Fire Safety Bill

Royston Smith Excerpts

Consideration of Lords amendments & Ping Pong & Ping Pong: House of Commons
Wednesday 24th February 2021 Commons Chamber

[Sarah Jones]

The hon. Member is absolutely right. We heard from a lady this morning that the cost of insurance for her small block had gone up from £30,000 a year to £500,000 a year. We heard from a lady who lives in a block in Kent—I know one Government Member has stood up for her in this place many times—where the residents have already spent £500,000 on a waking watch. It is quite extraordinary.

I was alarmed to see reports this afternoon that the Prime Minister’s press secretary, Allegra Stratton, has said:

“Our problem with McPartland’s amendment is that, far from speeding things up for constituents across the country who are worried about finding themselves in these properties, it would actually slow things down.”

That mirrors the intervention that the hon. Member for Strangford (Jim Shannon) has made, and it is an absolute cop-out. We are four years on, and leaseholders are struggling. We think that 11 million people are affected by this—not necessarily those living in dangerous blocks, but those living in blocks where they do not know, because they have not got the forms sorted and they are paying more insurance. That is a huge crisis.

[Royston Smith (Southampton, Itchen) (Con)]

Does the hon. Lady recall that in the Opposition day debate called by the Labour party just a few weeks ago, I asked the Minister, if our amendment is defective, why do the Government not take it, fix it, and make it work? They had the opportunity then. Does the hon. Lady think they should have done that?

[Sarah Jones]

The hon. Gentleman is absolutely right: if there were any problems with these amendments, they could have been addressed by the Government through this process. They had 12 weeks between the Bill leaving the Lords and coming here to try to effect some of these things, but have chosen not to.

The amendments tabled by the hon. Member for Stevenage (Stephen McPartland) and for Southampton, Itchen (Royston Smith) are to prevent leaseholders from being billed for fire safety repairs. Labour’s amendments went further, because the McPartland-Smith amendments—supportive and good though they are—would not cover leaseholders in blocks where flammable cladding had been added at some stage following the building of the block. Labour’s amendments would have included, for example, Grenfell Tower, which was built in the ’70s but to which the flammable cladding was added later, in 2017.

In our amendments (f), (g), (h) and (i) to Lords amendment 4, we have sought to go even further, to make sure that the cost of fire safety problems from refurbishment jobs such as the cladding of Grenfell Tower cannot be passed on to leaseholders. Our amendments (f) and (g) would ensure that leaseholders cannot be passed on the cost of remediating problems issued under the fire safety order wherever the problem was created. Labour’s amendment (i) would ensure that the Bill protects leaseholders from the day it comes into law, instead of an unknown date in the future, and Labour’s amendment (h) would have ensured that if the fire safety order is extended in the future, the Secretary of State must publish an analysis of the financial implications for leaseholders—although that amendment was not selected today, as it was out of scope. [Interruption.] You are hurrying me along, Madam Deputy Speaker, so I am turning pages so that I can speed up, which I will of course do.

To conclude, Labour’s amendments in lieu are straight- forward. They are based on issues that the Government need to address and have pledged to do so, but have not acted on. The risk of fire and looming bankruptcy will not wait while the Government dither and delay, with inaction or failed proposals that keep many lease- holders in debt. Each amendment I have spoken to today corresponds to a broken promise from the Government.

Today is another chance for the Government to finally put public safety first, and bring forward a set of legally binding commitments to deliver on the promises they made to leaseholders and implement the recommendations of the Grenfell phase 1 inquiry. Blameless victims of this crisis, who are in dangerous homes and facing financial ruin, expect nothing less. As debates over the past four years have repeatedly shown, solving this issue fairly would command cross-party support, and today should be a day to deliver justice. It is not too late for the Government to put the British public first and do the right thing.

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[Mr Deputy Speaker (Mr Nigel Evans)]

We now move to a three-minute limit. I call Royston Smith.

[Royston Smith]

I draw Members’ attention to my entry in the Register of Members’ Financial Interests. I have no axe to grind with the Government. They are my friends and colleagues. I like them and I get on with them, but I am not going to blindly follow them when I can see that the treatment of leaseholders is wrong.

First, in tabling our amendment, we have never said that we would ask for taxpayers’ money. We made that fundamentally clear right at the beginning, and it is worth repeating that. I know that many of my colleagues would have supported our amendment, but they were told that it would be an open cheque book and therefore they chose not to. Secondly, our amendment will not wreck the Bill. It will make it fair for the innocent lease- holders caught up in this crisis.

There are three parts to this, in my opinion. There is the moral issue. Who, in good conscience, could leave these people to pay huge insurance premiums, sometimes increased by over 1,000%, huge waking watch charges and crippling costs of remediation if we could do something to help? Who would do that?

Then there is the economic issue. When someone owns just 10% of their home, but they are responsible for 100% of the remediation cost, what do we think people are going to do? They will be saddled with tens of thousands of pounds-worth of debt while their home is valued at nothing. This part of the housing market is heading for collapse and thousands of leaseholders are heading for bankruptcy. The Government could and should prevent this from happening.

Finally, there is a political dimension. Successive Governments have put home ownership at the centre of Government policy. They have encouraged people to get on the property ladder. We have incentivised them through schemes such as Help to Buy and shared ownership. Imagine the howls of derision when the first Government Minister stands up and claims that we are the party of home ownership.

The recent Government announcement is very welcome, and I know that many people are grateful, but what sort of solution says, “We concede that it is not your fault, but we are only going to help half of you?” For those buildings over 18 metres, cladding will be removed for free, but not in buildings below that height. Worse than that, those people living in buildings below 18 metres will be saddled with unaffordable debt to pay for cladding remediation. Even worse, they will know that their taxes will be paying for their neighbours’ remediation.

[Kevin Hollinrake]

I absolutely understand the spirit behind my hon. Friend’s amendment. Will he answer the point that I made earlier? How would his amendment operate if the building owner walks away? Also, does he accept that his amendment would put somebody else on the hook for the costs of remediation, not just for historical defects, but for any defects in future?

[Royston Smith]

What I will do is refer my hon. Friend to two things that he has said. First, he said, “We will carry the can”, and he has now said, “Who is going to be on the hook?” It sounds to me like he is very happy for leaseholders to carry the can and be on the hook, but not to find a solution. The Government’s problem is to find the solution. Our problem is to say that leaseholders should never have to pay. That is not an unreasonable position for us to take.

In trying to help, the Government have satisfied no one and they have upset just about everyone. The leaseholders are not responsible for this. They know they are not. We know they are not. The Government know they are not and, therefore, the Government’s position is now untenable.

In conclusion, I appeal to the Government and to all my colleagues to think very carefully before they abandon thousands of their constituents, because I know this: they will not forget and they will not forgive.

[Hilary Benn (Leeds Central) (Lab) [V]]

I am speaking in support of all the amendments before us that seek to protect leaseholders from having to pay. First, on the Minister’s argument that this will delay matters, I think that leaseholders are left perplexed by the Government’s position. One day Ministers say that the cost of fixing historical defects should not fall on leaseholders—the Minister said it again today—but on another day, they say that it should. The £50 a month towards the loans that the Government propose to give to buildings below 18 metres shows that that is their policy. I do not think that Ministers can criticise others who are trying to address the problem—I support the speeches we have heard from supporters of the amendment tabled by the hon. Member for Stevenage (Stephen McPartland)—because the Government are completely unclear about what their policy is on who should bear the cost. It is clear to me that it should be the people who built the blocks.

On the argument that leaseholders who are also part-owners of the freehold may walk away from their flats, that is a very fair point, but exactly the same argument applies to loads of leaseholders who will not be able to afford to meet these costs. What this tells us is that if we are to solve this we must deal with the whole problem, not just part of it.

Secondly, to argue that this is the wrong Bill misses the urgency of the situation. Leaseholders are facing bills that they cannot afford now—waking watch bills now, insurance bills now—and they still face the prospect of being asked to pay to make safe homes that they bought in good faith. That is why we should take the first available opportunity to protect them from this great injustice.

--- Later in debate ---

We must remember why the Government introduced the Bill in the first place, and why its scope is so focused and specific in what it is designed to achieve. The focus of this legislation is, as should be clear, safety—ensuring that those responsible for fire safety and the safety of those living in their buildings know their duties and are held to those duties. Leaseholders, building owners and the taxpayer deserve a solid legislative base with clarity.

[Royston Smith]

I am listening carefully to what my hon. Friend is saying, and he has mentioned the taxpayer several times. I said in my opening remarks, as did my hon. Friend the Member for Stevenage (Stephen McPartland), that our amendment would not put any burden on the taxpayer. If my hon. Friend is worried about the taxpayer, as I am, and we are saying that the taxpayer will not be responsible, will he therefore say that we should protect all the leaseholders?

[Christian Wakeford]

I thank my hon. Friend for that intervention. Unfortunately, I think there cannot be a guarantee. A lot of the developers may no longer exist and insurance schemes may no longer be applicable. There will be gaps, and we do have to be responsible. Although his amendment is very well intentioned, and I am incredibly sympathetic towards it, there are gaps in it, and that is why, unfortunately, I will not be able to join him in the Lobby today, although I very much applaud the sentiment of it and the work he has put into it.

Leaseholders, building owners and taxpayers deserve a solid legislative base. That is what we are trying to do today by making sure that our properties and our leaseholders are safe. That is why we need to focus on those who are most likely to be affected. I do not want to see the Bill’s implementation frustrated. It has already taken far too long to get to this point, and we need to ensure that we can proceed.

As has been said many times, including by my hon. Friend the Member for Milton Keynes North (Ben Everitt) and the Minister, we have a duty: do we get this right, or do we do it quick? From my perspective, we need to get it right. Far too many people have fallen through the gaps, are struggling and are unable to afford this, so it is right that we take a fully reasoned approach, speaking to experts and to all trade bodies to ensure that we get it right. That is what I urge Ministers, the Treasury and everyone else to continue to do. I finish by thanking all Members for bringing forward some of these amendments. They do not quite deal with the Bill at hand. That is why I will not be able to support them and will be backing the Government today.