Leasehold and Commonhold Reform

Debate between Hilary Benn and George Howarth

Thursday 21st December 2017 Westminster Hall

[Mr Howarth]

My hon. Friend makes a very good point. Was someone else trying to intervene?

[Hilary Benn]

If my right hon. Friend is offering, I will.

[Mr Howarth]

I did not have my right hon. Friend in mind, but I can never resist giving way to him.

[Hilary Benn]

My right hon. Friend is most kind. Listening to the powerful testimony on all sides of this Chamber, peeling the layers of an onion to see the full nature of this scandal, does he agree that it is impossible to reach any other conclusion than that the developers are responsible for this? They must have known what they were doing and what they hoped to gain by selling the freehold on to others who then engaged in the sharp practice that we have heard about. They bear the responsibility. The law will stop them from doing it anymore, but they also need to compensate people. Bearing in mind what has happened to developers’ profits —Miller Homes, which I mentioned earlier, announced earlier this year a 44% increase in their pre-tax profits—they can afford it, and they have a moral responsibility to compensate people they have put in an untenable position.

[Mr Howarth]

I am glad that I gave way to my right hon Friend; the point he makes is right. People should be compensated for what has happened to them. It is disgraceful and it should never have happened.

I conclude by asking the Minister—I realise that it is quite a delicate thing to do—to consider whether the Government can discourage developers from disposing of freeholds to management companies until it is clearer exactly how this problem will be tackled? That would be very helpful. I realise that it is a tricky area legally speaking, as we heard from the hon. Member for Witney. Nevertheless, I would certainly welcome whatever could be done to discourage or freeze any further transactions for the time being, and I know that all my constituents who have been affected would welcome that, too.

Local Government Finance

Debate between Hilary Benn and George Howarth

Wednesday 8th February 2012 Commons Chamber

[Hilary Benn]

My hon. Friend is absolutely right, and he anticipates some of the figures I am going to give to the House.

First, however, it is important to note that the Secretary of State lost out to the Treasury—assuming, of course, that he tried to protect local councils in the first place, and there many who would doubt whether he put up much of a fight, given the glee with which he regularly attacks councils for what they do. The consequences of all this are: one, that local government has to deal with cuts that are unfairly distributed; two, that residents are having to come face to face with the consequences of those cuts, as services they rely on change or go; and, three, looking to next year, that councils face nothing but uncertainty about their future financial position. Let me deal with each of those in turn.

Despite the Secretary of State’s claim that what he has done is fair and sustainable, the House knows that the 10% most deprived upper-tier authorities are facing a reduction in their spending power that is nearly four times greater than that faced by the 10% least deprived authorities. That is why the Minister’s argument falls at the very first hurdle. It is also undermined by his Department’s figures.

Newcastle city council has done us all a very great service by laying out the facts. It looked at data taken from the Department for Communities and Local Government showing the cuts in 2010-11, 2011-12 and 2012-13, taking account of transition and council tax freeze grants and the provisional new homes bonus allocations. What do the figures show when all that is taken into account? Basingstoke and Deane will gain—I stress, gain—£6 a person overall, while Knowsley will lose £227 per person. East Dorset gains £3 a resident, while Manchester loses £186. In Greater London, everyone loses, but some lose much more than others. The borough of Richmond is down by £2 a head, whereas Hackney is hit by a whacking great loss of £234 a head. Why is that? Those are the raw figures behind the hard-faced politics that prove that the Chancellor is trying to balance the budget on the backs of the poor.

If Ministers do not like hearing the truth from Newcastle or from their own statistics, what about hearing it from the independent Institute for Fiscal Studies? Its analysis by region shows that London and the north of England have been especially badly hit. Every year it publishes the green budget before the real Budget, and the 2012 green budget shows that overall cuts in local government spending, excluding education, are largest in both absolute and proportional terms in London, the north-east and the north-west.

[Mr George Howarth (Knowsley) (Lab)]

My right hon. Friend mentioned Knowsley a moment ago when he was comparing figures. Does he agree that when we look at the acute levels of deprivation across the spectrum that we experience in Knowsley, those figures are even worse, because some of the poorest communities in the country are being punished severely in comparison with some of the better-off communities which are getting off almost scot-free?

[Hilary Benn]

My right hon. Friend argues the case for his constituents with great force and vigour, and he is absolutely right. This is fundamentally unfair. The reason it is happening—the Minister was remarkably reluctant to admit the truth—is that councils in deprived urban areas rely to a much greater extent than councils in more affluent areas on central grants from the Treasury, which have been cut significantly.

Business of the House (Thursday)

Debate between Hilary Benn and George Howarth

Wednesday 8th December 2010 Commons Chamber

[Hilary Benn]

As I said, the quote from Lord Browne is:

“Over the last year, we have consulted widely and intensively.”

[Interruption.] If hon. Members will be patient, they will see what this has got to do with the business motion before us tonight. Let us compare the length of time that Lord Browne took in preparing his proposals to what is before the House tonight. The Browne committee had a year to consider what it recommended; the House is to be given five hours to consider the recommendations and dispose of them. Everybody else was consulted at length, but MPs are to be given just five hours to express a view.

[Mr George Howarth (Knowsley) (Lab)]

I wonder whether my right hon. Friend can help me. I have been pondering whether any measure of comparable controversy has ever gone through this House with so little debate and in such a short space of time. Can he help me? Is there any example of that?

[Hilary Benn]

In preparing for the debate this evening, I, too, asked myself that, and I struggled to think of another example of when the House had so little time to consider something so profound.

Nobody can be under any misapprehension about the scale of the change that is being proposed. Lord Browne said:

“What we recommend is a radical departure from the existing way in which HEIs”—

higher education institutions—

“are financed…Our recommendations will lead to a significant change”.

The plain truth is that the Browne report, which is radical and significant in its implications, has not even been debated in the House yet. Since the report was published, on 12 October 2010, there has been one urgent question, when the Secretary of State was forced to come to the House and explain what was going on, and one ministerial statement, on 3 November. However, there has been no debate at all on the Browne report in Government time—none.