Levelling-up and Regeneration Bill (First sitting)
Tim Farron ExcerptsTuesday 21st June 2022
(2 years, 3 months ago)
Public Bill CommitteesRead Full debate Levelling-up and Regeneration Act 2023 View all Levelling-up and Regeneration Act 2023 Debates Read Hansard Text Read Debate Ministerial Extracts Amendment Paper: Public Bill Committee Amendments as at 21 June 2022 - (21 Jun 2022)
The Chair
I call Tim Farron. Will you bear in mind I have another question after you? Thank you.
Tim Farron (Westmorland and Lonsdale) (LD)
Q
Professor Dame Ottoline Leyser: As I said previously, I completely agree that this is a multifaceted problem that has to be thought of in a joined-up way, which is why the overall approach set out in the Bill is good. My role is CEO of UKRI, so I am not in a position to provide any expertise or advice on how to solve the housing problems, but I would hope that you would have the opportunity to ask those who are able to address that question to give evidence to the Committee.
Tim Farron
Q
Professor Dame Ottoline Leyser: Again, the specifics of that question are well outside my area of my expertise. From an R&D point of view, I hope I have been stressing all along that the key to success is specificity—it is understanding local regions and therefore understanding what the bottlenecks are to their growth and targeting investment very specifically in the context of those bottlenecks. That obviously requires really deep local knowledge and local empowerment.
I am absolutely in favour of careful consideration of local needs in the investments that are made. That is very much how UKRI is going about thinking about our R&D investments. I would hope that that approach is considered more widely, because I do not see how one can tackle these problems unless it is through putting in place specific, targeted, well thought-through locally aligned interventions.
Rachael Maskell (York Central) (Lab/Co-op)
Q
Professor Dame Ottoline Leyser: As I have said, this careful alignment of multiple interventions is crucial precisely because if one rushes in with a particular input, its knock-on consequences are not always foreseen, and we need to be able to respond to them and adjust accordingly. It is critical to think hard upstream about the aligned series of investments being made, and to monitor and feed back, so that where the evidence begins to grow and the chosen interventions have some of those knock-on and unforeseen consequences, they are identified and rectified before things get dug in too deeply. Exactly as you say, growing those clusters is very much about creating the right ecosystem and the right sets of interactions between the different parts. That drives positive feedback and sucks in additional investment in the virtuous cycle that we are all seeking to build. That is critical.
The answers are very specific and depend on the particular element of the overall system that you are looking at. From our point of view, we are really keen to ensure that our investments build synergy between local specialisations and growth, and national capability and capacity. It is important that our investments outside the greater south-east do not in any way undermine the extraordinary powerhouse that the greater south-east is for our R&D activity, and that, rather, those two things are synergistic with one another and that the skills and specialist areas developed in particular parts of the UK work in synergy with activity in other parts of the UK. That local-national map is critical to ensure that we do not drive the negative consequences of interventions, which, as you have highlighted, are a risk.
Neil O’Brien
Q
Tracy Brabin: It is helpful that we have real strength in our leaderships, because they are really experienced leaders. We are all focused on delivering for the people of West Yorkshire, and it has not come to a point where it has been down to my vote. We get a consensus before we go to a vote, and the opposition members on the CA are very helpful, because they provide the check and challenge to get us to a point of compromise so that we can bring everybody with us in delivering for the people of West Yorkshire.
Tim Farron
Q
Tracy Brabin: Affordable and sustainable homes are a priority for me, because it is personal—I grew up in social housing. My commitment to the people of West Yorkshire was to deliver 5,000 affordable and sustainable homes. Over the years, we have seen the number diminish, partly due to right to buy and partly due to the lack of funding. I am able to work with the councils and push them to get to further building target, which has been really helpful. The brownfield fund for housing has enabled us to really focus on the spots that blight our communities, and to work with developers.
For the first time, the West Yorkshire housing associations have all come together under one umbrella to deliver on my housing pledge and to help us get there, but it is still a challenge. Although the £22 million extra in the Bill for brownfield housing is welcome, it comes with the same strings attached and the same expectations from the Government, but with less time to deliver. There is an expectation that we have more freedom, but we need to get away from the strings that hold us back from delivering.
Let us not forget that we have areas in West Yorkshire where the housing stock is really low cost, and we are trying to square the circle of how we build more when we have the Government’s expectations about market failure. We have met Homes England since I became Mayor. I am very interested to see how that relationship develops and how we can work more closely on affordable housing, because the need in our region is growing exponentially. The lists of people waiting for a secure and affordable home are far too long. Ben, I do not know whether you want to talk more technically.
Ben Still: Thank you, Mayor. There is a lot in the Bill that could potentially be helpful to local authorities in unlocking and developing land. The issue that we face in West Yorkshire is much more about the viability of housing sites than about pressure on land and so forth. This is a good example of where the Mayor working in partnership with the local authorities is not just about the legislative provisions, but about the strength of the partnership. The Bill does not change the fundamental relationship between local authorities and Mayors with regards to who is responsible for the delivery of housing.
Tim Farron
Q
Tracy Brabin: What may help more is the strategic planning, which I understand has not been agreed because the planning was going to be changed from Government, so we do not have clarity on our strategic planning powers. It would be incredibly helpful if we got some conclusion on that.
Ben Still: I might add that the common theme in many of our answers is that what is needed is not necessarily additional powers, but the freedom to work with local authorities to deliver the right solutions in the right areas. That is what we will be looking for in the Bill as it progresses, namely the ability to take local decisions within a guiding framework.
Tracy Brabin: May I add a supplementary point? The city region sustainable transport scheme—the big transport fund of nearly £900 million—has felt as if it is really heading in the right direction. It is really progressive that it is multi-year. It is money that we can really deliver; it is long term, and it is about local freedoms. However, in implementing it, we are getting check and challenge from Government about, for example, whether we can have silver bins in a particular project or a grass roof on a train station.
It is really important when the Committee is looking through the Bill to identify how Government can enable Mayors to make those decisions and trust them to deliver, because if we focus on outcomes rather than processes, then I think we can deliver for Government and be challenged as to whether we have delivered against the 12 missions once those schemes have been approved.
Rachael Maskell
Q
Tracy Brabin: Thank you, Rachel. I would say that poverty is everywhere. It is not one region over another; it is everywhere. And poverty is expensive. Our mission in West Yorkshire—I know that other Mayors share this mission—is to close that disadvantage gap, to close the wage gap between the highest earners and the lowest, and to close the health inequalities that blight some of our communities. Some of our communities were extremely badly hit by covid, particularly in West Yorkshire, because of various circumstances, and it will take us a long time to recover.
However, Rachel, in direct response to your point, I would say that transport really preoccupies most of the Mayors—how can we make sure that we can get our talented people to opportunity? We have seen the HS2 Bill being laid before Parliament, and how frustrating it is for the people of West Yorkshire to see so much investment going into one side of the country, when we know that levelling up and tackling poverty are both absolutely about making sure that people can get to good jobs, and to colleges and to skills training, and so on.
As the M10, we work together to try to improve transport. Collectively, for example, Andy Burnham, Steve Rotheram and I work on buses, which is the transport system that the majority of people in West Yorkshire use. We are reducing bus fares, capping single trips to £2 and making it £4.50 for a daily pass. We are doing what we can to make sure there is more money in people’s pockets and that transport works. However, it is more than a structural problem, Rachel, in that transport has to work, and Government must invest. I know that it is one of the mission statements, and I know that Government want to do it, and we can help them to do it.
Alex Norris
Q
Mairi Spowage: Yes, I think that is possible. In terms of the sorts of metrics that we could use, it will be important that the metrics used capture the outcomes of what we are trying to achieve and not just inputs or outputs, but I do think it will be possible, and I agree with you that it makes much more sense, when we are thinking about whether the interventions that we are pursuing are making progress on the outcomes that we are interested in, to look at those as a suite or a dashboard of indicators, rather than trying to come up with some index overall. Yes, absolutely, it should be possible to come up with a suite of indicators that are broadly agreed upon. However, there are things like the Scottish national performance framework, trying to measure the 11 national outcomes that the Scottish Government have set out through consultation with Scottish public life and communities about what is important. Just be aware: 81 indicators are used to capture that, and having 81 indicators makes it quite difficult to say overall whether we feel we are progressing to the sort of Scotland that we want to see. It can be difficult to come up with something that is comprehensive enough and that does not become unwieldy.
Tim Farron
Q
Mairi Spowage: It is a massive problem. For all the businesses we talk to on a regular basis right now, it is their No. 1 issue. They are very concerned about their energy, fuel and input costs going up hugely, but their biggest problem is sourcing staff, particularly businesses in rural areas. It means that they do not open as much in many cases, particularly when we talk to hospitality businesses—they are not serving non-residents for dinner, or they are not opening on all days of the week. That seems to be quite common across the Scottish businesses we talk to on a regular basis, so it is an absolutely huge problem.
What is causing it? Well, for many years, there has been a movement—within Scotland at least, which I am more familiar with—from rural to more urban areas. In Scotland, there has been movement from most areas to Edinburgh and its surrounds, to be honest. That is projected to continue. If it does, that has some pretty huge consequences for rural areas. Obviously, housing plays into it as well, with young people in an area being attracted away, perhaps to study, but also for employment, and not being able to afford to buy houses in the local area. Certain parts, particularly the highlands, have huge issues with second-home ownership dominating particular settlements.
Those are all issues. With some of the pressure valves that we used to use a lot in rural areas in Scotland around EU labour, it is not quite the same situation any more, so we are not seeing the same supply of labour from that sort of source that we did in the past. That definitely seems to be causing issues, particularly in hospitality and social care.
Tim Farron
Q
Mairi Spowage: I suppose some of things we have talked about—improved digital connectivity, improving transport connectivity—are likely to make some areas seem more accessible than they were before, particularly when that might connect people to employment centres. Investing in connectivity, both digital and transport infrastructure, is likely to improve the situation for rural areas. However, we also have an issue with labour supply, and the outlook for population overall for areas like Scotland is not good in the aggregate, as well as having to think about the issues of digital and transport connectivity.
Tim Farron
Q
Mairi Spowage: It is difficult, because we have had a very strange couple of years, and the data tend to be very lagged at the sub-UK level for us when understanding what the impacts might be on regional growth. The leading indicators we have, on payroll employment, wages and things like that, suggest that lots of areas of Scotland seem to be lagging behind other areas of the UK, but some of that is in relation to the oil and gas industry in the north-east, which right now is the poorest area of the UK in wage growth, since pre-pandemic. There are interesting things going on in the north-east, because of the oil and gas industry. The highlands and islands of Scotland also seem to be lagging behind a bit in wage growth and payroll employment growth. So, not yet, I think, is the answer. This is one of the challenges with sub-UK statistics, which I hope that any investment in statistics might deal with—we have to wait so long to find out what is happening in economies across the UK.
The Chair
Any further questions, colleagues? No. Professor Spowage, I thank you for your evidence. It is much appreciated. Thank you for giving us your time and expertise today.
That brings to a conclusion our morning sitting.
Ordered, That further consideration be now adjourned. —(Miss Dines.)
Levelling-up and Regeneration Bill
Tim Farron ExcerptsWednesday 8th June 2022
(2 years, 3 months ago)
Commons ChamberRead Full debate Levelling-up and Regeneration Act 2023 View all Levelling-up and Regeneration Act 2023 Debates Read Hansard Text Watch Debate Read Debate Ministerial Extracts
Tim Farron (Westmorland and Lonsdale) (LD)
I had looked forward to this Bill, so it is disappointing that the opportunity seems to have been missed. This feels like not a levelling-up Bill but an unambitious planning Bill. There are huge environmental, housing and planning control crises to be solved, but the Bill has not done so.
I will focus on some of the issues affecting rural communities such as mine in Cumbria and in Northumberland, Devon and Cornwall. These areas are under huge pressure. We have seen a housing crisis become a housing catastrophe over the last couple of years. I saw a story in last week’s Sunday Times about Langdale in my constituency, where 90% of houses are second homes. Up to 80% of houses that changed hands during the pandemic went into the second home market. We have seen the collapse of the private rented sector into the holiday let sector and Airbnb. And we have seen individuals forced out of their community because there is nowhere else to go. People with jobs, and with places at the local school for their children, are having to uproot and go to places where they have none of those things because they have been kicked out.
This is having an impact across the country. Fifty per cent. fewer rentals are available across the country, but there is a 6% increase in demand. Average rents outside London are going up by more than 10%. In the last generation, buying a home was a pipe dream for most people in rural communities and elsewhere. It now appears that even renting a property is a pipe dream for many. Such properties are not available, and they are certainly not affordable. Meanwhile, planning permission is being given for buildings that do not meet net zero and without a compulsion for them to be sustainable and to meet the climate emergency.
What could and should this Bill do? It should give new powers to local authorities, national parks and local councils to prevent family homes from becoming second homes and holiday lets. We could create a separate category of planning use for second home ownership and holiday lets, as distinct from full-time, permanent dwellings. Local communities would then have the power to control what happens to their housing stock.
Angus Brendan MacNeil (Na h-Eileanan an Iar) (SNP)
The hon. Gentleman asks an important question. At the very least, the Bill should match what the European structural funds were doing. Those funds dwarf the paltry levelling-up fund. Some people would call this Bill a subsidy from less well off areas to better off areas.
Tim Farron
I agree. Rural communities such as mine are being completely overlooked, in terms of both funding and the powers we are demanding to tackle these huge problems.
In planning, enforcing affordability in perpetuity is crucial. In this country, we seem to give planning permission and to build for demand, not need. In places such as the lakes, the dales, Cumbria, Cornwall and Devon, any house that is built will sell, but will it meet local need? No, it will not. This Bill does not give us the powers to enforce affordability in perpetuity. It does so little to build in nature recovery, which is vital to our communities and to any new developments.
The Bill also does nothing to give planning authorities, national parks and local authorities the power to enforce planning conditions. If a developer starts work on a field for which it has been given planning permission to build houses—they may have been told to build 25% or 30% affordable housing, which is not enough in the first place—and finds a few more rocks than it says it expected, it can use a viability assessment to go back to the drawing board. The developer can then say, “We don’t need to provide you with any affordable homes at all, and the Government will back us up.” That has happened in Allithwaite in my constituency and elsewhere. Let us give communities real power.
Tim Farron
I will continue. I am aware of the time, and other people want to speak.
The enforcement of conditions is vital, and we need to stop developers getting away with using viability assessments to take the mickey out of local communities, which is totally and utterly unacceptable, as is the fact that planning departments are denuded of staff and resources. Even the conditions we have are therefore not enforceable.
The Bill also lacks any support for public transport in rural communities. Cumbria got nothing from Bus Back Better, despite making a perfectly good bid. Why? Apparently because there is an emphasis on bus lanes. The country roads of Cumbria have only one lane, so there is no room for a bus lane. That shows the bias against rural communities such as Cumbria, Northumberland, Devon and Cornwall in the distribution of funding. There is also a lack of investment in internet connectivity. In areas such as ours, small business is king, so we need to support internet connectivity.
Listening to the Secretary of State, the Bill sounded like Roosevelt’s new deal. Instead, it is more like Major’s cones hotline. It is a massive disappointment.
Stuart Andrew
In fact, I had a meeting just this morning to talk about that very issue. I will report back in due course, if that is okay.
Tim Farron
The Minister is being very generous in giving way. I concur with the hon. Member for York Central (Rachael Maskell), but will he also carefully consider introducing an amendment in Committee that would make second home ownership a separate category of plan and use? That is obviously the clearest way in which we could control second home ownership in communities such as mine and in other parts of the country. Will he at least consider that in the coming weeks?
Stuart Andrew
I am keen to ensure that we get it right. Of course I will consider it, because I want to ensure that we consider all aspects. There could, however, be unintended consequences in other parts of the country. We will want to ensure that we get it right, but I will look at all options. I have made that commitment to numerous colleagues who have raised the issue with me.
I turn to infrastructure. I want to mention in particular my hon. Friend the Member for South West Bedfordshire (Andrew Selous) , who seems to secure a Westminster Hall debate on this issue every other week. I congratulate him on that. Many have asked what the Bill means for our infrastructure: our roads, bridges, schools, GP surgeries and so on. This is where I believe communities stand to really benefit from our reforms. All of us know that, without new infrastructure, when people see new homes going up in their community, too often they fear the worst. They fear that it will result in more congested roads, busier trains and fewer services to go around.
I hope that the proposals that we have set out in the Bill will go a long way towards allaying those fears for good. I am determined to continue working with hon. Members on both sides of the House to do so. That starts with sweeping away the old, opaque section 106 agreements and replacing them with one simple infrastructure levy that is set and raised by local authorities. The new levy will be fairer, simpler and more transparent, and it will be imposed on the final value of a development. It is important to stress that, with the housing market as buoyant as it is, the levy will easily be able to respond to market conditions. Put simply, when prices go up, so will the levy.
Crucially, our Bill also requires councils to prepare an infrastructure delivery strategy, setting out how and when the levy receipts will be used. That means new development will always bring with it the new schools, nurseries and GP surgeries that communities want and need. I have listened, in particular to the debates secured by my hon. Friend the Member for South West Bedfordshire. He knows that I will be meeting my colleagues in the Department of Health and Social Care next week to see what more we can do to ensure that local health services are more involved with the planning process.
We will run a test and learn approach. We are holding a series of roundtables with stakeholders because we want to get it right. It is important to remember that councils can borrow against the levy, so they can bring the infrastructure in as soon as the development is happening.
Oral Answers to Questions
Tim Farron Excerpts(2 years, 4 months ago)
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Stuart Andrew
I completely agree with my hon. Friend. Councils, health bodies and everybody else need to get much better at this. Local planning authorities and CCGs should work together to provide the planned provision. Under our new levy, councils will be able to borrow against future levy receipts to forward-fund the infrastructure that is needed. I am arranging meetings with colleagues in the Department of Health and Social Care to discuss the very issue that he brings to our attention.
Tim Farron (Westmorland and Lonsdale) (LD)
It is vital that infrastructure is provided before development is allowed. It is also vital that houses that are given planning permission are then used for the purposes agreed on when the permission was granted. I am talking about second home ownership. Homes that are built for local families become second homes, and that leads to communities being hollowed out. Will the Minister look again at bringing in new change of use rules through the Levelling-up and Regeneration Bill, so that second homes and holiday lets fall under a separate category of planning use, and homes in Cumbria can remain for local families, and do not become part of ghost towns?
Stuart Andrew
I seem to be dealing with the issue of second homes daily; colleagues from around the country are raising it with me and highlighting their concerns for their communities. The Bill allows local councils to increase council tax on second homes, but there is more that we need to explore. That is why I am holding a series of roundtables across the country. Perhaps I could come up to the Lake district and hold one there.
Affordable Housing (Devon and Cornwall)
Tim Farron Excerpts(2 years, 5 months ago)
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Tim Farron (Westmorland and Lonsdale) (LD)
It is a pleasure to serve under your chairmanship, Mr Hosie, and I offer massive congratulations to the hon. Member for North Devon (Selaine Saxby) on securing a really important debate. I apologise to colleagues, but I am a Member of Parliament for a western county—[Laughter.]
More seriously, I think we need to hunt as a pack because the issues that affect Devon and Cornwall affect Northumberland, North Yorkshire, Somerset, Wiltshire, Cumbria, Shropshire and other places as well. The hon. Member for North Devon was right to say that we should be sparing in our use of the word “crisis”, but she was right to use it in this case, because there is no doubt that rural communities like ours are under huge pressure. They were before the pandemic, but the pandemic has turbocharged a problem that already existed.
I want to echo something that the right hon. Member for Exeter (Mr Bradshaw) said earlier. The word “affordable” has become almost meaningless in how it is applied. In Devon, Cornwall or Cumbria, a house for sale at £200,000 is not affordable. The reality is that when average household incomes are in the £20,000s and average house prices are at least £250,000, that is a broken system and a broken market. I believe in a free market but I would intervene and referee to try to make it fairer. We are all trying to encourage the Government to take that seriously.
We represent desirable and beautiful places, with great, welcoming communities. We must get the tone spot-on, as we are not saying to people who visit or make their homes in our communities, or even have second homes in our communities, that they are not welcome. We are welcoming, British people—that is what we are. Our communities and economies thrive because of the tourism that underpins them, but we cannot ignore the fact that excessive second home ownership and holiday lets, excessive house prices in general, and a lack of availability of affordable homes for families who are either local or want to become local, are serious problems. We have a broken market, and we have to intervene to fix that.
The impact of excessive second home ownership is the death of communities. When a village or a town lacks the number of permanent residents needed to allow it to support a school, a pub, a post office or a bus route, its community becomes sad and dies as it no longer has any functional existence. No one wants to come on holiday to a dead community. We want to protect those communities so that they are alive and living.
I talked about the pandemic turbocharging an existing problem, but during the pandemic estate agents in my patch reported that anything between 50% and 80% of all house sales in the lakes were in the second home sector, showing a steady attrition of the already reducing permanent housing stock.
Holiday lets are vital and underpin any tourism economy, but if there are too many, where do they come from? In one year during the pandemic, there was a 32% rise in the number of holiday lets in my district council area. They are not being magicked from nowhere, but, as the hon. Member for North Devon rightly pointed out, arise from long-term lets where the landlord has ejected tenants using a section 21 eviction, and they then typically end up on Airbnb and similar places.
In my area, and I imagine Devon and Cornwall are very similar, we have high levels of employment and low levels of unemployment. Typically, we see couples, both of whom have jobs, with children at local schools, having to leave those jobs and take the children out of their schools in order to move to somewhere urban that is just about affordable, perhaps 50 miles away. That kills local communities, is tragic for the individuals and families concerned, and is a massive blow to the life of that community.
That point is worth bearing in mind when we look at new-build homes, wherever we live. There is a danger that we have got into the mindset that fewer planning regulations are better for creating more homes; that is not true. Planning authorities, whether they be national parks or local authorities, have to have the power to direct what kind of homes are built, in order to make them more likely to happen. In this country, we are constantly building to meet demand, but not building to meet need, which is what creates opposition to new development.
In most communities like mine, the people are the opposite of nimbys. They are desperate for new homes, but for homes that people need. Of course, a nice new-build four or five-bedroom property in Cornwall, Devon or Cumbria will sell and someone will buy it, but it is not what that community needs. We need planning laws that make sure that the homes that are built are green, sustainable, affordable and underpin the local community and economy.
Anthony Mangnall
Does the hon. Gentleman recognise what the Secretary of State is trying to do through his BIDEN acronym, which means build beautifully, make sure there is infrastructure, hold developers to account, take into account the environment and make sure neighbourhood plans are fully weighted?
Tim Farron
Yes. That is massively important, because if a community supports a development, it is more likely to happen. I regret that we do not enforce zero carbon homes and that we still permit the inflation of the value of land through the massively outdated and hugely damaging Land Compensation Act 1961, which inflates the price of houses. Those issues could be tackled by giving local authorities and communities more power, and if better, more beautiful and greener houses are built.
Anthony Mangnall
The hon. Gentleman makes an excellent point, with which I wholeheartedly agree. When a planning Bill is introduced, will he support the measures set out in the Planning (Enforcement) Bill, the ten-minute rule Bill introduced by my hon. Friend the Member for Runnymede and Weybridge (Dr Spencer) a few months ago? Those measures were specifically designed to ensure that plans presented to a community or a local council are not altered when the site is developed, driving down the affordability, greenness or environmentally friendly nature of the original proposal.
Tim Farron
The hon. Gentleman makes an excellent point, and risks my going off on one about viability assessments and so on, and the fact that when conditions are made, they should be applied. We need the Government to back national parks and local authorities, who impose conditions, get through the planning game and put affordability in there, and then developers say, “We have found some rocks in the field. It will cost too much money to do that now.” We need to ensure that communities get what they were promised and not otherwise. He makes an excellent point.
I will be quick in my final remarks. The impact on communities is huge and the impact on the economy is massive. We had a vote the other night on the amendment on health and social care workforces. In communities such as ours, as has been mentioned by right hon. and hon. Members, we have a serious problem. On the whole, these are older communities. My community is about 10 years above the national average age. That means smaller working-age populations. If those people are squeezed out even further, there is no one to run the health service. People will take jobs in the local hospital or care home, check the housing market and then give back word. That happens all the time, as has already been mentioned.
Cumbria Tourism carried out a survey of members a few months ago and discovered that last year 63% of Lake District hospitality businesses worked below capacity, despite demand being there. Why was that? Because they did not have the staff to meet that demand. That is in part due to the issues that we have raised today. What can we do? Change planning law to make first homes, second homes and holiday lets separate categories of planning use, so that planning authorities and councils can enforce affordability and availability, and ensure there is a limit on the number of second homes and holiday lets in a community. We could allow, as the Welsh Senedd has decided, local authorities to increase council tax above 100% on second homes. Councils would have the choice to do that; they would not have to. As the hon. Member for St Ives (Derek Thomas) mentioned, quite rightly, we should ensure that council tax is paid on every property that is built as a residence.
The simple fact is that a wealthy person, with a second home on the Lizard peninsula or in the Lake District, is subsidised by somebody on the breadline and going to the food bank in the same community because they have let their second home for 70 days a year. That means they pay no council tax and, as a small business, pay no business rate. That is an outrage from the Exchequer’s point of view. It is also morally outrageous, that people barely getting by are subsidising wealthy people who can afford two, three, four or more homes.
We also need to ensure that section 21 evictions are abolished, as the Government promised in their manifesto. We need to decide the point at which a second home has become a holiday let, and raise the bar from 70 nights to more than 100 nights. It could be made consistent with the HMRC requirement of 105 nights a year to qualify as a holiday let.
My final point is this. I agree with pretty much everything everyone has said in the debate so far. We have been raising the matter for years. I remember raising it with the junior planning Minister a few years ago, a gentleman who is now Chancellor of the Exchequer. I am concerned that we make these points, which are obviously an issue, showing the need to tackle the lack of affordable housing in rural communities, yet the Government still refuse to take the action needed to deliver for those communities.
I hope that in a spirit of solidarity and hunting as a pack, we might persuade the Minister to listen and take the action that rural communities need.
Rural Communities in Cumbria: Levelling Up
Tim Farron Excerpts(2 years, 7 months ago)
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Dr Hudson
I thank my hon. Friend, the Chair of the Select Committee on which I am privileged to sit. He makes a fantastic point. It is about connectivity across our great country, and rural Devon is the same as rural Cornwall and the same as rural Cumbria, and we need to get it right. We have to ensure that everyone gets good broadband and a good mobile phone signal. It is a point well made.
The Government aim to have gigabit-capable broadband to 85% of the United Kingdom by 2025. I hope that we can still move that way, but in my constituency, gigabit availability unfortunately languishes at a low 7.2% and the download speed is just over half the national average, so we are well behind. My plea is that we can have some help with that. In our part of the world, the mobile signal is poor. Sadly, there are many notspots in my part of the world.
The Government have taken some positive steps. I welcome Project Gigabit. The shared rural network will have a key impact, too, as will the voucher schemes. Communities are partnering with fantastic companies, such as Broadband for the Rural North. I have seen that first hand in communities such as Kirkoswald, Mallerstang and Ravenstonedale. I pay tribute to companies such as B4RN, its chief executive Michael Lee, the teams and the volunteers who do fantastic work to connect people in isolated communities. I make a plea to the Minister for more help from his Department, the Department for Digital, Culture, Media and Sport and indeed the Home Office in terms of shared mobile phone masts for emergencies.
Tim Farron (Westmorland and Lonsdale) (LD)
I am grateful to the hon. Gentleman, my neighbour, for securing this important debate and I congratulate him on a good speech. Does he agree that the communities of which he rightly speaks are at huge risk as affordable and family homes collapse into the Airbnb and second homes sector? There cannot really be levelling up for rural Cumbria if the Government will not take action to ensure that those communities are protected and that a limit is put on the number of Airbnbs and second homes that there can be in our communities.
Dr Hudson
I thank the hon. Gentleman for his intervention, which I note. If he can temper his patience, I will get on to that topic shortly. I am surprised to see him here; I expected to see him in my constituency perhaps where he has been a frequent and regular visitor in recent weeks. Anyone might wonder whether boundary changes were imminent. I gently and respectfully remind him that we share similar issues in our two constituencies, but we do not share the same constituency.
I put it to the Government that we need to be cautious about future changes to things such as the BBC. In rural parts of the world, terrestrial TV is ever important and the BBC and public service broadcasters are a treasured national asset that deliver news, education and drama. Again, that came into sharp relief in the pandemic when kids at home were delivered a fantastic education through it. For rural areas, where we depend on terrestrial TV and where many homes do not have the internet at all, we cannot be thinking at a Government level about moving to a subscription-based model. I caution the Government that we need to be careful when we are making decisions about the treasured asset that is the BBC.
I turn now to interactions and local democracy. In the pandemic, our vital parish councils, which do such wonderful things for our communities, could meet in virtual or hybrid formats. Sadly, that modality is not now available. That is important and I have raised it with the Secretary of State on a number of occasions. I urge the Government to allow parish councils to continue to meet in virtual or hybrid formats. There are issues with rural isolation and the weather, with people’s jobs or caring responsibilities and with farmers. If we can empower local people to contribute to local democracy through that, we can learn the positive lessons of the pandemic.
In Cumbria, we are facing significant reform at a local government level with the changes to unitary councils. I am on public record as being against that, as I do not think now is the time for us to be doing it, and the groupings go against the natural geography and the community bonds. That said, we are where we are and we have to make the best of it and make it work. I make a plea to the Department, however, that ongoing projects should not be paralysed by that reshuffling and that we should certainly ensure that local democratic changes do not compromise local communities.
I turn now to the farming and agricultural sector, which is an important aspect of my constituency economically, as came into sharp relief during the pandemic because of food security. I pay tribute to our fantastic UK farmers and Cumbria farmers who deliver food to us and put food on our tables. Anyone in the food processing and marketing sectors needs to be thanked for what they have done. They are key workers.
The farming community faces many challenges, such as the changes to the funding system with the new environmental land management schemes. We also face challenges from trade deals. The Environment, Food and Rural Affairs Committee, on which I sit, is now looking at the Israel trade deal. There are significant challenges to our farming communities and we have to ensure that the Government get it right and do not undermine or undercut our farmers so that we can stand up for our values on high environmental and animal welfare standards and can be a beacon for the rest of the world. I ask the Levelling Up Department to work with DEFRA to support that sector.
That sector has also been significantly challenged by seasonal labour issues—we have been looking at that on the EFRA Committee as well—and there are serious issues in the food processing sector. Again, the farming community now has a crisis that has been ongoing in the pig sector. Currently, in excess of 40,000 pigs have been slaughtered on farm that have not subsequently gone into the food supply chain, and I really urge the Government to work cross-Government to mitigate and avert this crisis.
Another huge part of the rural economy in Cumbria is tourism and hospitality. Again, they are facing similar labour issues. That has been exacerbated by covid, but Brexit has certainly been a factor, and we need to make sure that we can supply the labour that our vital businesses need locally. This sector needs ongoing support, and I urge the Minister to work with the Treasury to make sure that we can keep some of the measures in place, such as the VAT cut for tourism and hospitality businesses, that will make things better for them. We need to think about tax relief for small rural businesses as well.
The hon. Member for Westmorland and Lonsdale (Tim Farron) talked about the pressure on housing in local communities. We are a fantastic tourism part of the world up in Cumbria, and we have seen huge numbers of people come during the pandemic and when we started to open up. The pressure on local people to find local affordable housing has again come into sharp relief. With the increasing number of second homes in the area, locals are basically being priced out of their own local community. I really urge the Government to look at and address that with affordable housing, sensible planning and sensible measures, so that people can get on the housing ladder and it is not to their detriment when people come in and take second homes. I really urge the Government to look at that. Housing in our part of the world is very different from that in London. Again, when the Government are making changes and talking about changing boilers and such things, we have to bear in mind that many people in rural parts of the world have oil boilers, and we have to make sure we adapt. It is horses for courses.
Schools, pubs, shops and churches are the lifeblood of our local communities, and they need support. Many local communities are stepping up and acting together, such as the Kirkoswald community shop, and Bampton Valley community pub has now put together a shared programme to set up the pub again. However, we should not have to rely on the community stepping forward. We must get central Government working with local government and local communities, so I really urge the local government Department to offer more small grants so that we can put the life back into local communities.
Education is so important, and it plays a huge role in levelling up, with opportunities for young and old. We have had a very difficult time in Cumbria, and we have lost Newton Rigg College, the only land-based college in Cumbria. We worked very hard to try to save the college, but unfortunately that was unsuccessful. We now have pieces of the jigsaw coming together to try to rebuild land-based education in our community. I pay tribute to Newton Rigg Ltd, Newton Rigg Equestrian, Ullswater Community College and Myerscough College, which are working together with the Ernest Cook Trust and local stakeholders to see if we can get pieces of the jigsaw together. It is important that we rebuild land-based education in Cumbria.
To give an example, Ullswater Community College is a local high school with over 1,500 pupils, led brilliantly by headteacher Stephen Gilby, with a 600 square mile catchment area. I have raised this with the Prime Minister and the Education Secretary, but it urgently needs a rebuild, and I really press that message home to the Government. Outdoor education in Cumbria is a blessing for us, and that sector also needs to be supported. We have fantastic outdoor education centres, such as Blencathra outward bound centre. This is part of the recovery, it is about the life chances of young folk and it is very important for mental health.
Health underpins levelling up, so I really urge the Government to support rural healthcare. We welcome the fact that we have a new cancer centre that has opened up in Carlisle and a new diagnostic centre in Penrith, but on mental health we need to make sure that the message of parity with physical health comes through loud and clear. In the EFRA Committee, we have triggered an inquiry on rural mental health looking at the key issues and the key stressors. We have significant risk factors in our rural communities. We get shock events; we get floods, we get storms. Professions such as my own—the veterinary profession, but farmers as well—are over-represented with a risk of mental health and suicide, and there are the pressures of running businesses in our isolated communities. I urge the Government to try to address many of those issues at cross-Government level, and to support the communities that we live in and we love. We want to ensure that the people’s voice is heard down here in Westminster and in Whitehall.
The Parliamentary Under-Secretary of State for Levelling Up, Housing and Communities (Neil O'Brien)
Thank you, Mr Deputy Speaker. I congratulate my hon. Friend the Member for Penrith and The Border (Dr Hudson) on securing this important debate. He is a relentless champion for his community, and the many different issues that he touched on this evening are a small selection of the matters he has raised with us. He always makes important and serious contributions to driving forward the different policy agendas he has raised.
Let me address some of the specific points raised by my hon. Friend. One of the themes of his speech—appropriately enough for a vet, horses for courses—was about how the levelling-up agenda must be shaped to the needs of rural communities such as the one he represents in Cumbria. He raised the issue of second homes, and I am acutely conscious of the strong feelings held by him and his constituents about that. He will know that we recently closed the second homes tax loophole, which was being abused. That was a serious part of the problem, and a serious contribution to tackling it. Partly as a result of my hon. Friend’s work on this issue, we are considering what further steps we can take to address it. Many local people have a sense of their children not being able to live where they grew up, or of not being able to stay in their own community because it is a wonderfully attractive place. We all love those places, but we must not kill the thing we love by local people not being able to live there. My hon. Friend is completely correct, and it is something we are actively looking at.
Tim Farron
Given the urgency of this, I cannot stress how important it is that action is taken, well, yesterday really. In the South Lakeland District, there has been a 32% rise in the number of holiday lets in one single year. That is the private rented sector collapsing into the “not lived in” market. We need action now. Let us please not have another inquiry.
Neil O'Brien
I completely agree with that, and we have the same sense of urgency about this issue.
My hon. Friend raised a point about the need for small grants in the kind of community he represents. That is exactly why we have set up the new £150 million community ownership fund, which is helping people across the country take control of assets that are of importance to the local community, from pubs to sports pitches to important cultural locations. We are at the start of allocating that fund, and I am sure my hon. Friend will be assiduous in helping us to identify fantastic projects in his constituency that are deserving of such support.
My hon. Friend raised the issue of how things work in the kind of area he represents, and about parish councils sitting virtually. He has made numerous representations to us on that point, and again today he made a powerful argument. The Government launched a call for evidence last year to gather views and inform our longer term decision about whether to make express provision for councils to meet remotely on a permanent basis. The Department for Levelling Up, Housing and Communities is considering the responses to that consultation, and will respond shortly. I know that many local councillors found it extremely useful to have a wider range of voices able to attend, particularly in areas where the geography is large and the community is somewhat older. A decision has not been made, although once again my hon. Friend made a powerful case on behalf of his constituents.
Likewise, as part of my hon. Friend’s theme of how Cumbria is not London and has different challenges and different sorts of issues, he made important points about mental health. It is really a crusade for this Government to have true parity between the treatment of mental and physical diseases, of exactly the kind my hon. Friend called for. As part of that, one of the most exciting things that the Government are doing as part of the anti-loneliness agenda is rolling out social prescribing across the country. There is a target to have 900,000 people referred through the NHS to social prescribing by 2023-24. My hon. Friend is a vet, and a long time ago I was a medical student, and when I met patients I was struck how often both their medical needs in the traditional sense and many mental health issues were not being grappled with. Through the social prescribing agenda, we can start to have a proper plan to connect those people to the help that they need. He was right to raise that.
My hon. Friend was also right to raise terrestrial TV. There are places where people cannot just get on to an ultrafast fibre broadband connection, so that terrestrial TV signal will remain extremely important.
I will touch on some of the wider things that the Government are doing across the whole of Cumbria—of course, there are huge economic connections between all the parts of the county. Our levelling-up funds are making a big difference. Barrow, Carlisle, Cleator Moor, Millom and Workington are all getting a share of £110 million of investment through the towns fund to improve town centres and public services, which will also benefit my hon. Friend’s constituents. Through the first round of the levelling-up fund, £16 million is being invested, and there is much more of that £4.8 billion fund to come.
My hon. Friend will be acutely aware that the landmark and historic borderlands growth deal is helping both sides of the border—those in Cumbria and in southern Scotland. It is helping with projects such as the upgrade to Carlisle railway station and creating 5,000 new well-paying jobs. In total, I think it is bringing £452 million of fresh investment into Cumbria, Northumberland and southern Scotland.
The different funds are doing a lot, but there are also national programmes recognising the central importance of the connectivity issues that my hon. Friend raised—they have the potential to transform the economy of some rural areas—and addressing them. That is exactly why we did the £1 billion deal with mobile network operators. He talked about sharing masts, and that is exactly what we will be doing through the shared rural network. In Cumbria, the deal will mean that 4G coverage from all mobile network operators will rise to a minimum of 88%, up from 73%, and coverage from at least one network will go up from 94% to 98%. We are starting to close off those notspots that he correctly identified. Through Project Gigabit and our £5 billion investment, we will also be connecting broadband across Cumbria and driving up high-quality coverage.
My hon. Friend has been a brilliant champion on all these issues—he raised so many of them—but I am conscious of time and the need to bring my remarks to a close. He raised devolution and the future of local government in Cumbria. In the levelling-up White Paper we alluded to the prospect of a devolution deal for Cumbria, which is an exciting prospect that we can use to address many of the specific issues that he raised in this important debate.
My hon. Friend’s fundamental thesis is completely correct: we must have a levelling-up agenda that works with the grain of what is going on locally. When we go to Cumbria, we see its beauty, all the things that are fantastic about it and the new investment, but we are also conscious that, for many people, it is an area of low pay and one with a need for more high-quality jobs and new opportunities to learn and progress. He has been the most fantastic champion across all those issues and I look forward to working together with him as we drive them forward.
Question put and agreed to.
Local Government Finance (England)
Tim Farron Excerpts(2 years, 7 months ago)
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Tim Farron (Westmorland and Lonsdale) (LD)
I pay tribute to all those who work in local government, particularly for the immense efforts that they have made over the past two years to meet the needs of their local communities, and to the elected members in all parties who serve their communities for not much recompense. It is a noble calling and something I enjoy doing; we should pay tribute to them. I must also throw in a mention of those who serve on parish and town councils, most of whom do so without any recompense whatever and have stepped up to the plate.
Over the past few years, as we have effectively seen caps on public spending in the principal authorities, the ability to raise a precept without going through the process of a local referendum has meant that many parish and town councils have really stepped into the breach. For their sake as much as for principal authorities, we should regret that we are still on one-year budgets. To have a single-year settlement for a fourth year disrespects all local government authorities—the parish and town councils that are not in direct receipt of grant support, as well as the principal authorities that are—and makes it very hard for them or the organisations that depend on them to plan. That is not an argument about the amount of money; it is about levelling with authorities and ensuring that they can plan ahead and serve their communities efficiently and with ambition.
There is an awful lot that we could talk about, but I do not want to take too long or tick every box, so I will make just a few observations. Like other hon. Members, I regret very much the failure to keep public health spending in line with inflation, or anything like it, as we learn more and more about the importance of preventive healthcare, both physical and mental. I pay tribute to Colin Cox and all those in Cumbria’s public health team who have worked utterly tirelessly through the pandemic, keeping us safe and giving us the advice, confidence and reassurance that we all desperately need. They have been responsible for excellent systems throughout this very difficult time.
It is worth bearing in mind just what this means—not funding public health well. While tiers 2, 3 and 4 of the mental health support framework for young people are provided through contracted services, through the NHS and through child and adolescent mental health services, tier 1 is the responsibility of public health services run at county level. The poor funding for public health in our county means that the amount we spend on young people’s preventive mental health care in Cumbria equates to 75p per child per year.
Let us ignore for a moment the moral wrong of that small amount of funding. What does it mean in terms of the consequences in later life? I carried out a survey last year and found that 28% of young people referred to CAMHS were waiting over six months to be seen. Unless we invest in tier 1 preventive mental health care, we will increasingly see people cropping up further down the line with conditions that are much more tragic and much more difficult and expensive to treat. I ask the Secretary of State to think again about investment in public health throughout the country, not just in mental health and not just in Cumbria.
We have seen no real-terms increase in the rural element of the grant, and the lower-tier services grant has not been increased. District councils, which are much more likely to be in rural areas, are not receiving the support that they need. I do not want to see a push-and-pull and a fight between rural and urban communities—such activities are often misplaced—but it is worth pointing out that those who operate services in rural communities do so relatively inefficiently, because they are dealing with the same sort of issues but with much smaller numbers. There may be only 30 children at a school in the south lakes, for example, not because it is of poor quality and unable to recruit pupils but because only about 14 kids live in the catchment area, and 30 pupils mean that it is over-performing. In my constituency there are two high schools—secondary schools—with fewer than 200 pupils, and probably about a dozen primary schools with fewer than 60. I can think of two with fewer than 30. They have small school rolls not because they are not good schools, but because they represent vast areas of land in the Lake district and the dales. The lack of an understanding of rural needs means that the needs of those schools become greater and greater.
When it comes to funding formulas, one issue in particular concerns me. It depends on which metric we look at and whom we believe, but I do believe that Cumbria may have the worst pothole problem in the country, for one reason in particular. Ours is, I think, the second biggest county in England, and I think that therefore we have the second biggest number of roads. We have one of the smallest populations in any county—we certainly have the smallest concentrations of population anywhere in the country—and yet we have colossal numbers of visitors, 38 times more each year than the number of people who live in the county. The tourists who are so welcome in the lakes and the dales and elsewhere in Cumbria are helping to contribute to the wear and tear of our roads, but they are not contributing to the upkeep. I should like the Secretary of State to think carefully about how he can compensate rural communities like mine—particularly tourist-heavy communities—bearing it in mind that although, after London, the Lake district is the most visited place in Britain, it does not receive any compensation to help it to fund the services that are used by those visitors, which is a terrible shame.
We should bear it in mind that over a third of the increased funds available to local authorities this year is money that councils have to raise, with a £1.4 billion increase in council tax. Council tax is an unfair form of taxation: it is disproportionately paid by those on lower incomes, and it puts a greater burden on household outgoings. Combined with the national insurance rise that is coming in a few weeks’ time, this puts an additional burden on people with low and middle incomes which they cannot afford.
The increase in council tax is, broadly speaking, for social care, and no sensible council will miss the opportunity to find that money to protect its social care provision. The national insurance rise is being sold as a measure that will help social care provision, but it is not really going to do that. It will not lead to what we really need, which is an upgrade in the terms and conditions and pay for people working in social care. Without that, we will neither recruit nor retain the people we need. In Cumbria, we have seen a 32% reduction in social care beds in just six and a half years. It is deeply troubling for people to have a rise in taxation outgoings both to the local authority and nationally but to see nothing for it, and nothing that will help retain those people whom we clearly need working in social care.
One reason why we have great difficulty in meeting social care needs in Cumbria is our inability to provide places for the workforce to live, which is a major responsibility of unitary and lower-tier authorities. As the Secretary of State knows—I think he has agreed to meet me to discuss this issue—rural Britain in particular faces a massive housing crisis, which is costing us in so many different ways, and while we have had this crisis for many years, through the pandemic it has become a catastrophe.
Two things have happened. First, roughly speaking, 80% of house sales in Cumbria during the pandemic have been to the second-home market, weakening communities and leaving them with an ever smaller permanent population. That means that we lose the services. If we lose a number of kids at a school, we may lose the school as well as the bus service, the post office and what it is to have a life in a community. The other thing that has happened, since the end of the eviction ban last year, is a massive increase in people evicted from relatively affordable private rents to turn those houses into Airbnbs instead.
Hon. Members can imagine the existing number of holiday let properties in a place such as the Lake district, and in my district alone in a 12-month period last year they increased by 32%. Where did those properties come from? Ordinary families in my community have been evicted—kicked out. They may have been there for years. I think of one family who raised their kids there for 16 years and were kicked out with little notice. They had to leave the community and move their children because the Government did not scrap section 21 evictions having promised to do so. That leaves us with no staff available for care homes or all the other provision that we need. It is a moral outrage, and it practically undermines our economy.
As we look to support local government, I would love the Secretary of State to look at the ways in which he can affect that by, for instance, changing planning law so that a family home cannot be turned into a second home or a holiday let without asking the planning authorities for permission. That would keep a lid on the problem and maintain and protect the communities represented by me and others in other beautiful parts of the country. That would not cost anything—perhaps a bit more resource for planning departments for enforcement —so there is a way of adding value to our communities without necessarily spending any more money.
I have one final ask via the Secretary of State to the Chancellor of the Exchequer: why do we not consider following the Welsh Government’s lead in providing local authorities with permission to double council tax on second homes? That would be a disincentive for second homes and protect communities from too many of them. It would also create a revenue stream, which those communities could invest in supporting new affordable homes and protecting local schools that would otherwise have too few kids to be viable. I would love him to look at and think about those things. As we suffer through many other challenges such as the cost of living crisis and recovery from the pandemic, I want him to focus in particular on the housing catastrophe that affects the economy and community in so many rural areas such as mine.
Levelling Up
Tim Farron Excerpts(2 years, 8 months ago)
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Michael Gove
May I thank my right hon. Friend? Many of the best ideas in the White Paper are the fruit of work that he and the Northern Research Group of Conservative MPs have conducted. The paper that he co-wrote for the Centre for Policy Studies, “A Northern Big Bang”, has influenced our thinking in a number of areas, not least unlocking additional private sector investment. My noble Friend Lord Grimstone, the Department for International Trade Minister, now leads the Office for Investment, and one of his missions is to increase FDI, particularly in the north and midlands. I look forward to working with Lord Grimstone and my right hon. Friend to ensure that east Lancashire is at the front of the queue for that investment.
Tim Farron (Westmorland and Lonsdale) (LD)
I thank the Secretary of State for his statement and for the White Paper, which is very thoughtfully put together—not least because the foreword by the Prime Minister is on a detachable page. That is great.
One page that appears to have already been detached, however, is the bit that refers to rural Britain. I am really concerned that there is very little concern in the document for levelling up the rural parts of our country. In Cumbria, we have three-hour round trips for cancer treatment and a threat to our local A&E department, and our villages and communities are being cleared by second homes and Airbnb. I would be delighted to work constructively with the Secretary of State, and I would love if it he agreed to meet me so that we can talk about some answers to the housing catastrophe affecting not just Cumbria, but the rest of rural Britain.
Michael Gove
I have to say, I agree with almost everything the hon. Gentleman said. First, it is important that we focus on rural poverty; secondly, there are unique issues in Cumbria. Local government reorganisation, with the creation of one new authority in Cumberland and one in Westmorland and Furniss, will contribute to ensuring that we have a proper focus on those, but we need to go further. He is also right that the issue of second homes and their impact on local economies is a complex one. We are not in the right place yet, and I want to work with him and other colleagues to address it.
Second Homes and Holiday Lets: Rural Communities
Tim Farron Excerpts(2 years, 9 months ago)
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Mr Virendra Sharma (in the Chair)
Happy new year to all. Before we begin, I remind Members that they are expected to wear face coverings when they are not speaking in the debate, in line with current Government guidance and that of the House of Commons Commission. I remind Members that they are asked by the House to have a covid lateral flow test twice a week if coming on to the parliamentary estate. This can be done either at the testing centre in the House or at home. Please also give each other and members of staff space when seated, and when entering and leaving the room.
Tim Farron (Westmorland and Lonsdale) (LD)
I beg to move,
That this House has considered the matter of second homes and holiday lets in rural communities.
It is a huge pleasure to serve under your chairmanship, Mr Sharma. Happy new year to you, too, and to colleagues.
It is a huge privilege to serve our communities in Cumbria—our towns, villages lakes and dales, among the rugged beauty of England’s finest landscapes—yet the people who live in our communities are even more precious than the places themselves. We welcome those who see Cumbria as a holiday destination: a place for leisure and relaxation, and a place of peaceful serenity and exhilarating extremes. It is our collective privilege to be the stewards of such a spectacular environment for the country, yet our full-time local communities face an existential threat unlike any other in the UK. I am immensely grateful to have secured this debate, because the housing crisis that has faced our communities in Cumbria and elsewhere in rural Britain for decades has rapidly become a catastrophe during the two years of the pandemic.
For the last few decades, we have seen an erosion in the number of properties in Cumbria that are available and affordable for local people to buy or rent. What little I know of geology tells me that although erosion usually takes place over huge passages of time, sometimes a whole rockface may collapse or a whole piece of a cliff might drop into the sea in a single instant. That is what has happened to our housing stock during the pandemic. In the space of less than two years, a bad situation has become utterly disastrous.
I have been calling for the Government to take action from the very beginning, so I confess to being frustrated and angry that Ministers have yet to do anything meaningful to tackle the problem. As a result, many of us living in rural communities feel ignored, abandoned and taken for granted by the Government, and we stand together today as rural communities to declare that we will not be taken for granted one moment longer.
In South Lakeland, the average house price is 11 times greater than the average household income. Families on low or middle incomes, and even those on reasonably good incomes, are completely excluded from the possibility of buying a home. Although the local council in South Lakeland has enabled the building of more than 1,000 new social rented properties, there are still more than 3,000 families languishing on the housing waiting list. Even before the pandemic, at least one in seven houses in my constituency was a second home—a bolthole or an investment for people whose main home is somewhere else.
In many towns and villages, such as Coniston, Hawkshead, Dent, Chapel Stile and Grasmere, the majority of properties are now empty for most of the year. Across the Yorkshire Dales, much of which is in Cumbria and in my constituency, more than a quarter of the housing stock in the national park is not lived in. In Elterwater in Langdale, 85% of the properties are second homes. Without a large enough permanent population, villages just die. The school loses numbers and then closes. The bus service loses passengers, so it gets cut. The pub loses its trade, the post office loses customers and the church loses its congregation, so they close too. Those who are left behind are isolated and often impoverished in communities whose life has effectively come to an end.
Kevin Hollinrake (Thirsk and Malton) (Con)
I congratulate the hon. Gentleman on having secured this important debate. He has mentioned that his local authority has brought forward some affordable housing—I cannot remember the number he said—but that it was all rented. The Government have created a new scheme, the first homes scheme, to allow discounted properties to be purchased as affordable homes. Is the hon. Gentleman pursuing that with his local authority, to try to make more of those properties available to his local first-time buyers?
Tim Farron
I am grateful for the hon. Gentleman’s intervention. The short answer is yes. The slightly longer answer is that the first homes scheme cannot be instead of other schemes but has to be in addition to them. By the way, in a community like ours where the average household price is 11 times greater than the average income, the first homes scheme will not help people; it will not even nearly help them. Maybe if their income was seven times less than the average house price, it might just help them, so it is a good scheme, but it is barely even the tip of the iceberg. Yes, I have spoken to the previous Secretary of State to ask him to make our area a pilot, but that does not touch the sides, if I am honest. Nevertheless, the hon. Gentleman has raised a really important point.
During the pandemic, I have spoken to many local estate agents across our county. Around 80% of all house sales during the past two years have been in the second home market. Those who have the money to do so are rethinking their priorities, investing in the rising value of property and seeking a piece of the countryside to call their own, and we can kind of understand that. I do not wish to demonise anybody with a second home, or to say that there are no circumstances in which it is okay to have one, but let me be blunt: surely, someone’s right to have a second home must not trump a struggling family’s right to have any home, yet in reality, apparently it does. Every day that the Government fail to act is another day that they are backing those who are lucky enough to have multiple homes against those who cannot find any home in the lakes, the dales or any other rural community in our country.
Robin Millar (Aberconwy) (Con)
My own constituency, Aberconwy in north Wales, has this problem—not to the extent that the hon. Member describes, but certainly smaller villages are particularly vulnerable to high levels of second home ownership. However, I wonder what he has to say about the example given to me of a farmer whose family had lived in one valley, Penmachno, for many years. He himself had to move away to find other work, so he now has a second home—his family home—in Penmachno, but he must live in England. In that circumstance, there is a second home in the village that is not occupied, but there is a tradition and a family heritage in that village. Should that person then have to give up that home, or does the hon. Member have a way of recognising that kind of arrangement?
Tim Farron
I thank the hon. Gentleman very much for his intervention, which is really helpful and worthwhile. I would say two things. First, we have a desperate lack of affordable private rented accommodation, so we want both social rented houses and houses in the private rented stock. It seems to me that that is clearly the route for the hon. Gentleman’s constituent to go down.
Secondly, possibly the only thing in the coalition agreement that had anything to do with me whatsoever was a commitment to what we called “home on the farm”: the ability, which is still the Government’s stated policy, for farmers to convert underused or semi-used farm buildings into affordable homes for families, but also as part of the wider housing network. These are all small ounces that will help us to shift the problem, and I wish that the hon. Gentleman’s Government in Wales and his Government here would take up these suggestions.
Bob Seely (Isle of Wight) (Con)
I congratulate the hon. Gentleman on having secured this important debate. It is clear from some of the questions that have been asked, and from what the hon. Gentleman is saying, that this is a complex issue. I will give an example: on the Isle of Wight, the village of Seaview has 82% second home ownership, so it has been effectively stripped out of permanent life, and Bembridge and Yarmouth have similar problems. Is the hon. Gentleman aware that a group of us have written to the Secretary of State with over two dozen ideas for how to make the upcoming housing and planning Bill—if it does come—much better and stronger, and give it a much wider base of support? We have put forward recommendations, and some options on second home ownership.
Tim Farron
I thank the hon. Gentleman very much for his helpful contribution, and for his ongoing concern and interest in this issue, which is very laudable indeed. In one sense, this issue is not complex at all. If a person is forced out of their community, it is not slightly complex; it is just bloomin’ tragic. Yes, there is a planning Bill, and I look forward to that. I might feel all sorts of dread about that Bill, but it is an opportunity to do something. However, every single day is an opportunity to do something. The opportunity was two years ago, a year ago, last week and the week before, and the Government do nothing.
The simple reality is that it is not that complex to do things that will shift the dial and save the dales and other rural communities that are being undermined in the way they are. That is what so frustrating to us: there are people from all parties in this Chamber today, and there are other people who would be here on a normal Thursday if it were not this time of year and if there were any votes today. The reality is that we know there is a problem, and we see no action from the Government. Every day that goes by is another day wasted. It is not complex—it is just tragic.
Rachael Maskell (York Central) (Lab/Co-op)
I am grateful to the hon. Gentleman for calling the debate and I congratulate him on his speech. Urban areas that are holiday destinations—such as York, which has more than 8 million visitors a year—are also plagued by the issue, which is about not only Airbnbs and holiday lets but second homes, not least because people have now discovered new ways of working. Is that not another factor to add to the equation when we look at not only who has the ownership, but what is being developed?
Tim Farron
The hon. Lady makes a great point and I am grateful for her intervention. It is not just a rural issue, although it may predominantly be rural. York is clearly a good example of somewhere that suffers in a different way. I will come to the issue of holiday lets and some of the answers in a moment. It will rob communities of their very life if we do not intervene. I am not someone who is anti-market—I am anti-broken market, and this is a broken market. This is our opportunity to do something about it.
Excessive second home ownership is a colossal problem in our communities. The purpose of this debate is to shake the Government out of their demonstrable and inexcusable inaction and to take the action required to save our communities.
The crisis has become a catastrophe, and it is not just about second homes. Holiday lets are an important part of our tourism economy. In the Lake district, we argue and believe that we are the most visited part of Britain outside London. Our tourism economy is worth more than £3 billion a year and employs 60,000 people—comfortably Cumbria’s biggest employer. It is a vibrant industry and, by its very nature, a joyful one; I am proud to be a voice for Cumbria tourism in this place. Those 60,000 people working in hospitality and tourism need to live somewhere. Some 80% of the entire working-age population of the Lake district already works in hospitality and tourism. We need to increase the number of working-age people who can afford to live and raise a family in our communities, yet the absolute opposite is happening at a rate of knots.
During the pandemic, in South Lakeland alone—just one district that makes up part of the Lake district—there was a 32% rise in one year in the number of holiday lets. I assure the Minister that those were not new builds; they were not magicked out of thin air. Those new holiday lets emerged in 2021 following the lifting of the covid eviction ban. That is not to blame the ban; it was a good idea, and it had to come to an end at some point. My point is that that rise was over a tiny period of time: less than 12 months, in reality. The fact is that this time last year those new holiday lets were someone’s home.
In Sedbergh, Kirkby Lonsdale, Kendal, Windermere, Staveley, Ambleside, Coniston, Grasmere, Grange and throughout Cumbria, I have met people who have been evicted from their homes under a section 21 eviction order—which, incidentally, this Government promised to ban in their last manifesto.
Among the hundreds evicted, I think of the couple with two small children in Ambleside, who struggled to pay £800 a month for their flat above a shop in town; they were evicted last spring only to find the home they had lived in for years on Airbnb for £1,200 a week. I think of the mum near Grange, whose teenage son had lived in their rented home his whole life; they were evicted only to see their property on Airbnb a few days later for over £1,000 a week. I think of the tradesman from Sedbergh, who had served the community for 15 years; a few days after he was evicted, his former home was also on Airbnb for £1,000 a week. There are hundreds more individuals and families in the same situation right across rural Cumbria.
Daniel Zeichner (Cambridge) (Lab)
The hon. Gentleman makes an important point. Back in 2018, I did some work with Gordon Marsden, the then MP for Blackpool South, looking at Airbnb and the issues of the sharing economy for the all-party parliamentary group for hospitality and tourism. We came up with a recommendation for a statutory registrations scheme for all accommodation providers. Is that something the hon. Gentleman has considered?
Tim Farron
I have, and I will come to some suggestions in a moment, including on how we might tackle the issue—to put it neutrally—of Airbnb. The hon. Gentleman raises an important point, and the need for such a scheme is huge. Undoubtedly, the ease with which people can turn a home into a holiday let is part of the problem. The consequences are phenomenal. The people I am speaking about are real human beings; I could pick dozens and dozens more to talk about. What it means for them is that they have to leave the area. This is no less than a Lakeland clearance: whole communities ejected from the places where they were raised, where they had chosen to raise their families, or where they had set down roots to live, work and contribute to our economy.
Will the Minister accept that this is both morally abhorrent and economically stupid? We have businesses in Cumbria that, having survived covid so far, are now reducing their opening hours or closing all together because they cannot find staff anymore. We have people isolated and vulnerable because they cannot find care staff. There are friends of mine in that situation, in part because the local workforce has been effectively cleared out and expelled. In each case I mentioned earlier—in Sedbergh, Ambleside and Grange—the people could not find anywhere else to live in those communities or in the wider community. They have had to uproot and move away all together. How is the economy of Britain’s second biggest tourism destination expected to deliver for Britain’s wider economy without anybody to staff it?
What about the children who have to move away, and are forced to move school, and leave behind friends and support networks? What about those left behind in our dwindling communities, whose schools are now threatened with closure? I have spoken to MPs, not just those who are here and for whose presence I am massively grateful, but from rural communities right across this House. Most of those, particularly in England and Wales, are from the Conservative party. There is a kind of private agreement that this is a catastrophe. They see it in their own constituencies: the collapse of affordable, available housing for local communities is killing towns and villages in Cornwall, Northumberland, Shropshire, Devon, Somerset, North Yorkshire, the highlands of Scotland and rural Wales, as well as in my home of Cumbria.
Our rural communities want two things from the Minister today: first, a sign that he understands that this catastrophe is happening; and secondly, a commitment not to wait for the planning Bill, but to act radically and to act right now.
Robin Millar
Forgive me for not thanking the hon. Member earlier for securing this debate; this is a crucial debate and very important to residents in Aberconwy. I want to ask him about the point he made about the distribution of this problem in Wales, Scotland and England. Is he suggesting that this is a problem that can be solved by the UK Government, or is it one that he feels must be dealt with by the devolved Administrations?
Tim Farron
I do not care who solves it—it needs solving. The UK Government have got powers that they could use.
Mr Virendra Sharma (in the Chair)
Order. No disrespect, and I do not want to stop the debate or the interventions. However, those who are speaking later may want to be a little hesitant to intervene.
Tim Farron
I will be guided by you, Mr Sharma. Unless people are desperate, I will not take any more interventions. Members have the opportunity to speak after I finish.
The point that the hon. Member for Aberconwy (Robin Millar) makes is important; the UK Government have powers and I will come on to talk about the things that they could do. There are things that the Welsh Government could do, and there are some things that they are already doing that the UK Government are not doing—we could learn some lessons from them. There are also some powers that local authorities and national parks have, but those are very limited. It is essentially about taxation and planning law, in particular; those things come from both the devolved and central Administrations. However, it is a perfectly sensible and intelligent point that the hon. Member makes.
Now might be the moment, having asked the Minister to acknowledge that the catastrophe is real and to act, for me to give him some ideas about how he might act. What could and should the Government do? I propose seven steps to save rural communities. First, they could make second homes and holiday lets new and separate categories of planning use. This would mean that councils and national parks would have the power to put a limit on the number of such properties in each town and village, protecting the majority of houses for permanent occupation. Secondly, they could provide targeted, ringfenced finance so that planning departments have the resources to police this new rule effectively.
Thirdly, the Government could follow the lead of the Welsh Government and give councils the power to increase council tax by up to 100% on second homes in the worst-affected communities. That would serve to protect those communities and generate significant revenue that could then be ploughed back into their threatened schools and into new affordable housing for local families. A quick assessment shows that, in Coniston alone, that would raise £750,000 a year, which would make a colossal difference to that community.
Fourthly, the Government could force all holiday let owners to pay council tax, as they can avoid paying anything at all if they are deemed a small business.
Fifthly, the Government could give councils and national parks the power to ensure that, at least in some cases, 100% of new builds are genuinely affordable, and provide funding to pump prime those developments, possibly in part via the proceeds of a second homes council tax supplement. We have a deeply broken housing market. Of course, developers can sell any property that they build in our rural communities for a handsome price, but that is surely not the most important thing. Is it not time to stop building simply to meet demand, and instead build to meet need?
Sixthly, the Government could simply keep their manifesto promise and ban section 21 evictions.
Seventhly, the Government can ensure that platforms such as Airbnb are not allowed to cut corners and undermine the traditional holiday let industry. Their properties should have to meet the same standards as any other rental. Failure to do that is unsafe, unfair and creates a fast track for the Lakeland clearances to continue and escalate.
I want to be constructive, and I hope that I have been. I called for this debate not to throw bricks at the Government, but because I love my communities and I am despairing at what is happening to them. I am determined that Ministers should understand the depth and scale of this catastrophe, and that they should take radical action right now. I support free markets, but unregulated markets that are obviously broken are not free at all. That is when they need the visible hand of Government to referee and intervene.
The Government will have noticed that, in recent months, rural Britain has demonstrated at the ballot box that it will not tolerate being taken for granted. This debate gives Ministers an early opportunity to demonstrate, in return, that they will stop taking us for granted, standing idly by while rural communities are rapidly destroyed.
To those of us who live in Cumbria and other beautiful parts of our country, it is obvious what is happening, and it is heartbreaking. Likewise, it is obvious to us what needs to be done, and it frustrates us, to the point of fury, that the Government have so far failed to even acknowledge the problem, much less to do anything about it. Today is their chance to put that right. Rural Britain is watching.
Several hon. Members rose—
Tim Farron
Mr Sharma, I am very grateful to you for giving me a moment or two at the end. Thank you for giving us all the opportunity to make our points today. I pay tribute to the following for their contributions: the hon. Members for York Central (Rachael Maskell) and for North Devon (Selaine Saxby), my hon. Friend the Member for North East Fife (Wendy Chamberlain), the hon. Members for Strangford (Jim Shannon), for Thirsk and Malton (Kevin Hollinrake), for North Ayrshire and Arran (Patricia Gibson) and for Greenwich and Woolwich (Matthew Pennycook), and the Minister himself. I hope I have not missed anybody out. There were also some useful interventions, mostly from Members who are no longer in their place, although the hon. Member for Cambridge (Daniel Zeichner) is still present.
Lots of things were said. We were reminded that this issue affects not just rural areas, but coastal areas and cities. It has an impact on the hospitality and tourism economy and the workforce. I speak to lots of people in hospitality and tourism, and they are very keen that action is taken. This is not about tourism versus action; this is about the determination of the tourism industry that action should be taken. Of course, other industries and forms of employment—for example, in health and education—are also hugely affected by the lack of a local permanent population.
I welcome the review that the Minister talked about. That is all good—but it is all we got. I was not overwhelmed by a tidal wave of urgency—in fact, quite the opposite. In the seconds that I have left, I want to say to the Minister that inaction is action. It is action on behalf of those who own multiple homes against our communities. I want to see an awful lot more than we have seen today. By the time a part of what we proposed is looked at in a review, which will take years because they always do, there will be another 32% and then another 32%, and the communities at risk of dying that I talked about earlier will be actually dead. We need urgency right now, so I ask for further meetings immediately. The Minister talks about the planning rules, but how about letting national parks pilot the differential in planning use categories? That, at least, would be a start, to demonstrate that it could be possible. I am disappointed by the lack of urgency, but I am grateful for the opportunity.
Question put and agreed to.
Resolved,
That this House has considered the matter of second homes and holiday lets in rural communities.
Leasehold Reform (Ground Rent) Bill [Lords]
Tim Farron ExcerptsMonday 29th November 2021
(2 years, 10 months ago)
Commons ChamberRead Full debate Leasehold Reform (Ground Rent) Act 2022 View all Leasehold Reform (Ground Rent) Act 2022 Debates Read Hansard Text Read Debate Ministerial Extracts Amendment Paper: HL Bill 1-R-I Marshalled list for Report - (15 Jul 2021)
Tim Farron (Westmorland and Lonsdale) (LD)
On a point of order, Mr Deputy Speaker. No Minister came to this House today to address the appalling situation for the 155,000 people across the United Kingdom who remain without electricity, following damage caused by Storm Arwen. Thousands of people in Cumbria—in Coniston, Haverthwaite, Torver, Hawkshead, Grayrigg, Shap, Alston, Troutbeck, Garsdale, parts of Windermere, parts of Kirkby Stephen and parts of the Cartmel peninsula—are now facing their fourth night without electricity.
We need support tonight to help the hard work and increase the numbers of the engineers who are working around the clock to fix the connections. That may well involve bringing in the Army. We also need support for the amazing community volunteers who are helping vulnerable people and families who are cold, hungry and suffering in other ways. After four nights without power, most people become vulnerable. Could you advise me, Mr Deputy Speaker, how we can make representations to Ministers so that we can see immediate action tonight?
Mr Deputy Speaker (Mr Nigel Evans)
I thank the hon. Member for giving notice of his point of order. He mentions a number of areas in and around his constituency; areas in my constituency and those of others have also been affected.
I have been given no indication that there is to be a statement today on the matter, but you are a seasoned Member of Parliament, Mr Farron, and you will know that there are other devices that you may be able to use to raise the issue, either directly with Ministers or in the House. Also, the Table Office is always there to assist Members in pursuing the interests that they have.
I thank the hon. Member for raising that vital issue.
Animals (Penalty Notices) Bill (Ways and Means)
Resolved,
That, for the purposes of any Act resulting from the Animals (Penalty Notices) Bill, it is expedient to authorise the payment of sums into the Consolidated Fund.—(Victoria Prentis.)
Approved Premises (Substance Testing) Bill (Money)
Queen’s recommendation signified.
Resolved,
That, for the purposes of any Act arising from the Approved Premises (Substance Testing) Bill, it is expedient to authorise the payment out of money provided by Parliament of any expenditure incurred under or by virtue of the Act by the Secretary of State.—(Kit Malthouse.)
Budget Resolutions
Tim Farron Excerpts(2 years, 11 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Tim Farron (Westmorland and Lonsdale) (LD)
Thank you, Mr Deputy Speaker. There is another great advantage of speaking at this late stage of the debate, which is that I have been able to hear the contributions from Members from all parts of the House. Those contributions have been thoughtful, genuinely interesting and well delivered. I am sure that Members will forgive me if I also say that there has been a fair amount of buzzword bingo. Sadly, while there was certainly a degree of buzzword bingo in the Budget statement last week, the numbers for rural Britain did not come up. If we are talking about levelling up, which is the theme of this debate, the Government should look at those parts of the country that are suffering with peculiar problems and unique difficulties and seek to address them. However, that has definitely not been the case when it comes to rural Britain. I am a fellow Yorkshire dales MP with the Chancellor, and he has no excuse for being ignorant of some of the issues that I am going to raise, which must raise the question of how much he actually cares about rural Britain.
There are huge issues facing rural Britain at the moment, and I am going to pick just a few that the Government had the opportunity to deal with but chose not to. The first is the housing crisis. “Crisis” is an overused word, but in rural Britain, and particularly in Cumbria, the crisis of the past 18 months has become extreme and acute. What do I mean by that? Throughout Cumbria, we have communities that have a minimum of 50% second homes. In some cases, 80% to 90% of the houses in a particular village or town are not lived in. I do not need to tell you, Mr Deputy Speaker, what that can mean for a community, because you know very well that it can mean the loss of life for a community. Communities can lose their schools, their bus services and their very communities.
During the covid crisis, up to 80% of all house sales in Cumbria have been on the second home market, so a terrible problem has become disastrously worse in no time. Let us remember that the south lakes are Britain’s biggest tourist destination outside London, and we already have tons of holiday lets. In my community of South Lakeland, in one single year during the pandemic, there was a 32% rise in the number of holiday lets. Where from? I will tell you where from: hard-working local people in private lets who have been kicked out since the eviction ban. Their homes are now being handed over to Airbnb. The Chancellor had an opportunity to raise taxes in the Budget. We are criticised on the side of the House for not saying what we would do. I believe that we should double council tax for second homeowners to ensure that there is money to invest in those communities and to provide a disincentive to people wanting to buy too many second homes in those communities. We also need to change the planning laws so that holiday lets and second homes have different categories of planning use, so that local communities in the dales, the lakes and elsewhere in Cumbria can have control over their housing stock.
The consequence of this absolute catastrophe in our housing stock is local families being forced out of the area. The lakeland clearances are happening in our communities right now in this day and age, and that is having an impact on our employers in hospitality and tourism. Some 80% of the local working-age population in the Lake district work in hospitality and tourism, so the Government’s incredibly foolish, cloth-eared policies on visas mean that we are killing the tourism industry not just in the Lake district and the dales but elsewhere. Action could have been taken to prevent this.
I want to talk briefly about health and the hospital improvement programme. The Government are currently putting on the table a proposal that would close Lancaster Hospital and Preston Hospital and merge them somewhere in the middle. For people in the lakes and the dales, that will mean travelling twice as much as they currently do to reach an A&E department that is already too far away. There was an opportunity in the Budget to give money to radiotherapy satellite centres right around the country, and the Chancellor could have awarded one to Kendal, as has been proposed many times in the past. Some people have to make a four-hour return journey for their daily cancer treatment at our nearest centre in Preston. That could have been addressed, but it was not.
When it comes to dentistry, I have had constituents just in the past week being told that their nearest NHS dentist is in Doncaster, Manchester or Newcastle. These are issues that could have been focused on if the Government cared about levelling up rural Britain as well as the areas that have been mentioned.
Last but definitely not least, what about farming, the backbone of our rural communities? As the Government botch the transition from basic payments to the new environmental land management schemes system, we see farmers expected to live on half their income within three years, clearing those people from the landscape too and undermining rural Britain. I wish the Chancellor cared; he has no excuse whatsoever, given that he surely knows.
Mr Deputy Speaker (Mr Nigel Evans)
Bell, we will not put the timer on you; just resume your seat no later than 9.30 pm.