Covid-19: Local Government Finance

Lord Kennedy of Southwark Excerpts

Monday 29th June 2020 Lords Chamber

[Lord Greenhalgh]

I agree with the right reverend Prelate. A number of local authorities will feel impacts as a result of Covid-19 pressures, particularly Luton Airport. This was raised with me by officials who have been dealing with the local council. As I mentioned before, if there are specific councils that face unique problems, as in the case of Luton Airport, they should contact officials. These will be dealt with on an individual, case-by-case basis.

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

My Lords, I first refer the House to my relevant registered interest as a vice-president of the Local Government Association. Looking back on his time as a local authority leader, what words of advice does the Minister have for local authorities facing these challenges?

[Lord Greenhalgh]

I thank the noble Lord for drawing attention to our respective backgrounds in local government. Clearly, the most important thing is to keep the important services of councils running—their care for the vulnerable and these other things. That is why 90% of the money given so far has been directed to those authorities with adult social care budgets, which provide such a large proportion of the cost-base of a council.

Social Housing

Lord Kennedy of Southwark Excerpts

Tuesday 16th June 2020 Lords Chamber

[Lord Greenhalgh]

My Lords, the definition of “affordable” is certainly not an easy one. While the Government have not set a specific percentage of the incomes that people in social housing should be spending on rent, as suggested, the formula is such that it is typically around 50% to 60% of market rents.

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

My Lords, I declare my relevant interest as a vice-president of the Local Government Association. The cost of rent in the social housing sector has more than trebled over the past 40 years. This has pushed up the cost of living and made family finances harder. The Joseph Rowntree Foundation has previously discovered a strong link between the cost of rents in the housing sector and levels of poverty. What assessment have the Government made of the actual affordability of the limited social housing which remains and levels of poverty?

[Lord Greenhalgh]

It is fair to say that the differential between social and private rents has narrowed over a considerable number of decades. The policy of rent restructuring was started under the previous Labour Administration. However, as I said in response to a previous question, social rents continue to be at or around 50% to 60% of market rents. We are seeing a rise in rents overall, whether in the private or social sector. At this stage, we can say that being at around half the private sector level is a considerable discount in rent, although rents have risen dramatically overall.

Planning Process: Probity

Lord Kennedy of Southwark Excerpts

Tuesday 16th June 2020 Lords Chamber

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

My Lords, can the Minister confirm that he believes in the principle of the rule of law that everybody is subject to the law and no one is above it? How is it justifiable that Mr Jenrick is in his post, having acted so blatantly and having accepted that he acted unlawfully?

[The Minister of State, Home Office and Ministry of Housing, Communities and Local Government (Lord Greenhalgh) (Con)]

My Lords, my right honourable friend the Secretary of State followed entirely the planning guidelines that were set out by the MHCLG. I do not accept the way that this has been put to me —that he in any way broke the law. He sought to ensure that there was no inference of bias and that the planning decision would be redetermined. That was agreed with the local planning authority in Tower Hamlets and the Mayor of London.

Local Government: Economy

Lord Kennedy of Southwark Excerpts

Tuesday 9th June 2020 Lords Chamber

[Lord Greenhalgh]

My Lords, attendance at COBRA is on an issue and topic basis, as opposed to a standing membership. On supporting local economies, it has to be noted that £27 billion has been spent to support local areas, including £10.7 billion that has been paid out to 819,000 business properties. There are many other examples of government support and that will continue as we move into recovery.

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

My Lords, I declare my registered interest as a vice-president of the Local Government Association. Before the Covid-19 pandemic, our high streets and town centres were in crisis. There is a real fear that, even when it is safe to do so, many will never recover. What work are the Minister and his department doing with local government to develop a package of measures to get our high streets back on their feet and, when safe, encourage the public to use them?

[Lord Greenhalgh]

My Lords, the high street is the very heart of a local economy and a number of measures have been taken by the department. The places, urban centres and green spaces guidance which has been issued will help operators and owners on the high street and in our town centres. In addition, on 25 May the Government established a £50 million Reopening High Streets Safely Fund, as well as enabling an additional £6.1 million funding for business improvement districts in high streets and town centres.

Covid-19: Planning System

Lord Kennedy of Southwark Excerpts

Monday 8th June 2020 Lords Chamber

Asked by

[Lord Kennedy of Southwark]

To ask Her Majesty’s Government what plans they have to make temporary changes to the planning system as a result of the COVID-19 pandemic.

[The Minister of State, Home Office and Ministry of Housing, Communities and Local Government (Lord Greenhalgh) (Con)]

It is important to keep the planning system moving so that it plays a full part in the coming economic recovery. We have already made significant temporary changes in response to the Covid-19 pandemic —for example, allowing virtual planning committees more flexible working hours on construction sites, alongside giving authorities more flexibility on publicity requirements. We continue to monitor the situation.

--- Later in debate ---

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

My Lords, I declare my relevant interest as a vice-president of the Local Government Association. To support the economy and the wider construction sector, the Government should introduce emergency powers to extend planning permissions that are due to expire in the next six months for an additional period of up to one year. This would ensure that projects at risk of losing their permissions can get under way. Does the Minister agree with this approach? If so, how does he intend to take it forward?

[Lord Greenhalgh]

The noble Lord is absolutely right that construction is an important part of our economic recovery and that the delivery of new homes is vital. The Government have been made aware by both planning authorities and the development industry that delays have been caused by the Covid-19 pandemic. There is a risk of unimplemented planning decisions lapsing and therefore undermining the delivery of projects. We recognise these concerns and are considering whether permissions should be extended.

Covid-19: Local Democracy

Lord Kennedy of Southwark Excerpts

Wednesday 3rd June 2020 Lords Chamber

[Lord Greenhalgh]

The noble Baroness is right that access to broadband is one of the key parameters; it facilitates local democracy. I shall write to the noble Baroness on the specifics of what we are doing to support local councils. Again, I note that many councils are functioning fully and providing that continuity of executive as well as scrutiny of the Government.

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

My Lords, I declare my relevant registered interest as a vice-president of the Local Government Association. Will the Minister join me in paying tribute to the work of our locally elected politicians, councillors and mayors during the pandemic? Secondly, will he agree with me that each local authority that has responsibility for delivering elections next May would be well advised to review their procedures so that they are confident that they are able to deliver the administration of the election—everything from the nomination process to the polling day operation and the count—while protecting the public, candidates and staff at that vital time?

[Lord Greenhalgh]

The noble Lord is right. The local government response to the pandemic has been exemplary. I agree that it would be sensible to review procedures so that there will be a proper functioning of local democracy next May.

UK Shared Prosperity Fund

Lord Kennedy of Southwark Excerpts

Thursday 21st May 2020 Lords Chamber

[Lord Greenhalgh]

I thank the noble Earl for his point about support for the creative industries from the European Regional Development Fund. The purpose of this new UK shared prosperity fund is to level up and provide the support needed to do that. I cannot say any more around specifics for support for the creative industries at this stage.

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

My Lords, the Lords Select Committee on Regenerating Seaside Towns recommended that the UK shared prosperity fund should target the development of coastal business. What is the Government’s attitude to this, and when will we see detailed proposals from the Government? Does the Minister agree that the revival of our coastal towns, improving the offer to visitors, has taken on a whole new importance as more and more of us will be holidaying at home in the years ahead?

[Lord Greenhalgh]

I thank the noble Lord for raising the issue of support for coastal towns. It is important that those economies are raised up and do not fall behind the UK average. The whole purpose of this fund is to level up the United Kingdom, and I assure the noble Lord that we are specifically looking into the best way of doing that.

Covid-19: Housing

Lord Kennedy of Southwark Excerpts

Monday 18th May 2020 Lords Chamber

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

My Lords, I declare my interests as a vice-president of the Local Government Association and as a trustee of the United St Saviour’s Charity, which owns two almshouses for the benefit of Southwark residents.

I pay tribute to everyone in the public and private sectors who is working to keep us safe, delivering our essential services and ensuring that our shops are stocked with food so that together we can get through this crisis. These are the real heroes of the crisis, and they come from all over the globe. Everyone deserves to live in a home that is warm, safe and dry.

I am supportive of the Statement but with the underpinning that keeping people safe must be paramount in the thinking as we move to this next phase of fighting the pandemic. There are great risks and we do not want to do anything that risks a second spike in infections.

Of course, there is much that is not in this Statement, so my first question for the Minister is: can we expect further updates from his department on other aspects of housing in the next few days? Furthermore, can the Minister tell the House what the next phase of fighting this pandemic will look like for homeless people? Will he take this opportunity to confirm that they will not be sent back on to the streets? What discussions have taken place with the Local Government Association and Crisis on this next phase of the pandemic battle for homeless people?

In respect of viewings of properties for sale or rent, what review mechanism will the Minister deploy and how long after the physical viewings are in progress will he deploy it—one month, two months, three months? What discussions have taken place between him or his officials and the Residential Landlords Association, the Association of Residential Letting Agents, the National Association of Estate Agents, Generation Rent and Shelter, among others, on the resumption of viewings and lettings and the safety both of those coming to visit and of those whose properties are being visited?

The ban on evictions has been most welcome, and the Government deserve credit for that. It was the right thing to do. However, at some point this ban will be lifted, either in June or at some future date if the ban is extended. Can the Minister tell the House what thinking is taking place in the department to avoid a large number of evictions being progressed? We cannot have this situation in future.

Where home sales or lettings go through, we will have people moving home and in many cases using the services of a professional removal company. Has there been any discussion with the British Association of Removers? In any industry, but particularly the removal industry, social distancing can be quite difficult to achieve. We need to be clear on the correct practice when people move home.

I am conscious that I have asked a number of questions. I hope that I will get full answers but accept that that might not be possible tonight. Brief comments would be helpful for all Members, but if the Minister would agree to follow up any comments he makes on the points I have made with a letter to all Members and to place it in the Library of the House, that would be very helpful.

[Baroness Grender (LD)]

My Lords, I thank the Minister for taking questions on this Statement made by the Secretary of State last Wednesday on the restarting of the construction industry. It came as a surprise to many in that sector, given that they have continued to work throughout the lockdown. In the week before the Secretary of State’s announcement, only 37% of sites remained closed. For the smaller businesses that have been closed, this is often due to supply chain issues alone.

Given how keen the Government are to get all construction back to peak levels, can the Minister reassure us that safety in that sector is as important as in any other? What steps are being taken to ensure that low-skill workers in construction are safe and social distancing? The latest ONS figures suggest that construction worker death rates from coronavirus are double those of health workers. You have only to take your daily exercise past most building sites to see a frightening absence of social distancing. When the Minister answered a question from my noble friend Lord Stunell on 14 May, he committed to provide appropriate guidance to ensure availability of PPE and testing for the construction sector. What progress has he made? Can all construction workers now get testing?

Can the Government reassure us that all types of tenure are equal? With this Government it sometimes appears that some types of tenure are more equal than others. The Housing Secretary’s Statement talks at length about the importance of a home, but the only policies available are for owner-occupiers. People who rent need to know that their home is secure and safe. They need that assurance now. Will the Government agree to extend the current change on Section 21 evictions to give renters the security they need over a long-term period in advance of the 1 June deadline? Why did the Secretary of State not use the opportunity in this Statement to do just that? Will the Minister agree to not only maintain the local housing allowance at the current 30% of market rent but consider increasing it to help those most in need?

Is the Minister aware of Shelter projections that there will be a £55 million a month gap in rent without additional government support because universal credit is too low to cover average local rents? Does the Minister accept that the greatest danger for people on low incomes is that their rent arrears will accrue, driving them into a level of debt from which it would be hard to recover? Will the Government perhaps learn from other European nations and offer low-interest loans to help tenants through this unprecedented period?

The problems of leaseholders with extortionate ground rents have not suddenly disappeared with the lockdown. What progress is there in tackling this? Where are the shelved plans for greater protections for property guardians who are struggling to socially distance in often inadequate accommodation?

The achievement of getting as many rough sleepers as possible sheltered during this period is very significant. Anyone who has had the privilege of working with Dame Louise Casey will know how able she is at making the impossible possible, but this was also achieved thanks to monumental efforts by local authorities. Those same local authorities now need support to build social housing in sufficient numbers. Will the Minister listen to the LGA when it asks the Government to allow councils at least five years to spend right-to-buy receipts? Will they also allow councils to keep 100% of receipts?

Will the Government increase investment in Housing First projects to ensure that we do not return to the shameful levels of rough sleeping before the pandemic? Will the Government also support local authorities in their attempts to house people who have no recourse to public funds? This global problem requires a global response. Last week, the Secretary of State left responsibility for this issue firmly in the hands of local authorities. He charged them to act with humanity and compassion. Does the Minister agree that the Government should do the same?

Housing and Construction Sector

Lord Kennedy of Southwark Excerpts

Thursday 14th May 2020 Lords Chamber

[Lord Greenhalgh]

I thank my noble friend for my first Oral Question. I agree with her sentiments. Obviously, this has to be done safely. We know that building 100,000 new homes contributes 1% of GDP. We also know that the construction sector employs 3.2 million people. We want to push ahead as safely as possible within Public Health England guidance.

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

My Lords, can the Minister tell the House what discussions he or his colleagues have had with the construction industry to satisfy themselves that there are adequate supplies of PPE, and that the supply chain for PPE is robust and will not fail, so as to allow greater numbers of construction workers to return to work safely, without putting themselves or their families at an unacceptable risk of becoming infected with Covid-19?

[Lord Greenhalgh]

I thank the noble Lord for his Question. It is absolutely critical that construction work happens in a safe environment. The announcement yesterday of extending construction hours was precisely to do that—to enable travelling to work at times when public transport would not be busy. Also, there are very clear guidelines on how to carry out construction. Those are jointly agreed by the Home Builders Federation and the Government, and they include the appropriate use of personal protective equipment.

Greater Manchester Combined Authority (Fire and Rescue Functions) (Amendment) Order 2020

Lord Kennedy of Southwark Excerpts

Tuesday 5th May 2020 Lords Chamber

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

My Lords, I join other noble Lords in congratulating the noble Lord, Lord Greenhalgh, on his maiden speech. As he says, it is a first of its kind. I look forward to our encounters together and, in particular, to when we can meet in person and debate across the Dispatch Box. The Minister has a record of service in local government on which he should be congratulated, serving as a councillor in the London Borough of Hammersmith and Fulham and, in 2006, as he told us, becoming the leader of that council. I know that authority quite well and, as the Minister knows, it has changed political hands many times. The Minister also worked closely with the Prime Minister when he was Mayor of London, and served as deputy mayor for policing and crime.

I wish the noble Lord well with his new responsibilities. He has some very big shoes to fill. He will be aware that the noble Baroness, Lady Williams of Trafford, the noble Viscount, Lord Younger of Leckie, and the noble Lord, Lord Bourne of Aberystwyth, have all carried out his ministerial responsibilities and are respected by the House. They all engaged positively with people in the House, and still do, and always worked to bring people together. If the noble Lord carries out his duties in a similar vein, he will undoubtedly be a successful Minister in the House of Lords.

I was never leader of a council, unlike the noble Lord, Lord Greenhalgh, my noble friend Lady Wilcox of Newport or the noble Lord, Lord Goddard; I was merely the deputy leader of Southwark Council. But like all other noble Lords, I am a big supporter of local government and local councillors, and I know what a great job they do and how much we should support them. I am always pleased when a member of the local government family takes on new and important responsibilities, and I look forward to working with the Minister.

The order before us is not, in my opinion, controversial and it has my full support. But before I get on to the order, I am conscious that yesterday was Firefighters’ Memorial Day. I honour the commitment of all firefighters and remember those who made the ultimate sacrifice by doing their duty, protecting others and saving lives. I join the Minister in his tribute to the whole fire service for the work it is doing in these challenging times to help us all.

The order allows the Mayor of Greater Manchester to make arrangements for the fire and rescue service to be delegated to the deputy mayor for policing and crime, and extends the role of the police and crime panel to include scrutiny of the fire and rescue function. It is clear that the strategic decisions will remain with the mayor, who is accountable to the police, fire and crime panel, and to the general public, for the exercise of these functions.

I am aware that the Minister is leading a review into the cost of waking watches. It would be helpful if he could update the House on that work when he responds to this debate. If not, maybe he could agree to write to us about where he has got to with his review.

The noble Lord, Lord Goddard, asked a number of questions in respect of reductions in funding and budgets in general. I endorse his comments and look forward to the response he will receive.

I also endorse the comments from my noble friend Lady Wilcox of Newport in her tribute to council leaders, councillors and the staff of local authorities, along with all public servants who are dealing with these unprecedented challenges for our country. We have been separated from our families and friends, but our communities have been brought together and we have seen fantastic work in the public and voluntary sectors that must never be forgotten.

In conclusion, I look forward to the Minister’s response to the points raised today and congratulate him again on his excellent maiden speech. As he said, it is a first of its kind. I also wish him well in his new responsibilities in both the Home Office and the Ministry of Housing, Communities and Local Government.