Renters (Reform) Bill

Debate between Wera Hobhouse and Jacob Young

Report stage
Wednesday 24th April 2024 Commons Chamber

[Jacob Young]

The assessment is there purely to determine the timeliness of possession proceedings. In addition, we must acknowledge that there are other barriers to possession, such as the role of local authorities and bailiffs in the process. I hope that that is what the assessment is able to draw out. On Rentstart in my right hon. Friend’s constituency, I do not believe that our reforms will affect its relationships with landlords, but I am more than happy to meet him and Rentstart to understand its concerns more clearly and see if we can do anything to address them.

Government new clause 35 requires the Government to arrange for a review of the new tenancy system, in particular the impact of removing fixed terms and the operation of grounds for possession. That review will be carried out by an independent person, who will produce a report of their findings. The new clause requires the Government to lay the report before Parliament within 18 months of the earliest date on which the new tenancy system is applied to existing tenancies. We recognise that removing fixed terms is a significant change for the sector, and the review will explicitly consider the impact of the change. It will also consider how comprehensive and fair the reformed grounds for possession are, as well as the extent to which they are operating effectively, so that all parties can have confidence in them.

As I have said, the new tenancy system is a huge change for the sector—the biggest in 30 years—and it is right that we commit in legislation to reviewing its impact and implementation, and that we consider whether changes are needed based on real-world evidence. That will ensure that the system works as well as possible for all parties in the long term.

[Wera Hobhouse (Bath) (LD)]

I have mentioned several times in debate, and in a useful meeting that I had with the Under-Secretary of State for Levelling Up, Housing and Communities, the hon. Member for Kensington (Felicity Buchan), who is here, that there is a need to amend the Protection from Eviction Act 1977 at the same time, because there is a danger that frustrated rogue landlords will refer back to that legislation, which is very badly understood and not well enforced by the police and local authorities. Will the Minister say a few things about that?

[Jacob Young]

I am more than happy to address those points before the end of the debate, but I think that I have written to the hon. Lady about them. If I have not, I will ensure that I do in order to be clear about the amendments she has tabled.

Government new clause 36 places a duty on the Secretary of State to produce an annual report to Parliament on the stock of residential tenancies in the private rented sector. That report will need to be provided in the five years after the Bill receives Royal Assent. Reports under that duty would cover, but not be limited to, an analysis of the number, location and size of private rented sector properties. The new clause ensures that regular analysis of such information is available for scrutiny and debate.

I am aware that several Members have raised concerns about the interaction between the property portal and the role of selective licensing. The two systems have separate, distinct purposes: the portal will gather data on private rented sector ownership and property standards in England, providing an information source for local authorities to have oversight of the whole private rented sector in their area. It will help landlords to understand their legal obligations and will give tenants the information they need to make informed choices. Meanwhile, selective licensing provides local housing authorities with the powers to license privately rented properties within a designated area to address specific local issues, including poor housing conditions and high levels of antisocial behaviour or crime. While there will be overlap with data gathered through the portal, the information required for licences in these areas will be specific to the issue being tackled and will support more intensive enforcement action in the areas that need it most.

We do not want to see selective licensing abolished, but we do want to ensure that our reforms are streamlined and that burdens are minimised for landlords and local authorities. That is why I am committing to a review of selective licensing and the licensing of houses in multiple occupation to consider how we can reduce burdens and make the system more effective for landlords, tenants and local authorities. I am keen to work closely with Members and the wider sector on this issue, and will provide further details in due course.

I have sat on many Bill Committees in this House, and have now been privileged to lead my first Bill Committee, facing the hon. Member for Greenwich and Woolwich. He has been a great person to work with and has sought at every opportunity to make sure the Bill works and is effective. I said to him in Committee that we would listen to suggestions for how we can improve the Bill, and we are doing so today. For tenants, we are expanding the homelessness prevention grant and closing loopholes in the system; for landlords, we are introducing an initial six-month tenancy and giving them certainty that our reforms will work. The Bill delivers on our manifesto commitments: it gives tenants security and landlords fairness. Our amendments continue to strike that balance, and I commend them to the House.

National Insurance Contributions (Increase of Thresholds) Bill

Debate between Wera Hobhouse and Jacob Young

Committee stage
Thursday 24th March 2022 Commons Chamber

[Wera Hobhouse]

I rise to speak to amendment 1, tabled in my name and that of my hon. Friend the Member for North East Fife (Wendy Chamberlain).

The increase in the national insurance thresholds for employees contained in the Bill will come into effect only in July this year, but the national insurance rise will commence in April—three months when employees will be facing the 1.25% increase in national insurance contribution payments without any protection through a higher tax-free allowance, and three months in which families will feel the full force of the Chancellor’s tax hike without any cushioning from the rising of the national insurance threshold.

[Jacob Young]

Just to correct the hon. Lady slightly, I believe the threshold will still rise by £300 in April, as was the Government’s original plan. The further increase will come in July.

[Wera Hobhouse]

I thank the hon. Gentleman for those comments, but there is still a gap and the amendment seeks to close it.

The three-month delay will cost working families £2.1 billion and add to their distress right in the middle of the biggest cost of living crisis since the 1950s. Let us remember that the rise in national insurance contributions will hit all working families. A nurse or a midwife on an average salary will see their tax bill rise by £310 next year. A care home worker will pay around £140 more and ambulance staff will see a £420 increase.

Households are facing the biggest drop in living standards for 70 years through a combination of soaring energy costs and Conservative Government tax hikes. The typical family will see a hit of £1,100 next year, according to the Resolution Foundation. Absolute poverty is set to rise by 1.3 million people, including 500,000 children. Never before has Britain seen such a rise outside a recession. The cost of living crisis is biting right now and hitting families today. That is why the Chancellor should implement the changes in the Bill not from July, but from April, as that would save working families £2.1 billion in tax payments.

New clause 3 is tabled in my name and that of my hon. Friend the Member for North East Fife. It would require the Government to produce a report to look at the impact of the 1.25% increase in national insurance contributions on disposable incomes. It would give a true picture of what working families are facing. The statement yesterday hid the true facts. The Resolution Foundation has stated:

“Considering all income tax changes to thresholds and rates announced…Of the 31 million people in work, around 27 million (seven in eight workers) will pay more in income tax and NI in 2024-25.”

Instead, the Government could have cut VAT by 2.75%. That is what the Liberal Democrats would do. Such a measure would help everyone and shield our constituents from the worst of the increased costs. It would put money back into their pockets and genuinely shield those on middle and lower incomes the most. With a floundering economy we need people to spend money on our high streets, which would boost our local economies. A cut to VAT would give an immediate boost to every household, and also help us in the long term.

Mr Deputy Speaker, new clause 4 would require the Government to produce a report on taxation on earned income versus unearned income. The income tax change that will come into effect in 2024 does not benefit people equally. Workers will not benefit from that cut, which instead will benefit those with unearned income from investments, such as landlords. If someone is wealthy enough to get their income from savings and properties they will pay less tax, while the least well-off continue to pay more and more. In response to yesterday’s Budget, the Institute for Fiscal Studies stated:

“What is the possible justification for cutting income tax rate while raising NI rate?...Drives further wedge between taxation of unearned income and earned income.”

It benefits

“those living off rents at the expense of workers.”

Let us look at what the Government have announced and at the inequalities that creates. I hope all Members of the House will support my amendments, to see off the worst from the Chancellor’s disappointing statement yesterday.