Social Housing: Right-to-buy Sales

Debate between Lord Shipley and Baroness Swinburne

Thursday 18th April 2024 Lords Chamber

[Baroness Swinburne (Con)]

I am afraid that is not my understanding of what has happened historically, and I understand that some Members of this House may have been involved in setting up the original scheme.

[Lord Shipley (LD)]

I remind the House of my register of interests. Can we go back to the issue of the right to buy? In the last year, 10,896 homes were sold through right to buy in England and only 3,447 houses replaced them—a net loss of 7,449 in 2022-23. How would the Minister explain that to a family stuck in temporary accommodation which is gradually becoming permanent?

[Baroness Swinburne (Con)]

I do not recognise those figures. The figures I have in front of me are that, in 2022-23, local authorities reported 10,896 eligible sales, which was very similar to sales in 2021-22, and delivered 8,900 homes that same year. Overall, there was a net increase of 4,600 affordable homes in that year.

Local Regeneration: Industrial Areas

Debate between Lord Shipley and Baroness Swinburne

Thursday 7th March 2024 Lords Chamber

[Baroness Swinburne (Con)]

I will certainly commit to making sure we follow up on this in detail to the noble Baroness. Given that publication is imminent, I hope we can follow up as and when that happens.

[Lord Shipley (LD)]

My Lords—

[Baroness Swinburne (Con)]

I literally have only a minute and a half to finish, and I have about seven responses.

[Lord Shipley (LD)]

I will happily wait a bit longer if that helps. As part of that letter, because the Minister has said that it is not the job of the NAO to audit this body, will she tell the House whose responsibility audit is?

[Baroness Swinburne (Con)]

As I have just agreed, I will come back to noble Lords with a response on this, and we can follow up in detail.

I will try to flip through a few points; I will not be able to do them justice, given that we have 45 seconds. The reality here is that there are lots of things going on. On the funding allocation through the towns fund, the noble Lord, Lord Mawson, asked how much has been spent. The towns fund, one of our flagship local growth funds, is on track to be spent by 2026, and the rates at which the projects are being completed is consistent with the delivery timelines we have already set out. We are aware that major regeneration projects take time to deliver, and it is expected that all the funds not spent at this point will be on track to be delivered.

The noble Baroness, Lady Donaghy, referred to the long-term plan for towns. Its key features include an allocative rather than a competitive process over a 10-year period, giving local authorities the flexibility to invest in interventions based on evolving local needs and priorities. I hope that helps with that. There were also various comments on transport. With regard to working with others in the community—the right reverend Prelate raised this—we have all sorts of answers we can give noble Lords. I will follow up in writing to many noble Lords.

I will conclude by saying that we recognise the scale of the challenge to regenerate former industrial areas. We believe wholeheartedly in their potential to thrive, not least because of the pride, spirit and resilience that these communities continue to show. I agree with all noble Lords that this is about people. We need to work hand in glove with local communities to make sure we deliver the regeneration they need. I look forward to continuing discussions and working with all noble Lords to deliver for these communities.

Non-Domestic Rating Bill

Debate between Lord Shipley and Baroness Swinburne

3rd reading
Monday 16th October 2023 Lords Chamber

[Baroness Swinburne (Con)]

My Lords, I am grateful to noble Lords on all Benches for their co-operation on the Bill. The passage of the Bill will be a significant milestone in the reform of business rates, following our manifesto commitment and the subsequent Treasury review. When the Government examined the business rates system, they did so in the context of considerable upheaval due to the pandemic. Nevertheless, several themes emerged from which the conclusions of the review were formed.

The debates in this place have underlined the support for measures to improve the responsiveness of business rates to market changes. This was a key request from businesses during our review, the central achievement of the Bill and something I believe we can all be pleased to support.

With the first three-yearly revaluation cycle having now begun, the Government are already developing the new systems for data sharing that will enable regular three-yearly revaluations beyond 2026. Ratepayers and their representatives are the key stakeholders in these reforms, and the Valuation Office Agency will engage closely with them on the design of the future system. It has been pleasing to note that, while there is understandable appetite among noble Lords for even greater frequency, there is also a recognition that implementing such major changes to a tax requires a careful and incremental approach. I will repeat, then, what I said on Report: the Government will monitor these changes and keep the frequency of revaluations under consideration.

The Government’s review of business rates also identified the opportunity to reduce or remove business rates liability where this would support improvements to business premises or the decarbonisation of buildings.

The Bill enables the remaining parts of this package—namely, mandatory improvement relief and heat network relief—to be delivered from 1 April next year. This is a key part of producing a business rates system that better reflects our national priorities.

The Bill of course will now return to the other place for consideration of the Government’s amendments. As noble Lords are aware, these are of a technical but nevertheless important nature. That is true of much of this Bill, which shows the value of the expertise that we have witnessed in debate. Therefore, I will take the opportunity to repeat my thanks to the noble Earl, Lord Lytton, who identified those improvements and who more generally has offered the benefit of his considerable experience in rating to enrich the debates on this Bill. I also extend similar thanks to the noble Lord, Lord Thurlow, and other expert contributors to those debates, including the noble and learned Lord, Lord Etherton, and the noble Lord, Lord Ravensdale.

I thank the Front-Benchers opposite for their highly constructive and pragmatic approach, especially the noble Baronesses, Lady Hayman of Ullock and Lady Pinnock, and the noble Lord, Lord Shipley. It has been clear that the Bill enjoys broad support, but their probing has opened fruitful areas of discussion and given us the chance to say more about the Government’s work. I am sure noble Lords will join me in thanking members of the Bill team for their engagement. As I have mentioned, this is a complex area, and the preparation and delivery of a Bill such as this rely on the commitment and experience of officials from across the Department for Levelling Up, Housing and Communities, the Treasury, the VOA and HMRC. I also thank parliamentary counsel for their drafting of the Bill and their wider support to the Bill team. With that, I beg to move.

[Lord Shipley (LD)]

My Lords, I thank the Minister very much for her conclusion to this Bill. I extend our thanks also to the noble Baroness, Lady Scott of Bybrook. As she said, the Bill has broad support in your Lordships’ Chamber. I am grateful for the Minister’s assertion that we have introduced a pragmatic approach to the content of the Bill, for I think it is true—we have done just that. I was particularly pleased to hear the Minister say that the Government have a commitment to monitor what actually happens. I know that, on all sides of the House, that will be very gratefully received.

The Bill has a number of very welcome changes: in particular, more regular revaluations, which will be a big help. However, problems remain. Crucially, the level of business rates is too high. Business rates used to be around half the rental level of a property; they are now almost equal. This financial burden is putting a huge pressure on many businesses, not least in the retail sector. I said on Report and at other stages of the Bill that small business rate relief should be further extended, particularly to assist the high street. I also think the Government should not be increasing the level of business rates next year by the rate of inflation.

I hope the Government will take on board comments made on all sides of the House about the need to review the non-domestic rates valuation process itself for its accuracy, its communications and its explanations to business rate payers. The noble Earl, Lord Lytton, has been particularly concerned about the issue of material change of circumstance. There is a new definition and there is a view that I share with the noble Earl, Lord Lytton, that it is too narrow. I am reconciled to what the Minister has said, which is that they will keep it under review.

Thirdly, the Government need to keep a close eye on the level of payments made by warehouses when those warehouses have a retail purpose.

In conclusion, I think that the NDR system is broken. This Bill is a welcome improvement, but it is not a solution. Business rates cannot just be a means of revenue raising by the Treasury. I hope that this Government, and any future Government, will simply bear in mind that we need a major reform of the business rates system.

Non-Domestic Rating Bill

Debate between Lord Shipley and Baroness Swinburne

Report stage
Tuesday 19th September 2023 Lords Chamber

[Baroness Swinburne (Con)]

As the noble Lord will probably appreciate, I am not an expert in this area, unlike him. But I will contact the team and make sure that he has a thorough answer in writing. I believe that some of these issues have already been addressed in this review, but I will confirm that in writing to him.

[Lord Shipley (LD)]

My Lords, I am grateful to the Minister for her reply, and I was pleased to hear her say that we share the same objectives. I very much hope that we do and that we can continue to do so, because there are some fundamental issues here. Theoretically, I do not regard business rates as a good tax, in the sense that I think there are other ways in which taxation could be raised from businesses. However, it is the system that we have, and altering it would take a large amount of time: it would take several years to get movement on that. For that reason, I ask the Government to look very carefully at some of the suggestions that have been made in your Lordships’ Chamber this afternoon. The point that has been made by the noble Lord, Lord Thurlow, is very important. A warehouse should not be counted as a warehouse for business rates taxation if it is delivering a retail function. That is my first point.

My second point is on Amendment 15, moved by the noble Baroness, Lady Hayman of Ullock. It relates to the possibility of reducing the small business rate relief threshold. I take the point the Minister made about the number of properties that have already qualified for business rate relief, but I think the Government ought to look at that being increased. I thought the point made by the noble Lord, Lord Thurlow, was hugely material: business rates used to be half the rental level but have now become almost 100% of the rental level. This is simply not tenable: we cannot go on with that. As the noble Earl, Lord Lytton said, we are witnessing the continued attrition of our high streets and something has to be done about that.

The third point I make on what the Government could do urgently is not to increase business rates by the current level of inflation. I think the Government may well be willing to consider that—I hope the Chancellor would. All these things matter because business rates have got out of balance. Having said that, I beg leave to withdraw the amendment.

Housing and Planning: Policy Changes

Debate between Lord Shipley and Baroness Swinburne

Monday 24th July 2023 Lords Chamber

[Baroness Swinburne (Con)]

I thank my noble friend Lord Young for that question. We are bringing forward ambitious and wide-ranging reforms through the Levelling-up and Regeneration Bill, which my noble friend will know about—it is currently being debated on Report here in the Lords—including the modernisation of the planning system. The planning measures will, of course, give local leaders and communities the tools they need to regenerate towns and cities, to create better places and to restore local pride. The planning elements of the Bill, as my noble friend will know, including amendments tabled by Peers, will be debated in due course, in early September.

[Lord Shipley (LD)]

My Lord, further to the question from the noble Lord, Lord Young, could I ask the Minister whether the Government plan to table amendments in view of the fact that there have been a substantial number of changes proposed over the last 48 hours in the media? The next day of Report, when we start the planning chapters of the Bill, is on Monday 4 September. Will the Government be proposing amendments to that Bill to reflect the announcement they have just been making?

[Baroness Swinburne (Con)]

I thank the noble Lord for his question. It is noted, and I will refer his question to my noble friend the Minister on her return.