The Union (Constitution Committee Report)

Baroness Scott of Bybrook Excerpts

Friday 20th January 2023 Lords Chamber

[The Parliamentary Under-Secretary of State, Department for Levelling Up, Housing & Communities (Baroness Scott of Bybrook) (Con)]

My Lords, I thank the noble Baroness, Lady Taylor of Bolton, for securing this important debate on the committee’s report. I also thank her for her speech today; I look forward to reading it again in Hansard. I will consider some further responses to what she has said and will be in touch with her. I also thank the members of the Constitution Committee for their thoughtful inquiry into the union and subsequent report. I apologise that it has been a year before we have had the chance to debate it. I also thank all noble Lords for their contributions today. I welcome the noble Lord, Lord Verdirame—I probably got that wrong—to this House: he is very welcome, and after his maiden speech, I very much look forward to his further contributions in this House.

We share the spirit of optimism written into much of the committee’s report. As reflected by my noble friend Lord Howell of Guildford, while it may be positive, we do need to consider a modern union and continue to build a better union. That is important. I also welcome the noble Lord, Lord Hennessy, back to the House: it is very nice to hear him, and it is wonderful listen to his speeches—they are excellent, and I cannot say anything more than that. What stuck in my mind was that the noble Lord said that the union still has vitality. Yes, it does. It has vitality, but we need to continue to work on that vitality for the future, as my noble friend Lord Howell said.

However, we do share the spirit of optimism in the committee’s report, which I thank it for. The United Kingdom is the most successful political and economic union the world has ever seen, as mentioned by the noble Lord, Lord Bilimoria, and is the foundation on which all our businesses and all our citizens are able to thrive. This is why the United Kingdom is committed to protecting and promoting the combined strength and values we share, building on hundreds of years of partnership and shared history. It is clear that when we work together as one United Kingdom, we are safer, stronger and more prosperous; we are better able to draw on the institutions that unite us, such as the National Health Service, the Armed Forces and our world-class education system. Crucially, as the committee noted, we are able to tackle the big problems, from supporting families with the cost of living, to leading the international responses to the illegal Russian war in Ukraine, and to being a world leader in offering the vaccine to our citizens. I do not agree with the noble Baroness, Lady Taylor, that Covid was not a good example of close working. I think that this Government worked strategically with the devolved Administrations to save jobs and support communities and to bring out the vaccine programme that helped our country get through the pandemic. That was at administerial but also at official level. So I actually think it was a good working of the union at the time.

The UK Government are committing to delivering the best possible outcomes for people in all parts of the UK, ensuring that all four corners of the UK feel the benefits of the union. This is what the people of the United Kingdom want and expect. From the £55 billion we are spending this year to help families and businesses across the UK with their energy bills to the ambitious vision that is set out in the levelling-up White Paper to improve living standards and create opportunities in every part of the UK and the spending review in 2021 setting the largest annual block grant in real terms of any spending review settlement since the devolution Acts in 1998, this Government’s commitment to ensuring all parts of the United Kingdom feel the benefits of the union is clear.

As the committee recognised, effective working across all levels of government in the United Kingdom is critical to our ability to deliver better outcomes for our people and our communities. Citizens rightly want their Governments working together to deliver for them. This is why the Government ensure that every department makes it a priority in their work; for example, new structures and processes for engagement—this was brought up by the noble Viscount, Lord Stansgate—agreed through the intergovernmental relations review provide solid foundations for continued constructive engagement. From January to September 2022, there were more than 200 ministerial meetings between the United Kingdom Government and the devolved Governments on a huge range of issues.

Somebody mentioned the Prime Minister. The Prime Minister made it his priority to speak to the First Ministers of Scotland and Wales on his first day in office. He also chaired the first meeting of the Prime Minister and heads of devolved Governments council on 10 November 2022, just three weeks after coming into office, focusing on critical issues such as the cost of living, the impact of rising inflation and our shared challenges in supporting the NHS.

We have worked constructively with the devolved Governments to deliver practical benefits for people across the United Kingdom. This includes welcoming Ukrainians through the Homes for Ukraine scheme and growing local economies through freeports and city and growth deals, investment ensuring that everyone, no matter where they live in this United Kingdom, has access to opportunities, skills and jobs for the future. We will continue to work together to deliver for all people of the United Kingdom.

As we set out in our response to the committee’s report, we share its ambition for informative, detailed reports on intergovernmental relations. We continue to evolve the regular transparency reports to allow more pertinent scrutiny and public engagement. We welcome opportunities, such as today, to discuss these relationships more. Co-operation across the United Kingdom is valuable in its many forms, and we will continue to support the interparliamentary forum and initiatives which facilitate collaborative working across devolved legislatures.

I welcome noble Lords’ ongoing support in strengthening the things that connect us across the United Kingdom. Our commitment to effective inter-governmental working exemplifies this Government’s commitment to devolution, a sentiment the committee shared in its report. Through devolution, policies can be tailored to support the needs and priorities of the different parts of the United Kingdom within the framework of the United Kingdom. It allows decisions to be taken closer to communities that they affect, all the while still benefiting from the broad shoulders that the union provides by drawing on a shared resources.

The committee noted the importance of the Sewel convention, and we recognise that importance. We remain fully committed to the convention and will continue to seek legislative consent and work with the devolved Administrations on all Bills that engage the legislative consent process. Our commitment is evident through the 28 legislative consent Motions secured across 17 Acts of Parliament during the last legislative Session, including the Health and Care Act 2022 and the Advanced Research and Invention Agency Act 2022.

A number of noble Lords talked about the governance of England, including the noble Baroness, Lady Taylor, and the noble Lords, Lord Wallace and Lord Howell. We are bringing forward the levelling-up Bill—we have had its Second Reading, and we will have Committee after the Recess. Our commitment to devolution and our plans for further devolution are very clear. We have announced the biggest ever transfer of powers away from Westminster to local areas in England in that Bill and in the White Paper that preceded it, with devolution at the heart of our plans to increase economic growth and level up the whole country. We have made significant progress in recent months, including through an expanded deal for the north-east and the first county deals, which will establish directly elected leaders in Norfolk and Suffolk. These deals were not imposed by the Government; they were designed and set up with the local authorities involved. Taken together, deals signed last year will mean that 5 million more people can directly elect a mayor or leader to represent them about local issues in the future.

We are focused on ensuring that devolution works effectively across the United Kingdom, including making sure that an understanding of devolution and the union is core to all United Kingdom government departments. That is why we have progressed the recommendations made by my noble friend Lord Dunlop—I thank him for his positive contribution today—in his review of UK government capability to improve how the UK Government can deliver for all their citizens. For example, we have established and regularly convene a Cabinet committee focused on the union; Sue Gray was appointed as Second Permanent Secretary with responsibility for the union; and each UK government department now has a nominated non-executive director with responsibility for the union. In addition, we have an ambitious capability programme to enhance the devolution knowledge and intergovernmental working skills of civil servants, enabling them to deliver more effectively for the whole of the United Kingdom.

Before I finish, I want to respond to the right reverend Prelate the Bishop of Leeds. His contribution was extremely interesting, and I would like to think on it further. Young people are the future—and they are the future of the union. Their views must be heard, and we must work with them. I thank him for his contribution, and I will give it some thought.

[Lord Howell of Guildford (Con)]

In my ignorance, I am not totally sure which department my noble friend is closest to; she seems to answer on every conceivable subject these days. Will she tell her friends in the Foreign, Commonwealth and Development Office to give particular attention to the knotty problem of giving Scotland a greater voice in our external affairs, treaty arrangements and international repositioning with all the other countries of the world? That is where a lot of our fate will be decided. One of the most bitter feelings the committee heard from our witnesses was that Scotland was an ancient nation which did have an international footprint but appeared to have no real say in deciding our international position. Could she give a push in that direction, please?

[Baroness Scott of Bybrook (Con)]

I thank my noble friend for that, and I certainly will. I do not do anything with the Foreign Office, but I will certainly take that back. I am in the Department for Levelling Up, Housing and Communities, but we also do some of the work on the union.

I thank noble Lords once again for their contributions today, and I particularly thank the noble Baroness, Lady Taylor, for moving the debate and for her speech. I look forward to continuing this important discussion and working collaboratively on all the issues raised by noble Lords today.

International Holocaust Memorial Day

Baroness Scott of Bybrook Excerpts

Thursday 19th January 2023 Lords Chamber

[The Parliamentary Under-Secretary of State, Department for Levelling Up, Housing & Communities (Baroness Scott of Bybrook) (Con)]

My Lords, I start by conveying my thanks to my noble friend Lord Pickles, the United Kingdom Special Envoy for Post-Holocaust Issues, for securing this debate. I echo so many noble Lords in expressing thanks to him for everything he does in this area. I also send sincere condolences from myself and, I think, the whole House to the family and friends of Zigi. May he rest in peace.

I am grateful to noble Lords from all sides of this House for their valuable and moving contributions to this important debate. I thank especially the noble Lords, Lord Kestenbaum, Lord Glasman and Lord Young of Norwood Green, my noble friends Lord Polak and Lady Altmann, and the noble Baroness, Lady Thornton. They all looked into their heart and soul and told their stories. Those are what I will take away most strongly from today’s debate, so I thank them for doing that.

The United Kingdom can be proud of its record when it comes to Holocaust remembrance and education. We were one of the first signatories to the Stockholm declaration of 2000, which called on countries to recognise 27 January, the day Auschwitz-Birkenau was liberated, as International Holocaust Remembrance Day. We hosted our first Holocaust Memorial Day in 2001.

The Stockholm declaration is also the founding document of the International Holocaust Remembrance Alliance—IHRA. This year marks the 10th anniversary of the IHRA’s working definition of Holocaust denial and distortion, which will be a key focus for the IHRA member countries in 2023. The United Kingdom has the honour of chairing the IHRA in 2024.

Many noble Lords have mentioned this year’s theme for Holocaust Memorial Day: ordinary people. The Holocaust may have reached its barbaric climax in Treblinka, Auschwitz and Belzec, but it started in the hearts of ordinary men and women. We have seen it again: a madness that takes hold of individuals and then sweeps through peoples and whole nations. As we have heard, the killings in Cambodia, Rwanda, Bosnia and Darfur shock our conscience, but they are the awful extreme of a spectrum of ignorance and intolerance that we see every day; the bigotry that says another person is less than my equal—less than human. These are the seeds of hatred that we cannot allow to take root in our hearts.

We are all familiar with the stories of the ordinary people who were involved in extraordinary acts of bravery to save Jewish people. In the United Kingdom we have recognised 44 British Heroes of the Holocaust—15 of whom were women—who went beyond the call of duty to save members of the Jewish community and others. Jane Haining was one of them. Born on a farm in Dunscore in Dumfriesshire, Jane was deeply committed to her faith and sacrificed her life for her ideals. It was her calling that took her away from her native Scotland, first to Budapest and finally to Auschwitz, where she perished.

Jane was appointed matron of the girls’ home of the Scottish Mission in Budapest, Hungary, in 1932. Refusing to abandon her children in the face of the rising Nazi threat, Jane was eventually arrested by the Gestapo in April 1944. Charged with working among Jews, as well as other supposed crimes, Jane Haining was deported to Auschwitz, where she became prisoner number 79467. Her last message to friends was a postcard asking for food. She ended her letter with the words:

“There is not much to report here on the way to heaven.”


Haining succumbed to starvation and the terrible conditions in the camp and died, probably on 17 July 1944. She was 47 years old. She was declared Righteous Among the Nations in Israel in 1997 and received the British Hero of the Holocaust medal in 2010.

But ordinary people also planned and executed the Holocaust. We do ourselves a disservice when we think they were all monsters: they were ordinary men and women like us—mothers, fathers, sisters and brothers, with choices. Soldiers who participated in mass shootings of Jewish people in the east were not forced; they were not punished if they declined to participate. There was another group of ordinary people: bystanders—people who raised no objection to the horrors that befell their neighbours, who had no qualms when they bought the neighbours’ furniture and crockery or took over their homes. We all like to think that we would have stood up as one of the extraordinary, but it is important to realise that we all have the capacity to look the other way—or worse.

This will be one of the key themes explored in the planned UK Holocaust memorial and learning centre next to the Houses of Parliament. I have listened to a number of noble Lords on this issue, and there will be a time and a place to discuss it further in the future. We plan to provide visitors with what we believe to be a genuinely unique perspective by addressing the Holocaust through a British lens. While relating the whole story of the Holocaust in continental Europe, the exhibition will look particularly at what was known in Britain—far more than most people think—and what was done, or was not done, with that knowledge. It will look at the responses not only of the Government but of society, highlighting the power of communities’ and individuals’ choices to make a difference for good, or ill.

We remain committed to the creation of a new national memorial to honour the 6 million Jewish men, women and children murdered in the Holocaust, and all other victims of Nazi persecution. Sadly, there will come a time in the not-too-distant future when the Holocaust will pass from living reality and shared experience to memory and to history. That is why we have a duty to remember and why the new Holocaust memorial and learning centre is so important in keeping alive the memory of those murdered during the Holocaust and subsequent genocides.

We do Holocaust remembrance a disservice if we remember the dead and forget the present persecution of Jewish people across the world. The Community Security Trust—the CST—which we have heard about, particularly from the noble Baroness, Lady Merron, and which monitors anti-Semitism in the UK, recorded, as she said, 786 anti-Semitic incidents from January to June. May 2021 saw a record high of such incidents, partly due, we think, to the Middle Eastern war. Without that conflict or influences of other factors such as the pandemic, the latest figures show that the base level of anti-Jewish hatred remains far too high and may even be worsening among young people. The noble Lord, Lord Mann, who is our adviser on anti-Semitism, highlighted this in his most recent report and recommended that secondary schoolchildren should be taught about the wrongs and consequences of contemporary anti-Semitism.

The latest figures on anti-Semitic incidents underscore the need for government to continue working with the Jewish community to ensure that synagogues, Jewish schools and communal buildings are afforded maximum protection, and we have already supplied over £14 million of government funding to make sure that that work happens. I am proud of my department and the many others in government that are supporting the Holocaust Educational Trust to work with universities across the country in challenging the scourge of anti-Semitism. However, as we have heard from the noble Baroness, Lady Anderson, and others, we need to do more.

Like many previous speakers, I pay tribute to the Holocaust Memorial Day Trust and its CEO, Olivia Marks-Woldman OBE, and her team, who delivered the annual Holocaust Memorial Day ceremony and thousands of other local activities across the country. Similarly, like many other noble Lords I thank the CEO of the Holocaust Educational Trust, Karen Pollock CBE, who as we have heard works tirelessly to ensure that the next generation learn of the unspeakable horrors of the Holocaust and can visit Auschwitz-Birkenau as part of the very successful Lessons from Auschwitz programme. I want also to mention the UK Holocaust Map, an ongoing joint project with the Association of Jewish Refugees. The interactive map allows users to explore places relating to the victims, survivors and refugees of Nazism, as well as the rescuers, the liberators and the aid givers.

Despite our failure to learn the lessons of the past, we must not give up hope that one day we will see a world free from genocide, a world that fully grasps what happens when hatred, intolerance, prejudice and anti-Semitism is left unchecked and unchallenged. When we look at current conflicts across the globe, especially what is happening in Ukraine, it can be tempting to throw up our hands and resign ourselves to humanity’s endless capacity for cruelty. It is sometimes tempting to believe that there is nothing we can do and that all of us have those doubts; but it is also in those moments that we must remember all those murdered during the Holocaust and in subsequent genocides. We need to remember the survivors, the witnesses who have never given up, who continue to share their testimonies today. We owe it to all of them to remember.

Windrush: 75th Anniversary

Baroness Scott of Bybrook Excerpts

Thursday 19th January 2023 Lords Chamber

[The Parliamentary Under-Secretary of State, Department for Levelling Up, Housing & Communities (Baroness Scott of Bybrook) (Con)]

My Lords, I sincerely thank the noble Baroness, Lady Benjamin, both for bringing this debate to the House and for all the work she has done, and I know will continue to do, for the Windrush generation. I also thank all noble Lords who have taken part in the debate with some very informed but also passionate speeches. I know that they have been short but the passion has come through.

Before I get into my speech, I want to bring up a couple of things that I think will answer many of the questions asked. My noble friend Lord Kamall and the noble Lords, Lord Davies and Lord Khan, rightly asked about compensation. The Home Office has continued, and will continue, to listen and respond to the affected communities about how the scheme operates and its accessibility. We have published a redesigned claim form; I hope that it is now easier for people to complete it but I am sure that Home Office Ministers will be pleased, if there is anything that they can do better, to do it. We are now fully focused on reducing the time between the claim submissions and the decisions. We have put more people into those teams in order to do that. We expect to reduce the work in progress in the coming months. I hope noble Lords will hold us to account on that because it is extremely important.

Noble Lords also brought up progress on Wendy Williams’s recommendations. I assure them that the Home Office is making real progress in delivering against those recommendations. It is a work in progress; the Home Office is continuing to do so. I am more than happy to ask the Minister from the Home Office to keep us updated on this issue.

The noble Baroness, Lady Blower, asked about education. It is extremely important, particularly in some of our schools that do not see as many multiracial children and do not understand our history quite as well. The annual Windrush Day grant scheme has provided £2.75 million to communities to date. A number of those projects will be about doing that but I will take back to the Department for Education ideas on how we can get it further into the curriculum. I have spent many years working with communities in Wiltshire, which is not a very multicultural community, on Black History Month, which is a wonderful celebration of our diversity in this country.

Seventy-five years ago, the MV “Empire Windrush” arrived on the shores of Britain to help rebuild our nation after the Second World War. Thousands of men, women and children moved from the Caribbean to the United Kingdom in the decades that followed, and we are proud to say that they have contributed to every aspect of British life ever since.

The year 2023 is particularly significant because there are two 75th anniversaries. It is also the 75th anniversary of the NHS, which was created just two weeks after the arrival of the “Empire Windrush”. In fact, the two are inseparable. Many of the Windrush generation worked in the NHS to give us the health service of which we are also incredibly proud. Today, ethnic community employees make up almost a quarter of the NHS workforce, along with 42% of medical staff. The staff currently represent 200 nationalities. The NHS has served us all throughout our lives, and it would not have existed without the support of the Windrush generation. They played a vital role not just in our nation’s post-war efforts but in shaping who we are as a nation today. But they did not do so with ease—we accept that. Many of us are all too aware of the hardships they faced: from racial abuse and discrimination in the workplace, to being made to feel unwelcome in a country they came here to help. These wrongs shall never be forgotten.

While it is important that we recognise such challenges, both past and present, it is also important that we celebrate and commemorate the Windrush generation for their contribution to this country and for the aspects of their character that we all admire. It is for these reasons that we must honour the 75th anniversary of the Windrush generation’s arrival on our shores. It was in this light that the spirit of this generation was captured so beautifully by Basil Watson in creating the national Windrush monument, which pays tribute to the Windrush generation and their descendants, whose contribution to our society until that point had been overlooked for too long. At 12 feet tall, the national Windrush monument will stand testament to the pride and dignity that is the heart of the Windrush generation and will honour them for future generations who pass through Waterloo station—our country’s busiest railway station, which sees 41 million passengers each year. The monument was backed by £1 million of government funding as part of a manifesto commitment. Its unavailing on Windrush Day last year was a truly momentous day for our country, when our nation stood proud. I want to thank again the noble Baroness, Lady Benjamin, chair of the Windrush Commemoration Committee, for advising on its creation, as well as the many individuals, organisations and officials who worked so hard to create that fitting tribute—I think it is wonderful. People were moved to tears at the monument’s unveiling, at which the two surviving Windrush pioneers, Alford Gardner and John Richards, were joined by Their Royal Highnesses The Prince and Princess of Wales, who were then The Duke and Duchess of Cambridge.

At one point Alford Gardner and his family were the only mixed-race family in their neighbourhood, but today the Britain that his descendants grow up in is very different. His 16 grandchildren, 21 great-grandchildren and one great-great-grandchild will grow up in a Britain that is both diverse and inclusive. Another instance is the Commonwealth Games, which were held in Birmingham last year. The games were an incredible success and showcased a city where more than 50% of the population is from ethnically diverse backgrounds.

Much has been achieved since Alford Gardner and the Windrush generation arrived on our shores, and we still have much more to achieve, but we can be proud of how far our society has come in this momentous year. I am proud to say that, as part of the 75th anniversary celebrations, as of this week the Department for Levelling Up, Housing and Communities has committed £3.75 million towards the day’s celebrations and the National Windrush Monument; £2.75 million has been granted to charities, community groups and local authorities through the Windrush Day grant scheme since 2019; and 160 projects have been funded by the scheme across every region in England, with grants awarded directly to the community, allowing it to commemorate, celebrate and educate about the Windrush generation and the contributions it has made to British life.

One project, Inspiring Audio Ltd, worked with children in Nottingham, Birmingham, Manchester, Bristol and London to produce 10 free podcasts to explore the history and social context of the Windrush generation. Another project, Tilbury on the Thames, saw people sail on Windrush Day from Waterloo Pier to the dock where the “Empire Windrush” originally docked in Tilbury, mirroring the historic journey that took place all those years ago.

Without the funding from the grant scheme, many of the projects and celebrations would not have taken place and fewer people would have known about the contributions of this generation to our society. But this is not Windrush history; it is British history. It is vital that we empower communities up and down our country to commemorate and celebrate the important milestone in our history. For this reason I am especially pleased that, in light of the 75th anniversary, we have been able to announce this year’s grant scheme. It is now open to applications. In such an important year we have decided to increase the funding pot from £500,000 to £750,000 properly to mark Windrush 75. Communities in Northern Ireland will now be able to take part in the scheme for the first time.

I am happy to confirm that funding will be allocated to further developing the educational component of the Windrush Monument website in time for Windrush Day 2023. I can also confirm that my officials in the department have been asked further to explore what else we can do to make even more impact for these important celebrations.

As His Royal Highness the Prince of Wales said in his speech at the unveiling of the National Windrush Monument last year:

“Every part of British life is better”


for the half a million men, women and children from the Windrush generation. They have made

“our culture richer, our services stronger, and our fellow countrymen safer.”

For that they have our thanks.

Levelling-up and Regeneration Bill

Baroness Scott of Bybrook Excerpts

2nd reading
Tuesday 17th January 2023 Lords Chamber

Moved by

[Baroness Scott of Bybrook]

That the Bill be now read a second time.

[The Parliamentary Under-Secretary of State, Department for Levelling Up, Housing & Communities (Baroness Scott of Bybrook) (Con)]

My Lords, it is a pleasure to open the Second Reading debate of the Levelling-up and Regeneration Bill. For decades, successive Governments have failed to address the inequality of opportunity in our country. Economic growth has for too long been concentrated in a select few areas. This Bill creates the foundations for our long-term efforts to address entrenched geographic disparities across the UK. It does not purport to deal with every aspect covered in the levelling up White Paper, although noble Lords could be forgiven for thinking otherwise, given the scale of the Bill.

We all know the scale of the challenge that we face in levelling up our country. We see the consequences of geographic disparity across the country: in the unaffordability of housing for so many; in the hollowing out of our communities, as people leave for lack of local opportunities; and in the stark differences in educational attainment, health and quality of life depending on where you live.

The case for change is both economic and moral. Leaving parts of our country behind means opportunities are missed through underinvestment and overfocus on specific sectors. That costs us in terms of economic growth, of benefiting from our world-leading research and, most importantly, of each person who cannot achieve their potential through no fault of their own. We have a duty to support those already affected by geographic disparities, but we must also solve the underlying problems. To treat that support as the long- term solution is to fall into the same well-meaning trap which led to the current situation.

The Bill is intentionally designed to put in place the structures and tools to enable that long-term solution. The framework it creates will work with our efforts to support communities but it is deliberately focused on the wider objectives set out in the Government’s levelling up White Paper. It is for this reason that Part 1 creates a statutory framework for the setting, reporting upon and review of levelling-up missions. As noble Lords will be aware, the missions set out in the levelling up White Paper set out the Government’s 12 priorities for levelling up between now and 2030. I do not intend to relist the missions but as your Lordships will know, they range from health and well-being through transport and digital connectivity to devolution across England.

This ambitious programme for our country provides a mechanism for this House and the other place to hold the Government’s efforts to account and to scrutinise any changes in the missions or how they are measured. It is right, I hope noble Lords will agree, that missions should be adaptable to the needs of the country, but that any adaption should take place openly.

Part 2 builds directly upon the local leadership levelling-up mission and provides the means to simplify, expand and deepen devolution across England, to which the White Paper committed. It creates a new institutional model more suitable for devolution to whole county areas outside city regions which have more than one council—the combined county authority. Alongside this, we are improving the existing combined authority and local authority models for devolution. This work is creating a consistent architecture across local government for devolution in England, where it is led by local areas.

Part 3 reforms the planning system to improve planning authorities’ ability to shape their areas in accordance with the needs and wishes of their communities. Principally, this is achieved by giving greater weight to the development plan when decisions on applications are made, so that there must be strong reasons to override the plan, and by making a number of changes to aid the adoption of local plans. These include the introduction, through secondary legislation, of new gateway checks to help spot and correct problems and reduce the risk that local plans will fail at examination. We are also removing the pressure many planning authorities feel to duplicate national policy in their local plans to ensure it has sufficient weight in their decision-making. This will enable plans to be produced more quickly by streamlining the contents of plans to policies which are bespoke to the area, rather than those which apply across the country.

As at present, we will also produce some high-level policies on matters to be considered when preparing local plans. These will be separate from the new national development management policies, which will sit alongside the polices in the development plan. Part 3 makes a number of other changes to the planning system. This is a substantial part of the Bill and there are a few significant changes among the numerous technical improvements included in this part.

Chapter 1 enables the digitisation of the planning system, in support of which we are already working with planning authorities across the country. Our aim is to enable greater involvement at all stages in the planning system, but particularly to increase engagement in the production of the local plan, where local voices can be so important. We are also strengthening the regard of heritage within planning law and creating a new system of “street votes”, allowing additional development on existing streets, where it meets prescribed requirements and is supported at a referendum. The issue of build-out of planning permissions also remains of concern to communities, and I know that many noble Lords have raised this issue before. Part 3 therefore introduces measures which will improve transparency around the speed of build-out and delivery expectations, backed up by new and strengthened powers for local planning authorities to act against unreasonably slow development.

Part 4 provides for the replacement, in most cases, of negotiable development contributions with a locally set, non-negotiable infrastructure levy. Planning authorities can at present often feel themselves at a disadvantage in these negotiations, particularly with the larger developers. Similarly, your Lordships will know that uncertainty over the obligations which will be requested can be a barrier for some of our smaller developers.

The levy addresses these concerns. The legislation will allow the levy to be set locally, meaning that local authorities can set different rates according to the nature of development. This will allow authorities to set rates reflecting their priorities, including securing at least as much affordable housing as that secured under the existing system, if not more. The new levy will be implemented through a test and learn approach, by introducing it in some local authorities first before rolling it out nationally to support local authorities through the transition period. We will publish a technical consultation on the new levy very shortly.

Part 5 grants time-limited powers for community land auction pilots. These will test an innovative mechanism for securing value and infrastructure for the local area from the allocation of land for development in a local plan. The Secretary of State is required to report to Parliament on the results of those pilots.

I turn to Part 6. Following our departure from the European Union, we want to learn from the experience of the past 40 years to tailor environmental assessment to better reflect the current pressures on the environment and meet the nation’s environmental needs. The Bill will secure powers to address issues with the current system that have seen environmental assessment become less proportionate, less effective and more cumbersome. Even if nothing else were to change, the Government would need to take powers to avoid these regimes becoming outdated. As a core principle, we would not wish to see environmental protections eroded over time, and the Government wish to go further to ensure that these assessments deliver for the environment.

These assessments could and should be more effective, both in identifying the impacts which could occur and as tools for promoting environmental improvement. We want these reports to be an active means for pursuing environmental improvement and protection. It is this objective, building on the work of the Environment Act 2021, which we are pursuing through this part.

Further to Part 6, Part 7 puts into law a requirement for water companies to address nutrient pollution arising from wastewater treatment works by 2030. This, together with a nutrient mitigation scheme led by Natural England, will reduce the barriers to significant numbers of new homes while creating new and improved wetlands and woodlands, enhancing access to nature, improving the environment and helping to build much-needed homes.

Part 8 reforms development corporations in England to create a new, locally led form of development corporation to support local leadership of regeneration efforts. We are also updating other forms of development corporations to ensure that these valuable tools for co-ordinating large-scale developments can all benefit from the powers suited to their circumstances.

Part 9 makes changes to the system for compulsory purchase, including enabling its digitisation similarly to Chapter 1 of Part 3. The purpose of these changes is to allow authorities to make better use of powers in their areas, where they find that there is a case for their use in shaping and regenerating those areas.

Part 10 provides local authorities with a tool in their efforts to regenerate and protect their high streets. By means of a high-street rental auction, planning authorities will be able, where a property has been vacant for at least a year—or at least 366 days within a two-year period—to make arrangements for that property to be let on appropriate terms. This is a discretionary power for local authorities, and we will provide guidance to support them as to how and when to use this new power. However, we expect it to form a backstop position to assist in preventing the decline of those high streets at the hearts of our communities.

Penultimately, Part 11 provides for powers to acquire more information about land ownership and arrangements. These powers respond to calls we have often heard regarding the barriers for local authorities and others arising from the lack of transparency about who ultimately owns land and who has options and other interests in it. As noble Lords will know, the possible arrangements are myriad. The powers we are taking have been deliberately constructed to try to preclude the possibility that a form of interest in land might escape the transparency that we seek to create.

Finally, Part 12 makes a number of changes which seek in large part to tidy up various regimes and systems that interact with the main elements of the Bill. We are taking powers to create a scheme for the registration of short-term lettings, the proliferation of which can cause problems in specific communities. The register will improve consistency in standards across all types of guest accommodation and deliver much-needed evidence and data on the number and locations of short- term lets in England.

We are also making permanent the provisions, introduced during the pandemic, streamlining the application for pavement licensing for outdoor dining in the Business and Planning Act 2020. To make these provisions work, they will be taken forward with minor modifications to their previous form based on feedback on the operation of the temporary measures during the pandemic.

In connection with our wider improvements to the heritage regime, we are placing into statute the requirement for authorities to maintain a historic environment record for all their areas. We are also allowing the Secretary of State to commission a review of the governance of the Royal Institution of Chartered Surveyors and providing powers for fees to be charged in connection with monitoring, variations and transfers of marine licences.

The breadth of the subject matter I have outlined seems eclectic, but these measures are all connected by our desire to empower areas through both devolution and improvements to existing systems to take advantage of the opportunities that they see. Through the reforms in the Bill, we seek to make it easier for areas to agree to devolution suited to them and shape their areas to take advantage of new opportunities while supporting their communities and safeguarding and improving the environment.

For the majority of the measures in the Bill, we are making changes only in relation to England. In some areas, the Bill extends beyond England, such as on environmental assessment, where it extends across the UK. I hope to have more to say on that subject later during the passage of the Bill once discussions with the relevant devolved Governments have concluded.

The House will also have noted the delegation of powers which the Bill provides to Ministers. We recognise the legitimate concerns that noble Lords have on this topic. We have sought to ensure that the powers we take are justified and appropriate to the policy in its context. I hope to be able to reassure your Lordships and make our case in relation to each measure as the Bill progresses. We will, of course, listen carefully to any suggestions that noble Lords may have.

The Bill enjoyed extended scrutiny in the other place and emerged all the stronger for that consideration. Your Lordships’ expertise on the complex matters with which the Bill is concerned can only further assist, and I look forward to working with them on achieving its objectives.

I very much look forward to the maiden speeches of the noble Lord, Lord Jackson of Peterborough, and the noble Baroness, Lady Anderson of Stoke-on-Trent. I join the House in giving them a very warm welcome to this place. I also look forward to the valedictory speech of the noble Baroness, Lady Harris of Richmond, who will contribute virtually. I hope that she can hear me when I say how much she will be missed in this House. I commend the Bill to the House and beg to move.

--- Later in debate ---

[Baroness Scott of Bybrook (Con)]

First of all, I give my sincere apologises to the noble Baroness, Lady Harris of Richmond. I am so pleased that she is not retiring, and I look forward to her further contributions well into the future. I hope that she can hear me.

I am grateful to all noble Lords who have spoken today and am encouraged by the level of interest prompted by the Bill. As we have heard from noble Lords across the House, the Bill offers a genuine opportunity to empower local leadership to tackle issues on which they are the experts. Local power, exercised accountably, is the only way we will extend opportunity throughout our country. Too often, Governments have erroneously thought that centralising power will make them more effective. The lessons of the past 70 years are clear: that approach does not work. We must trust local areas and provide them with the tools to build their own futures.

This has been a substantial and valuable debate with significant contributions from across the House. I will respond to as many points as I can within the time I have, but, with over 65 speakers listed, it will be challenging, to say the least. I hope noble Lords will excuse me if I do not list a number of Peers; I appreciate everything they have said and ask for their forgiveness if I do not mention everyone by name. I also hope that they will forgive me if I do not address every point raised. Where I do not address a point, I will follow up with an extensive letter which I will copy to all Members who have spoken; I will also put a copy in the Library. I also repeat my offer to all noble Lords across the House to meet to discuss any of these matters in greater detail. I will put together briefings on some of the themes that have come out of the debate. I implore noble Lords to get in touch with my private office, and I assure them that I have written every question in my little book and will ensure that we get them answered.

Before I start discussing the Bill, I congratulate my noble friend Lord Jackson of Peterborough and the noble Baroness, Lady Anderson of Stoke-on-Trent, on their maiden speeches today. They both made excellent contributions to our debate, and I look forward to working with them both in future, not only on this Bill but on other Bills in the years ahead—if I am still standing here at the Dispatch Box.

I turn now to the matters raised in the debate. First, we will work with the Delegated Powers and Regulatory Reform Committee and consider any recommendations on narrowing the powers in the Bill, where appropriate. I know that that issue is of keen interest to this House, as we have heard in many contributions, and I am committed to working through any issues raised by the Select Committee.

I turn now to the levelling-up missions. This Government’s defining mission is to level up our country to close the gap in productivity, health, incomes and opportunities between much of the south-east and the rest of the country. That is made all the more urgent given the current economic context, with places across the country affected in different ways by these headwinds.

As the levelling up White Paper sets out:

“Levelling up is a moral, social and economic programme for the whole of government”


to spread opportunity and prosperity more equally across the country. The Bill sets out the framework for delivering on that levelling-up mission and places a statutory duty on the Government to publish an annual report on our progress on those missions. The Bill is an enabling Bill; it creates the foundations for action to be taken to address entrenched geographical disparities and to level up the country.

The Government recognise that scrutiny and seeking expert advice will be important to ensuring that we deliver on our missions and level up the country. That is why we have established the levelling-up advisory council, chaired by Andy Haldane, who will provide the Government with expert advice to inform the design and delivery of all these missions.

The levelling-up missions are intended to anchor government policy and decision-making necessary to level up the UK. However, these missions should not be set in stone: as the economy adapts, so too might the missions, to reflect the changing environment and lessons learned from past interventions. As we become more ambitious, or as better metrics become available, we should be able to update missions to reflect that. Importantly, the Bill sets out that any changes to missions should be fully and transparently explained and justified through a Statement to Parliament when they occur.

Our approach to the missions is the same as the approach taken with fiscal rules: they are subject to debate in Parliament but are not in law. His Majesty’s Treasury publishes its fiscal rules in a non-legislative policy document, but that is laid in Parliament. This does not prevent the Government from being held to account for keeping to their fiscal targets. The missions will be published in a policy document laid before, and debated in, Parliament. The first example of this document will be based on the levelling up White Paper, and future iterations will include the headline and supporting metrics used to define the missions and measure progress towards them.

The 12 levelling-up missions are a tool to break down silos and encourage co-operation across the public, private and voluntary sectors. To ensure that missions deliver these benefits, we are improving the way in which departments work together across central government, with clear accountability through named individuals taking responsibility for progress on each mission and with structures to enable joint working on each mission. To facilitate the cross-departmental co-ordination of levelling up at the ministerial level, a dedicated inter-ministerial group on levelling up has been established, chaired by the DLUHC Secretary of State.

I turn to devolution. The Bill sets out the procedure for the Secretary of State to devolve local authority and public authority functions to a combined county authority. This is similar to the procedure conferring these functions on a combined authority and individual local authorities in the 2009 and 2016 Acts. In each case, this might follow the agreement of a devolution deal.

The Bill will also align the processes for establishing and amending mayoral combined authorities to the proposed combined county authority processes, which will simplify devolution for areas, enabling more rapid expansion. By amending the current statutory consent requirements around the expansion of combined authorities and the conferral of powers, the Bill will enable more local authority areas to join combined authorities, expanding devolution, and to gain greater powers, deepening devolution, while ensuring that combined authorities are able to remunerate constituent authority councillors for their role on overview and scrutiny committees, ensuring stronger accountability.

In line with our focus on supporting local leaders to drive better outcomes and levelling up, the Secretary of State may make such regulations only if they consider that doing so would be

“likely to improve the economic, social and environmental well-being of some or all of the people who live or work in the area”.

The Secretary of State must have such discretion to implement deals that they have agreed with areas based on a robust assessment of whether all parts of this statutory test have been met. It is essential that a statutory test is considered and met in all cases: there may be instances where the area concerned has demonstrated that conferral of functions would meet one criterion of the test but not another. As we say in the levelling up White Paper, devolution must reflect local areas’ differences; there cannot be a one-size-fits-all approach. Devolution is informed by the devolution framework, but this is not a standard offer of powers, and there is scope to agree further powers on a case-by-case basis.

There have been calls for greater fiscal devolution, down to parish and town council level. This Government trust local government and its strong and accountable local leaders. We are exploring further fiscal devolution, initially through the trailblazer devolution deals. We will consider putting power back in the hands of local people through greater fiscal freedoms. I thank the noble Baroness, Lady Scott of Needham Market, for her contribution; I know she works very closely with town and parish councils. We want to make sure that parish and town councils can protect the assets and amenities which matter to them locally. The Government have enabled this to happen through their £150 million community ownership fund, which was launched last year to support communities to save assets at risk. I know of a number of pubs and local shops for which investment has been used for this purpose. As part of the levelling up White Paper, we also look at the existing community asset frameworks and how they might be strengthened.

On national planning policy, this Bill reforms decision-making to strengthen the role of the development plan in practice. Decisions will be able to depart from the development plan and any national development planning policies only where

“material considerations strongly indicate otherwise.”

It will no longer be enough for those other considerations to merely “indicate otherwise”.

Giving national development management policies statutory weight will give greater clarity to the role of national planning policies in planning decisions. This is crucial to reducing the number of planning appeals local authorities currently face, therefore reducing the number of unanticipated developments communities face on their doorstep as a result. I think I can safely say this is an outcome that we all want to deliver.

National development management policies are intended to cover general planning considerations that apply regularly in decision-making, of the sort already found in the national planning policy. Giving these statutory recognition will promote greater consistency and certainty across the planning system and allow local plans to be shorter and more locally focused.

National development management policies will provide greater assurance that important safeguards such as protections for areas at risk of flooding, policy on climate change and policies to protect the green belt will continue to enjoy the strongest levels of protection, underpinning key national policy protections with statutory weight when the local plan policies go out of date. They will not impinge on local policies for shaping development, nor direct what land should be allocated for particular uses during the plan-making process. These will remain matters for locally produced plans.

Some local plans are woefully out of date. For example, some date from the 1990s. It would be wrong to say that these must supersede national policy in the event of conflict between a national development management policy and the development plan, when a planning decision must be made in accordance with both. This point is particularly crucial, because we wish to use national policy to drive higher standards, especially on good design, the environment and tackling climate change. It is important that these can take precedence in the event of conflict with out-of-date policies in certain plans. Nevertheless, I would expect such conflicts to be limited in future, both because we are making it easier to produce plans and keep them up to date, and because the Bill makes sure that new plans will be drawn up consistent with national policies, including the national development management policies.

The need to level up urban and rural areas has rightly received substantial attention in this debate, and we have considered the impact on rural areas. The Bill will benefit rural areas by giving communities more of a say on local plans by way of a new infrastructure levy that can deliver as much, if not more, affordable housing than at present, and a new requirement for infrastructure providers and other bodies to provide assistance to local authorities in drafting their local plans.

Through a discretionary council tax premium for second homes and the infrastructure levy, LPAs will be empowered with more money to address issues that matter to the people living in rural areas, such as infrastructure, housing supply and affordability and the sustainability of local communities. Our second rural-proofing report, Delivering for Rural England, published last September, showed what levelling up might look like in a rural area and set out what the Government were doing. The independent Levelling Up Advisory Council is also exploring how it can offer specific insights into the design and delivery of levelling up in rural areas.

On rural funding, we launched the £110 million rural England prosperity fund on 3 September 2022 to enable local authorities to provide small capital grants to support rural businesses and community infrastructure. This is replacing funding previously provided by the EU through the LEADER and growth elements of the rural development programme for England and is a rural top-up to the UK’s shared prosperity fund.

On housing, I have a list here of many, if not the majority, of noble Lords who spoke today on this issue, but I will not read it out. Noble Lords will be aware of our consultation, launched last December, which sets out in more detail our proposed approach to planning for housing in Chapter 4. We are retaining a method for calculating local housing need figures, but these will be an advisory starting point; it will be up to local authorities, working with their communities, to determine how many houses can actually be built, taking into account the needs and nature of their local area, such as green belt, the existence of a national park or a coast, and recognising that building should not wholly change the character of an area. We propose to make changes to the rolling five-year land supply, ending this obligation where planned strategic housing policies are up to date. Communities will have a powerful incentive to get involved in their local plan.

The new infrastructure levy has received a considerable amount of debate this evening. The levy, set and raised by local authorities, will seek to deliver at least as much affordable housing. The Bill ensures that local authorities take the desirability of delivering at least as much affordable housing into account when they set their rates; this will be achieved in part through the right to require, which will enable local authorities to require developers to build on-site affordable housing. We will shortly consult on the levy on how the right to require will operate.

The noble Lord, Lord Best, as well as speaking knowledgably on affordable housing, referenced the Letwin review. While that review found no evidence of systematic land banking, it found substantial scope to accelerate build-out rates, particularly through diversification. The Government are clear that new homes should be built out as soon as possible when build-out is delayed. It is for councils and developers to work closely together to overcome any barriers. Our robust package of build-out measures seeks to encourage this.

It was questioned whether the infrastructure levy would be able to mitigate the impact of specific development. The levy is proposed largely to replace the complex and discretionary Section 106 regime. Under the infrastructure levy, we intend that in all cases local planning authorities will be able to require developers on all sites to provide infrastructure integral to that site. That includes infrastructure crucial to that site to function, such as access roads or connections to drainage networks. These items of infrastructure will continue to be delivered by developers.

This Government’s commitment to building 300,000 homes a year has been a significant topic of discussion. Our planning reforms will help to deliver enough of the right homes in the right places, and we will do that by promoting development that is beautiful, that comes with the right infrastructure, that is done democratically with local communities rather than done to them, that protects and improves our environment, and that leaves us with better neighbourhoods than we had before. The Government remain committed to continuing to work towards our ambition of delivering 300,000 homes a year in England, as set out in the 2019 Conservative manifesto. We are making strong progress in this area. Since 2010, over 2.2 million additional homes have been delivered in England, including more than 632,600 affordable homes.

Finally, I come to the environment. The Government recognise the challenge of climate change. It is critical that the planning system must address this effectively. Through the Climate Change Act 2008 the Government have committed to reduce emissions by at least 100% of 1990 levels by 2050 and to produce national adaptation programmes every five years that respond to economy-wide climate change risk assessments. The Bill sets out that local plans

“must be designed to secure that the development and use of land in”—

the local planning authority area—

“contribute to the mitigation of, and adaptation to, climate change.”

Our new outcomes-based approach to environmental assessment will ensure that the ambitions of the Environment Act and the 25-year environment plan are reflected in the planning process, placing the Government’s environmental commitments at the centre of decision-making.

The National Planning Policy Framework is already clear that plans should take a proactive approach to mitigating and adapting to climate change, taking into account the long-term implications for flood risk, coastal change, water supply, biodiversity and landscapes, and the risk of overheating from rising temperatures, in line with the objectives and provisions of the Climate Change Act 2008. The National Planning Policy Framework must be taken into account in preparing the development plan and is a material consideration in planning decisions. This includes the framework’s current policies related to climate change mitigation and adaptation. Furthermore, as committed to in the net-zero strategy, we will carry out a full review of the National Planning Policy Framework to ensure it contributes to climate change mitigation and adaptation as fully as possible. This will be consulted on as part of wider changes to the National Planning Policy Framework to support the ambitions in the Levelling-up and Regeneration Bill.

I thank noble Lords for their continued assistance with and support of the Bill and I look forward to progressing our discussions in Committee. I single out the noble Lord, Lord Heseltine, for his contribution this evening, for the foundations he laid through his trail-blazing work on devolution, and for the wealth of knowledge he brings to this debate. I hope he will continue to take part as the Bill moves through this House.

I have not been able to respond to each point raised, and I apologise, but I think I am already over time. Given the hour at which we are wrapping up this Second Reading, I hope that noble Lords understand the approach I have taken. I reiterate my commitment to meeting any Member of this House who wishes to discuss the Bill further. I have noted the missions, housing numbers, environment issues and devolution as issues on which I shall try to put together some meetings very quickly—certainly before we get to Committee. I have noted each request for a meeting that has been made this evening and I will instruct my private office to reach out to noble Lords to get these meetings set up. I hope that is acceptable to the House. I commend the Bill to the House.

Bill read a second time.

--- Later in debate ---

Moved by

[Baroness Scott of Bybrook]

That it be an instruction to the Committee of the Whole House that they consider the Bill in the following order:

Clauses 1 to 13, Schedule 1, Clauses 14 to 25, Schedule 2, Clauses 26 to 31, Schedule 3, Clauses 32 to 54, Schedule 4, Clauses 55 to 77, Schedule 5, Clauses 78 to 86, Schedule 6, Clauses 87 to 90, Schedule 7, Clauses 91 to 94, Schedule 8, Clauses 95 to 101, Schedule 9, Clauses 102 to 104, Schedule 10, Clauses 105 to 124, Schedule 11, Clauses 125 to 154, Schedule 12, Clauses 155 to 158, Schedule 13, Clauses 159 to 162, Schedule 14, Clauses 163 to 169, Schedule 15, Clauses 170 to 186, Schedule 16, Clauses 187 to 191, Schedule 17, Clauses 192 to 211, Schedule 18, Clauses 212 to 223, Title.

Motion agreed.

Housebuilding: Government Targets

Baroness Scott of Bybrook Excerpts

Monday 16th January 2023 Lords Chamber

[Lord Young of Cookham]

To ask His Majesty’s Government whether it remains their policy to build 300,000 homes a year.

[The Parliamentary Under-Secretary of State, Department for Levelling Up, Housing & Communities (Baroness Scott of Bybrook) (Con)]

The Government remain committed to continuing to work towards our ambition of delivering 300,000 homes a year, as set out in the 2019 Conservative manifesto. We are making good progress. Annual housing supply is up 10% compared with the previous year, with more than 232,000 net additional homes delivered in 2021-22. This is the third-highest yearly rate for the last 30 years.

[Lord Young of Cookham (Con)]

I am grateful to my noble friend for that renewed commitment, but does she recall the 2019 White Paper Fixing Our Broken Housing Market, which listed a number of reasons why we might not hit that target? The first one said that

“some local authorities can duck potentially difficult decisions, because they are free to come up with their own methodology for calculating ‘objectively assessed need’.”

Does my noble friend understand that asking local authorities to make the housing target discretionary rather than mandatory makes it less likely that we will hit the 300,000 target, because you cannot rely on the good will of local authorities to meet a national mandate?

[Baroness Scott of Bybrook (Con)]

My Lords, we remain committed to a plan-led system. National planning policy expects local planning authorities, through their plans, to make sufficient provision for housing and to identify the sites to deliver much-needed homes to meet local needs. To get enough homes built in places where people and communities need them, a crucial first step is to plan for the right number of homes. That is why we remain committed to the 300,000 homes target and to retaining a clear starting point for calculating local housing needs. We are currently consulting on changes to the planning policy that will support how we plan to deliver the homes our communities need.

[Lord Kennedy of Southwark (Lab Co-op)]

My Lords, I declare my interests as a vice-president of the Local Government Association, chair of the Heart of Medway Housing Association and a non-executive director at MHS Homes Ltd. The Centre for Policy Studies estimated that, without the target, housebuilding could fall by as much as 20%, while the Home Builders Federation estimated that it could cause a £17 billion hit to the economy. Can the Minister confirm whether assessments made by the department support those estimates?

[Baroness Scott of Bybrook (Con)]

I cannot confirm that those estimates are supported by the department. What I can continue to say, as confirmed by the Secretary of State in a Written Statement in December, is that standard methods of assessing local housing need will be retained and so will the 300,000 homes target.

[Baroness Butler-Sloss (CB)]

My Lords, why will the Government not support prefabricated housing? Surely it would help social housing and would last for at least 25 years, when things might be better—they could not be worse.

[Baroness Scott of Bybrook (Con)]

I think this question was asked last week as well. We are tackling the barriers to increasing use of modern methods of construction in the industry, which are cheaper and quicker to deliver, but it means we have to be joined up so that we have a sustained pipeline for these companies to be able to deliver these important new houses. Through our £11.5 billion affordable homes programme we are challenging the sector to increase the number of homes delivered through this modern method. Around 40% of current allocations made through the programme use modern methods of construction.

[Baroness Thornhill (LD)]

Despite the Minister’s very genuine assurances, we are told that housing targets are now advisory, not mandatory, and we know that an increasing number of councils are actually stopping work on their local plans. Indeed, some are withdrawing them. The Secretary of State has said that councils do not need to pass as rigorous a test to get their plans through. Are the Government not now in danger of punishing the majority of councils that have complied with the manifesto and the rules and had their plans adopted, and letting off the hook or even rewarding those that have dragged their heels?

[Baroness Scott of Bybrook (Con)]

No, we are not. The Bill that is starting Second Reading tomorrow in this House will make it very clear that local plans are what are required from local authorities. It is important that they have local plans. Only 40% of local authorities have up-to-date ones at the moment. It is important that all local authorities have up-to-date plans, because the evidence shows that local authorities that do not have a local plan often deliver up to 14% less housing than those that do.

[Lord Baker of Dorking (Con)]

My Lords, in the 1950s Maurice Macmillan announced the target of 300,000 houses a year. He was very reluctant to do it, but it was forced upon him by an ambitious Tory party conference. He then decided to appoint one of his Defence Ministers, Ernest Marples, to do it. Ernest Marples had made his fortune owning Marples Ridgway, building roads, so he knew a trick or two. Within two years he had built 300,000 houses, so it is quite possible for our country to build 300,000 houses a year if we are determined to do it.

[Baroness Scott of Bybrook (Con)]

I absolutely agree with my noble friend. That is exactly what we are determined to do through the measures in the Levelling-up and Regeneration Bill, which is coming into this House tomorrow, in accordance with our manifesto.

[Lord Grocott (Lab)]

My Lords, does the Minister not recognise that it is not just the absolute number that is important but the type of tenure? What is crystal clear for anyone who looks at the figures is, in effect, the collapse of availability of social housing in this country. Until the Minister can show us a plan by the Government to try to restore that as a proportion of the total number of households in the country, we will not meet the acute need as required.

[Baroness Scott of Bybrook (Con)]

The noble Lord is absolutely right, but we are investing £11.5 billion through our affordable homes programme to deliver up to 180,000 more affordable homes. A large number of these will be available for social rent. Also, the Government have provided a range of tools to help councils deliver more homes, particularly in this sector. They include the councils’ freedom on how to spend the money received from the right-to-buy sales. The Government also abolished the housing revenue account borrowing cap in 2018, allowing councils to borrow more money to build more homes.

[Baroness Jones of Moulsecoomb (GP)]

My Lords, do the Government appreciate the value of community land trusts? To follow on from the last question, they actually build homes that are affordable, but affordable in perpetuity because they are not sold on at vast increases in cost. Have the Government evaluated that?

[Baroness Scott of Bybrook (Con)]

Yes. Many local authorities in the country certainly work closely with community land trusts. I do not have an update on what is happening nationally, but I will certainly get an answer to the noble Baroness.

[Lord Best (CB)]

My Lords, the Minister will have seen the press reports from Barratt and some of the other big-volume housebuilders, saying that they are going to produce fewer homes in the current economic circumstances of the year ahead. This is not a great tragedy in everybody’s view, since some of these schemes will be horrible, soulless estates outside town with very few amenities and poor public transport. However, we need the extra homes in this country to meet the nation’s needs. Is this not the moment to boost social housing investment? Is this not just the right time, when we know that the housebuilders are not going to do it, to really get going with some of the social housing that we so desperately need?

[Baroness Scott of Bybrook (Con)]

Yes, the noble Lord is absolutely right. That is why we put £500 billion this year into local authorities, so that they can buy houses for social housing rent, particularly in areas of most need.

[Lord Harrington of Watford (Con)]

My Lords, the National Planning Policy Framework from Greg Clark, when he was Secretary of State, gave government the power to impose targets locally if the local authority could not come up with a local plan. My understanding is that the latest amendments to the levelling-up Bill mean that that will not be the case and that these local plans and targets will be advisory. I cannot understand how this will lead to anything other than a reduction in housing stock. I would like my noble friend the Minister to comment.

[Baroness Scott of Bybrook (Con)]

My Lords, the Government need to work closely with local authorities to ensure that they are building the houses that are required in their area. If every local authority builds the number of houses required in its area, we will hit that target.

Housing: Private Rented Sector

Baroness Scott of Bybrook Excerpts

Thursday 12th January 2023 Lords Chamber

[The Parliamentary Under-Secretary of State, Department for Levelling Up, Housing & Communities (Baroness Scott of Bybrook) (Con)]

Our priority is to ensure that everyone lives in a decent and secure home. The proportion of private rented sector households has remained relatively stable for nearly a decade, currently accounting for 19% of households. At present, demand for PRS properties is greater than the available supply due to a range of factors, and we continue to monitor the market. We will publish a full impact assessment, setting out the costs and benefits, of our planned private rented sector reforms.

[Lord Carrington (CB)]

I thank the Minister for her response. Clearly, the supply of houses for rent is an increasing problem. I want to focus on the methodology of energy performance certificates used by the Government for upgrading efficiency. By an early date yet to be confirmed, all rental properties must have an EPC rating of C, which is likely to be both very expensive and unachievable for many properties. EPCs were introduced in 2007 to measure the efficiency of a house based on average energy consumption. While there have been adjustments, the relevant standards still take little account of the age and character of the house, or the carbon embodied in it, so all houses are assessed on the same basis. Therefore, EPC remedies are often based on inappropriate standard assumptions. Please could the Minister tell us how and when this blunt tool will be replaced by a measurement that is fit for purpose?

[Baroness Scott of Bybrook (Con)]

My Lords, I do not agree that it is a blunt tool. We propose to apply to new tenancies a requirement for an EPC rating of C and raise the maximum spend that landlords are required to invest to £10,000 from April 2025, and to all tenancies by April 2028—the noble Lord is right. If we are going to meet our net-zero strategy, we have to commit even further to consulting on phasing in even higher minimum performance standards. That will take place through the social housing sector but also through the private rented sector.

[Lord Young of Cookham (Con)]

My Lords, further to the noble Lord’s original Question, is there not an inevitable tension between the interests of the private landlord on the one hand, who wants access to his capital or property and is therefore interested in a short lease, and the interests of families and tenants on the other hand, for whom renting may now be the only tenure and who want a much longer lease? Should we not be moving far more quickly to the position that exists in most other countries, where good-quality rented accommodation is provided by financial institutions as a long-term investment, as they are more prepared to issue the long leases that tenants increasingly want?

[Baroness Scott of Bybrook (Con)]

My noble friend brings up an extremely important point. The Government have always welcomed new institutional investments in the private rented sector and will continue to do so. We have also made a number of interventions to support the build-to-rent sector, such as the build to rent fund and the private rented sector guarantee scheme. Build to rent boosts housing supply and diversifies the private rented sector, but it also increases quality and choice for renters in cities and towns across the country. I will take the noble Lord’s views back to the department, and we will look into this further.

[Baroness Thornhill (LD)]

My Lords, I thank the Minister for her answer to the first part of the Question, but does she accept that part of the reduction in supply is due to some landlords choosing the more lucrative Airbnb lettings and platforms, and that the Government’s policy to restrict mortgage interest relief on buy-to-let mortgages has inadvertently contributed to this loss of homes by exempting those lettings from that relief? Will the Government look seriously at this and other tax issues to level the playing field in order to attract landlords back to much-needed longer secure tenancies?

[Baroness Scott of Bybrook (Con)]

The noble Baroness brings up an important point. We know that this has become more important over the last year. We have committed as a Government to consult on the introduction of a use class for short-term lets; I think that is important. Subject to the outcome of that consultation, this will help local authorities to better control the increase of such uses where landlords seek to use existing homes for short lets, rather than using them for longer lets.

[Baroness Ritchie of Downpatrick (Lab)]

My Lords, given the ongoing cost of living crisis and the reliance of many people for survival purposes on food banks, what impact do the Government believe the lack of available homes to rent is having on the ability of councils and other providers to provide for the homeless?

[Baroness Scott of Bybrook (Con)]

My Lords, any shortfall in the number of permanent long-term homes available in the market will have a pressure on people looking for those homes and could put pressure on their household budgets, because if people are desperate for housing they will pay more than maybe they should have to. The Government are looking at all that. However, we have helped tenants and all people across this country. We have put in £37 billion of support for people who need it in 2022-23 to help us through this difficult time, and we will continue to look at making sure that we have as many houses of all types of tenure in our stock available for people.

[Lord Bird (CB)]

Is it possible to look at the tragedy of increased evictions that is happening now? Are the Government going to come up with a solution to these two opposites: the tenants who can no longer afford the increase in rent and the landlords who are stymied in a similar way? We need, and I recommend, a debate in the House about this problem.

[Baroness Scott of Bybrook (Con)]

I am afraid that I have to answer the noble Lord that it is not up to me to agree to a debate, but I am sure that the Front Bench along from me has listened to what the noble Lord said. It would be an interesting debate.

[Lord Naseby (Con)]

My Lords, I recognise my noble friend’s sincerity in her initial Answer. Nevertheless, 95,000 families are living in temporary accommodation. In recent months, we have seen rent rises nationally of 17% and as high as 59% in some boroughs of London. Will my noble friend put some motion and activity behind a proper analysis so that we can produce an urgent way forward?

[Baroness Scott of Bybrook (Con)]

The Government have made it clear that, within this Session, they will bring forward the private renters Bill, which will look at the issues that my noble friend raises, as well as many others. The Government have allocated £654 million in funding this year and next year on homelessness and people in temporary accommodation. Recently, because of those issues that we know are happening, we have topped that up in December by another £50 million. We are doing everything that we can in this difficult time to support these vulnerable people.

[Baroness Taylor of Stevenage (Lab)]

My Lords, as a serving councillor, I deal with cases of homelessness every day. The number is increasing every day because of eviction from private tenancies and/or the affordability of those tenancies, and fewer landlords coming forward. With social housing waiting lists now at over 1 million due to decades of underinvestment in social housing and an annual loss of 24,000 social homes a year due to demolition and sales under the right to buy, what are the Government going to do to address the housing emergency?

[Baroness Scott of Bybrook (Con)]

My Lords, the Government are doing many things. When the renters reform Bill comes through—it was a Conservative Party manifesto commitment—it will look at these issues, particularly in the private rented sector. However, this is a much bigger issue across all sectors, as the noble Baroness said. We are doing an enormous amount, as I have said and am not repeating, and will continue to do so. Just to say, I think that an important thing that will come out in the renters reform Bill is that we will remove Section 21 evictions.

[Baroness Butler-Sloss (CB)]

My Lords, have the Government thought of supporting prefabricated buildings for the social sector?

[Baroness Scott of Bybrook (Con)]

The Government have not considered that, although we may have to consider such measures for temporary accommodation as a result of pressures due particularly to immigration from Ukraine and Afghanistan. However, it is up to local authorities to find innovative responses to the pressures that they are under.

Residential Leaseholders

Baroness Scott of Bybrook Excerpts

Thursday 12th January 2023 Lords Chamber

[Lord Kennedy of Southwark (Lab Co-op)]

My Lords, I beg leave to ask the Question standing in my name on the Order Paper and declare my interest as a leaseholder.

[The Parliamentary Under-Secretary of State, Department for Levelling Up, Housing & Communities (Baroness Scott of Bybrook) (Con)]

Ah, the noble Lord, Lord Kennedy—once again. The Government have been clear about our commitment to addressing the historic imbalance in the leaseholder system, as he knows. The Leaseholder Reform (Ground Rent) Act 2022 came into force in June last year. These changes to ground rent for future leases are just the beginning of our reforms. Further legislation will follow later in this Parliament. It is a complex long-term reform programme, and it is important that we get the detail right.

[Lord Kennedy of Southwark (Lab Co-op)]

My Lords, I am aware and am grateful that the noble Baroness is committed to leasehold reform. I have no doubt about that. The Bill, when we get it, needs to: be ambitious by giving proper rights to leaseholders; enable them to purchase their freehold if they want to; make greater use of commonhold; or just get rid of the stupid, petty rules such as the colour of the curtains that one can hang in one’s own home or the outrageous rip-off charges levied against leaseholders, day in and day out. What assurance can she give the House that the Bill will be truly ambitious and transformative, not just a damp squib?

[Baroness Scott of Bybrook (Con)]

My Lords, the Government have already committed to: making it easier and cheaper for leaseholders to extend their lease or buy their freehold; banning new leasehold houses, so all new houses will be freehold from the onset rather than in exceptional circumstances; delivering a reformed commonhold system as an alternative to leasehold ownership for flats; and giving leaseholders more information about what their costs cover and ensuring that they are not subject to unjustified legal costs. I am sorry that the noble Lord could not find time to come to a meeting that I agreed to the last time I was at this Dispatch Box talking about the same issue. It was at that meeting that we discussed what noble Lords were expecting to see and how we could meet those expectations. However, as I say, we will bring forward further leasehold reforms later in the Parliament but I cannot say at this time exactly what date it will be.

[Viscount Hanworth (Lab)]

The Minister will be aware that the property companies that own freeholds are able to impose on leaseholders any legal costs that might arise from a leaseholder’s appeal to a tribunal in the face of the freeholder’s exorbitant service charges. When will this extraordinary legal anomaly be redressed?

[Baroness Scott of Bybrook (Con)]

The Government believe that leaseholders should not be subject to unjustified legal costs and should be able to claim their own legal costs from their landlord. The Government are committed to taking action to address this as soon as possible.

[Lord Bellingham (Con)]

My Lords, the Leasehold Advisory Service does an excellent job, but is there an argument to have its remit extended to casework?

[Baroness Scott of Bybrook (Con)]

That is an interesting remark that I will take back to officials to discuss further. I will come back to my noble friend.

[Baroness Pinnock (LD)]

My Lords, I want to pursue what the noble Lord, Lord Kennedy, called rip-off charges, which the Government could take urgent action to address. I shall give the Minister an example. Fire doors are now to be inspected—rightly. Leaseholders are unable to make the arrangements for that inspection but freeholders or their agents do. One leaseholder contacted me to say that they are being charged £80 for their front door to be inspected each time—£320 a year. That is a rip-off service charge. What on earth are the Government going to do to address these rip-off service charges?

[Baroness Scott of Bybrook (Con)]

I cannot comment on the individual case, but the law is already clear that service charges must be reasonable. That is set out in Section 19 of the Landlord and Tenant Act 1985. If leaseholders feel they are being ripped off, they can apply in First-tier Tribunals for determination on this. However, I agree that there is more to do. The Government are committed to ensuring that charges, particularly service charges and these extra charges, are transparent. There should be a clear route to challenge or redress if things go wrong.

[Baroness Andrews (Lab)]

My Lords—

[The Lord Bishop of Chelmsford]

My Lords, in light of the commitment made by the big six lenders to accept mortgage applications for flats with building safety issues from Monday 9 January, will the Minister confirm that the Government will monitor their lending decisions to ensure that this time their commitments will be fulfilled, so that this part of the housing market can be unfrozen?

[Baroness Scott of Bybrook (Con)]

The right reverend Prelate brings up an interesting point. I do not know exactly what the Government will do, as the announcement was made only this week. However, I will find out exactly how we will monitor them and the process, and come back to her.

[Baroness Andrews (Lab)]

My Lords, I apologise to the right reverend Prelate. Can I press the Minister on the timetable? She said that she expects the Bill to be introduced before the end of this Parliament. Does she mean that it will be introduced before the election? It is not only disappointing that we have had delays but profoundly destabilising. For example, leaseholders no longer know whether it is safe to pursue enfranchisement or whether they should wait for the Bill. Another thing that has happened in recent years, with the extension of permitted development, is that there are blocks of flats with leaseholders held captive by freeholders who are pursuing upward extensions under permitted development, without the protection of law. These leaseholders do not even have protection in case they have to be decanted while building works are going on. It is a very serious situation and it is accelerating. I would like the Minister to advise on that point.

[Baroness Scott of Bybrook (Con)]

As I have made clear a number of times at this Dispatch Box, these measures were in the manifesto in 2019. We have always said that we will bring forward a reform Bill in this Parliament and that is what we intend to do. We just have to wait and see; I am very sorry. I totally understand that this is causing some issues in the sector. That is why we will get the Bill through as soon as we possibly can, but it has been quite complex and we need to get it right.

[Lord Young of Cookham (Con)]

My Lords, I welcome the commitment that my noble friend has just given to make it easier for leaseholders collectively to enfranchise, to make it easier for an individual leaseholder to extend the lease, and to move more towards a system of commonhold rather than leasehold. I understand that she cannot give a commitment about the timetable but, given that work on the Bill is clearly well advanced, can she consider publishing it in draft so that when it comes forward it can have a speedier passage?

[Baroness Scott of Bybrook (Con)]

I would love to put the Bill out in draft, because I would love to stop these Questions coming every three months from the noble Lord, Lord Kennedy. We have committed as a Government to making enfranchisement easier and cheaper for leaseholders, and that is important. We have also committed to abolish marriage value cap ground rents in enfranchisement calculations and prescribe rates to be used. We have already made clear that this is what we will do. We just have to be patient until the Bill comes forward.

[Lord Best (CB)]

My Lords, back in 2018 the Government set up the regulation of property agents working group, which I had the honour of chairing. This came forward with proposals that managing agents for blocks of flats who look after leasehold properties should be properly regulated, to deal with a number of the issues that have been raised. Can I have the Minister’s assurance that this ingredient will form part of the new Bill?

[Baroness Scott of Bybrook (Con)]

I have not seen the new Bill, so I cannot give that assurance. However, I am aware of the noble Lord’s review and I know that we are still considering it.

[Lord Whitty (Lab)]

My Lords, this Question has been about the plight of leaseholders, and the previous one was about private tenants. There are also problems in social housing and for people paying their mortgage, or indeed being able to afford a mortgage in the first place. Do the Government not recognise that all the things the Minister has referred to are a piecemeal approach to this? We have a crisis in every different sector of tenure in the housing market. It is important that the Government do not rely on the smaller measures to which she has referred—and given no date for. We need a whole new approach to housing policy and a whole new relationship between the Government, local government, landlords and, particularly, the big house builders and developers, who seem to make more money from knocking down buildings than they do from increasing affordable supply.

[Baroness Scott of Bybrook (Con)]

The Government are totally aware of the issues relating to all sectors of the housing industry in this country and those that affect tenants and home owners at the moment. We are dealing with this, but it has to be dealt with in this way; you cannot throw the whole thing up and look at it in one big piece. It has to be dealt with well and properly for the future, because a good, secure and decent home is what everybody deserves and is certainly something that is important for this Government.

Social Mobility Commission

Baroness Scott of Bybrook Excerpts

Thursday 12th January 2023 Lords Chamber

[Lord Watson of Invergowrie]

To ask His Majesty’s Government whether they intend to review the skills and experience required for the role of Chair of the Social Mobility Commission, following the resignation of the previous chair.

[The Parliamentary Under-Secretary of State, Department for Levelling Up, Housing & Communities (Baroness Scott of Bybrook) (Con)]

My Lords, leadership of the Social Mobility Commission requires a strong understanding of, and a demonstrated commitment to, the cause of social mobility, particularly in education and business. We sought a chair with excellent leadership and persuasive communication skills. Both Katharine Birbalsingh and the interim chair, Alun Francis, displayed these skills in abundance through their initial recruitment and their work at the commission in delivering a fresh approach to deep-rooted challenges. We have no plans to review the job specification for this role.

[Lord Watson of Invergowrie (Lab)]

My Lords, the Minister is working overtime today. To ensure she is on the appropriate rate, I suggest she has a word with my new noble friend Lady O’Grady of Upper Holloway, whom I am very pleased to see in her place. I thank the Minister for her reply, but the resignation of Katharine Birbalsingh came after just 14 months and after a number of statements were made which demonstrated that she was ill equipped for the role. She was appointed in addition to her day job as a head teacher. The issues of social justice that need to be addressed are so pressing that I do not believe it is realistic to expect the person tasked with leading that work to do so in their spare time. Will the Government recognise those pressing issues and the increasing level of child poverty—which, incidentally, used to be in the title of the Social Mobility Commission—by refocusing, by renaming the body the social justice commission and by making its chair a full-time role?

[Baroness Scott of Bybrook (Con)]

My Lords, the Government have no plans to do that. Katharine made very clear why she left in her article in Schools Week. The Minister for Women and Equalities has been very clear about how grateful she is to Katharine for her time as chair and also to Alun Francis, her deputy, who has now taken over as interim chairman. The commission has done excellent work under Katharine’s chairmanship and Alun’s deputy chairmanship, and that work will go on, so we have no plans to change anything at the moment.

[Lord Addington (LD)]

My Lords, as I have read it, the person who has resigned felt that they were doing more harm than good in the end. Can the Government make sure that they define exactly what they are supposed to do, and that the public know what that is, so that when the next person takes up this role on a permanent basis, we can all know what to expect and they can know what to deliver?

[Baroness Scott of Bybrook (Con)]

My Lords, it is very clear what the SMC should be doing. It is written down in its agreement with the Government. It has been delivering that, and it will continue to deliver that. I know that the commission met on 9 January under the deputy chairman, Alun Francis, and it is continuing to work and continuing with the priorities set previously by Katharine, Alun and the commission.

[Lord Foulkes of Cumnock (Lab Co-op)]

My Lords, I offer the Minister congratulations on answering three Questions out of the four, particularly since she has done so without any support from officials in the Box. I have never seen this before. In view of the debate that we are about to have on relations between Parliament and the Executive, does this indicate how the Department for Levelling Up, Housing and Communities shows no real interest in the proceedings of this House?

[Baroness Scott of Bybrook (Con)]

My Lords, I assure noble Lords that I have been extremely well briefed—I hope—on this issue. This issue, interestingly enough, is not to do with DLUHC. It comes from the equalities grouping, which is the responsibility of the Cabinet Office. The reality is that when one is answering 10 or 12 questions in 10 minutes, one cannot get anything from the Box, so it is much better that the officials stay away and brief the Minister beforehand.

[Baroness Hayman of Ullock (Lab)]

My Lords, I start by congratulating the Minister on her stamina this morning. She deserves a cup of coffee after this. My noble friend Lord Watson mentioned child poverty, so I remind noble Lords that last year, the Social Mobility Commission reported that almost 700,000 more children were living in poverty than in 2012. Will the Government establish a new child poverty reduction unit in No. 10 to accompany the work of the commission?

[Baroness Scott of Bybrook (Con)]

I am not aware of any plans to do that, but I will take the idea back. I have yet to meet my officials. I was officially put into this role only on Monday evening, so at my first meeting, I will certainly talk to officials about that and will talk further to the noble Baroness.

[Lord Geddes (Con)]

My Lords, does my noble friend consider it seemly that reference should be made to the most senior officer of a board as an inanimate object?

--- Later in debate ---

[Baroness Scott of Bybrook (Con)]

I certainly would never want to be called a chair; I have always required people to call me a chairman. That is the name of it, but perhaps I am a little old-fashioned.

[Baroness Hussein-Ece (LD)]

My Lords, given that social mobility has been decreasing over several decades now, will the Minister define what the Social Mobility Commission and the new tsar should be doing to improve this? All the evidence shows that it is not working.

[Baroness Scott of Bybrook (Con)]

My Lords, it is working. The annual State of the Nation report from the Social Mobility Commission, published on 23 June, talks about the progress made towards improving social mobility in this country. Produced under the previous chairmanship of the commission, it sets out a new approach to social mobility. It introduces a new social mobility index, which provides a systematic way of measuring social mobility across the whole of the UK. Data will now be compiled annually and at longer intervals of five and 10 years. This is important because we need to show the trends and to be able to prove it, as at times we get conflicting evidence about what is happening to social mobility. Certainly, the number of children from deprived areas who are going to university is going up.

[Lord Baker of Dorking (Con)]

My Lords, the Minister will know that two months ago, the commission reported that schools were no longer agents of social mobility. She will also know that universities now are not always guaranteed agents of social mobility because of the high level of graduate unemployment or underemployment. Will she ensure that whoever becomes the head of this commission really understands that the curriculum in general schools today is not serving the purpose of social mobility for hundreds of thousands of students? At least 300,000 students are disadvantaged still.

[Baroness Scott of Bybrook (Con)]

I thank my noble friend for that. I will certainly take that back. I am almost sure that anybody who will be chairing this commission or serving on it will have all that information in front of them and be looking at it in detail.

[Lord Grocott (Lab)]

In an answer to an earlier question, the Minister referred to the remit and the scope of the work of this body on social mobility. Is there not a glaring problem in this House, where there is a clear restriction on any kind of social mobility? I am referring to the 92 places that are reserved for hereditary Peers. Is there any progress at all towards greater social mobility among this sector, and if not, why not?

[Baroness Scott of Bybrook (Con)]

I have no answer for the noble Lord on that one. The questions I am answering are on a completely different subject.

[Lord Lexden (Con)]

My Lords, as my noble friend Lord Baker of Dorking pointed out, the key to greater social mobility must lie in education reform. By a happy coincidence, this House is about to establish a Select Committee on that very subject.

--- Later in debate ---

[Baroness Scott of Bybrook (Con)]

I agree with my noble friend that it has to start with education. That is why we had an extremely strong person in the chair at the time: her views on education were different, but they were extremely strong about the importance of education for children and for social mobility. I am pleased that we have a new Select Committee discussing this issue, and I hope that it will take forward those issues because they are important.

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

Baroness Scott of Bybrook Excerpts

Tuesday 20th December 2022 Lords Chamber

Moved by

[Baroness Scott of Bybrook]

That the draft Regulations laid before the House on 23 November be approved.

[The Parliamentary Under-Secretary of State, Department for Levelling Up, Housing & Communities (Baroness Scott of Bybrook) (Con)]

My Lords, this statutory instrument delivers a transitional relief scheme to protect businesses from large increases in their business rates bill when new property valuations come into effect on 1 April 2023. This will help around 700,000 properties with £1.6 billion of relief over the next three years.

The scheme, which is a significant part of the measures on business rates announced by my right honourable friend the Chancellor at the Autumn Statement, will cap bill increases after the revaluation by a set percentage each year. This will give certainty to businesses and, for the first time, ensure that 300,000 properties with falls in rateable value will see a full and immediate fall in their bills on 1 April.

As the Chancellor set out in his Autumn Statement, revaluations are an important and necessary part of the proper administration of the business rates system. By updating valuations so that they reflect market conditions, we make sure that the tax burden is fairly distributed. The new set of rateable values, which were published in draft last month and will be applied from 1 April, will therefore produce a fairer business rates system in which rates bills follow the up-to-date valuation of the property. The revaluation will build on measures we already have in the system to help ratepayers. Noble Lords will likely be aware that there is already a substantial amount of support through, for example, small business rate relief, which ensures that about 700,000 of England’s 2 million business properties pay nothing at all.

This scheme, at £1.6 billion of the total £13.6 billion package, will help around 700,000 properties transition to their new bills. Unlike previous schemes, it will not require ratepayers to wait years to see the benefits of falling valuations. The results of the Government’s recent transitional relief consultation were published alongside the Autumn Statement and clearly show businesses’ preference for the type of scheme we are putting in place.

The Government have listened to ratepayers and are delivering significant reform to transitional relief by removing the system of downward transition under which caps on increases were funded by restricting falls in bills. By scrapping the caps on the annual reduction in bills, some 300,000 properties with falls in rateable value will see a full and immediate fall in their bills on 1 April 2023.

Nevertheless, under current law—the Local Government Finance Act 1988—we are required, when making these regulations, to have regard to the object of ensuring that they are self-financing. To meet this legal requirement, we have included in the regulations a supplement of 3.3p on every £1 of rateable value to be paid by ratepayers in 2027-28. If, as we are currently required to do, we must include funding within the regulations, we consider this to be the fairest and most reasonable option as it allows businesses five years to recover from the current economic circumstances before having to meet the costs of transitional relief. But it is the Government’s intention—subject, of course, to the will and approval of Parliament—that no business will ever have to pay that supplement. We intend to bring forward primary legislation to reform the transitional relief, allowing us to remove the supplement so that the Exchequer shoulders the cost of capping bill increases after a revaluation.

Revaluations are important. They rebalance the burden of business rates across the tax base, making sure that they are a fair distribution. But, clearly, given the economic climate we are in, some ratepayers need support to transition to their new bills. This instrument, along with the wider support package announced by the Chancellor, provides the support that businesses need to manage the revaluation with greater certainty. I commend the regulations to the House.

--- Later in debate ---

[Baroness Hayman of Ullock (Lab)]

My Lords, I thank the Minister for her introduction. As we heard from her and other noble Lords, the SI gives relief to businesses, particularly to help them cope with next April’s increase in business rates. We know that many businesses have been struggling following the pandemic, and this, combined with rising energy bills and high inflation, means that they need further support.

While we very much welcome the Government’s provision of relief, we do not think that the regulations go far enough. The Labour Party has been calling for an increase in the threshold for small business rates relief from £15,000 to at least £25,000, because the burden of business rates is disproportionately heavy on small businesses, as we have heard from other noble Lords. Having said that, we do not want to impede the passage of the instrument going forward.

I will ask the Minister a couple of specific questions. Part 10 of the draft Explanatory Memorandum considers the consultation outcome. It says that:

“A total of 102 responses were received”—


despite the instrument intending to help around 700,000 businesses—and that only “16 local authorities” responded. Can the Minister say whether the department feels that there is a reason for such a low response to the consultation? Because of that low response, what further steps have the Government taken, or are intending to take, to engage with those who are affected? We may hear, in broader terms, many of the concerns that have been raised by noble Lords previously in the debate.

The noble Baroness, Lady McIntosh of Pickering, asked about timescales; similarly, I will ask about the fact that we are debating the instrument only today. The instrument comes into force on 31 December, which means that it needs to receive parliamentary approval before the Christmas Recess. But given that the consultation finished in the summer, why has it been left so late to approve it? The Local Government Association made it clear in its response to the consultation that any transitional arrangements for 2023, whether part of the formal scheme or supplementary, should be announced no later than the autumn that has just gone, when the draft list of provisional multipliers was announced. We are debating this on the penultimate day before the Recess, so can the Minister shed any light on why the House has not been given the opportunity to scrutinise it any sooner?

I will make some brief comments on the points made by other noble Lords. The noble Earl, Lord Lytton, and the noble Lord, Lord Shipley, made very pertinent points; I will not repeat them, but we need to consider much of what has been said here, particularly when we consider the pressures on our high streets. I have seen so many shops close down in my local high street since the pandemic, and there is a real worry about how high streets will get back on their feet again. On that point, the noble Lord, Lord Thurlow, talked about competition, looking, for example, at the costs that Amazon has compared with our retailers on the high street. Those are really serious matters, and, if we are serious about rejuvenating our high streets, we must look at how we manage that through the way they are charged and operated under the business rates system.

[Baroness Scott of Bybrook (Con)]

I thank noble Lords for their thoughtful contributions and for the cross-party support—although there were some questions that they probably want me to answer.

The statutory instrument delivers a key part of the business rates support package, providing much-needed protection for businesses and delivering the fairness rate payers have been calling for. By limiting bill increases each year, we will protect 700,000 properties from uncertainty and give years for them to adapt to their new bills. Without that measure, hundreds of thousands of taxpayers would face significant and immediate bill increases in just a few months’ time. We are providing this protection in a new way that allows bills to fall immediately and in full on 1 April, benefiting 300,000 properties. With the statutory instrument, businesses will have the certainty they need and the fairness they expect from their Government.

A number of questions and themes came up, the first of which, about the reform of the whole system, was brought up by the noble Earl, Lord Lytton, and mentioned by my noble friend Lady McIntosh of Pickering and the noble Lords, Lord Shipley and Lord Thurlow. The Government remain committed to implementing the outcomes of the business rates review and will bring forward legislation as soon as parliamentary time allows—that is all I can say on timing.

The Government consider a tax on the use and value of non-domestic property an important part of a balanced business tax system, alongside taxes on profits and consumption, and it is a common feature of tax systems internationally. Business rates raise over £20 billion a year in England to fund vital local services, and there is no alternative with widespread support that would raise sufficient revenue to replace them. Trying to raise that money elsewhere in the tax system would create significant trade-offs against the current fiscal background. More generally, there is no merit in radically overhauling or abolishing a tax with such benefits, as has been suggested by what is, I have to say, a minority of stakeholders.

--- Later in debate ---

[Baroness McIntosh of Pickering (Con)]

My Lords, will my noble friend write to me about the 3p? Also, if two-thirds of the hospitality sector will see a reduction, does that mean that one-third will see an increase?

[Baroness Scott of Bybrook (Con)]

No, I am not saying that. The whole hospitality sector will have special consideration, as was said in the Chancellor’s speech and the Autumn Statement. On the 3.3p in the pound, that is what will have to be paid by 2027-28 if we do not change primary legislation in the meantime.

I think that is everything and I hope that noble Lords will join me in supporting these regulations. I beg to move.

Motion agreed.

Housing: Cost of Living

Baroness Scott of Bybrook Excerpts

Thursday 15th December 2022 Lords Chamber

[The Lord Bishop of Chelmsford]

To ask His Majesty’s Government, given the increased cost of living, what actions they will take to ensure that housing is affordable in relation to household incomes in (1) the private rented sector, (2) the social housing sector, and (3) for homeowners with mortgages.

[The Parliamentary Under-Secretary of State, Department for Levelling Up, Housing & Communities (Baroness Scott of Bybrook) (Con)]

My Lords, the Government recognise the cost of living pressures that people are facing across this country, particularly this winter. Local housing allowance rates have been maintained at their increased level following a boost in investment of nearly £1 billion in April 2020. The Government have also capped social housing rent increases for 2023-24 at 7% to protect social tenants from higher rent increases, and last week we published a mortgage support statement setting out the support available to mortgage holders.

[The Lord Bishop of Chelmsford]

My Lords, I thank the Minister for her Answer to what I know was quite a broad Question. However, this winter nearly 1 million private renters are at risk of being evicted, many social housing tenants struggle despite the Government’s 7% social rent cap and home owners face high interest rates. If ever there were a need for a long-term cross-party housing strategy to address the lack of truly affordable housing, surely it is now. Will the Minister commit to developing such a strategy, as recommended by the Archbishops’ housing commission report, Coming Home?

[Baroness Scott of Bybrook (Con)]

I thank the right reverend Prelate for that question, and I think it is an extremely interesting opportunity. I would like to talk to her in further detail about that because I have read the report Coming Home and I think the idea of the five S’s—sustainable, safe, stable, social and satisfying housing—is a wonderful thing to aspire to. I cannot offer her a long-term cross-party review at this time, but I would like to talk to her further and talk to my officials about that.

[Lord Young of Cookham (Con)]

My Lords, 20% of families in England now rent privately and one-third of them rely on housing benefit. That is capped by the local housing allowance, which was fixed on rents in 2019 and has been frozen for five years, although rents are rising rapidly—by 12% in the last year. This means that a family with a two-bedroom house faces a shortfall of some £1,500 a year that they have to meet out of the rest of their benefit. Does my noble friend recognise the difficulties that this can cause? Is there a case for the Chancellor, in his forthcoming Budget, reviewing the decision to freeze the local housing allowance?

--- Later in debate ---

[Baroness Scott of Bybrook (Con)]

I think my noble friend understands that I cannot offer anything on behalf of the Chancellor next spring, but I can say that it is something that we need to discuss. I shall be taking this issue back to officials to discuss it fully before we get anywhere near the Spring Statement.

[Lord Sahota (Lab)]

My Lords, in 1980 some 30% of housing was available for rent as social housing; now that figure is down to 17%. Given that there are around 190,000 people on local authorities’ waiting lists for houses, what are the Government going to do about the acute shortage of social housing?

[Baroness Scott of Bybrook (Con)]

The noble Lord is right that it is a challenge for this country and this Government to provide more affordable homes. That is why we have an £11.5 billion affordable homes programme, which will deliver tens of thousands of affordable homes right across the country. It is important that we are delivering that, and we will continue to do so.

[Baroness Manzoor (Con)]

My Lords, what are the Government doing in relation to SMEs working in the housing sector, particularly given inflation and rising finance costs?

[Baroness Scott of Bybrook (Con)]

The Government have a number of schemes that we are using to support small and medium-sized house builders to help them to provide not only social housing but also private housing. I am happy to write to my noble friend with all that information.

[Lord Best (CB)]

My Lords, the Affordable Housing Commission, which I had the honour of chairing, has recommended a national fund to enable social housing landlords to acquire and modernise the properties of those private landlords who now want to exit from the market. Does the Minister agree that that would produce an enormously good bang for the buck? Not only would we swiftly get more social housing that was secure for those who lived in it, but we would see the modernisation of properties that need to be decarbonised, thereby reducing fuel poverty at the same time.

[Baroness Scott of Bybrook (Con)]

Yes, I agree with that. We are seeing some difficulties within the private rented sector because of the issues of the maintenance of these private properties, but also because of the expectations, as the noble Lord said, about the decarbonisation of those properties. That is why we are offering a number of funding streams to SMEs at the moment in order to do that.

[Baroness Thornhill (LD)]

My Lords, given the Minister’s earlier answer to the noble Lord, Lord Young, will she concede that the Government’s refusal to unfreeze housing benefit and raise the local housing allowance is ignoring a rental crisis that is already unfolding, particularly in the private rented sector, and that consequently this winter homelessness and evictions will increase? Have the Government done an impact assessment of that decision? More importantly, will they now consider a temporary ban on no-fault evictions, as happened during the pandemic?

--- Later in debate ---

[Baroness Scott of Bybrook (Con)]

As I think I have answered at this Dispatch Box, we are looking at Section 21 evictions, and we will certainly bring forward the private renters Bill in this Parliament. As for doing more to help people, we have done a huge amount as a Government. In the Autumn Statement, the Chancellor offered £26 billion more in support for people across this country, added to the energy price guarantee that was already there. Then there is the council tax rebate. The result is that 8 million more vulnerable people will receive support of at least £1,200 this year. I do not know of an impact assessment regarding the HCA, but I will certainly find out if we have done one. Of course we will keep it under review; that is what we would continue to do at any time.

[Baroness Hayman of Ullock (Lab)]

My Lords, to follow up on the noble Baroness’s question, we have heard that hard-pressed tenants are facing rent increases and people are really worried about affording their homes, particularly this winter. The Minister has mentioned the renters reform Bill. It is really important that we see that soon, so can she say when we are actually going to see it?

[Baroness Scott of Bybrook (Con)]

I cannot say exactly when, but it remains the top priority for this Government, as I have mentioned many times before. We will bring forward that important legislation as soon as we can within this Parliament.

[Baroness Altmann (Con)]

My Lords, looking to the longer term, it is clear that there is a shortage of housing across the economy, particularly social housing. We have trillions invested in pension funds. Rather than the leveraged LDI products, would it not be sensible for the Government to facilitate and encourage more investment by pension funds in social housing, which can deliver a reliable income as well as benefiting the housing supply over the longer term?

[Baroness Scott of Bybrook (Con)]

My noble friend brings up a very interesting point. I have looked at that in the past from a local authority point of view. I will certainly take that point back and would like to talk to her more about it.

[Baroness Pinnock (LD)]

My Lords, leaseholders living in blocks that are under 11 metres are also at risk of losing their homes. They were excluded by the Building Safety Act from any grants for remediation for cladding and building safety works. The Minister has received from me a lot of emails from desperate leaseholders looking to the Government for support and help, to ensure that they do not have to fund the developers’ problems that were caused. They are at risk of losing their homes because of the high costs of cladding removal. Can the Minister now tell us what she and the Government intend to do to help these desperate leaseholders?

[Baroness Scott of Bybrook (Con)]

I am fully aware of the noble Baroness’s concerns about this issue. I have a large group of documents from her and am working my way through those with officials. I will come back to her to discuss it fully, as soon as I possibly can in the new year.