(4Â years, 5Â months ago)
Commons ChamberIt is a pleasure to follow the hon. Member for Southampton, Itchen (Royston Smith). I pay tribute to him and to the hon. Member for Stevenage (Stephen McPartland) for the work that they have done in this regard.
As others have said, we have made considerable progress, but it is a disgrace that, so long after the Grenfell tragedy exposed the scandal of cladding and fire safety issues, the Government have yet to provide the comprehensive response that would address all the issues faced by the thousands of leaseholders caught up in that scandal across the country. This evolving Bill—it was clearly still evolving yesterday, with a body of new amendments tabled by the Government—and, indeed, the Secretary of State’s announcement in January were significant steps, but they still fall short of the Prime Minister’s promise—and I think we all know how much that is worth—that no leaseholders should have to pay for the remediation of problems that are not their responsibility. Moreover, there is still too much uncertainty surrounding the Government’s proposals, which in itself is frustrating progress on making buildings safe.
Let me give just one example. Mandale House, in my constituency, faces a range of problems, and has secured £3.4 million from the building safety fund towards the necessary remediation. However, that falls short of what is needed, and Mandale House is left with £7.4 million to find in order to complete the work. The building’s original developer is one of many to have gone into liquidation, so the building management are on their own. The builders who had been scheduled to carry out the remediation works have now pulled out because of the uncertainty over whether they would be paid. That leaves no foreseeable prospect of the building’s being made safe. The building management are now worried that if the money they have been granted from the building safety fund is not used promptly, it may be withdrawn. I understand that that has happened in respect of other buildings, and I would welcome the Minister’s confirmation that it will not happen in this case—as well as his advice on how Mandale House leaseholders should now proceed to make their building safe.
The second point that I want to make concerns enfranchised buildings. I urge the Government to think again about Lords amendment 117, and I hope to persuade them to do so by citing the case of Wicker Riverside, another building in my constituency, whose residents were evacuated just before Christmas 2020 because of safety concerns.
It is not good enough for the Secretary of State to write to us, as he did yesterday, saying that the amendment highlights a real problem which must be addressed, but then to reject it without putting anything else in its place. I welcome his late announcement today of a consultation, but it should have been possible four years on, and after all the months of knowing that this remained a problem following the Government’s January announcement, to include an amendment that addressed the concerns and provided a solution that the Government felt was robust, along with the bundle of amendments that were added yesterday.
Let me illustrate the problem. In 2019, Wicker Riverside leaseholders took their freeholder to court after years in which building maintenance had been neglected, with the freeholder also failing to provide proof of whether the money collected through service charges had actually been spent on the building. The freeholder did not even turn up for the court case. The leaseholders then exercised their right to manage, and took over responsibility for the building. Now they are being penalised for doing so. By treating right to manage companies in the same way as institutional freeholders, the Government are excluding them from the protections that exist for other leaseholders, such as the remediation bill cap. I would like us to go further and provide zero liability for leaseholders, but the fact remains that the cap is there for some and is not there for those in Wicker Riverside. They should qualify for the same protection as others, because without it they will face unmanageable costs, and as a result the building will not be made safe.
The Government must set out their plans. If they will not accept Lords amendment 117, I respect their concerns, but the Minister needs to explain—and I hope that he will, in his closing remarks—exactly what they intend to consult on to ensure that right to manage leaseholders are protected. I hope the Minister will also give a clear guarantee that the outcome of the consultation will be that those leaseholders will have the protection that is being provided for all others.
Like many Members on both sides of the House, I welcomed the Secretary of State’s assurances to Parliament earlier this year that leaseholders
“are blameless, and it is morally wrong that they should be the ones asked to pay the price.”—[Official Report, 10 January 2022; Vol. 706, c. 283.]
However, despite the progress that the Secretary of State and Members across the House have undoubtedly made on this issue, there are still inadequate legal protections in the Bill to ensure that residents and leaseholders do not bear the costs of a crisis that they did not cause. I therefore support Lords amendments that seek to widen the scope of the Bill, including the amendment to reduce leaseholder contributions to zero, tabled by Baroness Hayman, and the proposal for an extension of leaseholder protections to buildings of all heights, tabled by the Earl of Lytton and supported by Lord Blencathra and Lord Young. I thank Members of this House for their hard work, and I thank all the cladding campaign groups, many of whose members are present today. I want to mention in particular Manchester Cladiators, which has supported residents throughout Greater Manchester through rain and shine in their hour of need.
Those campaigners have to keep going, because the sad reality is that many residents in my constituency still fall through the gaps in the proposals that the Secretary of State has outlined so far. Indeed, a recent survey by End our Cladding Scandal of more than 2,200 properties and buildings over 11 metres tall shows that more than 64% of leaseholders outside London and more than 83% of leaseholders in London will not be protected from the costs of non-cladding fire safety defects. The recent pledges from developers to remediate the buildings that they have built over the last 30 years sadly do not go far enough, and there is continued ambiguity about the treatment of non-cladding fire safety defects. Leaseholders in buildings that are under 11 metres remain unprotected, and there is still no funding commitment from house builders for the ÂŁ4 billion required for the remediation of buildings where the developer no longer exists. As we have heard today, there also remains a huge question mark over social housing.
Further to that, we still do not know what residents who have already received devastating demands for payment should do. There is no detail at all on how to recoup any sums of money already spent by residents, as sinking funds are depleted to catastrophic levels. For example, one development in my constituency has been unable to receive support from the waking watch relief fund simply because the residents acted proactively to try to reduce the cost of their waking watch by agreeing to fund the installation of a fire alarm system. Because they did this prior to the waking watch relief fund’s cut-off date of 17 December 2020, their application to the fund was rejected. Sadly, had they waited and incurred even more waking watch costs, their application probably would have been successful. The Minister must agree that that makes no sense at all, and this is just one case.
The Secretary of State informed Parliament in January that he would pursue statutory protection for leaseholders, and that nothing would be off the table. The Bill does not give that protection, and all I ask today is that the Government support the amendments that would protect leaseholders and go some way towards providing that statutory protection that they all deserve.
(4Â years, 6Â months ago)
Commons ChamberMy hon. Friend is completely correct. Some ÂŁ19.4 million was allocated to projects in Bognor Regis and Littlehampton through round 1 of the levelling-up fund, in addition to the ÂŁ21.1 million allocated to Crawley. I look forward to working with people in West Sussex to do more through round 2 of the levelling-up fund as well as the UK shared prosperity fund.
We need to introduce the White Paper, which will be published in the spring, first. I look forward to discussing its terms with the hon. Lady so we can ensure that the legislation subsequently introduced is fit for purpose.
(4Â years, 7Â months ago)
Commons ChamberMy hon. Friend makes an important point, but it is vital not to pit urban against rural or Dorset against London. In the debate on the police grant report, he and my hon. Friend the Member for South Dorset (Richard Drax) drew attention to particular crime challenges that Dorset faces, with major cities such as Bournemouth in the broader Dorset area, issues of county lines and rurality, and pressure on public services overall. They were absolutely right to do so. We have sought to ensure that in the settlement we provide Dorset’s police and fire and rescue service with appropriate resource, but of course we keep things constantly under review.
For the benefit of the House, I will briefly run through the details of the funding settlement. Overall, the settlement funding assessment—in essence, what used to be the revenue support grant allocation—comes to some £14,882,000,000, a truly significant amount and a significant increase. In the local government finance settlement, we are also increasing our compensation to local authorities for under-indexing the business rates multiplier. We are making sure that local authorities have the opportunity to raise the council tax precept by 2% on the social care precept and that they benefit from an improved better care fund from the new homes bonus. The rural services delivery grant, which helps to address some of the issues that my hon. Friend the Member for West Dorset (Chris Loder) so ably raised, is being held at £85 million.
Perhaps the two most substantial changes are the increase in the social care grant, to take account of the particular pressures on local authorities as a result of the challenges that adult social care services face, and the additional £822 million that has been made available in a specific services grant. That money is unringfenced, and it is in keeping with the direction of our “Levelling Up” White Paper and of the Government overall in recognising that, wherever possible, those in local government are best equipped to meet local needs. That principle of devolution and local discretion will be in our mind as we consider how to reform local government finance further in future.
The right hon. Gentleman is being generous in giving way. He will know that Salford City Council has faced budget cuts of £232 million since 2010 and has stated that the approach to funding that he outlines does not adequately reflect the demand that it faces. Does he agree that true levelling up requires funding to meet actual demand, and that it requires differentials for poverty, inequality and council tax payers’ ability to pay to be effectively factored into Government grant methodology?
The hon. Lady makes an important point. As we review future reforms to local government finance, I look forward to working with her and other colleagues to make sure that her point about deprivation, which affects a considerable number of her constituents, is reflected in our overall approach. It is important to say that the most relatively deprived areas of England—those in the upper decile of the index of multiple deprivation —will receive 14% more per dwelling in available resource through this year’s settlement than the least deprived areas. The settlement serves the cause of social justice with a redistribution towards poorer areas, but of course we keep these things under review.
(4Â years, 7Â months ago)
Commons ChamberMy right hon. Friend is absolutely right. We need to make sure that the additional funding available through the UK shared prosperity fund goes to all the communities in Wales that deserve it.
The Secretary of State bursts with enthusiasm today, yet his plans are not bursting with much new funding. Even the director of the Northern Powerhouse Partnership says that
“the government is planning to spend less on English regional development than was the case under Theresa May or David Cameron.”
It said that true levelling up would need long-term financial backing from the Chancellor. When will we see that?
(4Â years, 8Â months ago)
Commons ChamberIt is nearly five years since the tragic events at Grenfell Tower, yet thousands of my constituents in Salford and Eccles still live in fear. Some live in cold, draughty flats, having waited years for already removed cladding to be replaced, and for so many leaseholders every day, the bills for interim fire safety and increased insurance premiums rack up. They cannot move, they cannot sell, they struggle to get credit and the mental toll increasingly becomes unmanageable.
When the Secretary of State informed Parliament last week that he
“will pursue statutory protection for leaseholders and nothing will be off the table”—[Official Report, 10 January 2022; Vol. 706, c. 285.]
it was welcome news, but we have been here before, have we not? All his predecessors have conveyed warm, fluffy, non-binding statements to the House about protecting leaseholders, but we have seen very little action. The Minister must understand why my constituents have asked me why we are not legislating to protect them today in the Bill. There have been no clear assurances from him today, sadly, that the amendments that will be tabled in the other place will comprehensively include all leaseholders and indemnify them against all fire safety defect costs and ancillary costs that they may have incurred over the past few years.
The absence of that protection raises many more unanswered questions, which I hope the Minister will address. For example, what about my residents who have already received financially devastating demands for payment? Will he confirm what they should do? Should they ignore those demands in the hope that the Government legislate? How will he protect them when they face forfeiture and losing their home, or worse, bankruptcy?
Furthermore, there is ambiguity once again about the non-cladding fire safety defects in the majority of the affected buildings in my constituency, so will he confirm what specific actions he will take to ensure that residents and leaseholders are protected from the costs of non-cladding fire safety defects in buildings of all heights?
What about the sums spent so far? I am informed that many sinking funds in my constituency have already been wiped out by virtue of fire safety investigations and other interim fire safety costs. In addition, residents have already been paying directly for interim costs and increased insurance premiums. Will they be able to claim a refund, and will that be legislated for in the other place?
Finally, I must highlight the significant and unacceptable delays both in the completion of the fire safety works themselves and in processing building safety fund applications. A number of housing association blocks in my constituency have been without cladding for some years now, leaving many residents living in freezing conditions, and numerous other private residential buildings are reporting significant delays at the Department for Levelling Up, Housing and Communities in signing off funding agreements within the building safety fund.
If the Secretary of State cannot get the limited amount of money the Government have already committed out the door, how can he assure us that any wider package he announces will be more expedient in the future? What action are the Minister and the Secretary of State taking to fast-track, expand and train up new specialists in the supply chain to carry out the urgent work required at pace?
My constituents simply deserve two urgent things from the Government: first, to have their buildings made safe as part of an urgent national building safety mission; and, secondly, to be protected from the costs of a fire safety crisis they did not cause. Sadly, as drafted so far, this Bill delivers neither. I hope the Minister reflects on the amendments that will be required in the other place and delivers the safety and protection that my constituents deserve.
(5Â years, 2Â months ago)
Commons ChamberSadly, this Bill is deficient in many areas. It focuses on higher-risk buildings, currently defined as those over 18 metres, leaving the safety of residents in buildings under 18 metres unclear. Does today’s EWS1 announcement now mean that combustible cladding under 18 metres should be ignored?
The issue of funding is still not adequately addressed. As the Government well know, the building safety fund only covers unsafe cladding, yet 70% of buildings surveyed have non-cladding fire and safety defects. Providing cladding remediation funding for buildings over 18 metres, yet forcing leaseholders in buildings under 18 metres to pay, is simply unjust. As Inside Housing has previously reported, even the minority of leaseholders who could apply for loans potentially face waiting for years.
As for social landlords, the National Housing Federation has stated that, “Social housing providers will be forced to draw money from improving tenants homes in communities to fund remediation.” This is staggering.
To address these inequities, the Government plan simply to extend limitation periods to 15 years, but that will still require leaseholders and social landlords to stump up the initial cost themselves, if they do not qualify for the building safety fund. Legal processes for the recovery of such funds could take years and be very costly, if the developers and contractors even still exist.
This proposal would not help leaseholders in my constituency at Transport House, who face bills of more than ÂŁ100,000 each, as they fall shy of the 15-year period, and nor would it help the tenants and residents of Sovereign Point.
Aside from the unsafe conditions such residents are forced to live in every day, the mental strain takes its toll. In a survey by UK Cladding Action Group, 90% of leaseholders said their mental health has deteriorated and a fifth—a fifth—have had thoughts of suicide and self-harm.
Let us be clear: the only way to protect both leaseholders and tenants from the unfair costs of the crisis they did not cause is for the Government to provide upfront remediation funding, then recoup the cost from those responsible for those safety defects. As we have heard, they managed to do that in Australia, so this Government can manage to do it here.
(5Â years, 4Â months ago)
Commons ChamberSadly, the Queen’s Speech demonstrated a failure to act on acute social housing shortages, while thousands languish on housing waiting lists. It failed adequately to protect renters as the evictions ban and furlough schemes come to an end, and it failed to act urgently on fire safety and to protect leaseholders and residents from the cost of a crisis they did not cause.
On social housing, the reality is that, over the last five years, less than 10% of the amount needed has been built, but the Government had absolutely nothing to say. They should have adopted calls from organisations such as Shelter, which has suggested an investment of at least ÂŁ12.8 billion a year over 10 years, which would have delivered 90,000 social rented homes a year.
On private renters, of course the Government reaffirmed commitments to end section 21 no fault evictions, but we have been waiting for over two years for that. If the Government honour their promise, that still leaves a glaring lack of protection for all those tenants in pandemic arrears who can still legitimately be evicted. The Government should have set out a package of support for them.
Finally, on cladding and fire safety, we saw nothing: no support for the victims and no remediation deadlines, just the promise of a building safety regulator. Members across this House have repeatedly called on Government to protect leaseholders and residents from the cost of a crisis they did not cause. Absurdly, the Government told us that amendments that defined responsibility for the cost of remediating fire safety defects were too complex an issue to go in a Bill whose purpose was to deal with the responsibility for fire safety defects, and it seems they were also too complex to go in the Queen’s Speech. The Government know that the building safety fund only covers unsafe cladding, yet 70% of the buildings surveyed have non-cladding fire safety defects. They know that there is no support available at all for interim measures such as increased insurance premiums and waking watches. They know that providing cladding remediation funding for buildings over 18 metres yet forcing leaseholders in buildings under 18 metres to pay is simply unjust. The Government must honour their moral duty to these victims. They must provide up-front funding to remediate all residential buildings urgently and finally legislate to protect leaseholders and residents from the cost of the crisis they are not responsible for. It is not a complex issue; it is a moral issue, and the Government need to sort it out.
(5Â years, 4Â months ago)
Commons ChamberI support holding the Lords amendment. I think it is the right thing to do at the moment, although not because it is perfect—it is far from perfect and not without its flaws. My problem is that I do not see the Government responding to the overwhelming concern about what is happening to leaseholders, many of whom, as has been said before, were first-time buyers.
We face, today, an issue of concern both personal and public. The public concern is that the devaluation of these homes is now so dramatic that it will cause an economic shock. I remember the old negative equity problem that erupted as a result of a collapse, and I do not want to see us back there again. I accept that, as has been said, the Government have already put ÂŁ5.1 billion into the process, but it is worth at least another ÂŁ10 billion in settlement, and that is going to fall on the shoulders of leaseholders.
Let me relate what is going on in my constituency. Like everybody else, I have a set of estates, including Queen Mary’s Gate and Blackberry Court, among other blocks in my constituency. Many of them are under 18 metres and have cladding—this is the point that has been raised—that was not compliant at the time of their building. The leaseholders did not know that—they bought their homes with a sense that they were buying something that was right and reasonable—and are now not eligible for the safety fund.
What has happened because of all this? We have tried to get hold of the developer, Telford Homes, but it has not engaged for more than a year now. Telford Homes does not answer anything or engage about what it might do; it has gone to ground. That is the problem that lies at the heart of all this right now: there is no way that the leaseholders can get redress because they cannot go to those who did this wrongly at the time and the Government have not brought forward any mechanism to allow leaseholders to get after these individuals, who will sit there and wait for the leaseholders to waste their money.
The Lords amendment is not perfect, but I am trying to articulate a cry for help from my constituents and others around the country. I agree with and support the amendments tabled by my right hon. Friend the Member for North Somerset (Dr Fox). Let us find a way to make sure that those who were responsible stand up and pay the bill. They have made a lot of money in the past, legitimately, on building homes; those who did not put up the right cladding should automatically be in the frame. Meanwhile, the costs spiral and my constituents will pay them.
Today, for the first time, I shall vote to maintain and hold the Lords amendment. I say to the Government that if they do not want it, they had better get to the Lords and get us something decent that allows us to give support to our leaseholder constituents, because that would be doing the right thing.
I speak in favour of the Bishop of St Albans’ amendment. As the UK Cladding Action Group has previously reported, there have already been leaseholder suicides and, worryingly, 23% of those surveyed by the group have considered suicide or self-harm.
The Government must realise that the building safety fund only covers unsafe cladding, yet 70% of the buildings surveyed have non-cladding fire safety defects. They must understand that providing cladding remediation funding for buildings over 18 metres, yet forcing leaseholders in buildings under 18 metres to pay, is entirely unfair. They must recognise that there is no support available at all for interim measure costs, including increased insurance premiums and waking watches, which often run into figures of more than ÂŁ15,000 per week.
To add further devastation, as we have heard today, Inside Housing has reported that even the minority of leaseholders who could apply for loans face a wait of potentially years. In the meantime, many residents still live in unsafe buildings and are understood to have already received requests for up-front payment, with freeholders sometimes instructing solicitors to carry out debt recovery. This could result in a tide of bankruptcies and evictions. The situation is so bad that I understand that analysts at the Bank of England are now assessing whether Britain’s building safety scandal could cause a new financial crisis.
It is clear that the Government’s approach is untenable and it must change today. Even the National Housing Federation states that the only way to prevent leaseholders and social landlords from having to pay to remediate buildings they did not construct is for the Government to provide up-front funding to remediate all buildings. I hope all MPs today can recognise the moral duty they personally have to protect our constituents and will vote in favour of the Lords amendment.
I had very much hoped that it would not be necessary for us to continue to have this debate in relation to this Bill. The core elements of the Bill are worth while and I support them. Unfortunately, however, it creates a set of potential liabilities upon wholly innocent leaseholders, without giving them an adequate means of redress. That is simply unfair. It is unfair on my constituents and it is unfair on people who have bought properties in good faith and who have relied on professional advice and the regulatory regime that was then in force. If there are people who were at fault, either in the construction of the buildings or in the way in which surveys were carried out, they should absolutely be held to account, but the people who should not end up with a liability are the leaseholders, who have acted in good faith throughout. It is the absence of protection for them that, regrettably, causes me to have to support the Lords amendment again today.
My right hon. Friend the Member for North Somerset (Dr Fox) tabled what I thought were constructive amendments, which I was happy to sign. I hope—still; even at this late stage—that the Government will see that there is a basis for progress to be made. As things stand, as my right hon. Friend the Member for Chingford and Woodford Green (Sir Iain Duncan Smith) noted, we have to continue to press the case on the Government. I hope that, if the House rejects the amendments—I hope it will vote for the Lords amendments and deal with the matter—it will give the Government yet a further chance to resolve this matter.
At the end of the day, we are not asking that the taxpayer pick up the burden. We are asking that the leaseholders should be relieved, certainly in the short term, of the pressures that fall upon them and that they are unable to deal with. The Government are in a position to fund the cash flow that leaseholders cannot fund and which is driving them to desperate situations. It is absolutely right that they should then seek to recoup those funds from those who are responsible and who have been at fault. There is nothing in the Lords amendment or the amendments tabled by my right hon. Friend the Member for North Somerset that would prevent that from happening. I urge the Government to think again and recognise that, although the core elements of the Bill are good, collaterally, it does real injustice to innocent leaseholders, such as many in my constituency and elsewhere. For heaven’s sake, can we not find a constructive way forward to achieve the objectives of the Bill and protect innocent leaseholders? Those things should not be mutually incompatible, but at the moment we have not yet found a solution.
(5Â years, 6Â months ago)
Commons ChamberPre covid, the number of people who worked in Greater Manchester’s night-time economy alone stood at 414,000, which is 33% of Greater Manchester’s workforce, but as the rest of the country emerged from the first lockdown last year Greater Manchester was quickly propelled back into restrictions, with limited financial support. Half of businesses now do not expect to break even until the end of 2021. The insolvency risk has grown month on month in the sector and is now at its highest point since at least April 2020. UKHospitality predicts that a failure to act now to solve the rent crisis could trigger thousands of hospitality businesses to fail across the UK.
So what must the Government do? There are a few urgent steps they could take today. First, they could ensure that the millions still excluded from Government support receive financial support equivalent to the self-employment income support scheme and that this support is backdated. Secondly, they could provide Government-backed insurance and event cancellation insurance to give businesses and events full confidence to reopen and plan for the future when restrictions lift. Thirdly, they could provide an urgent and significant sector support package for hospitality, events and tourism, including a Government-backed solution to spiralling rent and commercial debt arrears, and revisit the business rates cap, which unfairly penalises large numbers of hospitality businesses, which will find themselves paying full rates just days after restrictions are fully lifted in June.
Fourthly, the Government could protect local brewers and micro-pubs by stopping the tax hike in proposed changes to the small brewers relief and review beer duty. Lastly, they could protect workers by ensuring that the furlough scheme can run for as long as it is needed; increasing statutory sick pay to a level that people can actually live on; and setting up a hospitality commission to identify a sector recovery plan as well as investigate unscrupulous and exploitative practices where they are found in the industry, such as fire and rehire and the denigration of employment terms.
All we ask for in Greater Manchester is the ability to protect jobs and income while we keep people safe and get back on our feet. So if the Government want to back their levelling-up rhetoric with real action, they will provide the economic support our workers and businesses need.
(5Â years, 7Â months ago)
Commons ChamberAt least 3 million people have been excluded from covid support schemes. One constituent of mine ran a tourism business from home. She has no rateable business premises to qualify for grant funding, she cannot afford to repay business support loans, and the minimal furlough she receives does not even cover her rent. Her situation is desperate. Another constituent works as a freelance interior designer for the hospitality sector. He has received only 20% of his usual monthly income, and he says:
“I honestly don’t know how I can carry on for much longer”.
A personal trainer saving to set up her own studio found that she was ineligible for support schemes and, because of her savings, also ineligible for universal credit.
There are hundreds of stories like these in Salford. Many people may now lose their homes, and the impact on their mental health and that of their families is profound. Indeed, recently the mental health spokesperson for ExcludedUK said that the group has had 13 suicides to date and noted widespread mental anguish. Of one case, the spokesperson said:
“I had one woman who posted on our Facebook group asking for someone to come and collect her dogs because she couldn’t afford to feed them anymore. She herself had been eating dog food because that was the only thing she had left in her house”.
The Chancellor must do the right thing. He must provide an immediate emergency grant for those affected. He must install new monthly arrangements while restrictions remain in place, in complete parity with the extension of the CJRS and SEISS schemes, and remove hard edges to eligibility criteria. Finally, he must backdate payments for a full and final settlement to deliver parity and fairness for those excluded from meaningful support. If the Chancellor refuses to heed these proposals today not only will his promise to leave no one behind be worthless, but he will be responsible for the most glaring and deliberate orchestration of social injustice we have seen during this pandemic.