobby their borough elected representative on the assembly to ensure that their case and their voice is heard.

Simon Hughes Portrait Simon Hughes (Bermondsey and Old Southwark) (LD)
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Our colleagues on the London assembly are supportive of the Government’s amendments and new clauses, as are my London colleagues and other colleagues in this place. Let me seek clarification on one thing; I hope that I might catch the Speaker’s eye later to speak on the substance of it. If the Mayor were to set up development corporations in London, would there be any changes in the planning processes in those areas that took democratic control away from the elected councillors? That was controversial under the old urban development corporations set up by the Conservative Government when Lord Heseltine was the relevant Secretary of State.

Robert Neill Portrait Robert Neill
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Yes, the corporations could act in that way. They do not have to, because we have not been as specific as was the case in the past with the old-style development corporations as to exactly what they have to include. The likelihood, it is fair to say, is that they would, because part of the objective of a development corporation generally is to bring the development function and the planning function for a particular area together to speed up development. In practice—I hope that this will reassure my right hon. Friend—the east London MDC that was proposed for the Olympic park area has been involved an iterative process, with a degree of discussion between the Mayor and the five London boroughs affected. There has been some negotiation, which is probably a mature thing to have in the current circumstances. The upshot is that we now have a proposal to which the Mayor and the London boroughs are satisfied they can sign up. The boroughs accept that they cede some planning power for a period, but now do so by agreement with the Mayor. I think the same process can be achieved in other cases.

Robert Neill Portrait Robert Neill
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My hon. Friend is absolutely right, for two reasons. First, the power to set up the corporation is devolved, and a directly elected regional figure, in the shape of the Mayor, takes that decision. Secondly, there is the veto, which did not exist in relation to the other, earlier-style development corporations. There is therefore a significantly enhanced degree of accountability.

Simon Hughes Portrait Simon Hughes
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I heard what the Minister said about the discussions that have been going on in east London between the Mayor and the local authorities. If, for example, the current Mayor or any future Mayor had the further idea that there should be mayoral development corporations south of the river, would that, of necessity, require him to have the agreement of the local authority or authorities in question if they had a different view, given that there could be a conflict? Co-operation is fine, but a difference of view that means that the local authority’s views are disregarded is not so fine.

Robert Neill Portrait Robert Neill
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In theory, a Mayor could seek to disregard a local authority’s views, but in practice we reckon that the new clause makes that unachievable. There are two reasons for that. First, the Mayor will have to consult the local authorities, which will have registered their objection. As with any public law decision, he has to behave in a way that is rational and reasonable within the terms of the Associated Provincial Picture Houses v. Wednesbury Corporation case. Secondly, because of the electoral arrangements in London, the local authority would be well placed to ensure that a blocking majority was created in the assembly to prevent the policy from going through. There is a theoretical possibility that the Mayor would be able to create the sort of rogue corporation that one might be concerned about, but in reality it is pretty much inconceivable.

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Lord Barwell Portrait Gavin Barwell
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My hon. Friend, who is a former member of the assembly, knows that many members are in that position.

The right hon. Member for Bermondsey and Old Southwark (Simon Hughes) referred to urban development corporations. I see that he is in heavy conversation at the moment, but he talked about the lack of democratic accountability in those corporations in the 1980s. It is important to make the point that in this case, the designation of a development corporation would be made not by central Government but by the Mayor of London, who is democratically elected.

I am conscious of the time and know that other Members wish to speak, so I end with two points that Ministers might wish to consider. Schedule 21 deals with the detailed arrangements for mayoral development corporations. Paragraph 1 is about the membership of them, and perhaps the Government could consider a requirement that the people whom the Mayor appointed to them, or at least some of them, should have a connection with the local area covered. That is not mentioned in the schedule. It sets out the need for people to have experience and to have shown some capacity in the relevant functions of the corporation, and for them to have no financial interest. Those are both good and sensible provisions, but there may well be a case for ensuring that at least some members have a local connection with the area and perhaps a relationship with the local authority.

Paragraph 6 of schedule 21 is about committees established by mayoral development corporations. Sub-paragraph (3) states:

“A committee or sub-committee may, with the agreement of the Mayor, include persons who are not members of the MDC, but a majority of the members of a committee or sub-committee must be members of the MDC.”

I, and I suspect other Members, have received representations from both the Mayor and the assembly stating that they would be happy with a much more relaxed rule that gave MDCs more freedom to appoint a greater proportion of people who were not members of its board. Those people may well be members of the local authority or have connections with the area. Given that we have not yet achieved complete consensus on this matter, the Government could look at some of the details of schedule 21, to see whether we can address some of those concerns.

In conclusion, it is greatly to Ministers’ credit that they listened to the debate in Committee and came back with a solution, which I think is a good one that improves the Bill. If they went away and looked at a couple of details on schedule 21, it might be possible to address some of the concerns that hon. Members have raised in this debate.

Simon Hughes Portrait Simon Hughes
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I shall make a brief contribution to what is an important debate for London, which I am happy to take part in once again.

I agree with the hon. Member for Lewisham East (Heidi Alexander) that the two biggest issues that affect my constituents and hers, and that fall directly or indirectly within the remit of local government, are jobs and housing. Most people are most concerned about those two issues most of the time. I am afraid that I come to this debate with long experience in this place. When I was first elected, Lady Thatcher’s Government had just set up urban development corporations throughout the country, of which the London Docklands Development Corporation was one. Indeed, that was the backdrop to my by-election, because my predecessor, Bob Mellish, was appointed as vice-chairman of the LDDC. That was not uncontroversial in Bermondsey, because people in general, and particularly those in the Labour party, did not think that a quango should be given the powers over Southwark, Newham and Tower Hamlets that the LDDC was given, so appointing a Labour MP to the LDDC was not consistent with Labour party policy.

That handover of powers to the UDCs was very controversial, because it meant that planning decisions were taken by a group of unelected people. It was possible to influence the people who took the decisions, but never possible to hold them directly accountable. I used to go to planning committee meetings following lots of community activity—they were not always in Southwark: sometimes, for major planning schemes in the Surrey docks or along the riverside, meetings were held at the LDDC in the Isle of Dogs or elsewhere—but communities often felt alienated afterwards. The legacy is the feeling of remoteness when decisions are not taken by locally elected representatives.

I am not saying that the local community comes away feeling deliriously happy after every local council planning committee meeting. I have seen enough local planning committees in Southwark over the years make controversial planning decisions—under Labour, Liberal Democrat and Liberal Democrat-Conservative coalition administrations. However, at the end of the day, the public at least know that they can kick those people out at the next election if they want to do so. My premise, therefore, is that the starting point should always be accountable decision making, particularly on planning matters, and particularly on the big planning matters that “urban development” by definition implies. This is not about whether someone can have a bedroom in the mansard roof of a flat or house, or whether someone’s garage can be an extra bedroom; this is about schemes for industrial sites and other things on that scale.

Lord Jackson of Peterborough Portrait Mr Stewart Jackson
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I hasten to say that I do not know as much about the right hon. Gentleman’s constituency as he does, but surely the history of the LDDC is that the political administrations in, for instance, Tower Hamlets and Newham, which happened to be Labour-run at the time, were viscerally hostile to central Government, and refused to undertake any realistic action on regeneration or to face up to post-industrial decline in their boroughs. Central Government was therefore forced to step in to provide a template for regeneration and housing.

Simon Hughes Portrait Simon Hughes
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I shall not help the House to hold a seminar on London in the ’70s and ’80s, which would actually be very interesting. The hon. Gentleman is nevertheless right. Local authorities did not get on with development. There were frozen developments, including one in the Royal Docks and some in my constituency, after the closure of the London docks in the upper pool in places like Bermondsey, and their move down to Tilbury. That is why the Government intervened, and I understand why they did so. It was necessary to get something moving. Whatever else we say about it, the LDDC certainly did that. Its legacy has, in general terms, been very benign. The regeneration has been hugely successful. Southwark is as prosperous as it is, and the business rates that are collected in Southwark are as high as they are, because of the regeneration along the riverside from London bridge down to the end of my constituency at the other side of the Greenland dock, on the border with Deptford.

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Nick Raynsford Portrait Mr Raynsford
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I was a little surprised when the right hon. Gentleman said that he supported the restoration of the GLA. My recollection is that he and the Liberal Democrats voted against the creation of a Mayor of London. He might have supported the concept of an assembly, but the Liberal Democrats did not support the GLA architecture as it exists.

Simon Hughes Portrait Simon Hughes
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The right hon. Gentleman is of course correct. He knows that as well as anybody, because it was his plan that the Government were delivering on. Liberal Democrats wanted devolution to London, but we were not sold on that model, which is why we still—

Lindsay Hoyle Portrait Mr Deputy Speaker (Mr Lindsay Hoyle)
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Order. May I just say that we need to get back to dealing with the new clause? We are having a history lesson in the Chamber. As interesting as that is, other people are waiting to speak. I am sure that the right hon. Gentleman now wishes to address the new clause.

Simon Hughes Portrait Simon Hughes
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I stand rebuked, Mr Deputy Speaker. I was tempted by the right hon. Gentleman, but I will not be any more. I will make a few more comments, and then sit down.

The next issue is how exactly the transfer of powers back to London will work. It is certainly right that, as the Bill proposes, we get rid of the London function of the Homes and Communities Agency, which is a quango, and transfer it to a democratically elected Mayor answerable to the 25 elected members of the London assembly. That is a good thing. It is also certainly right that the Government abolish the Government office for London. There is no need for a Government office for London as well as a Mayor, a London assembly and a Greater London authority. All those policies are heading in the right direction.

We now need to solve the further dilemma of how we strike the right balance between London-wide decisions, which are perfectly proper, and the interests of the boroughs. I understand that there is still some unresolved tension in that regard. My colleagues on the London assembly and across London think that, on balance, the Government are heading in the right direction, so today, although obviously the hon. Member for Lewisham East is entitled to make her case, we cannot support her. However, I do not want her to take that to mean that there are not further conversations to be had. Obviously the Bill will go to the House of Lords, and there will be opportunities to look at these things afresh.

I am hopeful that today’s debate will flag up the need to ensure—I am happy to have further conversations with colleagues about this—that the new architecture is the right architecture. I heard clearly what the Minister said about the Mayor’s power being subject to the two-thirds support of the London assembly, and I agree that that amounts to a requirement for a cross-party endorsement or cross-party veto. That will be a welcome control mechanism. I do not criticise the fact that the representatives, particularly the constituency representatives, should be able to speak for their constituencies, including for the borough councils within those constituencies, which is one of their jobs.

Heidi Alexander Portrait Heidi Alexander
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What does the right hon. Gentleman make of what I see as something of a conundrum in the Bill? If a neighbourhood forum in his constituency came up with a neighbourhood plan, it could be completely overridden by the establishment of a mayoral development corporation, over which his community, councillors and local authority will have had no say.

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Simon Hughes Portrait Simon Hughes
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They will have had a say, because, as the hon. Lady will know, the Bill contains a requirement for formal consultation with a list of people, including every local authority and others.

The Government are trying to take power from the centre and hand it down to the regions, including London, and then further down, not just to local authorities but to neighbourhoods. Southwark has eight community councils, which is very welcome. That is what the Under-Secretary of State for Communities and Local Government, the hon. Member for Bromley and Chislehurst (Robert Neill), who has responsibility for planning, asks us to support. However, that does not mean that there should not be overarching responsibilities on a London-wide basis.

I say to the hon. Member for Lewisham East that there is certainly a wish to continue arguing for a London-wide responsibility for housing strategy, and we need to work out the best way of delivering that. Boroughs will do their own thing to develop as much as they can, but we will clearly need a London-wide policy to meet the needs of the homeless, asylum seekers and refugees, for instance, who do not immediately and naturally become the responsibility of a particular borough, because they do not have a fixed link with that borough. I and my London colleagues are keen to work with her and her London colleagues and the Minister and his colleagues to try to ensure that at the end of the deliberations we put in place the best possible structure, providing appropriate responsibilities at the level of boroughs and the Mayor and the London assembly, and as far as possible allowing for democratic accountability for all policies, particularly housing and regeneration.

Lord Barwell Portrait Gavin Barwell
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I tried to address in my speech the point that the right hon. Gentleman is making, but he was in discussion with a colleague at the time. If paragraph 6 of schedule 11 was amended, it would give the Mayor more flexibility to put people from neighbourhood planning groups or local authority representatives on to the MDC planning committee. That may be one way of squaring this circle.

Simon Hughes Portrait Simon Hughes
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At the moment, of course, the legislation provides for how the Mayor chooses the people to be on the development corporations. That could be looked at again. I do not think that my colleagues would object to there being nominees either from the local authorities in the areas in question—whether from more than one or a single local authority—or from the community councils and elsewhere. I think the hon. Gentleman’s idea, which we need to consider, is a good one.

There needs to be good democracy in London whereby people can be held to account for the decisions they make. The fact that the London Development Agency is going is helpful, because it means that the Mayor will be responsible for London’s economic regeneration as a whole. That is what mayors of big cities should do. Whether people support mayors in big cities is a separate debate, but if we have them, that is what they should do. The Mayor should be held to account by the assembly, so I hope that we can say to the Minister that he is on the right track, but that he should remain alert to the concerns expressed by the hon. Member for Lewisham East and her Front-Bench colleagues. If we can get it, we need to aim for consensus by the time the Bill completes its passage through the House of Lords and Parliament.

Lord Jackson of Peterborough Portrait Mr Stewart Jackson
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I am pleased to follow the right hon. Member for Bermondsey and Old Southwark (Simon Hughes). It goes without saying that I support the Government amendments. The Bill will disturb the equilibrium that we established in 1998 and the settled view of London governance. The right hon. Member for Greenwich and Woolwich (Mr Raynsford) piloted the legislation on this matter through Parliament. I had the pleasure—generally speaking—of serving with him in the last Parliament on several Bill Committees, but in some respects he is resiling from earlier commitments. His proposals opposing the Government amendments and the views expressed ably and articulately by the hon. Member for Lewisham East (Heidi Alexander) seek effectively to undermine the authority and autonomy of the boroughs. They would set up an institutionalised conflict between the boroughs and the Greater London authority, with the Mayor quite possibly acting as the de facto referee and invigilator. That is a serious concern.

On the hon. Lady’s amendment 351, we should acknowledge the consensus in the House on the need for more affordable housing, better-quality housing and aesthetically pleasing housing, and above all for regeneration to consolidate London’s position as the pre-eminent city in Europe. However, looking at what was delivered in the dozen or so years of the regional development agencies, when we had a centralised policy, and an over-prescriptive and—one may even say—draconian approach to housing targets, I am not convinced that instituting a pan-London borough body would achieve the key objectives that we all seek.

I mentioned earlier, albeit perhaps in a slightly irreverent way, that for eight years while I was a London borough councillor, I served on bodies that were largely non-political. To get agreement on waste transfer and ecology centres was difficult enough, so making value judgments as between different boroughs and in effect resiling from a strategic overview of what is good for a whole city or region probably would not work. Incidentally, I have to disabuse my hon. Friend the Member for Croydon Central (Gavin Barwell) of one notion. Peterborough is, in fact, the greatest city in the world, but we might have to beg to differ on that. However, with all due respect to the hon. Member for Lewisham East, while my heart agrees with her, my head says that her proposals probably would not work or deliver what we wish.

Let me briefly address the Government amendments and the points made by the hon. Member for Worsley and Eccles South (Barbara Keeley) and the right hon. Member for Greenwich and Woolwich. As the right hon. Member for Bermondsey and Old Southwark said, we would be returning to something like the situation that prevailed with the London Docklands Development Corporation, with the Secretary of State required to make the value judgment that neither the boroughs nor the GLA could sort something out, and therefore to impose a regeneration body. We have moved on from that. We now have a more mature and nuanced political culture. Once we establish the bona fides of London governance through the GLA and the Mayor, with the proviso that there will effectively be a two-thirds veto for the directly elected individuals, who will debate among themselves and with their boroughs, it would seem invidious to undermine that by putting so much potential power—again, effectively in the form of a veto—in the hands of the Mayor.

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Lord Stunell Portrait Andrew Stunell
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The Bill brings forward a package of reforms to social housing. Taken together, they strengthen localism, giving greater flexibility to local authorities and to social landlords in providing the needed housing and the right basic safeguards for tenants. The provisions will allow landlords to make better use of resources, allocating existing homes more sensibly, making sure that support is better focused and providing the right basic safeguards for tenants.

The Bill’s provisions include: giving back to local authorities the freedom to determine who should qualify to go on the housing waiting list; new flexible tenancies in addition to, rather than replacing, secure and assured tenancies for council and registered social landlord tenants; flexibility to meet the homelessness duty with an offer of accommodation in the private rented sector; and, perhaps most popular of all, replacing the unpopular housing revenue account subsidy with a devolved system of self-financing.

New clause 19 relates to that, ensuring that the Secretary of State may continue to enter into agreements with local authorities to determine that specified new homes be exempt from the requirement that most of the receipts from any sale under the right to buy should be surrendered to central Government. This will help remove obstacles to local authorities investing their own resources in new homes. To be clear, new clause 19 preserves an existing relaxation in the rule that requires 75% of receipts to be paid to the Treasury in certain circumstances.

The Government are also taking the opportunity at this stage to make technical improvements with regard to flexible tenure and succession, which I would like briefly to outline. Amendments 202 and 203 exclude shared ownership leases from the landlord repairing obligation, in line with established practice and policy.

Amendments 191 to 201 are needed to rectify drafting errors in clauses 134 and 135, which deal with succession rights. They clarify the original intention that where there has not already been a succession, someone who is not a spouse or partner can succeed where there is an express term in the tenancy agreement to allow it.

The Opposition have tabled a number of amendments. Proposals for social housing reform proved to be one of the more contentious areas of the Bill in Committee, with strongly held views often reflecting points of principle. That is reflected in Opposition amendments 13 and 14 as well as in amendments 271 and 272, which would remove flexible tenure in the one case or, frankly, make it unworkable in the other. There have been some misunderstandings over points of detail, so it would be good for me to address them.

Simon Hughes Portrait Simon Hughes
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Before my hon. Friend deals with that, will he put it on the record that nothing in the Bill changes the status of any person who is a tenant in a local authority home or a housing association social home in England in respect of security of tenure? Will he also confirm that nothing in the Bill will require any local authority or any social landlord to change that policy in future—in other words, that the Bill is enabling, not prescriptive, in that respect?

Lord Stunell Portrait Andrew Stunell
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My right hon. Friend is right on both counts.

Let me begin by saying that, as I ended up summing up a two-hour debate in 16 seconds yesterday, I hope the House will forgive me if I do my summing up at the start of today’s debate.

There are some concerns that I think any sensible observer of the social housing market understands and shares. The current market does not work as well as it could. The right hon. Member for Don Valley (Caroline Flint), the shadow Secretary of State, made that point herself when her party was in government, and the facts speak for themselves. There are about 5 million people on the social housing waiting list, and a quarter of a million overcrowded households already in social housing. At the same time, there are 400,000 homes in the social housing sector in which more than one bedroom is under-occupied.

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Lord Stunell Portrait Andrew Stunell
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My hon. Friend makes an important point, which he made in Committee. As he knows, there are a number of local accreditation schemes and in some boroughs it is a requirement that the landlords of tenants who receive housing benefit in their area are members of an accreditation scheme of one sort or another. I will take stock of his point. The Government are not minded to introduce a national scheme, but there may be aspects that he is rightly drawing to our attention for further consideration.

Simon Hughes Portrait Simon Hughes
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I was reassured by my hon. Friend’s words about the Government’s intention that people should not have to move outside the district or community. The Secretary of State for Work and Pensions has given a similar reassurance. There is particular concern in Greater London because of the acute pressure on property, property prices and so on. I am sure my hon. Friend is aware that his right hon. Friend has agreed, together with, I hope, the responsible Minister at the Department for Work and Pensions, Lord Freud, to meet to see whether, across parties and with the Mayor of London, the housing associations and local authorities, the remaining concerns can be alleviated. I hope my hon. Friend and his colleagues will give full assistance to that measure as the Bill proceeds from this place to the other end of the building.

Lord Stunell Portrait Andrew Stunell
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Yes. Perhaps my words were a little too opaque a little while ago when I said that we are prepared to consider the need for additional protections for homeless households. Clearly, what my right hon. Friend has just set out forms part of that process.

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Alison Seabeck Portrait Alison Seabeck
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I entirely agree with my hon. Friend. During the general election, we fought and battled hard throughout the country to get those assurances from the Conservatives and Liberal Democrats, but they are now reneging on them. It is as simple as that.

Simon Hughes Portrait Simon Hughes
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I am very clear that secure tenancies are a good thing, that council housing is a good thing, and that housing association properties are often good things—they are not always as good as council properties. Will the hon. Lady confirm that the proposal does not affect secure tenants? Does she now accept that? Will she also confirm that the proposal affects people only in future, and that it gives discretion to local authorities? If there were any Government imposition on local authorities, I would not support the proposal for one second, but the proposal gives discretion.

Alison Seabeck Portrait Alison Seabeck
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If the right hon. Gentleman will allow me, I shall address some of those points later in my speech. I find the Liberal Democrat position quite extraordinary.

The Liberal Democrat manifesto said nothing on the issue, and as I pointed out, the Housing and Local Government Minister, who is, sadly, no longer in the Chamber—he obviously has more interesting things to do than listen to a debate on housing—said that

“there is no chance of, or way in which, a social tenancy can be broken or changed for anybody already in council or housing association homes.”—[Official Report, 28 February 2011; Vol. 524, c. 19.]

In November, I asked the Minister of State, Department for Communities and Local Government, the right hon. Member for Tunbridge Wells (Greg Clark) whether he would give me his personal guarantee that secure tenancy rights would not be changed. He gave a brief, direct answer: “Yes.” If only the Bill that those Ministers now promote were consistent with their previous statements in the House.

The framework published by the Department is quite clear that tenancies will be secure only for tenants who have a secure tenancy before 31 March 2012. Therefore, tenants with a secure tenancy will lose their security if their family grows and they need to move to a larger home, or if a person wishes to downsize to a smaller home and the only properties available for re-let are offered on a flexible tenancy.

The Homes and Communities Agency is clear that the expectation is for both flexible tenancies and affordable rents in re-lets and new developments. In future, those families will have an absolutely impossible choice. Do they stay in a home that is no longer suitable for their needs, leaving them overcrowded but with the security they crave and a rent they can afford, or do they accept the move to a larger home, lose their security, and risk losing their home altogether if they are deemed no longer to meet the eligibility criteria for social housing, which could happen two years down the line?

Simon Hughes Portrait Simon Hughes
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indicated dissent.

Alison Seabeck Portrait Alison Seabeck
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The right hon. Gentleman sits there and shakes his head, but there are enough questions about this measure. The Minister had four goes at answering those points in Committee, but his answers were not entirely satisfactory. I urge the right hon. Gentleman either to abstain on Government new clause 19, or to come into the Lobby with the Opposition.

Simon Hughes Portrait Simon Hughes
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I appreciate that this is very serious and I am listening very carefully to the hon. Lady—I do not doubt her commitment. I am open to correction, but my understanding is that in the circumstances she describes, when somebody needs to move from a council home because their family has grown, it does not necessarily follow that they will be unable to be offered a secure tenancy where they go to. If Southwark council kept secure tenancies for all its council stock, people would move to a secure tenancy if they moved to another council property. Will the hon. Lady please at least accept that that option will be just as possible next year as it is this year?

Alison Seabeck Portrait Alison Seabeck
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The right hon. Gentleman makes a point about Southwark council, but evidence suggests that significant numbers of councils—largely Conservative councils, but no Labour councils—are already saying they want to introduce this proposal quickly. The system allows for discretion, but the evidence suggests that it will not be used, and that Hammersmith and Fulham, Westminster and other councils will simply say, “Sorry, no!” If someone chooses to move—the key point is the choice—they will probably find themselves with a higher rent and a shorter tenure. These proposals contain no guarantees and are inadequate, which is why we tabled our amendments. We need to consider the tenants. The council in Southwark could become a Conservative council in the future—

Simon Hughes Portrait Simon Hughes
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It’s unlikely.

Alison Seabeck Portrait Alison Seabeck
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Perhaps, but the point is that there is clearly an appetite among Conservative councils for making use of this provision, offering the minimum they need to and removing security of tenure from people who choose to move.

It is not a choice I would wish on any family, and it will create disincentives to move within the sector by throwing sand in the wheels. We need to make it easier for people to move within the sector, yet the Government’s proposals will make it harder. If the Government press ahead and create this dog’s breakfast of a flexible tenancy, we want them to stick to their promise not to break secure tenancy rights of existing tenants, even if they choose to move. I and my right hon. and hon. Friends raised this issue with the Minister in Committee during the stand part debate on clause 132. He revealed that the previous guarantees given by his ministerial colleagues were worthless, when he said that the decision on whether tenants would keep their security of tenure would rest with the discretion of the landlord, but that

“if a tenant chooses to move to an affordable rent property, it is reasonable that discretion should be available to the landlord as to whether that remains in place”.––[Official Report, Localism Public Bill Committee, 8 March 2011; c. 856.]

For us, that is simply not good enough. It does not retain security of tenure, and gives landlords a degree of flexibility that we think is negative for tenants. That is why we oppose it. I am disappointed that amid the 234 Government amendments and new clauses there is no amendment to match their rhetoric. That is why we tabled amendment 271. The Government might not be willing or able to stand up for the rights of existing tenants, but the Labour party certainly is.

Amendment 277 is similar to an amendment debated briefly in Committee at the end of a morning sitting. At the time, the Minister said that clause 134 was part of a cleaning-up exercise, to which I said we would leave things there and consider whether we needed to come back to the issue on Report. As the House of Commons Library rightly points out, the clause removes the statutory right of those other than spouses and partners to succeed to a secure tenancy. Currently, in the absence of a spouse or partner, the close relatives of a secure tenant who have resided in a dwelling as their only or principal home for 12 months prior to the tenant’s death also have a right to succeed to the tenancy.

Our amendment would extend statutory succession rights beyond spouses and civil partners, to those who have acted as live-in carers for at least one year and siblings who have co-habited for at least one year. Carers contribute an enormous amount to society and to those—almost always close family members—for whom they care. We will all know of cases in our constituencies in which family members have moved into their parents’ or other relatives’ homes to act as carers. It is an act of love that can place tremendous strain on the carers, and the commitment it requires should not be underestimated. Nor, on a more transactional level, should the amount of money they save the Treasury be underestimated. Age UK, in its submission to the Bill Committee, wrote:

“Given the contribution of carers, they deserve to succeed to a tenancy or have an offer of alternative social housing with a lifetime tenancy.”

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Now that I have explained my amendments, I hope that the Government will be more thoughtful and reasonable in responding to them than was evident in the line that the Minister adopted earlier. If there is no change, I sincerely hope that all Members of this House who care about the future of social housing will vote to safeguard the interests of the public, users of the service, tenants and homeless people rather than those of the providers.
Simon Hughes Portrait Simon Hughes
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I remind the House that one of the new clauses and amendments in this group is my new clause 38. The Minister did not specifically refer to that in his introduction. I had helpful conversations with Ministers before tabling it, and I hope that the Government will be sympathetic towards it. I understand that it may not be possible to agree to it today, but obviously there will be other opportunities if the principle is accepted.

My proposal deals with the straightforward point that, often, an existing occupier of land who is acting perfectly properly and within planning permission, such as a bakery, a print works or another business, is challenged by people who move in nearby—often it is residential occupiers, who in my constituency will have paid quite a large price for their property—who complain about the activity that was known to happen there when they moved in. People who had moved into Bermondsey street alongside the Ticino bakery, which has been there for decades, if not centuries, complained that there was a noise at 4 o’clock in the morning because people were baking bread. That complaint is completely unacceptable. People who had moved in opposite the print works on Surrey docks complained that vans came in and out in the middle of the night to deliver newspapers. That is not altogether surprising and is absolutely obvious. That complaint is therefore unacceptable. I could go on. People who move in next to farms complain about the cockerels crowing, people who move in next to churches complain about the bells ringing, and people who move in next to mosques complain about the imam calling people to prayer. Those complaints are all nonsense.

I want it to be clear that caveat emptor—or caveat mover-in—is the principle that we should apply. The important point is that such unacceptable complaints threaten businesses. They threaten the livelihood of the farmer, the baker, the print works or the night club. My constituency is regularly afflicted by people who think that they have a right to complain, even though they are the Johnny or Joanna-come-lately. I hope that that issue can be dealt with.

I will move on to the wider subjects in this group of amendments. I am very supportive of the comments of my hon. Friend the Member for Mid Dorset and North Poole (Annette Brooke), who expressed her concern not that the Government are not listening, but that they may need to go further in the House of Lords to accommodate the points made by those of us who for years have had a passionate concern for social housing and council housing.

I commend the speech of my hon. Friend the Member for Brigg and Goole (Andrew Percy). I, like him, have an absolute commitment to council property, and think that we should have more, not less, of it. I think that local authorities should be encouraged to build it, not discouraged from doing so. He speaks from his personal and constituency experience. I think that I am still the Member of Parliament who represents more council tenants than any other Member in England, so this issue is hugely important in my constituency.

Of course we need to deal with under-occupying and with the fact that people may become council tenants when they are poor and then become very rich. It seems to me that the way to deal with that is not to evict them, but to ask them to pay more money for the property, so that rather than changing their status, the cost of the property reflects their ability to pay. Otherwise, communities are broken up. Social housing should provide people with a spare bedroom to deal with the flexibility of the household. The hon. Member for Plymouth, Moor View (Alison Seabeck) and my hon. Friend the Member for Brigg and Goole referred to that issue. As they grow older, a couple may need two bedrooms rather than one. Somebody might need a carer or their family or friends to come and stay. I therefore hope that we will always assume that there should be a spare bedroom.

Lastly, I hope that while accepting the principle of flexibility, the Government will have a presumption that the stability and security of communities is what we are striving for. Every year, about a quarter of the electors in my constituency move on or off the electoral roll. They do not necessarily move in or out of the constituency, but sometimes within it. I appreciate that the position in inner London is more extreme than elsewhere. However, we must build communities, and that is done by having more, not less, security. That does not mean that there should be no flexibility or that councils and other providers should have no ability to have tenancies that are not secure, but security of tenure should be the presumption. I hope that as the Bill goes from this place to the other place, the concerns from across the House will continue to be considered. This is not just an urban issue, but a rural one.

I look forward to Ministers being positive about the noises that they have heard from Government Members, as well as from Opposition Members, this afternoon.

Sheila Gilmore Portrait Sheila Gilmore
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I rise to speak in support of the amendments tabled by my hon. Friend the Member for Plymouth, Moor View (Alison Seabeck). There appears to be inherent conflict between different Bills that are proceeding through the House. I have been sitting on the Welfare Reform Bill Committee, and it seems to me that we are not looking at the whole picture. That Bill is concerned with, among other things, the amount of housing benefit that is paid out. There are concerns about the rising bill and what has to be done about it, and the Government are proposing measures to bring down the bill that will affect people up and down the country.

At the same time, there are proposals in the Localism Bill that would have the opposite effect. For example, it would create so-called affordable houses at 80% of market rate. However, the people who need those houses, the people everybody is wringing their hands about, will not be able to afford those properties unless they can get housing benefit, which means that the housing benefit bill will rise. The Government are cutting benefit for some people and making their lives more difficult, but at the same time creating measures that will inherently increase the housing benefit bill.

In the same way, increasing the use of the private rented sector for homeless families will have an effect on the housing benefit bill, because inevitably their rents will be higher than they would be if we could find genuinely and truly affordable homes for people. I am concerned that two parts of the Government appear to be proceeding in conflicting ways.

Another aspect of welfare reform that we hear about constantly, in the Welfare Reform Bill Committee and elsewhere, is the need to make work pay and get people into employment, which we all agree about. Flexible tenancies may well have exactly the opposite effect. I was not on the Localism Bill Committee, so it may have been different there, but I noticed today that the one issue related to flexible tenancies that the Minister was comfortable in talking about was the vexed question of houses that are under-occupied or overcrowded. We all know that that is a problem, and it is not a simple one to address. Flexible tenancies are not only intended to address that situation, but that was what the Minister wanted to talk about. Perhaps it is the slightly more cuddly side of flexible tenancies. It might make people think, “Oh, I can see the point of that. We have to get a bit of flexibility to get that changed.”

Actually, flexible tenancies are about much more than that. If they are implemented in the way suggested in some of the speeches that we have heard and the articles that we have read, it will mean that people who are trying to get back on their feet and have found jobs may be told that it is time to leave their home. What incentive does that give people to enter employment or work harder to increase their income?