Rating (Coronavirus) and Directors Disqualification (Dissolved Companies) Bill (Second sitting)

Luke Hall Excerpts

Committee stage
Tuesday 6th July 2021 Public Bill Committees

[The Minister for Regional Growth and Local Government (Luke Hall)]

Q Thank you both for your evidence this afternoon. You clearly both have a wealth of experience, so it is really useful to hear your thoughts. What has your experience been of how the scope and extent of MCC claims have evolved over recent years? Could you talk us through the changing landscape of using this type of appeal over the past few years?

David Magor: When this legislation was introduced, you saw various significant events that triggered MCC changes. When you are looking for things that are similar to covid, you perhaps look at the crash of 2008 and things like foot and mouth disease. These are factors that are taken into account when you are looking at the broad picture. The covid situation, as we all know, is quite unique. The normal material change of circumstance is an essential part of the overall evaluation process. You need to reflect the changes in communities and in the environment, such as buildings being demolished or empty and so on—the material changes that happen in every neighbourhood from day to day. There are roadworks and 101 different things. Those have been dealt with very adequately by the Valuation Office Agency. The agents, on behalf of ratepayers, put in the challenges under the new challenge and appeal process, and it has worked very effectively. It has ensured that the distribution of the rate is as fair as it can be when you have got a five-year cycle of revaluations.

The special circumstances that come to mind are the crash in 2008 and foot and mouth disease. It worked quite adequately but, of course, it was nowhere near on the scale of covid, and the impact of covid on the economic wellbeing of communities.

Adrian Blaylock: The only thing I would add is the position since the end of March 2020. From 1 April 2017 to 31 March 2020, just short of 160,000 MCCs were lodged against the 2017 rating list. By the end of June, that had grown to just over 300,000, so had almost doubled in that three-month period. By the end of March 2021, 568,000 MCCs had been lodged with the Valuation Office Agency. There has been a significant increase, and it is fair to say a good proportion of those will be related to the pandemic.

[Luke Hall]

Q A lot of the early feedback we received suggested the potential scale of the appeals was causing concern in local government. We started to hear talk from local government about potential savings to frontline services that would need to be made. Could you tell us your experience of the way local government started to approach that potential task, and whether that started to impact on budgeting and forecasts for councils in setting their budgets?

David Magor: Since the introduction of the rates retention scheme, local authorities have had to forecast the impact of changes in the valuation list from year to year when preparing their budgets. You started with 50% retention, and moved to pilot schemes of 75% and 100%. When you have a rates retention scheme that works in that way, if you make a mistake in forecasting the reduction in value, you will significantly affect the finances of the local authority and the budgeting process.

Every chief financial officer has to make a forecast of the impact of a change. They would have to make a provision against that forecast and, of course, provisions prevent you from spending money, because you are providing for an event that is likely to happen. Certainly, as far as forecasting for the 50% rates retention scheme was concerned, every time you looked at your rateable value and the changes in that over the forthcoming year, you were conscious that any forecast you made, 50% of that reduction in value would fall on your budget.

That was the way the retention scheme worked, and it created a great deal of concern because chief financial officers were making very significant provisions. As I said, making provisions curtails the local authority’s ability to spend. Elected members quite rightly get very concerned about that. Then the MCC checks and challenges came in, with the checks first. As Adrian said, the enormous number of checks has now reached half a million, and the challenges emanating from those are well in excess of 100,000. You are talking about a massive impact on the valuation resources of the list. Local authorities have to make provision for that.

Through this Bill you would remove that risk and, as the Chair said, transfer it to central Government, because you would fund it through a relief scheme. The real problem is whether the relief will be sufficient to meet the needs of the ratepayers who are expecting a reduction in rateable value.

Adrian Blaylock: That is right. The risk and the responsibility of a local authority to set aside sufficient funds to cover any potential losses to the rating list could be significant. If I can just give you some indication of where we were: at the end of 2019-20, local government had just short of £3 billion sat in provisions for alterations of lists and appeals. This is all pre-covid. This is nothing to do with the pandemic, just essential changes to the rating list. Every year, they have to forecast what they think they will lose in the forthcoming year and there is roughly £1 billion a year being added to that pot, regardless of covid. So the potential loss on top of those normal everyday changes to the rating list—well, I would not like to think what would happen to local government finances if it went ahead. You would need a significant level of provision to be able to carry that. We have already seen local authorities applying to MHCLG for capitalisation directions because they are struggling to pay the day-to-day costs of running their services. How many more authorities would need to go down that route if that is where we get to? That is what concerns me.

[Ms Marie Rimmer (St Helens South and Whiston) (Lab)]

Q There are three very specific exemptions to the restrictions on appeals set out in clause 1(5), inasmuch as the valuation decision must take into account the effects of covid-19 on the quantity of minerals extracted and the quantity of waste disposal from the property, along with the physical state of the property being affected. Do you think those exemptions are reasonable and are there any other circumstances that you feel should be included?

David Magor: I must admit that the Bill is very well framed. We have looked closely at the Bill, clause by clause, and it meets its specific purpose. The approach to dealing with the material change in circumstances and to withdrawing or removing the covid ones is very sound. I find the provisions of clause 1 fit for purpose and they meet the needs of Government. That is a relief, in the sense that it seems to be fair. Of course, it is important that in making decisions in relation to the clauses that you have mentioned the Valuation Office Agency is transparent and gives the ratepayer and ratepayer’s agent every opportunity to make their case for other matters that are outside the covid situation.

Adrian Blaylock: I have nothing to add to that. I agree with David.

--- Later in debate ---

[Navendu Mishra (Stockport) (Lab)]

Q Can you comment about how these provisions will affect local government’s income from business rates? We hear a lot about cuts to local government in the last 11 years, but how will this impact finances?

Sarah Pickup: These provisions mitigate against the need for having to make provisions against the material change of circumstances. In that sense, they are beneficial to local government, because it takes away that uncertainty, albeit we need the clarifications around timing and discretion as part of this.

If we stand back and think about business rates as a source of finance for local government and the Treasury’s fundamental review of business rates, they form 25% of local government income and are really important. Alongside council tax, business rates are one of the two main sources of funding, but where we stand now is that there is a whole patchwork of reliefs and new provisions for relief to businesses against their core business rates commitment. It means that the future is very uncertain. The way in which the next revaluation will go is uncertain and, arguably, while business rates have a role going forward, some significant reforms are needed to make them a stable source of finance for local government going forward.

[Luke Hall]

Q Thank you for your evidence: I know the LGA conference is happening today. Can you think back and tell us when the LGA first heard about the potential scale of losses through MCC challenges and appeals? What was the reaction of local government at that time? What issues were they raising with you and how widespread was the concern? What time did it start to build up?

Sarah Pickup: Gosh, it is really hard to recollect precisely; so much has gone on in the last year. It was probably about a year ago; it may be slightly less. There was a lot of discussion at the point when the Valuation Office Agency started to discuss how it might address these appeals. I think there might have been some leaks in the press. That is when the discussion started to come to the fore a bit more, because there were some quite substantial proposals around the adjustments to valuations that might go forward. I think there was an attempt to address this on a uniform basis, rather than deal with every appeal and address it individually. We have gone from there to this scheme which approaches the issue differently, probably more straightforwardly and in a more timely way, certainly in the short term.

The anxieties around appeals are ever present and this was just an addition to the pre-existing issue about businesses’ ability to put in appeals right up through a rating list with no time limit on it. The check, challenge, appeal process has made a difference to that, but we have not yet seen the end result of the number of appeals from the 2017 list, because the time window has not closed yet.

[Luke Hall]

Q It would be interesting to hear your view, from a local government perspective, on exactly why the LGA thinks that ruling out MCC appeals for councils provides extra certainty—I think that is what the LGA has said—and how big a difference that has made to councils and their planning of their finances.

Sarah Pickup: There is a greater degree of certainty, because they do not face a period of time of not knowing whether an appeal will be successful or not, nor the extent of that success, and therefore having to make additional provisions on their balance sheet. Instead, they have a scheme to operate that offers them resources to provide discretionary funds to local businesses, which is welcome. As we have said, there is still some uncertainty in relation to what the guidance says and whether the scheme delivers what businesses expect, and whether, if not, there is either a pressure on the council to fund beyond the resources that have been made available, or a pressure because businesses cannot manage without the relief that they had been expecting, and therefore some businesses start to fail.

[Seema Malhotra]

Q As a slightly different angle on this, I was just wondering about any contact that you may have had, or experience that you may have had, with the Valuation Office Agency at the moment, and whether it has the resources it needs for the work it is currently undertaking—its existing functions—as well. I would be very interested in your perspective on that.

Sarah Pickup: I do not have detailed knowledge of its precise funding at the moment, but over time, we certainly have made a case that we support the Valuation Office Agency being funded adequately to deal with the task in hand, because there has been a very big backlog of appeals on the books. It has been pulling those down, and the change to check, challenge, appeal has impacted on that. Nevertheless, there is still a backlog, and our fears were that if the Agency was not properly resourced, you would end up with overlapping backlogs of appeals from different rating lists creating ever more uncertainty and not really taking away that need for councils to keep assessing the provisions that they need to make on their balance sheets.

One of the things that we certainly would support is a time limit on the time when businesses can put forward checks, challenges, and especially appeals against any given rating list. We think that would help, and it is in place, I believe, in some of the other UK nations.

--- Later in debate ---

[Jeff Smith]

Q Can I follow up on a specific question that follows from something you said earlier? I was interested to hear you say that the hospitality trading levels in London are 20% to 30% of what they would normally be, and in the rest of the country it is around 60% to 70%. That is partly down to international travel, and I am guessing that there might also be areas—maybe coastal towns—that might be similarly affected by lack of footfall. I am wondering whether there is an evidence base for those regional or city-based variations that the Government might take into account in guiding the allocations, or is that a little bit too sophisticated to get into?

Kate Nicholls: It is certainly challenging to be able to get into, and I am not sure it would drill down as closely as local authority by local authority level, but there are certainly indications. You can measure footfall drops by high street data: there is good data from Springboard about footfall in our high streets, towns and city centres, as well as shopping centres. They are measuring it for retailers, but that would also apply to hospitality businesses. It is not just the international tourists: it is the offices, the work from home, and it affects different city centres differently according to the demographic that uses them. It is less to do with our coastal towns—they are benefiting from more domestic tourism and domestic footfall—but you are seeing it in London, Edinburgh, Glasgow, Manchester, and to a lesser extent Leeds, Sheffield and Newcastle. They are seeing a drop, but London is particularly badly affected because 70% of London hospitality is inbound tourism, and we are not going to see any pick-up in inbound tourism any time soon.

I think there are broad regional differences that you can apply: it is a very rough and ready crude assessment that you can place on it, but there is a possibility of looking at footfall data. However, I would urge the Government to look at the areas of the country and the constituencies where you have a disproportionately dense population of hospitality and tourism businesses—many of which will be SMEs—and where you have the supply chain businesses that support them. They tend to be local supply chains and to be geographically co-located, so that would be a good indicator of where that support needs to be directed.

[Luke Hall]

Q We are clearly moved to give 100% rate relief to many businesses with a £16 billion pot. Of course, I understand that some of the businesses you work with and represent will have been disappointed about where the line was drawn, so to speak. I just wonder, notwithstanding the point you made earlier in answer to the question about guidance, whether there is anything you would like local authorities to start thinking about as they start to draw up their own guidance schemes in response to some of the early challenges that have been faced by some of the businesses you will be working with.

Kate Nicholls: We would urge local authorities to work with us to identify themselves where the areas of greatest need are. One of the things that has frustrated a lot of our businesses is that there is a central message from Government, and it is not necessarily interpreted on the ground as fluidly as Government might have hoped. When you look at some of the local authority areas, we have had businesses that are clearly designed to be captured and covered by the support mechanisms that are available, but local authorities have often taken the view that if it is not directly specified in guidance and it is not a named company or a named type of business, they are precluded from using their discretion and being able to provide support to those businesses. That is the frustration that our businesses have had on the ground going forward.

It would be helpful if local authorities could be a bit more permissive in identifying the businesses that they know are hurting at a local level, rather than applying a prescriptive approach that says, “If your name’s not down, you’re not coming in,” or “Here’s a tick, you are covered.” That would help immeasurably in those businesses that tend to fall between the cracks because they are not clearcut: if you are a coach operator, are you a tourist business or are you not? A local authority should be able to understand its local area and know which ones are and therefore need to be helped, and which ones actually managed okay. Those are the kinds of areas in which we would like local authorities to use their own discretion, not wait to be told specifically by Government that they can help those businesses.

[Paul Scully]

Q Briefly, with my hospitality Minister hat on, and following on from that question, Kate, you will remember that Minister Huddleston and I wrote to local authorities asking them to use their additional restrictions grant before they access their top-up. Have you seen any evidence of any local authorities responding to that, either by giving more money to businesses on their books or by widening the base to fill some of the cracks that you are highlighting?

Kate Nicholls: There are a few notable exceptions, but you can measure on the fingers of fewer than two hands the local authorities and businesses we have been able to help that have had a positive response to that request. All too often, the response has been that the grants that we are talking about are closed, there is no more money, and they will get back in touch with the businesses if more money becomes available.

It is incredibly frustrating that you have this disconnect at a central level. We hear what is being pledged, and we hear and understand the work that is being done by Ministers to communicate to those local authorities, but the operators on the ground just get a “No”. Some local authorities have been more creative than others, and some have been more proactive than others, but generally speaking it has been a long, slow process, and it has been very difficult to get money out of the local authorities for the businesses that desperately need it. It has been too slow in being processed. We know, because of the work we are doing we are doing at a central Government level, that it is there and has been made available; it is just not cascading out.

Social Housing: Housing Ombudsman

Luke Hall Excerpts

Thursday 1st July 2021 Commons Chamber

[The Minister for Regional Growth and Local Government (Luke Hall)]

I congratulate and thank the hon. Lady for bringing this debate before the House. I know how important the provision of safe and decent social housing is to her. She has spoken passionately on behalf of Kwajo and so many of her constituents who want to see progress in the area, so I am grateful to have the opportunity to discuss this important agenda and set out what we are doing to try to improve the lives of social housing tenants.

Hearing the hon. Lady’s remarks, and seeing the news reports over recent weeks, has highlighted the plight of some residents of social housing who are struggling with unacceptable conditions and landlord services. These cases have raised critical questions for many people involved in social housing, which is why the White Paper—I will come on to that—is such an important step in addressing some of those questions.

Of the 23 million households in this country, 17% are in the social rented sector, with 2.5 million people renting from a housing association, and 1.6 million people renting from a local authority. People in social housing must be treated with dignity and respect, and have their complaints handled effectively. The recent cases we have heard about today highlight the fact that some residents are simply not receiving a quality service from their landlord. We heard about the terrible conditions in a Croydon council housing block, and the council has commissioned ARK Consultancy to carry out an independent investigation. ARK’s report assesses what went wrong, and sets out the steps that Croydon Council must take to address those failings.

The Regulator of Social Housing has concluded its investigation into the issues in Croydon, and found the council to be in breach of its consumer standards. The regulator is working with the council to ensure that it takes the necessary action to remedy those issues. It is also considering information received from Clarion Housing Association about the Eastfields estate, which we have heard so much about. It will form a view on whether there is evidence of systemic failure that would indicate a breach of regulatory standards.

The Government were appalled to hear and learn about the conditions on the Eastfields estate. Social homes must be safe and decent, and provide security and dignity for residents, who should be treated with respect. If things go wrong, there should be swift redress. In this shocking case those expectations were not met. I understand Ann’s anger, and I thank her for the work she is doing on behalf of residents.

A review of decent homes standards has begun, as has work to improve fire and electrical safety, and address harm from carbon monoxide. I understand that Croydon has accepted its failings in full, and the regulator is considering future progress. The Housing Ombudsman has an important role in improving residents’ experience of social housing. It experienced a big drop in the number of inquiries and complaints last spring, in 2020, due to the impact of the pandemic, but in recent months the number of complaints has significantly increased. Just over 6,000 complaints and inquiries were made between January and March this year, which is a 73% increase compared with the same quarter last year. Although some of those issues may have been deferred during the pandemic and stored up to be raised now, we cannot accept that this is a new normal. The increase underlines the need of landlords to adhere to the good practice set out in the complaint handling code. It is clear that some landlords have significant work to do to improve the standard of their homes, and the service they provide to their residents.

Croydon has highlighted issues of damp and mould in the Eastfields case, and the ombudsman recently issued a call for evidence to support investigation into that. That was in response to data that suggested a high rate of maladministration in those cases, and the significant impact that had on the lives of so many residents. The investigation will enable the ombudsman to make recommendations to help landlords improve their services. Despite the shocking cases highlighted in Croydon and Eastfields, there are positive signs of broader improvement in standards.

[Siobhain McDonagh]

How would the Minister resolve problems of damp and mould growth in a one-bedroom flat where there is a mum and four or five children? I do not think any landlord in the country could do that. We are desperate for Eastfields to be regenerated, and we completely support Clarion in its efforts to do that. That is the only way people on that estate will get to live in houses of the size they need. For those not at Eastfields, there is not the same way out.

[Luke Hall]

I thank the hon. Lady again for that point. I am always happy to discuss that in detail with her, including outside this debate, and I am happy to hear more about the individual cases she has raised that are so shocking and so worrying.

I think, however, that we are seeing some signs of broader improvements. If we look back to 2019, we see that 12% of dwellings in the social rented sector failed to meet the decent homes standard. That is down from 20% in 2010. This is lower than the proportion of the private rented sector and owner-occupied homes that fail the standard, but it is still not good enough. That is why we are reviewing the decent homes standard as a key plank of our “The charter for social housing residents: social housing white paper”, which we published in November 2020.

The charter for social housing residents states that every social housing resident in England should be able to expect to be safe in their home, should know that their landlord is performing, should have their complaints dealt with properly and fairly, should be treated with respect, should have their voice heard, should have a good-quality home and neighbourhood to live in, and should be supported to take their first step to ownership. The reforms set out in the White Paper, which underpins the charter, will drive change throughout the social housing sector, as the hon. Lady said, ensuring that everyone working in the sector listens to residents and treats them with courtesy and respect.

We know that many landlords are passionate about putting their residents first and we want to see that approach replicated throughout the sector. That is why our reform package will transform social housing redress and consumer regulation. It will improve the quality and safety of social homes and rebalance the relationship between landlords and tenants. The regulator of social housing will be given stronger powers to proactively monitor and drive compliance with consumer standards, with regular inspections of the largest landlords and new tenant satisfaction measures to help assess landlord performance on issues such as repairs and complaints handling. The White Paper emphasises the importance of the ombudsman service in ensuring that residents can access swift and fair redress when things go wrong. It sets out the range of measures to increase the ombudsman’s impact in driving up standards, including through closer working with the regulator of social housing.

The hon. Lady mentioned the Housing Ombudsman Service, which is compulsory for social landlords, and its membership consists of over 2,300 landlords representing over 4.5 million individual households. The White Paper has set out how we have already acted to enable the ombudsman to take decisions more quickly. If we look at the ombudsman’s average determination rate for formal investigations in 2019-20, we see that it was below its six-month target at 5.8 months. It is the first time that that target has been achieved, so it is positive news that the performance is better than it has been, and we are trying to speed up access to the ombudsman by removing the democratic filter that the hon. Lady talked about through the building safety Bill. That will allow residents with unresolved complaints to have direct access to the ombudsman rather than having to wait eight weeks or approach an MP, a councillor or a tenant panel for a referral. That is an important point that she and many others have raised many times before.

We have strengthened the ombudsman’s powers so that it can take stronger action against landlords and better support residents when things go wrong. There is a very high level of compliance by landlords with compliance orders: 95% within three months and 99% within six months. Landlords were ordered to pay compensation to residents totalling £412,000 across the year, and last year three quarters of residents who sought support with an informal resolution of complaints said that the ombudsman had helped them.

Since the White Paper was published, the Housing Ombudsman, Richard Blakeway, has made further progress in responding to the White Paper agenda, including establishing a 600-strong resident panel that will involve residents in the development of the ombudsman service, in publishing a framework that sets out how the ombudsman will look beyond individual disputes to identify problems that need to be addressed across the sector, and launching that investigation into damp and mould—an issue, again, that I know is very important to many of the hon. Lady’s constituents—as well as by publishing determinations in individual cases and the landlord performance data, and issuing complaint handling failure orders when landlords fall short of the standards set out in the complaints handling code that we published last summer.

We know, however, that many of the most egregious complaints never reach the ombudsman, meaning that some residents miss out on the support that could be offered to them. That is why the White Paper sets out plans for a communication campaign to ensure that social housing residents know how to complain when things go wrong and that they have confidence in the process. Earlier this year, we ran a five-week campaign on social media with the slogan “Make Things Right”. That campaign has helped to improve awareness of the ability to raise these issues and has raised confidence in the process. We are absolutely committed to implementing the reforms that were laid out in our charter for social housing residents. They will deliver transformational change for social residents. We continue to develop our proposals on social housing regulations and want to legislate as soon as is practicable.

[Siobhain McDonagh]

When? What month? What year?

[Luke Hall]

Unfortunately, I cannot give the hon. Lady a date at this point, but we want to do it as soon as we are possibly able to, and when the proposals are right and ready. We share her urgency and passion to get this done, but we want to develop our reforms and get them in the right place. We will legislate as soon as we can, but of course we understand the urgency of the issues that she has raised. I know how important this is to the hon. Lady and her constituents, and that there are so many issues that could be addressed. Perhaps I could meet her to talk about some of them in more detail in the coming days and weeks, so that we can hear more about her constituents’ concerns. I am very grateful to her.

We want to ensure that the system for handling social housing residents’ complaints is fit for purpose and accessible, and that it drives improvements for individual complainants and for the benefit of all the residents in a community. That is why we are taking action to ensure that the social housing sector is better regulated, that residents have better and faster access to redress, and fundamentally to rebalance the relationship between landlords and residents.

The charter for social housing residents sets out what every social housing resident should be able to expect. The measures set out in the White Paper will ensure that those expectations become a reality for all residents.

Question put and agreed to.

Building Safety

Luke Hall Excerpts

Tuesday 29th June 2021 Commons Chamber

[The Minister for Regional Growth and Local Government (Luke Hall)]

May I begin by putting on record my thanks to all hon. and right hon. Members who have contributed to today’s debate? It has been a passionate and extremely well informed debate. I know that everybody here agrees that we all want every home built in this country to be decent, to be safe and to be secure, and that has been echoed right across the House today.

It also feels especially poignant to be speaking on this subject shortly after the fourth anniversary of the tragedy at Grenfell Tower. No community should ever have to go through what victims and their families have suffered. That is why we have been taking action to ensure that remediation takes place as fast as possible, with funding targeted to where it is needed most. It is why we are taking action not just to make existing homes safer, but to fix the system to ensure that new homes are designed, built and kept safe to ensure that a tragedy such as Grenfell never happens again.

I thank the Chairman of the Select Committee for opening the debate in such a rounded and informed manner. He did so in comprehensive style, providing a long list of questions, which he very kindly suggested that he might put to me in writing. I will try to address some of them in the course of my response, but if I do not catch all of them, I will ensure that they are answered in writing.

A number of colleagues raised the issue of cladding remediation. We believe that it is unacceptable for leaseholders to have to worry about the unaffordable cost of fixing unsafe cladding systems, which, through no fault of their own, were put on their buildings. That is not proportionate and it is not fair. I understand the frustration, the worry, the heartache and the anger that the issue must cause to so many people. Wherever we are able, we will provide support to protect leaseholders from large-scale cladding and remediation costs. It will protect them from the costs of replacing unsafe cladding and make sure that people are safe and feel safe in their homes.

[Andy Slaughter]

Will the Minister give way?

[Luke Hall]

I hope the hon. Gentleman will forgive me, but I must get through the many points that have been raised. I want to try to answer as many as I can and leave time for the Chairman of the Select Committee to sum up. If I get through all the questions, I will certainly give way.

We are trying to take a safety-led approach. We have prioritised high-rise buildings of 18 metres and above, a point that was raised a number of times today. We have put in place a funding package of more than £5 billion for the building safety programme. That is the largest ever Government investment in building safety and it has been designed particularly to accelerate the pace of work on remediating the highest-risk and most expensive defects related to unsafe cladding such as ACM cladding and high-pressure laminates, first filling in where developers or building owners have been unable or simply unwilling to pay. Despite many of the challenges of the past months, we have made significant progress. Over 95% of high-rise buildings with unsafe ACM cladding identified by the beginning of last year have now been remediated or works are on site right now getting on with the job. Some 15,000 homes are now clear of unsafe ACM cladding, with the work finished.

Support goes well beyond ACM cladding removal. Where there are buildings that have other unsafe cladding systems, we are taking measures to protect residents’ safety and their exposure to disproportionate costs. Our building safety fund will remove unsafe non-ACM cladding on high-rise buildings, get that cladding replaced, and get it done as fast as possible. Over 1,000 decisions have been made. Despite many building owners failing to provide the basic information required, we have already allocated over £400 million, with 685 buildings now proceeding with a full application. With the announcement in February of an additional £3.5 billion of funding being made available, we will soon be able to extend that support to even more affected households. The public funding does not absolve the industry from taking responsibility for failures that led to unsafe cladding materials being put on these buildings in the first place. We expect responsible organisations to live up to their obligations. Where they have not, we have supported, and will continue to support, enforcement actions to compel them to do so.

We are also determined to ensure that these high-rise buildings are somewhere decent, safe and secure, and can be bought with a mortgage sold without unnecessary red tape and insured at a fair price. The lending and insurance industries continue to be risk-averse when it comes to high-rise residential buildings. That is why we are working to inject a more proportionate approach into the market, and that is bearing fruit. The majority of lenders—about 80% of the mortgage market—now take a less risk-averse approach to the assessment of high-rise buildings.

I am pleased that the guidance from the Royal Institute of Chartered Surveyors means that nearly half a million flat owners will no longer need to go through the onerous process of requesting an EWS1 form. Recent data from one of the major lenders suggests that an EWS1 already exists for 50% of mortgage applications where one has been requested, and we are working to ensure that this picture continues to improve. Lenders are also reporting that fewer flats require an EWS1, and of that those that do, many do not need expensive remediation work to be carried out. This will make a huge difference to house owners and potential buyers as well.

For buildings that might need further investigations, we are making that easier by providing nearly £700,000 of funding to train up to 2,000 surveyors, working with the British Standards Institution to set standards and develop a bespoke insurance model to ensure that surveyors can continue to pick up this work. We recognise that access to affordable building insurance for high-rise buildings is an issue, and we are working with the industry to support market solutions. Some have already decided to step into the market for new customers, and of course we want others to follow.

The hon. Member for Edinburgh North and Leith (Deidre Brock) raised the issue of building industry contributions. We have been clear that building owners and the industry should make buildings safe without passing costs on to leaseholders. Owners should consider all routes to meet costs, protecting leaseholders where they can—for example, through warranties and recovering costs from contractors for incorrect or poor-quality work. We have seen many responsible developers and building owners doing this. Taylor Wimpey has set aside £165 million, Barratts £82 million, Persimmon £75 million, and Bellway £130 million. But where companies have not lived up to their responsibilities, it would be unfair for taxpayers, many of whom are not homeowners themselves, to foot the bill. That is why we have announced a new developer levy and a new tax ensuring that the industry makes a fair contribution to the cost of remediating historical safety defects. That will target developers seeking permission to build higher-rise buildings in England under the new regime that we are introducing through the building safety Bill, and we have already set out to consult on a new tax that would be levied on the largest housing developers.

I note the suggestion by my hon. Friend the Member for Kensington (Felicity Buchan) of a tax on building products. I thank her for that and I am happy to discuss it with her further. A number of hon. Members mentioned the building safety Bill, and the hon. Member for Sheffield South East (Mr Betts) asked when it will be published. I know he hears the word “imminent” many times, but this truly is imminent, and I can assure him of that.

We must ensure, as we look to the future, that nobody is put at risk by unsafe homes again. We must put in place proactive mechanisms for managing fire and structural safety risks, as well as ensuring that residents and leaseholders are kept safe and feel empowered to tackle safety defects and shoddy workmanship. That is what the building safety Bill aims to deliver through the biggest improvement to building safety for a generation. It will ensure greater accountability and responsibility for fire and structural safety issues throughout the life cycle of buildings.

Building on the Fire Safety Act 2021, the building safety Bill will establish a new building safety regulator to swiftly hold to account anybody who does not follow the rules. It will ensure that products used in the construction of buildings are bound by rigorous safety standards, and it will give residents a stronger voice in the system through the creation of a statutory residents panel, which will empower residents to influence and contribute to the work of the building safety regulator. Additionally, a new building safety charge will give leaseholders greater transparency about the costs incurred in maintaining a safe building in the new building safety regime, and the new homes ombudsman will improve redress for new build homebuyers, avoiding the need to pursue costly redress through the courts.

It is right that we have prioritised action on high-rise buildings, but where the risk to multiple households is greater when fire spreads, we are also acting decisively to remediate lower-rise residential buildings of between 11 metres and 18 metres. My hon. Friend the Member for Kensington again raised this issue, among many others. We are establishing a finance scheme to ensure that that cladding can be remediated where that is needed. It means leaseholders will never have to pay more than £50 a month. We are working now to develop the details of the scheme to ensure that it protects leaseholders, prioritises affordability and accelerates remediation. We will provide more detail on the scheme as soon as we are able to, and we are working hard to make progress now.

The right hon. Member for East Ham (Stephen Timms) talked about waking watch. We absolutely recognise that some leaseholders have been unjustly left picking up the bill for interim safety measures. That is why the Secretary of State announced a £30 million waking watch scheme. This is paying for the installation of alarms in between 300 and 460 buildings, benefiting over 26,500 leaseholders, who are expected to save over £137,000 a month.

The hon. Member for Cardiff South and Penarth (Stephen Doughty) talked about engagement with the Welsh Government. The letter he sent on 23 June raised a number of issues, and I will absolutely make sure that it is responded to.

My hon. Friends the Members for Stoke-on-Trent South (Jack Brereton) and for Stoke-on-Trent Central (Jo Gideon) talked about the need to invest in Stoke-on-Trent to make sure that regeneration opens up brownfield developments in the city. They took this opportunity to outline the components of their levelling-up fund bid. I absolutely note that and their enthusiasm for the success of the bid, and I thank them for it.

Despite the challenges of the pandemic, we have made progress. We have accelerated support to drive forward the remediation of unsafe cladding systems. Over 95% of high-rise buildings identified at the beginning of last year as having unsafe ACM cladding are now having it removed—the works are under way there. We have strong Government support to protect leaseholders from unaffordable costs. We want to be fair to taxpayers, while reassuring lenders that remediation costs will not become unmanageable. This will be a complete overhaul of the regulatory framework for fire and structural safety, led by a once-in-a-generation change to the building safety framework, with sanctions to tackle irresponsible behaviour to ensure people are safe and feel safe in their own homes. We will continue to work tirelessly to bring in the lasting change we need so that everyone in our country lives somewhere that is decent, safe and secure.

[Madam Deputy Speaker (Dame Eleanor Laing)]

The House may wish to know that England have beaten Germany 2-0.

Rating (Coronavirus) and Directors Disqualification (Dissolved Companies) Bill

Luke Hall Excerpts

2nd reading
Monday 28th June 2021 Commons Chamber

[Madam Deputy Speaker (Dame Rosie Winterton)]

The reasoned amendment in the name of the Liberal Democrats has been selected.

[The Minister for Regional Growth and Local Government (Luke Hall)]

I beg to move, That the Bill be read a Second time.

The Bill contains two halves: first, a measure that changes the valuation assumptions that are applied when making business rate determinations in the light of covid-19; and secondly, a measure that will provide for the disqualification of unfit directors of dissolved companies. I will start with the first measure before moving on to the second.

The pandemic has presented significant challenges for businesses in all sectors. Our response has been of a similarly unprecedented scale, with more than £280 billion provided throughout the pandemic to protect millions of jobs and businesses. In this year’s Budget, the Chancellor announced an extra £65 billion of support for 2020-21 and 2021-22. The support we have provided for businesses included 100% business rate relief for all eligible retail, hospitality, leisure and military properties for 2020-21, at a cost of £10 billion. Combined with those eligible for small business rate relief, this means that more than half of ratepayers in England will have paid no rates in 2020-21.

At this year’s Budget, we confirmed a further three-month extension to the full 100% business rate relief for retail, hospitality and leisure businesses, followed by a further nine-month period of relief at 66% subject to the cash cap, at a further cost of £6 billion. That takes the total level of support provided to businesses by Government through relief from business rates since the start of the pandemic to over £16 billion.

That is an important context for the Bill, because as well as helping businesses through the pandemic, it is also important that we support local government with the critical role it has in supporting our communities. A vital part of that is the income that it receives from business rates, so while it is necessary to provide rates relief to businesses, it is important that we do so in a way that is targeted and that ensures that those who can still contribute continue to pay this tax.

With that in mind, clause 1 is concerned with how rateable values should be assessed during the pandemic. A business rates bill is calculated by multiplying the rateable value of the property by the multiplier, or the tax rate, and then applying the reliefs. The rateable value of a property is therefore, broadly speaking, its annual rental value at a set valuation date, which in the current rating list is 1 April 2015. All rateable values should therefore reflect annual rental values at 1 April 2015. This provides a consistent tax base for all businesses.

Of course, it is necessary to update the tax base, which is done at regular revaluations undertaken by the Valuation Office Agency. The next revaluation was originally scheduled for 1 April 2021, based on values at 1 April 2019, but last year we took the step of postponing it to 1 April 2023 to ensure that it better reflected the impact of the pandemic; Parliament approved that change by passing the Non-Domestic Rating (Lists) Act 2021. The Act received cross-party support, for which we were extremely grateful.

Outside those general revaluations, a ratepayer can still submit a challenge to the VOA on their property’s rateable value between revaluations for a number of reasons, such as to correct factual errors or reflect a material change in circumstances. If not satisfied with the outcome of the challenge, the ratepayer can appeal the VOA’s decision to the valuation tribunal. It has been an established principle of the business rates system that a material change in circumstances challenge can be made on the basis of a physical change to a property or its locality. For example, a successful MCC challenge could be made following the partial demolition of a property, or significant roadworks near a property that might affect its value.

However, following the pandemic, the VOA received high numbers of MCC challenges seeking a reduction in rateable value to reflect the impact of the pandemic. Of course, the MCC legislation, as first set out in the Local Government Finance Act 1988, was not designed with covid-19 in mind, and the MCC system has never been used in response to economy-wide impacts or shocks. It has therefore become necessary to clarify, as clause 1 does, the treatment of covid-19 in assessing rateable values.

We have been clear that relying on the MCC system to help businesses that need further support in the light of the pandemic is not the right mechanism. It would mean significant taxpayer support going to businesses with properties such as offices, many of which might be able to operate normally throughout the pandemic, at a time when we have provided significant support to those most affected.

For example, the workforce of a consultancy firm based in central London that was previously entirely office-based is likely to have been working largely from home since the start of the pandemic, but the business itself may have continued to operate throughout. Under the business rates appeal regime, it could have argued that its office space had undergone a material change of circumstances due to the reduced occupancy.

If that business’s appeal had been successful, it would have been awarded a business rates reduction, but it would not have been right for it to have a reduced tax liability on that basis, given that it had not actually suffered an economic impact. Relying on the MCC system to support businesses would also mean resolving disputes through the courts, which could take years and create additional uncertainty both for businesses and for local government, which relies on income from business rates to deliver vital local services.

The Bill will therefore ensure that the coronavirus and the restrictions put in place in response to it cannot be used as the basis for a successful MCC challenge or appeal. It will ensure that changes to the physical state of a property can continue to be reflected in rateable values as and when they occur, irrespective of whether they are a result of the coronavirus, but that the general impact of the pandemic on the property market will not be reflected until the next revaluation in 2023. Until then, all rateable values will continue to be based on the property market as at 1 April 2015. This approach is supported by the Public Accounts Committee, which has welcomed the financial certainty that such a measure gives to councils.

Clause 1 applies in England. Business rates policy is fully devolved, so whether the same legislation is necessary in Wales, Scotland or Northern Ireland is a matter for their respective Governments, but we have been working closely with the devolved Administrations regarding the Bill. Although the law in Wales is similar to that in England, different legislation applies in Scotland and Northern Ireland. Of course, the impact of the coronavirus may have been different, so whether the devolved Administrations choose to follow the measures set out in clause 1 will depend on the individual circumstances and choices made in those countries.

We have also supported businesses. We have put £16 billion of support into business rates for the pandemic, and we have announced a relief worth an additional £1.5 billion for ratepayers impacted by the pandemic who have not been able to access business rate reliefs. These new reliefs will be administered by local authorities and will be distributed according to which sectors have suffered the most economically, rather than on the basis of temporary falls in property value. This will ensure that support is provided to businesses in England in the fastest and fairest way possible, and we will continue to work with and support councils and local government to enable ratepayers to apply for the new reliefs as soon as possible.

The second part of the Bill deals with the abuse of the process whereby companies are removed from the register and dissolved. The large majority of company directors are responsible, passionate about their businesses and diligent. They act as effective stewards of the companies to which they are appointed, and I pay tribute to the directors who make such a valuable contribution to our economy and who have fought so hard over the past year to ensure their company’s survival, preserving the jobs and livelihoods of so many within their business and beyond.

Unfortunately there are exceptions, and the business community and the wider public must be protected from those individuals who abuse the privilege of limited liability. Those directors who act recklessly, irresponsibly or even criminally should expect to have to answer for their conduct. That means expecting to have their conduct investigated and, if they had done wrong, facing the possibility of being disqualified from acting as a company director for up to 15 years, depending on the severity of their misconduct. Disqualification protects the public from the actions of those who have demonstrated they are unfit to hold the position of a director of a company, and acts as a deterrent to reckless or culpable behaviour.

Evidence to support disqualification action comes from the investigation of companies and the conduct of their directors. The Secretary of State for Business, Energy and Industrial Strategy may investigate live companies through the powers contained in the Companies Act 1985, and also the conduct of the directors of insolvent companies through similar powers in the Insolvency Act 1986 and the Company Directors Disqualification Act 1986. If such investigations reveal evidence that a director’s conduct has fallen below the standards expected of someone in their position, a period of disqualification can be sought, either through a court application or through an under- taking given by the person to the Secretary of State. A period of disqualification protects the business community and the wider public by preventing the person from acting in the promotion, formation or management of a limited company. Breach of a disqualification order is a criminal offence, and an extremely serious matter.

As things stand, though, there is a loophole in the disqualification regime that some irresponsible directors have been able to exploit. It concerns the situation where a company has been dissolved without entering insolvency proceedings. Dissolution should not be used as an alternative to insolvency proceedings, but there is evidence that some directors have been using the process both as a way of fraudulently dodging the payment of company debts and of avoiding insolvency proceedings and the scrutiny of their behaviour that comes with that.

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

I support the measures that my hon. Friend is taking in the Bill. He mentioned fraud. I take it that the measures he is talking about would not negate the potential for prosecution of fraud where it was demonstrated that a company director had defrauded the taxpayer by means, for example, of a bounce back loan.

[Luke Hall]

I thank my hon. Friend for that point. He is an expert on these matters in this House, and I look forward to working with him as we deliver the Bill.

When a company is dissolved, the only way the conduct of its former directors can be scrutinised is if it is restored to the register, which is a costly process involving court proceedings. The Insolvency Service regularly receives complaints about the conduct of directors when a company has been dissolved, and many such complaints relate to the use of dissolution to dump the debts of one company, only for a new company to start up in the same business, often with the same directors and the same employees, and often even working out of the same premises. The debts dumped in this way are often large tax debts, awards made by employment tribunals or sometimes even debts owed directly to consumers.

The provisions in this Bill will close the loophole and allow the Secretary of State for Business, Energy and Industrial Strategy to investigate the conduct of former directors of dissolved companies and, where public interest criteria are met, to take action to have them disqualified from acting as a company director.

We consulted on this measure back in 2018 and it received a warm welcome from stakeholders. It has now become extremely important that we get it on to the statute book, so that it can support the business community and the wider economy in recovering from the impact of the pandemic.

This new power to investigate and seek disqualification of former directors of dissolved companies forms part of a package of counter-fraud measures seeking to target any fraudulent behaviour relating to bounce back loan schemes through the abuse of the dissolution process and to ensure the responsible use of public funds. Retrospective provisions in the Bill will mean that, when the new provision becomes law, conduct that is happening right now will become subject to investigation and could be used to support future disqualification proceedings even if the company is dissolved.

The Bill fulfils the Government’s commitment to introducing two important measures: it will make changes to the business rate appeals system and provide for the tackling of abuses associated with the process whereby companies are removed from the register and dissolved. These are two distinct areas of policy, but our approach is consistent. We will ensure the continued operation of a coherent framework, deliver certainty, support businesses to thrive, and allow councils to plan for their finances with confidence and continue to deliver the first-class services on which our communities rely. I commend the Bill to the House.

Covid-19: Community Response

Luke Hall Excerpts

Thursday 24th June 2021 Westminster Hall

[The Minister for Regional Growth and Local Government (Luke Hall)]

It is a pleasure to serve under your chairmanship, Ms Rees, I think for the first time.

I extend the thanks of everybody here today to the hon. Member for East Kilbride, Strathaven and Lesmahagow (Dr Cameron) for securing this hugely important debate. This afternoon, we have seen the best of this House and heard about the best of Britain. We are all grateful to her for the chance to put on the record our thanks to so many remarkable people right across the country. Today’s debate has given us the chance to talk about community champions and the incredible work they have done during their remarkable response to covid-19. I am very proud, and I am sure all Members have been proud, to stand here today and thank them, recognise their work and put it on the record that they were the backbone of our response to covid-19.

Even in the most difficult times for our country and the globe, we have seen the best in people and the best in our communities. Even in the midst of great loss, suffering and hardship, communities have come together to support each other with great bravery, spirit and love. Whether it was as part of community groups, charities or faith groups, or as individuals reaching out to each other and their neighbours, it is the strength of character of the people in our towns, villages and cities that has got us through this incredible period.

We have heard so many inspirational stories this afternoon, and there are so many unsung heroes, as the hon. Lady said. I will mention a few of them, starting by thanking the Blackwood and Kirkmuirhill Resilience Group, and Lesley, who has clearly done so much work to deliver flowers, to order in those fish teas, which I am extremely jealous about, and to organise the online bingo—that sounds absolutely incredible. We are equally grateful to the East Kilbride litter pickers and Alice. It is fantastic to hear about the passion and pride that they have shown for keeping the community clean over the last year and a half. I cannot begin to say how grateful we all are.

We have heard some incredible stories about how groups have utilised online technology to support people with their mental health, including the incredible work done by Trust Links over the last year. We heard about the work by those in the Nantwich Buddies support group and what they do collecting medicines and providing support, and it is incredible to hear that they are starting the poppy trail and a scarecrow trail. I cannot wait to visit and see that. It sounds absolutely incredible, and I thank them for the work that they are doing.

We have heard that Peterborough is the caring city. I have heard that said many times before, but today we really saw that through the examples, including Food for Nought and the Norfolk community fridge. A really important point was made about those who volunteer to give up their time for childcare to ensure that key workers can still get to work and support the health service and our key services. We have heard the same about Manchester, Gorton, where community groups run online virtual drop-ins to support mental health, and my huge thanks go to them, too.

We have heard about the Insch resilience group in Scotland and the excellent work that it does. I thought that the story we heard about the community in Huntly, who had a gas outage on 2 February and another a month later, and were experiencing temperatures of minus 5° but all came together to support each other and vulnerable people through local food groups and share information online, was really fantastic.

We have heard about the spirit and determination in York to ensure that nobody is ever left behind, about the focus on community, and about the work done by Age UK to reach out so many of the constituents of the hon. Member for York Central (Rachael Maskell). I am pleased to hear about the volunteer centre and how beneficial it will be.

We have heard how in Durham, the rotary club has been supporting people with PPE, and we have heard about the work of Cheesy Waffles to support young people. My thanks go to them.

We have heard about Clare Allington-Dixon and her team in Coventry North East. They have been teaching cooking skills to people during the pandemic. What a fantastic way to support the community, by encouraging people to make better use of their food through such a difficult time. We have heard about the Summer of Sunflowers and the work that Matt is doing spreading literal growth right across the community and the country.

The SNP Front-Bench spokesperson, the hon. Member for Glasgow North East (Anne McLaughlin), spoke passionately. She was nervous that she would sound like a community DJ taking requests, but she did not, I can assure her. She sounded like a passionate representative of her community and her country, talking about the types of community groups that have contributed so much, including housing officers, youth workers, the volunteers who were giving back so much that they almost became full-time workers, Margaret and what she was doing, the Brunswick youth centre and the parish church in Springburn. We are really grateful to them for everything that they have done.

I also want to say something about rough sleeping. We have heard so much about the incredible work in Southend to support people in the Everybody In scheme, the street homeless charity in Ealing that has done such incredible work, and the Garden House in Peterborough, which has contributed so much. Looking at the Government’s response to the pandemic, we see that one of the most important pieces of work carried out was to support rough sleepers, and the work that has not been praised enough as part of that is the volunteers’ response. Volunteers were out there, night after night, day after day, supporting rough sleepers who, in some cases, had for years been nervous about engaging with the council or with volunteers. The volunteers really stepped up and supported people during that time, meaning that by May 2020, 15,000 people had been supported into accommodation and were receiving help and support, often for the first time in years. That was, of course, an important part of the national Government response, but I think it shows the alignment with volunteers and how that can really deliver the best for our society.

We saw the same with shielding, as we have heard. Volunteers helped shielding individuals by delivering food, providing support and just phoning them up to make sure that they were okay. Although the Government work is hugely important, the most remarkable response to the pandemic was surely on the ground, as we have heard. It was the willingness of individuals to step up and go the extra mile, be it for friends, neighbours or simply anybody in need, regardless of whether they had met before. It was truly heart-warming, and the scale of the volunteer response was unprecedented. As we have heard, more than 12 million people across the UK delivered support during this pandemic, which is incredible to behold.

We also saw how almost 2 million people delivered support and services as NHS volunteer responders, completing millions of tasks and supporting 171,000 people at risk from covid. My thanks go to them as well. In addition to the volunteer response through the formal channels that we and communities have helped to organise, we saw a huge growth in informal volunteering—people stepping up to help others when they saw need, whether through collecting shopping, walking dogs, gardening or checking in on neighbours. You name it, someone in this country volunteered and did it over the past year and a half.

Throughout our country, we saw communities rapidly mobilising to help local people, especially those who were particularly at risk or who were hit the hardest by isolation. That shone through, certainly in my experience as a constituency Member of Parliament. We saw more than 2.5 million people volunteer with 4,000 mutual aid groups. That is a unique grassroots movement, the likes of which we have never seen before.

We have seen communities in all corners of our country demonstrate their resourcefulness and adaptability by working on their individually unique strengths. Despite the daily challenges and difficulties for so many people during such an incredibly difficult part of our country’s history, many people took their first steps into volunteering. Many new volunteers got involved for the first time—over 4.5 million people.

Although many millions of people were mobilised and joined volunteering for the first time, we should take a moment to recognise the people who normally volunteer and do so much but who were constrained because they were shielding during the pandemic. Many such people found new and innovative ways to support others throughout the last year, be it through getting to grips with technology or just phoning up people and keeping in contact in ways that they had not done before. I can imagine how it felt for people not to be able to be involved or offer support in the way that they wanted, but that adaptability has shown real resilience. The national effort saw volunteers spring up from less traditional places in some respects, and I pay tribute to everybody who did so much.

We have the chance to thank communities, organisations and individuals for what they have done, and to thank people who have volunteered in any way over the past 18 months. I want to put on the record and promote the Prime Minister’s Points of Light awards, which recognise all the work that has been done by those at the forefront of the response to the pandemic. The hon. Member for Bradford West (Naz Shah) talked about Captain Sir Tom Moore. Who can forget the incredible and inspirational example that he set the rest of us in this country?

We have heard a lot about faith groups. I extend my thanks to our faith communities for what they have done during this pandemic, including Moncrieff parish church, Colston parish church and the others that we have heard about. Faith groups have risen to the challenge by providing services in a way they have not done before and offering solace, comfort, advice and support through a multitude of different support services. We have seen examples of groups from all faiths delivering food and supporting people who were shielding. I really believe that faith communities have been a linchpin for many people by providing pastoral care and support networks, especially for older and more vulnerable people, and even continuing some forms of informal education for people who did not have access to the same external services during the last year or so. Yes, faith communities were already undertaking much of that work, but it increased in scale, passion and determination. We all put our thanks to them on the record.

The hon. Member for Bradford West talked about the role of volunteers in the vaccination programme. I join her in thanking all volunteers for the work that they are doing, and I ask for their kindness and forgiveness to just keep going. They are helping us—our whole country—to light the way towards the better days that are now within our grasp. We need everyone’s support to signpost communities to verified sources of important information about the vaccines, and we must continue to reinforce positive messages.

I also put on the record my thanks to civil society. The Voluntary and Community Sector Emergencies Partnership, made up of over 200 community organisations, has supported the covid response, helping to map unmet need and improve emergency response through new data platforms. The response really has been incredible. We have provided clear support with £750 million for charities, social enterprises and the voluntary sector, ensuring that civil organisations, including those at risk of financial hardship, continue the incredible work they did before and throughout the pandemic. The Ministry of Housing, Communities and Local Government has provided £23 million of funding to 60 councils and the voluntary sector to expand their work and to support those most at risk from covid.

I want to leave the hon. Member for East Kilbride, Strathaven and Lesmahagow some time to wind up the debate, so I thank all hon. Members here today and, on the Government’s behalf, everyone who has done so much in every corner of our country. Volunteering is a vital part of our national identity, and that has only increased over the past year. I agree with the hon. Lady who said that when we start to build back better we will be holding the sacrifice that others have made over the past year and a half at the forefront of our minds.

Levelling-up Bids: North Somerset

Luke Hall Excerpts

Wednesday 23rd June 2021 Westminster Hall

[The Minister for Regional Growth and Local Government (Luke Hall)]

It is a pleasure to serve under your chairmanship for the first time, Mr McCabe. I congratulate my hon. Friend the Member for Weston-super-Mare (John Penrose) on securing this debate. He spoke with eloquence and passion about the importance of supporting his constituency and the need to level up in Weston-super-Mare. His desire to support his community is shared by all parts and corners of this Government and certainly by the Ministry of Housing, Communities and Local Government.

Levelling up is a crucial part of our Government’s agenda. We are committed to unlocking economic prosperity across all parts of the United Kingdom. That is why we will publish the levelling-up White Paper later this year. We will set out bold policy interventions to improve livelihoods and opportunities in all parts and all corners of the country. It will set out the next steps in our plan to enable more people to get on in life without feeling that they have to leave their hometown or home community just to get the job or types of services they want.

We want to address these long-standing geographical inequalities. We want to deliver economic opportunity and improve livelihoods in all parts of the country so that, wherever someone is born, they have the chance to achieve what they want to in life. That means creating new, good-quality jobs. It means boosting training, productivity and skills in places that have seen economic decline and the loss of industry, and not through a broad, one-size-fits-all approach, but by nurturing different types of economic growth and building on the strengths that different types of places and communities have.

Nowhere is more important in these types of conversations and debates than places such as Weston-super-Mare. We have heard about how skills and wages lag behind the average in the south-west and many other different parts of the country. That is why the levelling-up fund as a concept is such an important vehicle for investing in communities just like Weston-super-Mare. We want to work with councils such as North Somerset Council to invest in the type of everyday infrastructure that my hon. Friend outlined, regenerating town centres and high streets, investing in transport and supporting cultural and heritage assets right around the country. That is a key part of the levelling-up agenda. It is about local communities and councils such as North Somerset determining and identifying their own priorities and using the funds as vehicles to develop and submit proposals and to level up in their area. It is about empowering communities.

The deadline for bids was last Friday. We have received significant interest from right around the country. The assessment process is just starting, but of course we were delighted that North Somerset submitted its bid last week.

We have heard some information about the proposal this afternoon and it is important for us to assess its impact. It is interesting to hear about the transformation of the pier building and the Tropicana Weston, two of the historic buildings that bookend the north and south end of the pier, which is so important to the town and to the regional tourism economy. It is also about bringing back into use vacant spaces in the main shopping area in Weston, helping to create new employment spaces and enhanced wayfinding and connections through the town centre.

I completely understand the passion and importance associated with these bids. I understand my hon. Friend’s belief in them, his desire for them to succeed and the importance he places on the potential to transform Weston’s future, enabling economic growth, improving the town’s economic resilience and tackling deprivation.

The bids focus on regeneration, town centre improvements, cultural assets and transport improvements. They accurately reflect the themes of what we are trying to achieve with the fund, so I thank North Somerset for its bids. I also thank my hon. Friend and my right hon. Friend the Member for North Somerset (Dr Fox) for their support for them and for making clear how important they are to the community. I hope they understand that I cannot comment too much further on the bid itself today. However, we will certainly work to the timescales set out in the prospectus, ensuring that the decisions are delivered in a timely way.

On the levelling-up fund’s methodology, the bids will be assessed against the criteria set out in the prospectus and the strongest bids will be shortlisted. My hon. Friend and my right hon. Friend note that Weston-super-Mare, which is part of North Somerset, falls into category 2, despite it having similar characteristics to a number of category 1 places. When we designed the fund we tried to purposely make sure that councils are able to target the pockets of deprivation within their local authorities, as my hon. Friend has identified.

In the case of North Somerset’s bid, two supportive MPs have helped to shape a bid within a council area, as will be noted as part of the process. The bid aims to tackle the most deprived part of the local authority area. That is noted as part of the assessment process. We will look at how the bid addresses challenges in the town and whether they relate to issues to do with health, unemployment or the availability of well-paid jobs for people living in Weston-super-Mare. The focus on tackling deprivation in Weston is in line with the objectives of the fund.

The methodology that sits behind the index of places is set out in the prospectus that we published on gov.uk. It is based on the metrics covering places’ need for economic recovery, regeneration and improved transport connectivity, as clearly identified by my hon. Friend in his speech. Those metrics do not determine either the outcome of the bid or the place’s eligibility to bid. Again, we certainly take account of the fact that two Members of Parliament have supported the bid, targeted at a pocket of deprivation. I do not know if that warrants a statue in Weston-super-Mare—a sandcastle, perhaps.

My hon. Friend also raised a point about the indices of multiple deprivation and asked about them not being included in the methodology of the fund. That is an important point. We considered looking at the IMD as part of the index, but it is important to consider that IMD does not represent in all circumstances a one-size-fits-all approach to measuring economic need. It does not completely accurately reflect, in this circumstance, the policy outcomes of the fund that we have established, which is about transport, high street and cultural regeneration. There are some things that IMD does not consider—for example, productivity. Raising productivity is a key part of what the fund is trying to address. Therefore, IMD was considered but we think that the way in which the indexation was set up is ultimately right.

My hon. Friend also referenced the UK community renewal fund, which is another important funding stream that this Government are delivering. We think it will improve the overall funding landscape available to places like Weston-super-Mare. We have tried to establish a one-year transition programme that is free of some of the shackles and bureaucracy of the EU structural funds, to allow places to design bids to tackle the problems that they identify. The £220 million fund will be available to communities next year.

We have received North Somerset’s £2.8 million bid. It includes a number of employment-based bids, including tailored support for jobseekers in the most deprived communities. That will be noted. Among the proposals is a financial inclusion project, a network of community hubs in rural areas and targeted business support, so we were interested to receive that. It sets out how, taken together, these will all work to create new education and training opportunities that will lead to the establishment of new local businesses and help to steer people towards the right employment and education opportunities.

I want to highlight the importance of the role of Members of Parliament in this process. This debate is a prime example of the way in which we have designed the fund to put such importance on Members of Parliament coming together, bringing communities together, including local authorities and local stakeholders, and acting as facilitators in the debate. My hon. Friend the Member for Weston-super-Mare and my right hon. Friend the Member for North Somerset have highlighted that they have managed to do that in Weston-super-Mare, working together to tackle the challenges in the way they have outlined. We have given MPs the opportunity to write formally in support of bids, and we have received that letter from my right hon. Friend and my hon. Friend.

[John Penrose]

The Minister is being very helpful and is showing that his Department is already getting to grips with the details behind the bids, so I thank him for his remarks so far. Could he just make sure that in the five minutes or so that are left, he focuses on the point about priority areas? He has been helpful on that topic, but I am still not quite clear whether starting from a priority area 2 designation automatically relegates us to being a long way down the list of projects being considered, or whether the other factors that I have talked about and which he has also mentioned—very carefully and fulsomely—will allow us to vault up the list of eligible projects and get a better showing in the eventual decisions on allocations.

[Luke Hall]

It is really important to say that that indexation is just one part of the wider assessment process. Yes, the categorisation—category 2 in this case—is taken into account, but the assessment also takes into account a number of other factors, such as the support of Members of Parliament. I think it is really noteworthy that two Members of Parliament are backing a bid that is targeted at the areas of deprivation. I urge my hon. Friend to look at the information on gov.uk, which clearly sets out that the categorisation is just one part of the assessment process. Yes, the weighting has an impact, but so do the bid’s strategic fit, deliverability and value for money. Those are all important parts of the process. It is not solely determined by the categorisation level 2.

I would also like to remark on the importance of other investment in North Somerset, outside of just those two streams of funding. Across the south-west, the Government are investing over £400 million in the region through the getting building fund, the future high streets fund, and the towns fund, which is delivering so much for the south-west. If we look at the business support that we have put into North Somerset, for example, we see £73 million of support for businesses and business grants. We have also ensured that Weston has benefited from the getting building fund. I think it is receiving a £1.7 million investment in the town centre, as part of the wider £13.5 million package across the area, for shovel-ready projects in Weston.

The need for regeneration and investment in the high street is also evident in so many of our communities. The funding that has been allocated is already going to be supporting the vacant Weston General Stores site, creating new work spaces for entrepreneurs, micro-manufacturing, events and community spaces. That will help to breathe huge new life into the town centre as well, so that is not to be underestimated. Residents can also look forward to the reopening of the Portishead rail line for the first time in 50 years. That is going to be a vital transport link between North Somerset and the surrounding employment areas.

Of course, these interventions—the levelling-up fund, the community renewal fund, the getting building fund and the other policies I have outlined—build on the £200 million we have invested across the wider area in recent years to support housing, skills and transport. That includes the two state-of-the-art training centres providing work-focused education at Weston College, the almost £12 million with which we have supported the Food Works innovation centre near Weston—a regional centre of excellence in that growing sector—and the major town centre transport improvements, including new cycle and pedestrian links across the town centre. There is huge investment in the region, and in Weston-super-Mare as well.

I hope that some of my remarks have helped reassure my hon. Friend that a number of factors go into the assessment of this bid, and it is not just the category place that determines the outcome. I very much look forward to seeing all the detail of the bid. We have had a number of them and we now have to look through them in detail. I know that he is as passionate as I am about levelling up in communities in the south-west and, of course, in Weston. As we have set out, we want every community to have the opportunity to shape its own future through locally designed solutions. I very much look forward to working with him on doing that as we look forward to the road to recovery for Weston-super-Mare.

Question put and agreed to.

Oral Answers to Questions

Luke Hall Excerpts

Monday 14th June 2021 Commons Chamber

[Greg Clark (Tunbridge Wells) (Con)]

What recent discussions he has had with the Secretary of State for Environment, Food and Rural Affairs on the performance of waste collection authorities.

[The Minister for Regional Growth and Local Government (Luke Hall)]

We have set a national ambition to recycle 65% of municipal waste by 2035. Councils will have a crucial role in meeting that target, and my Department will continue to work with the Department for Environment, Food and Rural Affairs and local authorities across the country to improve recycling rates, reduce emissions and reduce the amount of waste ultimately sent to landfill.

[Greg Clark]

Will my hon. Friend join me in paying tribute to our bin men and women, who worked magnificently throughout the covid crisis, even at the risk of contracting covid during the worst times of the pandemic, to keep us safe, actually collecting a bigger volume than usual? Is he aware that in Tunbridge Wells and Tonbridge and Malling, there are growing concerns about the management of the waste contract by the company Urbaser, with collections missed and roadside litter uncollected? What can he do to put pressure on that company to meet the performance standards that it has agreed with the local authorities?

[Luke Hall]

I thank my right hon. Friend for his question and for the opportunity to pay tribute to our waste collectors and the work that they have done right across the country throughout the pandemic, keeping our communities clean and helping to keep them safe, too. Of course, it is for councils themselves to decide how best to meet their commitments and how to manage the performance of their contractors, but my right hon. Friend’s voice carries significant weight. I am sure that his point has been heard loud and clear. I hope that it is resolved as quickly as possible. I know that these are extremely important issues for his constituents and for residents across the country, and of course I am happy to meet him to discuss the matter in more detail.

[Dawn Butler (Brent Central) (Lab)]

If he will take steps with Cabinet colleagues to ensure the permanency of the covid-19 memorial wall.

--- Later in debate ---

[Chris Elmore (Ogmore) (Lab)]

What steps he is taking to measure the effectiveness of the (a) community renewal fund and (b) levelling-up fund.

[The Minister for Regional Growth and Local Government (Luke Hall)]

Through the levelling-up fund and community renewal fund, we are investing more than £5 billion in people, infrastructure, the regeneration of town centres and high streets, upgrading local transport, and investing in cultural and heritage assets. These funds will include high-quality evaluation, which is crucial to understanding the types of intervention that best support places to level up, right across the country.

[Chris Elmore]

I have tabled written parliamentary questions on this, which the Minister is yet to answer, but he also knows that I support the levelling-up fund, in that it is the only available funding on the table. Therefore, I want to work with the two local authorities in my constituency to ensure that we put forward the best bids for Ogmore constituents. Will he set out when the second and third funding round deadlines will be announced by him, or by the Secretary of State, so that local authorities can plan and ensure that they put the best possible bids forward for communities, because for many local authorities the 18 June deadline is simply too tight? I want to work with the Minister, and I would really welcome some constructive engagement to ensure that we get the very best for my constituents.

[Luke Hall]

I thank the hon. Gentleman for the way in which he has asked his question. There will be further opportunities for local authorities to submit bids into the fund through subsequent rounds, and we are publishing more details about how the levelling-up fund will operate from next year later in this year. I was pleased to understand that his local authority, which I believe is in category 1, will be submitting a bid by 18 June. I hope it will be making good use of the £125,000 capacity funding that we are providing it with, which I know will help it to work closely with us and build that strong relationship with the UK Government. I look forward to receiving its bid, and I am always happy to meet him to discuss it in more detail.

[Jeff Smith (Manchester, Withington) (Lab)]

It is now nearly two years since the Prime Minister announced the towns fund, yet 30 towns have only just received confirmation of what funding they will receive, 26 towns still have not received any response to their bid, and precious few projects that have been bid for have been completed. So will the Minister commit to publishing a report on which areas are receiving funding from the towns fund, the levelling-up fund and the community renewal fund, which have missed out, and the impact of any projects that have actually been delivered?

[Luke Hall]

I thank the hon. Gentleman for his question and welcome him to his place; representing local government on these Benches is the greatest privilege that any of us could ask for, and I look forward to working with him constructively. On the towns fund, the details are already in the public domain on all the towns we have supported and announced town deals for. He rightly says that a number are still awaiting the outcome of their deal, and their details are also in the public domain. We are still in the application process for the levelling-up fund and for the community renewal fund, so we have not got a definitive list of bids that are in, but I very much look forward to working with him. The levelling-up fund and the community renewal fund are important opportunities for our constituencies, right across the country, to invest in upgrading the critical infrastructure that is so important to our constituents.

[Mr Richard Holden (North West Durham) (Con)]

What steps he is taking with Cabinet colleagues to promote home ownership.

--- Later in debate ---

[Martin Docherty-Hughes (West Dunbartonshire) (SNP)]

What recent discussions he has had with Cabinet colleagues on the (a) levelling-up fund and (b) UK shared prosperity fund.

[The Minister for Regional Growth and Local Government (Luke Hall)]

The levelling-up fund and the UK shared prosperity fund are core parts of our levelling-up agenda. I regularly speak to my ministerial colleagues about both funds, and those discussions will inform our levelling-up White Paper and the UK shared prosperity fund investment framework, which we plan to publish later this year.

[Martin Docherty-Hughes [V]]

I thank the Minister for that answer. Like many other Members, I have been involved in discussions with my local authority regarding the levelling-up fund; however, it occurred to me last week that there was something of a democratic deficit in the process. Given that the fund can be used in a number of policy areas that are devolved to the Scottish Parliament, why is there no mechanism for councils to formally consult their Scottish Parliament representatives on the issues? Will the Minister advise what his Government are doing to ensure that projects associated with the fund are realised with as much collaboration as possible with the democratically elected Government of the people of Scotland?

[Luke Hall]

The hon. Gentleman is clearly working hard on his bid for the levelling-up fund. There is absolutely nothing at all to stop his council consulting with or speaking to the Scottish Government before it submits its bid; it is absolutely welcome to do that. At the heart of these funds is localism. It is about local authorities and communities working directly with the UK Government and building that strong relationship with communities in Scotland, which we think is a key part of this process. We are investing billions of pounds and want to work closely with his community. I absolutely encourage his council to engage with the relevant Government.

[Mr Speaker]

We go to Patricia Gibson, the SNP’s spokesperson.

[Patricia Gibson (North Ayrshire and Arran) (SNP)]

While the Minister claps himself on the back at the munificence of these various funds that he is talking about, he may wish to reflect on the fact that there is not one new penny of money available, so let us not pretend.

The EU structural funding allocations in the devolved nations and the spending in the areas covered by the levelling-up funding and the strategic priorities fund previously had the direct involvement of Ministers from the devolved nations. How can the Minister now justify cynically insisting on a centralised Whitehall-led approach, cutting out the directly elected Governments of the devolved nations from spending decisions in their own countries in devolved areas of responsibility?

[Luke Hall]

I must point out this continued factual inaccuracy. There is new money going in this year through the UK community renewal fund. Some £220 million is being invested to trial new priorities and projects ahead of the introduction of the UKSPF. As I just said to the hon. Member for West Dunbartonshire (Martin Docherty-Hughes), the local authorities in Scotland are absolutely able to consult with the devolved Administrations. We will be speaking to the devolved Administrations at the shortlisting stage of the bids to seek their advice and to see whether the bids conflict with anything that they are delivering, or with any of their policies. We are investing billions of pounds in these projects: in infrastructure; in community renewal; in transport; in regeneration; and in high-street refurbishments. This is something that the nationalists should be welcoming, rather than trying to find unfair grievances.

[Patricia Gibson]

The Public Accounts Committee delivered a damning verdict on the towns fund, saying that the Minister’s Department had

“not been open about the process it followed and would not disclose the reasoning for selecting or excluding towns”—

for funding. In view of that, what specific measures will the Minister announce today to ensure that the distribution of the levelling-up fund and shared prosperity fund will be both transparent and free from political bias, unlike the towns fund?

[Luke Hall]

The answer to that is that it is all published on gov.uk and it has been for months now. Clearly, the nationalists cannot reconcile themselves to the fact that this Conservative Government are supporting communities in Scotland that they have let down for so many years. We are investing billions of pounds in people, infrastructure, regeneration, transport, and high street refurbishments. We are delivering on the ground, building new relationships and binding together our precious Union.

[Esther McVey (Tatton) (Con)]

What recent guidance the Government has provided to local authorities on opening up the high street in the context of the covid-19 outbreak.

Community Renewal Fund and Levelling Up Fund in Wales

Luke Hall Excerpts

Tuesday 8th June 2021 Westminster Hall

[The Minister for Regional Growth and Local Government (Luke Hall)]

It is a pleasure to serve under your chairmanship, Ms Rees, for the first time I believe. I thank the hon. Member for Newport West (Ruth Jones) for securing this hugely important and timely debate. It has been a constructive and informed debate about the issues that we face in delivering these funds. The one thing that has definitely united every contribution today is that everybody in the Chamber wants to secure the best possible future for their constituencies and their communities. Despite differences of opinion, we all agree about the importance of delivering for Wales.

As a Government, we are absolutely committed to unlocking economic prosperity across all regions of the United Kingdom. That is why we believe in levelling up as a central part of our economic agenda. As part of that, we want to address long-standing economic inequalities and deliver opportunity for people, regardless of where they are born or grow up. We want everyone to have the same access to life chances.

A number of both thematic and technical questions have been raised in the debate, and I will try my best to answer as many of them as possible. I want to touch on a large number of them. For the first time in years—decades, maybe—we can provide direct financial support to regenerate towns, high streets and communities right across the country through the United Kingdom Internal Market Act. I think people want to see that type of investment in cultural and heritage assets and high street regeneration, which are so critical to levelling up. Those powers are in addition to the existing powers of the devolved Administrations, and we want to work very closely with them to make sure that they are used to the best effect. We are very conscious that effective relationships in the UK Government—between my Department and Ministers in MHCLG and other Departments—will be critical to making sure that we level up in the way that we intend. That has been a big theme of this debate.

I do not agree with the assertions that we have not engaged with the Welsh Government or local authorities during the course of the development of the funds; we have been engaging with the devolved Administrations and local authorities since 2016, when we started holding engagement events to look at the design of the successor to the EU structural funds. We have held a number of those events right around the United Kingdom, with more than 500 stakeholders attending, including a number of them in Wales.

We held four events in Cardiff and one in St Asaph in January 2019, which Welsh Government officials attended. A key theme that came through in those sessions, including in points made by the Welsh officials, was the need to reduce the bureaucracy of EU funding; another was to make sure that we have the opportunity for collaborative projects across boundaries in Wales. The sessions in Cardiff looked at similar themes, including how to administer the UK SPF and the investment priorities for Cardiff. We held those events with Welsh external experts from a number of different sectors: rural development, business, higher education, the voluntary sector, the community sector and, of course, local authorities.

We also looked at the findings of the Welsh Government’s consultation on replacing EU structural funds. We were very supportive of their recommendation for local authorities in Wales to have a greater role than was available under the delivery of EU structural funds. That is at the heart of the approach we are trying to take here. It is not just about the involvement of the Welsh Government—that is hugely important—but about local authorities, communities and others. That is a key part of this work. We think local authorities can come up with creative local solutions to local issues. That is exactly what we are trying to achieve with this fund.

Hon. Members were right to highlight the fact that we need a constructive relationship with the Welsh Government moving forward. We absolutely want that, which is why we are setting up an inter-ministerial group with the Welsh Government, to have a regular forum to discuss these matters and make sure that there is open dialogue about the importance of these funds. We are also engaging with the Welsh Local Government Association, which I am meeting next week.

The hon. Member for Caerphilly (Wayne David) asked, importantly, whether we will prove that we will engage by visiting constituencies. I would be absolutely delighted to cross the bridge, which is in my constituency, and meet him to discuss that further. The same offer, of course, goes to those on the Opposition Front Bench—I am always very happy to discuss these matters on a collaborative basis.

A number of questions about the levelling-up fund were raised in the course of the debate. It is a £4.8 billion fund that is a hugely important opportunity for our whole country to invest in infrastructure that matters. Those are exactly the things we have heard about during the debate. At least £800 million of the levelling-up fund will be invested in Scotland, Wales and Northern Ireland over 2021-22 through to 2024-25.

I would reinforce the points we heard about the first round of funding, in which at least 5% of that allocation went to Wales. That means Wales will receive more under this design than if the money were Barnettised, because that money is a floor, not a ceiling. That point was well made by my hon. Friend the Member for Montgomeryshire (Craig Williams). This is categorically a better deal for Wales, offering a larger share of funding than would have been delivered otherwise. That is underpinned by the certainty of Wales being no worse off than under this approach.

There are other advantages, as this allows us to maximise the strategic benefits of the UK Government. We have seen how that has worked effectively over the past year or so in delivering covid support. As we heard today, we have also allowed, under the design of this funding, cross-border bids to come in. We heard about some exciting opportunities for cross-border bids. The levelling-up fund and the community renewal fund have been specifically designed to allow cross-border bids, which will be another tool to bind our Union even closer.

This process also allows more direct and greater local authority and community involvement. Hon. Members rightly talked about the index we published, which categorises different parts of Wales, and 17 of the 22 local authorities in Wales are priority places for the levelling-up fund. That will help all those local authorities in the bidding process.

I will try to answer a number of the technical questions that were asked. There was a recurring question about deadlines put in place for the first round of levelling-up funding. We have tried to put in place a system that allows local authorities to get moving on projects that they want to deliver in a timeframe. We heard from a number of Members about the need to demonstrate real delivery in the years ahead. That is what we are trying to achieve. We do not want to hold back local authorities that have projects that are ready.

From the engagement we have had with local authorities in Wales, it is appears that they are well prepared for the process: 13 of the 22 local authorities in Wales have told us that they are submitting bids to the levelling-up fund by the deadline later this month. Every single local authority in Wales has opened calls for projects for the community renewal fund. That is a higher percentage for both funds than any other nation in the UK. Local authorities in Wales are well prepared to get their bids in.

I would highlight the importance of the £125,000 capacity funding that we are providing to councils. That helps them to build a new relationship with the UK Government and to start gearing up to deliver the funding. We are excited about the opportunities that that brings. There were also questions about dates around funding, and we will be setting out details later this year. We do not have a specific date that I can give today.

Another question was about how MPs support bids in the usual way. It is important that MPs write to their local authorities, making clear which is their preferred supported bid under the levelling-up fund. If MPs want to support other bids that do not count as part of that weighting process, they can do so by writing to me or to the Secretary of State, or by supporting a bid through their local authorities, making clear which is their approved bid.

The question was asked whether once a bid is approved, that is it. It is a case of one successful bid per constituency in this Parliament. If that bid is successful and a project is being delivered in a constituency, it will not be eligible for a later round of funding. There was a technical question from my right hon. Friend the Member for Vale of Glamorgan (Alun Cairns) about feedback on the bids that do not pass the process. Places will receive feedback. We want to ensure that, if people do not pass the first stage, they are in a good situation to submit a second bid.

There was a question about the role of the Wales Office. On the funds we have already launched—the levelling-up fund and the CRF—where appropriate, we will seek advice from the territorial offices and the devolved Administrations at the shortlisting stage. We had questions about the IMD and why deprivation is not included. It is not included because it is not a catch-all that reflects the outcomes from the funds that we are trying to deliver, but I have heard that representation loud and clear. We heard a number of points about the UK community renewal fund and the need to improve on the delivery of EU structural funds. We absolutely take that point; a large number of Welsh local authorities are identified as priority places.

We heard from the hon. Member for Aberavon (Stephen Kinnock) about the importance of focusing on delivery. There are a number of lessons that we want to learn from the UK CRF, informing delivery of the UK SPF. I am afraid that I do not have time to go into them now, but I am happy to speak in more detail another time if the hon. Gentleman wishes me to do so. We are absolutely conscious of the need to make sure that this is positive investment delivered into Wales. We think that there is a big opportunity for the UK SPF to do that.

I have two last quick points. The first is on the MP’s role in delivering the funding, which was raised by my hon. Friend the Member for Bridgend (Dr Wallis). We think MPs have an important role to play in bringing together local stakeholder opinion, in helping to make the decision and in helping stakeholders to submit bids and work with Government.

There are so many more questions that we could have answered, and I am happy to meet any colleague here today who wants to talk about the matter in more detail. We believe that these are important funds, critical to the levelling-up agenda, that we are investing in exciting opportunities across Wales. I look forward to working with colleagues in delivering them.

Housing, Communities and Local Government

Luke Hall Excerpts

Monday 17th May 2021 Ministerial Corrections

The following is an extract from the Adjournment debate on 13 May 2021.

[Luke Hall]

In total, approximately £25 billion has been transferred from Government to businesses through covid support grants during the pandemic. Across South Yorkshire, that amounts to more than £487 million in support for businesses through local authorities, and more than £177 million for businesses in Rotherham.

[Official Report, 13 May 2021, Vol. 695, c. 386.]

Letter of correction from the Minister for Regional Growth and Local Government, the hon. Member for Thornbury and Yate (Luke Hall)

An error has been identified in my response to my hon. Friend the Member for Rother Valley (Alexander Stafford).

The correct response should have been:

[Luke Hall]

In total, approximately £25 billion has been transferred from Government to businesses through covid support grants during the pandemic. Across South Yorkshire, that amounts to more than £487 million in support for businesses through local authorities, and more than £77 million for businesses in Rotherham.

Local Government Pensions

Luke Hall Excerpts

Thursday 13th May 2021 Written Statements

[The Minister for Regional Growth and Local Government (Luke Hall)]

The Government are committed to public service pensions which are fair to public sector workers. In 2014, reforms were made to the local government pension scheme in England and Wales (the LGPS) to make the scheme more sustainable and affordable for the longer term. These reforms followed the prior recommendations of the Independent Public Service Pensions Commission and were part of similar reforms made across the public sector. The Government believe the 2014 changes to the LGPS balanced the interests of local government workers, employers and taxpayers fairly, and it remains the right package of benefits for the sector.

In July 2020, MHCLG consulted on changes to the local government pension scheme in England and Wales (LGPS). That consultation outlined proposals to amend LGPS “transitional protections” following a December 2018 Court of Appeal finding that similar provisions in the judicial and firefighters’ pension schemes gave rise to unlawful discrimination. Transitional protections had been introduced by the Government to exempt scheme members nearest to retirement from the impact of the reforms made to public service pensions in 2014 and 2015.

In the LGPS, transitional protection was provided through an “underpin”, providing protected members with the higher of their pension under the reformed, career average scheme and the pension they would have been entitled to under the previous final salary scheme. In our consultation, we proposed extending underpin protection to younger qualifying members.

The Government received responses from a variety of stakeholders. These were detailed and varied, and the Government are grateful for the consideration and thought given to the issues covered in the consultation. Responses were largely supportive of the key elements of the proposals.

After consideration of the responses, we can now confirm the key elements of the changes to scheme regulations which will be made in due course. The overarching aim is that the changes will address the findings of the courts and provide protection to all qualifying members when their benefits are drawn from the scheme. The key points are:

Underpin protection will apply to LGPS members who meet the revised qualifying criteria, principally that they were active in the scheme on 31 March 2012 and subsequently had membership of the career average scheme without a continuous break in service of more than five years.

The period of protection will apply from 1 April 2014 to 31 March 2022 but will cease earlier where a member leaves active membership or reaches their final salary scheme normal retirement age (normally 65) before 31 March 2022.

Where a member stays in active membership beyond 31 March 2022, the comparison of their benefits will be based on their final salary when they leave the LGPS, or when they reach their final salary scheme normal retirement age, if earlier.

Underpin protection will apply to qualifying members who leave active membership of the LGPS with an immediate or deferred entitlement to a pension.

A “two stage process” will apply for assessing the underpin so that, where there is a gap between a member’s last day of active membership and the date they take their pension, members can be assured they are getting the higher benefit.

Scheme regulations giving effect to the above changes will be retrospective to 1 April 2014.

A full Government response, containing further detail on the matters addressed above, and on other issues which were covered in the consultation, will be published later this year. This will include the Government’s decision on whether members will be expected to meet the underpin qualifying criteria in a single period of scheme membership for the underpin to apply.

It is anticipated that regulations giving effect to these changes will be made after new primary legislation in relation to public service pensions has completed its passage through Parliament, and the Government’s intention is that regulations will come into force on 1 April 2023.

Ensuring that future pension accrual for all LGPS members is on a career average basis from 1 April 2022 will mean that local government workers continue to receive some of the best pension scheme benefits available in the UK, but that provision is more sustainable for the long term and more affordable for the taxpayer.

[HCWS26]