Building Safety

Florence Eshalomi Excerpts

Tuesday 29th June 2021 Commons Chamber

[Florence Eshalomi (Vauxhall) (Lab/Co-op)]

I would like to thank my fellow Select Committee member, my hon. Friend the Member for Sheffield South East (Mr Betts), for opening the debate and for leading the Committee in its efforts to hold the Government to account on the national cladding scandal. There are many issues in the building safety crisis that the Government have failed on, and that failure is turning the lives of leaseholders in my constituency into a living nightmare, but today I want to focus my comments on one of the root causes of the problem: the requirement for an external wall survey, or EWS1. Buildings are deemed to be unsafe only when a leaseholder tries to sell their flat and they are asked by their mortgage lender to provide an EWS1 form to show that the building has passed its fire safety assessment. This assessment is not overseen by the Government; nor is it a legal requirement for building owners. This means that most unsafe blocks are discovered only by chance. Four years on from the Grenfell tragedy, the Government still do not know exactly how many unsafe buildings there are in this country.

The first step in solving any problem is to correctly diagnose it, but this Government have outsourced that task to individual leaseholders. As a consequence, the Government have consistently underestimated both the scale of the problem and the personal and financial cost to individual leaseholders. Costs are spiralling because the people who are deciding that the works are needed are not the ones paying for them. Private fire assessors have no interest in keeping costs down and managing agents have no incentive to complete the works quickly so long as they are still liable for any cost. Without anyone with professional experience taking charge, leaseholders are left to navigate the system alone.

Labour is calling on the Government to establish a building safety works agency: a team of Government-appointed engineers with an expert in direct charge of resolving the crisis, going block by block, assessing the problems, commissioning remediation works, paying for them and signing buildings off as safe and sellable so that homeowners can get on with their lives.

Without effective Government action to address this, I fear that an ever-growing number of leaseholders will have their lives plagued in crisis for years to come. That is why the Government must act now to end the cladding scandal.

Covid-19: Recovery of Central London Businesses

Florence Eshalomi Excerpts

Tuesday 22nd June 2021 Westminster Hall

[Nickie Aiken (Cities of London and Westminster) (Con)]

I beg to move,

That this House has considered the recovery of businesses in central London from the covid-19 outbreak.

It is a pleasure to serve under your chairmanship, Sir Christopher. I am delighted to have secured this extremely important debate on business recovery in central London following the covid-19 pandemic. It has been very clear from my weekly meetings with business representatives from across Cities of London and Westminster that businesses, restaurants, shops and hotels are all part of a larger ecosystem, which also relies on the huge cultural offer that my constituency provides. Covid has proven that if we take one part of that ecosystem away, for example by not allowing theatres to open to their full capacity, there is a vast knock-on effect on all surrounding hospitality businesses, as well as on other cultural offers such as museums and galleries. I am confident that London will bounce back, but the Government have a choice on how quickly that happens.

Cities of London and Westminster is home to the monarch, to the Head of Government and to Parliament. It is also home to the nation’s high street, Oxford Street, and to the cultural and entertainment powerhouses of Soho and Covent Garden. On the one hand, Westminster’s businesses supported in excess of 715,000 jobs and contributed £53.6 billion annually to the national economic output, the highest contribution of any local authority in the United Kingdom. To put that into context, before the pandemic the Oxford Street district alone generated £13 billion of gross value added—25% of the entirety of Wales’s GVA. On the other hand, the UK’s world-class financial sector, based in the square mile in my constituency, is the underlying strength of our international trade and total services exports. The City of London has the largest financial services cluster in the world, with nearly 60,000 companies and hundreds of thousands of jobs for workers commuting in, pre-pandemic.

A key concern regarding the London recovery is business rates. The system, born in the 16th century, is wildly out of step with the modern digital age. Even before the covid-19 pandemic, it was not working—it was not fit for purpose. Empty retail space was on the rise, footfall was in decline and the sector was grappling with systemic shifts in customer behaviour. The pandemic has only accelerated that. It has also laid bare the urgent need to create a fairer and more sustainable tax system that relies less on property and that does not go only one way—up.

Without action on rate reform, the viability of much of the retail sector and the substantial taxes that it generates will hang in the balance. Specifically for central London, it would be useful if the Minister considered whether the business rates relief cap of £2 million could be temporarily removed so that businesses can secure the relief that they need right now. The cap effectively means that many mid-sized chain businesses, which typically pay well above £2 million in business rates, face bills that, according to UKHospitality, could force them

“to prioritise paying tax over paying wages.”

The large hotels and event spaces that depend on business conferences and meetings will be particularly hit by the cap and will be paying business rates in full by the end of July, with no realistic prospect of an uptick in income until at least the autumn. That is simply not good enough.

Covid-19 has created new challenges for the business rates system. I know that the Government have called for its review and for fundamentally reforming business rates, but we need that to be accelerated and temporary relief in the short term to be announced as soon as possible. There is no doubt that that reform is a crucial part of the puzzle as our economy recovers from the impact of the pandemic.

That leads me to my third point. The beating heart of the west end is our significant cultural offer.

[Florence Eshalomi (Vauxhall) (Lab/Co-op)]

Does the hon. Member agree that major tourist attractions in her constituency and in mine, such as the London Eye, rely on visitors and tourism from across the world? Does she agree that the Government need to consider business rates relief, additional employer contributions on furlough and flexible loan repayments, all of which need to be in place over the summer to help businesses once lockdown restrictions are eased?

[Nickie Aiken]

The hon. Lady makes the clear point that tourist attractions in central London, whether in her constituency or in mine, are suffering due to the lack of international visitors.

Theatres in particular have a significant multiplier effect for the local economy. It is estimated that people who buy theatre tickets will spend up to five or six times more in the local economy, whether in restaurants, hotels or wherever. To remedy the situation, we should urgently address several areas in our recovery from covid-19, which will no doubt have a significant impact on the central London ecosystem.

First, and in light of recent decisions, I ask the Government to give due consideration to a Government-backed insurance scheme to help event organisers plan for the risk of covid-19-related cancellations. Indeed, UK Theatre’s May 2021 survey of members’ planned economic activity up until June next year on productions, both planned and currently running, was 67% of 2019 levels. Of that, 66% was planned for stage 4, which has now been delayed. Without a Government insurance package, theatres expect that proportion to fall to around 35% to 50%, which will be a devastating hit to both the sector and those who rely on its influence to draw in consumers.

Secondly, UK Music noted that extending the 5% VAT freeze on cultural tickets until the end of the financial year 2021-22 would go a long way to incentivise activity in the capital and support investment. Indeed, by keeping VAT low the Government will be allowing more money to be invested into venues, recapitalising and paying off pandemic debt—we know how much pandemic debt many of these companies have.

On another note, I am glad that the Government’s tourist recovery plan, launched this month, acknowledges that London is the gateway for international tourism and, as such, is an integral part of the wider UK levelling-up agenda. Support and investment for central London must reflect that and help mitigate its reliance on high-volume footfall from tourists and workers. In central London, international visitors account for 50% of all spending, even though they make up only 25% of visitors. With the international travel market not likely to start growing again until early next year—possibly into spring next year—shops will open with the return of all the costs that entails, such as business rates, rents and employee costs, but they will not yet have the major customer footfall spending money in their premises. That will put new pressure on businesses that have already exhausted their reserves.

How can we mitigate that? It could be as simple as allowing Sunday trading hours to be extended from 6 pm to 8 pm in the international centres of the west end and Knightsbridge in order to accommodate new patterns of opening hours. I raise this now because, prior to the pandemic, few theatre productions ran a Sunday matinee, for example. Now, however, theatres are increasingly looking at scheduling Sunday matinees and it is likely that Sundays could become as busy as Saturdays, and with that comes increased need for the consumer.

With most other global international centres—New York, Dubai, Tokyo, Beijing, Hong Kong and even Edinburgh—having no restrictions, we are at a competitive disadvantage in London. Allowing longer Sunday trading in an international centre would have a localised impact of up to £290 million net in additional sales, and 2,000 full-time jobs. That is not to be sniffed at. The support measures would cost the Government nothing but could mean the world to businesses in London.

I also urge the Government to work with businesses to seek new ideas and encourage more visitors, especially high-spending ones, to our areas. Most experts estimate that international tourism will not return to 2019 levels until 2023 at the earliest. The Government should do all they can to accelerate tourists’ safe return, with plans to promote London globally as a place to visit and do business.

On a similar note, how office workers react post pandemic will be important for business recovery in the capital. The Government need to do all in their power to stimulate a safe return to the office. Right now, only about 10% of office workers have returned to full-time work in central London, which is woeful. Business representatives from across my constituency, and from multiple sectors, all concur that they do not expect to see any big return until at least September—that is three months from now, and costs will be increasing from next week.

What I find most concerning about this situation is that the shortfall in workers returning to the office is due to a distinct lack of confidence in public transport and changing work practices. As we emerge from the pandemic, the Government must help by encouraging the return to work and encouraging confidence in the safe use of public transport. It is imperative for Government Ministers to encourage civil servants in their Departments to lead the charge and to come back to their desks. I appreciate that we will not see the same volume of office workers over the summer and into the autumn, but even seeing a return of working on a flexible basis—say, two or three days or week while we recover in the short term—would have a huge impact on the economy of central London. For that reason, I welcome this week’s announcement by the Government of the new flexible season tickets. Within London, we need a robust transport system that commuters are confident to use again, with the Mayor working constructively with the Government to ensure that is the case.

I will leave it there for now, because I am confident that London will recover from the covid-19 pandemic, as it has recovered from previous shocks, be they plagues, fires or world wars. I want to see London getting some recognition from central Government for the key role that it plays in supporting the UK’s economy, and we need that recognition to be married to a clear vision for business recovery in central London.

[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Paul Scully)]

It is a pleasure to serve under your chairmanship, Sir Christopher. I congratulate my hon. Friend the Member for Cities of London and Westminster (Nickie Aiken) on securing this really important debate. I thank her for all the work that she is doing to engage with businesses and ensure that their voices are heard in this place and across London through the Mayor, the Greater London Authority and all the boroughs. It is so important that, as she says, we work together really constructively in this area, because that is the only way we will bounce back.

As my hon. Friend says, London normally bounces back every time. It normally leads the charge in the UK for bouncing back from adversity and every recession. I have no doubt that the same will be true this time, but rather than leading the way, it is clear from the feedback we are getting from the cultural and hospitality sectors that London is lagging behind, and my hon. Friend outlined some of the reasons why.

London is three times the size of the next biggest European city, never mind UK cities, so it has a centre of gravity that is mainly based on public transport. We must give people the confidence to come back in, as my hon. Friend says, and enjoy the benefits of being in the workplace and what London has to offer. It goes beyond confidence: I describe it as confidence and joy. We can get people back in the first time, but if things are too onerous and difficult in hospitality terms, they will perhaps go back and rely on a ready meal and a bottle of wine in their back garden. That might be great every now and again, but it is the last thing we want if we are to help London’s recovery and ensure that it remains the greatest city in the world in which to live, work and bring up a family, and to really enjoy.

I have lived on the outskirts of London for the best part of 30 years, and the greatest thing about it is that I can enjoy the green spaces and schools in outer London, and raise a family there, but I have London on my doorstep. As well as the benefits of the suburbs, I have the benefits of the city—the theatres, the London Eye, as the hon. Member for Vauxhall (Florence Eshalomi) said, and the restaurants that rival anything available elsewhere in the world. We can go around the world within the few square miles of Greater London. That is so important.

When we talk to business that are encouraging people—or not, as my hon. Friend the Member for Cities of London and Westminster said—back into their workplaces, we have to remind them that London and the businesses that serve people in their workplaces cannot sit there and wait. They cannot survive on fresh air. They cannot be there for people if people do not come back and use them. That is why it is important that we encourage people to come back into London. London generates 25% of the GDP of the entire country, and the west end generates 4% of the country’s gross value added—that is before we get to the City and Canary Wharf. That is testament to the work of my hon. Friend and all the people she engages with; it is important that we celebrate and showcase it.

My hon. Friend talked about business rates. Clearly, London has a particular issue because of the cost of property here, and the business rates that follow. She will be aware—she referenced this—that we have a fundamental review, which is due to report back in October. I hope it is as fundamental as it suggests. My hon. Friend is right that, due to property costs, business rates particularly affect London.

One of the things that I discovered as I was working through the covid support measures that we were putting in place is that the grant system—seemingly the easiest system to deliver—still had its challenges. It was seemingly the easiest because local authorities across the country knew exactly who qualified, because in the first tranche of grants they knew which retailers, who in the hospitality sector and which small businesses were getting small business rates relief. However, they did not have the bank account details or know who to pay it to. The challenges were about fundamental things such as that. Sometimes the local authority’s relationship with its local businesses was not quite as close as it might have liked and expected. We have had to work through all those unintended consequences at pace over the past year, which led to me speaking to something like 112 local authorities across the country to see what more we could do to help them along.

In London, there was the grant scheme. I am pleased that with all these schemes, we were able to flex, following representations from colleagues such as my hon. Friend, to iron out some of the unintended consequences. Indeed, the early discretionary grants were based on the residents living in those areas. That obviously affected my hon. Friend’s constituency. There are not that many people living in the City of London, but there are a lot of businesses. That was an unintended consequence that we were able to correct in later iterations of the discretionary grants. That is testament to the fact that we have been able to flex and work in what were, frankly, completely unprecedented times. We have had to work at pace to change and develop the support accordingly, and we will continue to do that.

We have put in £352 billion to date—it is £407 billion when the various types of fiscal support are included, with the following year to come. As a small-government, free-market Conservative, having just made one of the biggest interventions since the second world war, that gives me 407 billion reasons why we have to get the next bit right. Having protected those jobs, businesses and the spirit of London, we have to make sure that we keep those gains.

[Florence Eshalomi]

I thank the Minister for giving way and for his crucial point on jobs and opportunities. Obviously, today we celebrate the 73rd anniversary of Windrush Day and the contributions of so many people who came to the UK to rebuild our country on the back of the war. Does the Minister agree that many people who work in businesses in his constituency and mine, and in that of the hon. Member for Cities of London and Westminster (Nickie Aiken), rely on people from a diverse range of backgrounds? What more assurance can he give to struggling businesses that want to help Londoners get back to work, but that are struggling financially?

[Paul Scully]

The hon. Lady is absolutely right. My father came over not on Windrush, but from the other direction—from Burma—in the 1950s, at around the same time. He completed his apprenticeship here in the UK, having started it in Rangoon, as it was, after the war. At the time, he had that shared experience of helping Britain to recover through his engineering work. The interesting point that she raises about how we support that particular section of the workforce is crucial—I talked about the spirit of London—in making sure that we get the recovery right for everybody.

I have talked about the Mayor of London, and my hon. Friend the Member for Cities of London and Westminster is absolutely right that we have to work constructively together. Now we have the London elections out of the way, although we will always do party politics and the ding-dong, we have to make sure that we collaborate closely together.

My fear has always been that he wanted to have the title of Mayor, but did not work out which city he wanted to be Mayor of. It is important that he is the Mayor for all London; otherwise, we will have a Gotham City scenario. Frankly, I do not think he would mind it if he was the mayor of Gotham City. What do I mean by that? In Gotham City in the Batman movies—“Joker” and so on—there is the holistic city that has the ultra-rich, who can be insulated from all these sorts of things, because they have the money to be able to support it. There are then the lowest-paid in society—the people who service all the workforces and workplaces, and who have to travel into the middle of town. There are then those in the middle, who live in areas like mine on the suburbs and outskirts, who can opt out. They can sit in their back gardens with their ready meal and a bottle of wine, and shop locally in their outer London high streets, which are starting to bounce back quite well.

That leaves a massive gap in the city centre—in the central activity zone, as it has slightly unromantically been titled over the last few years. Essentially, that is the west end, the City of London, Canary Wharf and those areas that people around the world know so well. People look to London, invest in London and want to travel to London because they know those areas. Those are the areas we see in the films and tourism brochures.

We then get to the question: how do we attract international visitors to go into those areas and beyond, across the UK? That is why the tourism recovery strategy is so important in making sure that we start that slow burn, because we know that it will take time to get international visitors back to the UK. However, we must do it.

We also have to get domestic tourists to London. That is why I absolutely agree with the Mayor that his campaign, Let’s Do London, is a far better campaign than we have had in previous re-openings after lockdown. It is a real call to action. If one looks around London, whether at the London Eye, the Tower of London—which I had the privilege of going to the other day—the Museum of London, the British Museum or the Royal Opera House, there are no queues. People who live in the south-east and who walk past those areas on their way to work or when they are in the workplace should go to them, because they will not have another chance to do so with no international tourists and without having to queue up for half an hour. They can see some of the best places, the best cultural buildings and the best institutions in the world right on their doorstep. That is what Let’s Do London is all about—getting people to rediscover the spirit of London.

There are two more types of people we want to encourage back, as we start to reopen. One is students. There are 40 universities in London—a massive chunk of organisations that attract young people who will want to spend more time in London after their studies. They will get jobs and fill some of the roles in the City and elsewhere that my hon. Friend spoke about. We also want to get people back into their workplaces.

The Prime Minister rightly wrangled with the decision over when to reach stage 4 of the road map. He did not make that decision easily because there were so many factors to consider, but it was the right one to take when making the argument that we want to ensure that we are moving in only one direction. The big lesson of last year is not to chase the virus and not to have the stop-start, because that costs businesses even more. A cautious reopening, put back a few weeks, is the right thing to do.

However, one of the unintended consequences of moving the reopening to July is that that leads quickly to August, which tends to be a quiet month for London. We want to ensure that we are working with big employers now, and looking at what more we can do to be flexible and encourage people back to their workplaces.

I am glad that my hon. Friend welcomed the flexible season ticket. We are demonstrating—not just doing it—that Transport for London has never cleaned the tube network as many times before. The problem is that that is being done at 2 o’clock in the morning, so we need to show people what is being done. Public transport is safe. I have been taking it most days for the past year and I have never worried about it. I encourage people to try it and see for themselves. They should spread their journeys out beyond rush hour to maintain space, because hands, face, space and fresh air are still important. We are not going to kill the virus in one day when we reopen and get to step 4. This is not like a thriller where the baddie is killed and the credits roll. We are going to be living with this for some time, but that is no reason to stay closed.

Finally, my hon. Friend talked about Sunday trading. I have been speaking to the Heart of London Business Alliance and the New West End Company about that. It is a tough one. We have looked at it time and again in Parliament, and it has always been incredibly controversial. Although she talks about international centres for it, it still needs primary legislation. We will keep it under review and work with colleagues to see what the objections are and get the balance right.

We will continue to look at what we can do with business rates. My hon. Friend talked about VAT. Something like £27 billion of support has gone into the VAT reduction. The Chancellor needs to look at measures in the round and holistically, just as she talked about looking at London holistically.

London is an ecosystem. People do not stay in a hotel in London just to sleep in another bed; they do it because of the theatres, the restaurants and all the other things London has to offer. That is what we have to protect. We will continue to try to do that, working together with the Mayor, the boroughs, this place, and our businesses and communities.

Question put and agreed to.

Planning Decisions: Local Involvement

Florence Eshalomi Excerpts

Monday 21st June 2021 Commons Chamber

[Florence Eshalomi (Vauxhall) (Lab/Co-op) [V]]

I am grateful for the opportunity to speak in this debate on such an important issue for my constituents.

Ministers are right to say that fundamental reform is needed. The current planning system is not fit for purpose. As I have said in this House before, it is too distant from the people it most directly impacts. That leads to developments that do not work for the communities who have to live there for years. For too long the system has been unfairly weighted in favour of developers. The Government’s proposals will not increase the ability of local people to have their say; they will dilute it. The proposed introduction of a Whitehall-appointed board of developers will lead to local people no longer having the ability to object to inappropriate developments. It will remove the right of local people and councillors to have a say at key points in the planning process. They will have little opportunity to influence the design of specific planning applications, as most design codes will be site-specific and so no longer subject to local consultation.

As an MP for a central London constituency with some of the highest levels of building in the country, every day I see the negative impact that unsystematic development has on communities in Vauxhall. We have hundreds of tower blocks going up that often block out daylight for neighbours. We see huge telecommunication masts placed in the middle of small streets in conservation areas against the wishes of residents. We see communities disrupted by the introduction of 24-hour businesses that bring little or no benefit to the area.

Planning can be viewed as boring or as a nimby subject. This is often because residents feel powerless to influence local decisions. I pay tribute to the community groups across Vauxhall who work hard to challenge some of the proposed developments, volunteering their time, effort, expertise and knowledge to read through pages of designs, attending consultation meetings and responding by focusing on the needs of the local community. Residents in Vauxhall understand and appreciate the need for growth and regeneration, but that must be done with the consent of the people who have to live with the daily consequences of planning decisions. Everyone wants to see local people and their local elected representatives given a bigger, not a smaller, say over planning decisions. I therefore urge the Government to rethink their proposals.

Oral Answers to Questions

Florence Eshalomi Excerpts

Monday 14th June 2021 Commons Chamber

[Ms Karen Buck (Westminster North) (Lab)]

What assessment he has made of the potential effect of ending the moratorium on evictions on levels of (a) evictions and (b) homelessness.

[Florence Eshalomi (Vauxhall) (Lab/Co-op)]

What assessment he has made of the potential effect of ending the moratorium on evictions on levels of (a) evictions and (b) homelessness.

[The Parliamentary Under-Secretary of State for Housing, Communities and Local Government (Eddie Hughes)]

Although the ban on bailiff enforcement has ended, the measures that the Government have introduced mean that fewer cases are progressing to eviction. Landlord possession claims were down by 74% in quarter 1 of this year compared with the same period in 2020, and the number of families in temporary accommodation is at its lowest since 2016. For those who need more support, we are providing councils with £310 million through the homelessness prevention grant—that is an uplift of £47 million on last year—which can be used for financial support for people to find a new home, to work with landlords to prevent evictions, or to provide temporary accommodation and ensure that families have a roof over their head.

[Eddie Hughes]

It is important that these matters are handled by the councils themselves, because they are much closer to the problem than the Government; that is not something that we should or could legislate for centrally. With regard to the hon. Lady’s own council, we have allocated £5.2 million from the rough sleeping initiative and £6.8 million of homelessness prevention grant funding. The contribution that the Government are making to support local councils is very significant.

[Florence Eshalomi [V]]

I thank the Minister for his response to my hon. Friend the Member for Westminster North (Ms Buck), but one of the key ways to prevent homelessness is to ensure that people are not being evicted. As a result of the end of the evictions ban, many Vauxhall residents now face eviction, with no need for justification and no requirement for adjudication. The Government said in 2019 that they wanted to bring an end to section 21 no-fault evictions, yet two years down the line, tenants in my constituency still face the constant threat of eviction. Will the Minister please tell the House when we can expect to see the long-awaited renters reform Bill?

[Eddie Hughes]

We remain committed to delivering a better deal for renters, including repealing section 21 of the Housing Act 1988. We will legislate, but it is only right that that legislation considers the impact of the pandemic and is a balanced set of reforms that improves the private rented market. A White Paper detailing our package of reforms to the private rented sector will be brought forward in the autumn.

Fire Safety Bill

Florence Eshalomi Excerpts

Consideration of Lords amendments
Monday 22nd March 2021 Commons Chamber

[Dr Fox]

I will not, because time is short and so many Members want to get in; I apologise to my hon. Friend.

Last time, I asked what direct contact Ministers had had with the Association of British Insurers, the building societies and the banks, because without their help, we are unable to deal with the negative equity and resale problems that are at the heart of so much of the distress we find. I know from talking to so many of my constituents about this issue that they appreciate that the Government have already come a long way. They are very grateful for taxpayer support. The problem is that we need more details, and for real-time issues, we need real-time solutions. Urgency is the key.

[Florence Eshalomi (Vauxhall) (Lab/Co-op) [V]]

I am grateful to colleagues in the other place for the opportunity to reconsider amending this Bill. I also thank the hon. Members for Stevenage (Stephen McPartland), and for Southampton, Itchen (Royston Smith), for their perseverance in holding the Government to account over this cladding scandal.

Much has been said in this Chamber about why leaseholders should be protected from fire safety remediation costs, and I could repeat the long list of powerful arguments that colleagues from across the House and I have put to the Government, but instead I draw on the experiences of those whose voices are not often heard in this debate, and in particular want to mention the problems faced by disabled leaseholders. I pay tribute to the work of the Leaseholder Disability Action Group in highlighting them.

For many disabled constituents in Vauxhall, the difficulty finding accessible homes in London means that, where possible, they choose to invest in a property that they view as a potential property for life.

In many instances, shared ownership with a housing association is an affordable option for those who do not have enough for a large deposit or even a mortgage. Many disabled leaseholders will have spent thousands of pounds adapting their flats to suit their needs, including with bathroom and kitchen adaptations, which will often have been funded through local authority disabled grants. But like so many leaseholders caught up in this crisis, they are now facing the additional burden of remediation costs, on top of other fire safety measures, putting them at risk of bankruptcy and losing their home for life. What is more, we know that disabled people are less likely to have the savings or income to meet unforeseen bills, and these are all subject to means-testing. This cannot be right. The important amendment before us this evening would help to end this nightmare for all leaseholders, so I urge all colleagues across the House to join me in voting for it.

Residential Leaseholders and Interim Fire Safety Costs

Florence Eshalomi Excerpts

Wednesday 10th March 2021 Westminster Hall

[Florence Eshalomi (Vauxhall) (Lab/Co-op)]

I beg to move,

That this House has considered residential leaseholders and interim fire safety costs.

It is a pleasure to serve under your chairmanship, Mr Hollobone. It is also a pleasure to be back in Westminster Hall and to be able to debate such an important topic today. When I became the MP for Vauxhall in 2019, two and a half years after the horrific Grenfell Tower fire, I did not expect to find so many of my constituents still living in unsafe buildings, blighted by dangerous cladding and other fire safety defects. To date, I have received correspondence from and been contacted by more than 250 individual leaseholders living in 27 different unsafe building developments in my constituency. And that is just in Vauxhall. The sheer scale of the cladding scandal is truly shocking, and it has revealed the full extent of what can only be described as a systematic failure in building safety in this country. But because of the tireless efforts of campaigners and their supporters up and down the country, we know that safety is only one part of this story. Leaseholders who bought their homes in good faith now find themselves saddled with the financial responsibility and liability for problems that they had absolutely no part in creating.

Much has been said recently about this injustice, and I am grateful to colleagues across the House who have called for urgent action to protect innocent leaseholders. Understandably, much of the debate has focused on who should pay for the cost of the remedial works to remove and replace the cladding. However, I want to draw attention to an equally urgent but much less talked about financial aspect of this crisis. That is the eye-watering charges that are being passed on to leaseholders for compulsory interim fire safety measures while they wait for the remediation work to be completed.

Interim costs have life-changing impacts. The sheer feeling of hopelessness is shared by many leaseholders I have spoken to. One constituent wrote to me and said,

“I have worked hard. I have contributed to the communities in which I have lived. I have paid over £100,000 in taxes over the past three years. And yet I now find myself facing potential bankruptcy, homelessness and the collapse of my business through no fault of my own. My future is utterly bleak, and my life feels worthless.”

As soon as a building is assessed to be unsafe, residents are told that they must immediately introduce additional fire safety protocols or face an evacuation order from the fire brigade. The requirement for those interim measures can be met in two ways. One is by appointing a waking watch, whereby trained wardens continually patrol the building in order to be able to detect a fire. The second is the installation of specialist alarm systems. Faced with homelessness, leaseholders have little choice but to assume the costs for those measures.

Interim measures have become a frequent occurrence as the fire safety crisis has unravelled over the last three and a half years. Every week, new buildings have been discovered to be unsafe. Worryingly, a fire safety assessment is generally triggered only when the leaseholder tries to remortgage or sell, which in turn triggers the external wall survey or the now-infamous EWS1 process. It means that the true scale of the problem is still unknown, and it will only grow in the months and years ahead.

There is currently nothing in law to protect leaseholders from the financial responsibilities for such interim measures, which are typically passed on through increased service charges. The data on interim costs are patchy and incomplete. Government figures show that the average estimated cost of a waking watch in England is £17,000 per block, rising to over £20,000 in London. Per household, that translates to a bill of approximately £500 a month for each affected household. Alarm systems are not much cheaper as an alternative, with estimates ranging from £50,000 to £150,000 depending on the size of the building. Those figures are eye-watering, and they will recur month after month, year after year, until the cladding is removed and the building is deemed completely safe.

In February of this year, the Minister told Parliament that

“we are clear that waking watch regimes should only ever be used in the short term”.—[Official Report, 1 February 2021; Vol. 688, c. 690-691.]

On one development in the Kennington area of my constituency, however, they have been paying for a waking watch since July of last year, at a cost of £10,000 per flat. The remediation works are not expected to be completed before the end of next year, and the alarm system is deemed insufficient to meet the danger. The total cost of the interim measures for this one development is currently estimated to reach over £1 million. What really sticks in the throat for my constituents is not just that the interim measures are expensive and mandatory, but that their effectiveness has been called into question. One constituent told me:

“These guys add little practical value and sit around watching TV on their phones, and yet we have to pay for them under the threat of being evicted if we don’t. In a fire, they are not really going to be able to make a blind bit of difference through evacuating residents.”

We have to remember that such interim measures are a daily reminder to our constituents that the buildings they live in are unsafe. The amounts are unaffordable for most people at any stage in life, but many of those affected are young, first-time buyers whose dreams of home ownership have turned into an unaffordable nightmare, with their homes literally unsellable. Industry experts estimate that it will take between five and 15 years for all affected buildings to be remediated. The truth is that the costs are anything but interim.

Ministers have known about this problem for almost four years. They have repeatedly acknowledged that fire safety defects are not the fault of leaseholders, and yet it took the Secretary of State until December last year to announce any sort of help for interim costs. The waking watch relief fund, which offers a grant to pay for the installation of fire alarm systems, was a welcome step in the right direction, but it remains the only form of Government assistance that is available for interim costs. In their current form, the fund’s provisions are partial and insufficient. Leaseholders living in blocks below 18 metres are excluded from applying. The Government claim that this is because the risk of a life-threatening fire in lower buildings is smaller, but any building that faces an evacuation order if the interim measures are not established is, by definition, clearly not safe, regardless of whether it is 18, 15 or 12 metres.

One such block in Vauxhall, which is under 18 metres, failed its EWS1 assessment in October 2020, and its leaseholders have had to find more than £170,000 to pay for interim safety measures. It is estimated that the remediation work will cost in total £1.4 million. The developer of the building has gone out of business, and leaseholders were all excluded from any Government support schemes. I simply do not know how this situation can ever be fair.

Even if we focus our attention on just the buildings over 18 metres that can apply for the fund, the £30 million that the Government have allocated is drastically short of what is needed. The Government estimate that that will pay for a maximum of 460 buildings, but there are at least 560 eligible buildings in London alone. Lord Greenhalgh told the Housing, Communities and Local Government Committee on Monday this week:

“We recognise that the £30 million goes some way, but not all the way.”

Finally, the fund pays only for an alarm system purchased and installed after December 2020. That totally ignores the thousands of pounds that leaseholders have already spent on compulsory and expensive but ineffective waking watch systems. How can that be right or fair?

The Government, including the Minister, have repeatedly said in the House that no leaseholder should pay, so I ask the Minister whether he agrees in principle that innocent leaseholders should not be responsible for solving the problems that they did not cause. Why are we asking the same leaseholders to pay extortionate sums for interim costs?

I am grateful to the Minister for attending this debate today. I want to conclude my remarks by focusing on what can be done to fix this appalling situation. I have four questions for the Minister, which I hope he will answer. Will the Government agree to the principle that no leaseholder should have to pay for interim fire safety measures to mitigate the problems that they did not cause? Will the Government commit to including provisions within the upcoming draft Building Safety Bill to protect leaseholders from such costs, and ensure that they are picked up by the people who were responsible for causing them in the first place? Will the Government immediately extend the waking watch relief fund to match the number of buildings that we know are affected, and make sure that all leaseholders facing these costs can apply regardless of building heights?

The Minister has previously said that interim measures should be used only temporarily,

“because they are an entirely inadequate substitute for remediation.”—[Official Report, 1 February 2021; Vol. 688, c. 691.]

With that in mind, will the Minister ask the Government to mandate a timetable for the completion of the remediation work in all unsafe blocks to make sure that the interim costs do not have to be paid by leaseholders for years to come?

[Mr Philip Hollobone (in the Chair)]

The debate will last until 10.55 am. I intend to call the Opposition spokesman no later than 10.32 am and the Minister at 10.42 am. Florence Eshalomi will have two or three minutes to sum up the debate at the end. There are 16 Back Benchers seeking to contribute. I want to make sure that everyone gets in, so I am afraid that I will have to impose a time limit. If we aim for three minutes, everybody should have their say. All Members participating virtually should have a countdown clock on their screens. We will start with Stephen McPartland.

--- Later in debate ---

[Florence Eshalomi]

I am grateful to right hon. and hon. Members for their contributions; all raised excellent points. That highlights the consensus of all Members across the House.

I thank the Minister for his comments, but respectfully, his argument about prioritising the high cost of remediation work is a sideshow, a false economy and morally bankrupt. We need to look at how we can help our constituents now. These interim costs will not go away. I look forward to writing to him to highlight some of the questions I posed.

Question put and agreed to.

Resolved,

That this House has considered residential leaseholders and interim fire safety costs.

Coronavirus: Supporting Businesses and Individuals

Florence Eshalomi Excerpts

Tuesday 23rd February 2021 Commons Chamber

[Florence Eshalomi (Vauxhall) (Lab/Co-op) [V]]

Many businesses in Vauxhall will be feeling cautiously optimistic after hearing yesterday’s plan for reopening the economy. Here in Vauxhall, our economy is dependent on the hospitality, tourism and entertainment sectors, and is supported by many small, independent businesses that provide auxiliary services to residents and the millions of visitors we normally welcome every year. From this afternoon’s contributions, we have heard that this pandemic has created winners and losers. Vauxhall has been hit particularly hard because of the nature of our economy and the supporting workforce. The gradual lifting of restrictions will not see an immediate return to business as usual. It will take time for tourists to come back along the south bank, to Brixton, to Stockwell and to Oval, and for local people to feel 100% comfortable about socialising in public again. But Vauxhall’s businesses do not have time. They are struggling to stay afloat after a year of stop-start lockdowns and gaps in Government support.

As we look ahead to next week’s Budget, I urge the Chancellor not to withdraw support too quickly and not to adopt a one-size-fits-all approach to recovery. It makes no economic sense for businesses to be supported all the way through lockdown only to have that support withdrawn once restrictions are lifted. I call on the Chancellor to make sure that this support is sector-specific and tailored to meet the needs of each and every one of our businesses to ensure that we have a fair and resilient national economic lockdown.

Building Safety

Florence Eshalomi Excerpts

Wednesday 10th February 2021 Commons Chamber

[Robert Jenrick]

On the important second point that my right hon. Friend raises, we have worked with the Department for Education and the Department of Health on buildings in the wider public sector—universities, student halls of residence and, in a small number of cases, buildings in the NHS—to ensure that the works there proceed at pace. I will happily update him with respect to Lincoln University.

The first point that my right hon. Friend made is actually extremely important. We have had to strike a careful balance because millions of our fellow citizens are not homeowners, and we have to protect their interests, just as we want to provide safety and fairness for the leaseholder. That is the balance that we have tried to strike today, and I hope that fair-minded people on both sides of the House and in the country will appreciate that and understand the choices that we have made.

[Florence Eshalomi (Vauxhall) (Lab/Co-op) [V]]

I welcome today’s announcement, which is a testament to the campaigning of leaseholders across the country. I am sure that the Secretary of State believes that the deal he has negotiated with the Treasury is a great success, but for many of my constituents it will make no or little material difference. A number of leaseholders continue to pay thousands of pounds for interim safety measures. The issue at hand today is one of principle and fairness, and the upshot for many constituents is that they are still paying, despite the Government’s assurances. If the Government subscribe to the principle that no leaseholder should have to pay for fire safety problems, will the Secretary of State please explain why this package clearly shows that not all leaseholders are treated equally?

[Robert Jenrick]

The hon. Lady is wrong. Thousands of her constituents will directly benefit from today’s announcement. We have chosen rightly, on the basis of expert advice, to prioritise buildings of over 18 metres. That is where the greatest risk is. It would be quite wrong for us to direct public money—taxpayers’ money—to buildings where the risk is low or extremely remote, so we are targeting that money on the buildings that need it most. In those buildings, leaseholders can have certainty that they will not be paying for the remediation of unsafe cladding. It will be paid for either by the building owner—the developer—which is quite right, or by the taxpayer. We will use the levy and the new tax to recoup as much of that as we possibly can.

In other buildings where the risk is significantly lower, the new financing arrangement will give people real comfort that they never need to pay more than £50 a month. My expectation is that many of them will pay significantly less. I think most reasonable people would see that sum of money as truly affordable and manageable within the budget of most homeowners.

Unsafe Cladding: Protecting Tenants and Leaseholders

Florence Eshalomi Excerpts

Monday 1st February 2021 Commons Chamber

[Florence Eshalomi (Vauxhall) (Lab/Co-op) [V]]

This debate is long overdue. I thank my Labour colleagues for bringing it to the House, and I thank all Members who have made a contribution today, for this truly is a national scandal. Many colleagues have rightly reminded us of the horror and tragedy of Grenfell. They have also spoken about the Government’s slowness to recognise the breadth and scale of the issue, their reluctance to get things moving, and the hollowness of their repeated promise that no leaseholder should have to foot the bill.

My constituency of Vauxhall is only a few miles from Grenfell, but today we still have hundreds of unsafe buildings. I have been contacted by over 200 leaseholders living in more than 26 different housing developments, some with multiple high-rise blocks. Each and every one of those leaseholders is now spending their third lockdown in a home with serious safety defects, not knowing when their building will be fixed or even how they will pay for it—or why they should pay for it. In the meantime, they have to pay eye-watering costs to put interim safety measures in place. One block in Vauxhall has to pay over £10,000 per flat just to install a 24-hour waking-watch system. Another block paid £130,000, before spending an additional £40,000 on an alarm system. These interim costs alone are causing so many leaseholders to become bankrupt, not to mention the additional stress and anguish. That is why one of our demands today is for a waking watch fund to be fast-tracked to leaseholders as a matter of urgency.

There is so much more that the Government can and should be doing to right the wrong that is the national cladding scandal. They have the opportunity in the forthcoming Fire Safety Bill to support amendments from Members across the House. I urge all colleagues to show their support, and to care and stand up for their constituents, by voting in favour of today’s motion.

Holocaust Memorial Day 2021

Florence Eshalomi Excerpts

Thursday 28th January 2021 Commons Chamber

[Florence Eshalomi (Vauxhall) (Lab/Co-op)]

It is a privilege to be able to speak in such an important debate and I would like to echo the contributions of other hon. Members today. I think we can all agree that this is an issue that unites us across the House.

Holocaust Memorial Day allows us a moment to remember the 6 million Jewish victims of Nazi holocaust and the other victims of Hitler’s murderous regime. It also reminds us that genocide did not end in 1945. It allows us to reflect on our human experience and the choices we make. We know that darkness exists within all of us, but we can choose to be the light. We can choose not to be drawn down into a dark place of hatred and discrimination that only leads to one place.

Three weeks after I was elected as the MP for Vauxhall, anti-Islamic slogans were painted on the walls of a mosque in my constituency. That hideous hate crime was rightly, and immediately, condemned by everybody in a position of local authority. It came three days after antisemitic graffiti was sprayed across a synagogue and shops in north London, during the Jewish festival of Hanukkah.

Genocide does not just happen. People do not wake up one day and decide that they hate each other. It is a slow process that builds over time. We know from history that latent hatred can lead to genocide when it is left to fester and then exploited by those in positions of power. We cannot pick and choose which forms of racism or hatred we do not like. We must all be united in condemning all forms of racism and hatred, whenever and wherever it happens.

It is our duty as public servants to ensure that those in power never knowingly sow division through the language they use or the actions they take, or choose not to take. We must always be vigilant to see the warning signs, and we must call out racism, discrimination and hatred whenever we see it. The power of Holocaust Memorial Day is that it reminds us never to forget.