Social Housing (Regulation) Act 2023 (Consequential and Miscellaneous Amendments) Regulations 2024

Baroness Scott of Bybrook Excerpts

Thursday 14th March 2024 Lords Chamber

Moved by

[Baroness Scott of Bybrook]

That the draft Regulations laid before the House on 18 January be approved. Considered in Grand Committee on 12 March.

Motion agreed.

Housing: Young People

Baroness Scott of Bybrook Excerpts

Thursday 14th March 2024 Lords Chamber

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

My Lords, I thank my noble friend Lord Young of Cookham for bringing forward this important debate, and also for the continued passion and knowledge that he gives to this House about the sector. I appreciate his challenge, as I am sure many others in the Chamber do. This is an important debate about the needs of young people within the overall housing market and I thank all other noble Lords who have spoken today for their considered and insightful contributions.

Throughout the debate, we have heard about the challenges the younger generation of this country face in achieving home ownership, and in accessing affordable housing to rent. Securing affordable, decent and stable homes is critical to ensuring young people can meet major life milestones, move for career opportunities, and start a family. The Government are committed to delivering the warm, safe, decent and affordable housing needed to support them through their life journeys.

Young people are part of a housing market significantly different from the one experienced by previous generations. Children of home owners are over twice as likely to be home owners than children of renters—an issue raised by the noble Baronesses, Lady Donaghy and Lady Thornhill. The dependence on the bank of mum and dad, as mentioned by my noble friend Lord Attlee, to afford a home shows the difficulties in accessing the housing ladder. This is reflected in how the historic home ownership rate for those aged 25 to 34 has fallen from 51% in 1989 to 28% in 2019.

The Government have worked hard to reverse these historic trends with our long-term housing strategy. We have made huge strides since 2010 to increase home ownership, provide stability and security for those renting, and improve the quality of houses young adults own and rent. This will ultimately improve their life outcomes and quality of life. The hundreds of thousands of new homes we are delivering will create the homes young people need now and in the future. I am proud of the progress this Government have made to deliver on these priorities, but we cannot stop. We will therefore continue to press ahead in meeting these challenges.

First, almost all noble Lords brought up the planning system. We have built more homes in places young people want to live, and at prices that they can afford. Since 2010, over 2.5 million additional homes have been delivered, and the four highest rates of additional housing supply in over 30 years have all come since 2018. Increasing housing supply is at the heart of solving our housing challenges; crucial to that is reforming our planning system. Not only must we have enough homes in the right places, we must also have homes suitable for those with a range of needs, including those with disabilities and special care needs, and the vulnerable.

My noble friends Lord Young of Cookham, Lord Jackson of Peterborough and Lord Attlee raised important questions about how we are unblocking the planning system to deliver the houses that we need in the places where we need them. Building on our work since 2010, in December 2023 the Government revised the National Planning Policy Framework in response to the Levelling-up and Regeneration Act. The framework sets out the Government’s planning policies for England and how we expect them to be applied. While the Government’s standard method for assessing local housing need is used to assess the total number of homes needed in a local area, the framework makes it clear that local authorities should assess the size, type and tenure of housing needed for different groups, including young people, young people with disabilities, care leavers and students.

Government housing targets have not changed. We remain committed to our ambition to deliver 300,000 homes a year. The Secretary of State’s Written Ministerial Statement of 6 December 2022 confirmed that the standard method for assessing local housing need will be retained. The Government have made it clear that every local authority is expected to progress their local plans. If sufficient progress is not made, the Secretary of State will consider using his powers of intervention to ensure that plans are put in place. We also recently consulted on proposals to implement reforms to plan-making processes to ensure that plans are prepared in 30 months. The reason for that is that we know that local authorities that have up-to-date local plans deliver more houses.

The Government have in place a strong programme of support to upskill the capacity and capability of local planning authorities, as raised by my noble friend Lord Jackson of Peterborough. This includes a £13.5 million “planning super-squad” of leading planners and other experts that will deploy teams of specialists into planning authorities to accelerate development and a £29 million planning skills development delivery fund to help planning authorities deal with the backlog of planning applications ahead of the forthcoming changes to the planning system through the Levelling-up and Regeneration Act. To ensure that local authorities are doing everything they can to build the homes that are needed, in February this year the Secretary of State set out clear expectations for every council in England to prioritise building on brownfield developments —a key point raised by my noble friend Lord Jackson.

However, it is not enough just to build more houses. The Government are committed to ensuring that the planning system creates more beautiful and sustainable buildings and places everywhere, as raised by the noble Lord, Lord Best. The duty introduced through the Levelling-up and Regeneration Act for all local councils to produce a design code at the spatial scale of their authority area will give design codes significant weight when planning applications are determined, and the establishment of the Office for Place will support the creation of healthy, beautiful places. This Government will not compromise on quality and beauty.

Turning to housing supply, an area raised by the noble Lord, Lord Best, with regard to the 300,000 target, I recognise the significant challenges faced by the housebuilding sector in the current economic climate. The Government continue to prioritise support to the industry and local areas as part of our commitment to deliver 1 million new homes over the lifetime of this Parliament, which we are on track to deliver. This is critical in ensuring that housing across that the market is affordable—a crucial topic raised by the noble Baroness, Lady Thornhill. We are investing billions to support housebuilding and achieve that commitment, including through our £1 billion brownfield, infrastructure and land fund, and to manage different drivers of demand, such as migration—an important area raised by my noble friend Lord Lilley. Our £1.2 billion local authority housing fund is providing capital funding directly to councils. It will provide capital funding to local authorities to obtain better-quality temporary accommodation for those owed homelessness duty and to provide safe and suitable homes for those on the Afghan resettlement schemes—an extremely important point noted by the noble Baroness, Lady Valentine.

As my noble friend Lord Jackson mentioned, ensuring that we are facilitating institutional investment in housebuilding in this country is of paramount importance. The £1.5 billion Levelling Up Home Building Fund leverages institutional investment from both private capital and pensions to achieve our ambitions.

My noble friend Lord Jackson and the noble Lord, Lord Best, raised the recent Competition and Markets Authority report on housebuilding. I welcome the report. The Government will carefully consider the findings and the recommendation to formally respond to it within 90 days of publication.

I want to note where we have made substantial progress through our delivery of affordable homes, an issue raised by the noble Lord, Lord Best, in particular. Since 2010 we have delivered almost 700,000 new affordable homes, making it easier for young people to access the housing ladder. We have scaled up the delivery of affordable housing by investing £11.5 billion through the affordable homes programme, working ambitiously towards meeting our target of a quarter of a million new affordable homes.

At the same time, we have taken steps to reduce demand competition. Although the expansion of the short-term lets market has brought a range of benefits, as mentioned by the noble Baroness, Lady Donaghy, we want to ensure that housing continues to be affordable. That is why the Government have announced a mandatory national short-term lets registration scheme to provide valuable information to local authorities in supporting the application and enforcement of planning changes. The Government also introduced higher rates of stamp duty land tax in April 2016 for those purchasing additional properties.

The noble Lord, Lord Best, raised the issue of the Church of England’s report Coming Home, which argued that an ambitious approach is needed to solve the housing challenges facing this country. As he said, it was debated in detail on 24 February, when the Government set out the comprehensive long-term housing strategy in responding to those challenges.

Turning to home ownership, the Government have a robust programme of interventions. My noble friend Lord Young, the noble Lord, Lord Best, and the noble Baroness, Lady Donaghy, raised the important question of how we are making it easier for young people to buy their own home. One key programme to note, shared ownership, is a unique scheme targeted at first-time buyers. It allows young people to purchase a share of a home through a mortgage while paying rent at below-market value on the rest of the home. Over time, young people can buy more shares, until they have bought the home in its entirety. I have seen many schemes like this and how pleased young people, particularly young families, are when they feel they are getting towards owning that home of their own.

[Baroness Taylor of Stevenage (Lab)]

Many young people who have gone into those schemes are now having incredibly high service charges imposed on them, and we need to come back to that issue when we look at the Leasehold and Freehold Reform Bill. In a case I saw today, the charge had gone up from £94 a month to over £600, and as a result that young couple cannot sell the property or afford to live in it. The colloquial term for this is “fleecehold”. We need to think very carefully about those schemes.

[Baroness Scott of Bybrook (Con)]

The noble Baroness is right, and I have heard similar stories. That is why we have the leaseholder Bill coming through, which we will be debating in just a few weeks’ time.

In 2022-23, of those reported to my department, an estimated 77% of shared ownership purchases were made by first-time buyers and 33% of those purchases were made by buyers under the age of 30—a testament to the effectiveness of the action of this Government. Furthermore, our First Homes scheme offers first-time buyers under the age of 40 a minimum 30% discount on the price of an eligible new home, helping the younger generation get a foothold on the property ladder. The noble Baroness, Lady Donaghy, asked for further detail on what the programme has delivered. I have only the top line, which is that there were 1,250 completions through the First Homes early delivery programme to the end of September 2023. If the noble Baroness wants more detail, she is welcome to come and ask me.

Through our lifetime ISA scheme, we have helped more than 56,000 account holders to become first-time buyers. More recently, we have recognised and responded to the challenging market conditions for lenders and buyers alike through the introduction of the mortgage guarantee scheme. This supports participating lenders to continue providing 5% deposit mortgages. We have extended this until June 2025 so that we can continue providing this vital support.

My noble friend Lord Young raised the question of stamp duty, land tax and cutting capital gains tax when landlords sell to sitting tenants. The Government have already taken action by cutting stamp duty during the pandemic, up to March 2025. This is reducing the financial burden on first-time buyers across the country, but particularly in and around London and the south-east, where these pressures are felt most acutely. On cutting capital gains tax for landlords’ sales to sitting tenants, this is not a policy the Government are currently considering. Taxation is a matter for the Chancellor and any decisions he takes on tax are considered, obviously, in the context of the wider public finances.

On the work of government on preventing homelessness and rough sleeping, as raised by the noble Baronesses, Lady Thornhill and Lady Valentine, I want to set out the measures we have prioritised to prevent vulnerable people—young people particularly—such as care leavers ending up homeless. In 2022 we published our cross-government strategy Ending Rough Sleeping for Good, which recognised that young people face particular challenges accessing and maintaining accommodation.

For young people with disabilities, my department, alongside the Department for Health and Social Care and the NHS, provides capital grant funding to subsidise the delivery of a new supply of supported housing, including for disabled people. Young people with disabilities who satisfy needs-assessment eligibility criteria and a means test benefit from a wider statutory duty to provide home adaptions. There are powers to provide adaptions for those who do not qualify under that duty. Under this Government, the disabled facilities grant has risen from £220 million in 2015-16 to £625 million in 2024-25—a more than doubling of the grant. This has been well received by disabled people.

When young people do find themselves homeless or at risk of homelessness, within the next 56 days they are owed a homelessness duty by their local authority. Our single homelessness accommodation programme will deliver over 650 homes and support services for young people in this situation. This is in addition to other support, including the £109 million top-up to the homelessness prevention grant for councils and an initial £6 million for rough sleeping winter pressures.

Many of our young people want to be free to move to places where they can connect their talents with economic opportunities before choosing to settle down. This is where the private sector steps in. Increasing security and quality in the private rented sector requires ambitious reforms and the Government have stepped up to deliver. We have introduced the Renters (Reform) Bill, which will support tenants with a raft of measures, including applying the decent homes standard to the private rented sector for the first time and abolishing Section 21 evictions. The Bill is awaiting Report in the other place, which is subject to parliamentary scheduling, and it will be announced in the usual course of business management. I say to the noble Baroness, Lady Thornhill, that the proportion of private rented sector households has remained relatively stable for nearly a decade, and the number of renters has doubled since 2004.

For those in the social rented sector, we have enshrined in law, through the Social Housing (Regulation) Act, a rebalancing of the relationship between landlord and tenant. We are ensuring that landlords are held to account for their performance—an important step in improving the quality of houses across the market, which was an issue raised by the noble Baroness, Lady Valentine. We are creating a housing market fit for the future.

The Leasehold and Freehold Reform Bill will reform the outdated leasehold system in this country. From 2025, the future homes standard will future-proof our homes, ensuring that new homes produce at least 75% less CO emissions than those built to previous standards. We know that making long-term changes takes time to deliver, and the Government are doing all they can against a challenging economic background to ensure that the younger generation can access affordable, safe and high-quality housing.

Following the £188 million allocation to the housing projects in Sheffield, Blackpool and Liverpool at the Convention of the North on 1 March, last week’s Spring Budget allocated over £240 million to housing projects in London, an area where affordability is challenging, particularly for young people, as we have heard today.

The noble Lord, Lord Best, my noble friend Lord Young of Cookham and others brought up intergenerational housing. I totally agree with them that we need better older people’s housing and more choice for older people because, if we give them better housing and more choice, we can start to move the housing stock around. Some local authorities are doing that really well, but more can be done. The Government’s independent older people’s housing task force is looking at housing for older people, and it will make its final recommendations to Ministers this summer.

I hope I have answered as much as I can—

[Lord Jackson of Peterborough (Con)]

There is consensus across the House, among Members of all parties and none, that we should reinstate the local housing targets. Nevertheless, 65 local planning authorities have frozen their local plans. Is my noble friend in a position to explain or tell the House when the Secretary of State is likely to invoke his statutory powers to force those local planning authorities to come up with local plans?

[Baroness Scott of Bybrook (Con)]

I cannot say when he will do that; all I can say is that the Act is now in statute. The NPPF is now being updated, so we will encourage and support those local authorities to get the local plans in place as soon as possible.

I am being told I have run out of time, so, in conclusion, we fully recognise the unique housing needs of young people and the importance of homes to their lives. The Government are absolutely committed to ensuring those needs are met, whether that be through home ownership, the private rented sector or social housing. This debate has served as a valuable reminder of the critical responsibility we share in supporting the next generation and making sure that the housing market works for all. I once again thank my noble friend Lord Young of Cookham for bringing forward this debate and all noble Lords for their contributions today. I look forward to continuing discussions and working with noble Lords on issues relating to the housing needs of not just our younger generation but the whole of our communities.

Social Housing (Regulation) Act 2023 (Consequential and Miscellaneous Amendments) Regulations 2024

Baroness Scott of Bybrook Excerpts

Tuesday 12th March 2024 Grand Committee

Moved by

[Baroness Scott of Bybrook]

That the Grand Committee do consider the Social Housing (Regulation) Act 2023 (Consequential and Miscellaneous Amendments) Regulations 2024.

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

My Lords, this draft instrument makes technical, consequential and miscellaneous amendments to primary and secondary legislation following the passage of the Social Housing (Regulation) Act 2023.

For far too long, too many tenants have not received the quality homes and services they need and deserve. Social housing tenants deserve decent homes and to be treated with fairness and respect by their landlords. Where they experience problems, these should be resolved quickly. Where they have complaints, these must be listened to. On too many occasions, this has not happened, and we know that getting this wrong can, sadly, lead to tragic consequences. We cannot forget the Grenfell Tower tragedy, nor the tragic death of two year-old Awaab Ishak from prolonged exposure to damp and mould that was left untreated. These events were the catalyst for change.

The passage of the Social Housing (Regulation) Act was a landmark moment for the social housing sector. The Act facilitates the biggest change to the regulation of social housing in a decade, paving the way for the introduction of a new proactive consumer regulation regime. The proactive regime will drive up standards in social housing, with regular inspections of large landlords, new tenant satisfaction measures and stronger enforcement powers for the regulator to take action when things go wrong.

During the passage of the now Act, we made a number of major amendments, and I am thankful for the constructive input from noble Lords and the other place. A key addition was the introduction of Awaab’s law. This will help to ensure that hazards in social housing are assessed and then repaired within set timescales. The Act facilitates the introduction of new competence and conduct standards that will professionalise the sector to improve the quality of service that tenants receive. The 2023 Act also made a number of changes to strengthen the existing economic regulation regime.

To ensure that existing legislation remains accurate following the passage of the 2023 Act, the regulations contained in this instrument make several consequential amendments to relevant primary and secondary legislation. Part 1 of Schedule 1 makes consequential amendments to the Housing and Regeneration Act 2008, which are necessary in response to the provisions set out in the 2023 Act. Such changes include amendments that reflect the change to when a housing moratorium starts and the addition of new entries in the index of defined terms in the 2008 Act which signpost definitions added or amended by the recent Act.

Part 2 of Schedule 1 makes consequential amendments to other relevant legislation, including the Housing and Planning Act 2016. These changes are a consequence of provisions in the 2023 Act which make changes relating to moratoriums in the event of an insolvency, the definition of whether a registered provider is “non-profit” and what constitutes an “English body” for the purposes of who can be registered.

Part 3 of Schedule 1 makes consequential amendments to the Social Housing Rents (Exceptions and Miscellaneous Provisions) Regulations 2016 in consequence of a change made by the 2023 Act. This change relates to the definition of “community land trust”, which has been inserted into the Leasehold Reform (Ground Rent) Act 2022 by the 2023 Act.

Lastly, the regulations make two miscellaneous adjustments which correct minor errors in statute. The first removes a redundant reference to a section in the 2008 Act which was later repealed by the Housing and Planning Act 2016. The second amends a provision inserted by an SI; this change is intended to ensure consistency across the two pieces of legislation.

Although the changes I have outlined are of minor significance in themselves, they are required to ensure accuracy and consistency across the statute book following the changes made by the 2023 Act. I commend these draft regulations to the Committee.

--- Later in debate ---

[Baroness Thornhill (LD)]

My Lords, as the Minister knows, this Act has been well received by all sectors concerned with social housing, and it is supported on our Benches. As she said, this is due largely to the Grenfell tragedy, but also to subsequent high-profile failures of social housing, including the tragic death of young Awaab Ishak. Let us not forget the recent deaths in temporary accommodation, which are truly shocking.

We know that the devil will always be in the detail, and we all hope that the rhetoric accompanying the Act will live up to the reality. The Minister is clearly aware that there have been several consultations since last July, when the Bill was passed, and issues have emerged, which the sector is rightly bringing to the Government’s attention in this process. It appears that the full and cumulative impact of the new changes thus far has been evidentially to expose the wide variation in the quality of provision of social housing by registered providers and councils. This was recently outlined very robustly by the deputy social housing regulator. Is the Minister confident that the new approach to inspections and the C categorisation will allow for a nuanced approach to allow those lagging behind to learn from the best and hopefully catch up, or will it be an adversarial system—a weeding out of the worst? In short, what will the approach to inspections be? I know from experience of Ofsted in schools and the CPA in local government that they can vary.

It is no surprise that there are concerns about the additional costs associated with all the changes, which I am sure the Minister will be aware of. What is in place to ensure that landlords can make progress without financially falling over, as we are seeing with some local authorities? Regrettably, we are already hearing that they are cutting back on development plans to focus on the detail of the new regime, which itself is a separate concern due to the considerable shortage of social housing. I echo the comments of the noble Baroness, Lady Taylor, with which I wholeheartedly agree. In fact, I add that I found that announcement bitterly disappointing because I believed that this Government had genuinely shaped the agenda towards a real understanding that social housing was one of the first bricks we needed to get in place to unblock the logjam and the housing crisis.

Does the Minister accept that there is also a recruitment and retention problem, highlighted and exacerbated by the professionalisation of housing management and maintenance? That is a good aspect of the Act and had cross-party support, but not surprisingly it is having an impact, as some people are jumping before being pushed—probably a good thing in some cases, I am not afraid to say, having had to do the pushing sometimes—or feel that perhaps now is the time to retire rather than go back to the classroom, but it is a very real and relevant issue.

The speed and breadth of the changes cause me to ask how confident the Government are that the sector can and will have the capacity to cope with these genuine changes.

Briefly, on the Awaab’s law changes, I thank the Minister for her detailed letter in response to my question in the Chamber and her generous offer of her time. On a tangential issue, the consultation that has just closed proposed an extension to hazards beyond mould, damp and condensation to include the 29 hazards in the—this is a bit of a mouthful—housing health and safety rating system. This has caused considerable disquiet for the National Housing Federation and the Chartered Institute of Housing, to name but two. They have given convincing reasons why this extension should be reconsidered. Does the Minister agree that it is probably best to see how the sector copes with mould and damp before extending the hazards further?

It seems that there is still much to do to clarify these changes, particularly around the regulator’s use of powers and the approach to inspections. Further clarity is needed on how the regulator will interact with other sector regulators, such as the building safety regulator and the Housing Ombudsman. This will take some getting used to. Such clarification is particularly important for tenants, who will also have an important role to play. In fact, the Act enshrines in law their rights to have a safe and decent home, to make their voices heard and to influence policy so that tenants can shape the homes they live in and the services they receive. I have a pertinent, but perhaps tricky, question. Does the Minister feel that the residents panel—I notice that it is currently recruiting new members, so the current one has not been in action for very long—is a strong, independent and influential voice for tenants or just a sounding board?

Lastly, I look forward to the day when private sector landlords are also subject to the same regime because it is long overdue and much needed.

[Baroness Scott of Bybrook (Con)]

I thank the noble Baronesses opposite for their support, not only today but when we were taking the Bill through, and their challenge on what could be made better. We took some of those things on board.

The noble Baronesses, Lady Thornhill and Lady Taylor of Stevenage, brought up the pressures on the sector. We totally understand them, which is why we work closely with the sector, but my view is that it is the sector’s responsibility. It is the sector’s stock. It needs to keep that stock up and its tenants deserve the very best. So, we will support the sector, but we will not stop challenging it to ensure that social housing tenants live in safe, good accommodation. That is what has come from the Secretary of State right the way through this process.

On right to buy, all I can say is that there were many pressures on the Budget this year. The percentage did not get extended but, again, we are working with the sector to see how we can make the building of more social houses, particularly by local authorities, affordable into the future. I think that noble Lords will hear more on that.

Moving on to the noble Baroness, Lady Thornhill, am I confident in the approach to inspections and learning from the best? I think learning from the best is the important thing and, yes, I am confident. I talk regularly to the social housing regulator, and it gets it and understands its role. I do not think it will go in heavy to begin with; it will allow the sector to begin to understand this important new regime. However, I think it is important that it can go in quickly if it thinks there is a particular issue to deal with and that it will do regular inspections throughout the sector in future. We will weed out the worst providers, but it is also a matter of helping them to improve and learn from the rest of the sector.

I understand the pressures on the sector, particularly for building new houses, as it has quite rightly had to put more money into making sure that the stock it has is of good quality, so there is possibly less money left for building more houses, but we have a fund of more than £11 million to do that. Housing providers are looking to use that fund continually, and we are supporting them to do that.

Recruitment and retention is out for consultation. We will listen to the sector. This was extremely important to members of the Grenfell community, in particular. They felt that their housing officers were sometimes as important as people working in social care in the council. We listened, and we found a way through that one. We also need to listen to the sector and the regulator as we move forward about the timeliness of implementing this. It is not going to be done overnight, so we will work with the sector after the consultation and listen to what it is saying on that one.

It is the same with Awaab’s law, although I am very passionate about getting Awaab’s law in place as soon as possible. I probably agree with the noble Baroness that perhaps we should start with the timings on damp and mould; that may be something we can look into further. We have only just finished that consultation. I have not seen the responses yet, so I do not want to pre-empt what will come out of that, but we will look, listen and do what we can to get that important part of the Act in place as soon as possible.

The noble Baroness also brought up the interaction between the Housing Ombudsman, the building safety regulator and the social housing regulator. In the department, I have talked many times with officials about the communication on this because it is a new regime; we want it to work and to work well for the tenants concerned. I think noble Lords will see a lot more communications with tenants about who to go to. Of course, if they have a problem, they should first go to their housing provider. We want to make sure that they do that and, if it is an individual case, go to the ombudsman, and then to the building safety regulator which will be working very closely with the ombudsman to make sure that it is picking up any themes coming out from a particular provider or group of providers. That is the way it will work, but communication to the tenants about this regime is important.

Finally, I turn to the residents’ panel. I have been to the residents’ panel, and I do not think that it is a talking shop at all. It is quite challenging. That is why we are extending them for a further year beyond just one year. What the panel says is very important not just for us as a department but for our partners, including the social housing regulator, the ombudsman and the building safety regulator. It is important to listen to the panel; it certainly tells us what it thinks.

I think that I have covered everything; I will check and, if I have not, I will write as usual. To conclude, these changes will ensure that the statute book remains accurate following the passage of the 2023 Act. This is just a small part of our wider mission to drive up the quality of social housing and ensure that all tenants are treated with fairness and respect.

Motion agreed.

Domestic Violence Refuges: Charities and Local Government

Baroness Scott of Bybrook Excerpts

Monday 4th March 2024 Lords Chamber

[Baroness Donaghy]

To ask His Majesty’s Government what support they give to charities and local government to provide places of safety for women subject to domestic violence.

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

The Government are committed to ensuring that all victims receive the support they need when they when they need it. Councils in England have a duty to provide support within safe accommodation to victims and their children under the Domestic Abuse Act 2021. Since April 2021, the Government have provided more than £507 million to councils across the country, including £129.7 million for the years 2024-25. This will enable long-term commissioning decisions and give certainty to local providers such as specialist domestic abuse refuges.

[Baroness Donaghy (Lab)]

I thank the Minister for her Answer. Noble Lords may have read an article in the weekend’s press about Kate Kniveton MP, formerly a wife of a former Minister. She has experienced domestic violence, and her words cut across a lot of the debate:

“After years of manipulation and denigration, you lose your self-worth and don’t think anyone will ever believe you”.


I mention that because this issue is without class: a lot of people do not have a choice about staying at home and within the danger area. Local government is financially on its knees, and the majority of charities turn away references. What will the Government do to improve this dire situation?

[Baroness Scott of Bybrook (Con)]

My Lords, the Government are supporting local authorities on this issue and they have given the money required, as I said. Yes, it is not good enough, so we have set up a national expert steering group, which is co-chaired by my colleague, Felicity Buchan, and the Domestic Abuse Commissioner. They will closely monitor this and have agreed a protocol to support further local authorities in meeting their duty of requirement. So, we are on the case.

[Lord Laming (CB)]

Can the Minister make sure that that steering group gives particular attention to the children who accompany these unfortunate women? For a child to be brought up in a home where there is domestic violence is a dreadful start to life. Can special thought be given to their needs?

--- Later in debate ---

[Baroness Scott of Bybrook (Con)]

The noble Lord is absolutely right. I remember that, many years ago when I was in local government, children used to sit in the corner and nobody took any notice of them. Those things have changed. Of course, some victims of domestic abuse are children, in addition to the females—or males, depending on who is being abused.

[Lord Porter of Spalding (Con)]

I draw the House’s attention to my entry in the register of interests. Does my noble friend agree that local government needs not so much a duty as praise for what it does? Most councillors across the country take this issue very seriously: it is not something they need to be compelled to do, but something they choose to do. If we are really going to tackle this scourge, we need other parts of government to treat it as seriously as local government does. Such offenders should be dealt with much more heavily, not by the local government team but by people in 2 Marsham Street.

[Baroness Scott of Bybrook (Con)]

My noble friend is absolutely right, and I thank all local authorities for everything they do. Interestingly, nearly 75% of local authorities say that they are spending more and doing much more than they did a few years ago in this regard. That is great, and I thank them for what they are doing. Yes, we should be supporting them and not always knocking them.

[Baroness Burt of Solihull (LD)]

My Lords, four out of 10 local authorities are facing bankruptcy within the next five years and, as the noble Baroness, Lady Donaghy, said, even statutory services, including the provision of refuges, are already being cut to the bone, despite increasing demand. Women’s Aid research found that 61% of applicants for accommodation-based refuge are being turned away. Does the Minister agree that this failure to meet increasing demand now will not only put women’s lives at risk but leave public services with even more problems to deal with down the line?

[Baroness Scott of Bybrook (Con)]

My Lords, in the last couple of months we have given £600 million extra to local authorities because we understand the pressures they are under. We are keeping an eye on those pressures, and we encourage all local authorities which have difficulties with their budgets to talk to us early on, so that we can work with them. Local authority budgets have been increased by 7.5% this year, and as my noble friend said, local authorities prioritise domestic abuse victims in their budgeting.

[Baroness Taylor of Stevenage (Lab)]

My Lords, I declare my interest as a founder and patron of Survivors Against Domestic Abuse. Last Thursday, my honourable friend Jess Phillips read out in the other place—as she does every year—the names of 98 women killed as a result of violence over the last year: a heartbreaking tribute to lives broken and lost to violence. After every case of domestic homicide, we are told that lessons will be learned. Does the Minister agree that providing safe spaces to live for women who flee violence—a project we started in Stevenage, and which now provides 35 homes across Hertfordshire—is vital? However, it is in serious danger of being stopped because such local authority spending is discretionary. Will she meet with me to hear more about this work?

[Baroness Scott of Bybrook (Con)]

I would be more than happy to meet the noble Baroness to learn about that, and I thank her for everything she is doing in her county. As recently as this weekend, we heard so much about violence against women. The Home Office is taking this issue extremely seriously and a large amount of money is going into extra police training, particularly on tackling domestic abuse. Some £3.3 million has been committed over the next three years to support delivery of Domestic Abuse Matters training to police officers. Let us hope that this changes things.

[Baroness Armstrong of Hill Top (Lab)]

My Lords, as the Minister says, there is currently no sign of domestic abuse being overcome and things changing, and recent reviews of serious cases are really quite scary. This is not just about local authorities, which are doing a good job but are cash strapped, but charities. A number of seriously good and important charities in this arena have nearly or actually gone bust. Action against Violence and Abuse, a major charity that worked with women who had experienced violence and abuse, and which supported them in a range of ways, went out of business last month for no other reason than it could not raise sufficient funds. Will the Minster discuss this issue with other Ministers? The situation is now very serious: such charities cannot be funded to continue their work, and that will have serious consequences for the women involved.

[Baroness Scott of Bybrook (Con)]

The charitable sector is a really important partner in this. That has been noted in the amount of money given to police and crime commissioners to tackle this issue, part of which is spent with charities, other stakeholders and community groups. This Government have supported charities through this very difficult crisis, in particular with energy costs. We are totally committed to supporting the charitable sector on not only this issue but others, and we will do everything we can to do so because it is an important part of delivery.

[Baroness Butler-Sloss (CB)]

My Lords, I declare an interest as chairman of the Commission on Forced Marriage. Will the Minister please remember that forced marriage is also domestic violence in many cases?

[Baroness Scott of Bybrook (Con)]

I absolutely accept that. We need to keep that in mind when we look at domestic violence.

[Baroness Morgan of Cotes (Con)]

My Lords, one of the places where abusers encounter their victims is the online world. Does my noble friend agree that it is important that her department considers funding for charities offering online support to victims, including the excellent Revenge Porn Helpline?

--- Later in debate ---

[Baroness Scott of Bybrook (Con)]

My Lords, we always need to consider the way in which the world is moving forward. Abuse moves with it, so we must keep considering the online world as technology and people’s lives change.

Housebuilding

Baroness Scott of Bybrook Excerpts

Wednesday 28th February 2024 Lords Chamber

[Lord Young of Cookham]

To ask His Majesty’s Government what is their response to the final report of the Competition and Markets Authority’s housebuilding market study, published on 26 February.

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

We welcome the CMA’s final report, following its full market study into housebuilding. In 2022, the Secretary of State wrote to the CMA, supporting the suggestion of a full market study, the first since 2008. The Government will now take away and carefully consider these findings and recommendations, and formally respond within 90 days. The CMA’s recommendations can help industry, the Government and regulators to make sure that the market is operating effectively, and working well for consumers.

[Lord Young of Cookham (Con)]

I appreciate that the report was published only two days ago, but it was published after the Government made significant changes to housing and planning policy. On those changes, the CMA report is very clear. It says that “significant interventions” and “further actions” are required by government if we are to address what it describes as the “complex and unpredictable” planning system, with its underresourced planning departments. The report also makes it clear that local authorities should have clear housing targets if we are to meet the demand in housing that we have just heard about. Will the Government be looking very sympathetically at these recommendations?

[Baroness Scott of Bybrook (Con)]

As I have said, we will carefully consider all the recommendations and findings from the report. Our National Planning Policy Framework means that councils must have local plans in place to deliver more homes in the right places and of the right type that are required in that particular community. As part of the recent consultation on changes to the National Planning Policy Framework, we have committed to review our approach to assessing housing need, once the new housing projections data based on the 2021 census is released next year.

[Lord Best (CB)]

My Lords, the excellent report from the Competition and Markets Authority shows why depending on a small handful of volume housebuilders does not produce either the quantity or the quality of homes that we need. Has the Minister thought about taking off the shelf the Oliver Letwin report, which is quoted in the CMA report very favourably? It calls for development corporations with master plans and compulsory purchase powers which could take the place of some of these volume housebuilders and get what we actually deserve.

[Baroness Scott of Bybrook (Con)]

The noble Lord has some interesting ideas in this area, particularly about the large housebuilders, which seem to have controlled the market. That is why we are putting a lot of support into small and medium-sized housebuilders. As for the Oliver Letwin report, we will look at everything once we have got this report and when we start to work on it, and we will be bringing out further information in due course.

[Lord Moylan (Con)]

My Lords, is my noble friend aware that your Lordships’ Built Environment Select Committee has repeatedly found that the cost and arduousness of the planning system is a deterrent to development, particularly for small housebuilders, who have fallen from producing 40% of our homes 20 years ago to merely 10% today? Will she consider the possibility of alleviating the burden of the planning system, particularly for smaller sites, so as to make it possible for smaller housebuilders to survive and thrive?

[Baroness Scott of Bybrook (Con)]

As I have said previously, SMEs play a critical role in housebuilding and in the housing market in this country. Through the Levelling-up and Regeneration Act, we have made changes to the planning system that will support SMEs to build more homes by making the planning process easier to navigate, faster and more predictable. The Government have recently announced policies that will support SME housebuilders, including an expansion of the ENABLE Build guarantee scheme, Homes England’s pilots of SME-only land sales and updating the community infrastructure levy guidance. So we are in the same place as my noble friend and we will be working with this sector very closely in the future.

[Baroness Taylor of Stevenage (Lab)]

My Lords, there is a specific recommendation in the excellent CMA report regarding targets:

“More objective and effective use of targets to ensure housing need is met”


are needed. With the Government caving in to pressure from Back-Benchers in the other place and scrapping housing targets, and the developers putting profit before people’s homes, will the Government now reinstate those housing targets and make a long-term plan to deliver the homes we need, preferably in the new “new towns” that the Labour Party is promoting?

[Baroness Scott of Bybrook (Con)]

My Lords, let me make it clear that we have delivered 2.5 million extra homes in the last 14 years. Since 2018, we have also delivered the four highest annual building numbers for 30 years, and we are on target for 1 million more homes in this Parliament. We are delivering, but we have been through an economic crisis. We are coming out of it, and we will start to build more homes in the future.

[Baroness Thornhill (LD)]

My Lords, the report highlights the now widespread practice by local authorities of the non-adoption of public amenities, such as roads and playgrounds, on all new-build estates. Does the Minister accept that councils have been pushed down this road by significant cuts to their budgets over many years? More importantly, what steps are the Government taking to reverse that trend, which has resulted in an explosion of unregulated management companies ripping off residents who are, in effect, paying twice for public facilities usually provided via council tax?

[Baroness Scott of Bybrook (Con)]

The noble Baroness is right and, like me, she understands this system. Since about 2015, there have been more councils that are not taking control. I believe that that is about council priorities and not about money, because not all of them have. It is up to the developers and the local planning authority to agree the appropriate funding, delivery and maintenance arrangements for these public areas. That is why, through the Leasehold and Freehold Reform Bill, we are taking firm action to ensure that estate management companies are more accountable to their freeholders for how their money is spent.

[Lord Lansley (Con)]

My Lords, my noble friend the Minister will have observed that the CMA noted what it said was an increase in the number of snags of a serious kind that new-home buyers are encountering. In paragraph 5.123, it makes a recommendation about how the New Homes Quality Board could be the mechanism by which the new homes ombudsman service and a mandatory code for home buyers and housebuilders could be brought forward more rapidly. I wonder whether my noble friend, in her examination of the report, will respond positively to that recommendation?

[Baroness Scott of Bybrook (Con)]

My noble friend brings up a very important point. The Government are already committed to improving redress for new-build home buyers when things go wrong. The Building Safety Act includes provision for the new homes ombudsman scheme to become statutory and to provide dispute resolution to determine complaints by buyers of new-build homes against their developers.

[Baroness Bennett of Manor Castle (GP)]

My Lords, the report notes that about

“60% of … houses built in 2021 to 2022 were … speculative private development”,

and acknowledges that this has widened

“the gap … between what the market will deliver and what communities need”.

Is it not the case that, to get the right home in the right place at the right price, we have to get away from this privatised model and—to address the issues the noble Lord, Lord Lansley, raised—get better quality?

[Baroness Scott of Bybrook (Con)]

That is exactly why the levelling-up Act made such an issue of every local authority having a local plan. That local—

[Baroness Bennett of Manor Castle (GP)]

Oh!

[Baroness Scott of Bybrook (Con)]

It is no good the noble Baroness shaking her head. If you are going to have a plan-led system, which is the simplest system to navigate, you need a local plan. You need to know how many houses you need in your area, what types of houses they are and the area of land that you are going to use for housing. If local authorities have local plans, they will deliver more houses in the right place and of the right type that this country needs.

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

My Lords, does the Minister agree with me that this excellent report highlights that we need to end leasehold once and for all. We have a Bill coming forward in a few weeks’ time—I can see it there in the Leader of the House’s hands—through which we could end leasehold once and for all at a date in the future and actually promote commonhold, which is what we need in this country.

[Baroness Scott of Bybrook (Con)]

My Lords, the House will be glad to hear that the leasehold Bill left the Commons yesterday and is now here—so I cannot wait to discuss it with the noble Lord opposite. I am sure that we will discuss all these things in great detail.

Non-Domestic Rating (Rates Retention: Miscellaneous Amendments) Regulations 2024

Baroness Scott of Bybrook Excerpts

Tuesday 27th February 2024 Grand Committee

Moved by

[Baroness Scott of Bybrook]

That the Grand Committee do consider the Non-Domestic Rating (Rates Retention: Miscellaneous Amendments) Regulations 2024.

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

My Lords, these regulations make changes to key elements of the business rates retention system by actioning policy decisions that have already been taken. The business rates retention system has been in operation for over 10 years. Through it, local authorities keep 50% of the business rates that are collected in their areas, subject to redistribution, with the other 50% being paid over to central government.

Under the system, if a local authority sees its business rates income fall significantly in a year, it can receive protection in the form of a safety net payment. The cost of making safety net payments is met within the system. This is done by levying a percentage of the business rates income of those local authorities whose business rates income has significantly increased.

Such arrangements under the system are governed according to the underlying legislative framework. Each year we make changes to this framework in response to the wider policy environment—for example, following a revaluation or adjustments to the tax. This instrument makes the necessary amendments and, while they are technical, the reasons for them are easily explainable.

Before I go into the details of the instrument, however, I will briefly address why it was withdrawn and re-laid. Unfortunately, following the initial laying of the instrument, there was a need to withdraw and re-lay it to correct a minor error made in its drafting. We did this to ensure that payments are made to councils on the right basis. After this, we were made aware of a risk of delay to the instrument’s progress through Parliament. This could have arisen if the JCSI had queried why we had left cells in a table blank, rather than explicitly setting values at zero. In anticipation of this, we re-laid the instrument with zeros in the schedule to provide greater clarity to the reader. This will ensure that we do not delay paying local authorities what they are expecting. This instrument is the resulting version and I am grateful to all parties for their consideration in making it possible.

I will now focus on the details of the instrument. Several sets of regulations set out the detailed rules which underpin the operation of the business rates retention system. This instrument makes changes to two of them. These are the Non-Domestic Rating (Rates Retention) and (Levy and Safety Net) Regulations.

The rates retention regulations provide for the core administration of the system and determine how payments are calculated and then made between local authorities, and between local authorities and central government. The levy and safety net regulations are more particular. They set out, in detail, the safety net and levy mechanisms that I have already mentioned.

I will now describe the reasons that amendments to the regulations are necessary, as well as what they entail. First, we must make changes in response to the 2023 business rates revaluation. As many noble Lords will be aware, revaluation is a key facet of the tax, allowing for changes in the market to flow through to the amounts paid by taxpayers. The reason we need to adjust for revaluations is to avoid abrupt increases or decreases in local authorities’ funding via the business rates retention system. This would otherwise result from the aggregated change in the amounts that local authorities collect from businesses.

The actions we are taking to neutralise the impact of the 2023 revaluation can be summarised as follows. First, we are adjusting top-up and tariff figures—the figures which redistribute income around the system. Secondly, we are adjusting the calculation of levy rates; to recalculate levy rates, we must also restate local authorities’ business rates baselines. These are the share of rates income we expect a local authority to have access to.

The year 2023 was somewhat busy for the business rates retention system. Not only did the revaluation take place, but also Royal Assent to the Non-Domestic Rating Act. I am sure that many noble Lords have fond memories of the debates during its passage through the House. As with most changes made to the workings of business rates as a tax, those made by the 2023 Act impact how the business rates retention system is administered.

The delinking of the small business and non-domestic rating multipliers has the biggest impact on the retention system. Currently, the non-domestic rating—standard—multiplier is equal to the small business multiplier plus a supplement figure. From April this will change as these multipliers are delinked. This means that the two multipliers can be changed independently of each other, and therefore at different rates.

The reason for the significant impact this has on the business rates retention system is because each year we have used the change in the value of the small business multiplier to adjust key figures within the system. Under a system of linked multipliers, the change in the small business multiplier represented the change in the tax rate for all properties. As multipliers will no longer be linked, we have had to identify a new way to uprate these figures. After consultation with local authorities and other stakeholders, we will do this using a new weighted average formula. This calculates uprating figures for each local authority based on the proportion of rateable value on each multiplier in that authority’s area. The instrument applies this new formula to the relevant figures in the regulations. These are top-up and tariff figures, baseline funding levels and the City of London offset.

I have already provided a quick description of what top-up and tariff figures are. For the sake of clarity, I will do the same now for baseline funding levels and the offset. Baseline funding levels are a measure of each local authority’s need. They are uprated each year to ensure that the safety net eligibility threshold, measured as a percentage of the baseline funding level, takes account of inflationary increases. The offset, meanwhile, is a small amount of business rates income outside the system that the City retains, in acknowledgement of its high daytime, but low resident, populations. Alongside delinking the multipliers, the Non-Domestic Rating Act also introduced new or amended existing reliefs for ratepayers—specifically, heat network relief and improvement relief, and doubling the rural relief from 50% to 100%.

Furthermore, we must take account of other tax measures that were not delivered through the 2023 Act —namely, the retail, hospitality and leisure relief for 2024-25, which was announced at Autumn Statement 2023, and the green plant and machinery exemption. The Government compensate local authorities for reliefs and exemptions. If they did not, they would unfairly cost local authorities as their income from business rates would fall. However, when calculating levy and safety net payments, it is essential that we recognise that local authorities have already been compensated for their losses due to the awarding of reliefs and exemptions. Otherwise, some local authorities may receive substantial increases in safety net payments despite already receiving compensation or may underpay the amount of levy on growth that they owe. This instrument makes sure that the appropriate compensation given to local authorities is included in levy and safety net calculations.

In continuation with the theme that 2023 was a year of change for the business rates retention system, the year also saw the Government transfer the power to grant certain types of relief from billing authorities to mayoral development corporations in Hartlepool and Middlesbrough, following a request from the Tees Valley mayor. Given that authorities receive a share of business rates income in their area, authorities could lose out from the relief awarded if the mayoral development corporation took up those powers. While we have already provided for billing authorities to be compensated, now we are extending the compensation to major precepting authorities.

Lastly, we are making a change to the levy and safety net calculations for the Greater London Authority. The share of income which we will use to calculate levy and safety net payments going forward for the authority is its 20% share. This is its share under the 50% rates retention system. Using its 20% share in this calculation brings it into line with other increased rates retention authorities.

To conclude, it would not be a mischaracterisation to describe these regulations as technical. Nevertheless, they pick up wider policy changes and, in doing so, make several important updates to the administration of the business rates retention system. It is very important that these changes are made to the system so that authorities retain the income from it that they are anticipating and on which they have budgeted. I commend these regulations to the Committee.

--- Later in debate ---

[Baroness Taylor of Stevenage (Lab)]

My Lords, I draw attention to my interests in the register as a vice-president of the Local Government Association and as a serving councillor on Stevenage Borough Council and Hertfordshire County Council. I thank the Minister for her introduction to this statutory instrument and I am very grateful for her explanation of the relaying of it, which was informative.

I suppose that this instrument is necessarily complex and technical in content, but, if we look through it, we see that in many ways it demonstrates exactly how far business rates—or non-domestic rates, as we have to call them—have got from their objectives. They are intended to ensure that businesses make a contribution to the communities that allow them to thrive, to link them with the people and public services of their local area. They should recognise the differentiation between small, start-up and local businesses and the multinational corporates, when in fact non-domestic rates sometimes penalise them in inverse proportion to their ability to pay. They should also ensure that areas wishing to improve, increase or regenerate economic activity are able to vary the business rates to incentivise according to local circumstances.

Looking through the pages of mathematical formulae and complex calculations in this SI, I say that it would not be surprising if any average business doing so felt that we had somewhat lost the plot. The complexities of the system do not really benefit most councils, either, although we appreciate the funding that comes from them. For example, my borough raises over £61 million in non-domestic rates but, after all these calculations and the turning of the Government’s sausage machine, we get around £4 million of that—in spite of having three of the most deprived wards in the country.

So we need to refocus business rates back on to what they were intended to do. That is why they are part of Labour’s plan to support the vast majority of businesses in this country that are SMEs. They employ 16.7 million people and boost our economy by £2.4 trillion; they breathe life into our high streets; they deliver services that make our life easier: and they provide the goods we need to thrive. While SMEs welcomed the support they got during Covid, many of them now feel neglected as they struggle to survive the cost of living crisis, the recession and the complexities of this business rates system, which can seem utterly overwhelming, as the noble Baroness, Lady Pinnock, set out.

Labour’s plan for small businesses will be an important milestone in recognising their value to the economy and the essential role that they have in ensuring the economic growth that we need. We will undertake a fundamental reform of business rates, which will reshape this antiquated system and refocus it on business not bureaucrats’ objectives. We want to make sure that bricks-and-mortar businesses do not continue to pay disproportionately more than their online competitors. We want to take the burden from high streets and the businesses that sit at the heart of our communities, such as the local café that makes our morning coffee, the mortgage broker on our high street who went above and beyond to help you get your first home, the plumbers who come out of hours when you have water pouring through the ceiling. We want a new system that incentivises businesses to invest, rather than discourages them doing so. Our plan for business rates sits within a comprehensive plan for small business, which tackles all the issues that our many conversations with those businesses have told us are key to their future.

We had the chance to speak on the wasted opportunity to revise non-domestic rates during last year’s debates on the Bill, as the Minister said. We recognise that, for now, this technical paper is necessary to put in place the mechanism for the current system, so we will not be putting forward any formal objections, but I have some questions for the Minister. Can she comment any further on the Government’s plans to shift the current disproportionate burden of non-domestic rates taxation from small local businesses to online corporates or, potentially, on alternative forms of income for local government, including an e-commerce levy, with the funding retained by local government?

The retailers that we know and love on our high street, such as M&S, Boots, WHSmith and small, local businesses, seem to have a dramatic penalty in the business rates system over big online retailers such as Amazon. The current top-up and tariffs system is now outdated and, in view of the extraordinary cuts to which local government has been subjected, it often penalises areas of deprivation just because areas around them may be more economically vibrant. Can the Minister comment on what recent assessment has been carried out on the validity of the tariffs and top-up system?

What progress has been made on the Government’s promised consultation on business rates avoidance and evasion? The LGA, for example, has called for a review of exemptions, such as where businesses happen to be located on farms, and further clamp-downs on business rates avoidance, along the lines of those introduced in Wales and Scotland, to ensure that the rules on reliefs, such as empty property and charitable relief, are applied fairly.

The Minister knows that the LGA is also in favour of giving councils more flexibility on business rates reliefs, such as charitable and empty property relief, and the ability to set their own business rates multipliers or, at the very least, to set a multiplier above and below the nationally set multiplier. Have the Government given any further consideration to those proposals? Lastly, could she comment on the glacial speed of the appeals process, which distorts council finances and reserves, as councils often have to hold funds for not just months but years while they wait for the outcome of business rate appeals?

As I said, we understand that this instrument is necessary to move forward non-domestic rates for this year, but we hope that there is an understanding that sticking plasters, even complicated and technical ones such as this, are the problem and not the solution.

[Baroness Scott of Bybrook (Con)]

My Lords, I thank the noble Baronesses seated opposite for their contributions. A number of questions came up. First, the noble Baroness, Lady Pinnock, and, I think, also the noble Baroness, Lady Taylor, asked about complexity. We accept that the administration of the system has become necessarily complex over time in response to all the changes to policy and tax that have happened. This will be an ongoing thing. Whatever the system is, as changes happen, it becomes more complex. While every mechanism cannot be made accurate pound to pound, as the noble Baroness, Lady Pinnock, would like, we minimise the risks to the system from any major changes that would affect a local authority’s budget as much as possible. Of course, we are always happy to talk to local authorities if they feel that they have a problem with their business rates.

Inter Faith Network

Baroness Scott of Bybrook Excerpts

Thursday 22nd February 2024 Lords Chamber

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

My Lords, with the leave of the House, I shall now repeat in the form of a Statement the Answer given by my honourable friend Felicity Buchan to an Urgent Question in another place. The Statement is as follows:

“May I thank the right honourable gentleman for raising the issue of the Inter Faith Network? I am grateful for all his work as chair of the All-party Group on Faith and Society and as a long-standing advocate for dialogue across faiths.

As my honourable friend the Minister for Local Government said during an Adjournment debate on this on 10 January, we know full well the role that faith communities play in our society. We are extremely supportive of efforts by faith groups and others to bring together people of different faiths and beliefs.

The Secretary of State wrote to the co-chairs of the Inter Faith Network on 19 January this year to inform them that he was minded to withdraw the offer of funding for the 2023-24 financial year. This was because of the appointment of a member of the Muslim Council of Britain to the board of trustees of the IFN. As the House will be aware, successive Governments have had a long-standing policy of non-engagement with the MCB. The appointment of an MCB member to the core governance structure of a government-funded organisation therefore poses a reputational risk to the Government.

The Secretary of State invited the IFN to make representations on this matter, which it subsequently did. The Secretary of State carefully considered the points raised by the IFN before concluding that its points were outweighed by the need to maintain the Government’s policy of non-engagement with the MCB, and the risk of compromising the credibility and effectiveness of that policy. Inter-faith work is valuable, but that does not require us to use taxpayers’ money in a way that legitimises the influence of organisations such as the MCB.

The department regularly reminds our partners, including the IFN, of the importance of developing sustainable funding arrangements rather than relying on taxpayers’ money, which can never be guaranteed. The potential closure of the organisation is therefore a matter for the IFN, as an independent charity, and not the Government. The Government are and continue to be fully supportive of developing and maintaining strong relationships across faiths and beliefs”.

--- Later in debate ---

[Baroness Scott of Bybrook (Con)]

I can assure the noble Baroness that we have kept the IFN informed of every move that we have made on its funding issues, and it has had the chance to discuss them with us. As for other funding, I absolutely agree with her that work facilitated and supported by government is really important for inter-faith work. I personally go and see a lot of inter-faith work going on, and we are still supporting more than 800,000 a year in organisations—people such as Near Neighbours and others that are doing this important work in our communities.

[Baroness Burt of Solihull (LD)]

My Lords, whichever way you look at this, the optics are not good. It was news to me that the Government do not engage with the Muslim Council of Britain. Our group met its new, and first female, secretary-general only a few weeks ago. I have two questions for the Minister. First, this has been a long-standing non-relationship, promoted quite a few years ago; is it not time that the Government reviewed this non-relationship with the Muslim Council of Britain, particularly in the light of the current situation and the fact that it works with over 500 organisations to promote knowledge and understanding of the Muslim faith and counter islamophobia? Secondly, will the Government review this decision? It is petty, wrong-headed and counterproductive. It does not put the Government in a good light—but it could if the Government were prepared to review it.

[Baroness Scott of Bybrook (Con)]

My Lords, it is not just this Government; successive Governments of different colours have had a long-standing policy of non-engagement with the MCB. British Muslims are a crucial part of Britain’s history and our way of life in Britain today. Each and every Muslim in every community in every corner of the United Kingdom should know that their religion will never act as a barrier to achieving their ambitions. The Government recognise the discrimination and intolerance faced by British Muslims, particularly at this time. We will not tolerate anti-Muslim hatred in any form and will seek to stamp it our wherever it occurs. This does not mean, however, that the Government have to use public funds to support the influence of organisations such as the MCB. We have no plans to review this decision.

[Lord Singh of Wimbledon (CB)]

My Lords, I speak as a founder member of the Inter Faith Network back in the 1980s, when it was very difficult to get people of different religions into the same room to talk to each other. That initiative owed much to Brian Pearce, a former civil servant. The Inter Faith Network has done some remarkably good work, particularly in the celebration of the millennium and getting religion in the census. There has been a difficulty in this country in that there is a sort of rule that people cannot talk about religion—people from different religions would come together and talk about anything but the commonalities and differences in their religions. There has been movement in the direction of actually discussing the importance of commonalities and building on them. It is sad that this closure is happening at this time, especially as the reason given is that the board contains a member of the Muslim Council of Britain. It is not a proscribed organisation, and it is better to have people with different views talking together to move the country forward in respect for one another.

[Baroness Scott of Bybrook (Con)]

I completely agree with the noble Lord that it is important that we have safe places where people of all faiths can discuss the issues surrounding faith and their relationships and to get together in communities. I thank him for his work, including in the early days of the Inter Faith Network. It was funded by the department from 2007 and we have given it £4 million since then. We have always said to it, however—as we say to any organisation that we fund—that it has to diversify its funding streams in order to become sustainable. No organisation can be reliant for ever on government funding, because we just do not know what is going to happen. I cannot reiterate the views of the Government again.

[The Lord Bishop of Worcester]

My Lords, I too pay tribute to the work of the Inter Faith Network. As has been stated, surely the optics of this are not good. I would like to ask the Minister how far non-engagement extends, because surely, in our society, we want to encourage dialogue, even with those organisations that may express some views with which we disagree. To not be willing to engage at all with an organisation that has not been proscribed goes against all the efforts being made to bring our society together—it seems very strange.

[Baroness Scott of Bybrook (Con)]

I do not particularly think it is strange. It is a long-standing decision not to engage with the MCB. The Government are doing what successive Governments have done. The person was on the council as a member, but it was when they became a trustee that things became more difficult for the Government.

[Baroness Butler-Sloss (CB)]

Since it has been a long-standing arrangement that the Muslim Council of Britain should not be regarded as an organisation that the Government talk to, would the Government now be prepared to review that?

[Baroness Scott of Bybrook (Con)]

I cannot say. Reviews like that are carried out by the Home Office. I will certainly take that back and ask the question but, as far as I know, there are no plans to look at it again.

[Lord Liddle (Lab)]

Does the Minister think that the Government’s action in this case is proportionate, given the huge importance in our society of interfaith dialogue and the fact that one person seems to be spoiling the show? Surely the Secretary of State would have a broader vision than that.

[Baroness Scott of Bybrook (Con)]

The Secretary of State carefully considered the implications of this and of ceasing the funding, including the potential impact on the Inter Faith Network itself and interfaith relations in the United Kingdom. The noble Lord is absolutely right: interfaith work is valuable, but there are very many more positive examples of thriving initiatives across the country that bring people together. That does not require us to use taxpayers’ money in a way that legitimises the influence of organisations such as the MCB.

East Midlands Combined County Authority Regulations 2024

Baroness Scott of Bybrook Excerpts

Wednesday 21st February 2024 Lords Chamber

Moved by

[Baroness Scott of Bybrook]

That the draft Regulations laid before the House on 18 December 2023 be approved.

Relevant document: 8th Report from the Secondary Legislation Scrutiny Committee. Considered in Grand Committee on 19 February.

Motion agreed.

East Midlands Combined County Authority Regulations 2024

Baroness Scott of Bybrook Excerpts

Monday 19th February 2024 Grand Committee

Moved by

[Baroness Scott of Bybrook]

That the Grand Committee do consider the East Midlands Combined County Authority Regulations 2024.

Relevant document: 8th Report from the Secondary Legislation Scrutiny Committee

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

My Lords, these regulations provide for the implementation of the devolution deal agreed between the Government and four councils—Derby City Council, Derbyshire County Council, Nottingham City Council and Nottinghamshire County Council—on 30 August 2022. Since then, we have been working closely with the councils on the implementation of the deal, which is an important contribution to the Government’s levelling-up agenda increasing opportunity, investment and prosperity in the East Midlands. The four councils consented to the making of these regulations on 15 December 2023.

The regulations, if approved by Parliament and made, will establish the East Midlands Combined County Authority and the office of mayor for the area. This will be the first of a new type of local government institution, a mayoral combined county authority, made possible by the Levelling-up and Regeneration Act 2023. The essential feature of a combined county authority is that only upper-tier authorities, that is county councils and unitary authorities, can be constituent members of the combined authority, with a requirement that there must be at least two constituents. This does not mean that, where a constituent authority is a county council, the district councils in the area cannot be involved and have a voice within the combined county authority on matters which could affect them.

In the East Midlands it is envisaged, as set out in the devolution deal, that the constituent members will invite the district councils to be represented by four non-constituent members, two from Derbyshire districts and two from Nottinghamshire districts. It will be for the district councils to decide who their representatives will be. These non-constituent members can be given voting rights on certain matters, as decided by the constituent members. In addition, district councils will be invited by the combined county authority to nominate certain of their members to serve on the combined county authority’s overview and scrutiny committee and audit committee. These committees will have important roles for the accountability of the combined county authority and of the mayor to the people of the East Midlands.

The central feature of the East Midlands Combined County Authority that the regulations provide is that there will be a directly elected mayor for the area. The mayor will provide a single point of accountability essential for the powers and budgets being devolved.

The regulations provide for the first mayoral election to take place on 2 May 2024. The elected mayor will then take up office on 7 May, with a four-year term ending after the next mayoral election in May 2028. Thereafter, there will be elections every fourth year, to be held on the ordinary day of election for the year, which is the first Thursday in May. Following the enactment of the Elections Act 2022, these mayoral elections will be on a first past the post basis.

The regulations also make provision for the overall governance arrangements of the combined county authority. Each constituent council will appoint two of its members to the combined county authority. One of these members will act as the constituent council’s lead member. This means that the combined county authority will have a mayor and a total of eight constituent members.

The mayor will be the chair of the East Midlands Combined County Authority and will appoint a deputy mayor from one of the constituent members. The combined county authority may, in addition, arrange for there to be up to eight non-constituent or associate members. As I have mentioned, it is the intention of the East Midlands authorities that the district councils should nominate four non-constituent members.

The combined county authority will be established the day after the day on which the regulations are made. Until the elected mayor takes office, it will be for the constituent members to decide how they will conduct business, including arrangements for chairing any meetings.

In addition to certain generic functions that all mayoral combined county authorities have, the regulations also confer significant functions on the combined county authority, as agreed in the devolution deal. Many of these functions are currently functions of a public authority, such as Homes England or the Greater London Authority, or indeed functions of the Secretary of State. As required by the 2023 Act, alongside these regulations we have laid a Section 20(6) report, which provides details about the public authority functions being devolved to the combined county authority.

Certain of the functions conferred on the combined county authority are to be exercised only by the mayor. In addition, the mayor will have powers, as mayors of combined county authorities generally do, to issue a precept, if they so choose, to cover the costs of mayoral functions which are not being met by other resources available to the combined county authority. The functions conferred by the regulations include those on housing and regeneration, mayoral development corporations, transport, public health, and education and skills. I will address each in turn. The essential features of these functions are as follows.

To improve the supply and quality of housing and to facilitate the regeneration of the East Midlands, Homes England powers will be conferred on the combined county authority and will be held concurrently with Homes England. These powers will enable the combined county authority, working closely with Homes England, to promote housing and regeneration, and will include the compulsory purchase of land. This will be a mayoral function, and any decisions will also require certain local consents, including the consent of the district council if the proposed land for purchase falls within its area, and that of the Peak District National Park Authority should the land fall within its geographical boundary.

The regulations provide for the mayor to have power to designate mayoral development areas within the geography of the East Midlands Combined County Authority to support the development of strategic sites. This is the first step in establishing a mayoral development corporation; further regulations would be necessary to create such a body. Powers relating to such a corporation are to be exercised by the mayor. As with the compulsory purchase powers, local consents are also necessary. District council consent is required should the proposed development area sit within a district’s geographical boundaries. Similarly, the consent of the Peak District National Park Authority would be required if any part of the development area were within the national park.

The combined county authority is to become the East Midlands transport authority. The mayor is to have control over a consolidated and devolved transport budget, with the power to pay grants to the constituent councils in relation to the exercise of their highways functions to improve and maintain roads. The mayor may also pay grants to bus service operators for eligible bus services operating within the East Midlands area. Grants must be calculated in accordance with any regulations made by the Secretary of State.

Local authority public health functions are to be conferred on the combined county authority, enabling it to deliver public health initiatives throughout its area and in support of the local authorities in the East Midlands. The combined county authority is to be required to adhere to Section 2B(1) of the National Health Service Act 2006, which places a duty on a local authority to take steps as it considers appropriate to improve the health of the people in its area. This responsibility will be held concurrently with the combined county authority’s constituent councils. None of the constituent councils’ public health functions is transferred from the councils to the combined county authority.

Finally on functions, I mention that the devolution deal also provides for the devolution of certain education and skill functions, together with the adult education budget. As agreed with the area, further regulations for these functions will be brought forward later this year with the aim, subject to Parliament’s approval, of the combined county authority being responsible for these functions from the academic year 2025-26.

These regulations will be made, if Parliament approves, under the Levelling-up and Regeneration Act 2023. As provided for by that Act, Derby City Council, Derbyshire County Council, Nottingham City Council and Nottinghamshire County Council consulted on a proposal to establish the combined county authority based on the East Midlands devolution deal. They promoted the consultation by a number of means, including a dedicated website; two online events in which residents and stakeholders could make their views known; and a communications campaign. Responses could be made online or directly by email or paper. The councils also undertook stakeholder engagement with businesses, the voluntary sector and key institutions in the East Midlands.

The public consultation ran from 14 November 2022 to 9 January 2023. A total of more than 4,800 people responded to that consultation. As required by the 2023 Act, the councils preparing the proposal provided the Secretary of State with a summary to the responses to the consultation on 1 November 2023, after the enactment of the 2023 Act. The Act provides that a consultation carried out before it came into force can be considered as fulfilling the requirement in it to consult. The majority of respondents supported all aspects of the proposal with one exception. On the establishment of the mayor, 48% of those who took part in the consultation supported the proposal, with 52% opposing it.

The role of the mayor is integral to the proposal. Many aspects of the proposal supported by residents are available only to an institution that is led by a strong, accountable, directly elected leader such as a mayor. Those opposed to a mayor raised concerns about the cost of a mayor, the consolidation of power in an individual and adding an additional tier of governance to local government. In contrast, those supporting the approach of a directly elected mayor referred to the benefits that it could bring to the area in accountability, leadership and providing a voice for the region at national and international levels.

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[Baroness Scott of Bybrook (Con)]

My Lords, I thank noble Lords who have spoken in this debate, particularly for their support for the East Midlands. I know that will be well received. Once again, we all wish it well. I will respond to a number of questions— I will look at Hansard and write if I miss any—starting with my noble friend Lady McIntosh.

The response rate to the consultations the constituent councils did was very low. The noble Baroness, Lady Taylor of Stevenage, and the noble Lord, Lord Shipley, mentioned that 4,800 responses from 1.6 million people is not a lot, but you cannot force people. My experience is exactly the same. People will tell you, “We just want people to lead our council, keep us safe and economically viable and to spend our money wisely”. Sadly, that is what happens in all these cases, but that is how it is.

My noble friend Lady McIntosh of Pickering asked whether this funding is new. Yes, the funding to the East Midlands is new, as was the case in Tees Valley; that was new funding, too. My noble friend also mentioned planning powers. No planning powers or housing powers are being transferred from existing planning and housing authorities. We made that clear in passing the then Levelling-up and Regeneration Bill, which is now an Act. Therefore, those authorities will be responsible. That is part of the challenge; they must work together for the good of their area.

The East Midlands devolution deal is a level 3 deal, with strong devolution alongside the establishment of a mayor. There was concern that 52% of those who responded to the consultation did not want a mayor; the problem is that they also said they wanted a level 3 devolution deal, with the large amounts of money and power that come with it. It was for the Secretary of State to make the decision that the result of the East Midlands consultation should be a level 3 deal, which requires a mayor.

The noble Lord, Lord Shipley, the noble Baroness, Lady Taylor of Stevenage, and my noble friend Lady McIntosh brought up Tees Valley. As they will know, the report came through very recently. We are considering the two recommendations in it. The noble Lord, Lord Shipley, is absolutely right: risk, scrutiny and audit are very important here, as they are in all local government. The mayor from Teesside has been asked for his response by early March; once it comes through, I will write a further letter on the Government’s response. What I think will happen is that we—the Government—will learn from that report, as will the East Midlands. As with all local government, as I say, scrutiny, audit and risk are important.

[Lord Shipley (LD)]

Since we are on that specific issue, may I ask two questions? The Minister said that there were two recommendations but, actually, there are 28 altogether.

[Baroness Scott of Bybrook (Con)]

I was talking about the ones on scrutiny.

[Lord Shipley (LD)]

Right, but there are others which relate indirectly to the scrutiny, risk and audit function.

Secondly, this is not just about the East Midlands Combined County Authority. This issue relates to all mayoral combined authorities: those that currently exist and those that are about to come into existence. I hope that, when the Minister writes to us, there will have been an in-depth examination by the department of how the criticisms of Tees Valley’s arrangements could not occur in all of those other authorities. I hope that I am making myself clear: there needs to be an examination of the constitutional and working arrangements in all those combined authority areas.

[Baroness Scott of Bybrook (Con)]

I agree with the noble Lord. This is what we will do: we will look at the report in detail and respond accordingly on the things in the report that reflect, first, on the department itself and, secondly, on future combined authorities of whatever type because of the importance of that.

There are currently no limits on mayoral precepts; the power does exist to set limits. That would need the approval of the Commons, though, if it were to happen so we will watch that as it moves forward. I think it was the noble Baroness, Lady Taylor of Stevenage, who brought up the issue of a political adviser. The combined county authorities can have one political adviser; the post, like local authority political advisers, is not politically restricted in the way that other officers’ posts are, but they can have one.

Local Authorities: Financial Difficulties

Baroness Scott of Bybrook Excerpts

Wednesday 14th February 2024 Lords Chamber

[Lord Dubs]

To ask His Majesty’s Government what assessment they have made of the financial difficulties facing many local authorities.

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

My Lords, we have listened carefully to local authorities about the pressures they are facing. That is why, in January, we announced additional measures worth over £600 million. Taking into account the recently announced local government finance settlement, that makes available up to £64.7 billion, an increase of 7.5% in cash terms on last year. The department continually monitors the sector, and we stand ready to talk to any council with concerns about its finances.

[Lord Dubs (Lab)]

My Lords, what the Minister said is of course welcome, but it is still a drop in the ocean compared to the cutbacks local authorities have faced since 2010. The Government keep talking about cutting taxes in a forthcoming Budget, but is not the real issue that council tax payers also pay taxes? Surely, council tax increases will have to make up for cuts in income tax. This is not honest.

[Baroness Scott of Bybrook (Con)]

My Lords, for many years we have had a cap on council tax increases. It remains at 2.99% for the general fund, with 2% extra for councils that want more money for social care funding. However, the department is establishing an expert panel to advise local government and the department on local government financial sustainability into the future. The panel will include the LGA and the Office for Local Government, and we look forward to its findings.

[Lord Young of Cookham (Con)]

My Lords, the local authorities that have so far gone bankrupt and applied for Section 114 have, by and large, been the authors of their own misfortune. Is my noble friend the Minister aware that many well-run upper-tier authorities—controlled by all parties—are now running out of road? Will not whoever wins the next election have to undertake a major review of local government finance? The current regime of overreliance on government grants, rate capping and an out-of-date council tax is simply unsustainable.

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[Baroness Scott of Bybrook (Con)]

I agree with much of what my noble friend said. In December 2022, the Government ruled out reform of the local government finance system in this Parliament in response to the sector calling for stability and certainty from local government. However, this Government are committed to reforming the local government funding landscape in the next Parliament.

[Baroness Stuart of Edgbaston (CB)]

My Lords, I stress the need to review the local government financial settlements and support systems. In the case of a city such as Birmingham, even if increasing the council tax were realistic, a quarter of households—some 461,000 —are eligible for council tax support, and of those, 75,000 pay no council tax at all. Over the next two years, the city is facing a budget gap of some £300 million. Does the Minister agree that the structure needs to be reviewed and that individual circumstances have to be taken into account?

[Baroness Scott of Bybrook (Con)]

I repeat that we have said that we will look at funding in the next Parliament. There is an 18% increase in budgets per dwelling in the most deprived areas, compared to the least deprived. Through the settlement, places such as Birmingham are getting a lot more money.

[Baroness Thornhill (LD)]

My Lords, councils have been receiving money from the Government’s household support fund, which has provided many thousands of families with essential sharp-end help with their bills and food, for example. However, it is due to end at the end of March. Will the Government seriously consider extending that effective and targeted support for at least another year? Have they taken into account the increase in child poverty they anticipate will result from the withdrawal of this much-needed, much-used fund?

[Baroness Scott of Bybrook (Con)]

The noble Baroness is right to say that the current household support fund runs out on 31 March. However, the Government continue to keep all existing programmes under review in the usual way.

[Lord Sahota (Lab)]

My Lords, council tax banding for our 25 million homes in England is based on their estimated market value in 1991. So, a two-bedroom flat in London, where property values have gone through the roof, falls in the same band as its equivalent in the north of England; a £1 million home is charged 0.2% of its value; and on average, one worth £250,000 is charged 0.6%. This year, 46% of households in England will receive a bigger council tax bill than Buckingham Palace. Does the Minister think that our council tax formula is regressive and needs reforming?

[Baroness Scott of Bybrook (Con)]

As I said, in the next Government we will look at all these local government financing issues. We agree that that is long overdue, but the sector itself did not want that to happen in 2022.

[Lord Forsyth of Drumlean (Con)]

My Lords, does my noble friend recall that we promised we would fix social care? The problem for local authorities is that the vast majority of their funding goes on providing social care, crowding out other vital services. Until we address the issue of social care, this problem will get worse, and it is worst in those local authorities where the tax base is lowest and the demand is greatest. This is urgently needed, not least because people are not getting the social care they need.

[Baroness Scott of Bybrook (Con)]

I absolutely agree with my noble friend. We made changes to local government financing in January, and we listened to local government and its priorities: £500 million of the £600 million extra that was given is going into social care.

[Baroness Taylor of Stevenage (Lab)]

My Lords, this weekend, the Local Government Association Labour Group published its latest version of 101 Achievements of Labour in Power, featuring a huge range of initiatives: street support partnerships tackling homelessness in Leeds, Food On Our Doorstep clubs in Mansfield, delivering over 83,000 square feet of lab space to support life sciences in Stevenage, new models of fostering in South Tyneside, and Plymouth City Council launching the first ever national marine park to support conservation of our seas. Remarkably, all this innovation has taken place against the backdrop of a reduction in core spending power of 11% compared with 2010-11. Is it not time the Government recognised the huge value that people place on local services and worked with the sector to deliver a sustainable funding model to support them?

[Baroness Scott of Bybrook (Con)]

The Government do appreciate what local government can do, and it is not just Labour local government that is delivering this innovation and great services for local people. At this point, I should thank local government for everything it does. As I said earlier, we listen to local authorities all the time, which is why we put in £600 million more in January.

[The Lord Bishop of St Edmundsbury and Ipswich]

My Lords, may I return to the issue of reforming the model? I have recently been caught up in discussions with Suffolk County Council about funding cuts it was making to its arts programmes. That drew me into detailed discussions about what its priorities were and the challenges it was facing. It said that two things would make a huge difference. The first was knowing further in advance what it might receive; it was looking for a three-year projection. The second was for the groundwork for the reform to which the Minister has been referring to be done now, rather than in the future.

[Baroness Scott of Bybrook (Con)]

The right reverend Prelate is absolutely right: local government is asking for reform of the whole system, but it is also asking for certainty for future years. Recognising the importance of this, the Government intend to return to multi-year settlements in the next Parliament when circumstances allow.

[Lord Laming (CB)]

My Lords, I am sure the Minister agrees that for 10 years, the Government made very severe cuts and, as the noble Lord, Lord Forsyth, said, there was increased demand for social care services. The result is that the non-statutory services have borne all the cuts. Services for young people, family support and libraries—I could go on—have all been severely cut and continue to be so. I lend my support, for what it is worth, to the Minister. Local government finance really is in desperate need of a fundamental review.

[Baroness Scott of Bybrook (Con)]

I have already agreed that this will happen in the next Parliament under a Conservative Government. However, as we have heard from the noble Baroness opposite, not all councils have stopped non-statutory services. Many of them are running their businesses very efficiently and keeping all those services going.