Affordable Homes Programme

Lee Rowley Excerpts

Tuesday 25th April 2023 Westminster Hall

[The Parliamentary Under-Secretary of State for Levelling Up, Housing and Communities (Lee Rowley)]

It is a pleasure to serve under your chairmanship, Mr Hollobone. I thank all hon. and right hon. Members for their contributions and thank the hon. Member for Slough (Mr Dhesi) for instigating the debate. We may have disagreements about the methods by which we ensure that people can enjoy the fruits of home ownership and have a roof over their heads, but I think we would all, collectively, irrespective of what side we are on in this Chamber, agree that it is absolutely vital to have a housing sector that supports those who need it and provides the platform for people to be able to aspire to move into home ownership. That has been the case for the past century, and it has been such a success within this country.

I start by acknowledging the underlining point made by a number of hon. and right hon. Members, which is that there are challenges at the moment, including those that have grown in the immediate term, such as inflation, the cost of construction and materials and labour challenges, which all create issues in ensuring that we can make progress on our shared objectives. If we are truthful, that is also set within the context—I am not seeking to make a particularly political point, as it has developed under successive Governments of all colours over the past 30 or 40 years—of the number of houses that are built in this country and, flowing from that, the number of people who can have access to them, and the number of people who can enjoy home ownership in general. I think we have made progress on that as a Government, but I know there is a keenness to go further in the years ahead.

The Government support ensuring that people have a place to live, a place to thrive, a place to grow and a place to bring up families, which, in many instances, will be through affordable housing and social rent, but we also inherently believe in the importance of home ownership as a moral end in itself, providing the ability for people to make choices, grow capital and pass assets on to their family over their lives. The comments in today’s debate have underscored the need for more homes of all tenures, whether to rent, to buy or to part buy, on the way, hopefully, to fully buying in time.

On the specifics of the affordable homes programme, the whole point of the programme, which has nearly £12 billion of taxpayer subsidy—we are taking money from people that they would otherwise be able to spend themselves—is that we recognise the importance of some of the points made in the debate. Launched in 2020, that nearly £12 billion support—£11.5 billion—represents a significant taxpayer subsidy for affordable housing and a clear commitment to delivering tens of thousands of homes for sale and rent throughout the country.

Social rent has been raised by a number of colleagues, and I will come to their specific points in the moment. We brought social rented homes into the scope of the affordable homes programme in 2018 and we affirmed our commitment to increasing the supply of social rented homes in the levelling-up White Paper, which was published last year, as well as to improving the quality of housing across the board, in both the private and rental sector. I will come on to that point in a moment, when I respond to the hon. Member for Mitcham and Morden (Siobhain McDonagh). We have changed the parameters for the affordable homes programme to support that commitment, which enables further increases in the share of social rental homes that we plan to deliver.

Furthermore, the affordable homes programme is committed to funding a mix of tenures, enabling developers to deliver mixed communities that will ensure that people can buy, part buy and rent where they need to. That is why we have kept a commitment to delivering homes for affordable rent, where rent is typically capped at 80% of the prevailing rate. Yet it is home ownership that we want people truly to benefit from, and we want people to benefit from it as much as is possible. We understand the difference that an increased sense of security can make to all aspects of someone’s life and the lives of their families. That is why home ownership is a fundamental part of the affordable homes programme and why there is a significant element of homes for shared ownership, which can help people staircase up.

[Dame Meg Hillier]

The Minister said some warm words there about the need for social housing. In response to the Public Accounts Committee report, the Government indicated that local authorities would have more say over the mix of tenure in their area. In areas like mine, where the real need is for social rented housing, that requires more Government grant compared with areas where low-cost home ownership is genuinely an option. In Hackney, with the price as it is, home ownership will be very difficult to achieve. Can he flesh out how local authorities can deliver what they know is needed in their area and how Government grant will follow those decisions?

[Lee Rowley]

I am grateful to the hon. Lady for raising that point. She is an assiduous follower of this issue. I know of all the fantastic work that she and her colleagues on the Public Accounts Committee do on this area and elsewhere. I fear I might not be able to give her an absolute answer, but I will try to provide as much information as I can. There is obviously a challenge, broader than the specifics of this debate, about the amount of money that the Government have; that is not particularly newsworthy. If I may make a tiny partisan point: the Labour party, if it ever gets into Government, will have to make more choices than Opposition spokesmen indicate when they respond to such debates. There will always be a challenge around how we prioritise funding, and what the trade-offs are to do that. The commitment from the Government is here, with the £12 billion contribution that has already been indicated for allocation.

When we come forward with further information about the affordable homes programme 2021-26, I hope we will be able to give greater clarity for those authorities that seek a particular mix of housing and to expand the number of affordable homes of whichever tenure. I also hope that some of the changes coming through in the Levelling-up and Regeneration Bill will take effect, although that needs to complete its progress in the other place. We will have to see what the other place does to that Bill, which I hope will give local councils some ability to flex their approach in the area of housing.

[Matthew Pennycook]

Will the Minister give way?

[Lee Rowley]

I want to make progress.

[Matthew Pennycook]

On that specific point?

[Lee Rowley]

Go on then—the hon. Gentleman has convinced me.

[Matthew Pennycook]

The Minister is right that, when it comes to designing an affordable homes programme, choices have to be made and trade-offs confronted, but does it not trouble him that, despite the fact that 50% of AHP funding under the current programme is allocated to low-cost home ownership, his own Department’s figures make it clear that grant funding under the last year of the previous Labour Government still delivered twice the number of low-cost home ownership units than the Government managed last year?

[Lee Rowley]

Before I answer that question, I hope the Chair will allow me a minute or two more than 10 minutes, given that we have a little bit of time, in order to answer these interventions.

[Mr Philip Hollobone (in the Chair)]

Order. It is just a guideline, not a rule. The Minister can speak all the way until 3.57 pm, if he wishes.

[Lee Rowley]

I will not detain colleagues to that extent, but I am grateful for the confirmation that I can continue. The hon. Member for Greenwich and Woolwich (Matthew Pennycook) is keen to make a comparison. The fundamental thing that we are trying to do at the moment is weigh up a series of very challenging economic circumstances, recognising the context of housing supply, which has been a challenge for the entirety of my life. We recognise that we have to make progress for the very reasons that right hon. and hon. Members have outlined over the course of the debate. It is so important to do so, given that housing supply affects and impacts the lives of real people.

Let me comment on individual contributions. The hon. Member for Slough, opening the debate, emphasised the importance of the property-owning democracy, which I wholeheartedly agree with. I hope we can make progress on that and also address some points made by other hon. Members. He also said that there should be greater clarity on the affordable housing programme going forward. Although I am not able to give that in today’s debate, we have said that we will come back in the spring with further clarity about what is happening; there is not a huge amount of spring left, so I hope it will not be too much longer before my housing colleagues in the Department will do so. I anticipate the Department being able to provide further information to the hon. Member and others in the coming weeks.

The hon. Member for Coventry North West (Taiwo Owatemi) raised a number of points about the inherent challenges in the housing market and of trade-off. During my brief tenure as the Housing Minister back in the autumn, we had a debate in this very place about some of the issues, and she spoke then with regard to Coventry specifically. I cannot talk about Coventry individually, but I will put on record, if hon. Members allow me, the progress that has been made in the past 13 years. I realise that many colleagues will not necessarily want to point to that, but it is important for balance that we do.

Two million homes have been built in this country since 2010, and almost 1 million people—over 800,000—have been helped into ownership through schemes such as help to buy. Some 630,000 new affordable homes have been built. Last year, the registered supply of new homes increased over the previous year by approximately 10%, and I believe that the last five years have seen some of the highest rates of property building for 30 years.

A number of colleagues raised home ownership. Crucially, after a pretty linear fall from the mid-2000s under Governments of all parties, home ownership has started to increase again for the first time in a number of years. The increase is incremental—the rate is up from 62.5% in 2016-17 to 64.3% in 2021-22—but it is a movement back in the direction of empowering people to own their own properties and obtain all the consequent benefits.

[Dame Meg Hillier]

The Minister talks about home ownership increasing, but that incremental increase can hardly be seen as a victory. His is the party that introduced right to buy to increase home ownership. I wonder what the percentage is for anyone under the age of 35. Will he acknowledge that the Government have totally failed that generation in this respect?

[Lee Rowley]

The hon. Lady is absolutely right that it is not enough, but the whole point of trying to build more properties and of using programmes such as the affordable housing programme to bridge, where that is necessary, into home ownership through rent and part ownership is to boost those numbers. My point is not that there are no challenges—I acknowledged such challenges at the very top of my speech. It is to try to insert balance, if only into the record: some progress has been made over the last 13 years. A substantial number of properties have been built over that time—for home ownership, for rent and in the affordable sector—and most importantly, after a relatively clear-cut decline under Governments of all parties, the decline seems to have been arrested. There is a long way to go and there is absolutely the need for growth. I want everybody who wants to own their own home to have the opportunity to do so, but I hope that this is at least an indicator that we are moving, to an extent, in the right direction.

I have the greatest respect for the hon. Member for Weaver Vale (Mike Amesbury), and would never dream of reading my phone when he is speaking. I was specifically texting—this is both the benefit and the tyranny of having mobile devices in a debate—about the point he had raised. I regret to tell him that I have been unable to get an answer in the 40 minutes since he spoke, but I will ask the Department to write to him. I will be honest with him: I do not know whether the Department has purview here, and I do not know any of the details of the problem that he highlighted. It is always a challenge for local communities when developers are unable to complete the properties that they have indicated they will. I know that causes issues. I have a similar one in the village of Tupton in North East Derbyshire, where the developer unfortunately went out of business and the site is now mothballed. North East Derbyshire District Council is working hard to try to move that issue on. I will endeavour to write to the hon. Member for Weaver Vale either way, and will see whether the Department can provide any advice or information about the point that he raised; I am grateful for his doing so.

The hon. Member for Hackney South and Shoreditch (Dame Meg Hillier) raised a number of incredibly important and detailed points, to which I will ask the Department and the Minister responsible to respond in detail. Part of the answer to some of her questions will, I hope, be answered by the further details that come forward in the next stage of the affordable housing programme, but I will ask for a letter to be provided to the hon. Lady with more detail about the specific questions that she highlighted.

The hon. Member for Mitcham and Morden made an extremely powerful intervention about the challenges of temporary accommodation—an issue that we all are aware of. We all want standards, quality and conditions to improve. As a former councillor in central London, albeit a number of years ago, I am under no illusions about some of the challenges of temporary accommodation. The Secretary of State for Levelling Up, Housing and Communities, my right hon. Friend the Member for Surrey Heath (Michael Gove), has been clear that improvements are needed in this area and has indicated that further legislation will be forthcoming. I am grateful to the hon. Member for Mitcham and Morden for highlighting her concerns, and I hope the Department can make progress in the coming months and years.

The hon. Member for Caithness, Sutherland and Easter Ross (Jamie Stone) made a very important point about the challenges of access to labour, particularly in rural areas due to geography and topography and the like. I am sorry to hear about the issues his constituents are experiencing. While housing is a devolved matter, it is important, and I am grateful that he has put on record those issues and the work he is doing to address them. He will be aware that, at least from an England perspective, we are seeking to legislate as part of the Levelling-up and Regeneration Bill in order to offer councils the opportunity—which they do not have to take up; some will choose to, some will not—to vary council tax for second homes. That will hopefully put an additional tool in the arsenal of local authorities to respond, in England, to the local challenges he has raised.

The spokesperson for the Opposition, the hon. Member for Greenwich and Woolwich, raised an important point about capacity in local planning authorities, which is an issue that the Housing Minister, my hon. Friend the Member for Redditch (Rachel Maclean), and I are both involved in. Within planning, nationally significant infrastructure projects fall under my aegis. That is different from the debate we are having today, but there are very live conversations within the NSIPs and major infrastructure realms. I know from my colleague the Housing Minister that it is the same with regard to capacity in local planning authorities and within the appeals process, where a number of applications end up in their final stages.

The hon. Member for Greenwich and Woolwich raised a number of important points about green homes. We need to make progress on multiple different imperatives and initiatives. The part L uplift, which we brought in in the summer of 2021, constituted a 30% increase and improvement in standards. That is in place now and has been for almost a year. The transition period for the part L uplift ends shortly, meaning that all houses built from now on will be 30% more efficient than previously. That is a massive increase compared to a number of years ago. However, there is a trade-off here, and we are trying to work through the issues and make progress in all aspects.

The Labour party has spent much of this debate—reasonably, in my view—saying that we need more houses, and that they need to be affordable to own and rent. We agree, which is why we are trying to make progress in this area. We also need to make progress on the environmental agenda, but those things must be brought into balance. Every single time an hon. Member stands up in this place and says, “We just need this one thing added in”, we need to understand that there is cost involved. That is where we have to make considerations. The part L uplift is a great example: we are trying to make progress environmentally, while also trying to answer the question reasonably posed by hon. Members across this place as to how we increase housing supply in general. We hope we are striking the right balance.

[Valerie Vaz]

The Minister is doing a great job of expanding his speech. There is absolutely no cost to ensuring that there is an obligation for every new home built to have solar panels. Why does the Minister not look at that? My hon. Friend the Member for Greenwich and Woolwich (Matthew Pennycook), Labour’s Front-Bench spokesperson, has said that all these new houses have to be retrofitted. Surely the Minister can consider what can be done with new houses in terms of the environmental factors?

[Lee Rowley]

I understand the point that the right hon. Lady is making, but there is a cost to mandating solar panels on new properties: the cost that will be paid for the initial transaction. If right hon. and hon. Members want to see supply boosted, we have to accept that we have to set a balance; we are trying to do that by saying both that it is important to make progress with regard to the environmental imperatives that have been rightly highlighted and—to answer the exam question—to get the kind of supply that everybody in this debate wants to see.

I gently caution hon. Members not to be too prescriptive regarding the technology we use. Although solar panels will be appropriate in many instances—I would guess the majority of instances, as a non-expert and a non-surveyor—they will not be the solution to reducing the carbon footprint of every single new property built. We should all collectively accept that solar panels will not be a useful or effective way to spend money in that cohort—in situations where, for whatever reason, including the wrong aspect, the wrong part of the country or the wrong geography. We should seek not to impose a requirement in that regard but instead to say, “If you have that amount of money within the system to be able to spend on making that building greener, the Government will not be prescriptive that you have to do something that isn’t necessarily going to be effective, but we will encourage you to use that money to make it effective, be it in a different form of technology or doing it in a different way.”

[Mr Dhesi]

I thank the Minister for giving way and I think he will have heard the points about quality, size and environmental standards, and why it is important for there to be a focus on them; I appreciate his accepting that. Will he also confirm for us all, and for the record, when the revisions to the 2021 plan will be published?

[Lee Rowley]

We expect to be able to say more on the affordable housing point in the coming weeks ahead—in spring. I hope that answers his question. I will conclude—

[Mike Amesbury]

rose—

[Lee Rowley]

I will first give way to the hon. Gentleman.

[Mike Amesbury]

I will be brief. I recently addressed chief executives of housing associations from across the north, and the one big concern was around section 106 and the replacement—the infrastructure levy. I think that about 47% of affordable homes are built that way at the moment. What reassurances can the Minister give to the sector that that will be the case, and even better? The associations’ final ask was around section 21. When can we see the announcement on no-fault evictions—the pledge that has been made by the Government over and over again?

[Lee Rowley]

I am grateful to the hon. Gentleman for that intervention. On the final point, my right hon. Friend the Secretary of State for Levelling Up, Housing and Communities has been clear in the other Chamber that we intend to bring forward more information about the rental sector relatively soon. I hope that answers his that question.

Obviously, the key underlying way in which we can answer the hon. Gentleman’s question about the infrastructure levy is to get the Levelling Up and Regeneration Bill through. It depends what the other place does to that Bill. There are some quite substantial provisions, which I believe the hon. Member for Greenwich and Woolwich went through in Committee a number of months ago; I had the opportunity to contribute to that process very briefly. We will see what the other place does to that Bill. No doubt it will come back here. Once we get the Levelling Up and Regeneration Bill through, we will be able to make progress on moving away from section 106 and towards an infrastructure levy, which I hope will capture more of what we seek to do.

To close, I thank the hon. Member for Slough again for requesting and instigating this debate. It is absolutely the case that everybody here feels very strongly—rightly—about the need to make further progress on housing in the years ahead, for precisely the reasons that have been articulated in this debate today. It is so important for our constituents, for transforming lives and for supporting the most vulnerable. We have all heard today about some of the challenges, but I hope that I have been able to rebalance things, at least to some extent, by highlighting the opportunities and some of the progress that has been made. Housing, affordable housing and home ownership are vital to our communities all across the country, from North East Derbyshire, where I am from, to the constituencies of right hon. and hon. Members who have contributed to this debate today. We must make progress for precisely the reasons that have been articulated in this debate. I hope we can continue to do that in the months and years ahead.

Parish and Town Council Precepts

Lee Rowley Excerpts

Tuesday 18th April 2023 Westminster Hall

[The Parliamentary Under-Secretary of State for Levelling Up, Housing and Communities (Lee Rowley)]

It is a pleasure to serve under your chairmanship, Mr Hosie. I am grateful to my hon. Friend the Member for Morecambe and Lunesdale (David Morris) for raising this issue and organising the debate. This is an important subject. Those of us who have parish and town councils in our patches, or those of us, like me, who have had the opportunity to work with parish and town councils in a ministerial role, know how important they are for local communities. I know what a difference they can make and how much work goes into ensuring that parish and town councils and councillors make a difference in, and improve, their local areas. There are over 9,000 councils in the country, and I am grateful for the work they do, including in my own patch of North East Derbyshire.

This is also an important subject because it is important for my hon. Friend who secured this debate. He is a champion for Morecambe. We hear him in the Chamber week in, week out, being that extremely strong voice for his constituency. I congratulate him on his recent successes, which he outlined—in particular, Eden Project North, which will be transformative for the area that he has the privilege to represent. In the time that I have, let me briefly go through the legal position that town and parish councils operate under. I will then comment on the points my hon. Friend has made.

My hon. Friend speaks passionately and clearly about the challenge of a council tax increase driven by the increase in a precept from Morecambe Town Council. As he is aware, council tax is set by local authorities—in this instance that includes a town council—and they decide what level of council tax they need to raise. The Government set referendum principles for some, but not all, councils each year. Where councils set excessive increases, they have to go to referendum. Increases are usually within the bounds of around 5% for other council tiers.

We have not traditionally applied referendum principles to town and parish councils, but we have said very clearly that all tiers of council should exercise restraint when they are setting council tax increases. This was made clear in the consultation for the local government finance settlement for 2023 to 2024. We stated that the Government continuing to not set referendum principles was contingent on town and parish councils taking all available steps to mitigate the need for council tax increases and the Government seeing clear evidence of restraint. It is the case that the thousands of town and parish councils will face different challenges and perform different functions, but it is also the case—I want it to be clearly noted in this debate—that we expect town and parish councils to be restrained in their council tax increases.

My hon. Friend raises points about powers and in particular the disclosure of information. He references the local government transparency code of 2015. The code is a statutory instrument that contains two elements: a mandatory section and a section of recommendations. The requirement to publish invoices over £500 and to publish procurement card transactions is mandatory. Where that is not done, or where there is a concern that it is not done, we recommend in the first instance that the authority is contacted, following their complaints procedure, and then the monitoring officer of the principal authority is contacted. Finally, there is the opportunity to go to the local government ombudsman if there remain concerns.

A number of points were raised about the approach of the town council to its precept raising and decisions that it is making about how to utilise that precept. Ultimately, because there needs to be enough flexibility in the system, decisions about how precepts are set, how much they rise by and how they are applied is mainly down to the town or parish council itself. However, it is important that restraint is shown. My hon. Friend has made important points, and I agree, having had a superficial look at the budget—which he has kindly provided—that there are a number of relatively odd things happening here. It is a question of fact, which all residents of Morecambe will be able to see by accessing the documentation, that there are significant increases in the amount of spending expected here and the amount of precept being raised. There is an opportunity to comment on that at the ballot box in a couple of weeks. There are also opportunities through the complaints procedures that I have referenced and the principal authorities, which can also be pursued by residents and those who are interested in this matter.

As my hon. Friend indicates, we have spoken several times about this. As a Minister for local government, I know that the Secretary of State for Levelling Up, Housing and Communities has also taken an interest in this. We will take back all the points from this debate and consider them from a policy perspective. We must ensure that parish councils work going forward. I would be very happy to talk to my hon. Friend about any specifics outside this debate if that would be helpful.

The vast majority of town and parish councils do incredible work, as do councils of all tiers, day in, day out, to ensure that local residents and communities thrive and improve. In any system with thousands of different entities, that cannot always be the case, and where there is challenge, problems and poor behaviour, that absolutely should be raised. It is absolutely the case that light should be shone on it and that transparency ultimately wins the day. I wish my hon. Friend well in the work he is doing to highlight the challenges he sees. I am happy to continue the conversation and thank him for the opportunity to be able to contribute today.

Motion lapsed (Standing Order No. 10 (6)).

Oral Answers to Questions

Lee Rowley Excerpts

Monday 27th March 2023 Commons Chamber

[Marsha De Cordova (Battersea) (Lab)]

13. Whether he is taking steps to support leaseholders with building safety costs.

[The Parliamentary Under-Secretary of State for Levelling Up, Housing and Communities (Lee Rowley)]

The Building Safety Act 2022 introduced extensive protections for leaseholders in buildings above 11 metres. Developers in Government schemes will pay for cladding remediation, and developers that have signed contracts or are associated with landlords will also pay for non-cladding work.

[Marsha De Cordova]

It is a national disgrace that nearly six years on from the Grenfell tragedy, leaseholders in Battersea are still stuck in buildings that are below 11 metres. It is not right for the Secretary of State to say that this will be assessed on a case-by-case basis when we know that shorter buildings will have more vulnerable people in them, will have more cladding, and will suffer from greater fire safety defects. When will the Government finally get a grip and allocate resources, and prioritise those according to risk?

[Lee Rowley]

I am sorry to disagree with the hon. Lady, but it absolutely is the case that buildings under 11 metres typically have a lower set of issues associated with them when reviewed on the basis of the PAS 9980 principles, which are utilised to assess whether issues are there or not. Where colleagues are aware of problems in buildings, we have asked—and continue to ask—them to get in touch with us, so that we can look at those problems. We are doing so—I looked at a case in Romford only last week. If the hon. Lady wants to provide me with further information, I would be happy to look at those individual cases.

[Stephen Metcalfe (South Basildon and East Thurrock) (Con)]

As my hon. Friend will know, the cost to leaseholders does not just end with funding safety measures; many are paying extortionate insurance premiums. Can he tell the House what discussions he has had with the Treasury about reducing those costs and making them more affordable?

[Lee Rowley]

Along with my colleagues in the Department, we are trying to find an industry solution for insurance, and we have been working closely with the Association of British Insurers and with insurers directly on what they can do and how the costs for insurance come down as remediation is concluded. I spoke with the ABI only last week, and I will continue to meet it regularly to try to resolve this incredibly important issue.

[Mr Speaker]

I call the shadow Minister.

[Matthew Pennycook (Greenwich and Woolwich) (Lab)]

They will only ever deal with a fraction of the problem at best, but the developer remediation contract and the forthcoming responsible actors scheme are welcome. Yet, as things stand, all we know is that the scheme will initially focus on sufficiently profitable major housebuilders and large developers, and it may then expand over time to cover others. Blameless leaseholders trapped in unsafe buildings deserve far greater clarity now as to whether or not the contract and the scheme may eventually cover their building. Will the Government give them that certainty by committing today to publishing a full list of all developers that the Department believes are eligible and should therefore ultimately participate or face the consequences—yes or no?

[Lee Rowley]

I have the greatest respect for the hon. Gentleman, but the reality is that he cannot suggest that only a fraction of buildings are covered by the developer contract. Just in the past two weeks, it has been confirmed that more than 1,100 buildings will be fixed, with £2 billion of work covering 44 different developers. There will be more announcements in due course, but where individual leaseholders have concerns about moving those buildings forward, we are happy to hear about them, but extensive Government support schemes are already in place to allow remediation to occur without waiting for the conclusion of these developer discussions.

[Alexander Stafford (Rother Valley) (Con)]

14. What the timescale is for English city region capital regeneration projects to complete their work.

--- Later in debate ---

[Caroline Ansell (Eastbourne) (Con)]

T7. Local elections are fast approaching, but my local council has said that, from now until 4 May, I can continue to send in casework but it cannot reply. I will not know whether the council has lifted eviction orders or responded to dangerous damp conditions—the list goes on. I champion my constituents’ situations, but that will compromise what I can do to support them. Does the Minister agree that the council’s ruling is wholly disproportionate?

[The Parliamentary Under-Secretary of State for Levelling Up, Housing and Communities (Lee Rowley)]

Yes. Eastbourne council is wrong. The pre-election period does not stop councils from responding to Members of Parliament, and they should do so.

[Marsha De Cordova (Battersea) (Lab)]

T9. The leasehold system too often traps homeowners, including many of my constituents. They have complained to me of fire safety risk, poor building maintenance, astronomically high service charges and poor customer service. Labour has been calling on the Government to end feudal leasehold systems. Will the Secretary of State bring forward legislation on further leasehold reform in this Session, so that all homeowners can live in a safe, decent and affordable home?

Draft Building (Public Bodies and Higher-Risk Building Work) (England) Regulations 2023

Lee Rowley Excerpts

Monday 27th March 2023 General Committees

[The Parliamentary Under-Secretary of State for Levelling Up, Housing and Communities (Lee Rowley)]

I beg to move,

That the Committee has considered the draft Building (Public Bodies and Higher-Risk Building Work) (England) Regulations 2023.

It is a pleasure to see you, Sir Robert, and to serve under your chairmanship. Under the Building Safety Act 2022, the Government are introducing a more stringent regulatory regime during design and construction, with the Building Safety Regulator becoming the sole building control authority for building works defined as higher risk. Under the current regime, there is an historical exemption available to public bodies where, if approved by the Government, they can obtain a partial or full exemption to the building control procedural requirements. The draft regulations will ensure that in future, public bodies will not be able to obtain an exemption to carry out building control on their own higher-risk building work. The Building Safety Regulator will instead carry that out for all higher-risk buildings, including those owned by public bodies.

The regulations are a small but important part of our ongoing reforms to improve the safety and standards of all buildings. First, the regulations remove the Minister’s ability to grant building control procedural exemptions to public bodies for higher-risk building work. In future, all higher-risk building work will be overseen by the Building Safety Regulator. The ability to grant exemptions for non-higher-risk building work is unaffected.

Secondly, the regulations require any public bodies with a partial exemption under section 54 of the Building Act 1984 to cancel their public body notice with the local authority if the building work becomes higher risk. Local authorities will also be required to cancel public body notices in the same circumstances. Currently, no public body is approved under this partial exemption system; therefore, the measures are being introduced for future use only, and they will not change existing arrangements. Only one public body has any type of exemption—the Metropolitan police—and separate regulations to be introduced later this year will change that exemption to apply only to non-higher-risk building work.

Thirdly, the regulations will allow the Building Safety Regulator to impose a fine of £7,500 on public bodies that have not cancelled their public body notice when building work becomes higher-risk building work. For the reasons outlined, I commend the regulations to the Committee.

--- Later in debate ---

[Lee Rowley]

I am grateful for the hon. Gentleman’s questions. I wrote down his first question, but I have lost it among my documents. Will he remind me of it?

[Matthew Pennycook]

It was about the impact assessment.

[Lee Rowley]

The position is that, because the public body notices are not being utilised and the use of them is therefore minimal, the impact of their usage or the future need for them will also be minimal. On the second point, I am happy to write to the hon. Gentleman, in order not to detain the Committee any longer.

Question put and agreed to.

Local Authority Interventions

Lee Rowley Excerpts

Thursday 16th March 2023 Written Statements

[The Parliamentary Under-Secretary of State for Levelling Up, Housing and Communities (Lee Rowley)]

Local councils play an essential role every day. They deliver core services, including to the most vulnerable citizens, they help shape our communities, and support local democracy. Where councils do not meet the high standards that we set for local Government, it is right that Government intervene in order to protect the interests of residents.

Today I am updating the House on the intervention arrangements at three councils of concern to the Department for Levelling Up, Housing and Communities. These are Thurrock Council, the London Borough of Croydon, and Slough Borough Council.

Thurrock Council

On 24 January 2023, I informed the House that the Secretary of State for Levelling Up, Housing, and Communities and I were minded to expand the ongoing intervention in Thurrock Council. Over recent months, the new leadership at Thurrock Council have worked co-operatively and collaboratively with the commissioner, Essex County Council, to start the long journey back. In addition, our proposals were to appoint an independent managing director commissioner to work alongside Thurrock’s existing commissioner, Essex County Council, to provide commissioners with further powers over governance and staffing, and to direct Thurrock Council to take additional actions to support its improvement.

I made this announcement after receiving two reports from Essex County Council in December last year, the commissioner’s first report, and an update letter on the best value inspection. Both documents laid bare the scale and complexity of the financial challenges facing Thurrock Council and noted significant concerns regarding a lack of robust governance and leadership capacity at the council.

I invited representations on our proposal from Thurrock Council, and from members of the public, which I have now received and considered.

Since that announcement, the Secretary of State and I have also received a best value inspection report on Thurrock Council from Essex County Council in its role as best value inspector, which I will publish in due course following a further representations process whereby any particular individuals criticised are given an opportunity to read and respond to those relevant parts of the report before it is published.

Having carefully considered the best value inspection report, and the representations I have received about the intervention, I am satisfied that Thurrock Council is continuing to fail to comply with its best value duty. I am today announcing a formal expansion to the intervention in Thurrock Council to implement the changes we proposed on 24 January 2023.

To begin, we will appoint Dr Dave Smith to be a managing director commissioner. He is a highly experienced former local authority chief executive who has held senior executive positions within local government for the past fifteen years, including chief executive of South Yorkshire Mayoral Combined Authority and chief executive of Sunderland City Council. He will work closely with the existing commissioner, Essex County Council, to support Thurrock Council in its improvement journey. He will be responsible for the day-to-day operations of the council and will provide strategic direction and leadership, until such time as a permanent appointment to the post of chief executive can be made. As I noted in my January announcement, I intend for this appointment to strengthen the intervention model and to increase the council’s capacity to deliver vital improvements.

The Secretary of State will also use his powers under the Local Government Act 1999 to update and expand his directions to Thurrock Council and its commissioners.

In addition to the finance powers they already hold, the new directions will permit the commissioners to exercise further powers over:

All functions associated with the governance, scrutiny and transparency of strategic decision making by the authority to ensure compliance with the best value duty. This will include oversight of an audit of the council’s governance.

All functions associated with the council’s operating model and redesign of council services to achieve value for money and financial sustainability.

The appointment, suspension and dismissal of statutory officers, including powers to determine the process for making these appointments and dismissals, and to define a new officer structure for senior positions at the council.

The development, oversight and operation of an effective performance management framework for senior positions.

The new directions will also instruct the council to take specific actions to support its improvement. These will incorporate the existing instructions to the council issued back in September, but they will go further, and instruct Thurrock Council to undertake the following new actions to the satisfaction of commissioners:

To prepare, produce and implement an enhanced improvement and recovery plan, which builds on their existing improvement plan. This will include new elements to cover:

An action plan to reconfigure the authority’s services commensurate with the authority’s available financial resources.

A plan to ensure that the Authority has personnel with sufficient skills, capabilities and capacity to deliver the improvement and recovery plan, within a robust officer structure.

An action plan to strengthen the authority’s governance function, to secure improvements in transparency and formal decision making. This should include measures to improve the authority’s scrutiny function, including the taking and recording of formal decisions.

Arrangements to secure the proper resourcing and functioning of the system of internal controls, including risk management and internal audit.

To undertake any action that commissioners may reasonably require to avoid, so far as practicable, incidents of poor governance that would, in the commissioners’ reasonable opinion, give rise to the risk of the authority failing to comply with its best value duty.

To take steps to ensure that the role of accountable body to the Thames Freeport is exercised to the satisfaction of the commissioners. This should also be reflected in the improvement and recovery plan.

As part of this next phase of intervention, Essex County Council will continue to act as a commissioner and I look forward to its report in June. As part of the January announcement, I indicated my intent to formalise the role of the leader of Essex County Council in this intervention. I can confirm that I will today issue an updated explanatory memorandum, to accompany the new directions.

I am hopeful that the expansion to the intervention that I am announcing today will help the council to address the concerns set out in the commissioner’s first report and the best value inspection update letter, and to continue its work to improve the way in which the council is run. There will be an opportunity for further reflection on Thurrock Council when I publish the best value inspection report.

The London Borough of Croydon



Regarding the London Borough of Croydon, the council has been subject to two public interest reports by external auditors relating to poor financial decision making and associated governance failings (October 2020) and failures in financial control and poor governance arrangements relating to the refurbishment of Fairfield Halls (January 2022). Croydon has issued three section 114 notices since 2020, the latest being in November 2022 following the conclusion that it cannot balance its budget in 2023-24 and beyond.

The former Secretary of State appointed an independent improvement and assurance panel in February 2021, chaired by Tony McArdle OBE and made up of independent experts, to offer the council advice, expertise and challenge as it sought to address failings related to poor financial control and governance. The panel has provided regular assurance reports to the Secretary of State on the council’s progress throughout this time, with their latest report being submitted in November 2022.

Whilst the council has struggled to resolve serious governance and financial issues for several years, I want to place on record that the Secretary of State and I recognise the positive steps taken by the council, with oversight from the improvement and assurance panel, to lay the foundations for its recovery and ensure that legacy issues are being addressed. In May 2022, Croydon changed its model of governance with the election of a Mayor, Jason Perry, and a new council. The Secretary of State acknowledges the panel’s assessment in their latest report that the Mayor has been working constructively with them and is prepared to “take firm decisions” to return the council to a sustainable financial footing. The panel have also commented that within the council there is

“much evidence of managers and staff grasping the scale of the problem and doing their best to fix it.”

Historic issues have continued to be unearthed at Croydon and their potential impact on the council and the progress it has made to date must not be underestimated, particularly given its precarious financial position. Croydon is currently unable to achieve financial sustainability on its own accord and has requested an unprecedented level of support from Government as a result of these historic issues.

On balance, the Secretary of State agrees with the panel’s latest assessment, that the acknowledged and welcome work of the new leadership has made good progress, however he has concluded, including as a result of the historic problems and the extent of improvement necessary, that the council is not meeting its best value duty.

The Secretary of State is minded to implement the intervention package set out below and in line with procedures laid down in the Local Government Act 1999 to assist the existing extensive effort to go even quicker. Officials in the Department have, as a result, written to the council seeking representations on the proposed intervention package.

The proposed package is centred on the council continuing to make the necessary improvements to the satisfaction of the improvement and assurance panel. The panel will be backed by directions issued to the council requiring it to follow the instructions of the panel if they are not satisfied with the progress being made. The panel will report to the Secretary of State every six months.

It is important that the council leads its recovery but that it does not lose momentum in making the necessary improvements. As part of the representations period, Ministers will reflect on membership of the panel to ensure the arrangements are fit for purpose to support the council moving forward.

We are inviting representations from the council on the Secretary of State’s proposals by 30 March. We want to provide the opportunity for members and officers of the council, and any other interested parties, especially the residents of Croydon, to make their views on the Secretary of State’s proposals known. Should the Secretary of State decide to intervene along the lines described here, he will make the necessary statutory directions under the 1999 Act. I will update the House in due course.

Slough Borough Council

I would also like to take this opportunity to provide an update on the intervention at Slough Borough Council. On 22 December 2022 I received a copy of the commissioners’ second report on the progress of the intervention. The report has made for stark reading. Commissioners describe there being

“a real sense that many in leadership roles do not see leading and modelling corporate improvement as their overriding responsibility but only as something they have to do”

This is wholly unacceptable. The well-publicised failures of Slough have stemmed from a poor culture of checks and balances, as well as inadequate leadership. The council and its leadership must accept this and embrace the need to change. The results of these past failures have devastated the council and made its financial position unsustainable. Within their report commissioners have gone so far as to query the viability of Slough as a unitary authority. For Slough to remain in its current form there will need to be a fundamental shift in the attitude and behaviour of the council and its leadership. The role of commissioners will be of paramount importance and their focus in the coming months will be on a new operating model for the authority.

Our intervention now needs to move from its discovery phase to one of requiring the council to do the hard work of transformation. The council must step up. Equally, we will put in place a commissioner team who will move the council through the next stage of this journey. Max Caller CBE, lead commissioner for the intervention, wrote to the Secretary of State on 1 March to tender his resignation and stated his intention to retire from public life. The Secretary of State has accepted Mr Caller’s decision and I would like to thank him not only for the work he has undertaken as part of the intervention, but also for his many contributions to the local government sector. In addition, Margaret Lee, finance commissioner, also wrote to the Secretary of State on 12 March to tender her resignation for personal reasons. The Secretary of State has accepted Ms Lee’s resignation with immediate effect and I would like to thank her for her excellent work in Slough and Croydon and wish her well for the future. We will make an announcement on the revised commissioner team in due course and we will make appointments with the experience and skill set to ensure the council progresses, alongside the enhanced senior officer team now in place at the council.

The intervention at Slough remains challenging. I strongly urge the leadership in Slough to consider the findings of commissioners’ report and reflect on what more they could be doing not only to meet the requirements of the statutory directions, but to drive forward necessary changes. Things must change.

Conclusion

I want to acknowledge the work of the dedicated staff who deliver the business-as-usual services of the councils included in today’s announcement, many of whom have strived to deliver those services over recent years despite the financial, leadership and governance challenges faced by their respective authorities. They will play a vital role in each council’s recovery. I have deposited in the House library copies of those reports I have referred to that are also being published on gov.uk today.

We are also today publishing on gov.uk the second report from the Sandwell commissioners, which the House may wish to note. The commissioners report that they have seen some progress at the council in the past six months, though there is still a lot of significant work to be done, with a particular focus on the customer journey and culture. Last week I also published the third report from the Liverpool commissioners. The report is cautiously optimistic about the council’s progress. It is clear, however, that the council faces significant change in the months ahead with a transition in officer and political leadership plus the implementation of a significant transformation programme. The continuation of the intervention in Liverpool will be vital to support the council through this period of change.

[HCWS638]

Adult Social Care

Lee Rowley Excerpts

Wednesday 8th March 2023 Commons Chamber

[The Parliamentary Under-Secretary of State for Levelling Up, Housing and Communities (Lee Rowley)]

I add my voice to all those who have welcomed you back to the Chair in recent days, Madam Deputy Speaker.

I thank right hon. and hon. Members who have spoken in this debate. It has been a good debate that has highlighted some of the challenges, and demonstrated some of the opportunities in this area. I am particularly grateful to my near neighbour and Chair of the Levelling Up, Housing and Communities Committee, the hon. Member for Sheffield South East (Mr Betts). We do not agree on everything, but he had a long and illustrious history in local government before he joined this place, and since then he has taken a significant interest in this subject. I am grateful to him for introducing the debate in such an even-handed manner.

As all those who have spoken today have indicated, this is an important area of policy for a variety of reasons. That is why there is such close working between the Department for Levelling Up, Housing and Communities and the Department of Health and Social Care, given the importance of the issue, the need to get it right, and the need to continue to make progress on some of the challenges that have been highlighted. We have also worked closely to ensure some of the achievements that have come forward in recent years. As hon. Members will know, policy is largely within the Department of Health and Social Care and the funding process, via the local government finance settlement, is within the Department for Levelling Up, Housing and Communities.

I will try to answer the questions as best I can on all the elements that have been raised today. Colleagues raised a substantial number of points that fall into three broad buckets: first, where we are; secondly, where we are going; and thirdly, what we do about the long term. I will take those three points in turn.

First, there is no disagreement across the House that there are challenges, and that there have been difficulties on both a macro level and across government and society as a whole. There are also challenges within adult social care. More broadly, over the past 20 years, under Governments of all parties, we have seen changing demographics. It is great that more people are living longer, but that creates challenges for whoever is on the Treasury Bench to ensure that the Government support people to the extent that they can. There is often greater acuity with individuals in the system, and more have multiple conditions. More broadly, in recent years and despite valiant attempts by the hon. Member for Luton North (Sarah Owen) to gloss over them, we have received the challenges of inflation, of external events and of covid, all of which have created issues across the Government. A mature debate will recognise and acknowledge those challenges, and seek to build on them and resolve them over time.

The hon. Member for Sheffield South East is correct to say that funding has been much questioned over the past 13 years, and we will all have different views on that. The issue has been much discussed since 2010, just as the reasons behind decisions that were taken between 2010 and now have been much discussed. I will not detain the House by repeating those reasons, other than to say that we know them, and that they are at least anchored in a set of decisions that were taken before 2010. It is also important to acknowledge—I hope hon. Members will do this—that significant additional funding has gone in and is going in over the remainder of the spending review period, with £2 billion of additional grants in 2023-24, and nearly £1.5 billion of additional funding in 2024-25. Money is not everything, but ultimately there is a recognition in all parts of the House that there are challenges with adult social care, and more money has gone in.

The hon. Gentleman also talked about the way we fund. Although I accept challenges from right hon. and hon. Members about the right balance, I hope we can agree within our discourse that it is reasonable and proportionate for us to have both funding provided centrally and an element of local funding, not least so that there is linkage between how organisations and local councils decide to spend that money in the locality and how they raise it. As I say, I accept that there are different views about what the proportions should be, but I hope that future discussion of this issue acknowledges the reality and appropriateness of that balance.

Although I am trying not to be too political, it is important to note that some of the challenges have been in place over recent years because there has been a challenge with Government funding over the course of 13 years. We have been trying to keep taxes down for people when we are able to do so. It is important to note that council tax more than doubled under the last Labour Government, and we have spent a significant amount of time and effort in the local government system since 2010 making sure that increases are as low as they can be.

[Barbara Keeley]

The Minister is talking about the balance between funding being found locally and funding from central Government grant. The issue I have outlined is that it would be unreasonable for a local authority to have to find something like £1 million extra. I have talked about placements for people with learning disabilities or autistic people that can cost up to that. That cost is being borne by the NHS, yet it could be much lower if the person had suitable housing found for them in the community. It is not reasonable to expect a local authority suddenly to find a large amount of money if a case comes up. Together with colleagues from the Department of Health and Social Care, will the Minister look at the idea of a dowry that I put forward, so that people do not have to spend 10, 20 or 30 years in horrible NHS institutions that are often far from home and unsuitable? This is just a logistical problem about where the money is, and it seems that of all the problems we could solve, this is one we should be doing something about.

[Lee Rowley]

I am grateful to the hon. Lady for her intervention. I will come to her points in a moment.

I acknowledge the point that my hon. Friend the Member for North Devon (Selaine Saxby) made about rurality, which is one reason why it is important that there is a balanced understanding that some funding is raised locally. Different parts of the country will have different requirements, pressures and challenges, which, in many parts of the country, will include rurality. I accept that that creates an issue in certain places. From a local government perspective, rather than an adult social care perspective, we have tried to acknowledge that, at least in part, in the local government finance settlement through the rural services delivery grant. I am always happy to look at that and to talk to my colleagues in more detail, as we prepare for funding settlements in future years.

[Selaine Saxby]

Does my hon. Friend acknowledge that in massive counties such as Devon, outside the urban south, the very rural hinterland causes variance from the average, and that top-tier authorities should have much more leverage to offer settlements with a far greater differential between rural and urban areas?

--- Later in debate ---

[Lee Rowley]

I certainly acknowledge that there are differences in individual circumstances between rural areas, urban areas, and suburban and near-rural areas, one of which I have the privilege to represent in Derbyshire. The finance settlement seeks to acknowledge that to some extent. As I will come to in a moment, we are also introducing Oflog—the office for local government—which will seek to understand how councils spend the money they receive or raise, so that we can understand the differences that occur around the country and also how people choose to make decisions arising from those differences.

Let me come to the second point, which is where we are going.

[Mr Betts]

rose—

[Lee Rowley]

If I may make a little more progress, I will happily give way to the hon. Gentleman.

I recognise the points that have been made about reform. I note that the hon. Gentleman, my right hon. Friend the Member for Ashford (Damian Green) and others highlighted the importance of looking at how we can continue to improve adult social care in the round and over time, and I pay tribute to my right hon. Friend for his work in the all-party parliamentary group on adult social care in that regard. I also note the broader questions of what we do over the long term, over many years and decades, and some of the issues that the hon. Member for Worsley and Eccles South (Barbara Keeley) highlighted, and also the intervention from my right hon. Friend the Member for East Yorkshire (Sir Greg Knight) about the importance of carers, which I absolutely acknowledge. I will certainly pass back to my colleagues in the Department of Health and Social Care all the policy points, which absolutely have been heard today.

Both my right hon. Friend the Member for Ashford and the hon. Member for Sheffield South East highlighted alternatives, and mentioned Japan and supplements. Decisions about how best to fund the system are long-standing and challenging, and there are always alternatives; I hope it will be recognised that the Government have tried to resolve some of the issues through changes and proposed reforms over the last couple of years, even if they are later than originally intended. There is acute difficulty and challenge in reforming this area, and successive Governments of different colours have been unable to do what many people would like to happen, yet we are determined as a Government to get it right. I hope we have demonstrated progress—both in the short term through further amounts of funding, and through the reforms we proposed a couple of years ago—and we will continue to try to do that.

[Mr Betts]

I thank the Minister for giving way; his further comments were quite helpful because they lead on to the intervention I was going to make, which comes back to local funding for social care. The joint report by the two Select Committees in 2018 said:

“There should be a continuation for the foreseeable future of the existing local government revenue streams.”

That was accepted, but we went on to say, very clearly, that a new source of funding is needed for social care to recognise the gaps that exist. Does the Minister accept in principle that the Government must come up with a new, discrete source of funding for social care? The Government sort of got there two years ago, then backed off. Are they going to come back to that at some point?

[Lee Rowley]

As I think the hon. Gentleman is aware, substantial additional funding has gone into the system. I am always happy to discuss the best way that that should be structured—obviously that is a multi-departmental discussion—but I hope there is an acknowledgement that additional funding has gone into the system and continues to go in. The additional information given in our announcements about the remainder of the spending review, over the coming financial year and the year after, demonstrates our commitment to do that. We hope that will have a positive impact on the challenges that have been articulated.

Finally, I want to talk about the long term, which hon. Members from across the House raised in their speeches. We acknowledge that there is a desire, and it is important to try to plan for the long term. We will bring forward a plan for adult social care reform in the spring. I hope that will answer some of the questions that hon. and right hon. Members have raised and assuage some of their concerns locally. To answer the challenge from the hon. Member for North Shropshire (Helen Morgan) about a long-term settlement for councils, while some of the long-term nature of that is debatable, I hope that the broader policy statement, which the Government announced several weeks ago with the local government finance settlement, demonstrates our intent to move forward with a longer-term understanding of what councils can expect to receive from Government, where we are able to do that. As I have highlighted, in the long term we are also seeking to introduce new elements to government, such as the office for local government, which hopefully will provide information not just about what is happening, but information that explains in more detail how local government is spending that money.

[Helen Morgan]

rose—

[Lee Rowley]

I have detained the House, but I will be happy to give way briefly.

[Helen Morgan]

I am grateful to the Minister. The point about long-term funding is so important. Until a couple of weeks ago, care providers in Shropshire did not know by how much their rates would increase in the new financial year, and they were considering handing their contracts back. It would have cost the council a fortune just to find someone who was willing to fulfil some of those care packages. Councils need long-term funding for their own financial stability and to find care packages at an achievable cost.

[Lee Rowley]

I am happy to confirm that the Government are trying, where we are able, to offer greater visibility of what is coming and greater long-term understanding. We will continue to try to do that across the local government finance settlement, and I hope this policy statement is an indication of that.

[Sarah Owen]

I appreciate the Minister’s generosity in giving way, and I completely agree on the kind of long-term futures that we talking about for local government, yet we are 23 days away from local authorities setting their budgets and they have still had no indication about their public health grants. If we are going to treat local authorities with respect on healthcare, surely they should be given that well in advance.

[Lee Rowley]

I know that my colleagues across Government will be working hard to get the final elements of the settlement out as soon as possible, but I hope the hon. Lady will acknowledge that, on the basis of my conversations with local government over the past few weeks, there is a recognition that the settlement has provided a good level of funds, that it will be moving in a positive direction and that it provides the stability and greater certainty that local government has requested and that we have responded to as a Government.

To conclude, I again thank the hon. Member for Sheffield South East for instigating and opening this debate. I also thank everybody outside this place who supports adult social care. It is an extraordinarily important part of local government and the state’s activities in general. As has been outlined in this debate, we need to support the most vulnerable and those in need, irrespective of age or condition. Through the changes that are coming in the new financial year, we are trying to provide additional funds, support and taxpayer subsidy to do that, and to ensure that local government can continue to build and improve for the long term in such an important policy area.

Ballot Secrecy Bill [ Lords ]

Lee Rowley Excerpts

Committee stage
Tuesday 7th March 2023 Public Bill Committees

[Alex Norris (Nottingham North) (Lab/Co-op)]

It is a pleasure to serve with you in the Chair, Mr McCabe.

I thank the noble Lord Hayward for sponsoring this important Bill in the other place and I congratulate him on securing its swift progress through to its Commons stages. I congratulate the hon. Member for Peterborough on his work in this area and on the case he made for the Bill this morning, which was very good and a handy way to start the discussion.

This is a short but important Bill for the integrity of our elections and our democracy more widely. As was covered during debates in the other place—they are very much worth a read, and it was helpful that the hon. Gentleman brought them into this debate, because some of those contributions were excellent—it is crucial that our democratic process is free from abuse and intimidation. That was the spirit of the 1872 Act, 151 years ago, which curtailed many of the terrible practices that occurred in elections before its passing. As was explained in the other place, however, a clear and identifiable problem remains with the Act as it stands: it does not give presiding officers the right tools to tackle the problem of people being compelled to vote one way, or not at all, by others.

It is unacceptable that such practices still occur. The intimidation of voters is contrary to all our democratic principles, but the law as it stands lacks clarity on the matter. That has been acknowledged by the Electoral Commission, which it is helpful to note. There is therefore clearly a case for changing the legislation and making such practices an offence. The Bill will do exactly that.

I associate myself with the comments made by my hon. Friend the Member for Lancaster and Fleetwood about a bigger piece of work to consolidate our electoral law in one place. The Law Commission report is a good starter. Those points were well made, and I share them.

Important reassurances were given in the other place—I am sure the Minister will reiterate them—about disabled voters continuing to have any assistance they need to vote, where necessary. That practice, which is right and proper, will not be impacted by the Bill. Last week, I took part in an event—as did the Minister—organised by the My Vote My Voice campaign, which aims to improve participation in voting by adults with learning disabilities and/or autism.

I have had similar such conversations about voting with people with Usher syndrome, those who are deaf and blind more generally, and those who are blind. They all say the same thing: they want hurdles to voting lowered so that they can vote with greater confidence. Happily, the provisions in the Bill do not impair that, but there is something to be said for going above and beyond the Bill, building out from it to ensure that the right technologies are available or that there is staff training. The hon. Member for Peterborough also talked about staff training and how—including under the Elections Act 2022—there should be more training on how to ensure that people living with disabilities can vote independently. We would not then have to worry about another person being there, because the assistive technologies are there—those exist, and that is what such electors want. I hope we build out from this legislation in that way.

To conclude, it is important that we have good, strong law in this area, to provide a clear understanding of what is and what is not acceptable practice at a polling station. The Opposition support the Bill and look forward to its timely passing.

[The Parliamentary Under-Secretary of State for Levelling Up, Housing and Communities (Lee Rowley)]

It is a pleasure to serve under your chairmanship, Mr McCabe.

I am pleased to say that the Government also support the Bill, which is being sponsored by my hon. Friend the Member for Peterborough. We are grateful for his efforts and work in this regard. I join him in paying tribute to Lord Hayward, who has been an absolute stalwart in pushing forward this important agenda and ensuring that the Bill is before us today. He is joined in the Public Gallery by a number of others with interests in this area, including Councillor Tanner and Councillor Peter Golds.

My hon. Friend’s Bill arises from concerns over so-called family voting, which we have discussed, which is when family members or others accompany voters into a polling booth in a polling station for the apparent purpose of influencing or guiding how they cast their vote. The Government share the concerns expressed about the issue and we are committed to safeguarding our democracy against those who would harm it. That is why we are supporting the Bill.

I will run through the clauses briefly, but I do not seek to detain the Committee for too long. Clause 1 makes a number of important changes. As my hon. Friend the Member for Peterborough explained, it outlines that a person commits an offence if they are with a voter in a polling booth, or near it, but it also sets out the reasons why people would not be committing an offence in appropriate instances, which have already been outlined—with those who need assistance or are disabled.

As the hon. Member for Nottingham North said, both of us in the past few days have been to events—I am grateful to him for supporting and helping to organise an event last week—at which the importance of greater participation and greater involvement in the democratic process was clear. Those events aim to encourage and support those who need additional assistance, which is a vital part of the electoral system, although we must also ensure that we can do the things that my hon. Friend the Member for Peterborough is requiring under the Bill.

I hope the hon. Gentleman can see some of the changes that are being introduced in May, particularly with regard to people with sight loss and trying to provide a greater range of options and technology to support them, as a step forward and part of that broad agenda.

[Mike Amesbury (Weaver Vale) (Lab)]

I certainly support the good intentions of the Bill, but I seek clarification. How would election officials—returning officers—demarcate somebody who was going about their normal business? I know this will be reflected across the Committee Room, but if my wife and son came along, quite innocently, when I was voting and we went our separate ways, how would that natural family event be demarcated from somebody coercing or applying undue influence at the ballot box?

[Lee Rowley]

I am grateful to the hon. Gentleman for his comments because he raises an important point, which is: how will we interpret the legislation? Clause 3, which my hon. Friend the Member for Peterborough has outlined, provides that additional guidance will need to be put in place to give greater clarity for those who are running individual polling booths. That might not be their day job, and they might come from another part of a local authority and might be taking part in only that one electoral event, so it is right that there will be interpretation and guidance with respect to the Bill. It will be for the Electoral Commission and others to provide that as part of the overall process. Hence, clause 3 outlines the approach we suggest.

Before I come to clause 3, let me refer to clause 2.

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

When the Government produce that guidance, would it not make sense for it to say that when two adults were going to a polling booth together, they would need to be doing so in circumstances whereby they were, for example, giving assistance to a disabled person? Therefore, the presumption would be that everyone should go separately, rather than there being a need to prove intent, because it is always difficult to know what is going on in someone else’s mind.

[Lee Rowley]

I am grateful to my hon. Friend for her suggestion. This exchange is highlighting some of the challenges around the level of prescription that needs to be in the process versus the level of discretion. That is one reason that we legislate in this place and a separate body provides interpretation.

The ultimate decision about whether things are appropriate or not appropriate in individual polling booths is down to the presiding officer in that polling booth. Presiding officers will take decisions based on the law and the guidance around the law, and the situation on the ground. I have been the elections Minister for only a few months, but I can see that there is an incredible amount of legislation and guidance in this area. That legislation and guidance provide significant prescription—it is important that there is consistency and clarity across the country when electoral events happen—but equally, guidance can never provide every piece of information for every scenario.

I take the point made by my hon. Friend the Member for Sleaford and North Hykeham and will feed it into our consideration, but it will be for the Electoral Commission to provide guidance and further information.

[Cat Smith]

The Minister will be glad to hear that the interventions have inspired another question from me. Will he confirm that the guidance is to be drawn up by the Electoral Commission? If so, the commission will be guided or influenced by the Hansard report of the Committee’s proceedings and the conversations we have had. However, after listening to the interventions that have been made from both sides of the Committee, it strikes me that a lot of pressure is being put on returning officers to interpret events. The Law Commission has been clear in its reports that the pressure on returning officers is increasing and the guidance is increasingly fragmented. We might be reaching a point at which the Elections Act is going to add to those complications.

Does the Minister have any concerns that encouraging people to be returning officers might be a challenge going forward, given their legal responsibilities, and the pressures of applying the law and interpreting events in polling stations? Indeed, I was not registered to vote at the last polling station I went to; I went with my partner. There were elections in Scotland and none in my part of England at the time. I think I jokingly said to him, “Vote Labour.” Can the Minster clarify that would not be a breach of the law? I am quite confident that he did not go and vote Labour.

[Lee Rowley]

I am grateful to the hon. Lady for her comments; she raises an important point. The guidance will be drawn up by the Electoral Commission in the normal way. As part of that process, there will be opportunities for people, including from outside this Committee, to make their views known. Ensuring that there are sufficient people to support both local and general elections is a long-term challenge within local government. Finding people to staff polling stations has been a general challenge for a number of years.

I have been talking to the Association of Electoral Administrators about the issue, and I spoke with Solace—the Society of Local Authority Chief Executives—only last Thursday. My colleagues and I will continue to do that. There are several challenges, but we are also looking at alternatives and ways to mitigate those issues. Local authorities are putting a huge amount of work into the preparations for May to ensure that the right number of staff is available, whether they are employed by the individual local authority or elsewhere in the normal way.

I hope that the guidance will provide clarity on some of those examples. I am a relatively smaller-state Conservative, but I recognise that, in certain parts of the law, it is important that there is sufficient proscription about what is happening. There should be sufficient clarity on the guidance, and enough consistency around the country for there to be no suggestion of a problem. I am sure that the Electoral Commission will read Hansard and take note of the hon. Lady’s point.

As my hon. Friend the Member for Peterborough indicated, clause 2 will ensure that the provisions cover Northern Ireland as well as England, given that elections are excepted matters. We have already talked about clause 3 to some extent. It will give the Government the opportunity to set out the day or days on which the regulations will come into force. That is what we talked about a moment ago with regard to guidance, clarification and ensuring consistency underneath the legislation, with time to work through the process.

I turn to a couple of additional points that have not been addressed so far. In her initial intervention, the hon. Member for Lancaster and Fleetwood talked about postal votes. She will be aware that there are further changes coming in under the Elections Act 2022. They will require, for example, people to reapply for postal votes every three years. I hope she can see that there is tightening going on in this place.

The Government will always look at other challenges, issues and opportunities going forward. As the hon. Lady outlined, there is a long-standing desire on the part of the Law Commission to look at how we can make this area more clearcut. The Government will continue to discuss it, and I hope that in time we can move in that direction. I know the hon. Lady will accept that this is a significant piece of work, and we need to think it through, as and when that may be appropriate.

Finally, on the point made by the hon. Member for Caerphilly, as my hon. Friend the Member for Peterborough indicated, there have been discussions with the devolved Administrations, although I am happy to provide separate information outside this Committee to answer the hon. Member’s specific question.

This is an important area of policy and an important proposal. Again, I congratulate my hon. Friend the Member for Peterborough on bringing the Bill forward and I look forward to it going on the statute book. As we have all indicated, both in this Committee and previously, clarification of the law in this area is important. That is why the Government are supporting the Bill, and I urge other Members to do so.

[Paul Bristow]

I do not want to talk for too long, but I will say a few words of thanks to close. I reiterate my thanks to the noble Lord Hayward and my personal admiration for him and the way he has pushed through this Bill. I also thank Councillor Tanner, who has been a source of advice and support on this, and thank all colleagues for serving on this Bill Committee, as well as the officials. Particular thanks go to the hon. Member for Lancaster and Fleetwood, who was one of the first to volunteer for this Committee. She shares my passion for these issues.

I thank everyone who has contributed to this debate. The hon. Members for Caerphilly and for Weaver Vale, and my hon. Friend the Member for Sleaford and North Hykeham made interesting points. I thank the shadow Minister, who made a good and powerful speech. The cross-party nature with which the Bill has been taken through Parliament shows this place at its best. We can produce good legislation when we all work together. Finally, I thank the Minister and the officials from his Department. This legislation is incredibly important. Today, we are upholding the integrity of our democracy.

Question put and agreed to.

Clause 1 accordingly ordered to stand part of the Bill.

Clauses 2 and 3 ordered to stand part of the Bill.

Bill to be reported, without amendment.

Leaseholders and Managing Agents

Lee Rowley Excerpts

Tuesday 28th February 2023 Westminster Hall

[The Parliamentary Under-Secretary of State for Levelling Up, Housing and Communities (Lee Rowley)]

Thank you for the opportunity to talk about this hugely important topic today, Sir George. I congratulate the hon. Member for Brent North (Barry Gardiner) on securing the debate. We have covered a significant amount of ground. I am not sure that I can do justice to the issue in the seven or eight minutes that I have if I am to allow the hon. Member a few moments to comment at the end, but I will try to cover as much as I can.

I am grateful to all hon. Members who have contributed. As hon. Members will know, there is a significant overlap between the people who are in the Chamber today and those who have stood up for their constituents and taken their concerns to the Department over the last few months. As hon. Members will know, we have been in correspondence on a number of occasions, and I am grateful to them for highlighting issues, particularly in my part of the portfolio, around building safety, in the Department for Levelling Up, Housing and Communities. I am grateful for their time and the efforts that they go to on behalf of their constituents in both those areas.

We have discussed two broad areas today. One is the broader situation with regard to leasehold and the reforms that are coming in, and the other is the more specific question of building safety. I will try to take those in two buckets, if I may, then talk about some of the specific points that hon. Members have raised. As numerous hon. Members have highlighted, we made a series of commitments from 2018 onwards on leasehold in general. Reform in this area is necessary, is important and needs to happen. That covers a number of things raised by the hon. Member for Brent North, and other matters.

As my predecessor, the noble Lord Greenhalgh, indicated, the Government have committed to abolishing marriage value at the earliest possible opportunity. On service charge transparency, the Secretary of State has highlighted the fact that we are absolutely committed to providing more information, for exactly that reasons that the hon. Members for Poplar and Limehouse (Apsana Begum) and for Ellesmere Port and Neston (Justin Madders) indicated: the importance of transparency in those discussions, so that people know what they are paying for when they are given bills and charges.

I have heard the comments about managing agents. We recognise that, as in all systems, particularly ones where there are multiple individuals and entities involved, there are people who are exemplars and who do things well, there are people who do things less well, and there are people who do things badly. It is important that we call out bad practice and we take the opportunities where we can and where it is proportionate and reasonable to do so, both now and in the future, to be able to reduce the propensity for bad practice. I know that my right hon. Friend the Secretary of State for Levelling Up, Housing and Communities will make that clear when we bring forward more information about our proposed leasehold reforms in due course.

In answer to the questions raised by the Opposition spokesperson, the hon. Member for Greenwich and Woolwich (Matthew Pennycook), while I cannot anticipate what will be in the package, we are committed to bringing forward those reforms. We have said that we want to undertake reform in this Parliament. There is still time to do that and my right hon. Friend the Secretary of State will provide more information in due course, when he is able to do so.

[Andy Carter]

This is a brief intervention. I have invited many of my hon. Friend’s predecessors to Warrington South. None have made it, because they have not been in position for long enough to get there. May I extend an invitation to him to come and meet some of the leaseholders who are facing problems in Warrington South, so that he can hear directly from them before the final piece of legislation is put forward?

[Lee Rowley]

I am grateful to my hon. Friend for his kind invitation to the north-west. I will speak to the Housing Minister, my hon. Friend the Member for Redditch (Rachel Maclean), who has been in post for a couple of weeks, because she is taking forward these specific points on leasehold and I want to ensure the right conversations are had with the right people.

I will respond to a few points on building safety, for which I am responsible in the Department; I am happy and keen to hear more about the issues that have been raised. Important points about significant increases in insurance were made, which we recognise and understand. The Association of British Insurers was asked to look at the issue a number of months ago and find a solution. I meet the Association on a regular basis—I did so most recently at the end of last week—and I will continue to do so. We hope that it will be able to bring forward a scheme on insurance in the coming months.

There was reference to lending. I hope hon. Members are starting to see a change with regard to building safety. I met all six big lenders before Christmas and we have come to an agreement with them through UK Finance. The market should now start to become more functional and successful again. I am receiving data from each of the banks on a regular basis—indeed, just a couple of days ago, I looked at the data I received from Santander and Barclays—in order to understand what is going on and how we can separate out, as much as we are able, the challenges that are known, understood and need to be remediated over a number of years, so that people can live their lives and get on with making choices about where and how they want to live. I welcome views from hon. Members in the months ahead about whether they have seen those changes.

I am conscious that I need to conclude in about two minutes. On building safety, my right hon. Friend the Member for Stevenage (Stephen McPartland) has been a stalwart; I give him huge credit for making progress on the issue with colleagues across the House, irrespective of their party. He made a vital point about lived experience; people have seen this, lived it and breathed it for many years. As the responsible Minister, I have tried to make visits. As my hon. Friend the Member for Ipswich (Tom Hunt), who is no longer in his place, indicated, I visited Cardinal Lofts and spoke to residents. I went to Wicker Riverside in Sheffield within a few weeks of becoming Minister, talking to leaseholders and people who were at the forefront; I appreciate the challenge and difficulty they face. That is reason why my right hon. Friend the Secretary of State is keen that we make progress. From the work we are doing on Vista Tower, my right hon. Friend the Member for Stevenage will know how important it is for us to call out bad behaviour and for us to make progress.

Finally, the hon. Member for Vauxhall (Florence Eshalomi) raised a case where charges have increased exponentially. Without knowing any of the detail, I would be very happy to receive additional information on that. I would be very happy, in principle, to come and visit, or to speak to those leaseholders. It is important, as a Minister, and for the Department, that we look at the macro level, at the changes and how that is occurring, and check that it is working in individual areas, so I would be very happy to see more information on that.

To conclude, these are hugely important issues that affect people’s lives, so I absolutely appreciate the points that have been made regarding both leaseholds and the reforms needed in general. I understand the urgency, and I hope that we can say something more corporately on that soon, particularly on building safety. We need to make progress on remediation, on top of the good progress that we have already made, but there is a long way to go. While I am in post, I am committed to trying to make as much progress as possible so that the people who are affected can get on with living their lives again, as we all want them to.

Draft Non-Domestic Rating (Rates Retention: Miscellaneous Amendments) Regulations 2023

Lee Rowley Excerpts

Monday 27th February 2023 General Committees

[The Parliamentary Under-Secretary of State for Levelling Up, Housing and Communities (Lee Rowley)]

I beg to move,

That the Committee has considered the draft Non-Domestic Rating (Rates Retention: Miscellaneous Amendments) Regulations 2023.

It is a pleasure to serve under your chairmanship, Mr Hosie. I realise that this is the big issue before Parliament today, so I shall focus on it.

Business rates are governed by a raft of secondary legislation that needs to be updated more or less annually to ensure that it reflects changes made to the rates retention scheme and to the structure of local government. The miscellaneous amendments in the draft regulations will ensure that for the forthcoming financial year, the retention scheme operates as intended and everyone receives the funding they expect.

The draft regulations make changes to four of the seven principal sets of regulations that govern the operation of the rates retention scheme. First, the Non-Domestic Rating (Transitional Protection Payments) Regulations 2013 provide for authorities to receive compensation where their business rates income is lower than it otherwise would be as a result of transitional measures put in place by Government. The draft regulations make a small change for 2023 and future years to ensure that the calculation ignores the newly introduced public lavatories relief, so that compensation is calculated and paid on the true cost of the transitional arrangements put in place following the revaluation.

[Mr Barry Sheerman (Huddersfield) (Lab/Co-op)]

I have a tiny point to make. Do the draft regulations cover the whole of the UK, just England, or England with Wales?

[Lee Rowley]

I had to check, but it is England.

Secondly, the Non-Domestic Rating (Rates Retention) Regulations 2013 provide for the day-to-day administration of the rates retention scheme. As part of those arrangements, the City of London is allowed to retain a small amount of business rates income outside the scheme in recognition of its low resident population and its limited ability to raise council tax income. The amount that the City is allowed to retain normally changes each year in line with the change to the business rates multiplier. In 2023, that multiplier is not changing, so the change before the Committee isolates the inflationary uplift and ensures that it is applied to the City offset. Without the change, the City would see no increase in the coming financial year.

Thirdly, the draft regulations make changes to the Non-Domestic Rating (Levy and Safety Net) Regulations 2013. Under the rates retention scheme, authorities may receive financial help if their business rates income declines. The cost of making the safety net payments is met in part by a levy on those authorities whose income is growing. The levy and safety net regulations set out in detail how such payments are to be calculated and make adjustments accordingly.

[Mr Sheerman]

The Minister is being very good at giving way, and being fast and getting through the business as we all want to, but as a newly appointed freeman of the City of London, may I press him? I hope the measure does not mean that the City of London gets special privileges, does it?

[Lee Rowley]

It is an accommodation within the existing regulations, as I understand it, given that the City of London is incredibly atypical in having large service requirements but a very low residential population. There has to be an accommodation somewhere in the processes for the realities in the City of London to ensure that it can still support the services it needs to provide for those visiting, living and working within the City.

[Nick Smith (Blaenau Gwent) (Lab)]

Does the Minister have an estimate of the benefit to the City of London of the particular opt-out that it enjoys?

[Lee Rowley]

I do not have an estimate, but I am happy to write to the hon. Gentleman with it. The principle behind the change has been in place for a number of years. As a result of freezing the multiplier, we are simply seeking to ensure the continuation of the situation that would otherwise occur had we changed the multiplier.

The regulations make changes to the non-domestic rating regulations on the basis of distribution of the levy account. I said a moment ago that safety net payments made to authorities whose business rates income has declined are paid for in part by a levy on those who have experienced growth. All levy and safety net payments are made to or from a levy account. Any surplus on that account can at year end be repaid to local government or carried forward against future deficits. If it is repaid, it is distributed to authorities as set out in the basis of distribution regulations. The changes we are making to those regulations pick up the changes to the structure of local government. They also ensure that those authorities will receive a share of the £100 million surplus held in the levy account that the Government announced in the local government finance settlement that it would be redistributing back to local authorities this year.

Although the changes are relatively technical in intent, they make a number of critical changes to the administration of the business rates retention scheme. Without them, authorities would find themselves without the income from the rates retention scheme that they anticipate and according to which they have budgeted. I commend the regulations to the Committee.

--- Later in debate ---

[Lee Rowley]

I thank the hon. Lady for her questions, which I will try to answer in a number of buckets.

I accept that the Government and the Opposition have a different views about how to approach business rates, and I recognise that we will not resolve that this evening, but we are trying to ensure that there are regular revaluations. We committed to that, and the Prime Minister—the former Chancellor and Minister for Local Government—has highlighted in his various guises the importance of regular revaluation. I think that is genuinely welcome, and it is important that we do that.

As a result of the changes that have been made, a multi-billion pound support package is coming that will provide significant support to businesses across the country—in particular for businesses such as pubs. It is important to highlight that we need to continue the business rate system. Labour Members talk extensively about how it does not work, but less about what they would replace it with, beyond the high level. We must ensure that the system is updated, that it has a significant amount of support within it, and that it works for the long run.

The hon. Lady talked about online businesses. That is obviously a challenging issue to get right, but I gently note that as part of the revaluation, there will be a significant uplift in business rate costs for some manifestations of online businesses—warehouses and the like—so I hope that the Opposition will welcome that.

On resources, it is important to note that part of one of the four changes in the thing we are actually voting on—we obviously talk about broader issues relating to business rates regularly—a significant amount of money is being redistributed to local authorities. I am grateful to the hon. Lady for confirming that she will not press these regulations to a vote. Where money is in the system—in the levy account—and is not needed because we think we can accommodate the coming year and beyond without having to retain it, we are giving it back to local authorities, which understand better what to do with it.

On new burdens funding and the City of London, I am happy to write to the hon. Lady and the hon. Member for Blaenau Gwent with more information after the Committee. I am grateful for the Opposition’s confirmation that they will not oppose the regulations and I commend them to the Committee.

Question put and agreed to.

Nationally Significant Infrastructure Projects: Action Plan

Lee Rowley Excerpts

Thursday 23rd February 2023 Written Statements

[The Parliamentary Under-Secretary of State for Levelling Up, Housing and Communities (Lee Rowley)]

Nationally significant infrastructure projects (NSIPs) spur growth, investment and regeneration throughout the country and are vital to achieving our levelling up ambitions. That is why I am pleased to publish a cross-Government action plan setting out reforms to the nationally significant infrastructure projects regime that will seek to streamline and speed up the consenting process.

The nationally significant infrastructure projects process, which operates predominantly in England and Wales, has served the UK well for more than a decade. However, the demands on the system are changing, and its speed has slowed. Government set out their ambition in the national infrastructure strategy in 2020 to make the infrastructure consenting process better, faster and greener and these ambitions were reinforced in the British energy security strategy. Our action plan is informed by extensive engagement with the sector which included a call for evidence on the operational review of the system that sought feedback from a wide range of stakeholders.

This action plan sets out the reforms that we will implement over the coming months to ensure the system can support our future infrastructure needs by;

Setting a clear strategic direction through national policy statements that are reviewed more regularly.

Bringing forward operational reforms that support a more streamlined consenting process and piloting a new fast track consenting opportunity.

Ensuring the system is better placed to meet our strategic environmental goals and actively address the environmental impacts of development.

Recognising the important role local authorities play in hosting and delivering new infrastructure as well strengthening community engagement in the process.

Improving system wide capacity and capability by moving to full cost recovery for key statutory consultees and the Planning Inspectorate.

I want to see real benefits to the consenting process being delivered as quickly as possible. Many of the measures set out in the action plan are already under way, and I want to see the benefit of the wider package of reforms come into effect as soon as possible. Following the publication of this action plan, the Department will consult on some the key aspects of our reforms in the spring and bring forward the key regulatory and guidance changes needed to deliver the reforms soon after.

A copy of the nationally significant infrastructure projects action plan will be deposited in the Library of both Houses.

[HCWS575]