EU Exit Negotiations

Debate between Tony Lloyd and Dominic Raab

Tuesday 9th October 2018 Commons Chamber

[Dominic Raab]

I thank the shadow Brexit Secretary—for his opening remarks at least. He asked a number of questions. First, let me say that the Prime Minister would not normally update the House on an informal summit; that was not the practice under the previous Labour Governments, as he probably well knows. He asked me about the October Council. We have always been clear that we would aim for the October Council but there would be leeway that it might slip into November—we are still clear on that. The October Council next week will be an important milestone. We expect that to be a moment where we will make some progress. Of course, as I have said already in my remarks, we need the EU to match the ambition and the pragmatism that we have shown.

The shadow Secretary of State asked whether we were signing up to an indefinite customs union for Northern Ireland; no, that is categorically not correct.

[Tony Lloyd (Rochdale) (Lab)]

So what are you doing?

[Dominic Raab]

Had the hon. Gentleman been paying attention, he would have heard me set that out clearly in my statement.

The shadow Secretary of State talked about investment into this country, so I was surprised that he did not welcome Rolls-Royce’s recent decision to increase its investment in the UK or Unilever’s decision to maintain its dual UK-Dutch structure.

The shadow Secretary of State referred to my letter asking him some of the most basic questions on Labour’s policy on the substance. He has almost become the prince of process: he argues about protocol and procedure but cannot answer a single question on the substance. In reality, we got some answers at the Labour party conference. We had the shadow Secretary of State saying that Labour would whip a vote against any deal outside the customs union that the United Kingdom strikes with the 27 EU member states. Let us be clear: if all 28 Governments agree on a deal that works for the UK and for the EU, the Labour Front-Bench team, at least, would vote against it—they would try to veto it.

Worse still, the leader of the Labour party, the right hon. Member for Islington North (Jeremy Corbyn)—I am glad that he is present to answer for this—has opened the door to a second referendum. That is a thinly veiled ruse to reverse Brexit altogether. It is now clear to every voter that the Labour leadership team have trashed their promise at the general election to deliver on Brexit; they have allowed political opportunism to consume what is in the national interests; and they have demonstrated, yet again, that they are just not fit to govern.

Draft Insolvency of Registered Providers of Social Housing Regulations 2018

Debate between Tony Lloyd and Dominic Raab

Wednesday 21st March 2018 General Committees

[Dominic Raab]

We have had a good debate with some interesting technical interventions, and I am grateful to hear from hon. Members with a great deal longer experience of the sector than I have. The hon. Member for Rochdale made some kind remarks at the beginning and I appreciate his support of the regulations. He asked three specific questions, which I will endeavour to answer as best I can.

First, the hon. Gentleman asked how objective 1 and objective 2, as I described in the regulations, interact. Objective 1 is to rescue the business and service the creditors. Objective 2 is to look after housing, including social tenants. It is right that in one sense, the overriding objective 1 takes precedence over objective 2, because it is an insolvency proceeding. As a result, the housing administrator cannot do anything that results in a worse distribution to the creditors.

In all cases to date, the creditors have recognised that it was of the best value to them to save the properties in the sector. Having a social housing regulator and a specific regime for insolvency proceedings in the sector ensures that objective 2 shapes and influences the way in which objective 1 is delivered, which will provide materially greater protection for social tenants. If I understood correctly, that was key to what the hon. Gentleman was getting at.

The hon. Gentleman asked about lenders’ responsibility and due diligence, which is an important point. It is crucial that lenders take the initiative and ensure that their due diligence is in place, not only in relation to commercial transactions but in the social housing sector.

There has been a swathe of new regulation since the financial crash. I do not think it is a zero-sum game—I know the hon. Gentleman was not suggesting it was—and we need to do both. The protections in relation to due diligence and the regulation of lenders are in place, and lenders support the extension of the 2016 Act through the regulations. We can do both of those things, and that will create an increased tier of protection for tenants.

The hon. Gentleman asked about the lessons learned from Cosmopolitan, and the previous report commissioned by my Department. The Cosmopolitan Housing Group was a large private registered provider of social housing. It owned or was managing more than 13,000 homes in the north-west. It had serious financial difficulties, as described by the hon. Gentleman, in part as a result of its involvement in non-social housing activity. None the less, the regulator at the time, the Homes and Communities Agency, carried out intensive regulatory engagement with Cosmopolitan to resolve the situation. That engagement concluded with Cosmopolitan being taken over by Sanctuary Housing, which was a large and more financially robust provider. The specific situation was dealt with, and afterwards, in terms of the lessons learned—the crux of what the hon. Gentleman was getting at—the Homes and Communities Agency carried out an independent review of its handling of the Cosmopolitan case. As best as possible in the aftermath of such a financial challenge, lessons have been learned. I certainly agree with the hon. Gentleman that prevention is better than cure, and that is what the regulations will help achieve.

[Tony Lloyd]

Can we be clear, though? In the end, it is the regulator who acts as the public eyes and ears with respect to the housing associations, to make sure that their behaviour is consistent with common sense and prudence. Are we certain that the regulator has the capacity to do that? That is not a malicious question. These are new duties on the regulator, but the general duty to cover the extraordinary range of different types of housing associations is a real one. It is important that we know that the regulator has both the competence and the capacity. I am confident in the competence, but I do not know about the capacity.

[Dominic Raab]

That is a perfectly legitimate question. Of course, the regulations are partly about making sure that the regulator has the capacity and the legal powers to deal with the whole sector. I hope that was addressed in my opening remarks.

The hon. Member for Poplar and Limehouse spoke about the history of housing associations in his constituency with great knowledge and insight. He also spoke about the pressures on rent. I accept that, particularly in London and urban areas. In the past year, we have seen 217,000 new homes delivered, which is the highest number in all but one of the past 30 years. That is important not just if someone wants to own their own home, but because supply is a key factor in bringing down the affordability of rent. There is other proposed legislation coming down the pipeline on the quality of rented accommodation as well.

The hon. Gentleman asked whether this is a protective measure. It is. It cannot be entirely dislocated from what is happening in the social sector and the evolution of that sector, so I suppose it is a response to both the regulatory gap and the evolving nature of the sector, making sure that as it grows and the structure of the sector changes, and we see the dividends in terms of supply and the economies of scale that build up, we also make sure that we have a careful safety net in place. Hopefully that is the right balance and the prudent course to take.

In conclusion, I say again that we imagine that the occasions when this legislation would be necessary, if ever, will be very rare. The introduction of the regime reflects the nature and the scale of the sector, which has changed and will continue to change. It is not a commentary on the state of the sector as it currently stands. Housing associations continue to be key partners in fixing the broken housing market that this Government are absolutely dedicated to addressing. It is right that we ensure the regulator has the tools and the capacity to do the job to maintain lender confidence and to protect tenants as far as possible should a potential insolvency occur.

Question put and agreed to.

Resolved,

That the Committee has considered the draft Insolvency of Registered Providers of Social Housing Regulations 2018.

Oral Answers to Questions

Debate between Tony Lloyd and Dominic Raab

Monday 12th March 2018 Commons Chamber

[Dominic Raab]

It is good news that Help to Buy has helped more homes to get built. It has contributed to about 14% of new build since 2015. I personally share some of the hon. Gentleman’s concerns about executive pay, but I gently remind him that it was this Government who introduced the corporate governance reforms in August, including to make sure that there is greater transparency and greater shareholder grip over directors’ pay.

[Tony Lloyd (Rochdale) (Lab)]

The Minister will know that some 10% of those on the Help to Buy scheme earn over £80,000 a year. Even in London, they are people who can afford to buy without this taxpayer subsidy. In the light of the Secretary of State’s earlier comments about responsibility to the taxpayer, will he contrast the poorest homeowners who will lose help with mortgage interest with these heavily subsidised, well-off people up and down the country?

[Dominic Raab]

I think that some factual clarification would help the hon. Gentleman, because four out of five of those benefiting from Help to Buy have been first-time buyers, and three out of five households benefiting from Help to Buy had combined incomes of £50,000 or less. We are on their side; it is a shame that Labour is not.