Provisional Local Government Finance Settlement

Lord Young of Cookham Excerpts

Wednesday 6th January 2021 Lords Chamber

[Lord Greenhalgh (Con)]

My Lords, I have never heard so many questions poured in with such economy, but I refuse to give advice to any council, or any councillor, on how they should tax their local communities. I could point to my own record as the leader of Hammersmith and Fulham Council. For six years we cut council tax by 3%, and for one year we froze it. That was because I believed that our council tax level was too high. I did not understand why neighbouring boroughs such as Wandsworth and the Royal Borough of Kensington and Chelsea had substantially lower council tax than Hammersmith and Fulham. I chose the route of being able to tax less and provide better services, through more efficiency and driving greater productivity. So I would say that it is down to local leaders to decide how they set their council tax. My advice would be: what do you think is in the interests of your people? I agree that council tax is a regressive tax—but it is particularly ridiculous to see how some councils have to raise their funds largely through council tax increases, because they receive so little grant as a proportion of their combined budget. I shall give more examples of that later.

[Lord Young of Cookham (Con)]

My Lords, in the Statement we are discussing, the Secretary of State said:

“I want local government to emerge stronger, more sustainable and better able to meet the needs of those it serves.”


Does my noble friend, with his local government experience, recognise that the current tax base for local government is unsustainable, with domestic rates 30 years out of date—and, as he has just admitted, regressive—and commercial rates killing the high street? Will the White Paper on devolution and local recovery, promised for last autumn, set out a firmer and broader basis for local government, so that it can be empowered as the Secretary of State wishes?

[Lord Greenhalgh (Con)]

My Lords, I have saved my data, which I carefully put together—although I will not be able to read it very well—for my noble friend’s question, of which he kindly gave me notice. I shall tell a tale of two boroughs—the London Borough of Richmond upon Thames, a Liberal Democrat authority, and the London Borough of Hammersmith and Fulham, now, sadly, a Labour borough. It was taken over after I was leader of the council—but that is democracy for you. Things can change back again, I hasten to add, for the benefit of the noble Lord, Lord Kennedy. Things can swing both ways. For those two boroughs, exactly the same budget base was estimated, through both council tax and grant. Richmond upon Thames had £173 million and Hammersmith and Fulham £174 million—pretty much the same amount. Yet 83% of the money in Richmond upon Thames is raised through council tax, whereas only 31% of the money in Hammersmith and Fulham is raised through council tax. That is patently absurd. Of course we need to think about a more sensible system of local government finance. It is very hard to estimate via complex formulae, and I am sure the devolution White Paper will look into some of the vagaries of local government financing, whereby a river can separate, and thus create such great differences between, two neighbouring authorities.

Housing: Leasehold

Lord Young of Cookham Excerpts

Tuesday 5th January 2021 Lords Chamber

[Lord Greenhalgh (Con)]

I assure your Lordships that leasehold reform is coming. A lot has been announced and, subject to the vagaries of the Downing Street grid, more will be announced shortly.

[Lord Young of Cookham (Con)]

My Lords, is the noble Lord, Lord Truscott, not right to say that leasehold as a form of tenure is a relic from a feudal age that exists nowhere else in the world? Instead of trying to patch it up, should we not be actively replacing it with commonhold for new developments and much easier enfranchisement for existing ones?

[Lord Greenhalgh (Con)]

I thank my noble friend. There is no doubt that in this country we are unique in having leasehold. We need to focus on reform, which will take this forward to a position similar to that in Scotland or on the continent, where people are co-owners of their property.

Leaseholders and Cladding

Lord Young of Cookham Excerpts

Wednesday 25th November 2020 Lords Chamber

[Lord Greenhalgh (Con)]

My Lords, my noble friend must point out to them that this Government have an iron resolve to make sure that developers step up to the plate. They have made significant profits on those developments and will want to make profits in the future. We need to make them pay; we need to reason with them and say that it is no good laying this at the door of the taxpayer. They will have to step up to the plate. I will ensure that this Government make every endeavour to make them do so.

[Lord Young of Cookham (Con)]

My Lords, 36 years ago, when I had my noble friend’s job at the then Department of the Environment, I put on the statute book the Housing Defects Act 1984. In a nutshell, it compensated homeowners who found that their homes were unsaleable, through no fault of their own, and had no other form of compensation coming from the Government. Does my noble friend think that that legislation has relevance to today’s leaseholders? Would he welcome my advice on how to persuade the Treasury to pay for it?

[Lord Greenhalgh (Con)]

My Lords, there is no problem in public life that has not been seen before. My noble friend makes a valuable point and I will indeed ask my officials to look into the ways in which the Housing Defects Act of 1984, when I was doing my A-levels, and the Housing Act of 1988, when I left university, were used to address the issues we face today.

Covid-19 Lockdown: Homelessness and Rough Sleepers

Lord Young of Cookham Excerpts

Thursday 12th November 2020 Lords Chamber

[Lord Greenhalgh (Con)]

As Faith Minister, I completely agree. Places of worship, whether they are gurdwaras, temples, churches or synagogues, play a huge part in dealing with the social issues of our time, including homelessness.

[Lord Young of Cookham (Con)]

Does my noble friend agree that rough sleepers, and those working with them, are particularly vulnerable to Covid? Will he recommend to the Joint Committee on Vaccination and Immunisation that they should be a priority?

[Lord Greenhalgh (Con)]

My Lords, I am happy to make representations to the Joint Committee on Vaccination and Immunisation about making this decision.

Planning: Accessible Homes

Lord Young of Cookham Excerpts

Wednesday 4th November 2020 Lords Chamber

[Lord Greenhalgh (Con)]

My Lords, we are currently consulting on the accessibility standards. I propose that we wait until the end of the consultation, which completes on 1 December, for our response to that.

[Lord Young of Cookham (Con)]

My Lords, I support the proposal made by many groups representing those with a disability that Part M of the Building Regulations should be raised to what is known as the adaptable and acceptable standard, or M4, Category 2. This would enable more people to live healthy and independent lives without having to move. Further to what my noble friend just said about the consultation document, when will the results be published and when will its conclusions be implemented?

[Lord Greenhalgh (Con)]

My noble friend should know that the response to the accessible-homes consultation will be published by March 2021. The implementation of any change will depend on the course of action that the Government take.

Almshouses

Lord Young of Cookham Excerpts

Thursday 22nd October 2020 Lords Chamber

[Lord Greenhalgh (Con)]

My Lords, I have pointed out that there are 36,000 almshouses. However, there are 700,000 specialist supported and secure accommodation homes for people in this country. In addition, the affordable homes programme includes 10% towards specialist housing—but I will write further if I can provide any assistance on that point.

[Lord Young of Cookham (Con)]

My Lords, will the current review of the planning system consider exempting almshouses from the infrastructure levy, which is raised at differential levels throughout the country, thereby freeing up the finances of these charitable institutions to continue to deliver homes to those in need?

[Lord Greenhalgh (Con)]

My Lords, my noble friend makes an incredibly important point: we want them to continue their endeavours without being burdened by the community infrastructure levy. We are currently consulting on the proposals for reform set out in the planning White Paper. We will listen carefully to all representations made, including those from almshouses.

Housing: Rent, Evictions and Covid-19

Lord Young of Cookham Excerpts

Tuesday 13th October 2020 Lords Chamber

[Lord Greenhalgh (Con)]

My Lords, I have pointed to the unprecedented support that we have given to renters, including raising the local housing allowance, which is also important. The housing benefit bill and universal credit housing element total well over £20 billion. However, we need to get the balance right between the rights of renters and protecting and safeguarding the interests of landlords.

[Lord Young of Cookham (Con)]

My Lords, my noble friend rightly refers to the recent generous increase in the local housing allowance, which will help tenants struggling with their rent. However, the increase runs out at the end of the year and, unless further action is taken, LHAs will revert to the previous, less generous levels in 2021. Does my noble friend agree that that would be a retrograde step, leading to an increase of some £54 a week for some tenants? The right thing to do would be to keep the 30th percentile at current market rents.

[Lord Greenhalgh (Con)]

My Lords, my noble friend makes reasoned points. The increase to the 30th percentile of the local housing reliance will remain in place for the duration of the year, until March 2021.

Housing: Rent and Covid-19

Lord Young of Cookham Excerpts

Thursday 8th October 2020 Lords Chamber

[Lord Greenhalgh (Con)]

My Lords, I would point out that discretionary housing payments have increased by some £40 million, to £180 million. We do not have great data on rent arrears: the data from the National Residential Landlords Association indicates that about 7% are in arrears. However, I will write to the noble Lord, as he requested.

[Lord Young of Cookham (Con)]

My Lords, in answer to an Urgent Question on this very subject a fortnight ago, my noble friend the Minister said, of measures to help renters:

“They are kept under constant review in the light of evidence of public health, and we are prepared to take further measures as they are needed to protect landlords and tenants alike”—[Official Report, 24/9/20; col. 1948.]


Since then the public health evidence has, sadly, deteriorated significantly, so will my noble friend now introduce the further measures that he then referred to? Might those include the recommendations of Shelter’s recent report, Renters at Risk?

[Lord Greenhalgh (Con)]

My Lords, I assure my noble friend that there is no evidence yet of an eviction epidemic. We have established an unprecedented package of support, and the Chancellor has announced in the other place the Government’s winter economy plan to support people through the winter, and to support jobs, including the new job support scheme. We have increased local housing allowance rates to the 30th percentile, which will remain in place at least until the end of March 2021.

End of Eviction Moratorium

Lord Young of Cookham Excerpts

Thursday 24th September 2020 Lords Chamber

[Lord Greenhalgh (Con)]

My Lords, I point out that the domestic abuse ground applies exclusively to the social sector. I will write to the noble Baroness providing clarification. This prioritisation of cases does not extend just to domestic abuse; it covers illegal occupation, fraud, egregious rent arrears, abandonment and anti-social behaviour. That is why we want to strike a fair balance between protecting the rights of landlords and of tenants.

[Lord Young of Cookham (Con)]

Noble Lords will recall that in March, under the Everyone In campaign, some 15,000 rough sleepers were successfully housed in emergency accommodation. Many of them will now have moved on into privately rented accommodation. Given the Government’s commitment to end rough sleeping, what assurances can my noble friend give that those rough sleepers can rebuild their lives and that, now tenancies can be terminated, they will not be evicted and return to the streets?

[Lord Greenhalgh (Con)]

My Lords, my noble friend is right that it is a great achievement that 15,000 rough sleepers have been successfully placed in emergency accommodation. On 18 July we launched the Next Steps accommodation programme, under the leadership of Dame Louise Casey, and we are putting in two sources of funding: £161 million to deliver 3,300 units of longer-term, move-on accommodation in this financial year and £105 million of additional funding to pay for immediate support to ensure that people do not return to the streets. This Government have put in around £0.5 billion to date to ensure that we end rough sleeping and homelessness.

Devolution in England

Lord Young of Cookham Excerpts

Tuesday 22nd September 2020 Lords Chamber

[Lord Greenhalgh (Con)]

My Lords, there are ways for government to provide support to the devolved Administrations and across borders. I point the noble Lord to the borderlands growth deal as one such way of being able to achieve that. We are not looking at top-down devolution, but focusing on local city and growth deals as the way forward.

[Lord Young of Cookham (Con)]

My Lords, further to the Question of the noble Lord, Lord Foulkes, will the White Paper recognise that devolving more powers to local government needs to be accompanied by greater financial freedom to use those powers? Will the White Paper explore alternative means of funding local government, perhaps broadening the base and possibly replacing business rates, which, in their present form, are increasingly difficult to defend?

[Lord Greenhalgh (Con)]

I have great sympathy for my noble friend’s point, as a co-author of A Magna Carta for Localism a decade ago. I can assure him that we are reviewing the mayoral combined authority model to identify how to maximise its effectiveness, including such powers as financial freedoms and funding devolution.