Housing and Planning Act 2016 (Banning Order Offences) Regulations 2017

Lord Bourne of Aberystwyth Excerpts

Monday 22nd January 2018 Lords Chamber

Moved by

[Lord Bourne of Aberystwyth]

That the draft Regulations laid before the House on 29 November 2017 be approved.

Relevant document: 13th Report from the Secondary Legislation Scrutiny Committee

[The Parliamentary Under-Secretary of State, Ministry of Housing, Communities and Local Government and Wales Office (Lord Bourne of Aberystwyth) (Con)]

My Lords, the Government value the private rented sector. It is an important part of our housing market, housing 4.5 million households in England. We want to support good landlords who provide decent well-maintained homes and avoid unnecessary further regulation of them. Most private landlords provide a decent service to their tenants, respect their rights and comply with the obligations and legal requirements imposed on them. We know, however, that a small number of landlords and property agents do not meet their legal obligations, sometimes exploiting their tenants by renting out substandard, overcrowded or dangerous accommodation. These landlords and property agents often do not respond to legitimate complaints made by tenants. Some would even prefer to be prosecuted rather than maintain their properties to a decent standard. Let me be clear: these practices damage the reputation of the sector and have no place in modern Britain.

The Government brought in tough measures to enable local authorities to target such rogue landlords under the Housing and Planning Act 2016. In April 2017, we introduced civil penalties of up to £30,000 as an alternative to prosecution and extended rent repayment orders to cover a wider range of housing offences, including illegal eviction and failure to comply with a statutory notice. Banning orders, which are the subject of these regulations, are an important part of the package, which will enable local authorities to take effective enforcement action against rogue landlords.

It may be helpful to noble Lords if I briefly outline the purpose of a banning order. A banning order is defined under Section 14 of the Housing and Planning Act 2016. A person subject to a banning order may be prevented from: letting housing in England; engaging in English letting agency work; engaging in English property management work; or a combination of these. Section 15 of the Act enables a local housing authority to apply to the First-tier Tribunal for a banning order against a person who has been convicted of a banning order offence. A banning order must last for a minimum of 12 months, and there is no upper limit. If a landlord breaches a banning order, they will face enforcement action.

Noble Lords may also be aware of our intention to introduce a database of rogue landlords and property agents. Any landlord or property agent subject to a banning order will be entered on to the database, which will be used by local housing authorities to target their enforcement activity effectively.

We also want to ensure that tenants who live in a property rented by a landlord subject to a banning order are adequately protected. A banning order does not invalidate any tenancy agreement held by tenants in a property, regardless of whether the agreement was issued before or after the banning order was made. This is to ensure that tenants do not lose their rights under the terms and conditions of their tenancy agreement. The Act therefore provides that, in certain circumstances, the management of a property can be taken on by the local housing authority following the making of a banning order.

Banning orders target the most prolific offenders who have been convicted of serious housing, immigration and other criminal offences connected to their role as landlords. They will prevent rogue landlords and property agents earning income from renting out properties or engaging in letting agency or property management work, forcing them either to raise their standards or to leave the sector entirely.

Noble Lords will be aware that we did not include specific banning order offences in the Housing and Planning Act 2016. During the passage of the Act, concerns were raised about the nature and scope of banning order offences. In response we held a public consultation on which existing criminal offences should be regarded as banning order offences. We also amended the Act to ensure that the regulation-making powers were subject to the affirmative procedure to enable full scrutiny of the proposed offences by Parliament.

The regulations before the House today specify which offences will constitute banning order offences under Section 14 of the Act. I will summarise briefly the offences set out in the schedule to the regulations. All the offences listed in the regulations are existing criminal offences. By making the offences “banning order offences”, we are not introducing new offences but simply introducing a new sanction for pre-existing criminal offences.

Broadly speaking, there are three types of offences in the regulations. The first type is housing offences relating to a breach of existing requirements under the Housing Act 2004 and other housing-related legislation, provided the person convicted of the offence has not received an absolute or conditional discharge. This condition is in place to ensure that banning orders remain a proportionate sanction. We want to target only the worst offenders, who have been convicted of serious housing offences.

Offences include failure to comply with an improvement or overcrowding notice, failure to comply with houses in multiple occupation licensing and selective licensing of other privately rented properties, and offences relating to fire and gas safety. They also include the unlawful eviction of tenants or violence or harassment towards tenants by the landlord or letting agent. Such offences are serious and directly impact on the health and safety of tenants at a property. These offences are directly related to the offender’s role as a landlord, and it is right that they are included as banning order offences.

--- Later in debate ---

[Lord Campbell-Savours (Lab)]

My Lords, a number of us spoke at some length on this matter when we were dealing in 2015 with what became the Housing and Planning Act 2016. This offers us the opportunity for a further canter around the course. I shall speak briefly because in principle, like most of the House, I support the regulations. I am trying to work out how effective they will be. One stat which would be helpful would be to know to what extent local authorities have, let us say, over the past 12 months or couple of years, prosecuted landlords with the offences defined in the regulations, because they already have the power to prosecute, which brings me to my second point. If they have that power to prosecute, and they do not do so—for all sorts of reasons, which I shall come to in a moment—the chances of them using a banning order are substantially reduced. The prosecution comes first, and the banning order comes second. I stand to be corrected if I am wrong. It is absolutely dependent on whether local authorities are prepared to prosecute.

Let us take a specific example. Slough is a town notorious for the number of sheds in gardens, most of which are there illegally. The local authority is in difficulty. I presume it knows that it could say to the shed owner, “Close the shed because you are in breach of the law”. On the other hand the local authority may say, “We want to ban that particular landlord”, but it is not prepared to do so because by prosecuting him it will create a homeless situation and it will have to step in and rehouse the family concerned. I am arguing that there may well be a hesitation within local authorities to prosecute and introduce banning orders in the knowledge that they may have to take on responsibility for the tenants. That might apply equally to unfit, overcrowded housing, which is covered under a contravention of overcrowding notice, or fire and gas safety standards offences. The local authority would have to have all that in mind if it decided to prosecute and get a banning order.

If one is dependent on the other and there is a hesitation to prosecute, to what extent will that influence the preparedness of a local authority to introduce the banning order? Unless there is housing into which to place people, or the local authority is prepared to take on the property, which in itself means expenditure because it has been through the legal process, the measure being introduced here might well not work in the way Ministers intend. What we need is more houses: more houses to rent and more houses at a sensible price. That would ease the whole process whereby local authorities would feel freer to proceed and close down property, with the obvious implication for rehousing families.

What stats do we have on the preparedness of local authorities to prosecute and place landlords in a position whereby ultimately, under these regulations, they will be subject to banning orders?

[Lord Bourne of Aberystwyth]

My Lords, I thank noble Lords who have participated in the debate on these regulations and I will do my best to deal with the various points in the order in which they were made.

First, I thank the noble Lord, Lord Jones, for his kind words. Wales does indeed have provisions; they are not identical to these. I will write to noble Lords who have participated, covering the issues raised, and I will endeavour to give the noble Lord full details. He will know that in a devolved context, things are slightly different but there is legislation there and, I believe, in Scotland as well, which I will also seek to cover.

I thank the noble Baroness, Lady Grender, for her general welcome for these regulations. She made points about transparency, which were echoed elsewhere. The noble Lords, Lord Beecham and Lord Shipley, talked about the regulations being cast in a way that would mean tenants could look at potential landlords to find out the position by having a register that is open to the public. Noble Lords will appreciate that that is not possible under the main legislation, which was discussed and passed. The Housing and Planning Act 2016 does not permit that. This is a register for local authorities to use. It is not a ministry of housing—to use our new title—register; it will be a national register for local authorities which will contain these details. In addition—although I am not an expert in this area of the law—there are considerations under the Data Protection Act as to what can be disclosed in such situations. Again, I will endeavour to give chapter and verse on that when I respond in more detail.

--- Later in debate ---

[Lord Beecham]

Before the Minister sits down, can he clarify that he will deal in writing with the point I raised about paragraph 7.1 of the Explanatory Memorandum, which talks about tackling,

“the most serious and prolific offenders”?

[Lord Bourne of Aberystwyth]

I am grateful to the noble Lord. I had unintentionally missed that point in summing up. As I said, we will certainly be making guidance available to local authorities in a booklet. I will give more detail on that in my letter.

Motion agreed.

MV “Empire Windrush”

Lord Bourne of Aberystwyth Excerpts

Thursday 18th January 2018 Grand Committee

[Lord Bourne of Aberystwyth (Con)]

My Lords, I congratulate and thank my noble friend Lady Berridge for bringing this very important topic to our attention today. It has been a debate of extreme potency and impact on many different fronts and I will try to do justice to the contributions that have been made. At the end of my period, I will specifically deal with some of the plans we have. In so far as I have not covered all the detail of the plans, I will cover them in a letter which I will send to all Members of the Committee.

In response to a point made early on by my noble friend Lady Berridge about the input of other noble Lords, we would be happy to hear from all noble Lords about ideas. We have had some good potent, ideas today. I have written separately to the noble Baroness, Lady Lawrence, because she will clearly have ideas and I would like to be able to reflect on them so that we are able to move forward together on some of the important areas that we have touched on today.

Many noble Lords referred to the early degree of prejudice that undoubtedly existed and the awful experiences that many of the first members of the “Windrush” generation, not just those on the “Windrush”, must have experienced when coming to this country, finding not just a cold climate but a very cold reception. That was truly awful. Many noble Lords referred to that and to the journey we have made, including the noble Lord, Lord Judd, the noble Baroness, Lady Young of Hornsey, and the right reverend Prelate the Bishop of St Albans, but other noble Lords said that we still face challenges, including the noble Lords, Lord Dholakia and Lord Crisp, who had some specific questions that I will try to cover, the noble Lord, Lord Faulkner, who made a very powerful contribution, and the noble Lord, Lord Ouseley, who asked some specific questions. I shall try to deal with some of them.

The noble Lord, Lord Faulkner, made a potent point. It strikes me as strange, as it has done for some time, that we see people challenged and asked to go back to a country where they may never have been or, if they have, it was a long time ago, and it is not home. Let me make it clear that the Government are absolutely determined that people who are rightly here should remain here.

I will ensure that a copy of the report of this debate is shared with other government departments, because it has clearly impacted on a number of areas, including DCMS on statues, which I will come on to, and the Home Office in relation to the correct contribution from the noble Lord, Lord Faulkner.

The noble Lord, Lord Crisp, asked about recognition of the role of the “Windrush” generation and members of ethnic minority communities in general in relation to the NHS. He is absolutely right. We all remember the powerful impact of the opening ceremony of the Olympics in 2012, which combined references to the “Windrush”, the NHS and the fact that we are a proud multicultural, multiracial society. That is reflected in everyday life, not just in the public sector, but certainly in the public sector and probably most obviously in our great NHS. That is an important point. I know that is the view of my right honourable friend the Secretary of State for Health, Jeremy Hunt, but I will ensure that he sees a copy of the report of this important debate.

The noble Lord, Lord Crisp, made a valid point about statues. As a nation, a country and a kingdom, we have become much more aware of the importance of statues. You can scarcely open a newspaper these days without seeing a legitimate case being made for a statue of an individual or a cause. I will ensure that a copy of the report of this debate goes to DCMS with a covering note.

We should not think just in terms of London, although London is important. In that context, before I come to some of the activities that the Government are engaged in, we are working with Tilbury—I think Tilbury lies in the London Borough of Thurrock—and Lambeth because on 22 June, Windrush Day, there will be a celebration of the 70th anniversary. I am very grateful for the dynamic representation of the community provided by the noble Baroness, Lady Benjamin, who has been a joy to work with as we have looked at these projects. I congratulate her on the success of the garden project, which I know she has been instrumental in driving forward. It is very hard to say no to her on anything, but on something as great as a garden, I can quite see why she has had that success. I hope to be able to visit it when it comes to London. I am sure we all do. It is a great thing.

In the context of saying that we are working with the Windrush Foundation, the Voice will bring out a special celebration edition to mark the 70th anniversary. We also have plans to mark it not just in Westminster Abbey but to make it known to other cathedrals and religious bodies around the country that it is Windrush Day. We need to make sure that it is recognised and get a positive message out there about the importance of the day. They might like to have a service of celebration in their community and to organise a tea party, as will be happening in Lambeth. There is also the possibility of live-streaming between different celebrations.

Celebration will not be on Windrush Day only. Things are starting in Lambeth in February. They are happening in Leeds, where the Phoenix Dance Theatre is putting on a Windrush production, which will be coming to London on, I think, 26 to 28 April, so I give advance notice to noble Lords. It will be at Sadler’s Wells, I think. I hope to be able to go to it. A range of activities is going on, and we hope to enlarge on what is already happening while keeping it focused. I am very happy and privileged to work with noble Lords to make sure that we can enhance what is happening.

The noble Lord, Lord Kennedy, referred to the great Sam King. He was indeed a great man. Many great men and women who came over on that boat, subsequent and previous boats deserve to be honoured, but there is clearly iconic significance to the “Windrush” which we want to celebrate as a country to demonstrate not just how far we have come, which we have, but to recognise that there are still challenges, some of which I hope that we can face through the Race Disparity Audit. It published data, and you cannot really disagree with data. You can disagree about what we do about the data, and that debate is now going on in government because the Prime Minister has been driving it hard and has been asking departments to bring forward plans to ensure that we take forward the published data and act to ensure that some of the lessons are learned and some of the wrongs are righted. That is something I know that we want to do.

I hope that noble Lords will forgive me, because I am sure that I have missed some points. I will try to pick them up in the letter that I will send round. I encourage all noble Lords to pass on the message about the importance of Windrush Day and, more broadly, about the lesson of the Windrush generation and its importance for our country. We are all here in a mood of celebration about Windrush, but we must also recognise that we cannot be complacent. There are still lessons to be learned, although the examples of others from earlier generations demonstrate that there were people at the time who obviously were receptive, as the noble Baroness, Lady Young of Hornsey, pointed out. It was not all bleak, even in those early days, although it was clearly very bleak for many people. There was the example of people early on, such as Roy Jenkins, although that was perhaps a bit later, and Ian Macleod, as well as people in the community and religious communities up and down the country who were helping.

I once again thank my noble friend Lady Berridge for introducing this debate in such a timely way, I thank noble Lords who participated and look forward to working with them to ensure that we have a very successful year and a very successful Windrush Day and get it into the national calendar. That is very important.

Motion agreed.

Housebuilders

Lord Bourne of Aberystwyth Excerpts

Thursday 11th January 2018 Lords Chamber

[The Parliamentary Under-Secretary of State, Ministry of Housing, Communities and Local Government and Wales Office (Lord Bourne of Aberystwyth) (Con)]

My Lords, first, I thank the noble Lord, Lord Best, for moving this debate with characteristic breadth and depth of knowledge. It is a real privilege to hear his thoughts on the issue. Clearly, he is a man who knows what he is talking about.

Many noble Lords have talked about this being a debate not just about housing but about people. For example, the right reverend Prelate the Bishop of Newcastle made that very pertinent point. People referred to the new name of the department. In fact, it is now a ministry—the Ministry of Housing, Communities and Local Government, or MoHoCoLoGo, as I am told it is being called in the corridors of power. It makes us sound like a Mexican nightclub. But there is a serious point to this; it is not just cosmetic—it is about the importance that we attach to housing as a Government. Indeed, the Prime Minister has made it clear that it is the number one domestic priority. Points have been made across the Chamber, and I think we all share the recognition that this is crucial; we need to build more and to higher standards and a higher quality design. I shall try to do justice to some of those points.

Noble Lords have referred to the phrase, “fixing our broken housing market”. The noble Lord, Lord McKenzie, referred to it and indicated that it shows that it is not just dependent on the market. I agree with that; I think that the fact that we need to fix the market means that we are looking at regulated markets. Anyone who has been following what the Government and the ministry has been doing knows that we have been taking action to do just that. That is not to say that the market is not important here; it has certainly helped to deliver housing across generations, as my noble friends Lord Borwick and Lord Hunt made clear, along with others—my noble friend Lord Naseby spoke with great personal recollection of his time in Islington and indeed in Northampton South.

We have announced further reforms recently, including planning reforms both to ensure that more land is available for housing and to maximise the potential of our cities and towns to build new homes, while protecting the green belt. Noble Lords, including the noble Lord, Lord Shipley, and the noble Baroness, Lady Thornhill, made points about the viability assessment. We have consulted on this and will be responding to that consultation, but the aim is certainly to make the viability assessments simpler and clearer.

More than £15 billion of new financial support has recently been made available for housebuilding over the next five years, taking the total financial support up to 2022-23 to £44 billion, which will help to boost the delivery of housing. Using funds flexibly will unblock barriers to more housebuilding.

Many noble Lords have referred to the need to assist smaller housebuilders; I share this aspiration, as do the Government, and we have of course been doing this. The noble Lord, Lord Shipley, and my noble friends Lady Neville-Rolfe and Lord Borwick referred to this, as did other noble Lords. We have, for example, recently ensured that there is an extra £1.5 billion for the home building fund for small and medium-sized builders; we will be watching this to make sure that it is having an effect.

The right reverend Prelate the Bishop of Newcastle, among others, referred to the housing revenue account and the borrowing cap. We have recently raised that cap by a total of £1 billion in areas of high affordability pressure for local authorities that are starting to build new council homes. We will be assessing bids in relation to that before long.

Noble Lords may have seen that, this very morning, we launched Homes England. The Secretary of State, Sajid Javid, was at Alconbury to do that this morning. This will drive forward change by bringing together money, expertise, planning and compulsory purchase powers.

Many noble Lords also referred to the importance of new towns—including the noble Lord, Lord Best, and my noble friend Lord Naseby, who spoke with personal experience of Northampton—and have urged expansion of this programme. We are taking that forward; it is central to our thinking and it featured very much in the White Paper.

Taken together with these measures in the housing White Paper, the Budget puts us on track to raise housing supply to 300,000 a year on average by the mid-2020s and to drive up housing supply by the end of the current Parliament to its highest annual level since 1970. This represents clear ambition.

Many noble Lords referred to the need for more social housing—I share that aspiration. We have committed £2 billion, much of which will go towards social housing development, and we will be assessing bids in relation to that. The noble Lords, Lord Best, Lord McKenzie, Lord Kennedy and Lord Whitty, my noble friend Lord Horam and the noble Baroness, Lady Janke, referred to that. The noble Lord, Lord Shipley, expressed it in a slightly different way as “civic building”, which I think is a very good phrase to keep hold of and which describes what we are seeking to do.

We recognise and welcome the contribution made by Britain’s larger housebuilders towards getting the homes that we need built—it is worth putting that on record. Many have done and are doing that to a high standard, though not all, by any means. I will say something about housing design in a minute. We need to recognise that there are market controls and provisions for shareholders to control bonuses and indeed salaries, which are subject to being published.

That said, I understand the particular frustrations that have been expressed in relation to Persimmon. They will note what has been said—not least because we will make sure a copy of the debate goes to all major housebuilders, our partners and all agencies in this area. I listened with great interest to what my noble friend Lady Gardner of Parkes said in relation to the paternalism that was demonstrated by some people who had been here previously. My noble friend has had great experience in this area, so I was interested in what she had to say, which was very pertinent regarding that paternalism of old.

The noble Lord, Lord Taverne, also made some points about smaller organisations, including Pocket, and some good organisations that are really helping to deliver.

Some noble Lords touched upon planning conditions. My noble friend Lord Hunt spoke on this from a different angle, and so did the noble Lord, Lord Kennedy. They will both recall that the provisions in the Neighbourhood Planning Act forbid the use of pre-commencement conditions without the applicant’s agreement. We are now working on the regulations in relation to that, not least on the speed with which these matters are dealt with, which I hope will help in terms of delivery.

Noble Lords also touched on the Help to Buy programme. The noble Lord, Lord Kerslake, talked about possibly having it in a revised form. It is important that we make this provision. It is of course a loan scheme, not a grant scheme, but it is central to the Government’s thinking and noble Lords will understand the aspiration for home ownership. The noble Lord, Lord Kennedy, touched on it himself in terms of his personal journey in the types of tenure that he has enjoyed.

Mention was made of developer contributions and infrastructure in relation to Section 106 and the community infrastructure levy. I will take up some of those points in a write-around, if I may, because time is pressing. There was a contribution made in relation to small and medium-sized builders, which I have touched upon. The home building fund, which we launched in October 2016, provides £1 billion of short-term loan funding for small builders, custom builders and innovators to help diversify the housing market. Some £2 billion of long-term funding for infrastructure is also available to small and medium-sized enterprises, and indeed others. These funds have both proved popular. As announced in the Autumn Budget, we have added an additional £1.5 billion for loans to small and medium-sized enterprises, custom builders and innovators. It is our belief that this will help with delivery and of course also help small and medium-sized builders. I share the aspiration that many have expressed that we need to move the emphasis back to small and medium-sized businesses, which are more flexible and should be able to take up some of the slack here.

In addition to ensuring that small and medium-sized enterprises have the financial support that they need, we have also responded to concerns about access to viable land and the unnecessary planning burdens that the sector faces. Proposals in the White Paper include increasing the availability of small sites through changes to the National Planning Policy Framework. The right reverend Prelate the Bishop of Newcastle referred to this. We have set out that at least 20% of the sites allocated for residential development in local plans should be sites of half a hectare or less. We also want to make information available so that small companies know what land there is to build on through the brownfield registers. Increasing planning fees to enable local authorities to provide a faster and better planning service should also help in that regard.

Further planning reforms were announced in the Autumn Budget, which will help to ensure that local authorities produce up-to-date local plans and take steps to increase density in urban areas by delivering more small and brownfield sites. I think this was something that my noble friend Lady Neville-Rolfe touched upon. We will continue to simplify the planning system in order to reduce the burden on business and to stimulate housing supply.

On leasehold reform, which was raised by my noble friend Lord Hunt and the noble Lord, Lord Turnbull, with few exceptions the Government cannot see any good reason for new-build houses to be built and sold on a leasehold basis. It is for this reason that we have asked all builders who use the Help to Buy equity loan scheme to stop selling leasehold houses with Help to Buy support. We have written to all developers to strongly discourage the use of Help to Buy equity loans for the purchase of leasehold houses in advance of new legislation. Although it is not possible to impose a requirement on developers to stop building leasehold houses under existing contracts, this is an opportunity for housebuilders to get on to the front foot and show that they are putting their customers first by recognising that the unnecessary use of leasehold on new houses has to end as quickly as possible. We will be monitoring the sale of leasehold houses through the scheme and will take further action, as appropriate, if we are not satisfied that builders are working on this important issue—we will be watching like hawks.

A question was about existing leaseholders. We are working with the Law Commission to see what can be done in relation to these matters. I will expand on that in the letter that I will send to contributors to the debate. The Secretary of State has written to developers to make this position absolutely clear.

Housing guarantees were touched on by noble Lords in relation to helping SMEs and providers of purpose-built rented housing. The announcement of £8 billion-worth of housing guarantees at Autumn Budget should help with delivery here. Therefore, we will work to engage the market over the coming months on the most effective way to deploy this guarantee capacity to pursue our housing goals. That, of course, will emphasise the work that we wish to do through the small and medium-sized housing providers.

Mention was made of supporting ambitious housing associations and local authorities to build. In 2016-17, 41,530 affordable homes were delivered. This represented a 27% increase from the previous year. However, I stress that we want to see more. To deliver more affordable homes, including at a social rent, we are investing £2 billion, as I mentioned. That will be subject to an announcement on how we are carrying it forward. As I indicated, we are also raising the housing revenue account borrowing cap. I think that was raised by the noble Lord, Lord Stunell, among others. Local authorities have shown that they share our ambition and we look forward to seeing how that plays out.

Mention of land banking and delivery was made by many noble Lords. Mention was also made of Sir Oliver Letwin’s review. It is important to recognise that a variety of factors can prevent development starting, but certainly sometimes this will be as a result of what is termed land-banking. The housing White Paper acknowledged that there was an issue here and at Autumn Budget we more than doubled the housing infrastructure fund, because this is sometimes an issue, investing an additional £2.7 billion, to take the total fund to £5 billion. This infrastructure issue was raised by my noble friend Lord True, the noble Baroness, Lady Thornhill, and others, including my noble friend Lord Hunt. Therefore, we will ensure that we invest in the right infrastructure, in the right places, so that new housing does not create additional strain on local communities and services.

As I say, we acknowledge that there are concerns that land may be being banked by major developers. We announced in the Budget a review panel, chaired by the right honourable Sir Oliver Letwin MP, to look into build-out rates. This review will provide an interim report in time for Spring Statement 2018 and a full report in time for Budget 2018. The review will have two parts. The first part, which Sir Oliver is working on at pace—he often works within the department—will seek to explain the significant gap between housing completions and the amount of land allocated or permissioned. This will be the focus of that interim review. As I say, initial engagement has already commenced. The second part will make recommendations for closing the gap, and will work to identify practical steps that could increase the speed of build-out. These recommendations will be published in the full report later this year.

Quality design is very close to my heart. I believe very strongly that we need a robust framework to ensure proper design. The Government have embedded design principles into the National Planning Policy Framework and guidance, and this will be further strengthened when we publish the new NPPF early this year. Emphasis is placed on achieving well-designed and distinctive new developments that add to local character and create distinctive neighbourhoods as well as contribute to creating healthy and attractive local places where people genuinely want to live. The essence of this is that it is about not just the number of houses delivered but the quality of the design and of the property. We can all point to poor design, where new characterless, featureless, pattern-book housing estates are the same across the country. This is in contrast to much new housing throughout the country, for example, in Cambridgeshire, where the Secretary of State is today, but in many other places as well.

It is important to say that the department has made great strides. We are creating a team of newly appointed design experts to be led by an architect with a research background. She will be in post by the end of January and will be supported by other design and planning advisers with experience in the sector. There is also a great opportunity to initiate in relation to new town developments. This fresh emphasis will help us to rise to the opportunities and challenges that exist.

To encourage people to put the message out there, the department will hold a major design conference in the spring in central London. The conference is an opportunity to signal to the industry what we seek to do. It will be attended by up to 400 representatives from developers, including large housebuilders, SMEs, local and central government, institutes, community representatives and others. All in all, our approach to raising design quality has attracted widespread support, not least from RIBA’s President, Ben Derbyshire, who said that,

“we see much in the way of promising activity from Westminster; the Design Quality Fund, a major conference on quality, the appointment of architects to advise on policy, a joint working group on modern methods of construction, and of course the creation of the new Ministry”.

The support that has attracted is welcome.

On modern methods of construction, I thank the noble Lord, Lord Taverne, for what he said, not least on the importance of skills. I know that the importance he attaches to this goes back a long way. He has always as a politician—from when he was an MP for Lincoln onwards—signalled the importance of our European partners. That will remain true after Brexit. We will need the relevant skills.

I welcome what was said in relation to climate change by the noble Baronesses, Lady Brown and Lady Maddock. I absolutely accept that it is important. We have international obligations in relation to climate change and so it is important to ensure that these things are built into housebuilding. I noted the work of an impressive housebuilder in Wales—not England—who charges the normal price for a four-bedroom house but builds them as if they were power stations, as it were. They are carbon neutral and British. They have everything that we should approve. The Government are looking at that important initiative.

I will draw to a close. I regret that time is short on this occasion. I will ensure that I pick up any points that I have missed. I will write round and, as I say, I will ensure that a copy of this debate is sent to all relevant people, as it has been first class. I thank all noble Lords who have participated.

Homelessness

Lord Bourne of Aberystwyth Excerpts

Tuesday 9th January 2018 Lords Chamber

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

My Lords, I beg leave to ask the Question standing in my name on the Order Paper and, in doing so, I draw the House’s attention to my relevant interests—namely, as a councillor and as a vice-president of the Local Government Association.

[The Parliamentary Under-Secretary of State, Ministry of Housing, Communities and Local Government and Wales Office (Lord Bourne of Aberystwyth) (Con)]

My Lords, based on the latest statistics available, in September 2017 79,190 households were living in temporary accommodation, and in January 2017 there were 4,134 rough sleepers.

[Lord Kennedy of Southwark]

My Lords, according to work undertaken by Shelter, approximately 120,000 children woke up on Christmas Day in B&Bs, hostels or other forms of temporary accommodation in England. Does the noble Lord agree that this figure shames our nation, and can he tell the House what work he and his department will do in the next 12 months to bring this figure down dramatically?

[Lord Bourne of Aberystwyth]

My Lords, the noble Lord’s figure is correct. This is from a high of 130,000 in 2006, when the homelessness level was at its highest. It is too high—there is no doubt about that—as has been clearly stated from all sides of the House. What are we doing? We are certainly committing £1 billion to tackle homelessness up to 2020, and that includes rough sleeping. As the noble Lord will have seen, we have made this a top priority. Although cosmetic in a sense, the change in the name of the department, which now features housing as clearly the most important thing that we are seeking to tackle as a Government, is important because it indicates the priority that we give to homelessness, and the £1 billion will help to bring those figures down.

[Lord Best (CB)]

My Lords, this House gave its very full support to the Homelessness Reduction Act, as it became. I pay tribute to Marcus Jones MP; he was reshuffled this morning but did a fantastic job getting that legislation through the House of Commons. The one matter on which we were all very anxious was whether there would be the resources to go with this important preventive legislation. Can the Minister reassure us that the money has been found so that when this starts in spring this year, local authorities will be able to do what we hope they will do—prevent homelessness as much as possible?

[Lord Bourne of Aberystwyth]

My Lords, the noble Lord is absolutely right about the Homelessness Reduction Act being at the centre of our action—in this regard, a preventive measure. I echo what he said about Marcus Jones’s role in that; it was considerable, as indeed was that of the noble Lord in seeking to ensure the Bill went through this House with government support, and I pay tribute to him as well. I can confirm that the money that was committed under the new burdens doctrine—from memory, some £71 million—is being made available to help with the implementation of the Act. It is, as I said, very much at the centre of the action in this area.

[Baroness Grender (LD)]

My Lords, did the Minister see the Liberal Democrat report last week on empty properties, which revealed that there are well over 200,000 empty properties, of which one-quarter have been empty for five years or much longer? Given the negligible use of empty dwelling management orders, will the Minister undertake an urgent review of resource and powers for local councils so that they can bring those long-term empty properties back into use and help homeless families?

[Lord Bourne of Aberystwyth]

My Lords, I have not had the privilege of seeing that literature as yet, but I anticipate having the opportunity to look at it at some stage. The noble Baroness will know that there were powers in the Budget to ensure that the ability to charge a higher rate of council tax on empty properties is increased. That is being done. She will be aware also that the numbers have come down considerably over the past decade, although admittedly there is work still to be done.

[The Lord Bishop of St Albans]

My Lords, research by the charity Shelter suggests that if current government policy continues as it is, 83% of areas in England will be unaffordable to those on local housing allowances by 2019-20. What assessment have Her Majesty’s Government made of the effect of the freeze on levels of homelessness? When will that freeze come to an end?

[Lord Bourne of Aberystwyth]

My Lords, I thank the right reverend Prelate for that mention of Shelter, which is clearly very much a partner in this, working with us on the advisory committee on homelessness. We look forward to working with Polly Neate and Shelter, and with Crisis and other organisations, in seeking to get those figures down. As I have indicated, there are challenges throughout the country, but with the resources we are committing to this, both in financial and human resources terms, and the importance we are giving it across government, we are confident that we will hit the targets on new houses and bring down the homelessness figure at the same time.

[Baroness Redfern (Con)]

Will my noble friend tell me what action the Government are taking to ensure that more people who are homeless are able to access the private rented sector?

[Lord Bourne of Aberystwyth]

My Lords, it has been central to the Government’s thinking that we make more use of the private rented sector in seeking to ensure that people who are homeless have somewhere to go. This was extended from the social sector so that appropriate private rented sector property can be used for homeless people in temporary accommodation. That is very much at the heart of what we are doing. However, at the same time, it is important that we increase the supply side. Therefore, we are building more houses to take in more people from the temporary accommodation list, so that we can ensure that everybody has a home. That is central to our thinking.

[Lord Rooker (Lab)]

Does the Minister recall that in about 2002 the then Labour Government persuaded Louise Casey to come from Shelter into the Government and that, with the programmes she set up, we virtually eliminated rough sleeping by 2010? What is the main reason it has come back again?

[Lord Bourne of Aberystwyth]

My Lords, first, this is not a problem unique to the United Kingdom.

[Noble Lords]

Oh!

[Lord Bourne of Aberystwyth]

Secondly, there is only one country in the EU that does not face mounting numbers of rough sleepers and homelessness, and that is Finland. We have been careful to ensure that we have Finnish assistance on the advisory committee we are using. We are looking at this issue in a broad sense. It has not suddenly happened but it has increased over a period of time. Yes, it is a serious problem, as I have said on many occasions. We are committing resources to it and the noble Lord will be aware of our target of halving rough sleeping by 2022 and eliminating it by 2027.

[Lord Farmer (Con)]

My Lords, what are the Government doing to address the family and relationship breakdowns which drive so much youth homelessness, in addition to the relationship support they are giving to workless families, as this is relevant to only a tiny proportion of the affected population?

[Lord Bourne of Aberystwyth]

My Lords, my noble friend is right about the contribution to the homelessness figure of family and relationship breakdown. In relation to youth homelessness, which is obviously part of that, we have committed resources to the homelessness prevention programme. Over two-thirds of local authorities have taken up the assistance available there—prevention is the key—and, at the same time, we are also putting resources into the fair chance fund.

[Baroness Uddin (Non-Afl)]

The Minister said that £1 billion is available for homeless families but does he accept that that is not sufficient to feed all the people who needed support and help during the Christmas period? Does he accept that charities such as Crisis, Islamic Relief and Muslim Aid were critical components in feeding massive numbers of families and individuals? Will he commend their efforts to assist the Government where the Government have been sadly lacking?

[Lord Bourne of Aberystwyth]

My Lords, I am very happy to commend the work of many charities, both local and national, faith charities and other charities, over the Christmas period and at other times of the year. The noble Baroness mentioned some charities. St Mungo’s is another one: it helped massively at Euston station, for example, which I am sure we all saw. I am happy to commend the charities. We have been talking here, in the main, about the provision of housing rather than the provision of food and so on. The noble Baroness mentioned food as an issue—undoubtedly it is—but these resources are going specifically on housing.

Secure Tenancies (Victims of Domestic Abuse) Bill [HL]

Lord Bourne of Aberystwyth Excerpts

2nd reading (Hansard): House of Lords
Tuesday 9th January 2018 Lords Chamber

Moved by

[Lord Bourne of Aberystwyth]

That the Bill be now read a second time.

[The Parliamentary Under-Secretary of State, Department for Communities and Local Government and Wales Office (Lord Bourne of Aberystwyth) (Con)]

My Lords, I am delighted to be moving the Second Reading today. Domestic abuse is a devastating issue which has serious impacts on the victim, the victim’s family and, indeed, society as a whole. According to the crime survey, each year an estimated 1.9 million people in England and Wales suffer some form of domestic abuse. Not only does domestic abuse often place the victim in immediate physical danger; its emotional effect can create damaging, long-term impacts on the victims and their families, and place huge costs on society and the public purse. This short, targeted Bill is an important part of the Government’s wider aim of supporting victims of domestic abuse to leave their abusive situation, and ensuring that they and their families are provided with the stability and security they need and deserve.

The Bill will ensure that if victims of domestic abuse who have a lifetime social tenancy need to flee their current home to escape abuse and are granted a new tenancy, they are able to retain their lifetime tenancy in their new social home. The Bill achieves this by requiring local authorities to offer a further lifetime tenancy to existing lifetime tenants where the tenant needs to move or has recently moved to escape domestic abuse, and the local authority is satisfied that granting the new tenancy will reduce the risk of further abuse. This will apply not only to situations where the tenant themselves is a victim of domestic abuse but also where a member of their household, such as a child, has suffered domestic abuse.

The Bill applies to all local authorities in England and protects all lifetime social tenants in these circumstances, whether they have a secure local authority tenancy or an assured tenancy with a private registered provider of social housing. It will apply not only to situations where the tenant is a victim of domestic abuse but also where a member of the household, such as a child, has suffered domestic abuse.

The definition of domestic abuse in the Bill has been drawn widely, so it will apply not just to those who have suffered physical violence but also to victims of psychological, sexual, financial and emotional abuse, as provided by Clause 1(2).

The Bill delivers on a commitment that the Government made to this House during the passage of the Housing and Planning Act 2016. We gave a commitment that when local authorities moved to fixed-term tenancies in the future we would ensure that the regulations which specify when local authorities may grant a further lifetime tenancy would make this mandatory for victims of domestic abuse. The noble Baroness, Lady Lister of Burtersett, raised this issue—I am pleased to see her in her place—and I acknowledge her part in ensuring that we have come through with this legislation. It has been a pleasure dealing with the noble Baroness in that regard.

Primary legislation is necessary to deliver on this commitment. To be clear, the Bill does not create a new requirement for local authorities to rehouse lifetime tenants who are victims of domestic abuse, but it ensures that where a lifetime tenant is rehoused in these circumstances they do not lose their security of tenure. This is about removing an impediment that could prevent victims from leaving their abusive situation.

The Government are absolutely committed to supporting victims of domestic abuse—it is a high priority for the Prime Minister. That is why we have secured £40 million of dedicated funding in the spending review and invested £33.5 million since 2014 to support victims of domestic abuse. However, we want to go further and are carrying out a fundamental review of the commissioning and funding of domestic abuse services, which will conclude in the summer of this year. I look forward to updating noble Lords on the review’s progress.

The most recent lettings data show that from April 2015 to March 2016 about 1.6% of all social lettings were to existing tenants who moved to another social home to escape domestic abuse. While the numbers are relatively small, this is still more than 5,000 lives affected by domestic abuse and it is important that they are provided with the support they need to leave their abusive situation. The measures in the Bill will do precisely this and ensure that we do not create a barrier—

[Lord Campbell-Savours (Lab)]

What happens in the case of the abuser? In such circumstances, are the rights of the abuser—who may well end up being a single person—in no way affected by this legislation?

[Lord Bourne of Aberystwyth]

My Lords, the aim of this legislation is certainly not to do anything in relation to the abusing party; it is to protect the abused party. It is about the protection of the victim rather than doing anything in relation to the perpetrator.

The measures in the Bill will provide that protection and ensure that we do not create a barrier to victims of domestic abuse who are considering leaving their abusive situation by protecting the security of tenure of those who move to a new social home.

We recognise that there will be other circumstances in which it might be appropriate for local authorities to continue to offer lifetime tenancies at their discretion. We will set out those circumstances in regulations that we are currently developing. These regulations are affirmative and noble Lords will have the opportunity to debate them when they are laid.

I repeat that this is a targeted and short Bill. It was a hard-won opportunity for a specific situation. I look forward to hearing noble Lords’ comments and views on the Bill, and I beg to move.

--- Later in debate ---

[Lord Bourne of Aberystwyth]

My Lords, I thank all noble Lords who have participated in what has been an excellent debate across a range of issues connected with domestic abuse, sometimes going quite a bit further than the targeted and specific Bill before us. However, I will try to do justice to the contributions that have been made. Where I do not do so, either through lack of time, or more likely through lack of knowledge, I will make sure that those points are covered in correspondence to noble Lords and place a copy in the Library.

As many noble Lords have said, the evil and scourge of domestic abuse has come to the fore only relatively recently in the graphic terms it has. I am sure that in all quarters of the House, and indeed throughout the country, this issue is now very high on people’s agendas. As noble Lords have noted, most graphically the noble Lord, Lord Lipsey, the Prime Minister is very much wedded to ensuring that action is taken in this area to tackle what, as I say, is a real scourge. That point was also made by my noble friends Lady Hodgson and Lady Bertin, by the right reverend Prelate the Bishop of Gloucester in a powerful contribution, and indeed by the noble Baroness, Lady Lister. If this is what she can do on a day trip, imagine what she could do on a longer-term posting. I am not sure that the Labour Party will have the sense to ensure that that happens, but there we are. It has been a very good day’s work, if that is what it is—in all honesty, I think it has been more than that.

I also pay tribute to all the domestic abuse services throughout the country. I have seen some excellent examples of what has been done by local authorities over the last year to 18 months in Liverpool, Newcastle, Norwich, Fenland, Hampshire, London and elsewhere. I also pay tribute, as others have, to the work of some of our partner bodies: Refuge, Women’s Aid and many others that have worked incredibly hard on this area.

I thank noble Lords for their support for this targeted Bill. I repeat that it is very targeted—laser-like, almost. It is something I would like to see us bank. That is not to say that the other issues are not important, but to get this on to the statute book we have to keep it tight. That said, questions have been raised about the particular issue the noble Baroness, Lady Lister, raised on termination of a joint tenancy and somebody staying in the property. That is something I would like to have a look at, as I have indicated to her. Perhaps she and I, together with officials, could look to see a way forward there. I undertake to do just that.

Let me try to deal with some of the questions raised. For those that I am unable to deal with I will ensure that full responses go to noble Lords, who I am sure will appreciate that some of the questions are well beyond the department’s brief and certainly well beyond my knowledge, but I will make sure that full responses come forward.

I will deal first with the regulations. The noble Baronesses, Lady Lister and Lady Hamwee, in particular raised this, but many others touched on it as well, such as the noble Lord, Lord Shipley. As I said, we are working on those regulations. I will certainly cover in a letter to noble Lords exactly where we have got to on them. When the Housing and Planning Act went through I think we discussed one particular situation where people downsize. That is certainly something that we would want to cover. I will make sure that noble Lords are updated on that ahead of Committee.

I was also asked by various noble Lords about evidential requirements. I am always grateful for noble Lords exaggerating my powers, but I do not think I am in a position to pontificate on precise evidential requirements that come forward relating to establishing domestic abuse. This is something that local authorities have to identify. I will certainly cover this again in a letter, but the legislation deliberately does not go into this because those decisions are currently being made, as far as the department can see, very effectively. Obviously practice will vary from area to area, but this is a matter that is dealt with at present.

[Baroness Lister of Burtersett]

I am sorry to interrupt the noble Lord. I do not think anyone is suggesting that it should be put in the legislation but, given that there has been a consultation on guidance to local authorities, which someone said has just ended, would it not be appropriate for that guidance to include guidance to local authorities about how to implement this Bill and the evidence they should be looking for? I think that is what noble Lords were saying.

[Lord Bourne of Aberystwyth]

I am grateful to the noble Baroness. As I said, this is something local authorities are doing already. They have to make decisions about identification of domestic abuse at present without this legislation. I am saying that the legislation is not altering the position. I will happily cover that in the letter, if I may.

There was a question regarding training for local authorities. Training goes on at the moment. The new code of guidance on homelessness will advise local authorities about the need to have appropriate policies and training in place. We provide funding to the National Homelessness Advice Service to provide training, which is taken up by many—probably most—local authorities. For example, we provided funding to the National Practitioner Support Service for domestic abuse awareness training for front-line housing staff in 2016. That trained 232 front-line housing staff across nine English regions. In addition, a number of local authorities used funding from our £20 million fund for specialist accommodation-based support and service reform to meet the priorities for domestic abuse services to provide training programmes. So training is going on at the moment. Again, I will expand on that in the letter that I will ensure goes to noble Lords.

Broader questions were raised, many of which I can understand and empathise with. The noble Lord, Lord Porter, said that I would have been disappointed if he did not raise the issue of supply. I am not sure that “disappointed” is the mot juste, but he is right that I would have been surprised. Clearly, there is an issue of supply, so perhaps I would have been disappointed; we cannot be complacent about the supply of housing across the piece, and we need to look at that.

Other noble Lords, including my noble friends Lord Farmer, Lady Manzoor and Lady Hodgson, raised broader questions about the need to ensure that this agenda is carried forward however hard pressed the legislative programme is. I certainly agree with that and give the undertaking that the Government will do so, because it is absolutely at the forefront of our thinking.

The noble Baroness, Lady Burt, raised some pertinent questions, some of which were picked up by the noble Lord, Lord Campbell-Savours. The noble Lord, Lord Shipley, is right that there is power in present legislation for perpetrators of domestic abuse to be forced out of the premises in question. I will endeavour to find out how that is being used, because, as noble Lords indicated, there is clearly a question about how effective it is. I will see what statistics we have and ensure that whatever evidence we have comes round before Committee stage. It is a valid point: we are tending here, understandably, to focus on the victim, but we want not to advantage the perpetrator of the domestic abuse. Often—perhaps not as often as one would like—there will be criminal proceedings and the perpetrator will end up in prison, but there is not any guarantee of that. As we know, some domestic abuse is more insidious; it is not always direct, physical violence, so I accept that there are issues of evidence and proof. I will see what I can find on that, because it is important to look at this issue further.

[Lord Campbell-Savours]

I understand that, under the Small Tenements Recovery Act 1838, it was possible for a local authority to go to a court and evict without having to produce the justification. The position as I understand it from the noble Lord, Lord Shipley, is that there would have to be a proceeding and the court would then have to decide whether it was satisfied that the abuse was sufficient to warrant. I am asking this question because I am not altogether convinced that local authorities, realising that they may have to go into proceedings to argue the scale of the abuse, will be prepared to do it. They may say, “It’s better from our point of view simply to leave the abuser in place without taking any action”. That is why it is important that the Minister follows this up in some detail.

[Lord Bourne of Aberystwyth]

My Lords, the noble Lord makes a powerful case that I accept. As I have said, I want to see how much this provision is taken up, how effective it has been over the years and the number of cases where perhaps it might have been used but has not.

I shall try to pick up some other points that were raised. Any that I have not covered I will ensure are covered in the write-around. The noble Lord, Lord Shipley, raised a question about the consultation that has just closed on residence tests. I will ensure that that is taken up. It has just closed, he is absolutely right. We anticipate that the residence requirement—or the non-residence requirement—will be carried forward to ensure that victims of domestic abuse are placed in the position he indicated and that I agree with him that they should be in.

The most important thing I can do, in closing, is to give an undertaking in relation to the very pertinent point raised by the noble Baroness, Lady Lister, about the termination of joint tenancies. I will follow that up. Some of the other specific points that were raised were a little off-piste—legal aid and so on—but if the noble Lord, Lord Lipsey, wants a fuller response I will make sure that it comes to him, but that will not be in the context of this Bill.

I thank noble Lords very much for their support, which will make it much easier to carry this legislation through and then to tackle the domestic abuse situation on a broader front. In closing I once again thank the noble Baroness, Lady Lister, whose rigour and charming determination has ensured that we are where we are today.

[Lord Kennedy of Southwark]

Before the noble Lord sits down, I think it is fair to say that in the debate this afternoon there were two groups of issues. One group covers a wider area and is probably not in scope for amendments and stuff, but there are some other points where noble Lords raised some practical issues about the legislation and how we go forward with things. I am sure that the noble Lord will be available to meet Members of the House to discuss these. We do not want to get the Bill on the statute book and find ourselves, six months down the line, thinking, “If we had only put a little amendment in, this could have solved another problem”. I think that some of the issues raised around the House deserve further attention before Committee.

--- Later in debate ---

[Lord Bourne of Aberystwyth]

Let me deal with the devolved Administrations point first. As noble Lords can imagine, with my background I am usually very hot on devolved Administration situations. First, we clearly have areas where we can legislate and areas where we cannot. In Scotland, we are not in a position to legislate: this is something that is devolved. That said, we have established relationships with officials—I did ask this of officials—where this sort of issue is raised. I am sure that, in this event, it would be done at official level to ensure that something could be done on the basis of reciprocity. One thing I was very keen on in DCLG, and carried forward, is that we established a devolved forum where such issues are looked at, because we want to have best practice across the four legislatures within the United Kingdom. It is being done at that level, if I can cover it that way. I had a written note on this but I missed it when I was reading my notes.

In relation to somebody who has a tenancy in Hounslow, let us say, and wants to move to Doncaster, that will be, if not the norm, a pretty common situation. The intention is for the legislation to cover that. The point on the devolved Administrations is that it has to be done on the basis of reciprocity, rather than legislation, but it is central to the legislation that we want to cover the Luton-to-Leicester situation that the noble Baroness referred to.

The noble Lord, Lord Kennedy, referred to points that we would not want to miss. I agree, but with the proviso that it has to be within the very targeted scope of this legislation. There may be very many desiderata that we would want to do that are not within the commitment that we gave to the noble Baroness, Lady Lister, and I would not want this legislation to be opened up on that basis. However, within the scope of delivering the commitment that we gave to the noble Baroness, Lady Lister, and that is in the manifesto, and extending it to look, as I have indicated we will, at the very particular situation, I would not want to open it up on too broad a front, otherwise we risk losing the legislation. I make that gentle point. I am very happy to discuss points but, as I say, I do not want to raise false hopes about having a large piece of legislation here: this is very specific and targeted at a specific promise.

Bill read a second time and committed to a Committee of the Whole House.

MV “Empire Windrush”

Lord Bourne of Aberystwyth Excerpts

Monday 8th January 2018 Lords Chamber

[Baroness Benjamin (LD)]

My Lords, I beg leave to ask the Question standing in my name on the Order Paper and declare an interest as a patron of the Windrush Foundation.

[The Parliamentary Under-Secretary of State, Department for Communities and Local Government and Wales Office (Lord Bourne of Aberystwyth) (Con)]

My Lords, the United Kingdom has long been a country of inward and outward migration. Post-war immigration, including via MV “Empire Windrush”, which was in many ways at the forefront of this migration, means that we are now a richly diverse society. I will be meeting key figures from community groups over the coming weeks to decide how best to celebrate this anniversary. I would also welcome input from the noble Baroness and from noble Lords throughout the House.

[Baroness Benjamin]

I thank the noble Lord for that Answer. “No coloureds welcome” was the sign that the Windrush pioneers faced in 1948 because the Government did not make it absolutely clear that the Caribbean people were invited to come to the UK to rescue the NHS, the transport system and factories after the war. Today, many descendants of those pioneers do not know that part of their history, as it is not generally taught in schools. As the Prime Minister wants everyone to feel included in our society, will the Government create a Windrush Day, recognising the outstanding contribution that the Windrush generation has made to Britain?

[Lord Bourne of Aberystwyth]

My Lords, the noble Baroness makes powerful points. Of course, there is a Windrush Day—on 22 June. This year, as she will know, we unveiled a monument in Windrush Square in Brixton as a tribute to the role played by troops from the Caribbean and Africa. Educationally, particularly in Black History Month, we also pay more than reference to what was done by that community. However, as I have said, it is important that we recognise the 70th anniversary, as we are intending to do. Heritage Lottery Fund money has already been forthcoming for the year from November 2017 to November 2018 to help mark the Windrush landing, but, as I said, I am very willing to talk to the noble Baroness and others. I think that we have a forthcoming debate on how to commemorate this anniversary.

[Lord Tomlinson (Lab)]

Will the Minister pay tribute to the early views of Enoch Powell in encouraging immigration to this country, even if, later, he was somewhat aberrant in his views when he no longer had ministerial responsibilities?

[Lord Bourne of Aberystwyth]

My Lords, the noble Lord will understand that I and indeed the Government are keen to look forward. We recognise that there is a world of difference between 1948 and the 1960s and even the 1970s, in that we are now a much more cohesive and diverse society. We must look forward and, in that spirit, it is important that we recognise the changes and the progress that have been made, celebrating Windrush Day, as the noble Baroness, Lady Benjamin, has been urging us to do.

[Baroness Berridge (Con)]

My Lords, I am grateful to hear from the Minister that there will be meetings and consultations, but celebrations cost money. Can he guarantee that, in addition to the Heritage Lottery Fund sum, funds will come from central government to ensure that the celebrations are of a fitting nature?

[Lord Bourne of Aberystwyth]

My Lords, I thank my noble friend. She is right: these things always come with a bill. She will understand that I do not have the cheque book with me and at the moment I do not intend to say how much will be spent. It is important that we do this in a meaningful way, although it is not just about the money; it is a case of ensuring that we have community involvement in this regard up and down the country.

[Baroness Burt of Solihull (LD)]

My Lords, my noble friend Lady Benjamin talked about some of the initial attitudes towards the people who came on the “Windrush”, as well as indeed towards their descendants. I wonder whether the Minister thinks that, despite changes to the law, attitudes such as those have fundamentally changed in this country. What are the Government doing to create an inclusive country, where the contributions of all are recognised and celebrated?

[Lord Bourne of Aberystwyth]

My Lords, I think that there have been fundamental changes in this country and the views of most people. Are we yet there with everybody? No, of course not; there are still challenges out there. As the noble Baroness will know, the Prime Minister initiated the race disparity audit, for example, which most people in the House and the country would welcome. We are now entering the next phase, in which departments are being asked to respond to the data and come up with policies and actions as to how we are going to tackle that. So we are not there yet, but most fair-minded people would say that there has been significant progress and continues to be so. However, we must press forward, and there are still challenges ahead.

Brexit: Affordable Housing

Lord Bourne of Aberystwyth Excerpts

Thursday 21st December 2017 Lords Chamber

[Lord Greaves]

To ask Her Majesty’s Government what is their assessment of the impact of the United Kingdom leaving the European Union on the provision of housing that people can afford.

[The Parliamentary Under-Secretary of State, Department for Communities and Local Government and Wales Office (Lord Bourne of Aberystwyth) (Con)]

My Lords, the Government are committed to achieving an ambitious EU exit deal and building the homes that this country needs. In pursuing its housing policies, DCLG engages widely with stakeholders across the housing sector. The Government are on track to raise housing supply, by the end of this Parliament, to its highest annual level since 1970 and then to 300,000 per year on average by the mid-2020s.

[Lord Greaves (LD)]

My Lords, I wish the Government the best of luck in that endeavour and will be happy to welcome it when it happens. Only yesterday, the Federation of Master Builders issued the result of a survey of small and medium-sized construction firm members, in which three-quarters of them said that it would have a negative impact on the health of their business if any of their EU workers returned to their country of origin. The figure for the value of these workers was much higher as well. What are the Government doing to make sure that workers from European Union countries working in the construction industry—many of them building houses—do not stay away, as is being suggested, even after this Christmas?

[Lord Bourne of Aberystwyth]

My Lords, the noble Lord is right to highlight the importance to the construction sector of workers from the EU; they constitute about 18% across the country, although obviously it is higher than that in some parts of the country and certainly in London. The Government are of course very much aware of this and it is part of our negotiations. The noble Lord will be aware that we have made a fair and serious offer to protect the rights and entitlements of EU nationals, which is all part of making sure that we extend a welcome to those people who are part of the fabric of our life and who are very important to our economy.

[Lord Forsyth of Drumlean (Con)]

My Lords, I declare an interest, as on the register, as chairman of a bank. Does my noble friend agree that the decision by the European Banking Authority to increase the cost of capital for banks that lend to small and medium-sized builders from 100% to 150% has added hugely to the cost of building houses, and that, once we have left the European Union, the Bank of England will be free to set rules that reflect the interests of our economy and the policy of Her Majesty's Government to encourage more housebuilding?

[Lord Bourne of Aberystwyth]

My Lords, my noble friend is, of course, right about the adverse effect that the decision to raise those interest rates will have on the construction sector in the United Kingdom and elsewhere, and he is right to say that the Bank of England will have increased freedom once we leave the EU. However, of course, banks have to compete in an international environment as well.

[Baroness Smith of Basildon (Lab)]

My Lords, as Christmas is upon us we all think of those who are homeless, as was raised in the other place just yesterday. Last year, the European Investment Bank invested £1 billion in social housing projects in the UK. That made it the largest investor in social housing here at home. Yet now Article 50 has been triggered, it is saying that that investment will stop. What plans do the Government have to replace that investment, and how will the Minister address the plight of the homeless this Christmas and in the future without that investment?

--- Later in debate ---

[Lord Bourne of Aberystwyth]

My Lords, first, the noble Baroness is right that our thoughts, particularly at this time of year, are very much with the homeless and rough sleepers, which very much presents a problem in the United Kingdom and elsewhere. She is also right that the European Investment Bank invests significantly in this area, but other banks do too. We have obviously invested a lot in terms of our own domestic budget recently—with the social impact bond, for example, which is having an effect. I spoke yesterday to the noble Lord, Lord Bird, about an initiative that he is involved in in a parallel way. So there is a lot going on. But the noble Baroness is right to highlight the importance of ensuring that we plug the gaps of some investment that will not be there in future.

[Lord Hamilton of Epsom (Con)]

My Lords, does not my noble friend’s view on the housing market contrast somewhat with the threats we were given during the referendum campaign from the then Chancellor, backed by the Governor of the Bank of England, that interest rates were going to soar if we voted out—they have gone down—and that housing prices would drop like a stone, whereas they have gone up? Are we not actually rather blessed by Brexit, rather than the reverse?

[Lord Bourne of Aberystwyth]

My Lords, the Government are focused resolutely on the future as to how we ensure that we get a very good deal that is very much in the interests of the UK and the deep and special partnership with the European Union that we seek. As he will know, negotiations have turned a corner; we seem to be on a very firm footing to ensure that we get that deep and special partnership with the European Union, and negotiations go on on that basis.

[Baroness Andrews (Lab)]

My Lords, can I bring the Minister back to the question that my noble friend asked about the £1 billion that we get from the European Investment Bank? Unfortunately, he did not answer the question. How is he going to replace it, and what can we expect the mechanism to be for that additional social housing that we so badly need?

[Lord Bourne of Aberystwyth]

My Lords, the noble Baroness will know that it is not quite as simple as she makes it sound. It is not £1 billion that comes from nowhere; it comes in relation to the fact that we pay into the European Union as well as take out. So I remind the noble Baroness gently that it is not quite as simple as she makes it sound.

I did answer the question by saying that there was obviously a gap that needs plugging. We are doing that in terms of measures in the Budget that she will be aware of on homelessness. We have £1 billion committed to tackling homelessness and rough sleeping. That is a significant measure to tackle a deep-seated problem. She will also have heard me say that this is not just an issue for government; it is an issue for local authorities, our partners and for individuals.

[Lord Wallace of Saltaire (LD)]

My Lords, I am told by social housing associations in Yorkshire that the big building companies are deeply reluctant to take on apprentices and train our own people. They find it cheaper and easier to recruit directly from eastern Europe and that does not get in the way of the bonuses they offer their executives. Given that the big building companies are now extremely profitable, what can the Government do to bring pressure on them to increase the number of apprentices they take on and to train our own workers?

[Lord Bourne of Aberystwyth]

My Lords, the noble Lord raises a very interesting point. I have not seen the example that he mentioned. However, it is the case that we need to increase the take-up of apprentices up and down the country, which I think is happening in parts of the country. He will also be aware, of course, that in the Budget we took measures to ensure that there is movement towards encouraging small and medium-sized building enterprises rather than just the large builders. That element of competition will help address the problem that he raises.

Budget Statement: Social Housing

Lord Bourne of Aberystwyth Excerpts

Thursday 21st December 2017 Lords Chamber

[Baroness Grender (LD)]

My Lords, on behalf of my noble friend Lord Shipley, and at his request, I beg leave to ask the Question standing in his name on the Order Paper.

[The Parliamentary Under-Secretary of State, Department for Communities and Local Government and Wales Office (Lord Bourne of Aberystwyth) (Con)]

My Lords, this Government’s priorities are to boost housing supply and to build more affordable homes, supporting the different needs of a wide range of people. This is why we have recently announced £2 billion of additional funding for social rent in our flexible affordable homes programme, increasing the budget to over £9 billion, and a £1 billion lift to the housing revenue account borrowing cap in areas of high-affordability pressure. This allows providers to have the flexibility and agility to respond to local needs and markets, building the right homes in the right places. The precise number of homes and tenure types will depend on the bids received.

[Baroness Grender]

As this Government promised an increase in social housing in both the 2015 and the 2016 Budgets, but built less social housing last year than at any time since the Second World War—indeed, it has fallen by 50% in the last three years—why on earth should we believe them this time and this year, when every social home not built last year means another family homeless this Christmas? Why not lift the cap on all local authorities and allow council house building to begin again?

[Lord Bourne of Aberystwyth]

My Lords, first, the noble Baroness is right that this is a significant challenge. The reason that she and noble Lords should accept that this measure is genuine is the £2 billion uplift in the Budget. In the new year, we will announce proposals for how that will be spent, and what measure of it will be on social housing. The noble Baroness should also bear in mind that, although there is great pressure on social housing in areas of high affordability, we are able to build more affordable houses with a certain amount of money than social houses—so it is a question of getting the balance right. That is why we are focusing this measure on areas of high affordability rather than applying it across the country as a whole, as she suggested.

[Baroness Morris of Bolton (Con)]

My Lords, as welcome as extra social houses are, will my noble friend and the Government ensure that we build attractive homes? Just because homes are affordable does not mean they have to be ugly. We should pay as much care and attention to the surroundings and well-being of those in social homes as we do to those in the private sector.

[Noble Lords]

Hear, hear.

[Lord Bourne of Aberystwyth]

My Lords, my noble friend is absolutely right. As she will have appreciated, there is support from around the House for that very valid point. I think that the noble Baroness, Lady Andrews, led a debate on this very issue of design and the importance of the environment. The department is going through a process of appointing somebody who will take this very much on board. It is a subject very close to my heart. It is very important in terms of well-being and our environment that we do just as my noble friend suggested.

[Baroness Blackstone (Lab)]

My Lords, the targets the Government have set will not be met unless more land is made available. Could the Minister say what the Government intend to do about making available public land in particular? A number of government departments are sitting on large amounts of brownfield land which could be made available for housing. Could it be made available at a price that housing associations and local authorities are likely to be able to afford so that they can build the social housing that is needed?

[Lord Bourne of Aberystwyth]

The noble Baroness is right, and I will write to her about the detail of this. However, there is a £45 million budget at the land release fund; we have had bids in relation to that and we will announce the progress of those bids early in the new year. I will write to the noble Baroness with details of the progress on that and will make the letter available in the Library.

[Lord Hylton (CB)]

My Lords, will the Minister agree that the first thing to do is to reduce the number of vacant dwellings, and, secondly, to increase the supply of social housing, particularly by local authorities and housing associations? Will the Government try to emulate the achievements of Prime Minister Macmillan in his day?

[Lord Bourne of Aberystwyth]

My Lords, on the first point the noble Lord made about empty properties, the Government have indeed been tackling that issue: in the last Budget we increased the powers for local authorities to charge more council tax for empty properties, which is an important move in that direction. However, I agree with the noble Lord about the importance of targets, and particularly about the record of Macmillan in the 1960s. As I say, the Government’s target would take us back to what seem like the halcyon days of 1970, when we were building far more houses than we are now.

[Lord Geddes (Con)]

Can my noble friend advise what steps the Government are taking to ensure that social houses, when built, are energy efficient?

[Lord Bourne of Aberystwyth]

My Lords, obviously there are building regulations that have to be complied with, which have been tightened in the past to ensure that they are greener—that is important. We have strict, ambitious and appropriate climate change goals following the COP 21 climate change conference in Paris some two years ago, which are very much part of the Government’s thinking—and again, I think that they have cross-party support from around the House, which is not always the case in other countries in Europe.

[Baroness McIntosh of Hudnall (Lab)]

My Lords, on the related topic of affordable housing, will the Minister explain to the House how the Government propose to tackle—as I understand they do—the frankly disreputable practice of a lot of developers of adding onerous ground rent conditions to ostensibly freehold properties, and other practices which are not in the interests of people attempting to secure housing?

[Lord Bourne of Aberystwyth]

I thank the noble Baroness very much for raising that issue, not least because there is a Written Ministerial Statement on that subject today—so we are taking that forward. The noble Baroness will appreciate that we have been consulting on this; it has perhaps got lost in today’s news but it is certainly the subject of a Written Ministerial Statement, which will be available, and I encourage Peers across the House to look at that. We are taking it forward.

[Lord Crisp (CB)]

My Lords, I undertook a review of adult mental health in this country, which showed that too many people were stuck in mental health hospitals and that the single biggest issue was lack of housing. Can the Minister please let us know how the Government are aligning their policies on housing with their policies on mental health, and what they are doing to ensure that appropriate housing is available for people with mental health problems?

[Lord Bourne of Aberystwyth]

My Lords, the noble Lord raises an important question about helping those who have mental health issues, and he is right that many of them are inappropriately housed. The recent announcement we made, I think by Written Statement at the end of October, does things in relation to supporting housing grant that makes the position of people with mental health problems in supported housing much easier. We hope that that should lead to an uplift in the number of people in supported housing, as it is much more appropriate that they are housed there.

Local Government Finance Settlement

Lord Bourne of Aberystwyth Excerpts

Tuesday 19th December 2017 Lords Chamber

[The Parliamentary Under-Secretary of State, Department for Communities and Local Government and Wales Office (Lord Bourne of Aberystwyth) (Con)]

My Lords, with the permission of the House, I would like to repeat a Statement made by the Secretary of State in the other place earlier today. The Statement is as follows:

“With permission, Mr Speaker, I would like to make a Statement on funding for local authorities in England next year. From 2015 to 2020, councils in England have access to over £200 billion to deliver the high-quality services their local communities need. They deserve no less. Local government is the front line of this country’s democracy, with councillors and officers working at the heart of the communities they serve. But to make the most of that local knowledge, councils need greater control of the money they raise, they need greater freedom to tackle challenges in their areas, and they need the certainty and stability that will allow them to plan ahead. This Government are committed to delivering that, and today I am publishing a draft local government finance settlement that marks an important milestone in the journey to doing so. It comes in the third year of a four-year deal that was accepted by 97% of councils in return for publishing efficiency plans. We will continue to work with the sector to help it increase transparency and share best practice, supporting greater progress in delivering increased efficiency over the coming year. I expect this to have a tangible impact on the steps councils take to promote efficiency from 2019-20.

Local government operates in a society that is constantly changing and the system of financing local government needs to reflect that. The current formula of budget allocations has served councils and communities well over the years, but to meet the challenges of the future, we need an updated and more responsive distribution methodology—one that gives councils the confidence to face the challenges and opportunities of the future. So I am today publishing a formal consultation on a review of relative needs and resources. I aim to implement a new system based on its findings in 2020-21.

Alongside the new methodology, in 2020-21 we will also be implementing the latest phase of our business rates retention programme, a scheme that gives local councils the levers and incentives they need to grow their local economies. The aim is for local authorities to retain 75% of business rates from 2020-21. This will be through incorporating existing grants into business rate retention, including revenue support grant and the public health grant. Local authorities will be able to keep that same share of growth on their baseline levels from 2020-21, when the system is reset. From 2020-21 business rates will be redistributed according to the outcome of the new needs assessment, subject to suitable transitional measures.

A number of 100% retention pilots have already been announced, and these will continue. A further pilot will begin in London in 2018-19 and we had intended that a further five pilots would begin that same year. However, interest in the scheme was such that we will now be taking forward twice as many as planned. I am pleased to announce today that the new pilots will take place in Berkshire, Derbyshire, Devon, Gloucestershire, Kent and Medway, Leeds, Lincolnshire, Solent, Suffolk and Surrey. The first batch of pilots are taking place largely in urban authorities; the second wave will mainly cover counties. This ensures that councils right across the country will benefit, that the scheme can be tested in a wide range of environments, and that the benefits of growth are broadly comparable between London, existing pilots and new pilots. We received so many applications to take part that we will continue to pilot business rate retention in 2019-20. Full details will be published in due course.

Over the past year my Ministers and officials have been listening to councils of all shapes and sizes, understanding their concerns and working together to develop ways of tackling them. The result of those conversations is reflected in this draft settlement. For example, rural councils have expressed concern about the fairness of the current system, with the rural services delivery grant due to be reduced next year. So today I can confirm that I will increase the rural services delivery grant by £15 million in 2018-19, meaning that the total figure will remain at £65 million for the remainder of the current four-year settlement.

We have also heard concerns about proposed changes to the new homes bonus. To date we have made almost £7 billion in NHB payments to reward the building of 1.4 million homes. Over £946 million in new homes bonus payments will be allocated in 2018-19, rewarding local authorities for their work in fixing our broken housing market. I consulted on proposals to link new homes bonus payments to the number of successful planning appeals and considered raising the new homes bonus payment baseline. Following conversations with the sectors, I have been persuaded of the importance of continuity and certainty in this area. So today I can confirm that in the year ahead no changes will be made to the way new homes bonus payments work and that the new homes bonus payment baseline will be maintained at 0.4%.

As I set out in the housing White Paper, local authorities will be able to increase planning fees by 20% where they commit to investing the additional income in their planning services. This is a significant step towards addressing the widespread concerns of underresourced local planning authorities. Following discussions with the sector I am also announcing a continuation of capital receipts flexibility for a further three years. This scheme gives local authorities the continued freedom to use capital receipts from the sale of their own assets. This will help fund the costs of transformation and release savings.

One particular issue causing concern for some councils is so-called negative RSG. This is where changes in revenue support grant have led to a downward adjustment of some local authorities’ business rates top-up or tariff for 2019-20. I recognise the strength of feeling in local government around this issue, so I can confirm that my department will be looking at fair and affordable options for dealing with negative RSG and will formally consult on proposals in the spring, so that the findings are in ahead of next year’s settlement.

Of course, anyone who has spoken to anyone in local government will be aware of concerns about funding for adult and children’s social care. That is why, over the past 12 months, we have put billions of pounds of extra funding into the sector, and why the Department for Education is spending more than £200 million on innovation and improvement in children’s social care. At spring Budget, an additional £2 billion was announced for adult social care over the next three years. With the freedom to raise more money more quickly through the use of the social care precept that I announced this time last year, we have given councils access to £9.25 billion more dedicated funding for adult social care over three years. But we also need to find a long-term solution to challenges that are not going to go away. That is why we have already announced that a Green Paper on future challenges within adult social care will be published in the summer of 2018.

Finally, I am conscious of calls for further flexibility in the setting of council tax. While we all want to ease growing pressure on local government services, I am sure that none of us wants to see hard-working taxpayers saddled with ever-higher bills. This settlement strikes a balance between those two aims, giving councils the ability to increase their core council tax requirement by an additional 1% without a local referendum, bringing the core principle in line with inflation. We have abolished Whitehall capping. Under the Localism Act, local government can increase council tax as it wishes, but excessive rises need to be approved by local residents in a referendum. This provides an important check and balance against the excessive increases seen under the last Labour Government, when council tax bills doubled.

This change, combined with the additional flexibility on the adult social care precept that I confirmed last year, gives local authorities the independence they need to help relieve pressure on local services such as adults’ and children’s services, while also recognising that many households face their own pressures. In addition, directly elected mayors will decide the required level of precept by agreement with their combined authorities. I am sure that voters will be watching closely to ensure that this freedom is not abused—as will I.

I can also confirm that the Government intend to defer the setting of referendum principles for town and parish councils for three years. This is subject to the sector taking all available steps to mitigate the need for council tax increases and the Government seeing clear evidence of restraint in the increases set by the sector as a whole. I have also agreed measures with the Home Secretary to make it easier for police and crime commissioners to meet local demand pressures by allowing a £12 council tax flexibility for police services, raising an additional £139 million to support our police.

This settlement recognises the need to keep spending under control while also tackling many of the issues that have been raised by local government over the past year. With two years of real-terms increases in resources available to local government, it will give local authorities the funding and freedom they need to make decisions in the best interests of the communities they serve. It is a settlement that offers councils the resources they need, the stability they have requested and the fairness they deserve, and I commend it to the House”.

My Lords, that concludes the Statement.

--- Later in debate ---

[Lord Shipley (LD)]

My Lords, I remind the House that I am a vice-president of the Local Government Association.

The key test of this Statement is whether the provisional finance settlement will alleviate the general funding pressures facing local councils. I think that the answer to that question is: hardly at all. As the letter from the Communities Secretary accompanying the Statement explains, the resources available for local government will rise from £44.3 billion in the current year, 2017-18, to £45.6 billion in two years’ time, 2019-20. This represents an increase well under the current rate of inflation and does not reflect rising demand to the extent that it should. In recent years, pressures have grown significantly because of year-on-year underfunding. In the end, the question is how much is local government actually receiving to spend overall, and not simply how much is it going to have over the next two years? Nevertheless, I welcome the extra support allocated for rural services and the thinking on the new homes bonus and negative RSG. However, I hope the Minister will be able to say a further word about government thinking on business rates and what their ultimate objective is.

As I understand the Statement, there is to be an extension to the number of 100% business rate retention pilots. At the same time, all local authorities will be able to keep more of their business rate income, equivalent to 75% overall in 2019-20. Alongside this, there will be a new system of fair funding—or at least I assume that that is the objective. That will be introduced from 2020-21. For the new system to succeed it will require redistribution to reflect needs and resources. Will the Minister say a further word about what the Government are trying to do? Are they trying adequately to reflect needs and resources, or are they aiming at 100% business rate retention? If the latter, where will the support needed for poorer authorities come from?

We have heard about the pressures on children’s and adult social care. There is an issue of principle here. This time last year, I said that council tax should not be used to make up deficits in resourcing, particularly as demand rises in children’s services and adult social care. I do not understand why it should take 15 months from the announcement in March this year of some extra central funding for adult social care to the production of a Green Paper in the summer of next year to discuss the problems of adequate funding for adult social care. I think that the problem is much more urgent than that.

To take another example of things happening too slowly, the 20% increase which is to be permitted for planning fees was debated in your Lordships’ House many months ago. There is a demand now for additional planning expenditure, so I wish government could work a bit more quickly in dealing with some of the real problems on the ground.

There is a question about council tax referendum principles and the right of councils to increase council tax by the rate of inflation without a referendum. I would prefer that there were no referendum system at all and that local authorities were freed up to make the decisions they think are right in their area. In the end, they will face the verdict of voters through the ballot box. What is happening is that the Government are increasing council tax further. As I understand it, an extra 1% is to be permitted without a referendum so that, in practice, the rate of inflation is met at least in the next year. This is putting the cost of supporting national services on to the council tax payer. I am not convinced—and I said the same thing last year—that this is the right way to go. Poorer authorities, in particular, have a lower council tax base, so if the aim is to redistribute, simply charging extra through council tax to pay for services in the more deprived authorities seems not to be the right way to go.

Finally, can the Minister confirm that the Government intend to produce a model which is fair? The words “fair funding” were used a great deal this time last year. I very much hope that those words will continue to be used. For funding to be fair, council tax payers must also have fair demands on their wallets. Will the Minister bear that in mind? I hope that, for the rest of this Parliament, the Government will not simply load council tax so that local government receives more complaints because their council has been underfunded by central government for a considerable time.

[Lord Bourne of Aberystwyth]

My Lords—

[Lord Beecham (Lab)]

My Lords—

[Noble Lords]

Order!

[Lord Bourne of Aberystwyth]

The noble Lord, Lord Beecham, is always straining at the leash. I look forward to his contribution later.

I thank the noble Lords, Lord Kennedy and Lord Shipley, for their contributions and send all our best wishes to the noble Baroness, Lady Pinnock, who is unwell. We wish her a speedy recovery.

First, I turn to the points made by the noble Lord, Lord Kennedy. I join him in thanking local government officials who work incredibly hard on behalf of their local councils and, indeed, of us all. I will try to clear up a point he made initially about consultation. The consultation on this local government settlement is open until 16 January. The consultation on the fair funding review is open until 12 March at 11.45 am for some reason. I do not know why it is 11.45 am—but just before noon. It will be looking at relative needs, issues such as deprivation and so on. I can confirm that the intention is to ensure—as I suppose the name suggests—that we have a system that is fair across the board and one that achieves some balance.

I appreciate that they do not totally coincide, but council tax payers often also pay income and other forms of tax, so it is a mistake to see the two as totally separate classes of people—council tax payers on the one hand and those who make contributions to central taxation on the other. They are often the same people and we have to appreciate that these services cost all of us money. This is not to say that there are not important issues to be dealt with and a balance to be struck.

The noble Lord, Lord Kennedy, referred to five new business rate retention pilots. It is actually 10. Through him, I thank Lewisham for being part of this. Indeed, all London boroughs are contributing. We had an incredible response although not, I regret, from Newcastle or any authorities in that area, but we had 240 local authorities wishing to be taken into consideration. The 10 pilots will include local authorities from the relevant areas; in all, I think that 89 local authorities are participating in these pilots. So obviously we will see how those pilots proceed and will hope to gain something from them. Both noble Lords asked about the ability to carry the pilots forward. The intention is to look at the issue in the round.

There was a question about adult social care. The review will report no later than the summer of 2018. I appreciate, and sometimes share, the anxiety to move more quickly than we do, but it is important to get these things right rather than to go quickly. I remind noble Lords—although I am sure they do not need reminding—that this year we have had a general election. That has taken some time out of the process for understandable reasons, as I am sure noble Lords will agree.

The noble Lord, Lord Kennedy, referred to a trial of full cost recovery of planning fees. He has previously raised that issue, and I undertook to have a look at what I thought was an interesting and valuable idea. I assure him that we are looking at that possibility.

In the meantime, we have put an extra £2 billion into adult social care and £200 million into children’s social care, and the Department for Education is looking at that. As I said, the review is due to report by the summer of 2018.

I should repeat—I believe I am repeating it, unless I missed a paragraph in the Statement—that the referendum limit is now going up to just under 3%, so an increase of just under 3% is possible without a referendum. I remind noble Lords that a referendum on this has been held on only one occasion—I think I am right in saying that; I will write if I am wrong—and that was unsuccessful. That perhaps indicates that there is not such an appetite out there as is supposed for council tax increases.

Both noble Lords referred to some of the issues that they welcome. The noble Lord, Lord Shipley, certainly referred to the rural services grant, the new homes bonus, the negative RSG and the pilots, and I very much welcome that. I confirm that we wish the model to be fair. I think that the noble Lord referred to the new burden being placed on local authorities in relation to homelessness, which he said we are not funding. In fact, we are funding it under the Homelessness Reduction Act 2017. That legislation had a broad welcome in this House and was steered through this House by the noble Lord, Lord Best, with government support. We are committed to £71.2 million to help fund the new burden.

If I have not covered all the points raised by the noble Lords, I hope that they will be content if I pick up anything that I have missed in writing.

--- Later in debate ---

[Lord Beecham]

My Lords—

[Lord Bourne of Aberystwyth]

I am still looking forward to hearing from the noble Lord, Lord Beecham. I am sure there will be time.

I thank my noble friend very much for the welcome he has given to the pilot in Lincolnshire, and we certainly look forward to seeing how that pans out. I also thank him for the qualified welcome for the local government settlement from the Local Government Association. I have read its response and it welcomes some of what it is in the settlement. I can well understand its position. It would be most extraordinary if in any year the Local Government Association said, “That’s everything we want”, and my noble friend did not disappoint on that front.

I thank him for the welcome that he gave regarding the new homes bonus. I agree that there is a challenge in relation to adult social care—as I said, we have the summer review coming up—and I also agree that there is a challenge in relation to children’s social care. We have recognised that with additional funding but I note what he says.

I also note what he says in relation to South Holland in general, although perhaps not his request to trial full cost recovery of planning fees. We have not yet agreed to that. It is something that we are looking at, and obviously we would make sure that it went through a proper process if we did agree to it. However, I thank my noble friend for his response.

[Lord Beecham]

My Lords, first, I refer to my interests as a Newcastle city councillor, in which capacity this is the 51st local government settlement that I have had to engage with.

I notice that the Statement bears the heading “Check Against Delivery”. I assure the noble Lord that local government will certainly check against the delivery of the Government’s intentions as expressed in the Statement, and it will certainly hold the Government to account for the consequences of this settlement.

Perhaps I may refer in the first instance to the question of business rates. The Statement says:

“The aim is for local authorities to retain 75% of business rates from 2020-21 … From 2020-21 business rates will be redistributed according to the outcome of the new needs assessment”.


I have two questions about that. First, how far have the Government got in developing a system for equalising—or, at any rate, balancing—the distribution of business rates? Secondly, are they now looking at the position of firms such as Amazon with large out-of-town premises, paying next to nothing in business rates and, for that matter, probably diminishing the return of business rates in local authorities with this new economy that is forming? Will the Government look at the implications of that for financing local government, as well as perhaps in other respects?

There is also a distinct question about the funding of children’s social care, which is said to amount to some,

“£200 million on innovation and improvement in children’s social care”.

The present situation is that the funding is £600 million short of what is required to support the existing services. Even if this £200 million were devoted to closing part of that gap, it would still leave those services substantially underfunded. It seems to me that the Government have not taken the right step in adequately funding what is a crucial service and one which, as my noble friend pointed out, is growing and will be an ever-greater call on local government finances.

I also have a question about the slightly odd wording, if I might put it that way, on page 6 of the Statement, in which the Government announce their intention to give,

“local authorities the continued freedom to use capital receipts from the sale of their own assets. This will help fund the costs of transformation and release savings”.

But if these are capital receipts, they cannot be used for revenue purposes—can they?—which the Statement appears to imply. They can be used for capital purposes which might have marginal impact on the revenue side, but they cannot be used to contribute significantly to the revenue situation.

My noble friend referred to the shortfall in education expenditure, but there is clearly also a significant shortfall in social care, to which the Statement made no reference at all, as he pointed out. That is a serious burden on local authorities. Ultimately, and this is the other side of the problem, that will probably increase the costs for the National Health Service. If local government cannot provide social care, the call on the health service, and in particular hospitals, will grow disproportionately. The Statement makes no effort to deal with that situation.

So far, the check against delivery is not encouraging, but it remains to be seen whether, over time, the Government can improve on what has been a pretty downbeat result for local authorities and, more importantly, their citizens.

[Lord Bourne of Aberystwyth]

My Lords, the noble Lord referred to his 51 years in local government. We know from his contribution today that he has not lost any of his enthusiasm—like a young colt, he was anxious to intervene and make his point, and I congratulate him on that. However, it was the usual dismal litany of matters that he set out, and unlike his noble friend on the Labour side, he did not welcome some of the points in the Statement. Let me try to deal with some of the perfectly fair points that he made, some of which I will respond to, if I may, subsequent to the Statement.

On how far the fair funding review has gone, as I indicated we are opening the consultation today for response by 12 March, with the intention of bringing it in in 2021. Obviously, there is thinking on the broad general principle, but we want to see how we look at issues of deprivation and provide a fair funding formula.

The noble Lord referred to the broader question, which has been raised before, perfectly validly, of online shopping and the fact that there are some very large players such as, but not limited to, Amazon. He suggested that it is perhaps a question of rebalancing some of the ways that we raise money. I will cover that in a letter, if I may, but from memory I think that there is an international aspect to this issue that kicks in in the spring—there is reference to this issue and we are participating in that. I appreciate that that is a rather woolly reference, but I will clarify it in correspondence.

The noble Lord referred to the significant challenge, which certainly exists, in children’s social care and adult social care. We have provided already a precept of 3% from the last Statement a year ago, and we have increased flexibility this year in relation to the referendum, which helps. However, I accept that there is a significant challenge. I accept also that the noble Lord is right to say that we will be checked against delivery.

The noble Lord made a point about capital purposes, and we are both mere lawyers in this regard. However, I think that there is probably some accounting process whereby transformational investment from capital funding, which would help with the revenue side of things, is classified as capital. I suspect that that is the case, but again I will take up that somewhat technical point in correspondence.

The noble Lord is right to refer to a broader consideration of the complex—or perhaps not so complex—interrelationship between the health service and social care and the need to get that right. This has challenged Governments of all colours in the past, but I accept that there is a broader question that we need to look at.

The noble Lord will be pleased to know that, in relation to Newcastle, there is a £2.3 million increase in funding from this settlement, quite apart from the referendum uplift, and a maximum additional funding of £6 million as a result of the council tax flexibility previously announced. I am sure that that is of some comfort.

[Lord Marlesford (Con)]

My Lords, the Statement mentions parish councils,

“taking all available steps to mitigate the need for council tax increases”.

It would help if the Government tried not to impose new costs unnecessarily on parish councils. I refer particularly to the proposal that every parish council, however small, should have to appoint a data protection officer, who apparently cannot be the parish clerk. I declare my interest, having the honour of chairing the Marlesford parish council. We have only seven councillors for 230 people, and our precept is only £2,000 a year. We worked out that if we were to have a data protection officer—who has to be a “qualified” professional—that alone could add 10% to our precept. I believe that that is unacceptable, and I hope that the Government will do something about it.

[Lord Bourne of Aberystwyth]

My Lords, first of all, I thank my noble friend for all that he does in relation to parish councils; they are an important part of the patchwork of democratic participation in Britain and are very much valued. If I may, I will take up his point about the data protection officer and come back to him, because I am not sure of the answer. However, I accept that in a small council a cost like that cannot be easily avoided. If there is some way of mitigating it, I will certainly get back to my noble friend with the suggestion.

[Lord Hussain (LD)]

My Lords, I listened carefully to the Minister’s Statement. Speaking as a former councillor on a local authority for 10 or 11 years, I know that many areas in the country are very deprived. Some of them are not only the most deprived areas in the country, but it is sad to see that in England and Wales we have some of the most deprived areas in Europe. I did not hear much in the Statement about plans to uplift those areas from the deprivation they have suffered for decades.

[Lord Bourne of Aberystwyth]

My Lords, I thank the noble Lord for the points that he raised. First of all, we are talking here about a settlement only for England—obviously, Wales is dealt with by the National Assembly for Wales. On funding generally for Wales, the noble Lord will be aware of the Barnett formula, which takes account in its own peculiar way of the needs of Wales, Scotland and Northern Ireland. In England, the fair funding formula will seek to address some of the points that the noble Lord quite rightly raises about deprivation. As I indicated in the Statement, it is important that we look at that, and it is now open for consultation until 12 March.

[Lord Howard of Rising (Con)]

Following on from what my noble friend Lord Marlesford said, my parish council is not nearly as big as his. Our annual precept is only £500. Will the noble Lord confirm that, if you do not have any electronic equipment, such as computers, you do not have to worry about the Data Protection Act?

[Lord Bourne of Aberystwyth]

My Lords, that does seem like a very reasonable deduction. I will write to my noble friend if I am wrong, but I think that will be the case. Once again, I thank my noble friend for all he does, and indeed noble Lords around the Chamber who have previously been, and in many cases still are, councillors. That service is very important to people in their areas; it tends to be the most trusted level of government and it is an essential part of our national life.

Homelessness: Temporary Accommodation

Lord Bourne of Aberystwyth Excerpts

Tuesday 19th December 2017 Lords Chamber

[The Lord Bishop of St Albans]

To ask Her Majesty’s Government what action they plan to take to address increasing homelessness and demand for temporary accommodation.

[The Parliamentary Under-Secretary of State, Department for Communities and Local Government and Wales Office (Lord Bourne of Aberystwyth) (Con)]

My Lords, we are embarking on an ambitious programme in relation to homelessness which places prevention right at its heart. We are implementing the most ambitious legislative reform in decades—the Homelessness Reduction Act—and we have allocated over £1 billion to tackle homelessness and rough sleeping, through to 2020. This includes a flexible homelessness support grant, which local authorities can use strategically to tackle homelessness in their areas, including for the provision of temporary accommodation.

[The Lord Bishop of St Albans]

I thank the noble Lord for his Answer. Night shelters and homelessness charities in my diocese are speaking about the huge pressure they are currently under. National Audit Office statistics suggest that the problem has increased nationally from 1,800 rough sleepers in 2010 to 4,000 this year. Given that rise, do Her Majesty’s Government consider that local authorities will have sufficient funding to meet their legal obligations under the Homelessness Reduction Act, which the Minister just spoke of, when it comes into force next year?

[Lord Bourne of Aberystwyth]

My Lords, first, I thank the right reverend Prelate for all that he does in his diocese. I know that the St Albans Sleepout on Friday 1 December—which was not actually at the cathedral this year because of building work—does much to publicise and tackle this problem in St Albans. He is absolutely right that this has become a more serious problem. It is now affecting rural as well as urban areas of England. That is why we have put this very much at the centre of the Government’s and department’s thinking, with the aim of reducing homelessness by 50% by 2022 and eliminating it totally by 2027. We have put resources into this: £50 million was announced very recently.

[Lord Bird (CB)]

Can Her Majesty’s Government look at the human rights abuse that allows people to sleep on the streets? Maybe we need to revisit the old legislation whereby we do not allow people to sleep on the streets but provide places for them off the streets, rather than putting them in prison as we used to. We have an emergency on our hands; we need to remove people from the streets and put them in a place of safety. That should be at the top of the Minister’s list.

[Lord Bourne of Aberystwyth]

My Lords, I thank the noble Lord very much indeed for his contribution in this area—not just in the House but very much outside it. I take his comments seriously. As he rightly says, prevention is at the heart of this complex issue. It is clearly not a simple issue: this country has faced this problem over a period of time. As I say, it is very much at the centre of the Government’s thinking and all agencies contribute to it. We have trailblazer areas looking at this, and Crisis and Shelter, for example, are on our advisory committee. Rough sleeping is something that the Government are very much committed to ending.

[Baroness Armstrong of Hill Top (Lab)]

My Lords, I am sure the Minister will recognise that some of us are deeply underwhelmed by the ambition to reduce homelessness by only half by 2022. We were able to reduce rough sleeping by two-thirds between 1998 and 2000, and we know what needs to be done. There needs to be proper accommodation for rough sleepers, and he should know every night what is available and how many more rough sleepers there are than beds available. There also needs to be mental health and detox support. This is not unknown territory or a secret. We know how to sort it. Why do the Government not just get on and do it so that people are safer?

[Lord Bourne of Aberystwyth]

My Lords, as the noble Baroness went on, she began to exhibit just how complex an issue this is. It is not simple. It is an issue partly to do with addiction and with mental health, and partly about people coming out of secure environments such as the forces and prisons. We are working with the Ministries of Defence and Justice, which are central to this. It is not a small ambition to halve homelessness by 2022 and eliminate it totally by 2027. I look forward to seeing support and ideas from around the House on how we can tackle a very complex issue.

[Baroness Grender (LD)]

My Lords, does the Minister agree with the UK Statistics Authority that a complete picture on homelessness must include prevention and relief in addition to statutory homelessness? Will he commit to include in any future change in data people who are in work but sleeping rough or in temporary accommodation—as astonishing as those the figures are, as shown on Channel 4 last night?

[Lord Bourne of Aberystwyth]

My Lords, I very much regret that I did not have the privilege of seeing that programme last night but I will try to catch up on it. It is a complex issue, as the noble Baroness rightly says. It is not just about looking at the statistics, as she will know, but at what is happening in communities up and down the country. Last Friday, I was in Chesterfield seeing what is happening there, a town that is not a metropolitan area, and finding that agencies are engaged in tackling it, as is the faith community. Interestingly, the noble Lord, Lord Foulkes, will be pleased to know that the vicar of Chesterfield was formerly a Catholic and has become a Protestant. The noble Lord might like to engage with him to find out some of what he has been doing. It is important to engage all the institutions. I will certainly go back and have a look at the point that the noble Baroness made about the statistics.

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

My Lords, I refer the House to my relevant local government interests in the register. On entering this Palace from Westminster tube station, you will see homeless people. When walking from Victoria and Waterloo stations, you will see homeless people sitting in doorways. Every evening, opposite Charing Cross station, you will see hundreds of homeless people being fed soup and bread. Homelessness has risen by 50% in the last two years. Does the noble Lord not accept some responsibility for this tragedy which is occurring in one of the richest countries in the world? It rests with this Government and the policies they have pursued.

[Lord Bourne of Aberystwyth]

My Lords, first, the noble Lord is absolutely right: this has been a problem in the centre of the capital for some time, as he will appreciate. I am not minimising that but it is not new; what is new is the spread of this problem throughout the country, as I have indicated. It now affects many rural communities and smaller towns up and down the country. I certainly acknowledge that this problem needs to be tackled, as I have indicated. It needs to be tackled at local authority and governmental level and demands all of our attention, including the noble Lord’s. Certainly I take my share of the blame but I think this is something to which we can all contribute. Faith communities and the voluntary sector are helping, the Government have a role, and so do local authorities. It is something with which we all need to engage rather than finger-point.