Local Government Brexit Funding: Local Ports

James Brokenshire Excerpts

Wednesday 20th February 2019 Written Statements

[The Secretary of State for Housing, Communities and Local Government (James Brokenshire)]

On 28 January, I announced £56.5 million of new funding to help councils prepare for Brexit as set out in a written ministerial statement on local government Brexit funding, Official Report, column 31WS. Part of that funding was £1.5 million in 2018-19 to local authorities facing immediate impacts from local ports.

I am today able to announce an increase of this funding from £1.5 million to £3.14 million. Its distribution to local authorities is set out in table 1 below. This additional funding will support those authorities to plan and better mitigate against potential disruptions once we have exited the EU.

The funding will be divided between 19 district and unitary councils. These allocations are based on recent analysis and engagement and reflect a range of issues including the amount of EU goods managed and the wider, strategic importance of these ports.

As part of the 28 January announcement, I retained £10 million for allocation during 2019-20 to respond to specific local costs that may only become evident in the months after we exit the EU. I will look carefully at any pressures that should be funded, including any emerging pressures relating to port functions or wider impacts on port areas.

Building Safety

James Brokenshire Excerpts

Thursday 14th February 2019 Written Statements

[The Secretary of State for Housing, Communities and Local Government (James Brokenshire)]

Since the discovery that a glass-reinforced plastic (GRP) composite fire door from Grenfell Tower marketed as meeting a 30-minute standard failed a test after approximately 15 minutes, the Government have led a programme of work to investigate fire door performance across the market in the interest of public safety and reassurance. Today I am updating the House on actions taken.

Following consultation with representatives from the Metropolitan Police, the Government’s chief scientific advisors and the National Fire Chiefs’ Council, the Government’s independent expert panel advised that, while the overall risk to public safety was low, further investigations should be undertaken into other GRP composite fire door manufacturers.

During testing, a sample of GRP composite fire doors from nine manufacturers failed to meet the required fire performance standard. The sample of fire doors failed for a range of reasons including but not restricted to performance at the glazing unit, letter box and the door frame. There was some evidence of over reliance on written assessments being used in lieu of primary tests for significant changes in hardware and ironmongery, and for the reverse side of the door. These findings clearly indicated broader failings within the industry. The Government therefore took further urgent action.

My Department wrote to all building control bodies highlighting the need to check that existing building regulations guidance on new GRP composite fire door installations is followed. The guidance sets out the tests which should be performed— including testing on both sides of the door—to meet building regulation requirements.

My Department also notified Trading Standards of the test results and local Trading Standards are working with the individual companies concerned.

On 28 July I instructed major GRP composite fire door manufacturers to meet urgently to agree actions to tackle the failings which have been identified. As a result, the following actions have been taken:

In August 2018, the three companies providing GRP composite fire door blanks in the UK agreed to stop production and sale of any door blanks with immediate effect. This stopped any new GRP composite fire doors from entering the market.

In August the Association of Composite Door Manufactures (ACDM) further agreed that all GRP composite fire doors sold from their members would be removed from the market until they could demonstrate meeting the required standard. This stopped any fire doors from ACDM members already in production leaving factories.

In August the ACDM established a collaborative testing programme to facilitate manufacturers bringing quality product meeting the required standard back to market. The ACDM provided assurance that all products brought back to market will have the required furnace test report for both sides of the door before being sold.

The ACDM also agreed that all members of the ACDM will be required to sign up to a third-party accreditation scheme carrying out additional checks on their fire doors to drive up quality across the market.

All GRP composite manufacturers with a failed test are consulting their customers to establish an effective new building safety risk assessment. At least one manufacturer has gone beyond this providing a dedicated telephone helpline for their customers and offering meetings to help customers understand the situation.

The ACDM is working on an industry-led plan for repair and replacement of affected doors. The ACDM is working closely with my Department on its plan to ensure it can be published by industry as soon as possible.

As well as work to encourage industry action, my Department has liaised closely with social housing building owners to ensure that they have been kept up to date with the fire doors investigation. To facilitate this, it has established a mechanism for local authorities and housing associations confidentially to share test results from fire door testing to inform building risk assessments and support our investigation.

Manse Masterdor, the manufacturers of the door from Grenfell Tower, went into administration in November 2014 and is therefore not part of the wider industry action outlined above. My Department has been working closely with local authorities and housing associations with Manse Masterdor GRP composite fire doors in their buildings regarding replacement of these doors.

In parallel, the expert panel has issued guidance for building owners looking to fit or replace fire doors, which can be found on the building safety programme website. The summary results of the GRP composite tests to inform building risk assessment are also now available on the building safety programme website.

I can confirm that the expert panel advice remains unchanged and the risk to public safety remains low as even when not meeting full resistance standards fire doors will provide some protection from the spread of fire and are part of a layered fire protection systems within buildings.

The National Fire Chiefs Council continue to advise that, in the event of a fire, people should follow existing fire procedures for the building. Residents should also test their smoke alarms regularly to ensure they work and ensure that their flat front door is fitted with a working self-closing device. All doors provide some essential protection in a fire if they are properly closed.

I want to reassure hon. Members that my Department is doing all it can as quickly as possible to properly investigate these issues and to make sure that where needed appropriate action will be taken.

On the advice of the expert panel, investigations are ongoing into the timber fire door industry. Public safety is paramount and I will continue to keep the House updated.

[HCWS1334]

Integrated Communities

James Brokenshire Excerpts

Monday 11th February 2019 Written Statements

[The Secretary of State for Housing, Communities and Local Government (James Brokenshire)]

Britain is a great place to live and is made stronger by its diversity. However, the benefits and opportunities of our society are not felt equally by everyone. No community should feel excluded, and everyone should understand and embrace the benefits and opportunities of living in modem Britain.

In March 2018, the Government launched a consultation on the Integrated Communities Strategy Green Paper to obtain the views of the public and organisations on its ambitious goal to build integrated communities where people—whatever their background—can live, work, learn and socialise together based on shared rights, responsibilities and opportunities. The consultation ran for 12 weeks in total and closed on 5 June 2018.

I am today publishing the Government’s response to this consultation. The consultation process considered the Government’s proposed actions as laid out in the Integrated Communities Strategy Green Paper and presented a number of questions about the Government’s strategy for consultation. There were over 3,400 responses to the consultation, reflecting the high level of interest in building integrated communities. A breakdown of the responses to each of these questions can be found in the Government’s response.

The Government have taken the views expressed in the consultation into account when developing our next steps. These are set out in the integrated communities action plan I am also publishing today. This outlines more than 70 actions across Government to help create strong and integrated communities. This action plan will build the capacity of our leaders, strengthen our communities, boost English language proficiency, and give people the infrastructure they need to thrive. The views of communities will continue to be an important factor when implementing these actions.

The action plan sets out a framework of national priority actions to promote integration and adopts a localised approach. As the Secretary of State for Communities, one of my priorities is to help build thriving, liveable and resilient places where people get along—from our high streets to our community spaces.

I am placing a copy of both documents in the Library of the House.

[HCWS1321]

Rough Sleeping

James Brokenshire Excerpts

Friday 8th February 2019 Written Statements

[The Secretary of State for Housing, Communities and Local Government (James Brokenshire)]

On 31 January, figures for the 2018 rough sleeping count were published and showed a welcome 2% reduction in the number of rough sleepers. While this decrease is encouraging, I know we must maintain our focus on making sure nobody has to spend even a single night sleeping on the streets. This Government are determined to get to the root of the problem, unique to every local authority, and tackle the complex range of reasons why people sleep rough, helping to prevent it from happening in the first place.

Early Adopters of the Rapid Rehousing Pathway

In December, we announced the locations of our first 11 Somewhere Safe to Stay hubs, one of four elements that make up the rapid rehousing pathway as announced in the rough sleeping strategy in August.

Today, I am pleased to announce the allocation of funding to a further 42 areas across the country for the three remaining elements of the rapid rehousing pathway—navigators, supported lettings and local lettings agencies.

Navigators are specialists assigned to rough sleepers, acting as a single point of contact to support people into settled accommodation, helping them access appropriate local services and sustain a safe life away from the streets;

Local lettings agencies work to source, identify, or provide homes and advice for rough sleepers or those at risk, supporting them into affordable, settled accommodation;

Supported lettings support individuals with a history of rough sleeping to help them to sustain their tenancies.

This funding will enable more than 80 navigators to work with up to 1,600 people sleeping rough, provide up to £2.8 million for supported lettings across 17 areas and up to a further £1.25 million for local letting agencies across nine areas. We estimate supported lettings to support around 600 rough sleepers, with local lettings agencies expected to make around 1,200 properties available.

Local areas will be able to connect people with the right support and sustainable housing to move them swiftly away from the street and facilitate their journey to recovery, bringing us a step closer to ending rough sleeping for good.

The full list of the 42 areas can be found at: www.gov.uk/government/publications/rapid-rehousing-pathway-additional-42-early-adopters

[HCWS1316]

Unauthorised Development and Encampments

James Brokenshire Excerpts

Wednesday 6th February 2019 Written Statements

[The Secretary of State for Housing, Communities and Local Government (James Brokenshire)]

The Government have today published their response to the consultation on powers for dealing with unauthorised development and encampments. This statement should be read alongside the written ministerial statement on improving the effectiveness of enforcement against unauthorised encampments made today by my right hon. Friend the Secretary of State for the Home Department.

Since 2010, the Government have taken concerted action to address these matters, including issuing revised planning guidance on enforcement, updated policy, and reforms to temporary stop notices. In March 2015, the Government issued advice on dealing with illegal and unauthorised encampments to all local authorities, the police and landowners to encourage them to work collaboratively to tackle unauthorised encampments, and to remind them of the array of powers which exist for tackling such situations.

In terms of wider Government support for the provision of traveller sites, the new homes bonus provides an incentive for local authorities to encourage housing growth in their areas, and rewards net increases in effective housing stock, including the provision of authorised traveller pitches. In addition, the £9 billion Affordable Homes programme will provide a wider range of homes to meet the housing needs of people in different circumstances and different housing markets, including funding for new traveller pitches. We have also seen that the number of caravans on authorised sites has increased from 14,498 in July 2010 to 19,569 in July 2018, showing that the locally led planning system is working.

But the responses received in our consultation were clear that significant problems are created by many unauthorised encampments. Responses highlighted the sense of unease and intimidation residents feel when an unauthorised encampment occurs, the frustration at not being able to access amenities, public land and business premises, and the waste and cost that is left once the encampment has moved on.

That is why the Government are today setting out a comprehensive range of further measures across multiple Government Departments and agencies, which will help to achieve the Government’s overarching aim of fair and equal treatment for travellers, while respecting the interests of the settled community. The package includes:

a set of measures to extend powers available to the police, to enable unauthorised encampments to be tackled more effectively

a review into the potential criminalisation of unauthorised encampments

new statutory good practice guidance to support local authorities use of powers to deal with unauthorised encampments and a commitment to keep these powers under review, particularly in instances of deliberate and repeated breaches of planning

a commitment to further work to ensure that measures are in place to address issues around the clean-up costs which can occur following an unauthorised encampment

up to £1.5 million of funding for local authorities to support planning enforcement through the next round of the planning delivery fund, helping them deal with unauthorised development

a commitment that the Government are minded to extend the period of time that a temporary stopping notice can be in place for

guidance making clear that the Secretary of State will be prepared to review cases where concerns are raised that there is too high a concentration of authorised traveller sites in one location

a commitment to consult on options for strengthening policy on intentional unauthorised development, helping to maintain confidence and fairness in the planning system

work to make information on permanent and transit sites freely available in open data format so that local authorities have a single clear source of data on the availability of such sites

a reiteration of the planning obligations which local authorities already have to make transit sites available and for joint working between authorities on the setting of pitch and plot targets.

Finally, I am keenly aware of evidence showing that members of the Gypsy, Roma and Traveller communities have significantly worse health and education outcomes than the rest of society, and of the prevalence of domestic abuse in these communities. I will ensure that my Department’s forthcoming response to our review of domestic abuse service provision takes into account the support needs of victims from this community, and I will work with my colleagues across Government on a strategic approach to improving outcomes for Gypsies, Roma and Travellers, as well as settled communities.

[HCWS1305]

Local Government Finance

James Brokenshire Excerpts

Tuesday 5th February 2019 Commons Chamber

[The Secretary of State for Housing, Communities and Local Government (James Brokenshire)]

I beg to move,

That the Local Government Finance Report (England) 2019–20 (HC 1916), which was laid before this House on 29 January, be approved.

[Madam Deputy Speaker]

With this it will be convenient to discuss the following motions:

That the Report on Referendums Relating to Council Tax Increases (Alternative Notional Amounts) (England) 2019-20 (HC 1917), which was laid before this House on 29 January, be approved.

That the Report on Referendums Relating to Council Tax Increases (Principles) (England) 2019–20 (HC 1918), which was laid before this House on 29 January, be approved.

[James Brokenshire]

Strong, vibrant, resilient communities are, more than ever, key to unlocking a brighter future for our country. We must therefore celebrate them and help them to succeed, and, in turn, support councils and the many people who serve them every day in delivering essential services and changing lives. I hold those dedicated public servants in the highest regard and have faith in them to rise to the challenges that lie ahead, seeing their people and places flourish with no one left behind. To achieve that, they must have the necessary tools and resources to do their job and I am determined to ensure that they get them. That was why I published the provisional settlement on funding for local authorities in England late last year and invited contributions as part of our formal consultation on that.

We received around 170 responses and I am grateful to those who engaged so constructively with me and my Ministers. My particular thanks throughout the process go to the Under-Secretary of State for Housing, Communities and Local Government, my hon. Friend the Member for Richmond (Yorks) (Rishi Sunak), for all his work and immense efforts.

That important work has helped to shape the final settlement, which recognises the pressures that councils face and acknowledges their impressive efforts to drive efficiencies and strengthen our public finances. That paves the way for more confident, self-sufficient and reinvigorated local government.

I am pleased to confirm on behalf of the Government that, importantly, core spending power is forecast to increase from £45.1 billion in 2018-19 to £46.4 billion in 2019-20. That amounts to a cash increase of 2.8% and a real-terms increase in resources available to local authorities, which is good news for the many communities that will benefit.

[Mike Amesbury (Weaver Vale) (Lab)]

Does the Secretary of State recognise that children’s services are now at crisis point and that there will be a £2 billion—£2 billion! —shortfall by 2020?

--- Later in debate ---

[James Brokenshire]

We are spending around £1 billion more than at the start of this Parliament. Some £84 million is added into the settlement to ensure that we drive quality and support in the knowledge that, yes, there are pressures. I hope that the hon. Gentleman will recognise the additional £410 million that has been committed to children’s and adult social care in response to the good work that is going on and some of the pressures.

[Mr Bob Seely (Isle of Wight) (Con)]

I welcome the £2.7 million extra for the Isle of Wight. More than that, I am delighted that, for the first time ever, the fair funding review mentions English islands and refers to the Isle of Wight by name as somewhere that requires extra study to analyse additional costs. Will my right hon. Friend ensure that that results in concrete extra support for English islands and the Isle of Wight in recognition of the needs of islands?

[James Brokenshire]

My hon. Friend is a fine champion of the interests of the Isle of Wight and I commend him for his work. He has made representations to the Local Government Minister and seen a recognition that different communities are affected in different ways as we look at the review of relative needs and resources. Obviously, we will listen carefully to representations we receive from hon. Members of all parties as we move forward with the review.

[Stephen Lloyd (Eastbourne) (Ind)]

The Secretary of State talks about the additional cash for local authorities. I spoke to a colleague who was at East Sussex County Council’s budget meeting today, and I can tell the right hon. Gentleman that the situation is a catastrophe. The situation with core funding means that meals on wheels are being cut. Unless additional money comes next year, services for vulnerable children will be savaged. Will the Secretary of State today commit to giving East Sussex County Council fairer funding? Even though this is a Tory-led county, the council is on its knees. It needs the money urgently.

[James Brokenshire]

I hope that the hon. Gentleman will recognise that East Sussex is part of the business rates pilots and gets the benefits that attach to those involved in that process through the additional resources that are garnered from it. Councils across the south-east will get an extra £226 million in their core spend in the settlement if the House approves it today, which will mean around £7.1 billion of funding.

[Mr Edward Vaizey (Wantage) (Con)]

Will my right hon. Friend join me in congratulating Ian Hudspeth and Oxfordshire County Council on the excellent way in which they have managed their resources? Does he agree that capital funding is equally important? I hope that he will look kindly on our housing infrastructure funding bid, because that funding would provide vital infrastructure for Didcot in my constituency, which is one of the economic engines of the United Kingdom.

[James Brokenshire]

I pay tribute to Oxfordshire and to all councils that have been working hard to provide services for their local communities. I am sure that my right hon. Friend will recognise the increase of about £16.9 million that will come through the settlement for Oxfordshire. I am looking carefully at the housing infrastructure bids in respect of Didcot and elsewhere, and I note his lobbying in that regard.

[Several hon. Members rose—]

[James Brokenshire]

I will take one more intervention and then I will seek to make some progress.

[Gareth Thomas (Harrow West) (Lab/Co-op)]

Harrow Council is not unique in having had most of its revenue support grant axed over the past seven years. What conversations is the Secretary of State having with the Chancellor of the Exchequer so that we can, as we hope, see a significant increase in that revenue support grant in the comprehensive spending review?

[James Brokenshire]

I am looking carefully at sustainability and issues relating to local government finance more broadly. I hope that the hon. Gentleman will recognise the change that is happening in the structure of local government finance and the move away from revenue support to the retention of business rates. In London, we have a 75% business rate retention pilot. We want to move away from the merry-go-round of money being collected so that it comes into central Government and then going back by way of a grant. We want to simplify the process.

[Several hon. Members rose—]

[James Brokenshire]

I will take one final intervention, but then I will make some progress, because I know that a lot of Members want to speak and I am conscious that interventions will eat into their time.

[Alberto Costa (South Leicestershire) (Con)]

Does my right hon. Friend agree that the measures he is outlining will help Leicestershire County Council, which is involved in the business rate retention pilot scheme, as well as Harborough District Council and Blaby District Council? Those three local authorities are led by excellent Conservative administrations.

[James Brokenshire]

I commend the Conservative authorities in my hon. Friend’s area for their work, and I commend him for his recognition of the benefit that accrues from the business rate retention pilots and of how funding from the growth in business rates can be invested into local services. That is why we want to move to this new system throughout the next financial year.

These proposals will amount to a real-terms increase, but I know that we face a number of challenges. Among the most serious is the responsibility that councils—and, indeed, all of us—have towards the most vulnerable in our society. It is therefore right that out of the more than £1 billion of extra funding committed at last year’s Budget, £650 million will go towards adult and children’s social care in 2019-20. This will help to meet the pressures resulting from an ageing population. Some £240 million of that amount has been allocated to ease pressures on the NHS, and that is on top of the £240 million announced in October to address current winter pressures. The remaining £410 million can be spent on either adult or children’s social care and, where necessary, to take pressure off the NHS. I know that local authorities will value that flexibility greatly.

We are investing a further £84 million over the next five years to expand three of our most successful children’s social care innovation programme projects in up to 20 local authorities to keep more children at home safely. We are supporting local authorities to make the best use of available resources and to increase efficiency, as well as to innovate and improve the way in which they deliver services. Better integration of the health and care systems with other local services is essential, particularly in regard to social care. The long-term NHS plan, with its welcome shift from acute to community healthcare services, together with the upcoming social care Green Paper, will make a big difference.

[Dr Dan Poulter (Central Suffolk and North Ipswich) (Con)]

I welcome the extra funding that is going into social care, notwithstanding reductions over the past several years. Will my right hon. Friend do all that he can to ensure that that money is not just pumped into the acute sector? Integration far too often seems to mean bailing out hospitals that are struggling because of increased demand from an ageing population and people with multiple co-morbidities, so will he ensure that more of that money is directed into preventive care in the community? This would take pressure off the NHS and keep people well and properly supported in their own homes.

[James Brokenshire]

My hon. Friend will recognise the work of the better care fund and some of the positive outcomes that it has driven for acute hospitals and social care, such as preventing people from having to go to hospital, as he highlights. Ensuring that the social care system works effectively to deal with some of the pressures is a core component of the NHS long-term plan.

[Several hon. Members rose—]

[James Brokenshire]

I will give way to the hon. Member for Slough (Mr Dhesi) and then take a couple more interventions.

[Mr Tanmanjeet Singh Dhesi (Slough) (Lab)]

I thank the Secretary of State for giving way. A new study by the Centre for Cities shows that Slough has been the hardest-hit town in the south-east. In fact, it has been the 10th worst hit nationally by this Government’s austerity measures. Slough’s local government spending has been cut by 23% since 2009-10, while the UK average figure is 14%. Does the Secretary of State agree that it is unfair to mete out the deepest cuts in those areas that are most affected by issues such as childhood obesity, childhood poverty and homelessness?

[James Brokenshire]

The hon. Gentleman will recognise the need for us to look carefully at relative needs and resources. I encourage him to engage constructively and positively with our review so that we get the right formula to ensure that need is recognised. He makes an important point, but we are putting more funding into the system, and I hope that he will recognise the benefit.

[Anna Soubry (Broxtowe) (Con)]

Nottinghamshire County Council, which is run by an exceptional Conservative group, has had its funding cut by 52% since 2013—from £238 million to £118 million for 2019-20. Despite its excellent budget management and real-terms cuts to services, the council’s deficit is projected to be £34.1 million. I say to my right hon. Friend, who is a very good Secretary of State, that the cuts have been going on for too long, and county councils such as Nottinghamshire will now have to cut through the muscle and into the bone. They simply need more money. On that basis, I will be abstaining this evening.

[James Brokenshire]

I pay tribute to the work that councils such as Nottinghamshire have done over the past few years in making hard calls and difficult decisions as a consequence of the financial position that the Government have had to deal with. I encourage my right hon. Friend to look at core spending power, which combines all sources of local government income, because she will see that Nottinghamshire will have an additional £16.3 million between 2018-19 and 2019-20, which is an increase of 3.2%.

[Tim Loughton (East Worthing and Shoreham) (Con)]

I am terribly grateful to my right hon. Friend for giving way. West Sussex is thankful for the additional money and for the business rates retention pilots, but the truth is that we have had to make savings of £200 million over the past eight years and face a gross gap of £145 million over the next four years. We have one of the oldest populations in the country, with the consequent social care requirements, and we are in the bottom decile for schools funding. In addition to all that, we have “Think Family”—one of the best troubled families programmes—and it would be a catastrophe if its funding were not renewed next year, because it offers really good preventive early intervention work, the effects of which are great and save money later on.

[James Brokenshire]

I am a strong supporter in the troubled families programme, and I have been a strong believer in preventive work for young people, including through family units, for many years. My hon. Friend makes an important point based on his experience about the value of such services and interventions. I assure him that I will continue to focus on that as we look to the months ahead and the spending review.

[Several hon. Members rose—]

[James Brokenshire]

I need to make some progress due to the time available for this debate.

To do more, it is crucial that we listen and respond to what local authorities are telling us, not just on the NHS and social care, but on all issues. It is in that spirit that we are increasing the rural services delivery grant by £16 million in 2019-20 to maintain it at last year’s level. In addition, after consulting widely, we have decided directly to eliminate negative revenue support grant—where changes in revenue support grant have led to a downward adjustment of some local authorities’ business rates top-up or tariff—in 2019-20. I recognise the strength of feeling about that, and I believe this is the most straight- forward and cost-effective approach for the next year.

We also want to continue rewarding councils for delivering the homes we need. I therefore confirm that the new homes bonus baseline threshold will be maintained, at a cost of £18 million. The message about councils wanting certainty to help them plan also came across loud and clear in the consultation. To that end I can confirm that, in 2019-20, local authorities, with the exception of police and crime commissioners, will retain the same package of council tax referendum limits as in 2018-19. This will protect local taxpayers from excessive increases, in line with our manifesto commitment.

Every council has the freedom to set higher council taxes if it wishes, provided it gains the consent of local people in a referendum. I am also providing an additional 2% council tax flexibility to Northamptonshire County Council to assist with improvements to council governance and services after its serious issues.

With the end of the current multi-year deal in sight, it is clear that we need to take a longer view on how we fund councils as we move to a stronger, sustainable, smarter system of local government. Preparations this year for increased business rates retention, a new approach to distributing funding between local authorities and the upcoming spending review will be pivotal to this, as will the important work under way with local authorities and the wider sector to better understand service costs and pressures. Again, we are listening and responding.

For years, councils have asked for more control of the money they raise, and we are giving it to them through our plans to increase business rates retention to 75% from 2020, in the process providing local authorities with powerful incentives to grow their economies. Local authorities estimate they will retain around £2.4 billion in business rates growth in 2018-19 under the current system, a significant revenue stream, on top of the core settlement funding I am outlining today.

The pilots testing increased business rates retention have, unsurprisingly, proved very popular, and I am delighted there will be 15 new pilots for 2019-20 covering 122 local authorities. We will also be piloting 75% business rate retention in London and continuing our existing pilots in devolution deal areas.

[Henry Smith (Crawley) (Con)]

I thank the Secretary of State for including West Sussex in the business rates retention scheme and for the 4.2% increase the county council is getting. Crawley Borough Council has reserves of over £21 million. What more can be done to make sure that councils use such large reserves more efficiently?

[James Brokenshire]

I congratulate my hon. Friend on the way in which he has championed his local area. As a former local government leader, he has shown what can be delivered through local authorities, and I commend him for that.

My hon. Friend highlights the increased spend that West Sussex will gain as a consequence of the settlement before the House, but obviously it is for local authorities to work smartly and thoughtfully in relation to their retained reserves. There is a clear need for reserves, which he will understand, but he rightly underlines the need to use those funds sustainably, appropriately and effectively.

[Mr Clive Betts (Sheffield South East) (Lab)]

The Secretary of State rapidly skipped over the funding review. Will he confirm that the consultation proposed in December to take deprivation out of the foundation element of the funding review? That would transfer money from deprived areas to non-deprived areas. Is that fair?

[James Brokenshire]

Obviously we will look at all the representations that continue to be made during the review of relative needs and resources, but our analysis in the review demonstrates that, overall, population is by far the most important cost driver for both the upper-tier and lower-tier foundation formulae. Although in aggregate terms deprivation is not shown to be a major cost driver for the services included in the foundation formulae, I am of the view that relative levels of deprivation remain an important cost driver for some specific service areas such as social care. I welcome views as part of the current consultation, and I am sure the Select Committee will continue to focus on this important work.

[Kevin Hollinrake (Thirsk and Malton) (Con)]

Can it be right that prior to the new fairer funding formula central Government grants for inner London were £437 per person per year, whereas the grants for county areas were £153 per person per year? Do we not simply need a fairer funding formula?

[James Brokenshire]

My hon. Friend makes the case clearly for undertaking this review and looking at this properly. We need to look at the starting point and take the approach he highlights to ensure that fair distribution can be made.

[Several hon. Members rose—]

[James Brokenshire]

I will give way one last time but then I really must conclude.

[Sir John Hayes (South Holland and The Deepings) (Con)]

While mindful of the intervention from the Chairman of the Select Committee—of course it is right that we take into account deprivation—let me say that a range of other factors are involved. Rurality and sparsity in a county such as Lincolnshire make it hard to deliver public services, as the Secretary of State will know. He has mentioned rurality, so when he looks at the funding formula, while being mindful of that earlier intervention, will he look at that matter once again?

[James Brokenshire]

My right hon. Friend makes an important point about rurality, the impact it can have and the cost drivers it can generate. I assure him that we will be analysing it closely as the work continues.

[Several hon. Members rose—]

[James Brokenshire]

I must make some progress.

I know that local authorities were also pleased to hear that we plan to distribute £180 million of surplus in the business rates retention levy account in 2018-19, which was generated by strong growth in business rates income, to every authority in England, based on need. But as well as more control, councils want and need to see a clearer link between the allocation of resources and local circumstances.

[Mr Jim Cunningham (Coventry South) (Lab)]

On a point of order, Madam Deputy Speaker. I have tried two or three times to draw the Secretary of State’s attention to serious cuts in Coventry, and the people of Coventry want to know what the benefits are in relation to the £1 billion that he just announced—

[Madam Deputy Speaker (Dame Rosie Winterton)]

Order. The Secretary of State has the right to take as many or as few interventions as he wishes. He is aware that there is pressure on time. I am not sure whether the hon. Gentleman has put in to speak, but he really does have to wait until the Secretary of State wants to give way. I do not like points of order getting in the way of speeches, because I do not think it is fair on others who are waiting to speak.

[James Brokenshire]

Thank you, Madam Deputy Speaker. I know that a number of Members wish to speak this afternoon. I hope I have been generous in taking interventions, but I am conscious of allowing sufficient time for right hon. and hon. Members to make their points for their individual communities. I did not mean any disrespect to the hon. Member for Coventry South (Mr Cunningham), as I know he takes these issues extremely seriously. It was on that basis that I sought to be generous but I need to make progress now.

As well as more control, councils want and need to see a clearer link between the allocation of resources and local circumstances. That is why we are working with them to overhaul a funding formula that is currently far too complicated and badly out of date. We need to look at this afresh and do away with anomalies such as double weighting for urban roads compared with rural roads, which the Labour party was far too comfortable imposing. Let us not forget that local people paid the price for Labour: under the last Labour Government the average band D council tax bill went up by a staggering 109% between 1997 and 2010, costing families, on average, an extra £751 a year. Given that track record, one would think that the Opposition might have learned a lesson or two about excessive tax rises, but no. Labour’s manifesto set out plans for a new land tax on family homes, which would punish those with gardens. Labour’s garden tax would send tax bills soaring and house prices plummeting, and would pressure families to build over their back gardens. By contrast, our approach has been informed by a strong consensus on the need for fairness, for local authorities and for local taxpayers. It is now critical that everyone takes a pragmatic approach, recognising the trade-offs that are necessary to ensure we get this right and deliver a new and fair formula on time, as agreed.

This important work—on the funding formula and on increased business rates retention—reboots our system of local government, creating the space for communities to re-imagine what they can do and can be in the 21st century, and helps to renew the bonds with communities. This is of the utmost importance as we strive to ensure every part of our society and country benefits from a modern, outward-looking Britain after Brexit. No one is better placed to deliver on that than local authorities. That is why last week I released £56.5 million, to be used across this year and next, to help councils to prepare for EU exit, and it is why we are backing them to deliver every day through this settlement and the extra funding announced in the Budget. In doing so, we are delivering on what they have asked for: a real-terms increase in spending in 2019-20; support for the vulnerable; a boost for housing, with the removal of the Government cap on how much councils can borrow to build, for quality public services and local economic growth; and help for our high streets. The Labour party may turn its face against this, but it is no less than our councils and communities deserve. I commend the settlement to the House.

Local Government Finance

James Brokenshire Excerpts

Tuesday 29th January 2019 Written Statements

[The Secretary of State for Housing, Communities and Local Government (James Brokenshire)]

Today I laid before the House, the “Report on Local Government Finance (England) 2019-20”, the “Council Tax referendum principles report 2019-20” and “Council Tax alternative notional amounts report 2018-2019”, which represent the annual local government finance settlement for local authorities in England.

I would like to thank all colleagues in the House, council leaders and officers who contributed to the consultation after the provisional settlement was published on 13 December.

My Ministers and I have engaged extensively with the sector, including offering a teleconference to all local authorities, and holding meetings with representative groups, including the Local Government Association, and with councils and MPs. Representations from around 170 organisations or individuals have been carefully considered before finalising the settlement.

This settlement is the final year of the four-year offer which was accepted by 97% of councils in return for publishing efficiency plans. This settlement comprises a broad package of measures and confirms that core spending power is forecast to increase from £45.1 billion in 2018-19 to £46.4 billion in 2019-20, a cash-increase of 2.8% and a real-terms increase in resources available to local authorities.

Yesterday, I released £56.5 million across 2018-19 and 2019-20 to help councils prepare for EU exit.

Adult and children’s social care

The Government have listened and responded to the pressures local authorities are facing and announced at autumn Budget in October 2018 that we will be providing additional resources across 2018-19 and 2019-20 to support social care. This funding includes £240 million in both 2018-19 and 2019-20 to support adult social care services to reduce pressures on the NHS, and an additional £410 million social care support grant for local authorities to support adult and children’s social care services. Having considered responses to the provisional settlement consultation, I can confirm that this will be distributed according to the existing adult social care relative needs formula.

The additional resources announced at autumn Budget, alongside the adult social care council tax precept and the improved better care fund, mean that councils will have been given access to £10 billion in dedicated funding that can be used for adult social care over the three years from 2017-18 to 2019-20. For 2019-20, local authorities will have access to £4.3 billion in dedicated resources for adult social care, including £1.8 billion in improved better care fund grant.

Business rates growth, and the distribution of funds within the levy account



In addition, every authority in England also stands to benefit from increased growth in business rates income, which has generated a surplus in the business rates levy account in 2018-19. I can confirm that £180 million will be returned to the sector and distributed based on each local authority’s 2013-14 settlement funding assessment.

This highlights the continued success of the business rates retention system, from which local authorities estimate they will gain an additional £2.4 billion in retained business rates growth in 2018-19 on top of settlement core funding.

Business rates retention pilots

As we move towards our aim of devolving additional grants to increase business rates retention to 75% from 2020-21, I will continue to test increased business rates retention with a range of local authorities across a wide geographical spread.

At the provisional settlement I confirmed that 15 new pilots will get under way in 2019-20 in Berkshire, Buckinghamshire, East Sussex, Hertfordshire, Lancashire, Leicester and Leicestershire, Norfolk, North and West Yorkshire, North of Tyne, Northamptonshire, Solent authorities, Somerset, Staffordshire and Stoke-on-Trent, West Sussex and Worcestershire. I will also be piloting 75% business rates retention in London and continuing ongoing pilots in five devolution deal areas.

New homes bonus

Local authorities are instrumental in ensuring the building of homes this country needs. As well as providing extra resources for social care, rewarding local authorities for economic growth and testing elements of future reform, I am keen to provide as much continuity and certainty to the sector as possible. As a result, I can confirm that the payments threshold for new homes bonus will be retained at 0.4%. To keep the baseline at 0.4%, I am investing an additional £18 million. The total budget for the bonus this year is therefore £918 million.

The consultation illustrated that the sector wants certainty on the future of the new homes bonus after next year. The Government remain fully committed to incentivising housing growth and will consult widely with local authorities on how best to reward housing delivery effectively after 2019-20.

Rural funding

The 2019-20 settlement confirms that the rural services delivery grant will continue to be £81 million in 2019-20, maintaining the highest ever levels of funding provided in 2018-19. This has been welcomed by rural local authorities from particularly sparse communities. Our review of local authorities’ relative needs and resources will consider the specific challenges faced in all geographic areas, including rural areas, to inform the final distribution formula.

Negative RSG

Having listened to representations since the provisional settlement, this settlement also confirms that the Government will directly eliminate the £152.9 million negative revenue support grant (RSG) that occurs in 2019-20 using foregone business rates.

Negative RSG is a direct consequence of the distribution methodology adopted for the 2016-17 settlement, whereby for less grant dependent authorities the required reduction in core funding exceeded their available RSG.

The Government’s decision will prevent any local authority from being subject to a downward adjustment to their business rates tariffs and top-ups that could act as a disincentive for growth, and I believe this is the most straightforward and most cost-effective means of dealing with this issue.

Council tax referendum principles

Finally, I can confirm that in 2019-20 local authorities, with the exception of police and crime commissioners, will retain the same flexibilities to increase council tax as in 2018-19, with a core council tax referendum principle of up to 3%. I have agreed with the Home Secretary that the referendum limits for police and crime commissioners will be set at £24 to address changing demands on police forces.

I have also decided to provide Northamptonshire County Council with an additional 2% council tax flexibility, to assist with the improvements to council governance and services after their serious issues. Use of the flexibility will ultimately be a matter for the authority’s cabinet and full council.

During the consultation, many local authorities called for referendum limits to be removed. However, I believe the proposed limits allow local authorities to retain the flexibility to raise additional resources locally to address local needs, whilst protecting households from excessive increases in council tax, in line with the Government’s manifesto pledge.

Future of local government finance

A strong theme during the consultation was calls for certainty on the future of local government finance. To meet the challenges of the future, we have published two consultations on future reform of the business rates retention system and on the assessment of local authorities’ relative needs and resources. These consultations close on 21 February.

Alongside the 2016-17 local government finance system, the Government announced a review to develop a more up-to-date and responsive distribution methodology for the sector. In December, I announced a new consultation, seeking views on the future assessment of relative needs and resources, and on principles for transitioning to new funding arrangements in 2020-21.

Alongside the new funding methodology, in 2020-21 we will also be implementing the latest phase of our business rates retention programme that gives local councils the levers and incentives they need to grow their local economies. The consultation seeks views on how the business rates system can be reformed to provide a strong growth incentive; strike a desirable balance between risk and reward; and reduce complexity and disproportionate volatility in local authority income where possible.

Conclusion

This settlement recognises the pressures that councils face in meeting growing demand for services and rewards their impressive efforts to drive efficiencies and help rebuild our economy.

This settlement answers calls for additional funding in 2019-20, and it paves the way for a more self-sufficient and reinvigorated system of local government.

[HCWS1282]

Oral Answers to Questions

James Brokenshire Excerpts

Monday 28th January 2019 Commons Chamber

[Anna McMorrin (Cardiff North) (Lab)]

16. What steps his Department is taking to reduce the death rate among homeless people.

[The Secretary of State for Housing, Communities and Local Government (James Brokenshire)]

Every death of someone who is homeless is one too many. That is why we are determined to end rough sleeping altogether. We have committed £100 million to the rough sleeping strategy, and we are spending over £1.2 billion to prevent and reduce homelessness.

[Preet Kaur Gill]

Official figures released by Office for National Statistics just before Christmas shockingly revealed that 597 people died homeless in England and Wales in 2017—an increase of 24% over the last five years. With further cold weather expected, will the Secretary of State back Labour’s £100 million-a-year plan to make cold weather emergency accommodation available for every rough sleeper in every area?

[James Brokenshire]

As I said before Christmas, these figures are hugely shocking. As I have already indicated, one death is one too many. That is why we are committed to taking action across the board; I pointed to the £100 million rough sleeping strategy. At times like this when we have colder weather, we have also allocated an extra £5 million over and above some of our additional work with short-term capacity to support councils to ensure that we are actually giving the help that is needed to some of the most vulnerable in our society.

[Rosie Duffield]

This week I spoke to the Hepatitis C Trust and my local homeless charity, Porchlight, who highlighted rough sleepers as a significantly vulnerable group in terms of alcohol and drug dependency. What steps are the Secretary of State and his Department taking to help homeless people to access mental health and addiction services?

[James Brokenshire]

The hon. Lady is right to highlight the issues of mental health and addiction, with a much higher proportion of people who are rough sleeping having those particular needs. That is why in the NHS long-term plan there was the commitment for an extra £30 million designed specifically for health support for rough sleepers, because sometimes access can be really difficult. We are determined to ensure that that type of support is able to be provided to rough sleepers.

[Anna McMorrin]

We know that homelessness is getting worse. According to Shelter, 36 new people become homeless every day. One way to address this is to make more social housing available. To do that, England should be suspending the right to buy as we have already done in Wales. Does the Secretary of State agree?

[James Brokenshire]

I do agree that we require more social housing. That is why we have our affordable housing programme. We have also already taken off the restrictions on councils in England to enable them to borrow to build a new generation of council homes. [Interruption.] I would just point out to Opposition Members, with regard to some of their comments, that this Government have built more council houses in their time than in 13 years of the last Labour Government. But we know there is more to do and we are committed to doing it.

[Mr Mark Prisk (Hertford and Stortford) (Con)]

Homelessness is rising, and that is why we need action to stop it reaching the peak levels that we saw under the last Labour Government. What progress is being made to ensure that all councils—not some, but all councils —are taking the preventive approach envisaged in the Homelessness Reduction Act 2017?

[James Brokenshire]

I agree with my hon. Friend about the Homeless Reduction Act—a really ground-breaking piece of legislation very much emphasising a preventive agenda to prevent people from becoming homeless at all. Local authorities have received an additional £72.7 million to implement the Act, and the homelessness advice and support team has been providing support. But we need to ensure that more is done and we will certainly be reviewing the implementation of the Act by March next year.

[James Gray (North Wiltshire) (Con)]

It is often alleged, perhaps anecdotally, that a disproportionate number of rough sleepers are people with a military background, perhaps suffering from drug or drink abuse or from post-traumatic stress disorder. Does the Department have any statistical method for checking whether that allegation is correct? If so, there would be things that could be done with the armed services as well as through the Department.

[James Brokenshire]

I can assure my hon. Friend that we are working with the Ministry of Defence on support that can be provided to veterans who need our help and backing because they have ended up, for whatever reason, on the street. He is right to say that we need better data, and that is what we seek to achieve.

[Mr Philip Hollobone (Kettering) (Con)]

Of the 600 homeless people who died last year, 85% were men, one third died of drug overdoses and 10% died from alcohol poisoning. Will the Secretary of State ensure that those groups and factors are specifically prioritised in order to tackle this issue?

[James Brokenshire]

I am pleased to say that our rough sleeping strategy is intended to give that prioritisation, through work not only by my Department but across Whitehall. My hon. Friend is right about that need, and that is what we are determined to provide through the strategy.

[Wera Hobhouse (Bath) (LD)]

Centrepoint estimates that local funding for Bath and North East Somerset Council would need to double to deliver on new duties for homeless young people under the Homelessness Reduction Act. Can the Secretary of State confirm whether he will bring forward proposals to ensure that post 2020 Homelessness Reduction Act funding is based on the level of local demand for homelessness support?

[James Brokenshire]

As I have indicated, we will conduct a review of the implementation of the Homelessness Reduction Act and look at evidence about local authorities’ pressures and needs. I want to ensure that the Act is implemented well and that we are preventing people from becoming homeless.

[Andrew Bridgen (North West Leicestershire) (Con)]

To deal with homelessness, we need to deal with the housing shortage. Will my right hon. Friend join me in applauding the work of North West Leicestershire District Council, which has overseen the construction of more than 1,000 new homes in the last 12 months, including the first council houses to be built for more than 30 years? Does he think it is a coincidence that we again recorded no rough sleepers in the district over the last 12 months?

[James Brokenshire]

I commend my hon. Friend and his council for the work they are doing to build the homes that our country needs. Of course it is about the supply of affordable and social housing, which is why we are taking steps across the board to get people building.

[John Healey (Wentworth and Dearne) (Lab)]

Last year, nearly 600 people died homeless in this country. The Secretary of State was right to admit, in response to my hon. Friend the Member for Birmingham, Edgbaston (Preet Kaur Gill), that this is truly shocking. In a country as decent and well off as ours, this shames us all. We cannot stop homeless people dying if we do not grasp the reasons why it is getting worse, so why does the Secretary of State think that the number has risen in the last five years?

[James Brokenshire]

I share the right hon. Gentleman’s understandable and rightful concern about the number who were shown to have died and the increase in rough sleeping. I have certainly not hidden from that or from the challenges and responsibilities that we have as a Government to look at the complex issues that lie behind this. We also need to look at what we can do in terms of other issues, such as social policy, where changes have been made, and to look at the evidence, to ensure that we are making a difference and eradicating rough sleeping, preventing people from becoming homeless and ensuring that the most vulnerable are well supported.

[John Healey]

The Secretary of State is a decent man, but that was an answer of sheer irrelevance. People are dying on the streets, and the Government are ducking the hard truth that their decisions on hostel funding, on housing benefit, on social housing investment and on protections for private renters are the root causes of the homelessness crisis. With the first widespread winter snow forecast this week, there are still areas of this country where no extra emergency accommodation will be available. Will the Secretary of State think again? Will he save lives this winter and make Labour’s plan the country’s national plan, with £100 million for extra emergency accommodation for every rough sleeper in every area as the temperatures are set to hit zero?

[James Brokenshire]

I take the issue of rough sleeping, ensuring that lives are saved and that steps can be taken to provide further accommodation and support, extremely seriously. It is one of my priorities. It is why the rough sleeping strategy looks not only at accommodation, which of course is important, and we have taken steps through our rough sleeping initiative, with additional accommodation and additional support workers out there as a consequence, but at issues of health, addiction and mental health. That is why I am determined to make that difference; and our rough sleeping strategy will make that difference and will make rough sleeping a thing of the past.

[Stuart C. McDonald (Cumbernauld, Kilsyth and Kirkintilloch East) (SNP)]

2. What recent discussions he has had with his counterparts in the devolved Administrations on the UK shared prosperity fund.

[The Secretary of State for Housing, Communities and Local Government (James Brokenshire)]

UK Government Ministers meet the devolved Administrations regularly to discuss EU exit matters, and the UK shared prosperity fund has been discussed several times in those conversations. Discussions have also been held by officials with their counterparts in the devolved Administrations and key external stakeholders.

[Stuart C. McDonald]

On 15 November, we were promised details of the replacement for EU structural funds, but more than two months on, groups across the country still have no idea what funding will be available to them after next year. Will the Secretary of State at least assure the House that the Government on this occasion will respect the devolution settlement, and that the Scottish Government’s role in delivering the structural funds will not be subject to a power grab?

[James Brokenshire]

The Government will of course respect the devolution settlements in Scotland, Wales and Northern Ireland, and we will engage with the devolved Administrations to ensure the fund works for all places across the UK. The hon. Gentleman will be aware of the guarantee that has already been given for structural funds through the 2014 to 2020 allocations, and we will certainly continue to discuss those issues with the devolved Administrations and others.

[Paul Masterton (East Renfrewshire) (Con)]

It is incredibly important that the UK Government do not confine their engagement in Scotland, Wales and Northern Ireland to the devolved Administrations. Will my right hon. Friend reassure me that, in developing the UK shared prosperity fund, they will engage fully with businesses and third sector organisations in those three nations?

[James Brokenshire]

We are intending to move forward with the consultation on the UK shared prosperity fund, which will allow everyone to be able to participate—obviously with the devolved Administrations, but with other stakeholders too, as I have indicated—to ensure that this fund is well structured, delivers on the new arrangements for our priorities as the UK as we leave the EU and ensures that those funds are well used.

[Alison Thewliss (Glasgow Central) (SNP)]

Has the Secretary of State taken cognisance of the recommendation of the Joseph Rowntree Foundation that the UK Government should at the very least match the £2.4 billion a year that communities across these islands currently receive as a result of EU structural funds?

[James Brokenshire]

We will look very carefully at the representations we receive. Obviously, the UK shared prosperity fund is designed to tackle inequalities between communities by raising productivity following our departure from the European Union, harnessing those opportunities and making sure that we have a new fund—according to our own priorities—that is easier to administer and therefore better able to deliver.

[Alison Thewliss]

I thank the Secretary of State for that answer. For the period 2014 to 2020, Scotland received €476 million from the European regional development fund and €465 million from the European social fund. We are losing this because Scotland is being dragged out of the EU against our will. Will he commit today to matching this at the very least, and will he devolve the shared prosperity fund in full to the Scottish Government?

[James Brokenshire]

Obviously, we will consult widely on the UK shared prosperity fund. We still have the spending review to be conducted later this year, but we are determined that, as we leave the European Union, we will have these new funding arrangements in place to deliver for all of our United Kingdom, to raise the sense of opportunity and prosperity, and to make a success.

[Robert Courts (Witney) (Con)]

3. What steps his Department is taking to help young people get on the housing ladder.

[The Secretary of State for Housing, Communities and Local Government (James Brokenshire)]

Since 2010, over 500,000 people have been helped into home ownership through Government-backed schemes, including Help to Buy and right to buy. Our recent evaluation of the Help to Buy equity loan scheme found that 58% of people using the scheme were under 35 years old.

[Robert Courts]

As well as challenges, the Oxfordshire Cotswolds garden village provides a real opportunity for us to have the affordable starter homes that for so long have been lacking in places such as West Oxfordshire. What are Ministers doing to provide district councils such as mine with support to provide the housing mix that our area needs?

[James Brokenshire]

I warmly welcome the plans for the homes in the Oxfordshire Cotswolds garden village. My hon. Friend asks about supporting local authorities, and I would say to him that we have abolished the housing revenue account borrowing cap. That, alongside the £9 billion affordable homes programme and the revised national planning policy framework, empowers local authorities to deliver the right mix of homes for their area.

[Janet Daby (Lewisham East) (Lab)]

When young people find themselves homeless, they are often sofa surfing and living in risky accommodation because of the lack of council homes. Living in a rented room is more affordable than renting a private flat. Will the Secretary of State say what steps the Government are therefore taking to protect vulnerable young people seeking housing accommodation in houses in multiple occupation?

[James Brokenshire]

As the hon. Lady will know, we have raised standards on fitness for human habitation in legislation that was supported across the board, and improved the support to ensure that we have a stronger, more positive private rental sector market. Conversations are continuing, and I recognise the point that she makes about raising standards and ensuring that the sense of opportunity is firmly in place.

[Scott Mann (North Cornwall) (Con)]

For many young people, the biggest obstacle to getting into the housing market is the value of the land. What discussions will the Secretary of State have with the Department for Environment, Food and Rural Affairs about grading agricultural land to see if we can utilise some of the less good land for house building? [Interruption.]

[James Brokenshire]

Yes, firmly in Cornwall. The national planning policy framework is about empowering some of those local decisions and choices, in Cornwall and elsewhere. I am continuing to discuss how we can have that additionality—that positive benefit that we can unlock from our national environment through our planning work—with colleagues at DEFRA and others across Government.

[Sir Vince Cable (Twickenham) (LD)]

The Government’s Help to Buy scheme has undoubtedly helped many families on to the housing ladder, but it has also driven many other families off it by pushing up the market price. How do the Government respond to research that suggests that the net impact is at best neutral and probably negative?

[James Brokenshire]

No, through our schemes more than half a million households have been helped into home ownership through Help to Buy and right to buy. The number of first-time buyers rose 82% between 2010 and 2017, and we have seen the first sustained rise in home ownership among 25 to 34-year-olds in 30 years. That is a positive step forward, although we know there is more to do. It is through initiatives such as Help to Buy that we are making that difference.

[Mr Speaker]

The hon. Member for Thirsk and Malton (Kevin Hollinrake) knows all about houses as a whizz kid estate agent. Let us hear from the fellow.

[Kevin Hollinrake (Thirsk and Malton) (Con)]

If you are ever thinking of moving, Mr Speaker, do let me know.

Councils across North Yorkshire, such as Richmondshire and Hambleton, are delivering more affordable housing to purchase through the category of discount market sale. What plans does the Secretary of State have to roll this policy out nationally?

[James Brokenshire]

I congratulate my hon. Friend on the veritable skills he clearly has in so many different areas, and on championing this particular course of action. It is right to recognise that we have delivered more affordable homes in the last eight years than there were in the last eight years of the last Labour Government. It is the sort of schemes that he identifies that are helping to make that difference, and we are examining carefully how such initiatives can be rolled forward.

[Melanie Onn (Great Grimsby) (Lab)]

The average mortgage for today’s 27-year-old on the Government’s living wage is more than half of their pay packet, but the Government are still allowing “affordable” to be defined as up to £450,000. Why do the Government not take a leaf out of Labour’s book and support our first-buy homes for which mortgages are no more than a third of average income?

[James Brokenshire]

I will take no lectures from the Labour party, given that when it was in government it saw house building fall to levels not seen since the 1920s. We are taking various steps to see more homes built and to ensure that people can get on the ladder to fulfil their dreams. That is something that we as a Government are committed to doing.

[Henry Smith (Crawley) (Con)]

4. What steps his Department is taking to ensure an equitable distribution of funding to local authorities.

--- Later in debate ---

[Lyn Brown (West Ham) (Lab)]

T1. If he will make a statement on his departmental responsibilities.

[The Secretary of State for Housing, Communities and Local Government (James Brokenshire)]

Local councils will play an important role in supporting communities as we leave the EU, and I am committed to working with them to ensure that they are prepared to respond to any Brexit scenarios. I can therefore confirm that local authorities will receive an extra £56.5 million to help them with their Brexit preparations and to help deliver essential services and keep residents well informed. We also remain in close contact with local councils through our rough sleeping initiative to support some of the most vulnerable in our society and help them to get the support they need.

Yesterday, Members across the House remembered Holocaust Memorial Day. I had the privilege to attend the incredibly moving national commemoration of those who lost their lives in the holocaust and subsequent genocides. Those dark events of the past call on us all to confront racism, bigotry and hatred wherever it may occur and to stand up for tolerance, reconciliation and stronger communities.

[Lyn Brown]

Councils in deprived areas such as mine are desperately scrambling to find the funds to meet their needs while facing almost double the spending cuts of the least-deprived area. The Minister says that this is about population, but London is home to 16% of the population and has suffered 30% of the cuts. This Government still favour wealthy areas over poor ones. Is that because they are mostly Tory areas?

[James Brokenshire]

The hon. Lady should look at the settlement that we have provided, which involves an extra £1 billion for local government across the board. Indeed, it represents a real-terms increase that is intended to make a real difference to how we support councils to meet pressures and challenges.

[Robert Courts (Witney) (Con)]

T2. Proposals to convert empty high street shops into housing have raised concerns in rural areas such as West Oxfordshire that there may be a perverse incentive to close viable shops in order to realise the greater value of housing. Will Ministers agree to meet me and my district council to ensure that the policy is tailored for both rural and metropolitan areas?

--- Later in debate ---

[Bill Grant (Ayr, Carrick and Cumnock) (Con)]

What steps is the Department taking to help to ensure fire safety in buildings, particularly those with a residential sleeping risk?

[James Brokenshire]

I note my hon. Friend’s experience of this, and we are working carefully across the board to implement the Hackitt review to ensure that building safety standards are raised. Indeed, we are currently consulting on approved document B. We are looking at continuing experience and, if there is experience from Scotland, we will certainly reflect on that, too.

[Luciana Berger (Liverpool, Wavertree) (Lab/Co-op)]

Today’s Centre for Cities report is absolutely devastating, highlighting that cuts have fallen hardest on deprived communities in the north of England—including Liverpool—that are enduring the highest poverty rates. It is very disappointing to see the Minister grimacing and laughing, because this is a very serious matter for the communities we represent. Does he agree with the conclusion of the Centre for Cities that the Treasury review of public spending, which is due for the autumn, must find extra funding for all councils if authorities are to remain sustainable?

--- Later in debate ---

[Andy Slaughter (Hammersmith) (Lab)]

We had two debates in the Chamber last week on dangerous cladding, which shows the incompleteness of the Government’s response. Can we have a comprehensive strategy from the Government this year that deals with all types of building, all types of cladding and all types of landlord?

[James Brokenshire]

We provide regular updates that specify the work taking place through the remediation programme to deal with this very serious issue of combustible cladding. The hon. Gentleman will well know the work that is in place, both in the public sector and in the private sector, but I underline to him the urgency I attach to this and how I am not keeping anything out of consideration in making sure that people are safe and feel safe.

[Dr Caroline Johnson (Sleaford and North Hykeham) (Con)]

I understand the desire to build a lot of new homes, but I share the concern of many of my constituents that this could lead to large housing developments of identikit houses. What steps is my right hon. Friend taking to enable small builders to bid for smaller areas of development? That would support our excellent small builders and encourage a more beautiful built environment.

[James Brokenshire]

I recognise and appreciate my hon. Friend’s championing of good design and the sense of place and space, which is something the Building Better, Building Beautiful Commission firmly intends to achieve. We have specific funding to support small builders so that we can have a strong, diverse economy in housing.

[Emma Reynolds (Wolverhampton North East) (Lab)]

The Local Government Association chair, Lord Porter, recently said:

“We are unanimous that deprivation should be in”

the foundation formula. Why does the Secretary of State disagree with his Conservative colleague?

[James Brokenshire]

As the Under-Secretary of State for Housing, Communities and Local Government, my hon. Friend the Member for Richmond (Yorks) (Rishi Sunak) said, we are consulting on the fair funding review in setting out that new arrangement for local government. As he has already set out, that is a means of ensuring that spending is felt effectively and fairly across the country and there are different ways of doing that.

[Andrea Jenkyns (Morley and Outwood) (Con)]

On council tax and rent to be paid during the migration period of universal credit, will the Minister confirm that local authorities will be asked to take into account these exceptional circumstances and provide leeway when tenants fall behind on payments?

[James Brokenshire]

We are working closely with colleagues at the Department for Work and Pensions on the implementation of universal credit, issues relating to housing and the connection that local government has on the frontline in the delivery of these issues. We are therefore ensuring that this will be done effectively, as my hon. Friend appropriately says.

[Stephanie Peacock (Barnsley East) (Lab)]

Today, it has been revealed that Barnsley is the local authority hardest hit by Government funding cuts. Can the Minister really justify targeting cuts on the poorest in society?

[Priti Patel (Witham) (Con)]

Residents across my constituency and beyond are extremely concerned about the Rivenhall incinerator development, which was originally approved by the last Labour Government. With revised planning applications being considered, will the Secretary of State listen to my constituents and act by calling this application in?

[James Brokenshire]

I note the way in which my right hon. Friend is championing her constituents in her customary powerful and passionate way. She will understand, on the issue of calling in, that this is quasi-judicial and I am therefore unable to comment. However, I note the way in which she has championed the cause.

[Mr Speaker]

The fact that the hon. Member for Colne Valley (Thelma Walker) served with distinction as a headteacher and the fact that she has been waiting so patiently are, in my judgment, not unrelated.

[James Brokenshire]

I recognise the hon. Lady’s own experience in raising that issue, some of the background, some of the challenges and some of the issues that may have led to someone falling through the gap and ending up on the street. We are determined to get better data and better analysis, so that we can provide more targeted help. That is precisely what we are committed to doing through the rough sleeping strategy.

[Martin Vickers (Cleethorpes) (Con)]

Residents of Goxhill in my constituency are mindful that the village needs to expand and that new homes are needed, but does the Minister agree that local authorities and planning inspectors need to be mindful of the fact that there must be a limit on new homes in villages?

[Liam Byrne (Birmingham, Hodge Hill) (Lab)]

The Secretary of State will know that the battering of Birmingham next year will be all the more severe for his decision to rule out access to the council’s reserves. Birmingham’s MPs have written to him to ask for a meeting. When he finally wrote back, he refused to meet. May I say to him that he can take these decisions but it is incumbent on him to front them up to Members of this House?

[James Brokenshire]

I say to the right hon. Gentleman that I am happy to meet him and his colleagues because, obviously, I am focused on ensuring sustainability and stability in the finances in Birmingham. We took that decision carefully and in a considered way, but I recognise the points he makes and I am happy to meet him.

Local Government Funding: Brexit Preparation

James Brokenshire Excerpts

Monday 28th January 2019 Written Statements

[The Secretary of State for Housing, Communities and Local Government (James Brokenshire)]

Local government will play a critical role in making a success of Brexit at the local level. My Department is committed to ensuring councils have the support and the funding they need to prepare for an orderly exit from the EU and do appropriate contingency planning.

Today I am announcing an additional £56.5 million to help councils carry out their preparations.

Councils will receive £20 million this financial year as well as £20 million to spend in the next financial year to fund additional planning and capacity. Across the two years, all district councils will receive £35,000, all county councils will receive £175,000, all unitaries will receive £210,000 and all combined authorities will receive £182,000, and £1.5 million will be allocated in 2018-19 only to local authorities facing immediate impacts from local ports, with details of the allocation and distribution of that funding to be announced shortly.

I am retaining £10 million for allocation during 2019-20 to respond to specific local costs that may only become evident in the months after we exit the EU.

Finally, £5 million will be split between teams in my Department and the local government sector for specific purposes such as strengthening resilience preparations and supporting communities.

This funding will help councils to adapt to changes caused by Brexit, while still protecting vital local services.

This will not be the only resources councils receive to fund Brexit costs. The Government have been clear that Departments will assess and, if appropriate, fund any potential new burdens arising on councils as part of EU exit work they are undertaking.

As for councils’ overall funding, the provisional finance settlement which I announced before Christmas provides extra funding, with the confirmation that core spending power is forecast to increase from £45.1 billion in 2018-19 to £46.4 billion in 2019-20. This amounts to a cash increase of 2.8% and a real-terms increase in resources available to local authorities. I will be returning to this House shortly, following consultation, to announce the final settlement.

Housing Redress

James Brokenshire Excerpts

Thursday 24th January 2019 Written Statements

[The Secretary of State for Housing, Communities and Local Government (James Brokenshire)]

Our White Paper “Fixing our broken housing market”, published February 2017, highlighted the need to make the housing market work for everyone, and set out a comprehensive plan to achieve this.

We have been clear that we want to make the housing market fairer and more transparent for tenants, leaseholders and homeowners. This includes making sure consumers have straightforward routes for getting problems swiftly put right when things go wrong with their homes.

That is why my Department consulted earlier this year on options for strengthening consumer redress in housing, including options for streamlining housing redress services to simplify access for consumers.

The consultation sought views on the existing provision of redress for housing consumers and considered how we could improve services, strengthening access where there may be gaps in existing provision, and how future services could be configured to serve consumers better.

Today I am pleased to publish my response to this consultation. The response sets out proposals for a programme of reform to strengthen redress for housing consumers.

First, I am clear that people should be able to access help in resolving housing complaints without needing to apply to the court system. We will bring forward legislation to require all private rented sector landlords, regardless of whether they employ an agent for full management services, to be a member of a redress scheme, including all residential park home site owners and private providers of purpose-built student accommodation. We will also introduce legislation when parliamentary time allows to require all freeholders of leasehold properties, regardless of whether they employ a managing agent, to be a member of a redress scheme. Finally, we propose to bring forward legislation to create a similar requirement on all developers of new build homes to belong to a new homes ombudsman and will consult on the detail of that legislation in due course.

Secondly, there is a need to simplify access to existing redress schemes. Responses to the consultation were clear that we need to reduce confusion for customers in the face of a multiplicity of schemes, while maintaining the specialisms needed to handle complaints within specific tenures.

I therefore propose the establishment of a new housing complaints resolution service, a single access portal through which consumers will be able to seek help to resolve complaints and access redress when they have not been able to resolve disputes with their landlord, property agent or developer.

I intend to work closely with ombudsmen and redress schemes to deliver this in partnership. My ambition is for this service to be available for social housing residents, private renters, leaseholders and buyers of new build homes. People must be confident in their options when things go wrong with their homes, and we will commit to raising consumer awareness of how to resolve complaints once the new service is operational.

We will establish a redress reform working group with ombudsmen and redress schemes to help drive the programme of reform, including the establishment of the resolution service. We want to work with this group to undertake a comprehensive audit of existing standards for handling complaints and explore how they could be improved through existing and new voluntary guidance on a sector by sector basis which, where appropriate, will be underpinned through legislation or regulation.

It is my ambition that this will develop into a comprehensive code of practice on complaint handling for the whole housing sector. Through this we can ensure that there are clear expectations for accessibility, transparency, timeliness and sanctions in terms of handling complaints. Work to improve complaints handling in the social housing sector will initially be carried forward separately, given our commitments in the social housing Green Paper to address the specific issues facing social housing residents.

The redress reform working group will also help us work to understand both how to deal with complex and difficult cases, which may not fit easily within the remit of redress schemes, and how to better enforce decisions. We will keep open the option of tabling further legislation if necessary, to make this as effective as possible.

Finally, in October, we announced proposals to ensure that a new homes ombudsman is established to protect the interests of homebuyers and hold developers to account when things go wrong. We intend to bring forward legislation to require developers of new build homes to belong to a new homes ombudsman and we will consult on the detail of the proposed legislation.

Cumulatively these reforms will help ensure that nobody will be left without somewhere to go when something goes wrong with their housing, and that they will have free, accessible and independent routes to have their case resolved in a timely way.

The policy proposals primarily relate to England. The UK Government will be discussing these issues with devolved Administrations on those matters where proposals have scope outside England.

Copies of the consultation response will be placed in the Library of the House and are available on the Government’s website at:

https://www.gov.uk/government/consultations/strengthening-consumer-redress-in-housing.

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