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Written Question
Rents
Friday 3rd February 2023

Asked by: Kim Johnson (Labour - Liverpool, Riverside)

Question to the Department for Levelling Up, Housing & Communities:

To ask the Secretary of State for Levelling Up, Housing and Communities, whether his Department is taking steps to support tenants with rising rents in the context of the cost-of-living crisis; and if he will consider the potential merits of introducing a cap on shared ownership rent increases in line with the forthcoming cap on social housing rent increases.

Answered by Felicity Buchan - Parliamentary Under Secretary of State (Department for Levelling Up, Housing and Communities)

The Government understands the pressures people are facing with the cost of living and that paying rent is likely to be a tenant's biggest monthly expense. Individuals who need help towards their rental payments may be eligible for a range of support through the welfare system, in addition to the Government’s support for energy bills.

In the social rented sector, the Government recently decided to cap rent increases at up to 7% for 2023-24. The Government is also pleased to note that housing associations responsible for over 90% of that sector's Shared Ownership homes have - through the National Housing Federation - voluntarily committed to limit annual Shared Ownership rent increases in 2023-24 to no more than 7%. The department is encouraging local authorities and for-profit providers to make the same voluntary commitment.


Written Question
Leasehold: Ground Rent
Friday 17th June 2022

Asked by: Kim Johnson (Labour - Liverpool, Riverside)

Question to the Department for Levelling Up, Housing & Communities:

To ask the Secretary of State for Levelling Up, Housing and Communities, whether he plans to introduce the second phase of the Leasehold Reform (Ground Rent) Act 2022 to apply to existing leaseholders.

Answered by Eddie Hughes

The Government is committed to creating a fair and just housing system that works for everyone and to delivering the second phase of our major two-part leasehold reform within this Parliament.

We have already taken action to end unfair practices in the leasehold market, beginning with the Leasehold Reform (Ground Rent) Act 2022 Act, which will come into force on 30 June. The Act makes homeownership fairer and more transparent for thousands of future leaseholders, by preventing landlords under new residential long leases from requiring a leaseholder to pay a financial ground rent.

We understand the difficulties some existing leaseholders face with high and escalating ground rents. Unfair practices have no place in the housing market. This is why we asked the Competition and Markets Authority (CMA) to investigate potential mis-selling of homes and unfair terms in the leasehold sector. The Government has welcomed this action and wants to see homeowners who have been affected obtain the justice and redress they deserve.

The CMA has secured commitments from Aviva, Persimmon, Countryside Properties and Taylor Wimpey to amend their practices, including commitments to remove lease terms that led to doubling ground rents, houses sold as leasehold and to support leaseholders to buy the freehold at the original price quoted. This is a hugely important step and demonstrates our determination to support existing leaseholders affected by egregious ground rents. We urge other developers to follow suit.


Written Question
Local Government Finance
Monday 13th June 2022

Asked by: Kim Johnson (Labour - Liverpool, Riverside)

Question to the Department for Levelling Up, Housing & Communities:

To ask the Secretary of State for Levelling Up, Housing and Communities, if he will make an estimate of the potential gap between local authority funding requirements and budget allocations in (a) 2015, (b) 2016, (c) 2017, (d) 2018, (e) 2019, (f) 2020, (g) 2021 and (h) 2022.

Answered by Kemi Badenoch - President of the Board of Trade

At a national level, local government funding is set through Spending Reviews, and is confirmed each year at the Local Government Finance Settlement. The Department assesses the level of funding required for Ministers’ assessment of the services that people need. When agreeing the Spending Review settlement, the Department considers increases in income and potential spending pressures, including inflation and wage growth, and local income growth.

It is for local authorities to decide on levels of service provision within their areas, operating within the national statutory framework. Authorities have flexibility to vary their income – for example by setting Council Tax levels. Local authorities are required to set a balanced budget each year.

The Local Government Finance Settlement for 2022/23 makes available an additional £3.7 billion to councils in England, including funding for adult social care reform. This is a cash-terms increase in local authority funding for 2022/23 of up to 7.4% compared to last year.

This follows year-on-year increases for local government since Spending Review 2019.


Written Question
Local Government Finance
Monday 13th June 2022

Asked by: Kim Johnson (Labour - Liverpool, Riverside)

Question to the Department for Levelling Up, Housing & Communities:

To ask the Secretary of State for Levelling Up, Housing and Communities, what support his Department is making available to local authorities facing funding shortfalls.

Answered by Kemi Badenoch - President of the Board of Trade

The Spending Review settlement for local government considered a wide range of unit cost pressures, including inflation and public sector pay. The Local Government Finance Settlement makes available £54.1 billion in 2022/23 for local government in England, an increase of up to £3.7 billion on 2021/22. We are providing an additional £1.6 billion of grant funding to councils in each of the next 3 years, from 2022/23 inclusive. This new funding is the largest cash-terms increase in grant funding for 10 years.

The Department continues to work closely with local councils to understand the impact of macro-economic changes.

We stand ready to speak to any council that has concerns about its ability to balance its budgets. We also work closely with CIPFA, who have encouraged local authorities to contact the Department in the first instance to discuss any immediate financial concerns.


Written Question
Local Government Finance
Monday 13th June 2022

Asked by: Kim Johnson (Labour - Liverpool, Riverside)

Question to the Department for Levelling Up, Housing & Communities:

To ask the Secretary of State for Levelling Up, Housing and Communities, what assessment his Department has made of base budget pressures on local authority budgets.

Answered by Kemi Badenoch - President of the Board of Trade

The Spending Review settlement for local government considered a wide range of unit cost pressures, including inflation and public sector pay. The Local Government Finance Settlement makes available £54.1 billion in 2022/23 for local government in England, an increase of up to £3.7 billion on 2021/22. We are providing an additional £1.6 billion of grant funding to councils in each of the next 3 years, from 2022/23 inclusive. This new funding is the largest cash-terms increase in grant funding for 10 years.

The Department continues to work closely with local councils to understand the impact of macro-economic changes.

We stand ready to speak to any council that has concerns about its ability to balance its budgets. We also work closely with CIPFA, who have encouraged local authorities to contact the Department in the first instance to discuss any immediate financial concerns.


Written Question
Local Government Finance: Energy
Monday 13th June 2022

Asked by: Kim Johnson (Labour - Liverpool, Riverside)

Question to the Department for Levelling Up, Housing & Communities:

To ask the Secretary of State for Levelling Up, Housing and Communities, what assessment his Department has made of the impact of rising energy prices on local authority budgets.

Answered by Kemi Badenoch - President of the Board of Trade

The Spending Review settlement for local government considered a wide range of unit cost pressures, including inflation and public sector pay. The Local Government Finance Settlement makes available £54.1 billion in 2022/23 for local government in England, an increase of up to £3.7 billion on 2021/22. We are providing an additional £1.6 billion of grant funding to councils in each of the next 3 years, from 2022/23 inclusive. This new funding is the largest cash-terms increase in grant funding for 10 years.

The Department continues to work closely with local councils to understand the impact of macro-economic changes.

We stand ready to speak to any council that has concerns about its ability to balance its budgets. We also work closely with CIPFA, who have encouraged local authorities to contact the Department in the first instance to discuss any immediate financial concerns.


Written Question
Local Government Finance: Inflation
Monday 13th June 2022

Asked by: Kim Johnson (Labour - Liverpool, Riverside)

Question to the Department for Levelling Up, Housing & Communities:

To ask the Secretary of State for Levelling Up, Housing and Communities, what assessment his Department has made of the impact of inflation on local authority budgets.

Answered by Kemi Badenoch - President of the Board of Trade

The Spending Review settlement for local government considered a wide range of unit cost pressures, including inflation and public sector pay. The Local Government Finance Settlement makes available £54.1 billion in 2022/23 for local government in England, an increase of up to £3.7 billion on 2021/22. We are providing an additional £1.6 billion of grant funding to councils in each of the next 3 years, from 2022/23 inclusive. This new funding is the largest cash-terms increase in grant funding for 10 years.

The Department continues to work closely with local councils to understand the impact of macro-economic changes.

We stand ready to speak to any council that has concerns about its ability to balance its budgets. We also work closely with CIPFA, who have encouraged local authorities to contact the Department in the first instance to discuss any immediate financial concerns.


Written Question
Local Government Finance
Monday 13th June 2022

Asked by: Kim Johnson (Labour - Liverpool, Riverside)

Question to the Department for Levelling Up, Housing & Communities:

To ask the Secretary of State for Levelling Up, Housing and Communities, whether his Department has plans to review local authority funding.

Answered by Kemi Badenoch - President of the Board of Trade

The Spending Review settlement for local government considered a wide range of unit cost pressures, including inflation and public sector pay. The Local Government Finance Settlement makes available £54.1 billion in 2022/23 for local government in England, an increase of up to £3.7 billion on 2021/22. We are providing an additional £1.6 billion of grant funding to councils in each of the next 3 years, from 2022/23 inclusive. This new funding is the largest cash-terms increase in grant funding for 10 years.

The Department continues to work closely with local councils to understand the impact of macro-economic changes.

We stand ready to speak to any council that has concerns about its ability to balance its budgets. We also work closely with CIPFA, who have encouraged local authorities to contact the Department in the first instance to discuss any immediate financial concerns.


Written Question
Commonhold and Leasehold
Friday 14th January 2022

Asked by: Kim Johnson (Labour - Liverpool, Riverside)

Question to the Department for Levelling Up, Housing & Communities:

To ask the Secretary of State for Levelling Up, Housing and Communities, what funded training the Government is considering to ensure that lay directors of Right to Manage Companies, Residential Management Companies and Commonholds are able to undertake their roles to a suitable standard.

Answered by Eddie Hughes

The Government continues to examine what more can be done to protect and support leaseholders to ensure buildings are managed effectively, including increased provision of training for those who become right to manage company directors. In their 2020 report on the Right to Manage, the Law Commission recommended that free online training covering company law and building management should be made available to RTM company directors and prospective directors. We will respond to the Law Commission's recommendation in due course.


Written Question
Housing First: Finance
Monday 25th October 2021

Asked by: Kim Johnson (Labour - Liverpool, Riverside)

Question to the Department for Levelling Up, Housing & Communities:

To ask the Secretary of State for Levelling Up, Housing and Communities, what discussions he has had with the Chancellor of the Exchequer on using the forthcoming spending review to secure funding to expand Housing First provision to other areas in England.

Answered by Eddie Hughes

This Government is committed to ending rough sleeping as part of its latest Manifesto Commitment, utilising schemes like Housing First. Announcements regarding the Spending Review are imminent, which will set out how Government will continue to tackle homelessness and rough sleeping.