Housing in Tourist Destinations

Charles Walker Excerpts

Tuesday 28th November 2023 Westminster Hall

[Several hon. Members rose—]

[Sir Charles Walker (in the Chair)]

Order. I will give you all about six minutes, though we may have to reduce that. I call Samantha Dixon.

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[Rachael Maskell (York Central) (Lab/Co-op)]

It is a pleasure to serve under your chairmanship, Sir Charles, and I congratulate the hon. Member for St Austell and Newquay (Steve Double) on securing this debate. Also, I welcome the new Minister, who is the 16th Housing Minister of this Government; the fact that there is such churn in the Department may well be part of the reason why we are struggling so much.

There is a danger that this debate could descend into the sketch about the four Yorkshiremen, as we all talk about the challenges we face. Nevertheless, I will speak as a York woman—at the centre of that—and say a little about York. We have a thriving tourism industry in our city and we really value it. Last year, 8.9 million visitors came to York. Tourism creates 17,000 jobs in the city and is a vital part of our economy, generating £1.7 billion. The city centre generates £1.2 billion. We know how important tourism is to our post-industrial city; in the last 40 years or so, it has really played an important role in our economy.

As everyone has said, though, tourism has its serious consequences. For York, the situation is descending, as many colleagues have said of other areas, into a dire housing crisis. There are consequences from having significant levels of tourism. We can look, first, at house prices in York, where demand outstrips supply. We know that has a real impact on affordability, the ratio for which is 10.9 in York. Last year, the cost of housing in the city went up 23%, pricing people out of local housing. York has the fourth highest rent in the country behind Oxford, Brighton and London.

Some people cannot get into social housing because we simply do not have the supply. If they have to go into the private rented sector, in the BRMA—the broad rental market area—people get just £650 when they are having to pay £1,045 for a two-bedroom property. Will the Minister ensure that there is a deep dive into what is happening with the BMRA? The price is set around such a broad region, and the lower prices in North Yorkshire mean that York is more of an outlier than the other high-priced areas because of the differential in prices. As a result, people cannot go into the private rented sector, so sadly have to go into hostel accommodation or on to the streets. That has to change.

With such high demand, rent is rising faster than the national average. The average increase was 4.9% in England last year and 6.3% in York. It is becoming more inaccessible to rent or to buy and, as so many colleagues have said, that is partly because of the rise in short-term holiday lets. According to AirDNA, we have more than 2,000 such lets in the city, with a 29% increase between August 2021 and August 2023. As a result, we are struggling. We need to bring in regulation.

It is 891 days since I first raised this issue in the House and we are no further forward. It has been 355 days since I introduced a private Member’s Bill in the previous Session. As we heard, the consultation closed on 7 June but we are still waiting for the outcome. Will the Minister say when the Government will bring forward the response to the consultation and legislate to help constituents like mine?

We have heard about using local revenue to address this issue, but there is also national revenue. We have to make sure that whatever system is introduced is compatible with His Majesty’s Revenue and Customs, because many people do not pay tax on their property to the Treasury. Some estimate that as much as £6 billion is missing. There is a lot we can do with £6 billion, so we need to address that deficit.

There is a particular issue with the impact of our visitor economy on housing. Will the Minister—and, indeed, the shadow Minister—consider setting up a taskforce to look at the specific issues that press down on the urban, rural and coastal communities with a prevalent visitor economy to ensure that we can address the issues in such areas? The hon. Member for St Austell and Newquay mentioned the impact on the local economy—people are clearly needed in the jobs but unable to live in the area—and our vital public services are not able to provide the staffing required to serve the local community. We also know about the impact on our communities.

Finally, I want to raise the issue of York’s local plan. We are still waiting for its approval. Next year we will mark 70 years as a city, without a local plan. Developers are taking advantage of the lack of a plan and, as many colleagues have said, building high-value accommodation when we have a real need for social and affordable housing in the city. I ask for that plan be expedited so that we can get on and start developing the housing that the city needs.

[Sir Charles Walker (in the Chair)]

A beautifully timed speech, might I say.

[Selaine Saxby (North Devon) (Con)]

It is a pleasure to serve under your chairmanship, Sir Charles. I thank my hon. Friend the Member for St Austell and Newquay (Steve Double) for securing this important debate. As always, I agree entirely with him; our constituencies share so many characteristics—although I do dispute where the best tourist destination is.

North Devon has wonderful beaches, the UK’s only surf reserve, remote moorlands and beautiful countryside. It is unsurprising that there is high demand to live in what the Secretary of State for Levelling Up, Housing and Communities called a “very attractive” part of the country. The trend accelerated during and after the pandemic, particularly with the stamp duty incentives that enabled many to purchase additional homes by the coast. We are incredibly proud of our tourism sector, which contributes significantly to our local economy. The hospitality sector contributes £229 million and helps to employ more than 8,000 residents in North Devon.

That is all positive news for our economy, but it takes a toll on our housing market. When I talk to business owners in North Devon, they tell me that one of their biggest challenges is staffing, and that the main reason why is the lack of affordable housing that is available for local people to live in all year round. That sentiment is relayed to me across all sectors. Teachers cannot afford to live in the same areas as the schools they teach in, and with property prices more than 10 times higher than average incomes, health and social care workers in particular have little hope of being able to buy or rent a place to live. Even high-earning professions such as dentistry are affected, as demonstrated by the company mydentist being unable to recruit despite offering a £20,000 golden handshake to entice dentists to move into the area.

Housing is the root cause of so many problems in North Devon. I will not say it is a magic wand, but if we freed up and delivered new housing supply, it would allow people to live, work and, most importantly, play a part in the community that they grew up in.

I have spoken before about how the planning system does not account for or factor in the challenges that face rural communities, but I want to focus on a particular problem that is acute in tourist destinations: short-term holiday lets and Airbnbs. In North Devon we have seen a 67% drop in the availability of long-term rentals since the end of the pandemic. Swathes of landlords have evicted their tenants from long-term homes to flip them into short-term lets, and they continue to do so. This week it was reported that the rate of section 21 evictions in Devon was higher than last year.

I know that short-term lets and Airbnbs bring a range of benefits to our tourism economy, but they really have affected the availability and affordability of local rental housing and have inevitably inflated house prices. We must rebalance our housing market so that local people can live and work in the area. I know that the issue of short-term lets will involve cross-Department collaboration; to rebalance the long and short-term rental market, we urgently need to look at the taxation inequalities between those two sectors that were introduced by George Osborne and came fully into effect during the pandemic.

I place so much emphasis on short-term lets because they are properties that would otherwise be let to local people for them to live in all year round. At this time of year, so many of them are empty, creating ghost communities. We have started to make strides with the Levelling-up and Regeneration Act 2023, and I welcome the Department for Culture, Media and Sport’s consultation on a registration scheme for short-term lets, which is a crucial first step for communities to have their say on the availability of housing to rent or buy in their local area. However, I join colleagues by asking, as with so many consultations, what is happening now? I know the consultation has been completed, and my understanding is that there was much support for a scheme, which is now long overdue despite being supported by the industry.

Fundamentally, there needs to be an increase in housing overall, but not just any housing. Indeed, I oppose housing targets because North Devon had built to target, but there is still nowhere affordable for anyone to live. The current preferred design for local housing seems to be massive executive homes, which push property prices ever higher. Communities cannot function without carers, teachers, doctors and nurses, yet they are being forced out because there is simply nowhere for them to live. It is not right that families are about to spend their second Christmas in a holiday park because of the lack of homes.

When the Devon housing commission visited, it observed that we have net migration of retired people into North Devon, and the housing that is built also reflects that trend. Indeed, why would people not want to retire somewhere so stunning? But that puts further pressure on public services, which struggle to fill vacancies due to the housing situation. Yes, we need to build more houses, but the crisis is urgent and we need quick solutions.

There are existing derelict buildings that could be converted into housing. There are liveable areas above shops that could be converted into flats, but that has been stopped because of an 84-year flood risk. People need housing now and every option should be looked into, as the situation will only get worse without intervention. Given this opportunity, I commend to the Minister my council’s Ilfracombe proposal. In North Devon, we are at risk of creating a cross between a care home and a holiday park, and we do not have the staff for either. Tourism is essential to our economy, but it cannot be at the expense of local people finding a home. We can and must find a balance.

[Sir Charles Walker (in the Chair)]

Sorry, but I have to drop the time limit to five minutes. I call Tim Farron.

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[Sir Charles Walker (in the Chair)]

I call Derek Thomas—sorry, Jim; I thought you were sitting down.

[Jim Shannon]

It is clear that the Government have taken steps to address these issues in England, but it would be great to know that communication is under way to assess the situation further afield in the devolved nations and to share ideas, strategies and planning laws, so that we take a united approach in ensuring local housing provision for people in all constituencies of this great United Kingdom of Great Britain and Northern Ireland. We are always better together.

[Sir Charles Walker (in the Chair)]

Sorry for my premature calling of Derek Thomas; I saw some movement.

[Derek Thomas (St Ives) (Con)]

I appreciate the warning, Sir Charles; I would never want to interrupt the flow of the hon. Member for Strangford (Jim Shannon). I commend my hon. Friend the Member for St Austell and Newquay (Steve Double) for securing the debate. It is great to have him back on the Back Benches, continuing his battles for West Cornwall and the Isles of Scilly, Devon and the rest of the south-west.

There is a reason why the areas that we live in and represent become tourist destinations: they are beautiful. Most—I think over 80%—of my constituency is designated in some way or another. People flock down to it. I know that it is the most beautiful part of the country, because I get messages from colleagues all year round telling me that they are down in my patch or have just been there.

It is inevitable, because of the places we represent, that tourists will turn up, and they are welcome. Jobs are created because of the services they need and tourists support rural businesses. Many of our rural shops would probably struggle if tourists did not support them when they visit. Tourists’ contribution to the economy is important, and there is the effect on construction. We have also seen, particularly since covid, that tourists become residents. They purchase property because they enjoy what they see and discover that they can work from home, so they come and live in our beautiful part of the world. Again, that brings jobs and investment and supports rural businesses and construction.

This is not a new thing. I did my apprenticeship 35 years ago as a Cornish mason. I am probably the only one in this place who is a Cornish mason—I am not a freemason; I used to charge. We used to work with slate, stone and obviously the wet trades. Most of my winters were spent working to support the tourist industry or working for people who had purchased properties and were planning to move down. This issue is not new, but it does carry consequences, which we all know of and have heard about this afternoon. It is true that successive Governments have largely allowed free market principles to determine the destiny of these communities. I am glad that this Government are recognising that the situation cannot carry on and intervention is needed.

As we heard, our communities have been hollowed out. Pubs, schools, post offices and shops have closed. The lights are turned off in the winter; that is common in some villages in the area I represent. More importantly and more concerningly, older, vulnerable people become even more isolated and alone—that is really tragic, and if Members are interested in that, I have a debate on the subject next week. The Government have introduced various ways to deals with this issue, including Help to Buy, stamp duty premiums and levelling up and regeneration, which we have heard about a lot today.

The truth is that a secure home is one of the most important things we can deliver for our constituents. The stress levels of families, as well as their health, their children’s education and family wellbeing are all impacted by whether they have a secure and affordable home. That is the only reason why we are all here this afternoon. Ensuring the right balance of local homes and holiday accommodation brings with it many benefits, as we work to strengthen local communities and create places to live, work and raise a family.

Those of us representing tourist areas face a challenge, but that challenge offers huge opportunities to restore communities who feel left behind. Ramping up house building in the right places to meet local need is a really important way of addressing skills shortages and supporting pubs, schools, post offices and so on. Perhaps the Minister would like to have a word with planning departments, which seem to stand in the way of our seeing houses built in parts of the land that are ideal for supporting rural communities. Maybe he could encourage them to help rather than hinder the building of the right homes in the right places to support those communities.

Building homes ramps up skills and enables young people to stay in the local area and be part of their community, having a secure, well-paid job. Historic England has just released an important study about where the skills shortages are across every constituency, focusing particularly on existing homes and how we resolve those shortages. We must also fix rural service funding. If we fix the funding of rural areas, recognising that tourism demands certain services that other places perhaps do not need, putting pressure on the NHS, policing and so on, we can begin to build good, strong communities.

[Sir Charles Walker (in the Chair)]

I call the Scottish National party spokesperson. You have no more than 10 minutes, please.

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[Justin Madders (Ellesmere Port and Neston) (Lab)]

It is a pleasure to see you in the Chair, Sir Charles. I start by congratulating the hon. Member for St Austell and Newquay (Steve Double) on securing the debate. I also welcome the Housing Minister to his role. Reference has been made to the rapidity of changes in the identity of the Housing Minister. One wonders whether, with such a rapid turnover in the occupants of the Housing Department, it should be sponsored by Airbnb.

The hon. Member for St Austell and Newquay set out very well the challenges facing his constituency: the pressure on the housing market, the issues with recruitment, and the stark disparity between the average house price and the average wage in Cornwall. He was right to welcome the increase in local housing allowance and to mention the pressure placed on parish councils—all local authorities will recognise that.

My hon. Friend the Member for City of Chester (Samantha Dixon) showed what an excellent Member of Parliament she is and what an excellent council leader she was in bringing back council housing. She now has a third role as an excellent advocate for the Chester tourist board, because she spoke glowingly about the wonderful attractions in Chester. However, she really identified the nub of the issue, which is how right to buy has turned into private rented sector lets, which have turned into short-term lets. That is really at the root of the problems we are discussing. As an MP with a neighbouring constituency, I can see that the pressures Chester is experiencing are having an impact on the wider housing market.

The hon. Member for East Devon (Simon Jupp) spoke about the balance that needs to be struck between the competing demands in his area. That is absolutely the right way to look at this issue.

It was a pleasure to hear from my hon. Friend the Member for York Central (Rachael Maskell). She spoke in stark terms about the pressures in York, with a 23% increase in house prices and the fourth highest rents in the country. However, she also talked about a £6 billion tax deficit—money that is not reaching the Exchequer—and I am sure my colleagues in the shadow Treasury team will be looking at that with interest. She also made the important point that this is a cross-departmental issue and that a taskforce approach should be considered. I will certainly take that point back to others in the team.

Cross-departmental approaches were also raised by the hon. Member for North Devon (Selaine Saxby), so it is absolutely clear that there is more than one tool in the arsenal that we can use. She also mentioned the pressures this issue puts on education and dentistry, and I think we all recognise the pressures that those parts of the public sector face.

The hon. Member for Westmorland and Lonsdale (Tim Farron) talked about average house prices in his constituency being 12 times average incomes. I think we can all see why it is absolutely impossible for young people, in particular, to get on the housing ladder when they face these issues. The hon. Member was also right to raise the impact these issues have on recruitment in the hospitality and care sectors.

The hon. Members for Truro and Falmouth (Cherilyn Mackrory), for Strangford (Jim Shannon) and for St Ives (Derek Thomas) also all spoke with great passion and sincerity about the issues this subject brings up. To summarise the crux of those issues, it is clear that the housing problems in tourist hotspots have spiralled over the last decade and that the Government have not got a handle on the situation. As a result, local people are facing deep problems in accessing affordable housing.

Those who live year round in some of the most beautiful parts of the country are being squeezed out by the owners of second homes and the proliferation of short-term lets. People who have grown up in an area, who work there and who are the bedrock of the community now feel secondary to those who spend just a portion of their time there. I think we can all see how that direction of travel has hollowed out communities, and the consequences that can flow from that.

Having said that, as other Members have said, there is clearly a balance to be struck—one I think we all appreciate. Tourism is crucial to local economies, and indeed to regional and national economies, and many local communities rely on an influx of visitors to keep their economies going. In some places, tourism is the No.1 income generator, and we cannot ignore that. The availability of accommodation is also an important element in attracting people to visit a particular destination.

However, I reiterate that a balance has to be struck. For these destinations to thrive, there needs to be a community that underpins the hospitality at attractions; otherwise, who will be there to run the services that both visitors and locals rely on? Unfortunately, I think that that balance has got out of kilter in recent years, and the consequences that flow from that have been set out today.

Demand for housing has spiralled in many tourist destinations across the country. It was reported that, in the south-west alone, 3,000 new holiday and second homes were listed during the pandemic, while the number of homes listed for normal letting halved and rents increased significantly. In Wales during that period, there was a 5% increase in the number of holiday lets, with average rents rising from £155 to £181 a week. As a consequence, house prices in those areas have spiked.

The ONS reported in September 2021 that house prices were rising at three times the national rate in some of these areas—places such as Conwy, north Devon and Richmondshire have experienced increases of more than 20%, continuing trends that had begun in the pandemic. A report published today by the CPRE shows that demand for short-term lettings grew by 661% in Cornwall in the five years to September 2021, and by 1,231% in South Lakeland between 2016 and 2020. Nationally, the number of short-term lets has increased by more than 1,000% since 2015. This is not just one part of the country; it is north, south, east and west—every place that has significant tourism activity is seeing the same. For many people in many parts of the country, the cost of purchasing a home is already out of reach; in these tourist areas, that dream is even more unobtainable for too many people.

This issue stretches far beyond the challenge of actual home ownership. In Cornwall, for example, 15,000 families are on waiting lists for social housing, which, coincidentally, is the number of properties being marketed as holiday lets. In South Lakeland, roughly half the families in need of social housing could be accommodated in the properties that are made exclusively available for holiday lets. In Cumbria more widely, the 4% decline in privately rented properties has coincided with a 14% increase in social housing waiting lists since 2016. In Devon, it is clear that short-term lets are making problems worse, with 4,000 homes taken out of the private rented sector, but 11,000 added to the short-term lets sector since 2016. Those damning statistics lay bare the impact of what happens when the balance is out of kilter. Does the Minister accept that there is a clear link between the number of private rented properties and short-term lets?

It is beyond doubt that the deregulated nature of the short-term letting sector is deeply problematic. There needs to be an overhaul of the regulatory framework. We would also argue that there is now a watertight case for giving local authorities that are struggling to cope with this issue the necessary powers to protect the sustainability and cohesion of their communities.

Reforms have been attempted on a small scale, but nothing substantial has been done to get to grips with the problem. For example, Members have talked about the consultation conducted and completed in June, and I am sure all Members will want to hear from the Minister about when it will be published. But this piecemeal, foot-dragging approach is patently not enough to tackle the deep problems faced in our communities. The Government are still opposed to, for example, the introduction of a discretionary licensing scheme of the kind the Opposition have proposed on numerous occasions. We believe that such a scheme would be part of the solution to tackling this issue.

We welcome the consultation on the new planning use class, just as we welcome the commitment to introduce a new discretionary registration scheme. However, there is a sting in the tail—giving with one hand but taking away with the other—because the new consultation also invites views on introducing new permitted development rights that would in fact make it easier to convert dwelling houses into short-term lets. Perhaps the Minister can explain the rationale for including that in the consultation and how it will help with the problems we have been discussing. I encourage hon. Members to see what investors are saying about that part of the consultation. They are happy with the consultation overall because it is light-touch and it will make it incredibly attractive and easy for them to continue to convert properties into short-term lets.

The time has gone to recognise that this is an issue; the time has gone for sticking-plaster solutions. Communities urgently require a response that is up to the scale of the problem they face. We urge the Government to accelerate the introduction of the discretionary registration scheme and to legislate for the introduction of a new planning use class for short-term lets without delay. Nothing less than a full array of planning and non-planning tools is needed to appropriately regulate the number of short-term holiday lets. If this Government will not get on with it, they should step aside and leave it to a Government that will.

[Sir Charles Walker (in the Chair)]

Minister Rowley, could you leave a minute at the end for Steve Double to wind up, please?

Havering Council: Funding

Charles Walker Excerpts

Tuesday 28th November 2023 Westminster Hall

[Sir Charles Walker (in the Chair)]

I will call Jon Cruddas to move the motion, and then the Minister to respond. As is the convention in 30-minute debates, there will not be an opportunity for the Member in charge of the debate to wind up.

[Jon Cruddas (Dagenham and Rainham) (Lab)]

I beg to move,

That this House has considered funding for Havering Council.

This afternoon, I want to: highlight the financial situation facing the London Borough of Havering; ask for help and support from the Government; request a joint approach to remedying the situation; and offset the dangers of a section 114 report by the council’s chief financial officer, which would effectively freeze all non-statutory spending.

There is obviously also a wider national story here. Councils continue to face increasing demands for statutory services, especially adult and children’s social care, the provision of temporary accommodation, and homelessness support. Demographic forces are driving up demand for those services, and that affects some councils more than others. Meanwhile, central Government grant funding for councils dropped by some 40% in real terms between 2009-10 and 2019-20; it has gone from £46.5 billion down to £28 billion. Consequently, councils are more and more reliant on local funding through council tax and business rates. That has not been enough to compensate for the drop in central Government funding.

Since 2021, five local authorities have declared themselves effectively bankrupt because their costs are larger than their resources. Slough, Croydon, our neighbours in Thurrock, as well as Woking and Birmingham City Council, have all issued section 114 notices. Until recently, section 114 notices were generally seen as the result of financial mismanagement or equal pay backlogs. That is changing, however. Section 114 notices are increasingly likely to be issued by a significantly larger pool of councils, due to a one-two punch of demographic changes and dramatic shifts in funding. Combined, these changes mean that a whole series of councils look likely to become trapped in a position in which the cost of social care and homelessness exceeds their resources.

Many local authorities are already issuing warnings about section 114 notices. These include city councils, such as Sheffield, Coventry, Southampton and Nottingham; district councils, such as Mole Valley, Chelmsford, St Albans and South Cambridgeshire; borough councils, such as Windsor and Maidenhead, Surrey Heath and Wokingham; and county councils, such as Hampshire, Kent, Derbyshire and Northamptonshire, alongside councils such as Medway, Bradford, Barnsley, Rotherham and Manchester.

These councils do not fall on one side of a strict party political divide. They include councils from across the country, and from north and south; councils urban and rural; and councils led from both the left and the right. For instance, one in 10 of the so-called SIGOMA group —the Special Interest Group of Municipal Authorities, which represents 47 urban local authorities—has reported considering issuing a section 114 notice this year, and 20% say it might be possible in the next year. Similarly, one in 10 members of the County Councils Network reports facing effective bankruptcy. If we look at politics, the list includes Surrey Heath Council—the local council of the Secretary of State for Levelling Up, Housing and Communities—and various Labour-led authorities across the country.

Despite local authorities’ dire financial situation, the autumn statement had no new money for social care services, or any general local government funding beyond what was announced last year. However, I note that the Government increased local housing allowance rates last week, which is to be welcomed.

Although the language of local government often appears technically complex and incredibly dull and boring, we might conclude that much of British local government—a significant portion of the British state—is in danger of literally going bankrupt. This reality stretches way beyond those authorities that have already effectively declared themselves bust, and it has huge implications for public life across a range of services, from refuse collection, housing and homelessness, to education, social care, tackling antisocial behaviour, estate management, libraries and youth services—the list goes on. It is estimated that some 90% of councils have been using their reserves to meet their statutory duties, although some are more fortunate than others in that regard. I will come to that in a minute.

Take the general situation in London. According to London Councils, the capital’s boroughs’ overall resources are about 18% lower than in 2010-11 in real terms, but the population of the capital has grown by almost 800,000 since then. London boroughs need to make some £500 million of savings for 2024-25, to meet an estimated £2 billion funding gap over the next four years.

The next few weeks are critical. Councils will shortly receive their settlement figures, probably just as Parliament goes into recess. Following consultation, the figures will be confirmed in the middle of January, and council tax will be set in early March. It is against that general backdrop that I want to consider the situation facing Havering.

I should make three initial points regarding Havering. First, Havering has been very open about its predicament. In September 2023, the leader of the council, Ray Morgon, warned that the authority could be six months away from triggering a section 114 notice because of the escalating costs of social care and housing. Although other boroughs have tried to obscure their financial position and in effect hide from the communities that put them in the town hall, Havering has levelled with residents from the outset about what is going on. I very much welcome that as a mature form of civic leadership.

Secondly, Havering is generally regarded as a well-run and efficient council. It has low borrowing, unlike Croydon or Slough, and it has no historical pay claims, unlike Birmingham. It has the lowest unit costs in London, according to the well-regarded LG Futures consultancy, and is the third most productive council in the country, according to the consultancy IMPOWER. The situation it faces is very different from that of its immediate neighbours. Thurrock, for example, provided £655 million to companies via bonds, including for the purchase of some 53 solar farms. It shares a border with Barking and Dagenham, which I partly represent, and which has an accumulated debt of £1.2 billion. Havering is in a very different situation, and has not embarked on ill advised speculative activity to try to offset funding challenges.

Thirdly—this is not a party political issue—until May last year, the borough was a Conservative-led authority. Today it is run by 22 representatives of Havering Residents Association, supported by Labour’s nine councillors on the authority. On the scale of the financial challenge facing Havering, we have to bear in mind that local government funding continues to use a distribution model dating from 2013, based on data from the 2011 census. The model is ill equipped to deal with the kind of population flows that we have experienced in outer east London over the last decade.

Attempts at establishing a revised fair funding formula based on demographic change and modern need have effectively been parked by the Government, with pretty disastrous consequences for boroughs such as Havering. Moreover, the authority has limited resources to help take the strain. Havering’s reserves are the second lowest in London, standing at some £47.8 million. Meanwhile, the borough receives the third lowest settlement funding assessment in London, yet it remains in the top quartile for income collection.

The scale of the problem becomes apparent when we consider the demographic pressures facing adult and children’s social care. Havering has the second oldest population in London on the one hand, yet it has the fourth fastest growing children’s population in the entire country among those aged 0 to 14. On the growth of the child population, the Department for Education uses more recent data to allocate children’s school place capital funding. For 2025-26, it has allocated Havering a staggering 57% of all of London’s schools basic needs capital funding. That demonstrates the extraordinary expansion in the borough’s child population. That statistic shocked me, and it shows how important it is to use the latest data in distributing our resources. The other 43% of that funding is divided up between London’s other 33 boroughs. That is just one vivid statistical example of the changing demographics in the capital, of Havering’s growth and growing numbers of young people, and the escalating demands that that places on statutory expenditure.

As for the financial situation, Havering is currently forecast an overspend of some £23 million. In terms of its recent track record of budget setting, since 2010 it has delivered a mix of £163 million in savings and income generation, most of which has been reinvested in other services. It has also sold off £160 million of assets over the last 10 years.

To illustrate the scale of reduced support from central Government, Havering received nearly £100 million in central grant in 2010-11. That was reduced, in just over a decade, to just £37 million in 2023-24. Its budget gap is currently estimated to be some £31.2 million for next year, and £77 million over the next four years, against a net budget of £182 million. Currently, it has the fifth highest council tax in London. I accept that, for 2023-24, the authority’s core spending power was increased by some £18 million, including the council tax social precept, yet the pressures from social care were already £20 million in 2022-23, so the increased funding did not address additional demand and inflationary pressures for 2023-24.

On children and adult social care costs, it is estimated that the rates paid to providers for adult social care has increased by 33% since 2019-20, and children’s placement costs have risen by 49% over the same period. Those rises are partly accounted for by care home costs charged by hedge fund owners. In Scotland, in contrast, those running care homes have to be not-for-profit organisations. Basically, for-profit care is crippling our councils. Placements for our children can cost tens of thousands of pounds a week.

To add to that, Havering is seeing a large increase in those presenting as homeless, especially families. That is partly the effect of out-of-borough placements by other London local authorities, partly the effect of the housing benefit cap, and partly due to general migration to outer east London. It is now costing the authority some £3.5 million in cumulative accommodation costs.

Despite those extraordinary demand pressures, over 80% of Havering’s core income now comes from council tax. To repeat: it received the third lowest settlement funding assessment in London.

Levelling Up: South-west

Charles Walker Excerpts

Tuesday 4th July 2023 Westminster Hall

[Sir Charles Walker (in the Chair)]

I will call Mr Ian Liddell-Grainger to move the motion and then call the Minister to respond. Mr Liddell-Grainger is feeling generous, so he will take short interventions.

[Mr Ian Liddell-Grainger (Bridgwater and West Somerset) (Con)]

I beg to move,

That this House has considered levelling up in the South West.

It is always a pleasure to serve under your chairmanship, Sir Charles. I am delighted to see you. I thank the House for granting me this short debate.

The phrase “levelling up” is not a recent innovation, believe it or not. It was talked about in Parliament 150 years ago, as some hon. Members may remember. In the 1860s, for example, their noble lordships and the bishops were getting bogged down in another place debating delicate questions about rival religions in Ireland. A wise old peer intervened and said that we could only treat Anglicans and Catholics equally

“by levelling up or by levelling down”.—[Official Report, House of Lords, 29 June 1868; Vol. 193, c. 183.]

I do not know whether hon. Members can make head or tail of that, but that is levelling up.

I am delighted that the Minister for Levelling Up is in her place; I am so pleased that she is replying to this debate, and I thank her for her thoughts and kindness. I doubt whether there is any political disagreement about the principles of keeping everything level. Why should there be? It means working to equalise opportunities and providing a level playing field for constituents across the UK. Right now, the only people who could possibly object to a level playing field, as we understand it, are the Australian cricket team, and I am pretty sure that Jonny Bairstow would agree with me—damned foreigners!

The Department for Levelling Up, Housing and Communities, in which my hon. Friend plays an invaluable role, has published some maps that are very detailed indeed. They show how much money has been allocated to a huge array of projects in our constituencies all over the country. They are very large maps, covered with multicoloured markers. They remind me of the huge maps down in the depths of the RAF Uxbridge command centre on the western outskirts of London, where I have been recently—it may ring some bells. Those maps are from 83 years ago, so I am glad to see that we are still using the old tried and trusted methods.

It is helpful to keep that image in mind, because the scale of the task in levelling up is almost as heavy as it was for the battle of Britain. It is a herculean task, especially when we study those maps. As one naturally would, I immediately noticed the markers in my own constituency. Bridgwater’s transport needs have had to be reorganised with a very large grant indeed, for which I am incredibly grateful. The towns fund, for which I am also very grateful, will be used to bump up facilities in the constituency. There are also to be a new NHS training centre for Bridgwater and Minehead. These are well thought-out projects, and I am very grateful for the money. It has been a great team effort by a lot of good people.

Inevitably, my eyes wander around these vast maps. I know Somerset, and as colleagues know, I come from Devon originally. Strangely, the bits that stick out are not the places with coloured markers; they are the areas without a single flag or marker in sight, like Mid Devon. There ought to be only two possible conclusions: either those places are so prosperous that they do not need help, which colleagues well know is not the case, or they are bleak, empty deserts where nobody lives at all, which is obviously not true either—they are extremely good areas. In fact, levelling up has not reached these places either because bids have been submitted but have not made it or because there have been no bids at all.

It would not be fair to blame the Government. That is not how this works, and we know it. The rules of levelling up have not changed, from the first opportunity we went for many years ago to what we have now. If we want a project to be considered, we have to do one simple thing: work out exactly what we hope to achieve and then make a very intelligent, well thought-out bid. I get the distinct impression that sometimes—not just in my constituency, but right across the area, because I have looked at an enormous amount of bids—the intelligence is in slightly short supply. There has to be a proper business case, as the Minister is well aware.

I currently represent an area that has an exceptional district council, which has spearheaded the bids. Sedgemoor District Council has been a shining example in this and has had more bids than anywhere in the country. It understood local needs; it also got local people involved at the highest level. At the same time, it managed to mastermind national and international negotiations to bring many thousands of jobs to Bridgwater, and beyond. In fact, this affects all our constituencies.

Vagrancy Act 1824

Charles Walker Excerpts

Tuesday 13th April 2021 Westminster Hall

[Sir Charles Walker (in the Chair)]

I remind hon. Members that there have been some changes to normal practice in order to support the new hybrid arrangements. Timings of debates have been amended to allow technical arrangements to be made for the next debate. There will also be suspensions between each debate. I remind Members participating physically and virtually that they must arrive for the start of debates in Westminster Hall. Members are expected to remain for the entire debate.

I also remind Members participating virtually that they are visible at all times both to each other and to us in the Boothroyd Room. If Members attending virtually have any technical problems, they should email the Westminster Hall Clerks’ email address. Members attending physically should clean their spaces before they use them and as they leave the room. I would also like to remind Members that Mr Speaker has stated that masks should be worn in Westminster Hall. One Member has notified me that he has to leave for another very important debate in the main Chamber, and I have made provision for that.

--- Later in debate ---

[Nickie Aiken]

The hon. Gentleman is absolutely right. I do not know a charity involved in rough sleeping and homelessness that does not agree that the Vagrancy Act should be repealed.

If we get this right, it will end the revolving door that too many rough sleepers currently experience, whereby they accept outreach help and are placed in accommodation, but too often find themselves back on the street because their underlying mental health issues or addictions have not been tackled. Even on the coldest day of the year and during adverse weather conditions brought on by the likes of the “beast from the east”, a considerable number of people chose to ignore the no-questions-asked help of a hot meal and a roof over their head, whether from a local authority, a church, a community centre or a mosque. They are so fearful, mistrusting or mentally unwell that they prefer to remain outside in below-zero temperatures, where they feel safest.

There are more than 400 beds available on any given night in Westminster alone for rough sleepers. However, we must not just offer a bed. The accommodation available rarely comes with the vital health services required to help turn a person’s life around and address often years—sometimes decades—of abuse, poor mental health and addiction. But there is a clear solution: replace the Vagrancy Act with a new approach that places the preservation of life at its core through assertive outreach, alongside social care and specialist medical support, all attached to the safety of a bed. We need addiction counsellors, psychiatric help and medical support for those who have suffered years of sleeping rough.

The Government’s Everyone In strategy, in response to the covid-19 pandemic, saw an incredible 90% of rough sleepers accept accommodation, demonstrating that when central and local government work together, we can achieve impressive results, but what about the other 10%? Throughout the first lockdown, about 100 people in Westminster refused all help and remained on the street. I saw many of them myself. They were clearly very ill, with serious addiction and mental health problems.

Having witnessed what I have, and having spoken to former rough sleepers, outreach workers and other experts, I know that it is clear that if we are to end rough sleeping for good, a fundamental shake-up of mental health services is required. Charities including The Passage, Crisis and St Mungo’s have highlighted that outreach workers today find it near impossible to secure mental health assessments for rough sleepers. Even when one has been secured, often the vital missing piece of the jigsaw is a specialist bed for that person.

People on the street with the most complex needs often lack the mental health capacity to make decisions for their own wellbeing or accept help from others. At present, a rough sleeper’s mental state has to become so acute that he or she is self-harming or at risk of doing so for the police to take emergency action, and only then might they have a mental health assessment. By that stage, it is far too late, which is why we need an assertive outreach approach. We need outreach workers working in partnership with specialist homelessness mental health teams that can undertake mental health assessments under the Mental Health Act 1983, as well as other types of assessments on the street, with rapid access to specialist bed spaces. We then need the health services required attached to the bed that the rough sleeper is referred to. I would welcome it if the Minister can address that point and consider reintroducing street-based mental health services.

Of course, none of that can happen without the backing of long-term sustainable funding. I again ask the Government to give due consideration to extending the time period of funding allocations for such service to at least three years, preferably five, rather than the current annual basis.

As we slowly and carefully begin our journey out of the pandemic, much is in flux. However, we now have a golden opportunity to build upon Everyone In, to learn from that initiative and to reshape our response, so that we have the services we need to achieve our shared goal of ending rough sleeping. The Government, I believe, are willing and able to end rough sleeping. Repealing and replacing the Vagrancy Act, longer-term funding attached to mental health services and accommodation and re-establishing street-based mental health services will do just that. I look forward to the contributions of other Members and to the Minister’s response.

[Sir Charles Walker (in the Chair)]

Back-Bench colleagues have around nine minutes each.

Planning for the Future

Charles Walker Excerpts

Tuesday 15th December 2020 Westminster Hall

[Sarah Olney]

I thank my hon. Friend for making that point, because it highlights the fact that the more we weaken the planning decisions made by local authorities at local level, the more we risk allowing unsuitable development, including architecturally displeasing development, environmentally damaging development and development that is not primarily designed to meet the needs of the local community. That is why bypassing local authorities is the wrong approach.

The planning White Paper proposes to bypass much local authority planning involvement in the mistaken belief that it is local nimbys who are blocking development. In my constituency, it is local people who have provided many of the ideas for local authority action that have improved our environment and guided planning policies. Local authorities, especially Liberal Democrat-controlled ones, are often willing to go much further than the national Government in reducing carbon and improving our environment. In Richmond and Kingston, for example, the councils have introduced new cycle lanes to encourage people to reduce the number of car journeys they make, and electric vehicle charging infrastructure to encourage the switch to cars with lower emissions. Liberal Democrat councils up and down the country are also planting trees, installing solar panels on the roofs of council buildings, switching council vehicles to electric, and insulating council-owned homes. In each case, they are responding to the needs of their own environment and that of their local population.

When the public inquiry into the handling of the coronavirus is completed, I believe that it will clearly demonstrate that some of the response could have been more effectively delivered by local authorities or neighbourhood groups. We have seen the weaknesses of a centralised test and trace system, for example, and even today the Government are setting central rules for school openings that might be better decided by local education authorities.

The same is true for planning. A group of concerned local residents, whether elected representatives or volunteers, are much better placed to decide how their street should be adapted to keep pace with the challenges of modern life than a few unknown Government workers in Whitehall. If all bodies making decisions about future developments can be tasked with the responsibility of achieving net-zero carbon and protecting our environment, then the ingenuity and enthusiasm of our local authorities, and the residents they serve, can take us a lot further towards the Government’s 2050 goal than any amount of top-down diktat. It is time for the Government to show they are serious about climate change and the environmental emergency, and that starts with some serious revision to this planning White Paper.

[Sir Charles Walker (in the Chair)]

We have had a few drop-outs, so I will allow five minutes per speaker.

--- Later in debate ---

[Damian Hinds]

The hon. Member raises important points. There is a need for housing of all different types, sizes and tenures, and there are different ways of delivering them. In the time we have available, I am afraid we are not going to get to the bottom of evaluating them in an ordinal way.

The third and important point I want to make is about national parks. I do not know whether there are others here who represent national park areas. There is the particular issue where part of a constituency is in a national park and parts are outside, so there are very different constraints in how land can be used. There is a danger that if a housing target or requirement is set based on the entire area, containing both national park and non-national park, with different constraints on what can be done in each part, the result will be the insufficient creation of new homes inside the national park and potentially too much on the edge.

A piece of work came out from Nationwide a few weeks ago that suggested that house prices in national parks have something like a 20% house price premium compared with those outside. In a constituency such as mine that is a huge amount of money. The Office for National Statistics is doing some further work, so hopefully we will be able to develop those figures. It is also important for the areas just outside the national park. In my constituency, that means areas such as Alton and Four Marks, where there is potentially a disproportionate amount of development in the border zone that can put considerable strain on infrastructure and provision of service. It can then be difficult to ensure adequate provision.

There has been a lot of debate about the proposals. Ministers have been in listening mode and have been very good in listening to colleagues across the House. I hope, as the matter develops further, it will be possible to take these considerations into account.

[Sir Charles Walker (in the Chair)]

You are all being very well behaved on timing, far too well behaved. I might have to lift the time limit.

--- Later in debate ---

[Scott Mann (North Cornwall) (Con)]

I thank the hon. Member for Richmond Park (Sarah Olney) for bringing forward such an important debate. Others in the Chamber will no doubt make arguments about algorithms and housing numbers, but I want to focus my remarks on the delivery of affordable housing, particularly in our Cornish communities. Obviously, that goes hand in hand with housing targets.

Cornwall has a proud track record of delivering 30% affordable housing over the past 10 years. I would not be in this place if, at 29 years old, as a postman, I could afford an open market house in my home town. That was the driving force for my getting involved in politics; I wanted to give people opportunity. At the time, the Labour Government seemed very interested in providing houses for people who were out of work, but not particularly interested in trying to help people who were. I support the Government’s plans for key worker housing, particularly the 30% key worker discount that the Secretary of State announced recently—I am very keen to support that.

Cornwall has a very low wage base and a very high house price market, and that creates all sorts of intrinsic problems with our housing stock. One of the ways that we saw to that in my time on the district council, before it was abolished, was to implement a community self-build scheme in a community very close to me, so that locals were able to purchase a plot of land and build their own houses. It was an exceptional scheme, and I hope the Government and Ministers will look at it.

We have done a lot of work on sites such as rural exemption sites. They are not completely a panacea, but I would like to see their use increase to allow local people in towns and villages where there is not a development boundary at present to get a house in the town or village in which they grew up.

One issue that I want to cover is public sector land. Cornwall is supposed to be integrating into the One Public Estate programme, but we have had some significant problems, particularly with the NHS property holdings company, which seems to want to keep hold of its land. If the Minister is able to apply some pressure to it, we would be very keen to get hold of some of its land to provide some key worker housing for our community hospitals, particularly in the Bude and Stratton area.

We have had significant challenges in the system with land values. I frequently talk to developers in Cornwall, and they say that they have long discussions with planners about affordable housing criteria, road allocations and access, which take forever. We really need to start delivering houses for people now, so I would ask that we look at speeding that up.

I would also ask that we consider more accurate town and village housing data. Some of our town and parish councils have been exceptionally good in collecting information about the people who are in need of housing in their areas and what the tenure mix needs to be, and I would ask that we look at that. I know that the Government are making progress on the challenges around sizeable deposits, and I welcome the Prime Minister’s commitment on longer term mortgages. I think that is a good step.

I have highlighted some of the problems, and there are also the challenges relating to covid. A lot of people wish to relocate their businesses and move to Cornwall, and that is a great thing. If they are taking second homes and living in them permanently, that is an exceptionally good thing, but it puts more pressure on Cornish housing stock. If the Minister is looking at pilots, we would be very keen to have a community self-build pilot in Cornwall to demonstrate our willingness to support people. I also ask the Minister to apply some pressure to Cornwall Council, which seems very resistant to the idea of Rentplus, which I think is an exceptionally good model for people who do not have a deposit but want to own a house, and want to use the rent that they pay as a deposit for their mortgage.

On NHS property holdings, can we get One Public Estate working so that we can get key worker housing for some of our nurses in Bude and the surrounding areas? Can we simplify the system so that developers do not have to go on a massively long journey to get the planning that they are seeking? Can we have a service plot provision in Cornwall as a pilot, more flexible tenures, and a simpler planning system for schemes that are exemption sites? Can the Minister look at agricultural ties? So many farmers approach me to say their family are looking to build a house on land. Can we look at that as well, please, Minister?

[Sir Charles Walker (in the Chair)]

We are going to have a vote soon, so I might have to cut off Harriett Baldwin in full flow, but we will bring her back—all of you back—after 15 minutes.

--- Later in debate ---

[Derek Thomas (St Ives) (Con)]

I stand to carry on the conversation that we have just had with my hon. Friend the Member for North Cornwall (Scott Mann). I thank the hon. Member for Richmond Park (Sarah Olney) for securing this important debate and the Minister for all he does and for his willingness to engage with all those who are keen to be involved in this area.

As we heard, the White Paper proposes a range of reforms, and I will not go over everything that has been said. In fact, I want to focus on the fact that the gist of the White Paper is to increase access to homes and ownership of a home. To own a home is an amazing thing; it gives a sense of security, builds community and provides opportunity, so we should absolutely continue to do all we can to ensure that people can own a home.

However, here lies the problem in Cornwall, in particular, where, as we have heard, prices are high and wages are low. That is what I want to try to address. The truth is that there are people elsewhere in the country who fancy a bit of Cornwall, particularly at the moment, with it being in tier 1—sorry for rubbing that in, Sir Charles; that was insensitive. We have seen an enormous rush of people buying a home in Cornwall because they have seen it as the place to be not just during the recent restrictions but for the whole year. That is nothing new. We could build all the homes that the country could cope with, but the people who need them would not necessarily get them. That is absolutely the case in Cornwall.

I have three suggestions. First, local authorities should be given power to support local home ownership. St Ives, a key part of my constituency—so key that the constituency is named after it—captured headlines around the world when it introduced a primary residence clause in its neighbourhood plan so that no new home could be built in the St Ives Town Council area unless it was for local ownership as a primary residence. That was not necessarily supported at the time, but it has really helped the community to stake the case that building homes for people who live elsewhere is not at all helpful. I ask the Minister to consider putting something in the White Paper that would enable local authorities, where there is a need, to provide access to homes to local people when they are built, somehow restricting them for other people for a period, even when on the market. I do not know how that can be done—I leave him with the problem, not the solution.

As my hon. Friend the Member for North Cornwall said, innovative home ownership models should be a must—[Interruption.]

[Sir Charles Walker (in the Chair)]

Order. The hon. Gentleman can hold his thought there.

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[Andy Carter]

Absolutely. It is about getting the right types of homes in the right places. Land designated for growth will allow new homes, schools, shops and hospitals to be built quickly, and we need that levelling up to happen urgently. Getting the right places is the most important thing.

The hon. Member for Bath (Wera Hobhouse), and I think also the hon. Member for Richmond Park, talked about how local councils are best placed to try to work these things through. I have to say that is not the case in Warrington. The local Labour council ignored all the Liberal Democrat councillors, who argued that it was building in the wrong places. I am afraid that the very simple system that we have at the moment is broken and needs to be fixed.

I welcome the new planning system. There are a lot of good elements in the proposals, but it will come down to the detail. I look forward to continuing the conversation with the Minister, who has been so good in responding to the issues that have been raised with him.

[Sir Charles Walker (in the Chair)]

Last but not least from the Back Benches, Ms Felicity Buchan.

Housing and Planning

Charles Walker Excerpts

Tuesday 3rd March 2020 Westminster Hall

[Sir Charles Walker (in the Chair)]

Colleagues, before I call Mr O’Brien to move the motion, I note that there are a lot of speakers. If you intend to speak, I advise you to be parsimonious with interventions, because it is possible that some speakers will be crowded out.

[Neil O'Brien (Harborough) (Con)]

I beg to move,

That this House has considered housing and planning.

It is a pleasure to serve under your chairmanship, Sir Charles. It is good to see so many colleagues here and I particularly welcome our brilliant new Housing Minister. I will talk about the wider reforms needed in planning and housing, but I want to start with not the where or what of what we build, but some of the problems caused by the way in which the development industry behaves.

The first problem is what has come to be known as fleeceholding. It has become the norm for bits of new estates, such as car parks and public areas, to be handed over to property management companies for their upkeep, with residents paying for it. Instead of being maintained by the council, the property management company steps in and offers to adopt those responsibilities more cheaply than the council would. Often, however, it makes a cheaper offer only because it is working on the assumption that it will be able to dramatically increase bills.

Several neighbourhoods in my constituency are up in arms about opaque and rapidly rising bills from these property management companies. For example, around Windlass Drive in my constituency, 120 households are charged £60 each to mow around a tiny balancing pond that is much smaller than this Chamber. Absurdly, while the council mows a much bigger area all around it, someone comes down all the way from Derby to mow that last tiny area. That fragmentation increases the costs to householders, and that cost is passed on to people in the form of higher bills. Likewise, residents of Coleridge Way were at one point asked to pay £300 a week for someone to drive over from Solihull to inspect a playground. Four households in Farndon Fields were asked to pay £2,400 for the maintenance of a tiny piece of car park, consisting of no more than 30 minutes’ work over five years. That is £2,400 for 30 minutes’ work—nice work if you can get it, Sir Charles.

These maintenance companies are opaque, and people who move out often have to pay them substantial fees to get the documentation they need. The Homeowners Rights Network and the National Leasehold Campaign have compiled many such horror stories. We could easily have a debate on fleeceholding alone. Having found that some companies have in fact broken the law, the Competition and Markets Authority is now taking action. I hope that the Minister will also take action against bad practice that falls below the threshold of criminal behaviour—the industry is full of cowboys—because my constituents are sick of wasting their time battling unfair bills.

The second problem with development is that of inappropriate access to sites. Residents who moved into new homes on Farndon Fields were told that there would be no development next to them for decades. That was not true. When a different developer got planning permission to build a new estate right next to them, it got an access route agreed that goes through their estate. It goes through tiny, narrow streets, past a playground and down a tiny cul-de-sac. There is mud all over the roads and huge lorries revving their engines outside people’s houses in the early hours of the morning. People on that estate face years of misery. We tried to get the developer to use a different, better access route through a field, but when pressed it said that the farmer was asking for too much money so it was not possible. In the end, the council did not want to be taken to tribunal, so it gave the developer that access route.

I have no idea how much the farmer was asking for, but if the Minister could find a way of creating a better way for councils and developers to secure temporary access routes that avoid disruption to huge numbers of households—it could be a temporary compulsory purchase order or some other solution that provides better access that is not obnoxious to residents—that would be very welcome.

Another big problem in my constituency this winter has, of course, been the flooding caused by inadequate drainage from building sites. Developers typically start work by scraping off the topsoil and only put in the drainage late in the construction process. This year, over winter, many have been caught short, as inadequate, temporary drainage has been overwhelmed by the amount of water. For example, on Kingston Way, developers caused huge flooding on the roads and flooding of people’s gardens. They have built a pathetic little muddy sandcastle to try to direct water down the drain. It is a pathetic reflection on an industry that constantly claims to have compassionate constructors. Again, some of that is for local councils to sort out, but if the Minister has an opportunity to change national guidance about the phasing of drainage works on new sites, that would be very welcome.

Another problem with construction practices is about how planning conditions are often violated, with it being difficult for councils to enforce them. Builders work beyond the hours they are permitted to work, lorries park in residential streets and firms fail to honour commitments on wheel washing, so residents end up tramping huge amounts of mud into their new carpets. At the moment, the onus is totally on the council to take developers to court, which is very cumbersome. I encourage the Minister to look at making it much easier for councils to enforce breaches of the rules through some kind of bond system or fixed penalty notice, because developers need to know that if they consistently breach the rules, they will face sure and swift sanctions, and it will cost them money if they break the rules.

The final set of issues with the industry’s behaviour relates to adoption. On Devana Way in my constituency, developers sold houses on new, tree-lined streets. It was beautiful, lovely, and people really liked the trees. However, the developer, after selling the houses to people, had a dispute with the council over adoption, which it solved simply by turning up one morning and ripping out all the trees. Wonderful! I do not see why any developer should be allowed to go ahead with constructing a new estate if it has not already secured agreement on who will maintain it. Developments should not go ahead without clear agreements on adoption and who will maintain what.

Those are some of the things we need to do to change developer behaviour in the industry. I now turn to the bigger picture. We need four or five big changes to the way in which we approach planning and housing policy. First, we need a clearer vision of where we want to build. I believe we must do more of it in our cities, because there are strong environmental and social arguments for that. It means more walking, better public health, less congestion, less pollution and lower energy use. As the Create Streets think-tank has pointed out, having denser cities does not have to mean ugly tower blocks. The densest neighbourhoods in all of Europe are in Barcelona and the densest in Britain are in Kensington, which are nice places to live. Britain currently has the least dense cities in Europe. We also have many cities that have shrunk, with Dundee, Glasgow, Liverpool, Sunderland, Birkenhead, Hull and Newcastle all having smaller populations in 2017 than in 1981.

--- Later in debate ---

[Several hon. Members rose—]

[Sir Charles Walker (in the Chair)]

Order. I will impose a four-minute limit to start with, but it will probably drop to three minutes.

--- Later in debate ---

[Justin Madders (Ellesmere Port and Neston) (Lab)]

It is a pleasure to serve under your chairmanship, Sir Charles. I will talk about Mostyn House in Parkgate, which was originally a boarding school and is now a listed building. Once the school closed, the site was certainly attractive to developers.

Revised plans to build apartments into the fabric of the old school were submitted halfway through its redevelopment. Despite the many efforts of under-resourced local authority enforcement officers, the developer, PJ Livesey, continually drags its feet, with the result that there is a list of outstanding works as long as your arm. Planning permission was only finally achieved some five years after residents first moved in. Developers have similarly patchy records elsewhere in the country, but because the system lacks the capacity to challenge these people, they continue to get away with it.

I have long spoken about the industrial scale mis-selling that arose as part of the leasehold scandal, and we finally saw official recognition of that last week from the Competition and Markets Authority. The situation at Mostyn House is slightly different but has many similarities. Little specific legal information was provided at the initial stage, particularly regarding planning and the leasehold position, and little documentation was produced in respect of service charges. What was provided was misleading and inaccurate on ongoing costs. There were also financial incentives to use panel solicitors and pressure to exchange contracts within a tight timescale.

Many people buying these apartments were experienced professionals whose concerns about those issues were assuaged at the time by the developer’s sales staff, who confidently stated that the purchase was covered by a Premier Guarantee warranty, which gave the buyers a 10-year guarantee similar to the National House Building Council’s. That sounds good, does it not—a Premier Guarantee warranty? It sounds pretty solid, and something to give certainty. Being compared to the NHBC’s guarantee gives it an air of respectability.

However, buyers might find that they have more rights if something goes wrong with their kettle. It is at best a dispute resolution service, not a guarantee, and is seriously compromised by virtue of being funded by the developers against whom it is meant to enforce the guarantee. Premier not only provides the warranty on the build of Mostyn House but also acts as the approved inspector in respect of building regulations. Premier is effectively employed as the building control and building regulation compliance body to inspect, approve and guarantee works undertaken by the developer that it is supposed to be insuring against.

After four years of back and forth, Premier’s surveyor recently viewed the development and agreed with the defects raised by residents. However, Premier is not prepared to progress the claims, even though water is pouring into apartments right now from the defective roofs, gutters and walls. Premier said:

“The remit of our service is to attempt to bring the two parties together, investigate the dispute and make recommendations…That being said, the conciliation service will not be suitable for all disputes.”

That is not a guarantee or warranty; it is a cop-out.

It is clear that some works by the developer were non-compliant, as additional fire separation works and modifications have had to be undertaken since occupation took place. How did Premier sign off those works in the first place? It is plainly evident that there has been a general lack of supervision of the development during its construction and a lack of inspections by the approved inspector. If it finds too many faults, it will have to pay out under its own insurance policy, funded by the developer. It is therefore easy to see how the temptation to be less than thorough could arise.

My constituents have been let down. The ombudsman has proven toothless and the Solicitors Regulation Authority ineffective. Indeed, anyone who cares to look at Trustpilot ratings for the ombudsman, the SRA and Premier will see that there is very little customer satisfaction anywhere in the country. There is a wholesale failure of regulation across the board on many issues, including in this case and others we have heard about. It is time that the Minister and the Government listened and sorted out this shambles once and for all.

[Sir Charles Walker (in the Chair)]

We will have to drop the time limit on speeches to three minutes.

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[Alex Cunningham]

It is not just happening in the planning sector; it is happening across local authorities. My own local authority in Stockton has lost more than half its budget since 2010, so there is a shortage of expertise across the piece in local government to hold developers and other organisations to account.

I back what the Royal Town Planning Institute has argued for, which is championing civic planning, and building strong and responsive local planning authorities. The RTPI has also recommended that central Government do more by providing grants for social housing, by providing stronger direction on suitable land for housing, and by sharing more of any land value uplift with the public and using that uplift in value to fund affordable housing. The ideas are there and the hon. Member for Harborough has helped the Minister immensely.

That said, I also value the hon. Gentleman’s contribution to the ongoing debate in Parliament about how we can move forward on housing in the best way possible, and I look forward to hearing more of what he has to say in the future. However, the bottom line, which is where I have just got to in my speech, is that it is up to the Government to be prepared to take the steps to make change happen.

[Sir Charles Walker (in the Chair)]

Minister, will you leave just two minutes at the end for Mr O’Brien to wrap up, please?

Local Government Funding

Charles Walker Excerpts

Tuesday 15th January 2019 Westminster Hall

[Mr Charles Walker (in the Chair)]

Colleagues, I am extremely sorry for disrespecting your very precious time. You can admonish me afterwards, one after the other—it is unforgivable. I hope that you accept my apology, but I will understand if you cannot.

--- Later in debate ---

[Preet Kaur Gill]

My hon. Friend makes a really important point. We need to invest more money in public health and not siphon it away from councils, for issues such as sexual health, drug and alcohol strategies, mental health—there are a number of issues, and I could go on.

Does the Minister agree that preventive services and approaches are the most efficient and effective way to improve outcomes for our residents and tackle many of the issues that they face? If so, does he agree that local government needs appropriate and sufficient funding to achieve that goal by providing frontline services and working with civil society to develop and sustain multi-organisation and agency approaches? If he agrees on those two points, does he believe that, as things stand, our local authorities have the resources necessary to deliver those services and approaches now and in the future?

I thank all Members who have attended this debate and who are waiting to contribute. The turnout reveals the depth and strength of feeling about this important issue. We all work with our local councils and know the vital services they provide and the work they put into care for our multitude of residents and citizens, particularly support for families, protection of children and care for older and disabled people. We all know that the Government’s current attitude and approach are not sustainable, and we need this Administration to wake up to that fact and address it properly.

I have waited until now to mention Brexit, which we must discuss and examine, if only briefly. The Government have committed billions to many Departments in preparing for Brexit. With the Treasury giving the Department only £35 million for preparations, will the Minister allay the fears of councils around the country by promising that any additional financial commitments and burdens that are placed on councils as a result of Brexit are fully funded by central Government? We need fully funded local government to drive many of the things that make Britain a great country in which to live and work. With councils already facing a funding gap of £7.8 billion by 2025, the Government must take the opportunity of the final settlement and the 2019 spending review to deliver truly sustainable funding to local government. Are they up to the challenge?

[Mr Charles Walker (in the Chair)]

I apologise again to colleagues for my unforgiveable lateness. We will start winding up at 3.40 pm, so everybody should keep their speeches quite short, because there are about 13 speakers.

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[Several hon. Members rose—]

[Mr Charles Walker (in the Chair)]

There are still plenty of Members who want to speak, and the winding-up speeches will start in 35 minutes. I will let the debate run for an extra two minutes—I will not deprive Members of two minutes—but we need to manage time a bit better.

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[Vicky Ford]

I agree about the importance of local services, but the lesson from the restructuring of children’s services in Essex was that they became an outstanding service through a focus on the most vulnerable, who most needed support. When they were focused more broadly, and were not necessarily so targeted on the vulnerable, they did not achieve the same outcomes for the young people who really needed them.

I shall not say that there is not a challenge in Essex County Council. Indeed there is. There is huge pressure from population growth, inflation growth and increasing demand for services. The county council is announcing today that it will increase council tax by just under 4%. It would dearly have liked to be in the pilot scheme for business rate retentions, and is disappointed not to be. There has been some more money from the Government, which is welcome, for winter pressures, social care and highways, but those have been short-term amounts. They are not for the long-term planning that is needed.

As my colleague and neighbour, my right hon. Friend the Member for Witham (Priti Patel), pointed out, the impact on adult social services is severe. About 45% of the county council’s budget is spent on adult social services. We are expecting a nearly two-thirds increase in the number of over-80s in the next decade, and a doubling in the number of over-90s. Seven care homes have been closed and while the county council has tried to minimise the impact of that, and to support those who are affected, the impact on residents is necessarily huge. We need a longer-term solution for the funding of adult social services. The council is making quite sensible, radical changes in its thinking on insurance schemes, lifetime individual savings accounts, possibly more of a local sales tax, and other ways to take the business rate retention scheme to the next level. We need to focus on that.

We are a rapidly growing part of the country. In Chelmsford, it is planned to build about 18,000 homes. We need those new homes. People want to come and live in the county, and we need to help young people on to the housing ladder, but we need the infrastructure to go with it. The county council is spending about a quarter of a billion pounds this year on roads, and primary and secondary school places, but there are some long-term projects, such as our second railway station and the north-east bypass. Those are infrastructure projects for which people have waited decades, and they are vital to go with the housing. I wanted to pick up on the point about homelessness raised by my hon. Friend the Member for Central Suffolk and North Ipswich (Dr Poulter).

[Mr Charles Walker (in the Chair)]

Order. Will the hon. Lady begin to wind up, just to be generous to other Members?

[Vicky Ford]

Yes, I will, Mr Walker; thank you.

There are huge pressures in tackling homelessness. Local charities work hard, but they need more support from Chelmsford City Council. It is the only city that has not had extra support for homelessness. We have projects to secure more social lettings and supported housing, and more help for those at risk of becoming homeless. I hope that the Minister will see that those funding bids are granted.

[Several hon. Members rose—]

[Mr Charles Walker (in the Chair)]

We have seven speakers in 16 minutes, so I shall let colleagues divide that among themselves.

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[Several hon. Members rose—]

[Mr Charles Walker (in the Chair)]

Will everyone do three minutes each? The Opposition Front Bench has given me back six. Clive Lewis, three minutes—please.

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[Several hon. Members rose—]

[Mr Charles Walker (in the Chair)]

Fantastic. There are five speakers left, which means about two minutes and 25 seconds each. Let’s go.

[Rachael Maskell (York Central) (Lab/Co-op)]

Thank you for chairing this debate, Mr Walker. Although £44 million has already been wiped from York’s budget, another £4.1 million will go this year—hardly austerity coming to an end. Local authorities are the game changer for introducing early intervention and prevention into a system. Thanks to a perverse decision by my local authority, the budget to tackle substance misuse was slashed by 25%—a £2 million budget lost £500,000—even though we have the highest level of deaths due to substance misuse in the country. We see the consequences of such cuts across York, and I can give many such examples.

York also has the worst funded education in the country. Schools are on tight budgets, and that is matched with the highest level of attainment inequality in the country. Such a diminution in funding has consequences that are harming my community, and I implore the Minister to put his money where his mouth is and end austerity by ensuring that local authorities have the resources they need to transform our communities.

Labour councillors across York are ready to transform our city, with incredible ideas about early intervention and prevention. Without those resources, however, they will be constrained, and if we are to see a game changer in the way our society works, we must make the right choices. In particular, I reflect on housing investment in our city. Hardly any social housing has been built in York since 2015, and that has had serious consequences for many other factors. We need only turn to the work of Michael Marmot to know the impact of such policies on public health. We need not only resources but the right leadership to make real changes in our community. This debate is just a start, and it is important to follow it up. I would welcome a meeting with the Minister to talk about the difficult issues and challenges our city faces, because the funding formula is not working across the board.

Finally, the business rates system has failed our community. It is driving people away from the high street, which has a perverse effect on the income received by local authorities. We urgently need the review that was promised two years ago, and I implore the Minister to speak to Treasury colleagues so that that comes to fruition.

[Mr Charles Walker (in the Chair)]

Outstanding timekeeping.

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[Several hon. Members rose—]

[Mr Charles Walker (in the Chair)]

I call Jamie Stone, who has three minutes, before Emma Hardy, who will also have three minutes.

[Jamie Stone (Caithness, Sutherland and Easter Ross) (LD)]

Thank you, Mr Walker. I congratulate the hon. Member for Birmingham, Edgbaston (Preet Kaur Gill) on what was a very eloquent speech indeed. Much of what I am about to say has been summed up in a characteristically pithy intervention from the hon. Member for Coatbridge, Chryston and Bellshill (Hugh Gaffney). As a Scottish Member, the question for me is: “Where are the Scottish Government in this debate?” It perhaps speaks volumes that we do not have any Scottish National party Members with us today—enough said.

It would not be normal if I did not talk about the remote far north of Scotland, so I will do so again. We face enormous problems in the Highland Council, of which I was a member until I was elected to Parliament: a sparse population, huge distances, inclement weather and the sheer cost of services and goods. Those elements militate against running the council cheaply. Over the last four years that I was a councillor, I found the cycle of going through budget cuts year after year a sickening process, because we felt that we were cutting right into the flesh, blood and bone of what we were trying to do for the good of constituents.

Of course, this is a devolved matter—I take heed of that—but I want to make two points arising from that. First, the settlement that the Scottish Government give councils such as the Highland Council is questionable, but they are not here to answer that point. Does the settlement from the Treasury to the Scottish Government accurately reflect the needs of Scottish local government? Would the Minister consider an audit of the money that goes to the Scottish Government and how much is actually delivered to councils to become council services?

As I want to leave some time, my second and final point is simply this: I recognise that local government is the foundation stone and building block of proper democracy. If the public’s faith in local government is damaged, we damage something that is so important to the way the country works: our democracy. Even on tempestuous days such as today, that democracy is hugely important and, I believe, an example to the world.

[Mr Charles Walker (in the Chair)]

Thank you. Last but not least, I call Emma Hardy.

[Emma Hardy (Kingston upon Hull West and Hessle) (Lab)]

Thank you very much, Mr Walker. I stand here to represent an incredibly proud city. I hope that the Minister bears that in mind, because I am asking not for the Government’s pity about the poverty faced by people in my city, but for fairness and justice, and for the Government to acknowledge that not everybody lives in the leafy shires. I am sorry, but the suggestion that one solution could be greater investment in ISAs is so breathtakingly out of touch that it shocked me.

In my city of Hull we have the lowest average weekly wage in the country, at only £376 a week. The cuts to local government are devastating my city and creating a huge problem for the children living there. The Government talk a lot about the importance of social mobility, but those are meaningless words if people are not given equality of opportunity. My point about fairness is that there is deeply entrenched regional inequality, which is shameful to the country.

In an earlier intervention I mentioned that in one of my wards—Central ward—over 47% of people live in poverty. In my constituency there is an average life expectancy difference of nearly 10 years—the number of years that someone is expected to live a healthy life is lower in Hull than in other areas of the country. That should shame the Government into action.

Another problem is that we have £1,300 less per pupil spending on schools than in the rest of the country. We cannot rely on increasing local council tax to plug that gap. Hull City Council is 81% reliant on Government funding grants, and when that money is taken away it has a greater impact in Hull than it does in other areas of the country. Some 86% of people in Hull live in a band B or band A property, so a 1% rise in council tax would bring in only £2.90 per person in Hull, compared with £7.08 in the City of London, or £6.33 in the wonderful South Hampshire. For a city such as Hull, with highly significant deprivation, a very low tax base and limited ability to generate its own income, it is essential that the Government’s future financial settlement calculations recognise and make allowances for that. I ask the Minister not for his pity, but to give Hull its fair share of money and the money it needs. I ask him to reverse the cuts.

We heard today that Marks and Spencer is leaving the city of Hull. Our high streets are being decimated, so will the Government take action quickly and do something about business rates as well? To pull the funding from Hull—and from under the feet of the people of Hull—without making proper and necessary investment was always going to be a disaster. The Minister has the opportunity to own the Government’s past mistakes, recognise the failings of his predecessors, and do something about them.

[Mr Charles Walker (in the Chair)]

Order. I call the shadow Minister, whom I thank for his generosity with his time.

[Jim McMahon (Oldham West and Royton) (Lab/Co-op)]

Thank you, Mr Walker; it is a pleasure to serve under your chairmanship. I thank my hon. Friend the Member for Birmingham, Edgbaston (Preet Kaur Gill) for securing this absolutely critical debate at such a critical time, as local authorities enter their budget-setting cycle. The council meetings will take place over the coming months, and councils will be forced again, for another year, to make absolutely devastating cuts to their local communities.

That is what this is about. When we talk about council cuts, it does not gain a lot of interest, but when we talk about people and communities, the impact on the future life chances of our young people and the way older people are cared for, it absolutely matters and is crucial to our communities. In truth, the fabric of our communities—the very foundation on which the Government are trying to rest future English devolution—is fragile and near breaking point.

There has been passion in the room today: 16 speakers on the Opposition Benches and four speakers on the Government Benches, including the Minister, who will speak shortly. That shows the real interest in the issue. None of us comes to Parliament to make our communities worse off. We have heard the desperate pleas from hon. Members who really care about the impact of the cuts on their communities, not for political advantage or to try to embarrass the Government, but because we live in our communities and see the impact on our neighbourhoods: the lack of funding in our schools, the effect on all those who cannot get the social care that they need, and the young people who have been denied the best possible start in life because children’s centres are taking cuts or being closed entirely.

One of the Minister’s colleagues has said that the way to revive our high streets is to open libraries on them, when hundreds of libraries are closing every year because the money is just not in the system. We need radical change and radical reform, because quite frankly, we have seen tinkering around the edges far too often, and that does not get to the crux of the issue. The crux of the issue is this: council tax and business rates have a role to pay—they are important property taxes—but both have limitations and will be pushed to breaking point if the Government do not do something.

Council tax is a hugely regressive tax. It takes 7% of low-income families’ incomes, compared with just over 1% of higher-income families’ incomes. The more pressure that is applied to council tax, the greater the pressure that is applied to low-income families. Time and again, the Government duck their responsibilities to provide central Government funding to support local communities, and the burden falls on council tax payers. Council tax will again be increased this year to the maximum level of 6%. On top of that, more money is required to go to the police, and in the case of combined authorities or mayors, even more money is applied to that precept as well, because the Government are walking away, saying, “Well, it’s not our problem,” when it is a problem absolutely of the Government’s making. Those are political choices.

It was absolutely right that austerity meant that every Department had to take its fair share of cuts, but the evidence says that local government has lost 800,000 members of its workforce—it is at its lowest level since comparable records began—while the central Government workforce figure is at its highest level since comparable records began. That is not a fair distribution of cuts or austerity. Local government continues to take the pain and the burden.

Many important points have been made today and I would love to go through the list of hon. Members who spoke. One thing that inspires me about Parliament is just how rooted in community our parliamentarians are—particularly Labour parliamentarians. I congratulate my hon. Friends on giving their communities a voice. The Minister, who is respected in local government—I am not trying to make a ding-dong match out of this, some real questions need real answers—has an opportunity to set out his stall, to say what he stands for and what he believes in, and to stand up for the pressures that local governments face. Any Minister at the Ministry of Housing, Communities and Local Government who presided over a local government family that can barely afford to make ends meet would not be fulfilling their responsibilities.

[Mr Charles Walker (in the Chair)]

Thank you. I will call Ms Gill to make her final remarks at fifteen seconds past four. I call the Minister.