Asked by: Kim Johnson (Labour - Liverpool Riverside)
Question to the Ministry of Housing, Communities and Local Government:
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.
Asked by: Kim Johnson (Labour - Liverpool Riverside)
Question to the Ministry of Housing, Communities and Local Government:
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 - Leader of HM Official Opposition
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.
Asked by: Kim Johnson (Labour - Liverpool Riverside)
Question to the Ministry of Housing, Communities and Local Government:
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 - Leader of HM Official Opposition
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.
Asked by: Kim Johnson (Labour - Liverpool Riverside)
Question to the Ministry of Housing, Communities and Local Government:
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 - Leader of HM Official Opposition
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.
Asked by: Kim Johnson (Labour - Liverpool Riverside)
Question to the Ministry of Housing, Communities and Local Government:
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 - Leader of HM Official Opposition
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.
Asked by: Kim Johnson (Labour - Liverpool Riverside)
Question to the Ministry of Housing, Communities and Local Government:
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 - Leader of HM Official Opposition
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.
Asked by: Kim Johnson (Labour - Liverpool Riverside)
Question to the Ministry of Housing, Communities and Local Government:
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 - Leader of HM Official Opposition
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.