(4 days, 12 hours ago)
Commons Chamber
Caroline Voaden (South Devon) (LD)
I am grateful for the opportunity to raise this evening a matter of profound importance to thousands of people across the country, including many of my constituents living and working near one of the most beautiful and vulnerable coastlines in England. That issue is coastal erosion—more specifically, what happens when human-built infrastructure such as roads and homes collapse and fall into the sea or are damaged beyond repair by the intensity of storms, waves, wind and tide. This is not just an infrastructure problem; it is a human one. The psychological toll of what is happening in these isolated shoreline communities and the threat of what might happen to others in the future should not be underestimated.
To set the scene, Start bay is one of South Devon’s most stunning stretches of coastline—15 miles of cliffs and shingle beaches running from Warren Point near Dartmouth in the north to Start Point in the south, taking in the villages of Stoke Fleming, Strete, Torcross, Beesands and Hallsands. The Slapton Line—the narrow shingle bar that carries the A379 and separates the freshwater Slapton Ley from the open sea—is one of the most remarkable and fragile landforms in this country. The A379 is a vital link road between the towns of Dartmouth and Kingsbridge. Alongside it lies Slapton Ley, the largest natural freshwater lake in south-west England. It is a site of special scientific interest and a national nature reserve of enormous ecological importance, home to rare wildlife and a place of outstanding natural beauty that draws visitors from across the world.
The area carries another layer of history that many across the world hold dear. In the autumn of 1943, the area was requisitioned by the British Government, and residents evacuated so that American forces could use the land to train for the D-day landings. Exercise Tiger cost the lives of nearly 800 American servicemen—a tragedy long kept secret—but the bond still runs deep, and many Americans come regularly to visit.
Alongside that history is a long and ongoing battle with the sea. In 1917, the thriving fishing village of Hallsands nearby was almost entirely lost to the sea in a storm, not long after hundreds of thousands of tonnes of shingle were dredged from the bay to help build the dockyards in Plymouth. In recent years, the storms have come harder and more frequently. This winter brought a succession of severe weather events that battered the Start bay coastline with extraordinary force. Properties in Torcross suffered significant damage, and businesses that depend on the summer season found themselves counting the cost of repairs before the year had even begun.
Then, on the night of 2 February, came the collapse of the A379 and a battering to homes behind the sea wall—windows smashed, roofs lifted, and water and shingle pouring into homes. Huge slabs of tarmac fell into the sea, and one section of the road collapsed entirely. A once-picturesque stretch of coastline looked like a bomb site. It was not a surprise to people who know this coast—the road has long been acknowledged as vulnerable—but the speed and scale of what happened shocked even those who had been warning about it for years. The alternative inland route is completely inadequate and needs an urgent upgrade. I have been contacted by hundreds of residents and businesses over the past seven weeks, and 40,000 people signed a petition, such is the concern.
Locally, the impact on daily life has been severe. Travel times to work and school have increased substantially—journeys that once took just minutes now take far longer via inland diversion routes that were never designed to carry this volume of traffic. Bus routes have been cut or diverted; older residents and young people trying to get to school and college have found themselves effectively cut off; and everybody dreads the arrival of the caravans. Access for emergency services is a significant concern. Mr Starr of Torcross told me that his wife required urgent medical attention twice last year, and that
“On both occasions the ambulance came across the A379 and therefore responded to the call within 30 minutes, before taking her to hospital. We are now living in fear that an ambulance will not be able to respond quickly enough.”
For others, the partial closure of the A379 is a barrier to education, due to increased journey times and altered bus services. This is true for pupils as well as staff at local schools. For local businesses, the consequences have been equally serious: reduced footfall, cancelled bookings, and the sheer visual impact of a collapsed coastline on what should be a thriving tourism destination have cost businesses dearly at a time when many were already operating on very thin margins. The Torcross Boathouse café has suffered substantial damage and remains closed. Its owners, Katy and Rob, told me that
“We won’t reopen for several months while the insurance is sorted out—it’s been a huge blow and our business has been devastated.”
In the weeks after the A379 was breached, one local pub reported trade being down by 80%. Other businesses highlighted the impact on their staff of a longer commute and issues with receiving deliveries. Matt Darke, who farms land on either side of Slapton, tells me that travelling between sites is now taking an hour longer every day than it used to, and even the viability of a local health centre is now at risk, as patients are choosing to move their prescriptions elsewhere.
Besides the damage to the A379, there has also been a serious impact on properties in the village of Torcross. The sea wall that protects the village has been left exposed by the recent loss of shingle along the beach, resulting in severe wave damage to homes and businesses and ongoing concerns about the stability of the buildings. Residents are scared and struggling to sleep due to the constant vibrations caused by the loss of shingle around the footings of the sea defences, which are an Environment Agency asset. The local EA team have been fantastic, working at pace to progress the case for an urgent project to install remedial rock armour in front of the sea wall, and while approval for that project is not guaranteed, the local team hope that the EA will find the funding to support Torcross. I look forward to receiving an update on this soon.
However, there will still be the question of what could and should be done to prevent outflanking where the Environment Agency’s assets end. There is a huge cost to works such as these, and there is always a cost-benefit argument to be won, which is what we will all try to do for Torcross. What is never easy to factor into such an equation, though, is the cost of doing nothing. What does it really cost to leave a village to fall into the sea? What is the cost to people’s health and health services, to the wider community, and to the social fabric of a place like this when defences are not maintained? Places such as Torcross and Beesands are more than just houses—they are destinations. They are lifelines for people looking for an escape from the demands of daily life; with their beaches, pubs and cafés, they are a magnetic draw for anyone looking to slow down, breathe the air, watch the birds, swim in the sea, or simply walk along the beach.
Who should pay when home owners lose everything that they have worked and saved for? These are not easy questions, which is why there is no clear answer, but the cost of prevention versus evacuation and loss must be part of this, and it is an issue with which the Government must grapple seriously. Time is not on our side, and that is abundantly clear in the village of Beesands, just down the coast. The erosion has accelerated rapidly in recent years. Where about 80 metres of village green previously separated houses from the sea, only 9 metres now remain in some areas, with the access road to the village also potentially at risk.
Amid all the trauma for the residents of this special place, I must express my sincere gratitude to officers and councillors from South Hams district council and Devon county council, who have been outstanding throughout the crisis; but for them, gratitude is not enough. Those councils are absorbing the cost of emergency repairs, facing potential loss of council tax, business rates and car parking revenue, and doing all this while operating under significant financial pressure, with limited central Government support mechanisms on which to draw. What they need, and what local authorities and coastal communities across England need, is a genuine financial partnership with central Government when coastal emergencies strike.
The Bellwin scheme is simply not fit for purpose when it comes to coastal flooding. As the coastal protection authority, South Hams district council has incurred huge costs since 2 February, including £100,000 for boulders to provide protection in the area that was worst affected. However, it has been informed that only expenditure within 30 days of the event is eligible for reimbursement under the Bellwin scheme. While I understand that the scheme is intended to support local authorities in respect of their emergency response, in the case of coastal emergencies it can easily take 30 days just to formulate and implement a plan. The current system asks councils to carry risks and costs that it is simply beyond their means to absorb, and that must change.
I must also mention the flood recovery framework. The current situation is illogical. The framework provides central Government support in cases of severe flooding affecting large areas of England, but weather incidents with localised impacts, however devastating, do not qualify. In Start bay the community is in crisis, but the answer from the system is “Sorry, but not enough people were affected.” That cannot be right, and I urge the Government to reform the framework so that it can respond to severe but localised coastal incidents of exactly this kind.
Let me now turn to the question of insurance, a common theme among my constituents. There is currently no specific insurance product for coastal erosion. Flood Re provides Government-backed cover for flood risk, but there is a clear and urgent gap when it comes to erosion. I therefore call on the Government to look seriously at implementing a Flood Re-style product for coastal erosion, and I note that a sobering report published last week by the Environment, Food and Rural Affairs Committee makes exactly that recommendation.
While home owners in Torcross may be successful in securing insurance payouts to support repairs to their properties on this occasion, it is unclear whether they will be able to obtain new insurance in the future. I therefore ask the Government for an assurance that those who are affected by coastal erosion and coastal flooding—particularly those whose properties are in areas with coastal protection measures in place that are supposed to work—will be helped to gain access to affordable insurance in the future. It is also crucial for people buying homes near the coast to be given the full picture of the coastal erosion risk that they face during the conveyancing process—not just the risk to the property itself, but the risk to the surrounding access routes, utilities and insurance availability. Given the climate-induced threats that we now face, those risks must be included as material information in conveyancing.
There is also a problem with the way in which the Government respond to crises of this kind. The community impacts of coastal erosion fall primarily to the Ministry of Housing, Communities and Local Government, while the physical erosion challenges are overseen by the Department for Environment, Food and Rural Affairs. That fragmentation has real human consequences, and it places an additional burden on local authorities, which find themselves navigating a confusing and fragmented central Government landscape at precisely the moment when they need clarity and support. I want DEFRA to set out clearly how it recognises the full range of the human impact of coastal erosion and incorporates it in policy development and funding decisions, with clear actions and a defined approach to community engagement. The EFRA Committee report calls for exactly that, and I endorse its call.
Finally, one of the most troubling gaps of all is the complete absence of any national strategy for those who lose their homes to the sea. No one should face the loss of their home to the water and find that the state has nothing to offer them but a place on a housing waiting list for social homes that simply do not exist. The EFRA Committee has recommended that a long-term national strategy providing financial assistance and relocation support should be in place by no later than March 2027. I fully support that recommendation, and I urge the Government to commit to it.
What are my asks? First, we need funding for the repair of the A379 Slapton line and for the improvement of our inland road network. Devon county council is currently working on a full business case for the Department for Transport, and I urge the Government to respond to the application swiftly.
Secondly, we need funding for sea defences along the Start bay coastline. I ask the Government to commit that the Environment Agency will have what it needs to respond in an agile and timely manner to coastal emergencies such as this one. The process for accessing such funding is incredibly complicated, but speed is of the essence in a situation like this.
Thirdly, we need meaningful, dedicated financial support for local authorities dealing with coastal emergencies, which have to cover the cost of emergency repairs and the potential loss of business rates revenue, car parking income and council tax. Councils are doing extraordinary work in extraordinarily difficult circumstances. They should not be left to carry the financial consequences of a national challenge on their own.
Fourthly, we need urgent action on the flood recovery framework to ensure that localised weather incidents are treated just as seriously as national events. This is a big problem in a small place, and it needs a big solution. Fifthly, we need a national strategy for households displaced by coastal erosion to be in place by March 2027.
Lastly, we need a commitment to provide Government-backed insurance for coastal erosion, and insurance policy premiums must be capped for people whose properties have been damaged by coastal flooding, including those in Torcross. I am very aware that not all those asks are the responsibility of MHCLG, but I hope the Minister will relay them to colleagues in other Departments.
I will close by making a broader point, because although this debate is about Start bay, it is also about something much larger. Communities the length of England’s coastline are facing versions of what Start bay is facing right now. From the Holderness coast in Yorkshire, where land is disappearing into the North sea faster than almost anywhere else in Europe, to the eroding cliffs of Norfolk and Suffolk, coastal communities are watching the ground literally shift beneath their feet. Many of them are already among the most socially and economically vulnerable in the country, and many feel forgotten. According to the EFRA Committee’s report, over 10,000 properties are at risk from coastal erosion in the next 80 years, as are 183 km of roads and 6 km of railway. If local authorities are to be able to manage the impacts of coastal erosion, they must be supported by the Government to carry out long-term strategic planning.
What this Government do in response to the crisis in Start bay will be noticed far beyond South Devon. It will send a signal about whether coastal communities can expect a national Government to treat their situation with the seriousness it deserves, or whether they will continue to be managed at the margins and left to local authorities and agencies that are doing their very best with nowhere near enough support. The sea does not respect administrative boundaries, departmental silos or funding formulae designed for a different kind of emergency. It requires a response that is strategic, sustained and genuinely cross-governmental. The EFRA Committee has provided a road map, and the communities of Start bay have provided the urgent human case. What is needed now is the political will to act.
The people of Torcross, Beesands, Hallsands and the wider Start bay are not asking for the sea to be stopped; they are asking for a Government who see them, who invest in them and who work with them to find a way forward. They are proud and resilient communities that deserve a response equal to the challenge they face, and so do coastal communities the length and breadth of this country.
The Parliamentary Under-Secretary of State for Housing, Communities and Local Government (Miatta Fahnbulleh)
I am grateful to the hon. Member for South Devon (Caroline Voaden) for securing this important debate. I start by saying that the Government absolutely understand and sympathise with those impacted by coastal erosion in Start bay. I was hugely saddened to see the impacts of the recent storms on the hon. Lady’s constituents and communities. The Government are committed to supporting her communities and indeed all coastal communities, because we understand and appreciate the urgency of the issue and the huge impact it is having.
I want to reiterate that coastal communities are a vital part of our national identity, serving as a reminder of our national pride and shared maritime story. We know that we must do more to both protect and preserve these communities against the vulnerabilities they face with coastal erosion. That is why, between April 2024 and March 2026, around £609 million has been invested into protection from sea flooding, tidal flooding and coastal erosion. It is also why the Government announced major changes to our flood and coastal erosion funding policy last October. This reform, which will take place this April, will make it quicker and easier to deliver the right flood and coastal defences in the right places by simplifying our rules.
Most recently, in January, the Government announced £30 million for coastal adaptation pilots, £12 million of which will be made available across England to deliver adaptation action in areas affected by coastal erosion. These pilots will help communities to take practical steps to prepare for coastal change, from relocating vulnerable community buildings to strengthening local infrastructure, such as beach access and coastal tourism facilities. The insights from these pilots will be applied across all coastal communities as they adapt to coastal change.
The hon. Lady is rightly concerned about the communities in her constituency. We know that residents in Torcross are concerned by the recent flooding, with wave overtopping and structural vibrations affecting some properties. As the hon. Lady has pointed out, the Environment Agency has done a huge amount of work in the area, and early investigations are clear that the defences remain structurally sound. However, we will continue to keep this under review.
The feasibility of further defence work at Torcross is currently being assessed by the Environment Agency and we expect the initial cost-benefit analysis findings to emerge shortly. Future schemes will, of course, depend on developing a full and detailed business case and securing the necessary funding, which the Department is committed to doing.
Caroline Voaden
Does the Minister accept that in such a cost-benefit analysis, there is also a cost of doing nothing? Maybe she could advise me if this is already the case. The cost of moving an entire community, with all the social and economic impact that has, is possibly much more than the cost of improving defences so that that community can stay put.
Miatta Fahnbulleh
We are very alive to the cost of inaction in the context of not just coastal erosion, but climate change more broadly. We are very clear that we need to take robust action to prevent, adapt and build our resilience to the change that is coming. My colleagues in the Department for Environment, Food and Rural Affairs are working very closely with both the Environment Agency and communities themselves to ensure that we are responding in the right way. To reassure residents, it is worth saying that the process of looking at how we bolster our defences is under way and being taken seriously, in addition to the work that DEFRA is doing.
I will take away the asks that the hon. Lady has set out. She will know that many of them sit with my colleagues over at DEFRA, and not with us at the Ministry of Housing, Communities and Local Government, but we do work closely together; as she says, the boundaries do not stop at DEFRA, and we absolutely need to work in lockstep. I will make sure that we relay all her questions, and ask the relevant Minister to respond to her and potentially arrange a meeting to discuss the particular issues in her area.
Alongside recognising the critical issue of coastal erosion—I hope the hon. Lady is reassured that we are taking that matter seriously and understand the need to act—we are also very clear that we need to continue investing in and supporting our coastal communities. We want to ensure that we are investing in the areas that are under pressure, and putting vital assets into retaining the heritage, the life and opportunities in our coastal communities.
That is why we have put in place Pride in Place funding across many of our coastal communities; at least 56 across the UK will receive more than £1 billion through the Pride in Place programme over the next decade. That money will be targeted at regeneration and, fundamentally, at investing in the priorities of the local community. Many will be thinking about how that investment in their infrastructure will best preserve their communities. We are also clear that the programme will champion local leadership, foster community engagement and strengthen cohesion. For me, that is important because we must absolutely do the job of protecting and insulating against the change that is coming. We must also make sure that we are investing and bolstering our communities, so that they continue to be thriving, vibrant places.
I thank the hon. Member once again for securing this important debate. I can reassure her that we will highlight the points that she has made with our colleagues in DEFRA and that we will do our part to build communities that are resilient and support those communities as they go through a very difficult transition to adapt to the changes that are coming. We will continue to do our bit to support coastal communities, and it is important that hon. Members continue raising the case for them.
Caroline Voaden
Something that came out in conversations that I had today was the complication of Torcross having assets that are owned by the Environment Agency and other assets, such as the road, that are owned by the council. There might also be third-party assets, such as quayside walls and other infrastructure. The complication of managing all the different agencies involved, alongside the complication of the MHCLG, DEFRA and the Department for Transport all having to work together, might suggest that we are reaching the point where the Government need to think about an office for climate change events or something like that; I do not know what we would call it, but we need to bring all those things together and for there to be oversight, because it is incredibly complicated to navigate this patchwork landscape of responsibility.
Miatta Fahnbulleh
The hon. Member is right. We are acutely aware that the landscape is incredibly complex and has evolved over time. We are trying to work at a local authority level, but, increasingly, as we try to build up the structure at regional level, we want to allow far greater co-ordination so that, ultimately, all the priorities of the local area can come together. Critically, rather than working in silos, we Departments should be working with one voice, in lockstep with the community.
I come back to the point that I have consistently made. This is an urgent issue. We are hugely aware of the impacts on our coastal communities. We are very aware of the need for us to work across departmental silos, and with the Environment Agency and the local authorities, in order to respond. There is an absolute commitment on all the part of us all to do that for the very reasons that the hon. Member has set out. This issue is having a huge, profound impact on communities. If we do not get this right, if we do not adapt, if we do not build resilience and if we do not build the infrastructure, there will be communities that will fall into the sea, and that is an unconscionable outcome.
I hope the hon. Lady is reassured that we are trying to work across boundaries. I will pass on the points that she has made to my colleagues in DEFRA who hold some of the levers, but there is a commitment for us to work alongside them in order to make sure that we are supporting our coastal communities, not just so that they are protected but, critically, so that they can thrive.
Question put and agreed to.
(3 weeks, 5 days ago)
Commons Chamber
Dr Ellie Chowns (North Herefordshire) (Green)
Madam Deputy Speaker, you will know that I like to start with the positives and the areas of common ground. I warmly welcome the fact that this Bill has come forward and a number of measures in it. It is very positive that the Government are taking forward votes at 16—something that the Green party has campaigned for since the year dot.
It is really good that there is some commitment to improving transparency on political funding. I very much welcome what the Secretary of State was saying earlier about getting rid of the political control of the strategy and policy statement over the Electoral Commission. I also welcome the increase in the commission’s fining capacity. Those are all really positive measures, but there is much more to do. We need stronger action to stop disinformation, get dirty money out of politics and improve trust in our political system.
Briefly, on votes at 16, let me say that 16 and 17-year-olds are engaged, active, interested and really passionate about the political system. It is right that they should be—they will have to live with the decisions that we make for longer than any of the rest of us—so I very much welcome the extension of the franchise. As young people themselves say, it is crucial that the investment is made in supporting political literacy, both in schools and more broadly, to ensure that young people—and all of us—have the political literacy to engage actively in the political process, which is an increasing challenge because of the grave threat of disinformation. We have heard from the hon. Member for Mid Norfolk (George Freeman) and a range of other Members about the problems, and there is a clear need to place duties on the large online platforms to ensure that AI-generated or manipulated content is flagged and controlled.
While the Rycroft review is very welcome, it is not enough, and serious concerns remain about external influence on our politics. I repeat my call for a Mueller-style investigation into Russian and other influence on British politics. We need to know what attacks were made in 2016 and since so that we can have greater clarity and transparency over our politics.
I warmly welcome the points made by the hon. Member for Ellesmere Port and Bromborough (Justin Madders) about the importance of a transparent register of political adverts. We need to know who is saying what to who so that there is transparency, because currently we do not know that, and really disruptive and disinformative things are happening.
As the hon. Member for Lancaster and Wyre (Cat Smith) said, we must have, at a minimum, a cap on donations and a full ban on crypto-donations. That is critical. It is really quite extraordinary that the Thailand-based crypto investor Christopher Harborne has been allowed to donate £9 million to Reform UK—I notice that its Members are still not here. We also need annual spending limits, so that our politics is not distorted by money being spent around the edges of elections, for example.
What else is missing? We need to scrap voter ID, which is a barrier to political engagement and has no justification, and we need increased investigative powers—more money and teeth for the Electoral Commission. It is a profound irony that the Representation of the People Bill does not tackle the fundamental problem with our representation. True representation of the people requires seats to match votes and every vote to count equally, so I call on the Government to take this opportunity to bring forward proportional representation. Ensuring that everyone’s vote counts equally is the principled thing to do, and it is the popular thing to do.
Helen Maguire (Epsom and Ewell) (LD)
The Bill presents a vital opportunity to pave a new way for politics —a politics that is good, honest and free from foreign interference.
I welcome many of the Government’s proposed changes, but the Bill does not go far enough. Loopholes can still be exploited, with foreign billionaires simply needing someone in the middle willing to co-operate and act as the middle man before a donation reaches the party’s pockets. Using company revenue rather than profit to determine eligibility for political donations is also too weak a safeguard against foreign money. Furthermore, the issue of cryptocurrencies has also not been addressed in this legislation, as many Members have said this evening.
International IDEA reports that 49% of countries worldwide place some kind of cap on donations to political parties. Labour must do what is right and use this Bill to finally cap donations to political parties. Free and fair elections are central to our democracy, so I am pleased that the Minister listened to my concerns when I met her last week, and the strategy and policy statement will now be withdrawn. This will ensure the independence of the Electoral Commission.
There is also the growing issue of disinformation, which this legislation fails to address. With the welcome change in voting age, even more of our electorate must now wade through online content and determine what is real and what is false. It is therefore imperative that we do not go into another election without robust, updated measures to tackle disinformation. As we consider voters, I am pleased to see changes to move the postal vote application deadline to three days earlier in the electoral timetable, and I hope that this helps our overseas electorate.
Finally, this Bill makes progress, but it cannot be the end of the road for electoral reform.
Caroline Voaden
Does my hon. Friend agree that, as our electoral system fractures into a multi-party system—we have traditionally had a system involving two parties in this country—there is a massive missed opportunity to use the Bill to introduce a commission that could bring forward a proportional voting system? That would ensure that we never again had a Government who won 62% of seats with only 34% of the vote.
Helen Maguire
I totally agree with my hon. Friend. Indeed, I believe that at recent Labour conferences, many Labour members brought up the same point.
This House must strive for a system that is bold and ambitious, and that puts everyday people at the heart of British politics. The legislation needs to go further to deliver for our constituents.
(3 months, 1 week ago)
Commons ChamberI thank my hon. Friend for his consistent championing of Peterborough in this House—and, frankly, in my ear—at all times. He always stands up for his constituents, and I have been pleased to visit Peterborough on a number of occasions. I want to see the significant investment that we are making in Peterborough help it to thrive. It has great potential and fantastic young people, and I look forward to being invited back to see exactly what is happening there.
Caroline Voaden (South Devon) (LD)
I welcome the multi-year settlement, but I am deeply concerned that the statement made no reference to the particular pressures facing rural areas. Devon has the longest road network in England, so everything costs more—SEND, care, bus services and bin collections—and Dartmouth library is now facing a cut in hours because of funding cuts. Using deprivation as a way to calculate the funding formula does not take account of the older population, and my concern is that hidden pockets of deep deprivation, in an otherwise wealthy area, will not be recognised. Can the Minister reassure me that hidden pockets of deprivation will be recognised by the formula?
I have answered a number of questions on rural areas, so I refer the hon. Lady to the answers I have already given. I have real confidence in the latest indices of deprivation. The data quality is much better, so we are able to meet the challenge she sets.
(4 months ago)
Commons Chamber
Miatta Fahnbulleh
It is my pleasure to open the debate on day two of Report on the English Devolution and Community Empowerment Bill. Today we are concerned with parts 3, 4 and 5 of the Bill, which cover provisions relating to local government, community right to buy, local audit and the ending of upward-only rent review clauses in commercial leases. As with yesterday’s debate, I will focus on the substantive changes made in Committee and those we have brought forward on Report.
Before I turn to the amendments, I would like to address some of the comments made in yesterday’s debate. Opposition Members suggested that this Government have not taken on board any of their suggestions. Today I am delighted to demonstrate that the Government have been listening to the points raised by Members in the House and by our mayors. We have today announced the next big step in our path to devolution. Mayors will be given the power to raise revenue locally through a new overnight visitor levy. We are consulting on whether to also grant this power to leaders of foundation strategic authorities. This is a groundbreaking step for the future of devolution, with transformative investment potential for England’s tourism sector and the wider economy.
Mayors have already proven what is possible when they are given the tools to deliver, from the Mayor of London using business rate supplements to deliver the Elizabeth line to the Mayor of Greater Manchester using his mayoral precept on council tax to provide far improved bus services. Making places more attractive to visit, live and work in will attract further investment and improve the visitor experience, so I am proposing that constituent authorities within a strategic authority that implement a levy should be eligible for a share of the revenue raised for growth-related spending. Tomorrow, the Exchequer Secretary to the Treasury and the Secretary of State of State for Housing, Communities and Local Government will publish a consultation with the details of the proposed levy. We recognise that businesses and potential visitors may have concerns about the effects of a new levy, and we will take those concerns seriously. I expect mayors to engage constructively with businesses and their communities to hear those concerns throughout the consultation period and beyond
Caroline Voaden (South Devon) (LD)
I am interested in this proposal, but I wonder whether it will be applicable to council areas that do not yet have a mayor and may not have a mayor for some time. Will they still have the power to impose an overnight visitor levy?
Miatta Fahnbulleh
We will consult on whether that power should be extended to foundational strategic authorities that do not have a mayor, and we will see the responses to that consultation.
I said yesterday that the Bill is the floor, not the ceiling, of this Government’s ambition. Today’s announcement shows just how seriously we take the mayor’s right to request new powers, and our commitment to give them the tools they need to drive growth for the area. I thank my hon. Friends the Members for Liverpool Wavertree (Paula Barker) and for Vauxhall and Camberwell Green (Florence Eshalomi) for raising that issue, and my hon. Friend the Member for Uxbridge and South Ruislip (Danny Beales) for his contribution to yesterday’s debate.
I turn now to the changes made in Committee. The Government recognise how much communities value their local sports grounds as spaces that foster local pride, belonging and identity. The Bill will automatically designate grounds across England as sporting assets of community value, ensuring that those essential local spaces are protected. We have introduced a new 16-week review period for communities seeking to purchase a sporting asset of community value accommodating more than 10,000 spectators. That amendment is about putting processes in place to safeguard the long-term sustainability of larger sports grounds, ensuring communities have the capability and readiness to manage them effectively.
The Bill delivers fully on our commitment to fix the broken local audit system that we inherited, and will set local government on a firmer financial footing. In Committee, we inserted new provisions relating to financial penalties, sanctions and criminal offences. They will ensure that the local audit system has the right levers in place to deter and sanction improper behaviour. The new local audit office will be established as the regulatory authority for that system, and will be given further powers to conduct assurance reviews.
The Bill will ban upwards-only rent review clauses in new and renewed commercial leases. Such reviews create an imbalance of supply and demand, contributing to the blight of empty properties, from high street shops to empty office floors. Our amendment will close loopholes in the ban, ensuring that tenants who vacate or have not occupied properties are still caught by the ban. It will allow tenants to trigger a rent review in all leases, preventing landlords from avoiding rent reviews during times of rental decline
I turn now to the amendments tabled on Report. New clause 46 will confer the general power of competence on England’s national park authorities and the Broads Authority. The legislation underpinning our national parks currently limits their powers to activities directly related to their statutory functions, creating uncertainty and stifling their ability to innovate. Providing them with the general power of competence will enable them to be more innovative and agile in delivering their statutory functions, and to contribute towards the Government’s wider agenda.
Dr Simon Opher (Stroud) (Lab)
I thank the Minister, who is not in her place, for taking the time to meet me to discuss my amendments 107 and 108, which concern the community right to buy.
This Bill is one of the most exciting and empowering pieces of legislation to come from this Government. For the first time, communities will be given a genuine first opportunity to buy and own the places that matter most to them. Instead of seeing valued community assets sold off to the highest bidder, residents will be able to step in, organise and take ownership for themselves. That is truly transformative.
In Stroud, community ownership is essential for maintaining services and the environment for rural villages and towns. Community-owned village shops, such as those in Horsley and Coaley—and, indeed, my favourite shop in the world, which is in my village of Uley and is run by fabulous volunteers—keep the villages alive and provide access for older people and those without transport.
Village pubs are dying off. There are campaigns in my area to keep the Rose & Crown in Nympsfield open and, in fact, people have succeeded in making a community pub at the Red Lion in Arlingham. There are also community rooms such as the Trinity Rooms in Stroud, which the community is fundraising to buy, hopefully by Christmas. That is all very exciting. Land in Stroud aptly named the Heavens is being purchased by the community, as is Rodborough fields. This Bill will finally give legal backing to those campaigns, but I believe that we can make one important improvement.
As drafted, the Bill refers to “economic or social interests” when defining assets of community value, but it leaves out environmental interests. That means that wildlife-rich spaces cannot be protected, even when they provide major community benefits, including access to nature and improvements to wellbeing.
My amendments simply would extend the community right to buy to include assets that further the environmental wellbeing of local communities, granting them the ability to buy and, importantly, safeguard nature-rich areas if they come up for sale. I am a GP, and I use social prescribing extensively. Walking in nature is a proven way of getting better without using pills, so I very much urge the Minister to listen to what we are saying. My hon. Friend the Member for Worthing West (Dr Cooper) quite rightly said that this is about public health.
I know some Members are concerned that these powers could block the house building that we all want so much. That is why my amendments provide a safeguard in restricting the eligibility to land that has not been allocated for development in the local plan.
This Bill represents the biggest transfer of power out of Westminster for a century. It will give communities the right to shape, to buy and to rebuild. In Stroud, we are ready to embrace that opportunity, but we must ensure that the law properly recognises environmental value alongside social and economic wellbeing. That is why I urge the Government to support my amendments to ensure that the Bill delivers the fullest possible benefits for communities up and down the country.
Caroline Voaden
New clause 10, which I tabled, would require the Secretary of State to re-establish the community ownership fund, to which strategic authorities can apply for funding. We have heard from lots of Members in the House today about the value of their local community-owned businesses.
Community-owned spaces are of immense economic and social value to their local area. Businesses across the country under the community ownership model are defying the odds, when small businesses in retail and hospitality in particular are struggling to survive. According to Plunkett UK—I commend its work in this area—business survival rates for community businesses remain exceptional, with a five-year survival rate of 97%. That is radically higher than the 39% survival rate of private small and medium enterprises over the same period. These thriving local enterprises reinvest back into their communities, creating a positive cycle. They also provide exponential benefits to local areas and the people who live there. They tend to source goods and services locally, creating a circular economy in the places where they exist. They support charitable activity, provide fundraising for local causes and improve the aesthetics of our towns and villages through gardening initiatives, improving the quality of our green spaces, encouraging more people to get outdoors and improving arts and culture.
From pubs and shops to community centres and hubs, these spaces are the pillars of their communities, bringing people together and nurturing a shared pride in their town or village. They are the difference between a bunch of houses and a genuine community. At a time when community cohesion is frayed, division is commonplace and we are being pulled apart by dangerous individuals seeking to widen the cracks that are showing in our society, these community spaces offer a way to reunite communities. Through something as simple as providing a place for people to meet and talk to each other, community spaces combat this increase in division with social interaction, enabling communities to come together to celebrate where they live.
Community-owned spaces provide a wide array of volunteering opportunities, employing more than 20,000 volunteers across this country, from young people right through to older people. In a recent survey by Plunkett, 58% of these businesses stated that older people benefit most from their presence. In rural areas such as South Devon, that is especially important. Isolation can happen when people live far from neighbours in rural areas, and in many ways these places help to strengthen the very fabric of rural life for those people.
It is not easy for a community to buy a building or space that is at risk of closure or has been left unused. That is why the community ownership fund is vital, as Government funding is desperately needed to enable a sustained increase in community ownership. A community ownership fund would develop a larger pipeline of start-up groups and build the capacity and confidence of those groups to progress to the trading stage. If it were reopened, it would have a transformational impact by enabling the spread of community spaces and the extensive benefits they bring.
In the three years that the community ownership fund was in place, it saved thousands of cherished community sites at risk of closure. Thanks to the fund, community groups could generate income, build financial sustainability and strengthen community ties. It is the Government’s mission to double the size of the co-operative sector, as set out in their manifesto. It is time, therefore, for them to correct their mistake, to fulfil their promise and to seize the opportunity that this Bill presents by backing my new clause 10 and reopening the community ownership fund.
Maya Ellis (Ribble Valley) (Lab)
I come once more to this discussion with a huge passion for devolving power to local areas. The northern powerhouse promise encouraged me to move back home to the north from London in my 20s, and I am so proud to have spent most of my career since then working to grow the local economies in Manchester and Lancashire. The city of Preston, part of which is in my constituency, has the telltale cranes all over the sky and grade-A office space being built at pace. Growth is best when it has local inputs and local impact, and with a two-hour train journey to London, there is no reason that Preston and cities like it should not become a key and critical spoke in our national growth story.
I am hugely grateful for the incredible energy of the Minister and for that of my hon. Friend the Member for Oldham West, Chadderton and Royton (Jim McMahon), who poured himself into this Bill for the past year, ensuring that areas such as Lancashire can get the powers they need to turbocharge their growth in the way that only Lancastrians know how.
Today, I will speak about new clauses 63 and amendments 42 and 150, which pertain to neighbourhood governance. I am grateful to have had the opportunity to participate in the Bill Committee, during which I sat through lengthy debates on all these clauses. I have not directly supported the range of amendments concerning neighbourhood governance arrangements and parish and town councils, and on the whole I understand and largely support the Government’s argument against them—namely, that if we are intent on devolving power, we should allow local areas to manage that power as well, rather than dictating from Westminster how it must be managed. However, I wish to mention a number of instances in which I agree with the intent behind the amendments and to say something about the issues that they raise, in the hope that the Government can add helpful secondary legislation or strong guidance to help local areas make these changes a success.
As I observed during the development of plans for devolution in Lancashire, too many residents and organisations told me that their part in the consultation on the process felt tokenistic at best, if it was there at all. I think there is still a broad question for the Government to answer: how will we ensure that the interests of all residents and local groups have been properly fed into local changes, and how will we continue to hold local areas to account for maintaining that engagement?
My constituency contains many parished areas, while in other parts of it local community groups come together ad hoc, so I see the strengths of both formal and informal community leadership. I have been a proud member of my local parish council for many years, and it is often the place where I feel most connected to my community. The Minister has made clear throughout the Bill’s development that town and parish councils will not be affected, and indeed will have every right and opportunity to take on more responsibilities through the Bill. I commend that, and I thank her for protecting this vital part of our democracy.
While I recognise that there is plenty of public sentiment against mandating areas to become parished—which is why I cannot support new clause 63 directly—there is certainly public support for simplified, easily understood structures of government that the public can more clearly hold to account. Indeed, the Government’s own White Paper on the Bill said that its aim was to simplify local government and make it more consistent. We need only look around us to see what happens when people do not understand how our governing structures work and do not feel connected to them. People are increasingly disillusioned, and at a time when our economy is relying on people to come together with new ideas to create growth, despondency is our biggest enemy. While we need to allow flexibility, might the Government be able to show a clear preference for a town or parish council structure in their guidance, and/or ensure or require that any proposed solution involves clear democratic accountability?
I am so grateful to this Labour Government for being brave enough to push this Bill as one of their first priorities. Done is better than perfect for sure, and any devolution is better than none. However, in my decades of working with all types of communities, often hearing things that challenge some of my progressive dreams for and assumptions about this country I love, I have learned that progress and tradition can work hand in hand if we take the best from both. I therefore urge the Government to make the most of the powerful structures we have—town and parish councils, which already run 90% of this great country—part of our future, and to ensure that we truly have accountable democracy at every level so that every person has a voice, as has always been the Labour way.
(4 months, 3 weeks ago)
Commons Chamber
Caroline Voaden (South Devon) (LD)
Nearly 100,000 jobs have been lost in hospitality since the last Budget. Does the hon. Member agree that if that number of jobs had been lost in the steel industry or a car plant, it would have been front-page news day after day for weeks on end? Yet almost nothing is said about the jobs lost in hospitality, because they are dispersed right across the country, so they are almost invisible. Actually, an enormous number of jobs have been lost.
Jack Rankin
I absolutely agree. It goes beyond that, because a lot of hospitality jobs are the first jobs that people do. We talk about youth unemployment; we need to get people into the pattern of earning a living, and to enable them to gain the softer skills of serving customers and getting up on time. As we all know, that is so important to young people’s development. That is a problem not only now but for the future.
What do my landlords, hotel managers and businesses on the high street tell me their biggest problem is? Business rates. That is why I welcome my party’s commitment to permanently scrapping business rates for all retail, leisure and hospitality businesses up to a £110,000 cap.
Caroline Voaden (South Devon) (LD)
This debate has reminded me of the maiden speeches we heard last year. We have had a really good tour of the country, taking in Animal shops, fun palaces and all sorts of stuff.
It has been great to talk about high streets, which are more than just shopping streets. They shape how people feel about where they live. When high streets are thriving, people take pride in their towns and feel a real sense of optimism about their area and, by extension, the country. When shops, cafés and pubs are closing, that optimism fades, leaving people discouraged and looking for change.
If the Government want people to feel that their lives are improving and their communities are thriving, and if they want people to feel hopeful and optimistic, supporting the high street must be a priority. That will not only help our traders and shops survive, but help restore pride in our towns. It will ensure that people are invested in the future of their communities and, by extension, the country, rather than being drawn to alternative voices offering quick fixes. I hope that that will be an incentive for the Government to rethink those of their measures that have been hitting the high street.
I am really proud to represent a constituency with fantastic high streets, including in Kingsbridge, Brixham, Modbury, Dartmouth, Salcombe and, of course, Totnes, which is widely praised for its unique high street, on which I was a trader in one of my past lives. As attractive as those streets are, in reality, all the traders are struggling. As many Members have said, the increase in national insurance contributions has hit those businesses hard. One small café in Brixham faces an extra £15,000 in national insurance costs this year. That is just unmanageable for a small café. I was told by a larger restaurant—part of a chain of 17 successful restaurants, which act as a magnet, bringing people to communities across south-west England—that the cost of the increases is equivalent to the money that would be spent opening a new restaurant, and opening a new restaurant would revitalise another town. That is so damaging. Not only is the NIC rise causing hardship, but the reduction in business rates relief from 75% to 40%, combined with the abolition of the cap, effectively leaves small businesses subsidising large chains.
I am running out of time, but I would just like to add that eight pubs are closing every week, and nearly 100,000 hospitality jobs have been lost since the Budget. If that happened in any other industry, it would be headline news, but the Government seem oblivious to what is happening. We call on the Government to exempt hospitality SMEs from the employer national insurance contributions increase, and to consult on creating a new band, from £5,000, to reduce the cost of employing part-time and seasonal staff, who are absolutely vital to the hospitality industry.
I call the shadow Minister.
(6 months, 2 weeks ago)
Commons Chamber
Rachel Blake
I wish to speak against Lords amendments 58 to 62, which expand eviction grounds, and Lords amendment 27. I also wish briefly to revisit the core principles of the Bill, which are: ending no-fault eviction, and providing stability, not just for individuals but for the private rented sector; introducing a private renters’ database and an ombudsman, to restore rights to private renters, as well as transparency, so that they understand their tenancy in more detail; and to establish Awaab’s law in the sector. Those are vital interventions in the private rented sector, which we know is diverse, and it is important that the Bill becomes law as soon as possible. All of us, on both sides of the Chamber, will recognise the impact that uncertainty on the issue has had on the private rented sector for a number of years.
I have to say that it was pretty unedifying to listen to the Opposition reneging on their previous commitments to ending no-fault eviction. The first commitment from the Conservatives to ending no-fault evictions was in 2019—I think that was about four Conservative Prime Ministers ago, but I have given up counting. I understand that the shadow Housing Secretary might not remember the position that the previous Prime Minister took on the issue, but this provision cannot come into law soon enough. The number of private rented sector no-fault eviction notices that my constituents receive, and the instability that they cause in the sector, are causing real harm and distress to those who live in it.
Lords amendments 58 to 62 would expand possession ground 5C, and those completely unnecessary expansions provide yet more uncertainty in the sector. They open up the risk of further additional claims, and of introducing other grounds for eviction, which undermines the overall principles of the Bill. I support my colleagues who have spoken against Lords amendment 27, which would raise the evidence bar. It is completely unrealistic to think that it would be possible to do that, not only because bidding wars and contests often take place through verbal dialogue, but because of the lack of resources available to local authorities to investigate such cases. I do not believe that the amendment is practical, or was tabled in particularly good faith. We want renters’ rights restored, and a balance between renters and landlords. I cannot stress enough the urgent need to bring forward the Bill, to give confidence to renters, all those who rely on people living in private rented accommodation, and those living and working across the UK who need the sector to be successful. I urge Members to vote against the Lords amendments, and to support the Government in getting the Bill into statute.
Caroline Voaden (South Devon) (LD)
I welcome the Government’s move to empower tenants. For too long in this country, owning property has been seen as a way to create additional wealth, rather than the intention being to provide a safe, secure and warm home for tenants. Not all landlords are bad, but there are some bad apples out there, and all those who are unable to get on to the housing ladder, or who actively choose to rent, deserve security of tenure, and confidence that they will not be evicted at the whim of a landlord, which often means being forced to move out of the area, and uprooting children from schools.
I declare an interest, because my younger daughter has spent four years renting in London, and for the last two, she has been living in horrific, mould-covered flats. She had to move out of the last one early, because the mould crawling up the walls was so bad that it was affecting the health, and ruining the belongings, of her and her flatmates. In 2025, that is simply not acceptable. For the thousands of people living in unsuitable accommodation, we must ensure that local authorities can take action against negligent landlords. For that reason, the Liberal Democrats do not support Lords amendment 26.
I support Lords amendment 39, which would extend the decent homes standard to accommodation provided by the Ministry of Defence for use as service family accommodation. In my constituency of South Devon, the prestigious Britainnia royal naval college brings a large number of military families to the town of Dartmouth, some of whom live in MOD housing. Those families, who commit to a life of service—the whole family is involved when one member serves our country—deserve, at the very least, a home that is safe, comfortable, warm, energy efficient and decent. I am not sure that I agree with the security argument offered by the Minister, given that much MOD housing is located outside military bases. It is not beyond possibility to find a way to ensure that local authorities can access that housing. Liberal Democrats have long campaigned for decent homes for military families, who deserve exactly the same standards and legal protection as other renters, and I urge the House to support Lords amendment 39.
Turning to pets, a friend of mine recently failed to move back to Devon because she simply could not find rented accommodation in her price bracket, and her search was severely hampered by the fact that she has a much-loved family dog. Being told that she was not eligible even to look at properties because of the dog was discriminatory, and it made a difficult search impossible. We are in an area that is short of houses available to rent. If we take the average rent in the south-west of £1,181 per month, the proposal to allow landlords to request pet damage deposits of up to three weeks’ rent equates to an additional £817 up front, which is simply out of reach for most tenants. The current rental deposit cap of five weeks’ rent is sufficient to cover any potential pet-related damage, and nobody should be priced out of pet ownership simply because they do not own their own home. I therefore do not support Lords amendment 11.
Finally, I turn to agricultural workers. Agriculture is one of the largest industries and employers in South Devon, which is a predominantly rural constituency. Many of those working on farms as dairy workers, relief milkers and tractor drivers are required to live on site, as they have to work incredibly unsocial hours, and living on site makes the job slightly more manageable. I support measures in the Bill that allow repossession when a property is required to house agricultural workers, whether they are employed or self-employed. Farmers regularly tell me how difficult it is to find housing for farm workers, with many having to rely on caravans and cabins that are not suitable for long-term living. As it is increasingly common in farming for workers to be self-employed, we must ensure that they, too, are covered by the grounds for repossession, so I support Lords amendment 55.
Dave Robertson
I am glad that I managed to sneak in this speech, and I hope I will finish it. There have been many speeches made by Members on both sides of the Chamber, many of which have focused on the many things that the Bill will hopefully achieve. I confirm that my hon. Friend the Member for Paisley and Renfrewshire South (Johanna Baxter) does have two very cute cats.
(9 months, 2 weeks ago)
Commons Chamber
Gideon Amos
Tomorrow, as the hon. Gentleman has reminded me. If, tomorrow, the Liberal Democrats are the only party to vote against the Bill because of the harm that it does to the rights of communities and local people, to fairness and to nature, all three of which are cornerstones of what liberals believe in, we shall bear that standard proudly—and we shall do so again.
Caroline Voaden (South Devon) (LD)
I have tabled new clause 65, which would require housing development applications to include provision for green space within 15 minutes of new homes, supporting nature and helping people to lead happier, healthier lives. Does my hon. Friend agree that the Government have missed an opportunity to require new housing developments to be designed in a way that would be not only good for nature and the environment, but good for the health and wellbeing of residents?
Gideon Amos
I agree with my hon. Friend, who is a great champion of green spaces in development. In our contribution, we are showing how the protections of nature could be strengthened in the Bill without entire chunks of it being deleted. I shall say more about that later.
As we heard from the Chair of the Select Committee, the hon. Member for Vauxhall and Camberwell Green (Florence Eshalomi), when it comes to rights for individuals, real freedom often depends on decent homes that people can afford and where they can bring up their families. When homes are genuinely affordable for local people, they will command real community consent and support in the planning process. Unless we give a commitment to a massive increase in the number of social and council rent homes, we will not be responding to the needs of those people, and we will fail to meet head-on the criticism that housing developments today are more about profit than about people.
(11 months ago)
Westminster HallWestminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
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Caroline Voaden (South Devon) (LD)
I beg to move,
That this House has considered residential estate management companies.
I thank the Backbench Business Committee for listing this debate. It is a pleasure to serve under your chairmanship, Mr Stuart. It is good to see so many MPs back straight after the Easter break, ready to get stuck into the gritty issue of residential estate management companies, whose poor business practices have affected so many of our constituents. In that spirit, I come here today to address the Minister and to call for urgency from the Government in dealing with some serious issues, and for more regulation and new legislation.
The issues raised repeatedly by constituents cause not just frustration, but in some cases serious distress. They cost significant amounts of money and sometimes lead to the loss of the entire value of a property investment at the point of resale. The situation for both leaseholders and freeholders has become so bad that such estates are now commonly referred to as “fleecehold” instead of leasehold. We note that the Government’s White Paper on leasehold reform, published last month, said that their legislation will make conversion to commonhold easier, but we feel that that will not go far enough. We look forward to seeing the legislation laid before the House. The previous Secretary of State—then the Secretary of State for Levelling Up, Housing and Communities—said that he was a “man in a hurry” to liberate leaseholders from unfair practices. He clearly was not in quite enough of a hurry, so I urge haste on the current Secretary of State.
The Liberal Democrats have long called for reform for the 4.8 million existing leasehold properties in England. In fact, it has been a campaign of ours since Lloyd George introduced the people’s Budget in 1909. We will keep going until we see some change. We want leasehold tenures abolished for all properties, including flats, and we want all existing leaseholds converted into either freeholds or, where appropriate, commonholds. We are disappointed that existing leaseholders are not covered by the Government’s proposals and we urge a rethink.
I congratulate the hon. Lady on securing this debate. To add to the point she is making, is she not shocked by the scale of what we are seeing across the country? Of the new homes built in 2021-22 by the 11 largest developers, 80% are subject to fleecehold.
Caroline Voaden
Yes, I absolutely agree. I will come on to that a little later.
To get back to the core issue of estate management companies, every type of resident—leaseholders and freeholders—is affected by rogue practices. Perversely, the situation is often more difficult for freeholders, who do not have the same statutory rights as leaseholders to take challenges to a first-tier tribunal. Where the landlord of an estate is a housing association, no one has any right to go to tribunal if that landlord fails to manage the property properly. That, too, needs to be looked at, but it falls outside the scope of today’s debate.
Whichever way we look at it, residents—whether housing association tenants, private tenants, owner-occupiers or retirees, living in a house or a flat—are being ignored, dismissed, intimidated and, frankly, fleeced by management companies that are not subject to any kind of regulation. We have all seen what happened in the water industry when private operators were allowed to focus solely on the profit line, ignoring their responsibilities to the environment while keeping shareholders happy. I believe we are looking at the next great scandal of our time: companies that may be owned by a shadowy collection of overseas investors eating up the smaller players in the UK market, building up their wealth and size so that they can ride roughshod over anyone who is tenacious enough to question their methods or ask for legitimate explanations of where their money has gone.
Calum Miller (Bicester and Woodstock) (LD)
Across my constituency, from the largest developments with more than 1,000 homes to the smallest with just a dozen homes, residents are benighted by the lack of transparency of those who run the management companies. Does my hon. Friend agree that a great step forward would be for the Government to insist on the timely publication of itemised accounts, so it is much clearer to residents how their money is allegedly being spent on their behalf by the management companies?
Caroline Voaden
I absolutely agree and will come on to that as well.
As a new MP coming into this place, I realised that some issues would be pertinent only to my constituency and others would reflect similar casework elsewhere, but when I reached out to colleagues to see who else was dealing with casework about estate management and particularly FirstPort, I was shocked at the response I got. At least half my hon. Friends on the Liberal Democrat Benches are supporting residents whose properties and estates are managed by FirstPort, and a dozen of us were in the room to question managing director Martin King when he responded to our invitation and came to Parliament to answer some of our more urgent questions. Following our invitation, he was also invited by Labour and Conservative MPs. He must feel very popular with so many invitations to Parliament, but it is rather a reflection of the desperation of so many of our constituents, who have exhausted all other avenues to raise complaints with FirstPort.
Martin King’s company manages more than 310,000 homes across England, Wales and Scotland, so we are talking about at least half a million people dealing with just this one company. It is extremely disappointing to report that since the Lib Dem meeting, at which great things were promised, the only response we have received from the south-west regional operations director for the company has been one automatic email reply. It is not good enough.
Max Wilkinson (Cheltenham) (LD)
It is the same experience for residents, is it not? When MPs ask questions of FirstPort, we do not get any replies. People turn up, smile and say nice words—soothing things—but nothing happens. The residents get the same thing. That includes a 94-year-old woman whose daughter contacted me to say that she was refused a request to install a stairlift and she cannot sell the property, because the management fees that FirstPort charges are so high, so she is effectively trapped, unable to get up and down the stairs. Is that not a disgrace and does it not go to show that FirstPort just doesn’t give a damn?
Caroline Voaden
I agree that it is an absolute disgrace. We must have some kind of legislation to bring these companies to book.
In the UK, we have a rather strange situation whereby a new housing estate is built, but the council may not adopt the new area, so the builder has responsibility for roads, green spaces and communal areas and then passes that on to a third-party management company. Residents end up paying council tax on the one hand and estate management fees on the other. These charges can increase at any time, with no accountability or redress.
The Competition and Markets Authority has recommended ending the private estates model, which has been used for 40% of all new builds across Britain in the last five years, and potentially more, as the hon. Member for Warwick and Leamington (Matt Western) said. The CMA has recommended mandatory adoption by local councils of public amenities on new housing estates. Even when roads are accessible to the general public and green spaces can be enjoyed or used by anyone, residents can end up being responsible for their upkeep through service charges. The tenants of such developments pay both council tax and an estate management charge, yet they often receive a far worse service than those who live in adopted developments and are subject only to council tax, so I urge the Minister to consider ending the practice of shared ownership of public spaces for the vast majority of new developments. I would like to see a presumption that the shared areas around new developments are almost always adopted by the local authority where the development is standard in nature.
Ahead of this debate, I asked the House of Commons Library to engage with people who had signed relevant petitions. More than 1,100 people responded, one third of whom were freeholders. Ninety-four per cent said they were unhappy or very unhappy with the services provided by their management company; 94% said the service charges were unfair; and 94% said the transparency of what the service charges were for was completely inadequate.
Olivia Bailey (Reading West and Mid Berkshire) (Lab)
My constituents living in Beansheaf Grange and Fairfields, to name just two developments in my constituency, recognise much of what the hon. Lady is saying. They tell me about high fees, poor service and uncleared rubbish, even leading to marauding rats. Will she join me in welcoming the firm action that this Government are taking to be in a hurry to address this deep unfairness?
Caroline Voaden
I am glad that the hon. Lady says that the Government are in a hurry. We are looking forward to seeing the legislation come before the House.
Out of the 1,100 people to whom I was referring, only 10 were happy with the way things were going with their management company. By anyone’s measure, that is a pretty shocking state of affairs. Respondents talked of shoddy workmanship, years of delays in getting repairs done, charges for gardening where no gardens exist, charges for new windows when windows are not replaced, charges for buildings insurance when there are no communal buildings, charges for new light bulbs when there is no communal lighting—it would be funny if it were not so serious. They talked of broken lifts, flooded car parks, leaking ceilings, including one that has been leaking for nine years, exorbitant insurance charges—the list goes on and on.
One other aspect worthy of scrutiny is the situation whereby a developer sets up a management company made up of family members of the original developer, leaving residents with a real challenge to get to the heart of who is truly accountable. That is something that I have seen in my constituency, and I am sure that it happens across the country. It is something that the Government need to address in whatever they come forward with.
Caroline Voaden
The right hon. Member raises a very good point. The ownership of some of these companies is murky to say the least.
Service charges are going up way beyond inflation, with no clear explanation of what the increases are for, and management companies refuse to give clear explanations when asked. At Camomile Lawn in Totnes in my constituency, residents were told that the annual contribution to a reserve fund had been increased from £2,000 to £8,000 a year—over 265%. Service charges were raised 23% based on a 10-year plan, but the plan was not shared with the residents, even when they asked. Accounting costs went up 55% in one year with no explanation given. This is a classic example of poor communication and a refusal to engage constructively with residents who want to understand the basis on which financial decisions are made.
The lack of transparency around service charges has been debated in this House many times, not least in December 2023 on Second Reading of the Bill that became the Leasehold and Freehold Reform Act 2024. It is way past time that management companies were required to act responsibly, treat residents with respect and provide timely, straightforward and accessible information to all residents, regardless of their status as leaseholders or freeholders, and regardless of age.
One resident said:
“We feel like we are being taken advantage of because they see us as old.”
That is a common reflection of those living in retirement villages. Too often, questions go unanswered, letters and phone calls are ignored, and justifiable requests for clarity and information on charges get rebuffed or given such poor responses that they do not mean anything. A delay in bill payment caused by asking a legitimate question often leads to a penalty charge for late payment—a sharp practice that clearly has to end. What is more, people are being forced to pay for the privilege of having asked those questions. One respondent said:
“I received a bill of more than £2,000 for incurring charges trying to see where my money was being spent—£25 per email, £35 per phone call and solicitor charges on top. I felt completely robbed.”
Older people often feel bullied by management companies—scared to question charges, confused by badly written statements and threatened with legal action if they are late paying charges because of wanting to question something. One resident said:
“Our management company leverage their familiarity with legal processes and the vast financial resources at their disposal to bully and intimidate leaseholders.”
This is not just about money; it is about how people feel living in a home that they may have put their life savings into buying. These homes are often sold as offering peace of mind, but one respondent said:
“I’m drained, scared and mentally exhausted. It feels like I’m being financially and emotionally worn down for simply asking for basic transparency and fairness.”
Another said:
“My mental health has been seriously impacted by the state of our building. No one should be unhappy in their home or feel like they don’t want to go home.”
When it comes time to sell, it is yet another tale of woe. Management companies do not respond to requests for information from solicitors; sellers are charged thousands of pounds for management packs that are required for the sale but take months to arrive; buyers get frustrated and pull out, and the price of the property is impacted. Meanwhile, service charges keep rising and ground rents keep being charged.
As my hon. Friend the Member for Cheltenham (Max Wilkinson) said, people are trapped in their properties. Service charges can make it impossible to sell, as they have risen way beyond those charged on new properties in the same area. Dr Janet Richardson’s father bought a flat for £106,000 in 2006. In 2022, he had to move into a care home and she tried to sell the flat. Some months after putting it on the market she received an offer for £10,000 below the purchase price, which she accepted, but for months FirstPort did not answer requests for information, so eventually the buyer pulled out. The flat went back on the market at an even lower price, but still has not sold, three years after first being put on the market. Dr Richardson has now had to agree to sell the property through an assured buyer scheme and says there is likely to be nothing left once all the debts have been paid. She has shown me the figures—it has all gone. If FirstPort had done its job properly she would probably have sold the flat for a reasonable amount two years ago, but of course there is no offer of compensation from FirstPort.
Finally, I come to the nightmare scenario that people face if they dare to attempt to get rid of FirstPort as the management company. Resident groups that have made repeated attempts to release themselves from FirstPort’s management have met resistance and obfuscation, forcing them to retain lawyers and pushing legal fees into the tens of thousands. Those cases have taken an emotional toll on residents, many of whom are elderly. One case in my constituency has been going on for three years and is still not resolved.
South-west based Baker Estates has sacked FirstPort from a new estate at Dartington because of non-performance. The Duchy of Cornwall also sacked the company at the vast Nansledan estate in Newquay. It is more than clear that these companies are not doing their job. Their raison d’être is clearly not that of operating in the best interests of their residents. Estate management companies have had it too good for too long.
As we look again in this place at leasehold properties, we must also look at the difficult situation for freeholders on privately managed estates. We need to bring forward leasehold reform as soon as possible. Does the Minister have a timeline for introducing the leasehold and commonhold reform Bill? Will the Government bring forward legislation to allow freeholders to challenge management charges and to take over the management of a development if they wish?
Have the Government considered greater regulation of estate management companies, such as through an ombudsman, so that residents have some recourse when they encounter problems? If not, will they consider doing so? Will they introduce legislation to prevent management companies from charging residents for legal costs when they ask legitimate questions? Will they introduce legislation to professionalise the management of estates and buildings, with a basic level of service required and a mechanism for complaint and escalation that is easily accessible to residents? I look forward to the Minister’s response. I now leave it to other hon. Members to share experiences of the fleecehold nightmare.
Several hon. Members rose—
Caroline Voaden
I will be very quick as we are short of time. I thank all hon. Members for coming and sharing their experiences. It is clear that there is a strong feeling in the House that we need to act and that millions of people are being badly served by estate management companies. It is good to hear that looking at the behaviour of estate management companies, as well as the position of leaseholders and freeholders, is on the Government’s agenda. I appreciate that this is a complicated area of legislation; the Minister laid that out clearly. We are willing to work across the House to reach some sensible steps forward in legislation so that there can be redress for people who have until now been badly affected by estate management companies and so that the practice ends forthwith.
Question put and agreed to.
Resolved,
That this House has considered residential estate management companies.
(1 year ago)
Commons Chamber
Caroline Voaden (South Devon) (LD)
I beg to move, That the Bill be now read a Second time.
I am honoured to rise to present my Bill to create an office for green spaces, a Government office that will promote access to green space across the UK. It will support the creation, maintenance, improvement and integration of green spaces, and in doing so will improve the health and wellbeing of the UK, add up to £3.8 billion to tax revenues, contribute to our net zero journey, and create tens of thousands of jobs. It is a win, and who could object to more people than ever being able to lie under a tree or feel the grass beneath their feet? Eighty-one per cent of British adults agree that gardens and green spaces benefit their physical health, and 85% of adults agree that gardens benefit their state of mind. Green spaces and gardens can provide real natural healthcare solutions. Urban vegetation removes harmful pollutants, and urban cooling from green and blue spaces is vital in a warming world—and estimated to be worth £27 billion, according to the Office for National Statistics.
Under the Bill, green spaces include urban parks, neighbourhood areas, and significant natural landscapes. I believe that a co-ordinated, cross-Government approach is sorely needed. Green spaces must be a priority as our planning policy is developed, and the Liberal Democrats want to see more green spaces being covered in native trees and wild flowers. The previous Environment, Food and Rural Affairs Committee and a House of Lords horticulture inquiry backed cross-governmental action. Last year the Committee said that both the quality and the quantity of green spaces were in decline, and urgent action was needed to reverse that.
We are lucky to have Monty Don, Alan Titchmarsh and Charlie Dimmock to inspire us with our gardens, but the UK is one of the most nature-depleted countries in the world. As the Member of Parliament for South Devon, I am very aware of how important and beneficial green spaces are—I feel it every weekend—but two in five adults spend less than an hour a day outdoors, while more than half have no access to a public park or common within walking distance. We need to do so much better.
The UK’s gardens, parks and green corridors are not just nice-to-have amenities; they are essential infrastructure in an uncertain world. The office for green spaces would bring together planning, health, environment, and other departments to work together to deliver real growth in our green spaces. By establishing this dedicated Government office to oversee and champion these spaces, we can secure their future and unlock their full potential for people, communities, businesses and the public purse.
(1 year, 1 month ago)
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Olivia Bailey
I thank the hon. Member; I agree that this is about keeping generations of families together and I will talk more about that later in my speech.
As I said, people have been let down by Conservative and then Liberal Democrat administrations, which have been bodging the local plan process, trying to pass the buck and avoid the hard work needed to secure the vibrant villages that we were promised.
Caroline Voaden (South Devon) (LD)
In response to what the hon. Lady has just said, I would like to congratulate the Liberal Democrat-led South Hams district council, which has just contributed £623,000 to support a community housing project that will offer 39 new energy-efficient, 100% social rented homes for people with a local connection, including a community garden and orchard and a community building that will be delivered once the homes are complete. Does she agree that that is the kind of development that we need to see?