Inner-London Local Authorities: Funding

David Simmonds Excerpts
Tuesday 10th February 2026

(2 months, 4 weeks ago)

Westminster Hall
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David Simmonds Portrait David Simmonds (Ruislip, Northwood and Pinner) (Con)
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It is a pleasure to serve under your chairmanship, Dr Murrison. I draw hon. Members’ attention to my entry in the Register of Members’ Financial Interests. I am a parliamentary vice-president of London Councils and a vice-president of the Local Government Association. I would like to thank those organisations for the excellent research that they have supplied to Members to help us prepare for today’s debate.

While I congratulate the hon. Member for Dulwich and West Norwood (Helen Hayes) on securing the debate, listening to her story of being a councillor—one that is reflected, I think, by a good number of Members who were present this afternoon—made me think about where it sits in the context of what is happening with the local government funding formula overall and the particular impact that it is having on our inner-London boroughs.

We know that London’s funding formula has always, to an extent, created a city of two halves. There are the inner-London boroughs, with a relatively generous settlement from that funding formula and, historically, generally lower council taxes. Then there is a doughnut of outer-London boroughs, in which my constituency and that of my hon. Friend the Member for Bromley and Biggin Hill (Peter Fortune) are found, with a funding level broadly in line with the surrounding county and district authorities.

For a long time, it has been a source of concern among London authorities that there needs to be some levelling out to ensure consistency across council tax and funding. To address the longer-term funding issues, however, the Government clearly need to address the nature, scope and purpose of many of the statutory duties that exist across all those authorities, in order to enable us all to live within our means and to set levels of taxation that are reasonable for our constituents to pay.

Sadly, we are not seeing that happening. Instead, as the hon. Member for Sutton and Cheam (Luke Taylor) described, we have a Government who came to office saying that they were the cavalry coming over the hill, and that they could be trusted to inject additional resources into inner London, outer London and other parts of the country that were concerned about funding. In their first Budget, however, local government was left £1.5 billion net worse off through the jobs tax—the national insurance rise—alone.

The consistent feedback from councillors across London is that they feel a sense of shock and surprise at just how fast things have got so much worse. There are also particular significant dynamics in inner London. As several hon. Members have said, in the local government finance settlement, more than two thirds of the additional resources announced by the Government would come from the maximum possible council tax rise being imposed across the board. That is not additional Government funding, it is simply councils being required, as a minimum, to use their maximum possible tax-raising powers on the household budgets of all their local residents.

We also see the impacts of exceptional financial support, a policy that has existed under Governments of all stripes under different names for a long time. It is essentially a measure to allow a council to borrow to get it through temporary financial difficulties. It is a way of avoiding the issuance of a section 114 notice, which is the equivalent of a bankruptcy notice, by the statutory finance officers in that local authority. On an almost weekly basis, this Government make written ministerial statements on local government best value interventions, and on agreeing exceptional financial support to the extent that it is no longer exceptional. It is clearly simply a method of sustaining local authorities to avoid bad headlines, rather than addressing the nature, scope and purpose of statutory duties, which need to be addressed to get budgets back into balance.

Acute pressure has been created by an explosion in rough sleeping and homelessness in inner London since this Government took office. We need to be clear: London has always had a challenge around rough sleeping. Although my constituency does not cover Heathrow, it is a significant factor in my local authority’s activities. The number of people who find their way to an airport that is open 24/7, with showers, toilets and security, means that there are a disproportionately large number of rough sleepers in my local authority’s area.

As we heard, there has been a 27% increase in street homelessness since this Government took office. That contributes to the sharply rising pressure on temporary accommodation that London Councils, on behalf of the capital’s local authorities, has highlighted as the biggest single factor driving inner-London councils to seek exceptional financial support and to look at significant reductions across the capital in the services that our constituents expect local authorities to provide, such as libraries, parks and clean streets. At the same time, according to a recent report by Savills, two thirds of London boroughs report reaching net zero: not net zero in the traditional sense of an environmental target, but net zero new housing starts. In two thirds of our capital’s boroughs, no new homes are being added to the housing stock at a time when the Government have an increasingly unattainable target of 1.5 million new homes. To hear hon. Members from throughout the Chamber talk about the acute pressure from housing need, at a time when housing delivery in the capital has absolutely collapsed, demonstrates that things are not going in the right direction.

We are due to consider the local government finance settlement in the main Chamber tomorrow. More two thirds of local authorities have reported, having crunched the numbers on that funding formula, that they will be left worse off under it. Two thirds of councils in the country are worse off under the funding settlement being introduced by this Labour Government.

There is another significant factor. This week we heard that the SEND White Paper is to be delayed further. It will address the significant long-term structural and demographic concern driven by the increasing numbers of children with more acute needs for whom local authorities have a statutory duty—another duty over which they have no discretion. Although the statutory accounting override—to which Ministers have referred in the past—goes some way to avoiding that becoming an acute problem, we see acute pressure building up across the country, not just in inner London.

All that amounts to a situation where residents in inner London face extraordinarily significant increases in their taxes. The royal borough of Kensington and Chelsea has reported potential increases of council tax of up to £500 a year. Earlier, I met with one of the Conservative councillors from the London borough of Barnet, traditionally one of the less affected outer London boroughs, who reported that a £200 million funding gap is opening up as a result of the changes that this Government are making. Even for those of us in outer London boroughs, where council tax rates are broadly similar to those in the surrounding county and district areas, the combination of the rises in the mayoral precept, referred to by my hon. Friend the Member for Bromley and Biggin Hill, and those acute pressures, mean that in many cases council tax will already be at or well in excess of the £2,000 benchmark that Ministers have set out for council tax across the country.

In conclusion, we see a consistent message from across the sector. The leaders of inner-London boroughs—Labour and Conservative—talk of acute pressures getting much worse much faster than they had expected, and shortfalls in this funding settlement so excessive that no level of cuts could lead to boroughs achieving them and meeting their statutory duties. When she speaks on the local government finance settlement tomorrow, will the Minister announce a more fundamental rethink? Local authorities have a huge range of statutory duties, with more than 800 different services delivered by a typical local authority. The rise in national insurance alone has significantly driven up the cost of those activities.

We do not simply need more sticking plasters. Our residents, hearing a message from the Labour Government that there is more money in the system, find that money is coming straight out of their pockets and wallets, through massive increases in council tax. We need a fundamental rethink about how we deliver local government in the capital, so that it is affordable, deliverable and sustainable for the future.

Draft Cheshire and Warrington Combined Authority Order 2026 Draft Cumbria Combined Authority Order 2026

David Simmonds Excerpts
Wednesday 28th January 2026

(3 months, 1 week ago)

General Committees
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David Simmonds Portrait David Simmonds (Ruislip, Northwood and Pinner) (Con)
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It is a pleasure to see you in the Chair, Dr Huq. I am sure you will be pleased, as will the Minister, to know from the outset that the Opposition do not intend to divide the Committee on these orders. However, I do have a few questions to put to the Minister that are relevant to both orders; where they are not, I will be more specific.

The first question is about the agreement that the Minister may or may not have reached with the Treasury about the underwriting of the 30-year mayoral investment fund. One of the concerns that the Opposition have highlighted, which I know has been shared to a degree across parties, is that with the English devolution Bill there is scope, perhaps, for new mayoral authorities to raise significant precepts.

The feedback from several authorities is that the big incentive is that central Government are making a significant additional level of discretionary funding available to mayoral combined authorities. Clearly, 30 years runs over multiple future Parliaments, so it would be helpful to understand how the settlement has been reached with the Treasury, whether it means that the funding cannot disappear because of future changes in Government circumstances, and if so what the methodology has been, so that authorities entering into an agreement have a sufficient level of assurance that the funding will continue.

I would like to ask the Minister about data sharing, which is one of the new functions conferred by these orders. The authorities in question all have multiple statutory functions—they provide children’s services, adult social care and a variety of different services—but the primary focus of the orders is transport. What data ringfence is drawn around those new data-control and data-sharing measures so that residents can have a degree of assurance and clarity about what is to be shared on this footprint and what is not?

I also have a question about the precepts themselves. We briefly touched on the point about the 30-year mayoral investment fund; clearly, with transport as the major focus, the underlying assumption is that the mayor will use the new precept to underwrite investment in those transport functions. A great deal of debate is going on about how transport functions across the country should develop. It would be helpful for the Committee to know what assumptions, if any, the Ministry or other parts of Government have made about the level of the precept, and where that sits against other sources of funding, some of which the Chancellor has referred to, to underpin other elements of public transport investment. To what extent is it an additional levy being funded through a mayoral precept versus what is coming from central Government resources, as has been announced so far?

Finally, I have two questions specifically on Warrington. Members across the Committee will be aware that the Minister’s predecessor sent envoys into Warrington council last summer—it is an authority with a debt of around £1.8 billion. I appreciate that nothing in the draft order, of itself, will change the status of that debt as something owned by Warrington council, but the arrival into this combined authority of one council with such a comparatively large level of debt raises questions. The first question is whether there is a risk that the mayoral precept is effectively bailing out the debt of one of those authorities. Alternatively, given that Warrington will be required to contribute financially, will it be able to raise the necessary funds through its own arrangements, since it has envoys in place whose job is essentially to manage down that debt pile, which is extremely large compared with the overall turnover of the authority?

With those observations, which are largely about the process for reorganisation in these individual circumstances—as opposed to the principle, which we very much support—I close for the Opposition.

Draft Non-Domestic Rating (Chargeable Amounts) (England) Regulations 2026

David Simmonds Excerpts
Wednesday 21st January 2026

(3 months, 2 weeks ago)

General Committees
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David Simmonds Portrait David Simmonds (Ruislip, Northwood and Pinner) (Con)
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It is a pleasure to serve with you in the Chair, Mr Turner, for what I think is the first time.

As the Minister outlined, the purpose of the draft regulations is to round off the otherwise larger increases in business rates, but it is important to put that in context. A short time ago, we had a general election, in which the Prime Minister said that there would be a new regime of “permanently lower business rates”. I appreciate that the Treasury is currently hiring a new business rates tax adviser, but this issue is not going away.

In Prime Minister’s questions this afternoon, my hon. Friend the Member for Rutland and Stamford (Alicia Kearns) referred to a 2,000% increase in the business rates applying to one of the pubs in her constituency. Previously, the hon. Member for York Central (Rachael Maskell) had reported that a survey showed an average increase of 41% for hospitality businesses, 44.4% for music venues and 27% for independent shops in her constituency. The body that represents the United Kingdom’s gym and health providers, ukactive, reports an average increase of 60% in the business rates for which its members are liable. The National Pharmacy Association has reported that its members are having to remortgage their homes and put their life savings into their businesses to meet the business rate increases proposed by the Government. To date, over the last 12 months, there have been a net 200,000 job losses in the retail sector, which businesses report are primarily due to increases in business rates and national insurance contributions.

It is clear that that reflects a very substantial, permanently higher rate of business rates and an unwelcome U-turn by the Government. All of us can see the practical impact in our communities, and I would bet that there is not a Member in this room who has not been lobbied by local pubs, cafés and shops about the impact that this is having on their business.

Andrew Snowden Portrait Mr Andrew Snowden (Fylde) (Con)
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Does the shadow Minister agree that this is creating a perfect storm and that the reason so many people are getting in touch with us—many MPs on both sides of the House will have owners of pubs, restaurants and bars getting in touch with them—is that this business rates change will crystallise that? In coastal areas like Fylde, people have less money in their pockets, so there are fewer visitors to hospitality venues to start with. Those businesses already face significant cost increases because of changes to national insurance and other changes in the tax system. As a result, these 40%, 50% or 60% changes in business rates will be the final straw for many of those businesses.

None Portrait The Chair
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Order. We have an hour and a half to debate the regulations, but interventions must be a bit shorter.

David Simmonds Portrait David Simmonds
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My hon. Friend has outlined in very clear terms what any of us in this room could on behalf of our constituencies. There will be different local dynamics, but everywhere is suffering as a consequence of the increased taxes on businesses. Government Members might not wish to hear such messages from Opposition Members—and that is understandable, because this is politics—but they might listen to the hon. Member for Burton and Uttoxeter (Jacob Collier). In Prime Minister’s questions, he said that “any wins” had been “wiped out” by the increase in business rates, compared with what was proposed through transitional relief, and he reported to the House 60% and 70% rises in business rates affecting his local pubs.

I will conclude with some questions for the Minister. First, what is the net benefit of all these measures—the increases in business rates and the transitional relief—to local councils? We know from the local government finance settlement that two thirds of local authorities in England lost net funding from central Government as a consequence. Given the substantial increase in business rates income that this would imply, what will the overall impact on local government funding be?

Secondly, what assessment has the Department made of the impact that this will have on high streets and local businesses in particular? Many of those business have been lobbying us because the family business tax, the rise in national insurance and the interaction with the changes in the point at which national insurance is charged have put huge pressure on them. The impact of these business rates on top of that is enormous.

Thirdly, what role have the local reliefs, which were briefly touched on by the Minister and are set out in the explanatory memo, played in the determination of the funding settlement? Although the fig leaf is offered that local reliefs may be available, it is clear that the Government’s assumption is that all these increases will be implemented in full before any consideration is given to additional funding. What consideration has the Minister given to a return to the local authority business growth incentive business rates regime, which was designed to incentivise local authorities, through additional support from central Government, to look to create opportunities to support local businesses and high streets, in a way that we know was very effective?

The Prime Minister said on 7 January that the Government were in talks to see

“what further support and action we can take.”—[Official Report, 7 January 2026; Vol. 778, c. 260.]

That was days after he acknowledged that as a result of this settlement, pubs and hospitality, in particular, “will struggle.” The question for Opposition Members is, is this it?

None Portrait The Chair
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Before I invite Members to bob if they want to catch my eye, may I ask them to stick strictly within the confines of the draft regulations, please?

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Samantha Dixon Portrait Samantha Dixon
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Today’s debate illustrates clearly how passionate Members are about their local high streets and the businesses in their constituencies, which I completely recognise. I will try to address Members’ comments.

The introduction of the permanently lower rates for eligible retail, hospitality and leisure properties, paid for by the high-value multiplier, is just the first step in the Government’s programme to transform the business rates system, which the hon. Member for Ruislip, Northwood and Pinner asked me about. In September 2025, the Government published an interim “Transforming Business Rates” report to set out what we will do next to meet our objective of delivering a fairer business rates system that supports investment and is fit for the 21st century. At the Budget, a call for evidence was published on the role of business rates in business investment, which will help us to develop a system that better supports investment and economic growth. The transformation of the business rates system is a multi-year programme happening throughout this Parliament, with much more to come.

I turn to other issues. The hon. Member asked about the impact on local government. We hope that the revaluation will be, as much as possible, neutral. We will adjust the business rates retention scheme to offset the impact on local revenues.

David Simmonds Portrait David Simmonds
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I am grateful to the Minister for addressing that point. It slightly begs the question, however, if the main purpose of these increases—we have heard about 2,000%, 60% and 27% increases for independent shops, as well as 200,000 job losses—is to raise additional business rates income, but the effect on local government finance is neutral. What on earth is the point of inflicting all that pain on the business sector if it does not put a single extra penny in the pockets of local government?

Samantha Dixon Portrait Samantha Dixon
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We do recognise that business rates make up about a quarter of local authorities’ core spending power and they support critical local services, but the revaluations maintain fairness in the system by redistributing business rate liabilities among ratepayers to reflect recent market conditions. Standard features of the business rates tax system mean that between financial years, tax take may increase or decrease due to inflation or changes in relief. Hon. Members will be aware that rates rise in line with inflation and change annually to reflect inflation. On the wider impact on local government, I will respond to the hon. Member for Ruislip, Northwood and Pinner in writing.

Members have raised the issue of the high street. It is important to note that the temporary and unfunded—I repeat unfunded—40% RHL relief for 2025-26 will end on 31 March, and will be replaced by the permanent lower retail, hospitality and leisure tax rates from 1 April. The change, coinciding with the revaluation, means that some retail, hospitality and leisure properties will need greater support to help them transition to their new bill.

We have provided exactly that through expanding the supporting small business relief scheme, which will, as I outlined, cap bill increases for ratepayers who are losing some or all of their small business rate relief, rural rate relief, 2025-26 retail, hospitality and leisure relief, or 2023 supporting small business relief, at the higher of either £800 or the equivalent transitional relief cap. My hon. Friend the Member for Crawley put it most ably: to vote against this particular measure would be to see businesses facing higher bills, which is not what the Government want.

I thank all Members for their contributions to the debate. As my right hon. Friend the Chanceller announced at the Budget, the business rates support package, of which this relief is a part, will help ratepayers facing bill increases as a result of the revaluation to move gradually over time to their new liability. I am grateful for the opportunity to speak on this matter today, and I commend the draft regulations to the Committee.

Oral Answers to Questions

David Simmonds Excerpts
Monday 12th January 2026

(3 months, 3 weeks ago)

Commons Chamber
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Lindsay Hoyle Portrait Mr Speaker
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I call the shadow Minister.

David Simmonds Portrait David Simmonds (Ruislip, Northwood and Pinner) (Con)
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Leaseholders, like renters and prospective homeowners, have been made big promises by this Government. What assessment has the Minister made of the impact of botched local government reorganisation, cuts to the budgets of two thirds of England’s local authorities, delays to elections and the wholesale abolition of housing and planning authorities in England’s shires on the delivery of those promises? This is just another promise that the Government are not going to deliver, is it not?

Matthew Pennycook Portrait Matthew Pennycook
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Forgive me—I do not know whether the shadow Minister has come in on the wrong question—but I cannot see how local government reorganisation will, in any shape or form, influence in any way our ambitious leasehold and commonhold reform agenda.

Local Government Finance

David Simmonds Excerpts
Wednesday 17th December 2025

(4 months, 3 weeks ago)

Commons Chamber
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David Simmonds Portrait David Simmonds (Ruislip, Northwood and Pinner) (Con)
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It is no surprise that the Government sought to sneak this consultation out with the minimum level of attention, proposed, as it was, for simply a written ministerial statement at the last possible second. We can all see that poverty is rising, driven by a shrinking economy and rising unemployment, combined with inflation running at 3.6% and higher energy bills. Rising business rates are crippling our businesses, and local communities everywhere are feeling the pressure created by this Government’s choices.

How does the settlement help our councils to deal with all that? First, it assumes that working people—all people—will pay higher taxes everywhere. We should not misunderstand the Minister’s words on core spending power. The settlement enshrines an assumption that taxes will rise to the maximum possible extent everywhere, with fees and charges for parking, libraries and everything else following the same trajectory. Even if the inflation target of 2% is reached—which seems unlikely given that it is currently at 3.6%—the increase represents a 1% uplift for local government during the whole life of this Parliament, and that sector was left £1.5 billion worse off by the rise in national insurance contributions alone.

Resources at a local level are going backwards. This is a settlement that punishes efficiency, with those councils that deliver the best value for money being raided to bail out the more spendthrift—and I am sure we can guess which parties tend to run those councils. It is a settlement that introduces new, higher taxes on hospitality—voted for by every party in this Chamber besides the Conservatives—bearing down on investment and opportunity. It brings in a homes tax on more expensive homes—money that goes to the Treasury, not councils. In the Red Book, that is estimated to cost the Government a net £335 million due to the damage it does to the housing market. Only this hapless Labour Government could bring in new taxes that actually cost the Treasury money—and here they go again.

This settlement repeats the fallacy that poverty is the only driver of council costs. The average English local authority delivers more than 800 different services. Our rural coastal areas, and anywhere else with lots of retirees, face the high costs of adult social care but do not necessarily score highly on indices of deprivation, despite the costs being driven by statutory duties. The undertaker Prime Minister is ushering many councils towards their financial doom. As this Government hammer Wychavon and Stratford-on-Avon, they are also hammering Ashfield, Dartford, Burnley, Cambridge, Hyndburn, Lichfield and Bolsover, which are among the places worst hit by this financial settlement.

The Government’s detachment from the consequences of their actions is striking, and all while the Prime Minister and the Chancellor dodge the new high-value council tax in their grace and favour accommodation. All this is behind the smoke and mirrors that disguise from our local authorities the financial impact. They have been required to carry out their public budget consultations without having had sight of the impact of this settlement.

Let me conclude with some straightforward questions. Will the Minister tell the House when our locally elected brethren will learn the net impact of this settlement on their council tax budgets? When will we debate the impact of the Government’s cuts to SEND capital funding? When will the House have the opportunity to scrutinise their decision to impose exceptional financial support or higher council tax rises to bail out the consequences of their decisions? When will they provide clarity on the impact of their SEND proposals on council budgets? How will the Government use the budgets allocated to the new devolution areas and now snatched back to mitigate the impact of their decisions?

Will the Minister admit to the House that this is a tax-raising, job-destroying, housing-hobbling, rate-raising, service-slashing, community-crippling, election-cancelling settlement that fails even on its intended purpose of shunting resources to politically favoured areas?

Alison McGovern Portrait Alison McGovern
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I can hardly wonder at getting that purely political response when I made the perfectly legitimate political point that under the Tories a lot of councils were dealt very bad funding settlements indeed. We do not need to trade political insults to see the libraries closed, the parks left unmaintained and the damage done to councils, but I look forward to discussing this issue with the hon. Member across the Dispatch Box as we move forward, once he has talked to his own councils about the funding settlement they will be receiving.

The hon. Member asked some slightly more important questions, particularly on SEND. He will know that this is primarily a matter of getting the absolute best outcome for our children. The Department for Education will bring forward plans in the new year, and I am working closely with Ministers in that Department to ensure that we get it right. I mentioned some of the details in my statement.

I do not recognise the picture described by the hon. Member on devolution, and I feel confident in saying that nor would the Minister for devolution, my hon. Friend the Member for Peckham (Miatta Fahnbulleh), who is in her place. She announced significant investment for the places affected, and we all look forward to working with areas up and down the country to ensure that our country grows as we wish it to.

Local Elections

David Simmonds Excerpts
Thursday 4th December 2025

(5 months ago)

Commons Chamber
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Urgent Questions are proposed each morning by backbench MPs, and up to two may be selected each day by the Speaker. Chosen Urgent Questions are announced 30 minutes before Parliament sits each day.

Each Urgent Question requires a Government Minister to give a response on the debate topic.

This information is provided by Parallel Parliament and does not comprise part of the offical record

David Simmonds Portrait David Simmonds (Ruislip, Northwood and Pinner) (Con)
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(Urgent Question): To ask the Minister if she will make a statement about the cancellation of local elections scheduled for May 2026.

Miatta Fahnbulleh Portrait The Parliamentary Under-Secretary of State for Housing, Communities and Local Government (Miatta Fahnbulleh)
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Let me respond to the question directly. Local elections will go ahead in 2026—that has been and continues to be our position. We are a responsible Government, so if there are extenuating circumstances on the ground in particular councils, we will have that conversation with them, as the House would expect, but we are as up for elections as anyone else.

This is about our commitment to devolution, and the creation of strategic authorities and mayors who can unlock the economic potential of their areas and deliver for their communities. That will always be our guiding star—our lodestar—in every decision that we make about devolution, so I am pleased to confirm the long-term funding offer to six areas in the devolution priority programme. Once their mayors are in post, the six mayoral strategic authorities will receive close to £200 million collectively per year for the next 30 years for their investment fund. In that way, we will ensure that our mayoral strategic authorities have the strong foundation to unlock the growth potential that we see in every part of the country.

The Government recognise that mayoral strategic authorities are most successful when they are built on a strong history of partnership and joint delivery. That is what we have seen in our established mayoral authorities in Greater Manchester, Liverpool and across the country. The devolution priority programme areas have already made huge progress towards establishing their strategic authorities. We want to allow for a meaningful period between the establishment of a strategic authority, and its mayoral elections.

We are also conscious that those places are simultaneously undergoing local government reorganisation while building those new institutions. The Government are therefore minded to hold the inaugural mayoral elections for Sussex and Brighton, Hampshire and the Solent, Norfolk and Suffolk, and Greater Essex in May 2028, so that those areas have the opportunity to conclude their local government reorganisation, build strong and effective unitaries, which is what we want, and establish their strategic authorities before their mayors take post. The inaugural mayoral elections will take place, but in the meantime we are determined to work with those areas to provide capacity funding, build the institutions, and strengthen their partnership and joint working to deliver for their communities. At the heart of everything we do is unlocking areas’ potential by building strong institutions that can do that job and working in partnership with them to achieve it.

David Simmonds Portrait David Simmonds
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You and I both value local democracy, Mr Speaker. Last week, in response to a question from my hon. Friend the Member for Hamble Valley (Paul Holmes), the Secretary of State told the House that

“the Government’s intention is that all the elections scheduled for next May will go ahead next May.”—[Official Report, 24 November 2025; Vol. 776, c. 5.]

The following day, the Minister told the House:

“Labour is up for elections… our clear intention is to press ahead with elections next year. The decision to postpone elections is never taken lightly”.

She went on to state the reason the Government were resisting the Conservative amendment to ensure that those elections went ahead:

“It does not allow for extenuating circumstances at a national level, such as a pandemic, or for exceptional circumstances locally”.—[Official Report, 25 November 2025; Vol. 776, c. 322.]

Given that we are all ready for and expecting the elections, having taken this Government at their word, the ambiguity that the Minister has created has caused a huge amount of doubt, significant cost and logistical challenges at a local level in changing the type of elections and the processes for nominating candidates, recruiting electoral canvassers and ensuring that we have the right polling station staff and that they are prepared to arrange that election on schedule. This is a huge waste of public money for elections that we are all ready for.

Given the Minister’s previous comments about circumstances in which council elections would be cancelled and the looming deadlines that electoral officers face, when will she make a decision, and what process will she follow in determining whether the planned council elections will go ahead? When will the Government brief the House on the timetable for the elections of mayors, which they made central to their Budget last week? Will she ask the Office for Budget Responsibility to update its Budget forecast, given the massive impact that this dithering and delay will have on the Budget’s clearly set out plans for housing, infrastructure, the Children’s Wellbeing and Schools Bill and NHS reorganisation?

Miatta Fahnbulleh Portrait Miatta Fahnbulleh
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It is really important that we distinguish between two things. We have been absolutely consistent that local council elections are happening in 2026. We are cracking on with it and getting ready for them. I hope the Opposition parties are getting ready for them. We will crack on with them, but these are inaugural mayoral elections that are predicated on us laying a statutory instrument, which we are still to lay, and having the consent of constituent authorities. It is absolutely right that we take stock of where we are and the process that we are asking places to get through, to ensure that at the end of this, we have strong unitary councils that are going through the process of reorganisation, strong strategic authorities, and then a mayor. That is the right and rational decision. There is a clear distinction that I ask the House to make between local council elections, which are scheduled and run to a rhythm, and inaugural mayoral elections, which we have not had before.

On the economics, I will take the hon. Member’s question seriously, even though it was completely ridiculous. We are committed to unlocking areas’ economic potential, so we want to crack ahead with strategic authorities. We want to lay the SI, so that we can get the strategic authorities set up in the timeframe that we have been negotiating and agreeing with places. We are committed to that long-term investment. We will bring forward a proportion of that investment into next year and the year after in the transition, so that places can get on with their investment pipeline and their programme.

At the heart of this—I will keep coming back to this—is a determination on the Government Benches to work with every part of the country to unlock their economic potential. We will do that in good faith. We will do that without playing politics. We will do that in partnership with any leader, no matter which party they belong to. I hope all Members across the House will approach this in the same spirit.

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Caroline Nokes Portrait Madam Deputy Speaker (Caroline Nokes)
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I thank the Minister for her responses this morning.

David Simmonds Portrait David Simmonds
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On a point of order, Madam Deputy Speaker. May I seek your guidance? When the English Devolution and Community Empowerment Bill was making progress in Committee, the Minister was very clear that elections to local councils would be considered for cancellation on request from the affected local authorities. She has told the House this morning that, in fact, it will be done only in a pandemic or exceptional local circumstances. There is clearly some risk that the House may be inadvertently misled on what the decision-making criteria for that cancellation may be. Can you give me some guidance as to how we can gain the necessary clarity on what the decision-making process for the cancellation of council elections will be?

Caroline Nokes Portrait Madam Deputy Speaker
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I thank the hon. Member for his point of order. He will know that it was not a point of order but a continuation of the urgent question, and it could have been put to the Minister earlier. However, he has put his point on the record.

Miatta Fahnbulleh Portrait Miatta Fahnbulleh
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I will make some progress.

Finally, we have built on the amendments made in Committee to the local audit provisions. Our further amendments contain technical provisions that broaden the existing regulation-making powers relating to the payment of allowances to audit committee members to include expenses, gratuities or pensions to members of audit committees across all local bodies within the audit framework. Broadening this power will give clarity to the sector that remuneration can apply to all audit committee members, whether they are independent or not, across all relevant authorities, including the Greater London Authority.

The Bill originally required that the Mayor of London and the Assembly jointly appointed an audit committee. However, following discussions on its particular governance arrangements, it has become clear that it would be more appropriate for this power to rest solely with the Mayor of London, consistent with other audit provisions in the Local Audit and Accountability Act 2014. This change will enable the mayor to appoint an audit committee that includes at least one independent member, in line with the requirements set out in the Bill. I thank the GLA for its constructive engagement with my officials on these important audit measures in the Bill. It is vital that our reforms work in practice for all authorities within the local audit framework.

The Bill will help to build and rebuild local government, fix our broken local audit system and truly empower communities. Our amendments build on these ambitions and ensure that the Bill works as we intended. I commend them to the House.

David Simmonds Portrait David Simmonds (Ruislip, Northwood and Pinner) (Con)
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On a point of order, Madam Deputy Speaker. May I seek your guidance? I know that this issue has been exercising Mr Speaker. Yesterday, at topical questions to the Ministry of Housing, Communities and Local Government, in response to a question asked by the hon. Member for South Shields (Emma Lewell) about a tourism tax, we were told by the Secretary of State:

“My hon. Friend tempts me to venture into terrain that is properly within the decision-making jurisdiction of the Chancellor of the Exchequer. She only has to wait 48 hours to find out what the Chancellor has decided. I suggest that she ask the Chancellor on Wednesday, rather than me this afternoon.”—[Official Report, 24 November 2025; Vol. 776, c. 19.]

During debate on the Bill yesterday, when asked the same question by the hon. Members for Vauxhall and Camberwell Green (Florence Eshalomi) and for Uxbridge and South Ruislip (Danny Beales), the Under-Secretary of State for Housing, Communities and Local Government, the hon. Member for Peckham (Miatta Fahnbulleh), replied:

“They have made an impassioned and effective case, but as I said in my opening remarks, I will not pre-empt the Chancellor. Tax decisions are for the Chancellor, and we will have a Budget in 48 hours.”—[Official Report, 24 November 2025; Vol. 776, c. 155.]

Madam Deputy Speaker, I know that you and Mr Speaker have been very exercised by the number of leaks, which the former chief economist at the Bank of England described as

“the single biggest reason why growth has flatlined”.

You will therefore be concerned, as the Conservatives are, that a short while ago the Government put out a press release on their website saying that mayors will be given these new powers, before that was briefed to the House and after repeated comments to the House that Ministers would not answer that question. What further measures are open to you, Madam Deputy Speaker, and to Mr Speaker to ensure that these kinds of damaging leaks, which are undermining our economy and particularly hitting our tourism and hospitality businesses hard, can stop?

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Nusrat Ghani Portrait Madam Deputy Speaker (Ms Nusrat Ghani)
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Colleagues who have contributed to the debate should be here for the wind-ups. That is a notice. I call the shadow Minister.

David Simmonds Portrait David Simmonds
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I open by drawing the attention of the House to my entry in the Register of Members’ Financial Interests. I hold some voluntary roles in local government. I place on record my particular thanks to my hon. Friends the Members for Hamble Valley (Paul Holmes) and for Broxbourne (Lewis Cocking), who served with such distinction on the Bill Committee.

Local government is the most efficient part of the public sector. It is uniquely democratically accountable among our public services. It is also uniquely financial constrained by the requirement for council budgets to balance in-year. We know that the average local authority delivers over 800 different services, which range from public health and child protection to housing the most vulnerable, trading standards, markets, parking and road maintenance. Councils empty the bins, recycle the waste, lend books and care for the elderly, but Governments rarely rise or fall based on what happens in the local government sector. It is not the most dramatic or glamorous part of our state, but day to day, as contributions from right hon. and hon. Members across the Chamber have reflected, it probably has the most important impact in our constituents’ lives.

As we heard in Committee, and as we have heard in the amendments and in this debate, our local government is under unprecedented pressure due to this Government’s poor decisions. On the track record of my party in office, we saw local authorities using their discretion but for the most part seeking to keep council tax low, with the additional revenue from projects such as the new homes bonus, council tax freeze grant and the approach to business rate grant being implemented to support local businesses and local communities.

Today, with few exceptions across the sector, we see local authorities facing the maximum possible council tax rises, the maximum possible business rate increases and the maximum possible increases in fees and charges, against a backdrop where housing delivery, supposedly the Government’s top priority, has collapsed, despite a legacy of 1.5 million new homes—their target for the whole of the Parliament—with planning permission already granted. All this green belt-grey belt nonsense, which has caused such concern and anxiety to Members and our constituents, is entirely irrelevant. They already have an entire Parliament’s supply of homes with planning consent ready to build. The jobs tax has left our local authorities worse off by £1.5 billion net. It has driven up the cost of almost every local government service, from the care of the elderly and vulnerable children to the day-to-day maintenance of our roads and our environment.

Tonight, what we have before us is this Government’s botched and incoherent restructuring, with no clear vision of what local government in England is even for. When we consider the matters that we will press to a Division, new clause 69 on election cancellations and new clause 80 on statutory notices are among a very extensive list of options. We have heard from one or two Members that the retention of the committee system was democratically approved locally. Although measures adopting the Opposition’s proposals on councillors’ addresses make some minor improvements to the Bill, the cancellation of local elections is a clear example of a mess of the Government’s making.We support our local colleagues in making the best of the very difficult set of decisions that they have to take. However, having been told by Ministers—as the Opposition did when in office—that elections to local authorities that were due to be abolished would be cancelled, that was not what the Government then did. They simply deferred those elections for 12 months, making the waste of taxpayers’ money and the concern of local residents even greater, while raising the prospect of a lack of accountability as this important process goes through.

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Siân Berry Portrait Siân Berry
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The Minister failed to tell us how the tourist tax would be brought forward in legislation. With the announcement coming yesterday, and after all the opportunities they had in Committee and in debates on the Floor of the House, does the hon. Gentleman think that this was merely a case of failing to get the Chancellor’s attention?

David Simmonds Portrait David Simmonds
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The hon. Member puts to me whether it was simply a failure to get the Chancellor’s attention, but clearly the Chancellor has been busy at every possible opportunity briefing the press about things that may or may not be in the upcoming Budget. We have seen the impact that that has had: driving up Government borrowing costs; driving down business confidence; and driving unemployment up, every single month since this Government took office. Those political briefings have real-world consequences for our constituents’ livelihoods.

For all of those businessowners in the hospitality and tourism sector who have been seeking to make decisions, relying on what they have heard Minsters tell the House, to discover in a press release that this new tax is due to be imposed on them despite the previous assurances of the Tourism Minister, is just one of the many nails in the coffin of the British economy represented by the Bill and this Government’s actions.

In conclusion, when we look at the Bill, we see legislation that makes a complete mess of local democracy: elections cancelled and then deferred; announcements of new mayors that do not make it through to the final announcements about new structures. The Bill takes powers away from communities and gives them to mayors who, as we heard earlier in the case of Surrey, may not materialise at all. It devolves nothing of any significance closer to our constituents and seeks to make our elected local councillor brethren simply the hosts of talking shops, rather than decision makers for their local community. Worst of all, despite the Government’s occasionally lofty rhetoric, the Bill abolishes 90% of the representation of shire England at the stroke of a bureaucrat’s pen. Where is the voice for our constituents in local government under this centralising Labour Government?

Miatta Fahnbulleh Portrait Miatta Fahnbulleh
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With the leave of the House, I will respond to the thoughtful, constructive and robust interventions from hon. Members across the House.

I will start with a theme that has been raised once again by the hon. Members for Guildford (Zöe Franklin) and for Ruislip, Northwood and Pinner (David Simmonds) —that this is a centralising Bill that seeks to take power away from communities and impose on them. I completely and utterly reject that idea. I made this point yesterday, and I will labour it again today: this Bill represents the biggest transfer of power from Westminster and Whitehall to our regions, local authorities and communities. The Government believe that we change the country by putting power in the hands of people who know their patch. That is the principle behind the Bill, and that is what we are determined to deliver.

Let me address the point on local election delays, which has been raised head-on in new clause 69. We understand the democratic necessity to hold elections. People have the right to vote—a right that we absolutely support and will absolutely protect. Labour is up for elections as much as any other party, and our clear intention is to press ahead with elections next year. The decision to postpone elections is never taken lightly, and was not taken lightly when it was made. It is a decision that we will always take with great caution, as it is one that we want to avoid.

However, we cannot accept the new clause, because it is neither rational nor reasonable. It does not allow for extenuating circumstances at a national level, such as a pandemic, or for exceptional circumstances locally that create a challenge for holding elections. While we are keen and determined to press ahead with elections, we are the Government of the day, so we will always take a considered and reasonable approach to this matter.

I turn to the point raised in new clause 17 by the hon. Member for Guildford on the funding of strategic authorities. The hon. Lady was right to highlight the pressure that local government is under. However, I would point out—again, I note the complete cheek of the Opposition here—that that is a consequence of 14 years of austerity and under-investment. The hon. Member for Ruislip, Northwood and Pinner talks about the plight of local government, yet fails to recognise the terrible inheritance that his party left—the huge legacy of denuding and undermining local government that we are now trying to rectify. In 2025-26, the local government finance settlement provided £69 billion for councils—a 6.8% increase in the core spending power for local government. We are moving to multi-year budgets, consolidated funding and a fair funding review, all in order to reverse the decline and under-investment of the previous Government.

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David Simmonds Portrait David Simmonds
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I will speak briefly. There is a high degree of consensus on some of the objectives that the Government have set out. We share the ambition to deliver more homes, and we share the ambition on economic growth and devolution. However, the alternative stimulants that the Government have chosen essentially involve more bureaucracy, more centralisation and new taxes, all of which will stand in the way of the delivery of those ambitions.

We, as an Opposition, are very clear about this. The things that our communities, our constituents and our local businesses want and need are not contained in the Bill. It cancels elections, it reduces local democracy, it centralises power with a swathe of new ministerial diktats, it raises taxes through an unwanted, unbriefed new tourism tax, and it opens the door to new unlimited mayoral levies that can be used at ministerial fiat, not on the say-so of local residents. It is a let-down for those who hoped to support it and a betrayal of the ambition of those who support our local democracy. We will oppose the Bill’s Third Reading.

Question put, That the Bill be now read the Third time.

Oral Answers to Questions

David Simmonds Excerpts
Monday 24th November 2025

(5 months, 2 weeks ago)

Commons Chamber
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Lindsay Hoyle Portrait Mr Speaker
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Order. I call the shadow Minister.

David Simmonds Portrait David Simmonds (Ruislip, Northwood and Pinner) (Con)
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When we look at the statistics, we see that homelessness and rough sleeping are surging under this Government, with London and the south-east hardest hit where social housing delivery has collapsed under the current Mayor of London. Will the Minister commit to lifting the restrictions that this Government have placed on councils’ use of the homelessness reduction grant, and will she commit to funding councils for the growing impact that asylum seekers are having on homelessness pressures, so that Housing First can become more than just a slogan?

Alison McGovern Portrait Alison McGovern
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Homelessness and rough sleeping doubled under the previous Tory Government. Our homelessness strategy will be published very shortly. Last week we published our policy statement on the fair funding review, which will stabilise council funding and target it at those areas with significant levels of deprivation. I look forward to the hon. Member’s support in ensuring that councils have the powers they need to ensure that everyone has a roof over their head.

Planning and Infrastructure Bill

David Simmonds Excerpts
David Simmonds Portrait David Simmonds (Ruislip, Northwood and Pinner) (Con)
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The Opposition join the Minister in thanking our colleagues in the other place for their sterling work. I also thank my hon. Friend the Member for Hamble Valley (Paul Holmes), who has been our shadow Minister and contributed enormously to the debate in Committee.

I welcome the Minister back to the Dispatch Box for a further discussion on planning and infrastructure, and congratulate him on being the last man standing from the Ministry of Housing, Communities and Local Government team that was appointed in Labour’s golden summer of 2024. As he surveys the bombed-out wreckage of that ministerial team and knows that he is the only one not to have succumbed to friendly fire, I am sure that he shares my sense of disappointment that, after a year of debate and discussion, we have not made the progress that the British people expect from us in the delivery of planning and infrastructure.

The Opposition have three fairly simply tests to apply to the amendments and the Bill as a whole. First, does this deliver the required reform of our administrative state—the planning process, statutory undertakers, decision makers and all those who play a part—to ensure the swift delivery of infrastructure? Secondly, does this create the necessary incentives for host communities to support and embrace the opportunities that development offers? Thirdly—and most critically, we think, having undertaken many planning reforms during our time in office—does this get the market building the 1.5 million new homes that already have planning permission? The entirety of the Government’s target already has consent, with no further loss of green belt or environmental impacts.

Toby Perkins Portrait Mr Perkins
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Many people are concerned about this issue, which the shadow Minister’s party also faced when in government. Why does he think that developments do not get built despite their planning applications getting approval?

David Simmonds Portrait David Simmonds
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I am going to develop my answer to that, because that is the question we face as a country. We set ourselves a target in the last Parliament of delivering 1 million homes, and we fell just short of that, but when this Government set out their commitment to net zero, I do not think they intended 23 of the 33 London boroughs to have net zero new housing starts, according to a new Bidwells report on the housing market in London. They did not anticipate a 20% reduction in completions of new homes. They did not anticipate a 55.9% drop in the number of new housing starts here in our capital city or a Labour mayor delivering 4.9% of the target set for him by this Government, despite record levels of funding. The context, as we saw today, of growth in our country falling to just 0.1%, is a significant clue to the answer to the hon. Gentleman’s question.

When we assess this Bill and these amendments against those tests, it is clear that whatever lofty ambitions some may have, this Bill fails in the eyes of the Office for Budget Responsibility, because it does not generate the level of growth and contribution that the Government promised. That is reflected in the hasty implementation of large-scale amendments in the Lords that were not even contemplated at the Commons stages. It fails in the eyes of homebuyers—the many people who aspire to get on the property ladder for the first time. It fails in the eyes of our farmers, who were hoping it would make it easier to create the infrastructure that would make our farming and food sector more efficient. It fails in the eyes of the developers, who are talking about packing up and taking their investment abroad because the UK market is so poor at the moment. It fails in the eyes of the builders, who see no measures in the Bill to address the shortfalls they all face.

It fails in the eyes of the travelling public, who have watched this Government cancel projects such as the expansion of the A12, which was set to support the delivery of thousands more homes. And it fails in the eyes of lovers of nature, because for all that has been said, there is still a grave lack of clarity about how the measures in the Bill will support the ambitions we all have to balance the delivery of new homes and infra- structure with the needs of a nature-depleted country, to protect the natural environment that we all cherish. The Government signalled before they even embarked on this legislation that their intention was to reduce green-belt protections, which raises the suspicion that this is not a holistic agenda; it is about making it as easy and cheap as possible to build on the green belt, without the strategic underpinning that delivers the homes and infrastructure that our nation needs.

Toby Perkins Portrait Mr Perkins
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The hon. Gentleman has not actually answered my question. He is talking about the policies of the last 15 months, but the problem he is alluding to of developers sitting there with planning permission and not building has been going on for 15 years or more. Can he be realistic about what his solution is to get developers to build the developments they have planning permission for?

David Simmonds Portrait David Simmonds
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As the Leader of the Opposition said at Prime Minister’s questions, we would not start from here—we would not have made the mistakes this Government have made, which have led to the crash in house building that I outlined.

Gideon Amos Portrait Gideon Amos (Taunton and Wellington) (LD)
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I would like to assist the hon. Gentleman. Is the answer not a “use it or lose it” planning permission, whereby a developer loses the permission or the land if they do not build on it?

David Simmonds Portrait David Simmonds
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We spent a good amount of time debating that issue in Committee. “Use it or lose it” planning consent is one option. Application of council tax at different stages of delivery is another. We could also take a different approach to section 106, to the community infrastructure levy or to the way that local authorities interact with the housing market. All those measures that we either considered in government or have been debating—none of which has been taken up —have the potential to ensure that more of the homes that have planning consent get delivered.

Desmond Swayne Portrait Sir Desmond Swayne (New Forest West) (Con)
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Is not the principal difficulty that so many housing developments have now become unprofitable, and that is why they are not being proceeded with? It is the costs that have been loaded on builders in the last 15 months.

David Simmonds Portrait David Simmonds
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My right hon. Friend tempts me to fast-forward to a point that will arise later on.

When the Chancellor of the Exchequer said at the end of her Budget statement last year that she was wiping the slate clean, and from here on in it was on them, she was absolutely right. If we look at the impact that the measures taken have had on the deliverability of housing and infrastructure, and the rising costs of government driven by the colossal borrowing spree that has been embarked upon by this Chancellor, there is no question. A Government who have borrowed £100 billion this financial year alone are not in a position to talk about a businesslike approach to delivering housing and infrastructure.

The Opposition share the concern that the hon. Member for Brentford and Isleworth (Ruth Cadbury) set out in her intervention, highlighted in Lords amendment 1. Ongoing accountability is crucial. We know there will be trade-offs, whether it is on Heathrow—an issue that affects her constituents and mine—or High Speed 2, which has been very much debated, the delivery of new cross-Thames infrastructure to the east of London, new ports, new airports or new roads. There is a significant parliamentary interest in all those issues, and that process provides an opportunity to explain to the public where those trade-offs sit.

On heritage sites and reservoirs, the Lords have done some excellent work. I am grateful to the Minister and the Government for their willingness to embrace the debate about electric vehicle charging, and I know noble Lords have been extremely keen to support the work being done to deliver that net zero agenda. However, so many elements of the Bill incorporate a tendency to centralisation. The lack of community-level accountability and lack of ability for local residents to have their say about what is happening in their area—for example, on assets of community value—remains a fundamental concern. If we want those communities to embrace development and new homes, they need to be able to see the benefits and opportunities that a development will bring to their lives.

Another issue covered in the Lords amendments is chalk streams. I declare for the record that the River Colne, which borders my constituency, is a chalk stream, the majority of which are in southern England. Given the work done by my party in government, we are determined to ensure that there is an appropriate level of protection enshrined in legislation. We would choose to develop brownfield first. We seek the swifter redevelopment of brownfield sites, including here in our capital city, rather than intruding on the green belt, which is critical for nature, is important for the health of human beings and for leisure and is often a site of sports facilities and agriculture, supporting the lives of our communities. That is another area where, sadly, this legislation falls far short.

It is clear that this Government have a heavyweight majority. Through the measures that are being implemented, the Government are using that majority to deliver a left hook of reducing community voice and community say in planning applications. They are following that with a right hook of reducing protections on the green belt and building on virgin land—as we heard from the hon. Member for Normanton and Hemsworth (Jon Trickett), who is no longer in his place—rather than previously developed land being recycled. That is followed by the uppercut of wholesale top-down council reorganisation, and then a jab demanding that local plans the length and breadth of the country be changed through the national planning policy framework changes, without there being remotely the capacity at the Planning Inspectorate to deal with those in a timely manner.

A number of Members have said, “Why is this happening, and what do you think needs to be done to address it?” The knockout blow to our housing market in the last 12 months has been delivered by the massive hike in national insurance introduced by this Government, which is leading developers, builders, the whole supply chain and local authorities to fear that they will have to throw in the towel, because it is simply not possible, under such a business-unfriendly Government, to deliver homes and infrastructure that require a pro-business environment.

As the Bill proceeds, pummelling our first-time buyers, hammering our homeowners, bashing our builders, and duffing up our developers, on behalf of the Opposition I simply say this to the Minister: there is an opportunity this afternoon to begin to change course, and to signal that he believes, and we believe, that a different course of action is possible that will deliver the homes and infrastructure that the British people expect. I always enjoy meeting the Minister across the Dispatch Box, and I always keep my spare Conservative party membership form handy just in case he should ever need it—his high standards of professionalism suggest that one day he will make the journey to the dark side. Minister, take the opportunity to say to your colleagues that it is time to add to so many poor U-turns, a good U-turn. Let us get on with the job of delivering the homes and infra- structure that the British people need.

Caroline Nokes Portrait Madam Deputy Speaker (Caroline Nokes)
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I call the Chair of the Housing, Communities and Local Government Committee.

Houses in Multiple Occupation: Planning Consent

David Simmonds Excerpts
Tuesday 4th November 2025

(6 months ago)

Westminster Hall
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Westminster 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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David Simmonds Portrait David Simmonds (Ruislip, Northwood and Pinner) (Con)
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It is a pleasure to serve under your chairmanship this afternoon, Mr Dowd, and to speak in this debate called by the hon. Member for Mansfield (Steve Yemm). He gave a clear exposition of the issues facing his constituents, which mirror the experiences of mine. I was out at the weekend talking to people in Lovett Road and Ash Grove in Harefield who told pretty much the same story that hon. Members on both sides of the House have set out. I have huge sympathy for the Minister and the Government because that story encapsulates the housing challenge: everybody is generally in favour of providing more housing, but they are not very keen on this specific form of more housing when it has an impact on their constituency.

The Opposition recognise that HMOs have always been a helpful source of additional housing. They have provided for temporary workers over the years and are a key plank of our student housing market. They are extremely important, especially for people who may be trying to put their lives back together and make the first step into social housing. Their numbers have grown in a housing market where, although private rented homes have the highest level of occupier satisfaction of any type of housing, there is none the less an acute need to ensure that people are found homes and are off the streets. There is a high degree of commonality and agreement, but I am sure we all recognise that that need will remain a significant challenge in the context of a collapsing housing market, especially here in London where the mayor is on track to deliver less than 4% of the housing target set by the previous Government.

The Opposition support the Government in bringing forward new provisions to improve the licensing process for HMOs, which several hon. Members on both sides of the House have called for. Historically, we have always sought to make that process as straightforward as possible to swiftly meet rising local demand for housing. However, we recognise that there has been growing pressure, particularly because of the unneighbourly behaviour that we have seen from some landlords, that needs to be swiftly and robustly tackled.

We also support a more straightforward implementation of article 4 directions. We recognise that where they have been implemented, their operation was restricted to ensure that the supply of this type of accommodation was not choked off by blanket application. When I was a councillor, my local authority applied one in very restricted areas where it was seeking to protect the student housing market, rather than using a whole-borough approach, but it is now considering implementing that more widely to address the kinds of concerns that hon. Members have highlighted.

The Government have just gained Royal Assent for the Renters’ Rights Act. As they look at leasehold legislation, as well as the devolution Bill, which contains housing elements, and the Planning and Infrastructure Bill, about which I think the Commons is due to receive Lords messages next week, I encourage them to look at the opportunity for further amendments to those pieces of legislation that would enable local authorities to more effectively address these concerns through different routes.

It is very clear that there is a degree of community concern, particularly given the backdrop. We have heard the Government say that they are committed to shifting the asylum accommodation estate away from hotels, the use of which has grown very rapidly in the last 12 months, towards other types of accommodation. We have heard a lot about houses in multiple occupation and former military bases being put to use for that purpose.

I therefore encourage the Government to consider the Opposition’s proposals for a specific use class for asylum accommodation so that there is an effective public consultation, and so that residents understand the purpose of the HMO change. That would help to allay concerns and allow time for the local authority to consider in advance the impact of having families with children who need education provision and the impact on the NHS of providing support for people who may have war injuries or have suffered other circumstances that brought them to our shores as asylum seekers, for example. It would also enable representations to be made to the provider if it was clear that a locality was not able to provide the support needed by a household or class of users. Introducing an additional use class would bring about a higher degree of transparency and ensure that many of the genuine community concerns that hon. Members on both sides of the House have outlined could be effectively addressed.