Local Government Finance

Mark Pawsey Excerpts

Tuesday 5th February 2019 Commons Chamber

[Mark Pawsey (Rugby) (Con)]

It is a pleasure to follow the hon. Member for Liverpool, Riverside (Dame Louise Ellman), for whom I have the greatest respect.

I welcome the Secretary of State’s announcement that councils’ core spending power will increase by 2.8%, and that following a real-terms increase they will have £46.6 billion to spend on services for local residents. I know that councillors, officers and staff will greatly appreciate what he said about their working together to provide value for money for residents in recent years.

I also welcome the key principles that lie behind the Government’s approach. They include the principle of encouraging growth by providing housing and the business premises that will create jobs, and hence providing funds in response to the needs of local residents. I hope to demonstrate to the Under-Secretary of State for Housing, Communities and Local Government, my hon. Friend the Member for Richmond (Yorks) (Rishi Sunak), who will visit Rugby later this week, that our council is doing a brilliant job. The council represented by my hon. Friend and neighbour the Member for Nuneaton (Mr Jones) has been less effective.

In July last year, the all-party parliamentary group for district councils, which I chair, produced a report on district council finances. District councils provide 86 of the 137 essential local services in two-tier areas, and cover 40% of our population and 60% of the country by area. According to evidence that the APPG received from the representatives of 60 district councils who appeared before us during our Select Committee-type inquiry, there was real concern about the possibility that the majority would stop receiving revenue support grant by this year. We are delighted that the Secretary of State and the Minister have recognised the concerns about “negative grant”. It was feared that councils would give back to the Treasury more than they would receive from the Ministry for Housing, Communities and Local Government. District councils throughout the country are greatly reassured to learn that that will not now happen, and we are grateful to the Secretary of State.

Our report also asked for no further changes in the new homes bonus baseline rate. The new homes bonus has been a great success during our party’s time in government. It has encouraged local authorities to provide new housing, to fund infrastructure, and to compensate communities for the disruption that occurs when development is taking place. I am very pleased that the Secretary of State has acknowledged that and retained the current baseline, although there is a strong case for the removal of that 0.4% level. It is important to recognise that district councils’ housing completions have increased by 45% since the introduction of the new homes bonus.

There are a couple of other asks in our report. One, which has already been discussed today, is recognition of the role of councils in prevention. District councils, through their housing and planning authorities, provide services that are critical to the health of communities, such as leisure and recreation facilities and home adaptations, and they also tackle homelessness. I am delighted that my local authority, Rugby Borough Council, has allocated an increased budget for that work, and is working closely with the charity Hope 4 to deal with an issue that was also mentioned by my hon. Friend the Member for Nuneaton.

The local authority representatives from whom I have heard want more freedoms and incentives when it comes to raising revenue, but I should enter a word of caution in that regard. I have heard of too many local authorities that are turning themselves into property investors and property companies, often outbidding commercial organisations in the private sector, and I am worried about the level of expertise. Although it is entirely right that local authorities want to invest in their communities, I am worried that sometimes they are not sufficiently hard-headed.

The business rates retention reform is perfectly sensible. I ran a small business in Rugby between 1982 and 2008. I had always believed that what I paid in business rates went into my local community, but for much of that time, it did not. When I learned that, my question was, “What incentive is there for a local authority to do the right thing for growth and attract businesses?” We have turned that around and, like my hon. Friend Nuneaton, I am therefore disappointed that Warwickshire was not selected as one of the pilots.

We are considering a strong settlement today—it is a step in the right direction. Of course, there is always much more we can do, and I look forward to the Local Government Minister responding to the various points that have been raised in the debate.

[Several hon. Members rose—]

Tower Blocks: Dangerous Cladding

Mark Pawsey Excerpts

Tuesday 22nd January 2019 Commons Chamber

[Kit Malthouse]

I am more than happy to look into the specific situation and write to the hon. Lady once I have had a review from the Department.

[Mark Pawsey (Rugby) (Con)]

For a variety of reasons, local authorities with high-rise social housing are in the process of taking it down. That includes Rugby Borough Council, which is about to demolish two blocks at Biart Place, where there are structural concerns, and replace them with a larger number of conventional housing units. Does the Minister agree that this process should be accelerated?

[Kit Malthouse]

It is typical of my hon. Friend to fight for improvements for his constituents. I agree that for buildings built in the 1960s and ’70s—I do not know what period the buildings he refers to are—refurbishment often presents more challenges than demolishing and replacing them. In doing so, the consideration of a different formulation—including streets, squares, low rise and high density—may well be preferable to high rise.

Local Government Funding Settlement

Mark Pawsey Excerpts

Thursday 13th December 2018 Commons Chamber

[James Brokenshire]

Those council leaders should recognise the additional funding being allocated to councils up and down the country, but I know that further innovation, support and discussions are required. In terms of the spending review next year and the long-term arrangements, I want to see a sustainable future for our local councils and the delivery of services in the hon. Lady’s constituency and elsewhere. I am determined to deliver that.

[Mark Pawsey (Rugby) (Con)]

I welcome the Secretary of State’s announcement, and in particular the funding and clarity provided on two issues for district councils that have an agenda for growth, such as Rugby Borough Council. First, he has retained the threshold on the new homes bonus, which will continue to provide an incentive for councils to grant planning consent for homes. Secondly, he has eliminated the negative revenue support grant, which was a particular concern to many district councils, meaning that councils will continue to have an incentive to provide business growth.

[James Brokenshire]

I know that my hon. Friend is a champion of district councils, and I commend him for all his work. As I said in my statement, I hope there will be recognition that we have listened on a number of issues, including negative RSG and the new homes bonus. This is a settlement that councils can get behind, so that they can get on and deliver for their local communities.

Oral Answers to Questions

Mark Pawsey Excerpts

Monday 10th December 2018 Commons Chamber

[Kit Malthouse]

The whole purpose of a pilot is to answer the questions that the hon. Gentleman quite rightly raises. As for whether this is the best use of resources, I think that 9,146 housing association tenants in the area might agree it is, given that they applied for the funding. He is quite right that 6,000 were successful in the ballot, and we expect a smaller number than that to proceed to take advantage of buying their own home. Following the completion of the pilot, we will assess and answer those questions about where we go next.

[Mark Pawsey (Rugby) (Con)]

My constituent Joanne Betts of Cawston in Rugby was very disappointed not to be successful in the ballot. When does the Minister think she may have an opportunity to buy her home? She has of course contributed a large proportion of its cost through the rent she has paid over many years.

[Kit Malthouse]

My hon. Friend is quite right to raise the disappointment of his constituent. I am sorry that there were winners and losers in the ballot, but it was laid out early on in the pilot that the £200 million was capable of funding only a certain number of sales. We reckon that will be less than 6,000; we over-programmed it because not everybody will be able to proceed. Once the pilot is completed, and we can assess the results and the demand, we will be able to take a view on where we go next.

Gypsies and Travellers

Mark Pawsey Excerpts

Monday 10th September 2018 Commons Chamber

[Andrew Selous]

The police do need more powers—Bedfordshire police have asked for them, and I will talk about that shortly. My hon. Friend makes a good point, but we can also do better with the overall policy, which would lead to better outcomes for Travellers and settled residents.

[Mark Pawsey (Rugby) (Con)]

Rugby suffered particularly badly in the most recent travelling season. Despite extensive defensive measures, we have had 23 incursions on to council land, with people often cutting through locks. We have identified one particular issue: a lot of new houses are being built, and there are a number of recreation sites in the ownership of the developer rather than the local authority. Our local authority has become pretty good at defending its sites, but the developer—the private landowner—has not. This summer, there have been Travellers and caravans immediately adjacent to a play area in a new development, and children have not been able to use those facilities during the summer holidays. Does my hon. Friend agree that there should be a review of the powers available to private landowners?

[Andrew Selous]

My hon. Friend illustrates well the issues in his area. In mine, the travelling season goes on for a few months yet, but those issues are common to my area and, I am sure, those of many other Members.

Central Bedfordshire Council and Bedfordshire police want one overall planning policy for everyone, with true equality for all under the law and everyone’s human rights being protected.

Tenant Fees Bill

Mark Pawsey Excerpts

2nd reading: House of Commons
Monday 21st May 2018 Commons Chamber

[James Brokenshire]

My hon. Friend highlights the issues that go to the heart of the Bill—that is why I hope that it will command broad support across the House.

The Bill places a duty on trading standards authorities to enforce the measures it contains. It also makes provision to enable tenants and other relevant people to recover unlawfully charged fees. It prevents landlords from recovering their property, via the section 21 of the Housing Act 1988 procedure, until they have repaid any unlawfully charged fees. A breach of the fees ban will usually be a civil offence, with a financial penalty of £5,000. However, if a further breach is committed within five years this will amount to a criminal offence. In such a case, local authorities will have discretion about whether to prosecute or impose a financial penalty. Guidance on that will be issued. They may impose a financial penalty of up to £30,000 as an alternative to prosecution. Local authorities will be able to retain funds raised through financial penalties, with the money reserved for future local housing enforcement.

Finally, the Bill makes provision for a lead enforcement authority to provide oversight, guidance and support, with the enforcement of requirements on letting agents. This includes the ban on letting fees and related provisions.

[Mark Pawsey (Rugby) (Con)]

In respect of fees charged by letting agents, does the Secretary of State agree that there is something fundamentally wrong when a letting agent takes a fee from both parties in the transaction—the tenant and the landlord? That is just not right.

[James Brokenshire]

I understand. In many ways, that lies at the heart of the Bill—the way in which, effectively, there can be charges in two different directions. That underlines why these measures are important and why, to take my hon. Friend’s point, they are intended to promote fairness.

The Government will always stand on the side of people who are being ripped off and exploited and support them. We are taking this action to address inequalities in the lettings market and to create a market that is fair for consumers. By banning fees for tenants and capping deposits, we are delivering on our commitment to make renting fairer and more affordable. The Bill will make a real and meaningful difference to millions of tenants right across the country, especially for young people and families, and I commend it to the House.

--- Later in debate ---

[Mark Pawsey (Rugby) (Con)]

It is a great pleasure to speak in the debate. Like my hon. Friends the Members for Carlisle (John Stevenson) and for Harrow East (Bob Blackman), I am reminded of the work that we did in the Select Committee under the able chairmanship of the hon. Member for Sheffield South East (Mr Betts). It is also a great pleasure to see him in the Chamber this evening.

In its 2013 report, our Committee recognised and expressed concern about the imbalance between tenants and landlords and their agents. I support the Bill because it goes some way towards creating a balance between the parties involved in the taking up of a residential property tenancy. Back in 2013, we drew attention to the sharp practice and abuses perpetrated by some letting agents, and recommended that agents be subject to the same controls as their counterparts in the sales sector. Most residential property agents are involved in both sales and lettings, and in each instance the property involved will be someone’s home. It makes no sense for only one of those tenures to be covered by regulation. The Bill does not provide for the regulation of letting agents, and I am happy for that to come later, but it takes a step towards it in requiring them to behave in a more professional manner.

According to evidence given to the Committee, letting agents often failed to give renters up-front information about fees. I was therefore happy with our recommendation for a code of practice requiring agents to publish a full breakdown of their fees, which was introduced in the Consumer Rights Act 2015. The Bill goes further by banning nearly all up-front fees for tenants. That is welcome, and was a manifesto commitment from my party in the 2017 general election. It strikes me as wrong in principle for an agent to attempt to take a fee from, or make a charge to, both parties in a transaction. When it comes to the relationship between landlord and tenant, the letting agent is clearly acting on behalf of the landlord, with the landlord’s interests paramount. If up-front fees are banned, there can be no danger that unscrupulous agents will charge both parties.

A letting agent in my constituency has contacted me, arguing that through the national approved letting scheme the sector has reformed itself and the Bill is unnecessary, but it also suggests that there should be

“proper comprehensive regulation of all lettings and management agents”,

and states that agents currently provide services for both landlords and tenants, which I rather dispute. According to this agent, those services include offering tenants a choice of viewings at the convenience of existing and incoming tenants, referencing checks on tenants and their guarantors, and even explaining tenancy agreements.

I accept that some of that work supports tenants, but I see no reason why the tenants should pay for it. I believe that when a letting agents engages in those activities, he does so on behalf of the landlord, who—rightly and appropriately—pays him a fee for doing so. The agent is then remunerated for that work, and, in most instances, goes on to earn a regular income through the management charges involved in the collection of rent.

The national approved letting scheme suggests that agency-trained staff are trained to have the right level of knowledge to ensure that neither the landlord nor the tenant is disadvantaged. It fears that the abolition of fees will cause letting agencies to reduce staff levels and training budgets. I am not at all convinced by that. Before coming to the House, I employed a team of salespeople serving the catering trade, but I never expected the customers of my business to pay for the training of my staff. The NALS also suggests that rents may rise. I think that that neglects the principal feature of any market, which is that the prices set are based on supply and demand.

We know that the private rented sector has increased massively. In 2008 it made up 10% of all households. By the time we produced our 2013 report, it made up 18% of households, with 4 million households renting. Today, 21% of the market consists of the private rented sector, with 4.7 million households renting. That is the highest level for 30 years. More and more people are affected, and it is entirely right that the Government are taking action to protect them.

National Planning Policy Framework

Mark Pawsey Excerpts

Monday 5th March 2018 Commons Chamber

[Sajid Javid]

The hon. Lady may be aware of this—if she is not, I am sure it will be welcome news—but Homes England is discussing with her local authority exactly how it could help. I hope that is something she supports.

[Mark Pawsey (Rugby) (Con)]

The Secretary of State will know that Rugby is playing its part in delivering the homes the country needs from his visit to Houlton, a site of 6,200 new homes, planned and structured on a brownfield site. That is happening because Rugby has always placed a high priority on plan making, with the current plan under examination. Can he confirm that the new standardised approach to assessing housing need will not require any further changes?

Oral Answers to Questions

Mark Pawsey Excerpts

Monday 22nd January 2018 Commons Chamber

[Mrs Wheeler]

I thank my hon. Friend for referring to that interesting, innovative way to deal with such issues in the future, and I would be interested to see how the pilot in her area works. I congratulate her local area on being so proactive.

[Mark Pawsey (Rugby) (Con)]

In Rugby, council officers go out into the community to speak to rough sleepers and have recently placed four in supported accommodation, but more often than not offers of support are declined and only last week Warwickshire police charged two rough sleepers for aggressive begging. Does the Minister agree that it is vital that we provide support for those who are forced to sleep rough, but that it is important also to ensure that support goes to those who are in genuine need?

[Mrs Wheeler]

My hon. Friend is quite correct: this is a complex matter involving some inherent difficulties such as mental health issues, family breakdown, crisis and chaos, but equally, the state has to be fair-handed, and if people are begging aggressively and have properties of their own, the state will do what it has to do. Our focus is on rough sleepers who need the help most.

--- Later in debate ---

[Sajid Javid]

The crucial decision about any wider Yorkshire deal, if there ever is one, is in the hands of the local authorities concerned. We will be going ahead with the South Yorkshire deal, but earlier this week, as I am sure the hon. Gentleman is aware, we put forward a proposal to allow others, such as Barnsley and Doncaster, to take a different route, if they choose to do so.

[Mark Pawsey (Rugby) (Con)]

For the coming year, the Secretary of State has enabled councils to increase tax by 3%, compared with just 2% last year, but the cash limit has been retained at £5 when parity would be £7.50. That affects 88 small district councils. Will the Secretary of State consider a change?

[Sajid Javid]

A number of people have made that representation. I have listened carefully and we will keep the issue under review. As my hon. Friend knows, the draft settlement is just that at the moment, and we are looking at it carefully.